101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB4415

 

Introduced 2/3/2020, by Rep. Anthony DeLuca

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 805/6  from Ch. 85, par. 2206
30 ILCS 805/8  from Ch. 85, par. 2208
30 ILCS 805/9.2 new

    Amends the State Mandates Act. Provides that any State mandate regarding any subject matter implemented on or after the effective date of this amendatory Act that necessitates additional expenditures from local government revenues shall be void and unenforceable unless the General Assembly makes necessary appropriations to implement that mandate. Provides that the failure of the General Assembly to make necessary appropriations shall relieve the local government of the obligation to implement any State mandate. Makes conforming. Effective immediately.


LRB101 16537 RJF 65921 b

 

 

A BILL FOR

 

HB4415LRB101 16537 RJF 65921 b

1    AN ACT concerning finance.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The State Mandates Act is amended by changing
5Sections 6 and 8 and by adding Section 9.2 as follows:
 
6    (30 ILCS 805/6)  (from Ch. 85, par. 2206)
7    Sec. 6. State Reimbursement to Local Government For
8Increased Costs Arising From Certain Mandates. (a) Any
9increased costs accruing to local governments as a direct
10result of mandates dealing with the organization and structure
11of local government or due process mandates, as defined in
12subsections (c) and (d), respectively, of Section 3 above, are
13not reimbursable by the State.
14    (b) At least 50%, but not more than 100% of the increase in
15costs of a local government directly attributable to a service
16mandate as defined in subsection (f) of Section 3 enacted by
17the General Assembly or established administratively after the
18effective date of this Act shall be reimbursed by the State
19unless there is in existence at the time of such enactment a
20program of State aid for the service affected by the mandate
21whereunder the non-local share for any participating local
22government is 50% or greater and where the increased costs
23arising under the mandate constitute allowable expenditures

 

 

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1under the aid program. Where all or part of the increased costs
2are met through federal or other external aid, only the net
3increase to the local government shall be included in the base
4against which the amount of State reimbursement is to be
5computed.
6    (c) 100% of the loss in revenue of a local government
7directly attributable to a mandated classification or
8exemption of property for purposes of ad valorem real property
9taxation enacted after the effective date of this Act shall be
10reimbursed by the State. The loss of revenue does not include
11potential revenue from property of a type which was not being
12assessed and taxed on January 1, 1980.
13    (d) Except for a State mandate that affects personnel
14qualifications for local employees, the salaries and wages of
15which are financed under a State program, and except as
16provided in subsection (e) below, any personnel mandate as
17defined in subsection (h) of Section 3 above enacted by the
18General Assembly or established administratively after the
19effective date of this Act shall be reimbursed by the State to
20the extent of increased costs incurred by local governments
21directly attributable to such mandate.
22    (e) All of the increased costs of a local government
23directly attributable to a mandated increase in public employee
24retirement benefits which is enacted after the effective date
25of this Act and which has the effect of elevating retirement
26benefits of local government employees shall be reimbursed by

 

 

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1the State; except that any increased costs of a local
2government attributable to Public Act 83-152, 83-374, 83-375,
383-528, 83-558, 83-661, 83-664, 83-737, 83-772, 83-773,
483-780, 83-792, 83-793, 83-802, 83-810, 83-812, 83-823, 83-827
5or 83-869 are not reimbursable by the State.
6    (f) After the effective date of this Act, any bill filed
7and any amended bill that creates or enlarges a State mandate
8of the type specified in subsections (f), (g) and (h) of
9Section 3, shall have provided and identified for it an
10appropriation of an amount necessary to provide the
11reimbursement specified above unless a statement, stating the
12specific reasons for such exclusion is set out in the bill or
13amendment as provided in subsection (a) of Section 8.
14    (g) If a local government or combination of local
15governments has been providing a service at its option which is
16subsequently mandated by the State, the State shall pay them
17for the subsequent costs of such program and the local
18government or governments shall proportionately reduce its or
19their property tax extensions by the amount that the State
20payment replaces property tax revenues which were being
21expended on such service. However, for purposes of calculating
22a school district's State aid, no district's operating tax rate
23shall be decreased as a result of reimbursement under this Act.
24    (h) Any increased costs accruing to a local government as a
25direct result of the requirements of the Steel Products
26Procurement Act are not reimbursable by the State.

 

 

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1    (i) The provisions of subsections (a) through (h) shall
2apply to State mandates implemented prior to the effective date
3of this amendatory Act of the 101st General Assembly. Beginning
4on and after the effective date of this amendatory Act of the
5101st General Assembly, any State mandate regarding any subject
6matter that necessitates additional expenditures from local
7government revenues shall be appropriated for and reimbursed as
8provided under Section 9.2.
9(Source: P.A. 83-1362.)
 
10    (30 ILCS 805/8)  (from Ch. 85, par. 2208)
11    Sec. 8. Exclusions, reimbursement application, review,
12appeals, and adjudication.
13    (a) Exclusions: Any of the following circumstances
14inherent to, or associated with, a mandate shall exclude the
15State from reimbursement liability under this Act. If the
16mandate (1) accommodates a request from local governments or
17organizations thereof; (2) imposes additional duties of a
18nature which can be carried out by existing staff and
19procedures at no appreciable net cost increase; (3) creates
20additional costs but also provides offsetting savings
21resulting in no aggregate increase in net costs; (4) imposes a
22cost that is wholly or largely recovered from Federal, State or
23other external financial aid; (5) imposes additional annual net
24costs of less than $1,000 for each of the several local
25governments affected or less than $50,000, in the aggregate,

 

 

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1for all local governments affected.
2    The failure of the General Assembly to make necessary
3appropriations shall relieve the local government of the
4obligation to implement any service mandates, tax exemption
5mandates, and personnel mandates, as specified in Section 6,
6subsections (b), (c), (d) and (e), unless the exclusion
7provided for in this Section are explicitly stated in the Act
8establishing the mandate. In the event that funding is not
9provided for a State-mandated program by the General Assembly,
10the local government may implement or continue the program upon
11approval of its governing body. If the local government
12approves the program and funding is subsequently provided, the
13State shall reimburse the local governments only for costs
14incurred subsequent to the funding.
15    (a-5) The provisions of subsection (a) excluding the State
16from reimbursement liability under this Act shall not apply to
17any State mandate implemented on or after the effective date of
18this amendatory Act of the 101st General Assembly, and all
19subsequent State mandates shall be appropriated for as provided
20under Section 9.2.
21    (b) Reimbursement Estimation and Appropriation Procedure.
22        (1) When a bill is introduced in the General Assembly,
23    the Legislative Reference Bureau, hereafter referred to as
24    the Bureau, shall determine whether such bill may require
25    reimbursement to local governments pursuant to this Act.
26    The Bureau shall make such determination known in the

 

 

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1    Legislative Synopsis and Digest.
2        In making the determination required by this
3    subsection (b) the Bureau shall disregard any provision in
4    a bill which would make inoperative the reimbursement
5    requirements of Section 6 above, including an express
6    exclusion of the applicability of this Act, and shall make
7    the determination irrespective of any such provision.
8        (2) Any bill or amended bill which creates or expands a
9    State mandate shall be subject to the provisions of "An Act
10    requiring fiscal notes in relation to certain bills",
11    approved June 4, 1965, as amended. The fiscal notes for
12    such bills or amended bills shall include estimates of the
13    costs to local government and the costs of any
14    reimbursement required under this Act. In the case of bills
15    having a potential fiscal impact on units of local
16    government, the fiscal note shall be prepared by the
17    Department. In the case of bills having a potential fiscal
18    impact on school districts, the fiscal note shall be
19    prepared by the State Superintendent of Education. In the
20    case of bills having a potential fiscal impact on community
21    college districts, the fiscal note shall be prepared by the
22    Illinois Community College Board. Such fiscal note shall
23    accompany the bill that requires State reimbursement and
24    shall be prepared prior to any final action on such a bill
25    by the assigned committee. However, if a fiscal note is not
26    filed by the appropriate agency within 30 days of

 

 

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1    introduction of a bill, the bill can be heard in committee
2    and advanced to the order of second reading. The bill shall
3    then remain on second reading until a fiscal note is filed.
4    A bill discharged from committee shall also remain on
5    second reading until a fiscal note is provided by the
6    appropriate agency.
7        (3) The estimate required by paragraph (2) above, shall
8    include the amount estimated to be required during the
9    first fiscal year of a bill's operation in order to
10    reimburse local governments pursuant to Section 6, for
11    costs mandated by such bill. In the event that the
12    effective date of such a bill is not the first day of the
13    fiscal year the estimate shall also include the amount
14    estimated to be required for reimbursement for the next
15    following full fiscal year.
16        (4) For the initial fiscal year, reimbursement funds
17    shall be provided as follows: (i) any statute mandating
18    such costs shall have a companion appropriation bill, and
19    (ii) any executive order mandating such costs shall be
20    accompanied by a bill to appropriate the funds therefor,
21    or, alternatively an appropriation for such funds shall be
22    included in the executive budget for the next following
23    fiscal year.
24        In subsequent fiscal years appropriations for such
25    costs shall be included in the Governor's budget or
26    supplemental appropriation bills.

 

 

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

 

 

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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) Local governments may appeal determinations made
22    by State agencies acting pursuant to subsection (c) above.
23    The appeal must be submitted to the State Mandates Board of
24    Review created by Section 9.1 of this Act within 60 days
25    following the date of receipt of the determination being
26    appealed. The appeal must include evidence as to the extent

 

 

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1    to which the mandate has been carried out in an effective
2    manner and executed without recourse to standards of
3    staffing or expenditure higher than specified in the
4    mandatory statute, if such standards are specified in the
5    statute. The State Mandates Board of Review, after
6    reviewing the evidence submitted to it, may increase or
7    reduce the amount of a reimbursement claim. The decision of
8    the State Mandates Board of Review shall be final subject
9    to judicial review. However, if sufficient funds have not
10    been appropriated, the Department shall notify the General
11    Assembly of such cost, and appropriations for such costs
12    shall be included in a supplemental appropriation bill.
13        (2) A local government may also appeal directly to the
14    State Mandates Board of Review in those situations in which
15    the Department of Commerce and Economic Opportunity does
16    not act upon the local government's application for
17    reimbursement or request for mandate determination
18    submitted under this Act. The appeal must include evidence
19    that the application for reimbursement or request for
20    mandate determination was properly filed and should have
21    been reviewed by the Department.
22        An appeal may be made to the Board if the Department
23    does not respond to a local government's application for
24    reimbursement or request for mandate determination within
25    120 days after filing the application or request. In no
26    case, however, may an appeal be brought more than one year

 

 

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1    after the application or request is filed with the
2    Department.
3(Source: P.A. 94-793, eff. 5-19-06.)
 
4    (30 ILCS 805/9.2 new)
5    Sec. 9.2. Unfunded State mandates prohibited.
6Notwithstanding any provision of law to the contrary, any State
7mandate regarding any subject matter implemented on or after
8the effective date of this amendatory Act of the 101st General
9Assembly that necessitates additional expenditures from local
10government revenues shall be void and unenforceable unless the
11General Assembly makes necessary appropriations to implement
12that mandate. The failure of the General Assembly to make
13necessary appropriations shall relieve the local government of
14the obligation to implement any State mandate.
 
15    Section 99. Effective date. This Act takes effect upon
16becoming law.