SB3407 98TH GENERAL ASSEMBLY

LRB098 17993 OMW 53118 b

98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
SB3407

Introduced 2/14/2014, by Sen. Michael Connelly

SYNOPSIS AS INTRODUCED:

30 ILCS 805/4.5 new
30 ILCS 805/7	from Ch. 85, par. 2207
30 ILCS 805/8	from Ch. 85, par. 2208

Amends the State Mandates Act. Requires the State Board of Education to collect and maintain information concerning State mandates for schools, determine the statewide implementation of State mandates for schools, review school district applications for reimbursement submitted under the Act where the General Assembly has appropriated funds to reimburse school districts for costs associated with the implementation of a State mandate, and annually report to the Governor and the General Assembly regarding the administration of the Act and changes proposed to the Act that concern schools. Requires the Legislative Research Unit to conduct public hearings as needed to review the information collected and the recommendations made by the Board. Provides that within 2 years following the effective date of the amendatory Act, the Board shall collect and tabulate relevant information as to the nature and scope of each existing State mandate for schools. Further provides that failure of the General Assembly to appropriate adequate funds for reimbursement to schools as required by this Act shall not relieve the Board from these obligations. Requires that fiscal notes on bills creating State mandates shall include actual implementation cost data and analysis generated by school districts. Makes changes concerning appeals under the Act.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning finance.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The State Mandates Act is amended by changing Sections 7 and 8 and by adding Section 4.5 as follows:

(30 ILCS 805/4.5 new)

Sec. 4.5. Collection and maintenance of information concerning State mandates for schools.

(a) The State Board of Education shall be responsible for the following:

(1) Collecting and maintaining information on State mandates for schools, including information required for effective implementation of the provisions of this Act.

(2) Reviewing school district applications for reimbursement submitted under this Act where the General Assembly has appropriated funds to reimburse school districts for costs associated with the implementation of a State mandate. Where there is no appropriation for reimbursement, upon a request for determination of a State mandate by a school district or more than one school district filing a single request, other than a community college district, the Board shall, in conjunction with an association established under Article 23 of the School Code, determine whether a Public Act constitutes a State mandate and, if so, the statewide cost of implementation.

(3) Hearing complaints or suggestions from school districts and other affected organizations as to existing or proposed State mandates for schools.

(4) Annually reporting to the Governor and the General Assembly about the administration of provisions of this Act and changes proposed to this Act that concern schools.

The Legislative Research Unit shall conduct public hearings as needed to review the information collected and the recommendations made by the Board under this subsection (a). The Board shall cooperate fully with the Legislative Research Unit, providing any information, supporting documentation, and other assistance required by the Legislative Research Unit to conduct the hearing.

(b) Within 2 years following the effective date of this amendatory Act of the 98th General Assembly, the Board shall collect and tabulate relevant information as to the nature and scope of each existing State mandate for schools, including, but not limited to: (i) the identity of the type of school district and local government agency or official to whom the State mandate is directed, (ii) whether an identifiable local direct cost is necessitated by the State mandate and the estimated annual amount, (iii) the extent of State financial participation, if any, in meeting identifiable costs, (iv) the State agency, if any, charged with supervising the implementation of the mandate, and (v) a brief description of the State mandate and a citation to its origin in statute or rule.

(c) The resulting information from subsection (b) of this Section shall be published in a catalog that shall be made available to members of the General Assembly, State and local officials, and interested citizens. As new State mandates are enacted, they shall be added to the catalog, and on January 31 of every year, the Department shall list each new State mandate that was enacted during the preceding session of the General Assembly, as well as the estimated additional identifiable direct costs, if any, imposed upon school districts. A revised version of the catalog shall be published every 2 years, beginning with the publication date of the first catalog.

(d) Failure of the General Assembly to appropriate adequate funds for reimbursement to schools as required by this Act shall not relieve the Board from its obligations under this Section.

(30 ILCS 805/7) (from Ch. 85, par. 2207)

Sec. 7. Review of Existing Mandates.

(a) Concurrently with, or within 3 months subsequent to the publication of a catalog of State mandates as prescribed in subsection (b) of Sections Section 4 and 4.5 the Department shall submit to the Governor and the General Assembly a review and report on mandates enacted prior to the effective date of this Act and remaining in effect at the time of submittal of the report. The State Board of Education shall submit a review of existing State mandates for schools concurrently with the publication required under subsection (c) of Section 4.5 of this Act.

(b) The report shall include for each mandate the following: (1) The factual information specified in subsection (b) of Section 4 for the catalog; (2) extent to which the enactment of the mandate was requested, supported, encouraged or opposed by local governments or their respective organization; (3) whether the mandate continues to meet a Statewide policy objective or has achieved the initial policy intent in whole or in part; (4) amendments if any are required to make the mandate more effective; (5) whether the mandate should be retained or rescinded; (6) whether State financial participation in helping meet the identifiable increased local costs arising from the mandate should be initiated, and if so, recommended ratios and phasing-in schedules; and (7) any other information or recommendations which the Department considers pertinent.

(c) The appropriate committee of each house of the General Assembly shall review the report and shall initiate such legislation or other action as it deems necessary.

The requirement for reporting to the General Assembly shall be satisfied by filing copies of the report with the Speaker, the Minority Leader and the Clerk of the House of Representatives and the President, the Minority Leader, the Secretary of the Senate, the members of the committees required to review the report under subsection (c) and the Legislative Research Unit, as required by Section 3.1 of "An Act to revise the law in relation to the General Assembly", approved February 25, 1874, as amended, and filing such additional copies with the State Government Report Distribution Center for the General Assembly as is required under paragraph (t) of Section 7 of the State Library Act.

(Source: P.A. 84-1438.)

(30 ILCS 805/8) (from Ch. 85, par. 2208)

Sec. 8. Exclusions, reimbursement application, review, appeals, and adjudication.

(a) Exclusions: Any of the following circumstances inherent to, or associated with, a mandate shall exclude the State from reimbursement liability under this Act. If the mandate (1) accommodates a request from local governments or organizations thereof; (2) imposes additional duties of a nature which can be carried out by existing staff and procedures at no appreciable net cost increase; (3) creates additional costs but also provides offsetting savings resulting in no aggregate increase in net costs; (4) imposes a cost that is wholly or largely recovered from Federal, State or other external financial aid; (5) imposes additional annual net costs of less than $1,000 for each of the several local governments affected or less than $50,000, in the aggregate, for all local governments affected.

The failure of the General Assembly to make necessary appropriations shall relieve the local government of the obligation to implement any service mandates, tax exemption mandates, and personnel mandates, as specified in Section 6, subsections (b), (c), (d) and (e), unless the exclusion provided for in this Section are explicitly stated in the Act establishing the mandate. In the event that funding is not provided for a State-mandated program by the General Assembly, the local government may implement or continue the program upon approval of its governing body. If the local government approves the program and funding is subsequently provided, the State shall reimburse the local governments only for costs incurred subsequent to the funding.

(b) Reimbursement Estimation and Appropriation Procedure.

(1) When a bill is introduced in the General Assembly, the Legislative Reference Bureau, hereafter referred to as the Bureau, shall determine whether such bill may require reimbursement to local governments pursuant to this Act. The Bureau shall make such determination known in the Legislative Synopsis and Digest.

In making the determination required by this subsection (b) the Bureau shall disregard any provision in a bill which would make inoperative the reimbursement requirements of Section 6 above, including an express exclusion of the applicability of this Act, and shall make the determination irrespective of any such provision.

(2) Any bill or amended bill which creates or expands a State mandate shall be subject to the provisions of "An Act requiring fiscal notes in relation to certain bills", approved June 4, 1965, as amended. The fiscal notes for such bills or amended bills shall include estimates of the costs to local government and the costs of any reimbursement required under this Act. In the case of bills having a potential fiscal impact on units of local government, the fiscal note shall be prepared by the Department and include actual implementation cost data and analysis generated by school districts. In the case of bills having a potential fiscal impact on school districts, the fiscal note shall be prepared by the State Superintendent of Education. In the case of bills having a potential fiscal impact on community college districts, the fiscal note shall be prepared by the Illinois Community College Board. Such fiscal note shall accompany the bill that requires State reimbursement and shall be prepared prior to any final action on such a bill by the assigned committee. However, if a fiscal note is not filed by the appropriate agency within 30 days of introduction of a bill, the bill can be heard in committee and advanced to the order of second reading. The bill shall then remain on second reading until a fiscal note is filed. A bill discharged from committee shall also remain on second reading until a fiscal note is provided by the appropriate agency.

(3) The estimate required by paragraph (2) above, shall include the amount estimated to be required during the first fiscal year of a bill's operation in order to reimburse local governments pursuant to Section 6, for costs mandated by such bill. In the event that the effective date of such a bill is not the first day of the fiscal year the estimate shall also include the amount estimated to be required for reimbursement for the next following full fiscal year.

(4) For the initial fiscal year, reimbursement funds shall be provided as follows: (i) any statute mandating such costs shall have a companion appropriation bill, and (ii) any executive order mandating such costs shall be accompanied by a bill to appropriate the funds therefor, or, alternatively an appropriation for such funds shall be included in the executive budget for the next following fiscal year.

In subsequent fiscal years appropriations for such costs shall be included in the Governor's budget or supplemental appropriation bills.

(c) Reimbursement Application and Disbursement Procedure.

(1) For the initial fiscal year during which reimbursement is authorized, each local government, or more than one local government wishing to join in filing a single claim, believing itself to be entitled to reimbursement under this Act shall submit to the Department, State Superintendent of Education or Illinois Community College Board within 60 days of the effective date of the mandate a claim for reimbursement accompanied by its estimate of the increased costs required by the mandate for the balance of the fiscal year. The Department, State Superintendent of Education or Illinois Community College Board shall review such claim and estimate, shall apportion the claim into 3 equal installments and shall direct the Comptroller to pay the installments at equal intervals throughout the remainder of the fiscal year from the funds appropriated for such purposes, provided that the Department, State Superintendent of Education or Illinois Community College Board may (i) audit the records of any local government to verify the actual amount of the mandated cost, and (ii) reduce any claim determined to be excessive or unreasonable.

(2) For the subsequent fiscal years, local governments shall submit claims as specified above on or before October 1 of each year. The Department, State Superintendent of Education or Illinois Community College Board shall apportion the claims into 3 equal installments and shall direct the Comptroller to pay the first installment upon approval of the claims, with subsequent installments to follow on January 1 and March 1, such claims to be paid from funds appropriated therefor, provided that the Department, State Superintendent of Education or Illinois Community College Board (i) may audit the records of any local governments to verify the actual amount of the mandated cost, (ii) may reduce any claim, determined to be excessive or unreasonable, and (iii) shall adjust the payment to correct for any underpayments or overpayments which occurred in the previous fiscal year.

(3) Any funds received by a local government pursuant to this Act may be used for any public purpose.

If the funds appropriated for reimbursement of the costs of local government resulting from the creation or expansion of a State mandate are less than the total of the approved claims, the amount appropriated shall be prorated among the local governments having approved claims.

(d) Appeals and Adjudication.

(1) Local governments may appeal determinations made by State agencies acting pursuant to subsection (c) above. The appeal must be submitted to the State Mandates Board of Review created by Section 9.1 of this Act within 60 days following the date of receipt of the determination being appealed. The appeal must include evidence as to the extent to which the mandate has been carried out in an effective manner and executed without recourse to standards of staffing or expenditure higher than specified in the mandatory statute, if such standards are specified in the statute. The State Mandates Board of Review, after reviewing the evidence submitted to it, may increase or reduce the amount of a reimbursement claim. The decision of the State Mandates Board of Review shall be final subject to judicial review. However, if sufficient funds have not been appropriated, the Department shall notify the General Assembly of such cost, and appropriations for such costs shall be included in a supplemental appropriation bill.

(2) A local government may also appeal directly to the State Mandates Board of Review in those situations in which the Department of Commerce and Economic Opportunity or State Board of Education does not act upon the local government's application for reimbursement or request for mandate determination submitted under this Act. The appeal must include evidence that the application for reimbursement or request for mandate determination was properly filed and should have been reviewed by the Department or State Board of Education.

An appeal may be made to the Board if the Department does not respond to a local government's application for reimbursement or request for mandate determination within 120 days after filing the application or request. In no case, however, may an appeal be brought more than one year after the application or request is filed with the Department.

(Source: P.A. 94-793, eff. 5-19-06.)