101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB4168

 

Introduced 1/22/2020, by Rep. William Davis

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Amends the State Revenue Sharing Act and the Illinois Income Tax Act. Provides that a monthly transfer shall be made to the Local Government Distributive Fund an amount certified by the Department of Revenue equal to: (1) the amount that would have been distributed under the State Revenue Sharing Act to all financially distressed cities if a sum calculated using 10% of the net revenue realized from the tax imposed by the Illinois Income Tax Act upon individuals, trusts, estates, and corporations during the preceding month had been transferred to the Local Government Distributive Fund; and (2) subtracting the amount distributed to all financially distressed cities from the Local Government Distributive Fund under the State Revenue Sharing Act. Provides for continuing appropriation if insufficient appropriations are made. Amends the Financially Distressed City Law of the Illinois Municipal Code. Makes the law applicable to both home rule and non-home rule municipalities. Provides that a State agency or unit of local government may also render technical assistance to a municipality's Financial Advisory Authority as the Authority may request. Provides that the State shall not reduce revenues or impose additional costs affecting a financially distressed city affecting the municipality unless it is consistent with the Financial Plan and Budget in effect. Provides that State mandates enacted while a municipality is designated as a financially distressed city that would cause the municipality to incur costs are not valid or enforceable during the period when the municipality is under the financially distressed city designation. Effective January 1, 2021.


LRB101 15644 AWJ 65284 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB4168LRB101 15644 AWJ 65284 b

1    AN ACT concerning local government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The State Revenue Sharing Act is amended by
5changing Section 2 as follows:
 
6    (30 ILCS 115/2)  (from Ch. 85, par. 612)
7    Sec. 2. Allocation and Disbursement.
8    (a) As soon as may be after the first day of each month,
9the Department of Revenue shall allocate among the several
10municipalities and counties of this State the amount available
11in the Local Government Distributive Fund and in the Income Tax
12Surcharge Local Government Distributive Fund, determined as
13provided in Sections 1 and 1a above. Except as provided in
14Sections 13 and 13.1 of this Act, the Department shall then
15certify such allocations to the State Comptroller, who shall
16pay over to the several municipalities and counties the
17respective amounts allocated to them. The amount of such Funds
18allocable to each such municipality and county shall be in
19proportion to the number of individual residents of such
20municipality or county to the total population of the State,
21determined in each case on the basis of the latest census of
22the State, municipality or county conducted by the Federal
23government and certified by the Secretary of State and for

 

 

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1annexations to municipalities, the latest Federal, State or
2municipal census of the annexed area which has been certified
3by the Department of Revenue. Allocations to the City of
4Chicago under this Section are subject to Section 6 of the
5Hotel Operators' Occupation Tax Act. For the purpose of this
6Section, the number of individual residents of a county shall
7be reduced by the number of individuals residing therein in
8municipalities, but the number of individual residents of the
9State, county and municipality shall reflect the latest census
10of any of them. The amounts transferred into the Local
11Government Distributive Fund pursuant to Section 9 of the Use
12Tax Act, Section 9 of the Service Use Tax Act, Section 9 of the
13Service Occupation Tax Act, and Section 3 of the Retailers'
14Occupation Tax Act, each as now or hereafter amended, pursuant
15to the amendments of such Sections by Public Act 85-1135, shall
16be distributed as provided in said Sections.
17    (a-5) The Department of Revenue shall allocate, as soon as
18may be practicable after the first day of each month, among
19each financially distressed city, as that term is defined in
20Section 8-12-3 of the Illinois Municipal Code, funds
21transferred to the Local Government Distributive Fund under
22subsection (b-5) of Section 901 of the Illinois Income Tax Act.
23The Department shall then certify such allocations to the State
24Comptroller who shall pay over to each financially distressed
25city the respective amounts allocated to it. The amount of
26funds allocable to each financially distressed city shall be in

 

 

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1proportion to the number of individual residents of the
2financially distressed city to the total population of all
3financially distressed cities combined, determined in each
4case on the basis of the latest census of the State,
5municipality, or county conducted by the Federal government and
6certified by the Secretary of State and for annexations to
7municipalities, the latest Federal, State, or municipal census
8of the annexed area which has been certified to the Department
9of Revenue. However, nothing in this subsection shall reduce an
10amount certified to the Comptroller under subsection (c) of
11Section 3-125 or subsection (b-5) of Section 4-118 of the
12Illinois Pension Code for failure to transmit contributions
13required by the financially distressed city to the Article 3 or
14Article 4 pension fund in its jurisdiction. The Comptroller
15shall continue to deduct and remit the certified amount to the
16Article 3 or Article 4 pension fund consistent with the
17requirements of subsection (c) of Section 3-125 or subsection
18(b-5) of Section 4-118 of the Illinois Pension Code. The
19Comptroller shall continue to deduct and remit all funds
20necessary to enforce the terms of existing settlement
21agreements between a municipality designated a financially
22distressed city and an Article 3 or Article 4 Pension Fund.
23    If for any reason the aggregate appropriations made
24available are insufficient to meet the amount certified under
25this subsection:
26        (1) The Governor shall submit to the General Assembly a

 

 

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1    proposed budget for the amount certified under this
2    subsection from the Local Government Distributive Fund to
3    each financially distressed city for each fiscal year so
4    that the total Local Government Distributive Fund proposed
5    budget is no less than the amount certified and allocated
6    under this subsection. In addition, the Governor shall
7    specify the total amount of funds to be transferred from
8    the Local Government Distributive Fund to each financially
9    distressed city during the budget year, which shall be no
10    less than the amount certified and allocated under this
11    subsection. The Governor may submit a proposed budget in
12    which the total appropriated and transferred amounts are
13    less than the amount certified and allocated under this
14    subsection if the Governor declares in writing to the
15    General Assembly the reason for the lesser amounts.
16        (2) The General Assembly shall appropriate the amount
17    certified under this subsection from the Local Government
18    Distributive Fund to each financially distressed city for
19    each fiscal year so that the total Local Government
20    Distributive Fund appropriation is no less than the amount
21    certified under this subsection. In addition, the General
22    Assembly shall legislatively transfer from the Local
23    Government Distributive Fund to each financially
24    distressed city for the fiscal year a total amount that is
25    no less than the amount certified and allocated under this
26    subsection. The General Assembly may appropriate or

 

 

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1    transfer lesser amounts if it declares by Joint Resolution
2    the reason for the lesser amounts.
3    (b) It is the intent of the General Assembly that
4allocations made under this Section shall be made in a fair and
5equitable manner. Accordingly, the clerk of any municipality to
6which territory has been annexed, or from which territory has
7been disconnected, shall notify the Department of Revenue in
8writing of that annexation or disconnection and shall (1) state
9the number of residents within the territory that was annexed
10or disconnected, based on the last census conducted by the
11federal, State, or municipal government and certified by the
12Illinois Secretary of State, and (2) furnish therewith a
13certified copy of the plat of annexation or, in the case of
14disconnection, the ordinance, final judgment, or resolution of
15disconnection together with an accurate depiction of the
16territory disconnected. The county in which the annexed or
17disconnected territory is located shall verify that the number
18of residents stated on the written notice that is to be sent to
19the Department of Revenue is true and accurate. The verified
20statement of the county shall accompany the written notice.
21However, if the county does not respond to the municipality's
22request for verification within 30 days, this verification
23requirement shall be waived. The written notice shall be
24provided to the Department of Revenue (1) within 30 days after
25the effective date of this amendatory Act of the 96th General
26Assembly for disconnections occurring after January 1, 2007 and

 

 

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1before the effective date of this amendatory Act of the 96th
2General Assembly or (2) within 30 days after the annexation or
3disconnection for annexations or disconnections occurring on
4or after the effective date of this amendatory Act of the 96th
5General Assembly. For purposes of this Section, a disconnection
6or annexation through court order is deemed to be effective 30
7days after the entry of a final judgment order, unless stayed
8pending appeal. Thereafter, the monthly allocation made to the
9municipality and to any other municipality or county affected
10by the annexation or disconnection shall be adjusted in
11accordance with this Section to reflect the change in residency
12of the residents of the territory that was annexed or
13disconnected. The adjustment shall be made no later than 30
14days after the Department of Revenue's receipt of the written
15notice of annexation or disconnection described in this
16Section.
17(Source: P.A. 96-1040, eff. 7-14-10.)
 
18    Section 10. The Illinois Income Tax Act is amended by
19changing Section 901 as follows:
 
20    (35 ILCS 5/901)
21    (Text of Section before amendment by P.A. 101-8)
22    Sec. 901. Collection authority.
23    (a) In general. The Department shall collect the taxes
24imposed by this Act. The Department shall collect certified

 

 

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1past due child support amounts under Section 2505-650 of the
2Department of Revenue Law of the Civil Administrative Code of
3Illinois. Except as provided in subsections (b), (c), (e), (f),
4(g), and (h) of this Section, money collected pursuant to
5subsections (a) and (b) of Section 201 of this Act shall be
6paid into the General Revenue Fund in the State treasury; money
7collected pursuant to subsections (c) and (d) of Section 201 of
8this Act shall be paid into the Personal Property Tax
9Replacement Fund, a special fund in the State Treasury; and
10money collected under Section 2505-650 of the Department of
11Revenue Law of the Civil Administrative Code of Illinois shall
12be paid into the Child Support Enforcement Trust Fund, a
13special fund outside the State Treasury, or to the State
14Disbursement Unit established under Section 10-26 of the
15Illinois Public Aid Code, as directed by the Department of
16Healthcare and Family Services.
17    (b) Local Government Distributive Fund. Beginning August
181, 2017, the Treasurer shall transfer each month from the
19General Revenue Fund to the Local Government Distributive Fund
20an amount equal to the sum of (i) 6.06% (10% of the ratio of the
213% individual income tax rate prior to 2011 to the 4.95%
22individual income tax rate after July 1, 2017) of the net
23revenue realized from the tax imposed by subsections (a) and
24(b) of Section 201 of this Act upon individuals, trusts, and
25estates during the preceding month and (ii) 6.85% (10% of the
26ratio of the 4.8% corporate income tax rate prior to 2011 to

 

 

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1the 7% corporate income tax rate after July 1, 2017) of the net
2revenue realized from the tax imposed by subsections (a) and
3(b) of Section 201 of this Act upon corporations during the
4preceding month. Net revenue realized for a month shall be
5defined as the revenue from the tax imposed by subsections (a)
6and (b) of Section 201 of this Act which is deposited in the
7General Revenue Fund, the Education Assistance Fund, the Income
8Tax Surcharge Local Government Distributive Fund, the Fund for
9the Advancement of Education, and the Commitment to Human
10Services Fund during the month minus the amount paid out of the
11General Revenue Fund in State warrants during that same month
12as refunds to taxpayers for overpayment of liability under the
13tax imposed by subsections (a) and (b) of Section 201 of this
14Act.
15    Notwithstanding any provision of law to the contrary,
16beginning on July 6, 2017 (the effective date of Public Act
17100-23), those amounts required under this subsection (b) to be
18transferred by the Treasurer into the Local Government
19Distributive Fund from the General Revenue Fund shall be
20directly deposited into the Local Government Distributive Fund
21as the revenue is realized from the tax imposed by subsections
22(a) and (b) of Section 201 of this Act.
23    For State fiscal year 2020 only, notwithstanding any
24provision of law to the contrary, the total amount of revenue
25and deposits under this Section attributable to revenues
26realized during State fiscal year 2020 shall be reduced by 5%.

 

 

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1    (b-5) Financially Distressed Cities Allocation. The
2Department of Revenue shall certify to the Treasurer an amount
3equal to:
4        (1) the amount that would have been distributed under
5    subsection (a) of Section 2 of the State Revenue Sharing
6    Act to all financially distressed cities, as that term is
7    defined in Section 8-12-3 of the Illinois Municipal Code,
8    if the Treasurer had transferred under subsection (b) to
9    the Local Government Distributive Fund a sum calculated
10    using (i) 10% of the net revenue realized from the tax
11    imposed by subsections (a) and (b) of Section 201 of this
12    Act upon individuals, trusts, and estates during the
13    preceding month and (ii) 10% of the net revenue realized
14    from the tax imposed by subsections (a) and (b) of Section
15    201 of this Act upon corporations during the preceding
16    month; and
17        (2) subtracting from the amount calculated under
18    paragraph (1) the amount distributed to all financially
19    distressed cities under subsection (a) of Section 2 of the
20    State Revenue Sharing Act during the current month.
21    Upon receipt of the certification from the Department of
22Revenue, the Treasurer shall order transferred and the
23Comptroller shall transfer from the General Revenue Fund to the
24Local Government Distributive Fund the amount shown on the
25certification.
26    However, nothing in this subsection shall reduce an amount

 

 

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1certified to the Comptroller under subsection (c) of Section
23-125 or subsection (b-5) of Section 4-118 of the Illinois
3Pension Code for failure to transmit contributions required by
4the financially distressed city to the Article 3 or Article 4
5pension fund in its jurisdiction. The Comptroller shall
6continue to deduct and remit the certified amount to the
7Article 3 or Article 4 pension fund consistent with the
8requirements of subsection (c) of Section 3-125 or subsection
9(b-5) of Section 4-118 of the Illinois Pension Code. The
10Comptroller shall continue to deduct and remit all funds
11necessary to enforce the terms of existing settlement
12agreements between a municipality designated a financially
13distressed city and an Article 3 or Article 4 Pension Fund.
14    If for any reason the aggregate appropriations made
15available are insufficient to meet the amount certified under
16this subsection:
17        (1) The Governor shall submit to the General Assembly a
18    proposed budget for the amount certified under this
19    subsection from the General Revenue Fund to the Local
20    Government Distributive Fund for each fiscal year so that
21    the total General Revenue Fund proposed budget is no less
22    than the amount certified under this subsection. In
23    addition, the Governor shall specify the total amount of
24    funds to be transferred from the General Revenue Fund to
25    the Local Government Distributive Fund during the budget
26    year, which shall be no less than the amount certified

 

 

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1    under this subsection. The Governor may submit a proposed
2    budget in which the total appropriated and transferred
3    amounts are less than the amount certified under this
4    subsection if the Governor declares in writing to the
5    General Assembly the reason for the lesser amounts.
6        (2) The General Assembly shall appropriate the amount
7    certified under this subsection from the General Revenue
8    Fund to the Local Government Distributive Fund for each
9    fiscal year so that the total General Revenue Fund
10    appropriation is no less than the amount certified under
11    this subsection. In addition, the General Assembly shall
12    legislatively transfer from the General Revenue Fund to the
13    Local Government Distributive Fund for the fiscal year a
14    total amount that is no less than the amount certified
15    under this subsection. The General Assembly may
16    appropriate or transfer lesser amounts if it declares by
17    Joint Resolution the reason for the lesser amounts.
18    (c) Deposits Into Income Tax Refund Fund.
19        (1) Beginning on January 1, 1989 and thereafter, the
20    Department shall deposit a percentage of the amounts
21    collected pursuant to subsections (a) and (b)(1), (2), and
22    (3) of Section 201 of this Act into a fund in the State
23    treasury known as the Income Tax Refund Fund. Beginning
24    with State fiscal year 1990 and for each fiscal year
25    thereafter, the percentage deposited into the Income Tax
26    Refund Fund during a fiscal year shall be the Annual

 

 

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1    Percentage. For fiscal year 2011, the Annual Percentage
2    shall be 8.75%. For fiscal year 2012, the Annual Percentage
3    shall be 8.75%. For fiscal year 2013, the Annual Percentage
4    shall be 9.75%. For fiscal year 2014, the Annual Percentage
5    shall be 9.5%. For fiscal year 2015, the Annual Percentage
6    shall be 10%. For fiscal year 2018, the Annual Percentage
7    shall be 9.8%. For fiscal year 2019, the Annual Percentage
8    shall be 9.7%. For fiscal year 2020, the Annual Percentage
9    shall be 9.5%. For all other fiscal years, the Annual
10    Percentage shall be calculated as a fraction, the numerator
11    of which shall be the amount of refunds approved for
12    payment by the Department during the preceding fiscal year
13    as a result of overpayment of tax liability under
14    subsections (a) and (b)(1), (2), and (3) of Section 201 of
15    this Act plus the amount of such refunds remaining approved
16    but unpaid at the end of the preceding fiscal year, minus
17    the amounts transferred into the Income Tax Refund Fund
18    from the Tobacco Settlement Recovery Fund, and the
19    denominator of which shall be the amounts which will be
20    collected pursuant to subsections (a) and (b)(1), (2), and
21    (3) of Section 201 of this Act during the preceding fiscal
22    year; except that in State fiscal year 2002, the Annual
23    Percentage shall in no event exceed 7.6%. The Director of
24    Revenue shall certify the Annual Percentage to the
25    Comptroller on the last business day of the fiscal year
26    immediately preceding the fiscal year for which it is to be

 

 

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1    effective.
2        (2) Beginning on January 1, 1989 and thereafter, the
3    Department shall deposit a percentage of the amounts
4    collected pursuant to subsections (a) and (b)(6), (7), and
5    (8), (c) and (d) of Section 201 of this Act into a fund in
6    the State treasury known as the Income Tax Refund Fund.
7    Beginning with State fiscal year 1990 and for each fiscal
8    year thereafter, the percentage deposited into the Income
9    Tax Refund Fund during a fiscal year shall be the Annual
10    Percentage. For fiscal year 2011, the Annual Percentage
11    shall be 17.5%. For fiscal year 2012, the Annual Percentage
12    shall be 17.5%. For fiscal year 2013, the Annual Percentage
13    shall be 14%. For fiscal year 2014, the Annual Percentage
14    shall be 13.4%. For fiscal year 2015, the Annual Percentage
15    shall be 14%. For fiscal year 2018, the Annual Percentage
16    shall be 17.5%. For fiscal year 2019, the Annual Percentage
17    shall be 15.5%. For fiscal year 2020, the Annual Percentage
18    shall be 14.25%. For all other fiscal years, the Annual
19    Percentage shall be calculated as a fraction, the numerator
20    of which shall be the amount of refunds approved for
21    payment by the Department during the preceding fiscal year
22    as a result of overpayment of tax liability under
23    subsections (a) and (b)(6), (7), and (8), (c) and (d) of
24    Section 201 of this Act plus the amount of such refunds
25    remaining approved but unpaid at the end of the preceding
26    fiscal year, and the denominator of which shall be the

 

 

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1    amounts which will be collected pursuant to subsections (a)
2    and (b)(6), (7), and (8), (c) and (d) of Section 201 of
3    this Act during the preceding fiscal year; except that in
4    State fiscal year 2002, the Annual Percentage shall in no
5    event exceed 23%. The Director of Revenue shall certify the
6    Annual Percentage to the Comptroller on the last business
7    day of the fiscal year immediately preceding the fiscal
8    year for which it is to be effective.
9        (3) The Comptroller shall order transferred and the
10    Treasurer shall transfer from the Tobacco Settlement
11    Recovery Fund to the Income Tax Refund Fund (i) $35,000,000
12    in January, 2001, (ii) $35,000,000 in January, 2002, and
13    (iii) $35,000,000 in January, 2003.
14    (d) Expenditures from Income Tax Refund Fund.
15        (1) Beginning January 1, 1989, money in the Income Tax
16    Refund Fund shall be expended exclusively for the purpose
17    of paying refunds resulting from overpayment of tax
18    liability under Section 201 of this Act and for making
19    transfers pursuant to this subsection (d).
20        (2) The Director shall order payment of refunds
21    resulting from overpayment of tax liability under Section
22    201 of this Act from the Income Tax Refund Fund only to the
23    extent that amounts collected pursuant to Section 201 of
24    this Act and transfers pursuant to this subsection (d) and
25    item (3) of subsection (c) have been deposited and retained
26    in the Fund.

 

 

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1        (3) As soon as possible after the end of each fiscal
2    year, the Director shall order transferred and the State
3    Treasurer and State Comptroller shall transfer from the
4    Income Tax Refund Fund to the Personal Property Tax
5    Replacement Fund an amount, certified by the Director to
6    the Comptroller, equal to the excess of the amount
7    collected pursuant to subsections (c) and (d) of Section
8    201 of this Act deposited into the Income Tax Refund Fund
9    during the fiscal year over the amount of refunds resulting
10    from overpayment of tax liability under subsections (c) and
11    (d) of Section 201 of this Act paid from the Income Tax
12    Refund Fund during the fiscal year.
13        (4) As soon as possible after the end of each fiscal
14    year, the Director shall order transferred and the State
15    Treasurer and State Comptroller shall transfer from the
16    Personal Property Tax Replacement Fund to the Income Tax
17    Refund Fund an amount, certified by the Director to the
18    Comptroller, equal to the excess of the amount of refunds
19    resulting from overpayment of tax liability under
20    subsections (c) and (d) of Section 201 of this Act paid
21    from the Income Tax Refund Fund during the fiscal year over
22    the amount collected pursuant to subsections (c) and (d) of
23    Section 201 of this Act deposited into the Income Tax
24    Refund Fund during the fiscal year.
25        (4.5) As soon as possible after the end of fiscal year
26    1999 and of each fiscal year thereafter, the Director shall

 

 

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1    order transferred and the State Treasurer and State
2    Comptroller shall transfer from the Income Tax Refund Fund
3    to the General Revenue Fund any surplus remaining in the
4    Income Tax Refund Fund as of the end of such fiscal year;
5    excluding for fiscal years 2000, 2001, and 2002 amounts
6    attributable to transfers under item (3) of subsection (c)
7    less refunds resulting from the earned income tax credit.
8        (5) This Act shall constitute an irrevocable and
9    continuing appropriation from the Income Tax Refund Fund
10    for the purpose of paying refunds upon the order of the
11    Director in accordance with the provisions of this Section.
12    (e) Deposits into the Education Assistance Fund and the
13Income Tax Surcharge Local Government Distributive Fund. On
14July 1, 1991, and thereafter, of the amounts collected pursuant
15to subsections (a) and (b) of Section 201 of this Act, minus
16deposits into the Income Tax Refund Fund, the Department shall
17deposit 7.3% into the Education Assistance Fund in the State
18Treasury. Beginning July 1, 1991, and continuing through
19January 31, 1993, of the amounts collected pursuant to
20subsections (a) and (b) of Section 201 of the Illinois Income
21Tax Act, minus deposits into the Income Tax Refund Fund, the
22Department shall deposit 3.0% into the Income Tax Surcharge
23Local Government Distributive Fund in the State Treasury.
24Beginning February 1, 1993 and continuing through June 30,
251993, of the amounts collected pursuant to subsections (a) and
26(b) of Section 201 of the Illinois Income Tax Act, minus

 

 

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1deposits into the Income Tax Refund Fund, the Department shall
2deposit 4.4% into the Income Tax Surcharge Local Government
3Distributive Fund in the State Treasury. Beginning July 1,
41993, and continuing through June 30, 1994, of the amounts
5collected under subsections (a) and (b) of Section 201 of this
6Act, minus deposits into the Income Tax Refund Fund, the
7Department shall deposit 1.475% into the Income Tax Surcharge
8Local Government Distributive Fund in the State Treasury.
9    (f) Deposits into the Fund for the Advancement of
10Education. Beginning February 1, 2015, the Department shall
11deposit the following portions of the revenue realized from the
12tax imposed upon individuals, trusts, and estates by
13subsections (a) and (b) of Section 201 of this Act, minus
14deposits into the Income Tax Refund Fund, into the Fund for the
15Advancement of Education:
16        (1) beginning February 1, 2015, and prior to February
17    1, 2025, 1/30; and
18        (2) beginning February 1, 2025, 1/26.
19    If the rate of tax imposed by subsection (a) and (b) of
20Section 201 is reduced pursuant to Section 201.5 of this Act,
21the Department shall not make the deposits required by this
22subsection (f) on or after the effective date of the reduction.
23    (g) Deposits into the Commitment to Human Services Fund.
24Beginning February 1, 2015, the Department shall deposit the
25following portions of the revenue realized from the tax imposed
26upon individuals, trusts, and estates by subsections (a) and

 

 

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1(b) of Section 201 of this Act, minus deposits into the Income
2Tax Refund Fund, into the Commitment to Human Services Fund:
3        (1) beginning February 1, 2015, and prior to February
4    1, 2025, 1/30; and
5        (2) beginning February 1, 2025, 1/26.
6    If the rate of tax imposed by subsection (a) and (b) of
7Section 201 is reduced pursuant to Section 201.5 of this Act,
8the Department shall not make the deposits required by this
9subsection (g) on or after the effective date of the reduction.
10    (h) Deposits into the Tax Compliance and Administration
11Fund. Beginning on the first day of the first calendar month to
12occur on or after August 26, 2014 (the effective date of Public
13Act 98-1098), each month the Department shall pay into the Tax
14Compliance and Administration Fund, to be used, subject to
15appropriation, to fund additional auditors and compliance
16personnel at the Department, an amount equal to 1/12 of 5% of
17the cash receipts collected during the preceding fiscal year by
18the Audit Bureau of the Department from the tax imposed by
19subsections (a), (b), (c), and (d) of Section 201 of this Act,
20net of deposits into the Income Tax Refund Fund made from those
21cash receipts.
22(Source: P.A. 100-22, eff. 7-6-17; 100-23, eff. 7-6-17;
23100-587, eff. 6-4-18; 100-621, eff. 7-20-18; 100-863, eff.
248-14-18; 100-1171, eff. 1-4-19; 101-10, eff. 6-5-19; 101-81,
25eff. 7-12-19.)
 

 

 

HB4168- 19 -LRB101 15644 AWJ 65284 b

1    (Text of Section after amendment by P.A. 101-8)
2    Sec. 901. Collection authority.
3    (a) In general. The Department shall collect the taxes
4imposed by this Act. The Department shall collect certified
5past due child support amounts under Section 2505-650 of the
6Department of Revenue Law of the Civil Administrative Code of
7Illinois. Except as provided in subsections (b), (c), (e), (f),
8(g), and (h) of this Section, money collected pursuant to
9subsections (a) and (b) of Section 201 of this Act shall be
10paid into the General Revenue Fund in the State treasury; money
11collected pursuant to subsections (c) and (d) of Section 201 of
12this Act shall be paid into the Personal Property Tax
13Replacement Fund, a special fund in the State Treasury; and
14money collected under Section 2505-650 of the Department of
15Revenue Law of the Civil Administrative Code of Illinois shall
16be paid into the Child Support Enforcement Trust Fund, a
17special fund outside the State Treasury, or to the State
18Disbursement Unit established under Section 10-26 of the
19Illinois Public Aid Code, as directed by the Department of
20Healthcare and Family Services.
21    (b) Local Government Distributive Fund. Beginning August
221, 2017 and continuing through January 31, 2021, the Treasurer
23shall transfer each month from the General Revenue Fund to the
24Local Government Distributive Fund an amount equal to the sum
25of (i) 6.06% (10% of the ratio of the 3% individual income tax
26rate prior to 2011 to the 4.95% individual income tax rate

 

 

HB4168- 20 -LRB101 15644 AWJ 65284 b

1after July 1, 2017) of the net revenue realized from the tax
2imposed by subsections (a) and (b) of Section 201 of this Act
3upon individuals, trusts, and estates during the preceding
4month and (ii) 6.85% (10% of the ratio of the 4.8% corporate
5income tax rate prior to 2011 to the 7% corporate income tax
6rate after July 1, 2017) of the net revenue realized from the
7tax imposed by subsections (a) and (b) of Section 201 of this
8Act upon corporations during the preceding month. Beginning
9February 1, 2021, the Treasurer shall transfer each month from
10the General Revenue Fund to the Local Government Distributive
11Fund an amount equal to the sum of (i) 5.32% of the net revenue
12realized from the tax imposed by subsections (a) and (b) of
13Section 201 of this Act upon individuals, trusts, and estates
14during the preceding month and (ii) 6.16% of the net revenue
15realized from the tax imposed by subsections (a) and (b) of
16Section 201 of this Act upon corporations during the preceding
17month. Net revenue realized for a month shall be defined as the
18revenue from the tax imposed by subsections (a) and (b) of
19Section 201 of this Act which is deposited in the General
20Revenue Fund, the Education Assistance Fund, the Income Tax
21Surcharge Local Government Distributive Fund, the Fund for the
22Advancement of Education, and the Commitment to Human Services
23Fund during the month minus the amount paid out of the General
24Revenue Fund in State warrants during that same month as
25refunds to taxpayers for overpayment of liability under the tax
26imposed by subsections (a) and (b) of Section 201 of this Act.

 

 

HB4168- 21 -LRB101 15644 AWJ 65284 b

1    Notwithstanding any provision of law to the contrary,
2beginning on July 6, 2017 (the effective date of Public Act
3100-23), those amounts required under this subsection (b) to be
4transferred by the Treasurer into the Local Government
5Distributive Fund from the General Revenue Fund shall be
6directly deposited into the Local Government Distributive Fund
7as the revenue is realized from the tax imposed by subsections
8(a) and (b) of Section 201 of this Act.
9    For State fiscal year 2020 only, notwithstanding any
10provision of law to the contrary, the total amount of revenue
11and deposits under this Section attributable to revenues
12realized during State fiscal year 2020 shall be reduced by 5%.
13    (b-5) Financially Distressed Cities Allocation. The
14Department of Revenue shall certify to the Treasurer an amount
15equal to:
16        (1) the amount that would have been distributed under
17    subsection (a) of Section 2 of the State Revenue Sharing
18    Act to all financially distressed cities, as that term is
19    defined in Section 8-12-3 of the Illinois Municipal Code,
20    if the Treasurer had transferred under subsection (b) to
21    the Local Government Distributive Fund a sum calculated
22    using (i) 10% of the net revenue realized from the tax
23    imposed by subsections (a) and (b) of Section 201 of this
24    Act upon individuals, trusts, and estates during the
25    preceding month and (ii) 10% of the net revenue realized
26    from the tax imposed by subsections (a) and (b) of Section

 

 

HB4168- 22 -LRB101 15644 AWJ 65284 b

1    201 of this Act upon corporations during the preceding
2    month; and
3        (2) subtracting from the amount calculated under
4    paragraph (1) the amount distributed to all financially
5    distressed cities under subsection (a) of Section 2 of the
6    State Revenue Sharing Act during the current month.
7    Upon receipt of the certification from the Department of
8Revenue, the Treasurer shall order transferred and the
9Comptroller shall transfer from the General Revenue Fund to the
10Local Government Distributive Fund the amount shown on the
11certification.
12    However, nothing in this subsection shall reduce an amount
13certified to the Comptroller under subsection (c) of Section
143-125 or subsection (b-5) of Section 4-118 of the Illinois
15Pension Code for failure to transmit contributions required by
16the financially distressed city to the Article 3 or Article 4
17pension fund in its jurisdiction. The Comptroller shall
18continue to deduct and remit the certified amount to the
19Article 3 or Article 4 pension fund consistent with the
20requirements of subsection (c) of Section 3-125 or subsection
21(b-5) of Section 4-118 of the Illinois Pension Code. The
22Comptroller shall continue to deduct and remit all funds
23necessary to enforce the terms of existing settlement
24agreements between a municipality designated a financially
25distressed city and an Article 3 or Article 4 Pension Fund.
26    If for any reason the aggregate appropriations made

 

 

HB4168- 23 -LRB101 15644 AWJ 65284 b

1available are insufficient to meet the amount certified under
2this subsection:
3        (1) The Governor shall submit to the General Assembly a
4    proposed budget for the amount certified under this
5    subsection from the General Revenue Fund to the Local
6    Government Distributive Fund for each fiscal year so that
7    the total General Revenue Fund proposed budget is no less
8    than the amount certified under this subsection. In
9    addition, the Governor shall specify the total amount of
10    funds to be transferred from the General Revenue Fund to
11    the Local Government Distributive Fund during the budget
12    year, which shall be no less than the amount certified
13    under this subsection. The Governor may submit a proposed
14    budget in which the total appropriated and transferred
15    amounts are less than the amount certified under this
16    subsection if the Governor declares in writing to the
17    General Assembly the reason for the lesser amounts.
18        (2) The General Assembly shall appropriate the amount
19    certified under this subsection from the General Revenue
20    Fund to the Local Government Distributive Fund for each
21    fiscal year so that the total General Revenue Fund
22    appropriation is no less than the amount certified under
23    this subsection. In addition, the General Assembly shall
24    legislatively transfer from the General Revenue Fund to the
25    Local Government Distributive Fund for the fiscal year a
26    total amount that is no less than the amount certified

 

 

HB4168- 24 -LRB101 15644 AWJ 65284 b

1    under this subsection. The General Assembly may
2    appropriate or transfer lesser amounts if it declares by
3    Joint Resolution the reason for the lesser amounts.
4    (c) Deposits Into Income Tax Refund Fund.
5        (1) Beginning on January 1, 1989 and thereafter, the
6    Department shall deposit a percentage of the amounts
7    collected pursuant to subsections (a) and (b)(1), (2), and
8    (3) of Section 201 of this Act into a fund in the State
9    treasury known as the Income Tax Refund Fund. Beginning
10    with State fiscal year 1990 and for each fiscal year
11    thereafter, the percentage deposited into the Income Tax
12    Refund Fund during a fiscal year shall be the Annual
13    Percentage. For fiscal year 2011, the Annual Percentage
14    shall be 8.75%. For fiscal year 2012, the Annual Percentage
15    shall be 8.75%. For fiscal year 2013, the Annual Percentage
16    shall be 9.75%. For fiscal year 2014, the Annual Percentage
17    shall be 9.5%. For fiscal year 2015, the Annual Percentage
18    shall be 10%. For fiscal year 2018, the Annual Percentage
19    shall be 9.8%. For fiscal year 2019, the Annual Percentage
20    shall be 9.7%. For fiscal year 2020, the Annual Percentage
21    shall be 9.5%. For all other fiscal years, the Annual
22    Percentage shall be calculated as a fraction, the numerator
23    of which shall be the amount of refunds approved for
24    payment by the Department during the preceding fiscal year
25    as a result of overpayment of tax liability under
26    subsections (a) and (b)(1), (2), and (3) of Section 201 of

 

 

HB4168- 25 -LRB101 15644 AWJ 65284 b

1    this Act plus the amount of such refunds remaining approved
2    but unpaid at the end of the preceding fiscal year, minus
3    the amounts transferred into the Income Tax Refund Fund
4    from the Tobacco Settlement Recovery Fund, and the
5    denominator of which shall be the amounts which will be
6    collected pursuant to subsections (a) and (b)(1), (2), and
7    (3) of Section 201 of this Act during the preceding fiscal
8    year; except that in State fiscal year 2002, the Annual
9    Percentage shall in no event exceed 7.6%. The Director of
10    Revenue shall certify the Annual Percentage to the
11    Comptroller on the last business day of the fiscal year
12    immediately preceding the fiscal year for which it is to be
13    effective.
14        (2) Beginning on January 1, 1989 and thereafter, the
15    Department shall deposit a percentage of the amounts
16    collected pursuant to subsections (a) and (b)(6), (7), and
17    (8), (c) and (d) of Section 201 of this Act into a fund in
18    the State treasury known as the Income Tax Refund Fund.
19    Beginning with State fiscal year 1990 and for each fiscal
20    year thereafter, the percentage deposited into the Income
21    Tax Refund Fund during a fiscal year shall be the Annual
22    Percentage. For fiscal year 2011, the Annual Percentage
23    shall be 17.5%. For fiscal year 2012, the Annual Percentage
24    shall be 17.5%. For fiscal year 2013, the Annual Percentage
25    shall be 14%. For fiscal year 2014, the Annual Percentage
26    shall be 13.4%. For fiscal year 2015, the Annual Percentage

 

 

HB4168- 26 -LRB101 15644 AWJ 65284 b

1    shall be 14%. For fiscal year 2018, the Annual Percentage
2    shall be 17.5%. For fiscal year 2019, the Annual Percentage
3    shall be 15.5%. For fiscal year 2020, the Annual Percentage
4    shall be 14.25%. For all other fiscal years, the Annual
5    Percentage shall be calculated as a fraction, the numerator
6    of which shall be the amount of refunds approved for
7    payment by the Department during the preceding fiscal year
8    as a result of overpayment of tax liability under
9    subsections (a) and (b)(6), (7), and (8), (c) and (d) of
10    Section 201 of this Act plus the amount of such refunds
11    remaining approved but unpaid at the end of the preceding
12    fiscal year, and the denominator of which shall be the
13    amounts which will be collected pursuant to subsections (a)
14    and (b)(6), (7), and (8), (c) and (d) of Section 201 of
15    this Act during the preceding fiscal year; except that in
16    State fiscal year 2002, the Annual Percentage shall in no
17    event exceed 23%. The Director of Revenue shall certify the
18    Annual Percentage to the Comptroller on the last business
19    day of the fiscal year immediately preceding the fiscal
20    year for which it is to be effective.
21        (3) The Comptroller shall order transferred and the
22    Treasurer shall transfer from the Tobacco Settlement
23    Recovery Fund to the Income Tax Refund Fund (i) $35,000,000
24    in January, 2001, (ii) $35,000,000 in January, 2002, and
25    (iii) $35,000,000 in January, 2003.
26    (d) Expenditures from Income Tax Refund Fund.

 

 

HB4168- 27 -LRB101 15644 AWJ 65284 b

1        (1) Beginning January 1, 1989, money in the Income Tax
2    Refund Fund shall be expended exclusively for the purpose
3    of paying refunds resulting from overpayment of tax
4    liability under Section 201 of this Act and for making
5    transfers pursuant to this subsection (d).
6        (2) The Director shall order payment of refunds
7    resulting from overpayment of tax liability under Section
8    201 of this Act from the Income Tax Refund Fund only to the
9    extent that amounts collected pursuant to Section 201 of
10    this Act and transfers pursuant to this subsection (d) and
11    item (3) of subsection (c) have been deposited and retained
12    in the Fund.
13        (3) As soon as possible after the end of each fiscal
14    year, the Director shall order transferred and the State
15    Treasurer and State Comptroller shall transfer from the
16    Income Tax Refund Fund to the Personal Property Tax
17    Replacement Fund an amount, certified by the Director to
18    the Comptroller, equal to the excess of the amount
19    collected pursuant to subsections (c) and (d) of Section
20    201 of this Act deposited into the Income Tax Refund Fund
21    during the fiscal year over the amount of refunds resulting
22    from overpayment of tax liability under subsections (c) and
23    (d) of Section 201 of this Act paid from the Income Tax
24    Refund Fund during the fiscal year.
25        (4) As soon as possible after the end of each fiscal
26    year, the Director shall order transferred and the State

 

 

HB4168- 28 -LRB101 15644 AWJ 65284 b

1    Treasurer and State Comptroller shall transfer from the
2    Personal Property Tax Replacement Fund to the Income Tax
3    Refund Fund an amount, certified by the Director to the
4    Comptroller, equal to the excess of the amount of refunds
5    resulting from overpayment of tax liability under
6    subsections (c) and (d) of Section 201 of this Act paid
7    from the Income Tax Refund Fund during the fiscal year over
8    the amount collected pursuant to subsections (c) and (d) of
9    Section 201 of this Act deposited into the Income Tax
10    Refund Fund during the fiscal year.
11        (4.5) As soon as possible after the end of fiscal year
12    1999 and of each fiscal year thereafter, the Director shall
13    order transferred and the State Treasurer and State
14    Comptroller shall transfer from the Income Tax Refund Fund
15    to the General Revenue Fund any surplus remaining in the
16    Income Tax Refund Fund as of the end of such fiscal year;
17    excluding for fiscal years 2000, 2001, and 2002 amounts
18    attributable to transfers under item (3) of subsection (c)
19    less refunds resulting from the earned income tax credit.
20        (5) This Act shall constitute an irrevocable and
21    continuing appropriation from the Income Tax Refund Fund
22    for the purpose of paying refunds upon the order of the
23    Director in accordance with the provisions of this Section.
24    (e) Deposits into the Education Assistance Fund and the
25Income Tax Surcharge Local Government Distributive Fund. On
26July 1, 1991, and thereafter, of the amounts collected pursuant

 

 

HB4168- 29 -LRB101 15644 AWJ 65284 b

1to subsections (a) and (b) of Section 201 of this Act, minus
2deposits into the Income Tax Refund Fund, the Department shall
3deposit 7.3% into the Education Assistance Fund in the State
4Treasury. Beginning July 1, 1991, and continuing through
5January 31, 1993, of the amounts collected pursuant to
6subsections (a) and (b) of Section 201 of the Illinois Income
7Tax Act, minus deposits into the Income Tax Refund Fund, the
8Department shall deposit 3.0% into the Income Tax Surcharge
9Local Government Distributive Fund in the State Treasury.
10Beginning February 1, 1993 and continuing through June 30,
111993, of the amounts collected pursuant to subsections (a) and
12(b) of Section 201 of the Illinois Income Tax Act, minus
13deposits into the Income Tax Refund Fund, the Department shall
14deposit 4.4% into the Income Tax Surcharge Local Government
15Distributive Fund in the State Treasury. Beginning July 1,
161993, and continuing through June 30, 1994, of the amounts
17collected under subsections (a) and (b) of Section 201 of this
18Act, minus deposits into the Income Tax Refund Fund, the
19Department shall deposit 1.475% into the Income Tax Surcharge
20Local Government Distributive Fund in the State Treasury.
21    (f) Deposits into the Fund for the Advancement of
22Education. Beginning February 1, 2015, the Department shall
23deposit the following portions of the revenue realized from the
24tax imposed upon individuals, trusts, and estates by
25subsections (a) and (b) of Section 201 of this Act, minus
26deposits into the Income Tax Refund Fund, into the Fund for the

 

 

HB4168- 30 -LRB101 15644 AWJ 65284 b

1Advancement of Education:
2        (1) beginning February 1, 2015, and prior to February
3    1, 2025, 1/30; and
4        (2) beginning February 1, 2025, 1/26.
5    If the rate of tax imposed by subsection (a) and (b) of
6Section 201 is reduced pursuant to Section 201.5 of this Act,
7the Department shall not make the deposits required by this
8subsection (f) on or after the effective date of the reduction.
9    (g) Deposits into the Commitment to Human Services Fund.
10Beginning February 1, 2015, the Department shall deposit the
11following portions of the revenue realized from the tax imposed
12upon individuals, trusts, and estates by subsections (a) and
13(b) of Section 201 of this Act, minus deposits into the Income
14Tax Refund Fund, into the Commitment to Human Services Fund:
15        (1) beginning February 1, 2015, and prior to February
16    1, 2025, 1/30; and
17        (2) beginning February 1, 2025, 1/26.
18    If the rate of tax imposed by subsection (a) and (b) of
19Section 201 is reduced pursuant to Section 201.5 of this Act,
20the Department shall not make the deposits required by this
21subsection (g) on or after the effective date of the reduction.
22    (h) Deposits into the Tax Compliance and Administration
23Fund. Beginning on the first day of the first calendar month to
24occur on or after August 26, 2014 (the effective date of Public
25Act 98-1098), each month the Department shall pay into the Tax
26Compliance and Administration Fund, to be used, subject to

 

 

HB4168- 31 -LRB101 15644 AWJ 65284 b

1appropriation, to fund additional auditors and compliance
2personnel at the Department, an amount equal to 1/12 of 5% of
3the cash receipts collected during the preceding fiscal year by
4the Audit Bureau of the Department from the tax imposed by
5subsections (a), (b), (c), and (d) of Section 201 of this Act,
6net of deposits into the Income Tax Refund Fund made from those
7cash receipts.
8(Source: P.A. 100-22, eff. 7-6-17; 100-23, eff. 7-6-17;
9100-587, eff. 6-4-18; 100-621, eff. 7-20-18; 100-863, eff.
108-14-18; 100-1171, eff. 1-4-19; 101-8, see Section 99 for
11effective date; 101-10, eff. 6-5-19; 101-81, eff. 7-12-19;
12revised 10-1-19.)
 
13    Section 15. The Illinois Municipal Code is amended by
14changing Sections 8-12-3, 8-12-4, 8-12-10, 8-12-18, and
158-12-24 as follows:
 
16    (65 ILCS 5/8-12-3)  (from Ch. 24, par. 8-12-3)
17    Sec. 8-12-3. As used in this Division:
18    (1) "Authority" means the "(Name of Financially Distressed
19City) Financial Advisory Authority".
20    (2) "Financially distressed city" means any municipality
21which: is a home rule unit and which (i) is a home rule unit
22certified by the Department of Revenue as being in the highest
235% of all home rule municipalities in terms of the aggregate of
24the rate per cent of all taxes levied pursuant to statute or

 

 

HB4168- 32 -LRB101 15644 AWJ 65284 b

1ordinance upon all taxable property of the municipality and as
2being in the lowest 5% of all home rule municipalities in terms
3of per capita tax yield, or is a non-home rule unit certified
4by the Department of Revenue as being in the highest 5% of all
5non-home rule municipalities in terms of the aggregate of the
6rate per cent of all taxes levied pursuant to statute or
7ordinance upon all taxable property of the municipality and as
8being in the lowest 5% of all non-home rule municipalities in
9terms of per capita tax yield; and (ii) is designated by joint
10resolution of the General Assembly as a financially distressed
11city.
12    (3) "Home rule municipality" means a municipality which is
13a home rule unit as provided in Section 6 of Article VII of the
14Illinois Constitution.
15    (4) "Budget" means an annual appropriation ordinance or
16annual budget as described in Division 2 of Article 8, as from
17time to time in effect in the financially distressed city.
18    (5) "Chairperson" means the chairperson of the Authority
19appointed pursuant to Section 8-12-7.
20    (6) "Financial Plan" means the financially distressed
21city's financial plan as developed pursuant to Section 8-12-15,
22as from time to time in effect.
23    (7) "Fiscal year" means the fiscal year of the financially
24distressed city.
25    (8) "Obligations" means bonds, notes or other evidence of
26indebtedness issued by the Illinois Finance Authority in

 

 

HB4168- 33 -LRB101 15644 AWJ 65284 b

1connection with the provision of financial aid to a financially
2distressed city pursuant to this Division and applicable
3provisions of the Illinois Finance Authority Act.
4(Source: P.A. 93-205, eff. 1-1-04.)
 
5    (65 ILCS 5/8-12-4)  (from Ch. 24, par. 8-12-4)
6    Sec. 8-12-4. In order to receive assistance as provided in
7this Division, a home rule municipality shall first, by
8ordinance passed by its corporate authorities, request (i) that
9the Department of Revenue certify that it is in the highest 5%
10of all home rule or non-home rule municipalities, respectively,
11in terms of the aggregate of the rate per cent of all taxes
12levied pursuant to statute or ordinance upon all taxable
13property of the municipality and in the lowest 5% of all home
14rule or non-home rule municipalities, respectively, in terms of
15per capita tax yield, and (ii) that the General Assembly by
16joint resolution designate it as a financially distressed city.
17A home rule municipality which is so certified and designated
18as a financially distressed city and which desires to receive
19assistance as provided in this Division shall, by ordinance
20passed by its corporate authorities, request that a financial
21advisory authority be appointed for the municipality and that
22the municipality city and that the city receive assistance as
23provided in this Division, and shall file a certified copy of
24that ordinance with the Governor, with the Clerk of the House
25of Representatives and with the Secretary of the Senate. Upon

 

 

HB4168- 34 -LRB101 15644 AWJ 65284 b

1the filing of the certified copies of that ordinance as
2required by this Section this Division and all of its
3provisions shall then and thereafter be applicable to the
4financially distressed city, shall govern and control its
5financial accounting, budgeting and taxing procedures and
6practices, and, subject to the limitations of subsection (a) of
7Section 8-12-22, shall remain in full force and effect with
8respect thereto until such time as the financial advisory
9authority established under Section 8-12-5 is abolished as
10provided in subsection (c) of Section 8-12-22.
11(Source: P.A. 86-1211.)
 
12    (65 ILCS 5/8-12-10)  (from Ch. 24, par. 8-12-10)
13    Sec. 8-12-10. Any State agency or unit of local government,
14within its respective function, may render such services and
15technical assistance to the Authority as the Authority may
16request. Upon the Authority's request any such agency or unit
17of local government may transfer to the Authority such officers
18and employees as the Authority and any such agency or unit of
19local government deem necessary to carry out the Authority's
20functions and duties. Officers and employees so transferred
21shall not lose or forfeit their employment status or rights.
22(Source: P.A. 86-1211.)
 
23    (65 ILCS 5/8-12-18)  (from Ch. 24, par. 8-12-18)
24    Sec. 8-12-18. (a) The financially distressed city shall

 

 

HB4168- 35 -LRB101 15644 AWJ 65284 b

1meet its debt service obligations as they become due. No other
2expenditure shall be made by the city unless it is consistent
3with the Financial Plan and Budget in effect. The State shall
4not reduce revenues or impose additional costs affecting the
5financially distressed city, including, but not limited to,
6deductions from warrants under Section 10.05 of the State
7Comptroller Act, unless it is consistent with the Financial
8Plan and Budget in effect. However, nothing in this subsection
9shall reduce an amount certified to the Comptroller under
10subsection (c) of Section 3-125 or subsection (b-5) of Section
114-118 of the Illinois Pension Code for failure to transmit
12contributions required by the financially distressed city to
13the Article 3 or Article 4 pension fund in its jurisdiction.
14The Comptroller shall continue to deduct and remit the
15certified amount to the Article 3 or Article 4 pension fund
16consistent with the requirements of subsection (c) of Section
173-125 or subsection (b-5) of Section 4-118 of the Illinois
18Pension Code. The Comptroller shall continue to deduct and
19remit all funds necessary to enforce the terms of existing
20settlement agreements between a municipality designated a
21financially distressed city and an Article 3 or Article 4
22Pension Fund. The Department of Revenue shall notify the
23Comptroller when a financially distressed city shall not have
24revenue offsets or deductions from warrants under Section 10.05
25of the State Comptroller Act.
26    This subsection does not limit the Department of Revenue's

 

 

HB4168- 36 -LRB101 15644 AWJ 65284 b

1authority to reduce revenues to correct an error.
2    (b) State mandates enacted while a municipality is
3designated as a financially distressed city that would cause
4the municipality to incur additional costs are not valid or
5enforceable against the municipality during the period when the
6municipality is under the financially distressed city
7designation.
8(Source: P.A. 86-1211.)
 
9    (65 ILCS 5/8-12-24)  (from Ch. 24, par. 8-12-24)
10    Sec. 8-12-24. A municipality home rule unit which is a
11financially distressed city to which this Division is
12applicable as provided in Section 8-12-4 may not employ
13financial or fiscal accounting or budgetary procedures or
14systems, nor place into effect any Financial Plan or Budget,
15nor enter into any contract or make any expenditure, nor
16otherwise conduct its financial and fiscal affairs or take
17other action in a manner inconsistent with the provisions of
18this Division, until such time as the powers and
19responsibilities of the Authority are terminated as provided in
20Section 8-12-22. This Section is a limitation under subsection
21(i) of Section 6 of Article VII of the Illinois Constitution on
22the concurrent exercise by home rule units which are
23financially distressed cities to which this Division is
24applicable as provided in Section 8-12-4 of powers and
25functions exercised by the State.

 

 

HB4168- 37 -LRB101 15644 AWJ 65284 b

1(Source: P.A. 86-1211.)
 
2    Section 95. No acceleration or delay. Where this Act makes
3changes in a statute that is represented in this Act by text
4that is not yet or no longer in effect (for example, a Section
5represented by multiple versions), the use of that text does
6not accelerate or delay the taking effect of (i) the changes
7made by this Act or (ii) provisions derived from any other
8Public Act.
 
9    Section 99. Effective date. This Act takes effect January
101, 2021.

 

 

HB4168- 38 -LRB101 15644 AWJ 65284 b

1 INDEX
2 Statutes amended in order of appearance
3    30 ILCS 115/2from Ch. 85, par. 612
4    35 ILCS 5/901
5    65 ILCS 5/8-12-3from Ch. 24, par. 8-12-3
6    65 ILCS 5/8-12-4from Ch. 24, par. 8-12-4
7    65 ILCS 5/8-12-10from Ch. 24, par. 8-12-10
8    65 ILCS 5/8-12-18from Ch. 24, par. 8-12-18
9    65 ILCS 5/8-12-24from Ch. 24, par. 8-12-24