Illinois General Assembly - Full Text of HB0005
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Full Text of HB0005  102nd General Assembly




State of Illinois
2021 and 2022


Introduced 1/14/2021, by Rep. Anthony DeLuca


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 enacted 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 changes. Effective immediately.

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HB0005LRB102 02579 RJF 12581 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
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
24employee retirement benefits which is enacted after the
25effective date of this Act and which has the effect of
26elevating retirement benefits of local government employees



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1shall be reimbursed by the State; except that any increased
2costs of a local government attributable to Public Act 83-152,
383-374, 83-375, 83-528, 83-558, 83-661, 83-664, 83-737,
483-772, 83-773, 83-780, 83-792, 83-793, 83-802, 83-810,
583-812, 83-823, 83-827 or 83-869 are not reimbursable by the
7    (f) After the effective date of this Act, any bill filed
8and any amended bill that creates or enlarges a State mandate
9of the type specified in subsections (f), (g) and (h) of
10Section 3, shall have provided and identified for it an
11appropriation of an amount necessary to provide the
12reimbursement specified above unless a statement, stating the
13specific reasons for such exclusion is set out in the bill or
14amendment as provided in subsection (a) of Section 8.
15    (g) If a local government or combination of local
16governments has been providing a service at its option which
17is subsequently mandated by the State, the State shall pay
18them for the subsequent costs of such program and the local
19government or governments shall proportionately reduce its or
20their property tax extensions by the amount that the State
21payment replaces property tax revenues which were being
22expended on such service. However, for purposes of calculating
23a school district's State aid, no district's operating tax
24rate shall be decreased as a result of reimbursement under
25this Act.
26    (h) Any increased costs accruing to a local government as



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1a direct result of the requirements of the Steel Products
2Procurement Act are not reimbursable by the State.
3    (i) The provisions of subsections (a) through (h) shall
4apply to State mandates enacted prior to the effective date of
5this amendatory Act of the 102nd General Assembly. On and
6after the effective date of this amendatory Act of the 102nd
7General Assembly, any State mandate enacted regarding any
8subject matter that necessitates additional expenditures from
9local government revenues shall be appropriated for and
10reimbursed as provided under Section 9.2.
11(Source: P.A. 83-1362.)
12    (30 ILCS 805/8)  (from Ch. 85, par. 2208)
13    Sec. 8. Exclusions, reimbursement application, review,
14appeals, and adjudication.
15    (a) Exclusions: Any of the following circumstances
16inherent to, or associated with, a mandate shall exclude the
17State from reimbursement liability under this Act. If the
18mandate (1) accommodates a request from local governments or
19organizations thereof; (2) imposes additional duties of a
20nature which can be carried out by existing staff and
21procedures at no appreciable net cost increase; (3) creates
22additional costs but also provides offsetting savings
23resulting in no aggregate increase in net costs; (4) imposes a
24cost that is wholly or largely recovered from Federal, State
25or other external financial aid; (5) imposes additional annual



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1net costs of less than $1,000 for each of the several local
2governments affected or less than $50,000, in the aggregate,
3for all local governments affected.
4    The failure of the General Assembly to make necessary
5appropriations shall relieve the local government of the
6obligation to implement any service mandates, tax exemption
7mandates, and personnel mandates, as specified in Section 6,
8subsections (b), (c), (d) and (e), unless the exclusion
9provided for in this Section are explicitly stated in the Act
10establishing the mandate. In the event that funding is not
11provided for a State-mandated program by the General Assembly,
12the local government may implement or continue the program
13upon approval of its governing body. If the local government
14approves the program and funding is subsequently provided, the
15State shall reimburse the local governments only for costs
16incurred subsequent to the funding.
17    (a-5) The provisions of subsection (a) excluding the State
18from reimbursement liability under this Act shall not apply to
19any State mandate enacted on or after the effective date of
20this amendatory Act of the 102nd General Assembly, and all
21subsequent State mandates enacted shall be appropriated for as
22provided under Section 9.2.
23    (b) Reimbursement Estimation and Appropriation Procedure.
24        (1) When a bill is introduced in the General Assembly,
25    the Legislative Reference Bureau, hereafter referred to as
26    the Bureau, shall determine whether such bill may require



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1    reimbursement to local governments pursuant to this Act.
2    The Bureau shall make such determination known in the
3    Legislative Synopsis and Digest.
4        In making the determination required by this
5    subsection (b) the Bureau shall disregard any provision in
6    a bill which would make inoperative the reimbursement
7    requirements of Section 6 above, including an express
8    exclusion of the applicability of this Act, and shall make
9    the determination irrespective of any such provision.
10        (2) Any bill or amended bill which creates or expands
11    a State mandate shall be subject to the provisions of "An
12    Act requiring fiscal notes in relation to certain bills",
13    approved June 4, 1965, as amended. The fiscal notes for
14    such bills or amended bills shall include estimates of the
15    costs to local government and the costs of any
16    reimbursement required under this Act. In the case of
17    bills having a potential fiscal impact on units of local
18    government, the fiscal note shall be prepared by the
19    Department. In the case of bills having a potential fiscal
20    impact on school districts, the fiscal note shall be
21    prepared by the State Superintendent of Education. In the
22    case of bills having a potential fiscal impact on
23    community college districts, the fiscal note shall be
24    prepared by the Illinois Community College Board. Such
25    fiscal note shall accompany the bill that requires State
26    reimbursement and shall be prepared prior to any final



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1    action on such a bill by the assigned committee. However,
2    if a fiscal note is not filed by the appropriate agency
3    within 30 days of introduction of a bill, the bill can be
4    heard in committee and advanced to the order of second
5    reading. The bill shall then remain on second reading
6    until a fiscal note is filed. A bill discharged from
7    committee shall also remain on second reading until a
8    fiscal note is provided by the appropriate agency.
9        (3) The estimate required by paragraph (2) above,
10    shall include the amount estimated to be required during
11    the first fiscal year of a bill's operation in order to
12    reimburse local governments pursuant to Section 6, for
13    costs mandated by such bill. In the event that the
14    effective date of such a bill is not the first day of the
15    fiscal year the estimate shall also include the amount
16    estimated to be required for reimbursement for the next
17    following full fiscal year.
18        (4) For the initial fiscal year, reimbursement funds
19    shall be provided as follows: (i) any statute mandating
20    such costs shall have a companion appropriation bill, and
21    (ii) any executive order mandating such costs shall be
22    accompanied by a bill to appropriate the funds therefor,
23    or, alternatively an appropriation for such funds shall be
24    included in the executive budget for the next following
25    fiscal year.
26        In subsequent fiscal years appropriations for such



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



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1    shall submit claims as specified above on or before
2    October 1 of each year. The Department, State
3    Superintendent of Education or Illinois Community College
4    Board shall apportion the claims into 3 equal installments
5    and shall direct the Comptroller to pay the first
6    installment upon approval of the claims, with subsequent
7    installments to follow on January 1 and March 1, such
8    claims to be paid from funds appropriated therefor,
9    provided that the Department, State Superintendent of
10    Education or Illinois Community College Board (i) may
11    audit the records of any local governments to verify the
12    actual amount of the mandated cost, (ii) may reduce any
13    claim, determined to be excessive or unreasonable, and
14    (iii) shall adjust the payment to correct for any
15    underpayments or overpayments which occurred in the
16    previous fiscal year.
17        (3) Any funds received by a local government pursuant
18    to this Act may be used for any public purpose.
19        If the funds appropriated for reimbursement of the
20    costs of local government resulting from the creation or
21    expansion of a State mandate are less than the total of the
22    approved claims, the amount appropriated shall be prorated
23    among the local governments having approved claims.
24    (d) Appeals and Adjudication.
25        (1) Local governments may appeal determinations made
26    by State agencies acting pursuant to subsection (c) above.



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1    The appeal must be submitted to the State Mandates Board
2    of Review created by Section 9.1 of this Act within 60 days
3    following the date of receipt of the determination being
4    appealed. The appeal must include evidence as to the
5    extent to which the mandate has been carried out in an
6    effective manner and executed without recourse to
7    standards of staffing or expenditure higher than specified
8    in the mandatory statute, if such standards are specified
9    in the statute. The State Mandates Board of Review, after
10    reviewing the evidence submitted to it, may increase or
11    reduce the amount of a reimbursement claim. The decision
12    of the State Mandates Board of Review shall be final
13    subject to judicial review. However, if sufficient funds
14    have not been appropriated, the Department shall notify
15    the General Assembly of such cost, and appropriations for
16    such costs shall be included in a supplemental
17    appropriation bill.
18        (2) A local government may also appeal directly to the
19    State Mandates Board of Review in those situations in
20    which the Department of Commerce and Economic Opportunity
21    does not act upon the local government's application for
22    reimbursement or request for mandate determination
23    submitted under this Act. The appeal must include evidence
24    that the application for reimbursement or request for
25    mandate determination was properly filed and should have
26    been reviewed by the Department.



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1        An appeal may be made to the Board if the Department
2    does not respond to a local government's application for
3    reimbursement or request for mandate determination within
4    120 days after filing the application or request. In no
5    case, however, may an appeal be brought more than one year
6    after the application or request is filed with the
7    Department.
8(Source: P.A. 94-793, eff. 5-19-06.)
9    (30 ILCS 805/9.2 new)
10    Sec. 9.2. Unfunded State mandates prohibited.
11Notwithstanding any provision of law to the contrary, any
12State mandate regarding any subject matter enacted on or after
13the effective date of this amendatory Act of the 102nd General
14Assembly that necessitates additional expenditures from local
15government revenues shall be void and unenforceable unless the
16General Assembly makes necessary appropriations to implement
17that mandate. The failure of the General Assembly to make
18necessary appropriations shall relieve the local government of
19the obligation to implement any State mandate.
20    Section 99. Effective date. This Act takes effect upon
21becoming law.