100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB0644

 

Introduced , by Rep. Daniel J. Burke

 

SYNOPSIS AS INTRODUCED:
 
New Act

    Creates the Municipal Financial Distress Alert System Act. Requires the State Comptroller to establish an index system to identify municipalities that are in or approaching financial distress. Provides that the Comptroller shall use the index system to indicate municipalities that have failed to submit annual audits or financial reports to the Comptroller as required by law. Requires the Comptroller to annually review audits and financial reports obtained under the Governmental Account Audit Act and publish a report identifying municipalities that are in or approaching financial distress. Defines terms.


LRB100 00378 RJF 10382 b

 

 

A BILL FOR

 

HB0644LRB100 00378 RJF 10382 b

1    AN ACT concerning State government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Short title. This Act may be cited as the
5Municipal Financial Distress Alert System Act.
 
6    Section 5. Purpose. The purpose of this Act is to establish
7an alert system, directed by the State Comptroller, to annually
8identify municipalities that are in or approaching financial
9distress.
 
10    Section 10. Definitions. For the purpose of this Act,
11unless context indicates otherwise:
12    "Municipality" means a city or village with a population of
13less than 100,000 that is subject to the Governmental Account
14Audit Act.
15    "Financial distress" means a financial state in which a
16municipality is in danger of being unable to provide basic
17services or pay bills as they come due, according to criteria
18established by the State Comptroller in consultation with the
19State Comptroller Local Government Advisory Board.
20    "Financial indicators" means a municipality's reported
21revenues, expenditures, debt, liabilities, assets, and pension
22liabilities across all funds and component units derived from

 

 

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1audits and financial reports submitted to the State Comptroller
2or other documents available to the State Comptroller.
 
3    Section 15. Index system.
4    (a) The State Comptroller shall establish an index system
5to identify municipalities that are in or approaching financial
6distress.
7    (b) If any municipality has failed to submit annual audits
8or financial reports to the State Comptroller as required by
9law, then the Comptroller shall indicate in the annual index
10that the municipality is not in compliance.
 
11    Section 20. Review of audits. The State Comptroller shall
12annually review audits and financial reports obtained under the
13Governmental Account Audit Act and publish a report identifying
14municipalities that are in or approaching financial distress.