101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB0170

 

Introduced 1/30/2019, by Sen. Napoleon Harris, III

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Amends the State Finance Act. Creates the Financially Distressed Cities Fund. Amends the State Revenue Sharing Act and the Illinois Income Tax Act. Provides that the Treasurer shall monthly transfer to the Financially Distressed Cities 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 the Treasurer had transferred to the Local Government Distributive Fund a sum calculated using 0.10% 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; and (2) subtracting the amount distributed to all financially distressed cities from the Local Government Distributive Fund. Provides that the Department of Revenue shall monthly allocate an amount from the Financially Distressed Cities Fund that shall be paid to each financially distressed city. 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, 2020.


LRB101 06687 AWJ 51714 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB0170LRB101 06687 AWJ 51714 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 Finance Act is amended by adding
5Section 5.891 as follows:
 
6    (30 ILCS 105/5.891 new)
7    Sec. 5.891. The Financially Distressed Cities Fund.
 
8    Section 10. The State Revenue Sharing Act is amended by
9changing Section 2 as follows:
 
10    (30 ILCS 115/2)  (from Ch. 85, par. 612)
11    Sec. 2. Allocation and Disbursement.
12    (a) As soon as may be after the first day of each month,
13the Department of Revenue shall allocate among the several
14municipalities and counties of this State the amount available
15in the Local Government Distributive Fund and in the Income Tax
16Surcharge Local Government Distributive Fund, determined as
17provided in Sections 1 and 1a above. Except as provided in
18Sections 13 and 13.1 of this Act, the Department shall then
19certify such allocations to the State Comptroller, who shall
20pay over to the several municipalities and counties the
21respective amounts allocated to them. The amount of such Funds

 

 

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

 

 

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1transferred to the Financially Distressed Cities Fund under
2subsection (b-5) of Section 905 of the Illinois Income Tax Act.
3The Department shall then certify the allocations to the State
4Comptroller, who shall pay over to each financially distressed
5city the respective amounts allocated to it. The amount of
6funds allocable to each financially distressed city shall be in
7proportion to the number of individual residents of the
8financially distressed city to the total population of all
9financially distressed cities combined, determined in each
10case on the basis of the latest census of the State,
11municipality, or county conducted by the Federal government and
12certified by the Secretary of State and for annexations to
13municipalities, the latest Federal, State, or municipal census
14of the annexed area which has been certified by the Department
15of Revenue.
16    (b) It is the intent of the General Assembly that
17allocations made under this Section shall be made in a fair and
18equitable manner. Accordingly, the clerk of any municipality to
19which territory has been annexed, or from which territory has
20been disconnected, shall notify the Department of Revenue in
21writing of that annexation or disconnection and shall (1) state
22the number of residents within the territory that was annexed
23or disconnected, based on the last census conducted by the
24federal, State, or municipal government and certified by the
25Illinois Secretary of State, and (2) furnish therewith a
26certified copy of the plat of annexation or, in the case of

 

 

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1disconnection, the ordinance, final judgment, or resolution of
2disconnection together with an accurate depiction of the
3territory disconnected. The county in which the annexed or
4disconnected territory is located shall verify that the number
5of residents stated on the written notice that is to be sent to
6the Department of Revenue is true and accurate. The verified
7statement of the county shall accompany the written notice.
8However, if the county does not respond to the municipality's
9request for verification within 30 days, this verification
10requirement shall be waived. The written notice shall be
11provided to the Department of Revenue (1) within 30 days after
12the effective date of this amendatory Act of the 96th General
13Assembly for disconnections occurring after January 1, 2007 and
14before the effective date of this amendatory Act of the 96th
15General Assembly or (2) within 30 days after the annexation or
16disconnection for annexations or disconnections occurring on
17or after the effective date of this amendatory Act of the 96th
18General Assembly. For purposes of this Section, a disconnection
19or annexation through court order is deemed to be effective 30
20days after the entry of a final judgment order, unless stayed
21pending appeal. Thereafter, the monthly allocation made to the
22municipality and to any other municipality or county affected
23by the annexation or disconnection shall be adjusted in
24accordance with this Section to reflect the change in residency
25of the residents of the territory that was annexed or
26disconnected. The adjustment shall be made no later than 30

 

 

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1days after the Department of Revenue's receipt of the written
2notice of annexation or disconnection described in this
3Section.
4(Source: P.A. 96-1040, eff. 7-14-10.)
 
5    Section 15. The Illinois Income Tax Act is amended by
6changing Section 901 as follows:
 
7    (35 ILCS 5/901)  (from Ch. 120, par. 9-901)
8    Sec. 901. Collection authority.
9    (a) In general. The Department shall collect the taxes
10imposed by this Act. The Department shall collect certified
11past due child support amounts under Section 2505-650 of the
12Department of Revenue Law of the Civil Administrative Code of
13Illinois. Except as provided in subsections (b), (c), (e), (f),
14(g), and (h) of this Section, money collected pursuant to
15subsections (a) and (b) of Section 201 of this Act shall be
16paid into the General Revenue Fund in the State treasury; money
17collected pursuant to subsections (c) and (d) of Section 201 of
18this Act shall be paid into the Personal Property Tax
19Replacement Fund, a special fund in the State Treasury; and
20money collected under Section 2505-650 of the Department of
21Revenue Law of the Civil Administrative Code of Illinois shall
22be paid into the Child Support Enforcement Trust Fund, a
23special fund outside the State Treasury, or to the State
24Disbursement Unit established under Section 10-26 of the

 

 

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1Illinois Public Aid Code, as directed by the Department of
2Healthcare and Family Services.
3    (b) Local Government Distributive Fund. Beginning August
41, 1969, and continuing through June 30, 1994, the Treasurer
5shall transfer each month from the General Revenue Fund to a
6special fund in the State treasury, to be known as the "Local
7Government Distributive Fund", an amount equal to 1/12 of the
8net revenue realized from the tax imposed by subsections (a)
9and (b) of Section 201 of this Act during the preceding month.
10Beginning July 1, 1994, and continuing through June 30, 1995,
11the Treasurer shall transfer each month from the General
12Revenue Fund to the Local Government Distributive Fund an
13amount equal to 1/11 of the net revenue realized from the tax
14imposed by subsections (a) and (b) of Section 201 of this Act
15during the preceding month. Beginning July 1, 1995 and
16continuing through January 31, 2011, the Treasurer shall
17transfer each month from the General Revenue Fund to the Local
18Government Distributive Fund an amount equal to the net of (i)
191/10 of the net revenue realized from the tax imposed by
20subsections (a) and (b) of Section 201 of the Illinois Income
21Tax Act during the preceding month (ii) minus, beginning July
221, 2003 and ending June 30, 2004, $6,666,666, and beginning
23July 1, 2004, zero. Beginning February 1, 2011, and continuing
24through January 31, 2015, the Treasurer shall transfer each
25month from the General Revenue Fund to the Local Government
26Distributive Fund an amount equal to the sum of (i) 6% (10% of

 

 

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1the ratio of the 3% individual income tax rate prior to 2011 to
2the 5% individual income tax rate after 2010) of the net
3revenue realized from the tax imposed by subsections (a) and
4(b) of Section 201 of this Act upon individuals, trusts, and
5estates during the preceding month and (ii) 6.86% (10% of the
6ratio of the 4.8% corporate income tax rate prior to 2011 to
7the 7% corporate income tax rate after 2010) of the net revenue
8realized from the tax imposed by subsections (a) and (b) of
9Section 201 of this Act upon corporations during the preceding
10month. Beginning February 1, 2015 and continuing through July
1131, 2017, the Treasurer shall transfer each month from the
12General Revenue Fund to the Local Government Distributive Fund
13an amount equal to the sum of (i) 8% (10% of the ratio of the 3%
14individual income tax rate prior to 2011 to the 3.75%
15individual income tax rate after 2014) of the net revenue
16realized from the tax imposed by subsections (a) and (b) of
17Section 201 of this Act upon individuals, trusts, and estates
18during the preceding month and (ii) 9.14% (10% of the ratio of
19the 4.8% corporate income tax rate prior to 2011 to the 5.25%
20corporate income tax rate after 2014) of the net revenue
21realized from the tax imposed by subsections (a) and (b) of
22Section 201 of this Act upon corporations during the preceding
23month. Beginning August 1, 2017, the Treasurer shall transfer
24each month from the General Revenue Fund to the Local
25Government Distributive Fund an amount equal to the sum of (i)
266.06% (10% of the ratio of the 3% individual income tax rate

 

 

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1prior to 2011 to the 4.95% individual income tax rate after
2July 1, 2017) of the net revenue realized from the tax imposed
3by subsections (a) and (b) of Section 201 of this Act upon
4individuals, trusts, and estates during the preceding month and
5(ii) 6.85% (10% of the ratio of the 4.8% corporate income tax
6rate prior to 2011 to the 7% corporate income tax rate after
7July 1, 2017) of the net revenue realized from the tax imposed
8by subsections (a) and (b) of Section 201 of this Act upon
9corporations during the preceding month. Net revenue realized
10for a month shall be defined as the revenue from the tax
11imposed by subsections (a) and (b) of Section 201 of this Act
12which is deposited in the General Revenue Fund, the Education
13Assistance Fund, the Income Tax Surcharge Local Government
14Distributive Fund, the Fund for the Advancement of Education,
15and the Commitment to Human Services Fund during the month
16minus the amount paid out of the General Revenue Fund in State
17warrants during that same month as refunds to taxpayers for
18overpayment of liability under the tax imposed by subsections
19(a) and (b) of Section 201 of this Act.
20    Notwithstanding any provision of law to the contrary,
21beginning on July 6, 2017 (the effective date of Public Act
22100-23), those amounts required under this subsection (b) to be
23transferred by the Treasurer into the Local Government
24Distributive Fund from the General Revenue Fund shall be
25directly deposited into the Local Government Distributive Fund
26as the revenue is realized from the tax imposed by subsections

 

 

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1(a) and (b) of Section 201 of this Act.
2    For State fiscal year 2018 only, notwithstanding any
3provision of law to the contrary, the total amount of revenue
4and deposits under this Section attributable to revenues
5realized during State fiscal year 2018 shall be reduced by 10%.
6    For State fiscal year 2019 only, notwithstanding any
7provision of law to the contrary, the total amount of revenue
8and deposits under this Section attributable to revenues
9realized during State fiscal year 2019 shall be reduced by 5%.
10    (b-5) Financially Distressed Cities Fund. The Department
11of Revenue shall certify to the Treasurer an amount equal to:
12        (1) the amount that would have been distributed under
13    subsection (a) of Section 2 of the State Revenue Sharing
14    Act to all financially distressed cities, as that term is
15    defined in Section 8-12-3 of the Illinois Municipal Code,
16    if the Treasurer had transferred under subsection (b) to
17    the Local Government Distributive Fund a sum calculated
18    using (i) 0.10% of the net revenue realized from the tax
19    imposed by subsections (a) and (b) of Section 201 of this
20    Act upon individuals, trusts, and estates during the
21    preceding month and (ii) 0.10% of the net revenue realized
22    from the tax imposed by subsections (a) and (b) of Section
23    201 of this Act upon corporations during the preceding
24    month; and
25        (2) subtracting from the amount calculated under
26    paragraph (1) the amount distributed to all financially

 

 

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1    distressed cities under subsection (a) of Section 2 of the
2    State Revenue Sharing Act during the current month.
3    Upon receipt of the certification, the Treasurer shall
4transfer from the General Revenue Fund to the Financially
5Distressed Cities Fund the amount shown on the certification.
6    (c) Deposits Into Income Tax Refund Fund.
7        (1) Beginning on January 1, 1989 and thereafter, the
8    Department shall deposit a percentage of the amounts
9    collected pursuant to subsections (a) and (b)(1), (2), and
10    (3) of Section 201 of this Act into a fund in the State
11    treasury known as the Income Tax Refund Fund. The
12    Department shall deposit 6% of such amounts during the
13    period beginning January 1, 1989 and ending on June 30,
14    1989. Beginning with State fiscal year 1990 and for each
15    fiscal year thereafter, the percentage deposited into the
16    Income Tax Refund Fund during a fiscal year shall be the
17    Annual Percentage. For fiscal years 1999 through 2001, the
18    Annual Percentage shall be 7.1%. For fiscal year 2003, the
19    Annual Percentage shall be 8%. For fiscal year 2004, the
20    Annual Percentage shall be 11.7%. Upon the effective date
21    of Public Act 93-839 (July 30, 2004), the Annual Percentage
22    shall be 10% for fiscal year 2005. For fiscal year 2006,
23    the Annual Percentage shall be 9.75%. For fiscal year 2007,
24    the Annual Percentage shall be 9.75%. For fiscal year 2008,
25    the Annual Percentage shall be 7.75%. For fiscal year 2009,
26    the Annual Percentage shall be 9.75%. For fiscal year 2010,

 

 

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

 

 

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1        (2) Beginning on January 1, 1989 and thereafter, the
2    Department shall deposit a percentage of the amounts
3    collected pursuant to subsections (a) and (b)(6), (7), and
4    (8), (c) and (d) of Section 201 of this Act into a fund in
5    the State treasury known as the Income Tax Refund Fund. The
6    Department shall deposit 18% of such amounts during the
7    period beginning January 1, 1989 and ending on June 30,
8    1989. Beginning with State fiscal year 1990 and for each
9    fiscal year thereafter, the percentage deposited into the
10    Income Tax Refund Fund during a fiscal year shall be the
11    Annual Percentage. For fiscal years 1999, 2000, and 2001,
12    the Annual Percentage shall be 19%. For fiscal year 2003,
13    the Annual Percentage shall be 27%. For fiscal year 2004,
14    the Annual Percentage shall be 32%. Upon the effective date
15    of Public Act 93-839 (July 30, 2004), the Annual Percentage
16    shall be 24% for fiscal year 2005. For fiscal year 2006,
17    the Annual Percentage shall be 20%. For fiscal year 2007,
18    the Annual Percentage shall be 17.5%. For fiscal year 2008,
19    the Annual Percentage shall be 15.5%. For fiscal year 2009,
20    the Annual Percentage shall be 17.5%. For fiscal year 2010,
21    the Annual Percentage shall be 17.5%. For fiscal year 2011,
22    the Annual Percentage shall be 17.5%. For fiscal year 2012,
23    the Annual Percentage shall be 17.5%. For fiscal year 2013,
24    the Annual Percentage shall be 14%. For fiscal year 2014,
25    the Annual Percentage shall be 13.4%. For fiscal year 2015,
26    the Annual Percentage shall be 14%. For fiscal year 2018,

 

 

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1    the Annual Percentage shall be 17.5%. For fiscal year 2019,
2    the Annual Percentage shall be 15.5%. For all other fiscal
3    years, the Annual Percentage shall be calculated as a
4    fraction, the numerator of which shall be the amount of
5    refunds approved for payment by the Department during the
6    preceding fiscal year as a result of overpayment of tax
7    liability under subsections (a) and (b)(6), (7), and (8),
8    (c) and (d) of Section 201 of this Act plus the amount of
9    such refunds remaining approved but unpaid at the end of
10    the preceding fiscal year, and the denominator of which
11    shall be the amounts which will be collected pursuant to
12    subsections (a) and (b)(6), (7), and (8), (c) and (d) of
13    Section 201 of this Act during the preceding fiscal year;
14    except that in State fiscal year 2002, the Annual
15    Percentage shall in no event exceed 23%. The Director of
16    Revenue shall certify the Annual Percentage to the
17    Comptroller on the last business day of the fiscal year
18    immediately preceding the fiscal year for which it is to be
19    effective.
20        (3) The Comptroller shall order transferred and the
21    Treasurer shall transfer from the Tobacco Settlement
22    Recovery Fund to the Income Tax Refund Fund (i) $35,000,000
23    in January, 2001, (ii) $35,000,000 in January, 2002, and
24    (iii) $35,000,000 in January, 2003.
25    (d) Expenditures from Income Tax Refund Fund.
26        (1) Beginning January 1, 1989, money in the Income Tax

 

 

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

 

 

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

 

 

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1deposits into the Income Tax Refund Fund, the Department shall
2deposit 7.3% into the Education Assistance Fund in the State
3Treasury. Beginning July 1, 1991, and continuing through
4January 31, 1993, of the amounts collected pursuant to
5subsections (a) and (b) of Section 201 of the Illinois Income
6Tax Act, minus deposits into the Income Tax Refund Fund, the
7Department shall deposit 3.0% into the Income Tax Surcharge
8Local Government Distributive Fund in the State Treasury.
9Beginning February 1, 1993 and continuing through June 30,
101993, of the amounts collected pursuant to subsections (a) and
11(b) of Section 201 of the Illinois Income Tax Act, minus
12deposits into the Income Tax Refund Fund, the Department shall
13deposit 4.4% into the Income Tax Surcharge Local Government
14Distributive Fund in the State Treasury. Beginning July 1,
151993, and continuing through June 30, 1994, of the amounts
16collected under subsections (a) and (b) of Section 201 of this
17Act, minus deposits into the Income Tax Refund Fund, the
18Department shall deposit 1.475% into the Income Tax Surcharge
19Local Government Distributive Fund in the State Treasury.
20    (f) Deposits into the Fund for the Advancement of
21Education. Beginning February 1, 2015, the Department shall
22deposit the following portions of the revenue realized from the
23tax imposed upon individuals, trusts, and estates by
24subsections (a) and (b) of Section 201 of this Act, minus
25deposits into the Income Tax Refund Fund, into the Fund for the
26Advancement of Education:

 

 

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

 

 

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1personnel at the Department, an amount equal to 1/12 of 5% of
2the cash receipts collected during the preceding fiscal year by
3the Audit Bureau of the Department from the tax imposed by
4subsections (a), (b), (c), and (d) of Section 201 of this Act,
5net of deposits into the Income Tax Refund Fund made from those
6cash receipts.
7(Source: P.A. 99-78, eff. 7-20-15; 100-22, eff. 7-6-17; 100-23,
8eff. 7-6-17; 100-587, eff. 6-4-18; 100-621, eff. 7-20-18;
9100-863, eff. 8-14-18; 100-1171, eff. 1-4-19; revised 1-8-19.)
 
10    Section 20. The Illinois Municipal Code is amended by
11changing Sections 8-12-3, 8-12-4, 8-12-10, 8-12-18, and
128-12-24 as follows:
 
13    (65 ILCS 5/8-12-3)  (from Ch. 24, par. 8-12-3)
14    Sec. 8-12-3. As used in this Division:
15    (1) "Authority" means the "(Name of Financially Distressed
16City) Financial Advisory Authority".
17    (2) "Financially distressed city" means any municipality
18which: is a home rule unit and which (i) is a home rule unit
19certified by the Department of Revenue as being in the highest
205% of all home rule municipalities in terms of the aggregate of
21the rate per cent of all taxes levied pursuant to statute or
22ordinance upon all taxable property of the municipality and as
23being in the lowest 5% of all home rule municipalities in terms
24of per capita tax yield, or is a non-home rule unit certified

 

 

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

 

 

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

 

 

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1financial accounting, budgeting and taxing procedures and
2practices, and, subject to the limitations of subsection (a) of
3Section 8-12-22, shall remain in full force and effect with
4respect thereto until such time as the financial advisory
5authority established under Section 8-12-5 is abolished as
6provided in subsection (c) of Section 8-12-22.
7(Source: P.A. 86-1211.)
 
8    (65 ILCS 5/8-12-10)  (from Ch. 24, par. 8-12-10)
9    Sec. 8-12-10. Any State agency or unit of local government,
10within its respective function, may render such services and
11technical assistance to the Authority as the Authority may
12request. Upon the Authority's request any such agency or unit
13of local government may transfer to the Authority such officers
14and employees as the Authority and any such agency or unit of
15local government deem necessary to carry out the Authority's
16functions and duties. Officers and employees so transferred
17shall not lose or forfeit their employment status or rights.
18(Source: P.A. 86-1211.)
 
19    (65 ILCS 5/8-12-18)  (from Ch. 24, par. 8-12-18)
20    Sec. 8-12-18. (a) The financially distressed city shall
21meet its debt service obligations as they become due. No other
22expenditure shall be made by the city unless it is consistent
23with the Financial Plan and Budget in effect. The State shall
24not reduce revenues or impose additional costs affecting the

 

 

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

 

 

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1    Section 99. Effective date. This Act takes effect January
21, 2020.

 

 

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1 INDEX
2 Statutes amended in order of appearance
3    30 ILCS 105/5.891 new
4    30 ILCS 115/2from Ch. 85, par. 612
5    35 ILCS 5/901from Ch. 120, par. 9-901
6    65 ILCS 5/8-12-3from Ch. 24, par. 8-12-3
7    65 ILCS 5/8-12-4from Ch. 24, par. 8-12-4
8    65 ILCS 5/8-12-10from Ch. 24, par. 8-12-10
9    65 ILCS 5/8-12-18from Ch. 24, par. 8-12-18
10    65 ILCS 5/8-12-24from Ch. 24, par. 8-12-24