SB0082 94TH GENERAL ASSEMBLY

LRB094 05319 BDD 35362 b

94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
SB0082

Introduced 1/26/2005, by Sen. Christine Radogno

SYNOPSIS AS INTRODUCED:

65 ILCS 5/8-8-4	from Ch. 24, par. 8-8-4
65 ILCS 5/8-8-8	from Ch. 24, par. 8-8-8
30 ILCS 805/8.29 new

Amends the Illinois Municipal Code. Requires a reporting municipality to comply with certain procedures and pay certain compensation to the Comptroller if a tax increment financing report is not filed within 6 months after the close of the fiscal year of the municipality. Provides that payment for the tax increment financing report shall be ordered by the corporate authorities of the municipality out of the municipality's tax increment financing funds, and prohibits a municipality from levying a tax to meet the costs of a tax increment financing report. Preempts home rule. Amends the State Mandates Act to require implementation without reimbursement by the State. Effective immediately.

FISCAL NOTE ACT MAY APPLY

HOME RULE NOTE ACT MAY APPLY

STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

A BILL FOR

AN ACT concerning municipalities.

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

Section 5. The Illinois Municipal Code is amended by changing Sections 8-8-4 and 8-8-8 as follows:

(65 ILCS 5/8-8-4) (from Ch. 24, par. 8-8-4)

Sec. 8-8-4. Overdue reports.

(a) In the event (i) the required audit report or annual or supplemental report for a municipality is not filed with the Comptroller in accordance with Section 8-8-3 or Section 8-8-7, as applicable, within 6 months after the close of the fiscal year of the municipality or (ii) the Tax Increment Financing Report for the municipality required under Section 8-8-3.5 is not filed with the Comptroller within the time required under Section 11-74.4-5 or 11-74.6-22, as applicable, the Comptroller shall notify the corporate authorities of that municipality in writing that the audit report is due, and may also grant an extension of time of 60 days, for the filing of the audit report. In the event a the required audit report is not filed within the time specified in such written notice, the Comptroller shall cause any necessary such audit to be made by an accountant or accountants. In the event the required annual or supplemental report for a municipality is not filed within 6 months after the close of the fiscal year of the municipality, the Comptroller shall notify the corporate authorities of that municipality in writing that the annual or supplemental report is due and may grant an extension in time of 60 days for the filing of such annual or supplemental report.

(b) In the event the annual or supplemental report or the Tax Increment Financing Report is not filed within the required time, including any extension extended by the Comptroller, the Comptroller shall cause such annual or supplemental report or the Tax Increment Financing Report to be prepared or completed and the municipality shall pay to the Comptroller reasonable compensation and expenses to reimburse the Comptroller him for the cost of preparing or completing such annual or supplemental report. Moneys paid to the Comptroller pursuant to the preceding sentence shall be deposited into the Comptroller's Audit Expense Revolving Fund.

(c) The Comptroller may decline to order an audit or the completion of a the supplemental report if an initial examination of the books and records of the municipality indicates that books and records of the municipality are inadequate or unavailable to support the preparation of the audit report or the supplemental report due to the passage of time or the occurrence of a natural disaster.

(Source: P.A. 90-104, eff. 7-11-97.)

(65 ILCS 5/8-8-8) (from Ch. 24, par. 8-8-8)

Sec. 8-8-8. Expenses of audit and investigation.

(a) The expenses of the audit and investigation of public accounts provided for in Division 8, whether ordered by the corporate authorities or the Comptroller, shall be paid by the municipality for which the audit is made. Except as otherwise provided in this Section, payment shall be ordered by the corporate authorities out of the funds of the municipality and it shall be the duty of such authorities to make provisions for payment. Contracts for the performance of audits required by this Division 8 may be entered into without competitive bidding. If the audit is made by an accountant or accountants retained by the Comptroller, the municipality shall pay to the Comptroller reasonable compensation and expenses to reimburse the Comptroller him for the cost of making such audit.

(b) Payment for expenses of the audit and investigation of public accounts for the preparation of a Tax Increment Financing Report under Section 8-8-3.5, whether the report is prepared by the corporate authorities or the Comptroller, shall be ordered by the corporate authorities out of the tax increment financing funds of the municipality, and it shall be the duty of the corporate authorities to make provisions for payment.

(c) The corporate authorities of all municipalities coming under the provisions of this Division 8 shall have the power to annually levy a "Municipal Auditing Tax" upon all of the taxable property of the municipalities at the rate on the dollar which will produce an amount which will equal a sum sufficient to meet the cost of all auditing and reports thereunder, except that no tax may be levied to meet the costs of Tax Increment Financing Reports. Such municipal auditing tax shall be held in a special fund and used for no other purpose than the payment of expenses occasioned by this Division 8.

(d) The tax authorized by this Section shall be in addition to taxes for general corporate purposes authorized under Section 8-3-1 of this Act.

(e) All municipalities, including home rule municipalities, must comply with the provisions of this amendatory Act of the 94th General Assembly. This Section is a denial and limitation of home rule powers and functions under subsection (g) of Section 6 of Article VII of the Illinois Constitution.

(Source: P.A. 81-824.)

Section 90. The State Mandates Act is amended by adding Section 8.29 as follows:

(30 ILCS 805/8.29 new)

Sec. 8.29. Exempt mandate. Notwithstanding Sections 6 and 8 of this Act, no reimbursement by the State is required for the implementation of any mandate created by this amendatory Act of the 94th General Assembly.

Section 99. Effective date. This Act takes effect upon becoming law.