101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB0875

 

Introduced , by Rep. William Davis

 

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 00192 AWJ 45193 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB0875LRB101 00192 AWJ 45193 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 (20
22ILCS 2505/2505-650) shall be paid into the Child Support
23Enforcement Trust Fund, a special fund outside the State
24Treasury, or to the State Disbursement Unit established under

 

 

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1Section 10-26 of the Illinois Public Aid Code, as directed by
2the Department of Healthcare 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) this amendatory Act of the 100th General Assembly,
23those amounts required under this subsection (b) to be
24transferred by the Treasurer into the Local Government
25Distributive Fund from the General Revenue Fund shall be
26directly deposited into the Local Government Distributive Fund

 

 

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

 

 

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1transfer from the General Revenue Fund to the Financially
2Distressed Cities Fund the amount shown on the certification.
3    (c) Deposits Into Income Tax Refund Fund.
4        (1) Beginning on January 1, 1989 and thereafter, the
5    Department shall deposit a percentage of the amounts
6    collected pursuant to subsections (a) and (b)(1), (2), and
7    (3), of Section 201 of this Act into a fund in the State
8    treasury known as the Income Tax Refund Fund. The
9    Department shall deposit 6% of such amounts during the
10    period beginning January 1, 1989 and ending on June 30,
11    1989. Beginning with State fiscal year 1990 and for each
12    fiscal year thereafter, the percentage deposited into the
13    Income Tax Refund Fund during a fiscal year shall be the
14    Annual Percentage. For fiscal years 1999 through 2001, the
15    Annual Percentage shall be 7.1%. For fiscal year 2003, the
16    Annual Percentage shall be 8%. For fiscal year 2004, the
17    Annual Percentage shall be 11.7%. Upon the effective date
18    of Public Act 93-839 (July 30, 2004) this amendatory Act of
19    the 93rd General Assembly, the Annual Percentage shall be
20    10% for fiscal year 2005. For fiscal year 2006, the Annual
21    Percentage shall be 9.75%. For fiscal year 2007, the Annual
22    Percentage shall be 9.75%. For fiscal year 2008, the Annual
23    Percentage shall be 7.75%. For fiscal year 2009, the Annual
24    Percentage shall be 9.75%. For fiscal year 2010, the Annual
25    Percentage shall be 9.75%. For fiscal year 2011, the Annual
26    Percentage shall be 8.75%. For fiscal year 2012, the Annual

 

 

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1    Percentage shall be 8.75%. For fiscal year 2013, the Annual
2    Percentage shall be 9.75%. For fiscal year 2014, the Annual
3    Percentage shall be 9.5%. For fiscal year 2015, the Annual
4    Percentage shall be 10%. For fiscal year 2018, the Annual
5    Percentage shall be 9.8%. For all other fiscal years, the
6    Annual Percentage shall be calculated as a fraction, the
7    numerator of which shall be the amount of refunds approved
8    for payment by the Department during the preceding fiscal
9    year as a result of overpayment of tax liability under
10    subsections (a) and (b)(1), (2), and (3) of Section 201 of
11    this Act plus the amount of such refunds remaining approved
12    but unpaid at the end of the preceding fiscal year, minus
13    the amounts transferred into the Income Tax Refund Fund
14    from the Tobacco Settlement Recovery Fund, and the
15    denominator of which shall be the amounts which will be
16    collected pursuant to subsections (a) and (b)(1), (2), and
17    (3) of Section 201 of this Act during the preceding fiscal
18    year; except that in State fiscal year 2002, the Annual
19    Percentage shall in no event exceed 7.6%. The Director of
20    Revenue shall certify the Annual Percentage to the
21    Comptroller on the last business day of the fiscal year
22    immediately preceding the fiscal year for which it is to be
23    effective.
24        (2) Beginning on January 1, 1989 and thereafter, the
25    Department shall deposit a percentage of the amounts
26    collected pursuant to subsections (a) and (b)(6), (7), and

 

 

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

 

 

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1    numerator of which shall be the amount of refunds approved
2    for payment by the Department during the preceding fiscal
3    year as a result of overpayment of tax liability under
4    subsections (a) and (b)(6), (7), and (8), (c) and (d) of
5    Section 201 of this Act plus the amount of such refunds
6    remaining approved but unpaid at the end of the preceding
7    fiscal year, and the denominator of which shall be the
8    amounts which will be collected pursuant to subsections (a)
9    and (b)(6), (7), and (8), (c) and (d) of Section 201 of
10    this Act during the preceding fiscal year; except that in
11    State fiscal year 2002, the Annual Percentage shall in no
12    event exceed 23%. The Director of Revenue shall certify the
13    Annual Percentage to the Comptroller on the last business
14    day of the fiscal year immediately preceding the fiscal
15    year for which it is to be effective.
16        (3) The Comptroller shall order transferred and the
17    Treasurer shall transfer from the Tobacco Settlement
18    Recovery Fund to the Income Tax Refund Fund (i) $35,000,000
19    in January, 2001, (ii) $35,000,000 in January, 2002, and
20    (iii) $35,000,000 in January, 2003.
21    (d) Expenditures from Income Tax Refund Fund.
22        (1) Beginning January 1, 1989, money in the Income Tax
23    Refund Fund shall be expended exclusively for the purpose
24    of paying refunds resulting from overpayment of tax
25    liability under Section 201 of this Act, for paying rebates
26    under Section 208.1 in the event that the amounts in the

 

 

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

 

 

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

 

 

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1deposit 7.3% into the Education Assistance Fund in the State
2Treasury. Beginning July 1, 1991, and continuing through
3January 31, 1993, of the amounts collected pursuant to
4subsections (a) and (b) of Section 201 of the Illinois Income
5Tax Act, minus deposits into the Income Tax Refund Fund, the
6Department shall deposit 3.0% into the Income Tax Surcharge
7Local Government Distributive Fund in the State Treasury.
8Beginning February 1, 1993 and continuing through June 30,
91993, of the amounts collected pursuant to subsections (a) and
10(b) of Section 201 of the Illinois Income Tax Act, minus
11deposits into the Income Tax Refund Fund, the Department shall
12deposit 4.4% into the Income Tax Surcharge Local Government
13Distributive Fund in the State Treasury. Beginning July 1,
141993, and continuing through June 30, 1994, of the amounts
15collected under subsections (a) and (b) of Section 201 of this
16Act, minus deposits into the Income Tax Refund Fund, the
17Department shall deposit 1.475% into the Income Tax Surcharge
18Local Government Distributive Fund in the State Treasury.
19    (f) Deposits into the Fund for the Advancement of
20Education. Beginning February 1, 2015, the Department shall
21deposit the following portions of the revenue realized from the
22tax imposed upon individuals, trusts, and estates by
23subsections (a) and (b) of Section 201 of this Act during the
24preceding month, minus deposits into the Income Tax Refund
25Fund, into the Fund for the Advancement of Education:
26        (1) beginning February 1, 2015, and prior to February

 

 

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1    1, 2025, 1/30; and
2        (2) beginning February 1, 2025, 1/26.
3    If the rate of tax imposed by subsection (a) and (b) of
4Section 201 is reduced pursuant to Section 201.5 of this Act,
5the Department shall not make the deposits required by this
6subsection (f) on or after the effective date of the reduction.
7    (g) Deposits into the Commitment to Human Services Fund.
8Beginning February 1, 2015, the Department shall deposit the
9following portions of the revenue realized from the tax imposed
10upon individuals, trusts, and estates by subsections (a) and
11(b) of Section 201 of this Act during the preceding month,
12minus deposits into the Income Tax Refund Fund, into the
13Commitment 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

 

 

HB0875- 18 -LRB101 00192 AWJ 45193 b

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; revised 8-3-17.)
 
9    Section 20. The Illinois Municipal Code is amended by
10changing Sections 8-12-3, 8-12-4, 8-12-10, 8-12-18, and
118-12-24 as follows:
 
12    (65 ILCS 5/8-12-3)  (from Ch. 24, par. 8-12-3)
13    Sec. 8-12-3. As used in this Division:
14    (1) "Authority" means the "(Name of Financially Distressed
15City) Financial Advisory Authority".
16    (2) "Financially distressed city" means any municipality
17which: is a home rule unit and which (i) is a home rule unit
18certified by the Department of Revenue as being in the highest
195% of all home rule municipalities in terms of the aggregate of
20the rate per cent of all taxes levied pursuant to statute or
21ordinance upon all taxable property of the municipality and as
22being in the lowest 5% of all home rule municipalities in terms
23of per capita tax yield, or is a non-home rule unit certified
24by the Department of Revenue as being in the highest 5% of all

 

 

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1non-home rule municipalities in terms of the aggregate of the
2rate per cent of all taxes levied pursuant to statute or
3ordinance upon all taxable property of the municipality and as
4being in the lowest 5% of all non-home rule municipalities in
5terms of per capita tax yield; and (ii) is designated by joint
6resolution of the General Assembly as a financially distressed
7city.
8    (3) "Home rule municipality" means a municipality which is
9a home rule unit as provided in Section 6 of Article VII of the
10Illinois Constitution.
11    (4) "Budget" means an annual appropriation ordinance or
12annual budget as described in Division 2 of Article 8, as from
13time to time in effect in the financially distressed city.
14    (5) "Chairperson" means the chairperson of the Authority
15appointed pursuant to Section 8-12-7.
16    (6) "Financial Plan" means the financially distressed
17city's financial plan as developed pursuant to Section 8-12-15,
18as from time to time in effect.
19    (7) "Fiscal year" means the fiscal year of the financially
20distressed city.
21    (8) "Obligations" means bonds, notes or other evidence of
22indebtedness issued by the Illinois Finance Authority in
23connection with the provision of financial aid to a financially
24distressed city pursuant to this Division and applicable
25provisions of the Illinois Finance Authority Act.
26(Source: P.A. 93-205, eff. 1-1-04.)
 

 

 

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

 

 

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

 

 

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1in effect.
2    (b) State mandates enacted while a city is designated as a
3financially distressed city that would cause the city to incur
4additional costs are not valid or enforceable against the city
5during the period when the city is under the financially
6distressed city designation.
7(Source: P.A. 86-1211.)
 
8    (65 ILCS 5/8-12-24)  (from Ch. 24, par. 8-12-24)
9    Sec. 8-12-24. A city home rule unit which is a financially
10distressed city to which this Division is applicable as
11provided in Section 8-12-4 may not employ financial or fiscal
12accounting or budgetary procedures or systems, nor place into
13effect any Financial Plan or Budget, nor enter into any
14contract or make any expenditure, nor otherwise conduct its
15financial and fiscal affairs or take other action in a manner
16inconsistent with the provisions of this Division, until such
17time as the powers and responsibilities of the Authority are
18terminated as provided in Section 8-12-22. This Section is a
19limitation under subsection (i) of Section 6 of Article VII of
20the Illinois Constitution on the concurrent exercise by home
21rule units which are financially distressed cities to which
22this Division is applicable as provided in Section 8-12-4 of
23powers and functions exercised by the State.
24(Source: P.A. 86-1211.)
 
25    Section 99. Effective date. This Act takes effect January

 

 

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11, 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