Sen. Susan Garrett

Filed: 5/11/2004

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 976

2     AMENDMENT NO. ______. Amend House Bill 976 by replacing
3 everything after the enacting clause with the following:
 
4     "Section 5. The State Mandates Act is amended by changing
5 Sections 8 and 9.1 as follows:
 
6     (30 ILCS 805/8)  (from Ch. 85, par. 2208)
7     Sec. 8. Exclusions, reimbursement application, review,
8 appeals, and adjudication.
9     (a) Exclusions: Any of the following circumstances
10 inherent to, or associated with, a mandate shall exclude the
11 State from reimbursement liability under this Act. If the
12 mandate (1) accommodates a request from local governments or
13 organizations thereof; (2) imposes additional duties of a
14 nature which can be carried out by existing staff and
15 procedures at no appreciable net cost increase; (3) creates
16 additional costs but also provides offsetting savings
17 resulting in no aggregate increase in net costs; (4) imposes a
18 cost that is wholly or largely recovered from Federal, State or
19 other external financial aid; (5) imposes additional annual net
20 costs of less than $1,000 for each of the several local
21 governments affected or less than $50,000, in the aggregate,
22 for all local governments affected.
23     The failure of the General Assembly to make necessary
24 appropriations shall relieve the local government of the

 

 

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1 obligation to implement any service mandates, tax exemption
2 mandates, and personnel mandates, as specified in Section 6,
3 subsections (b), (c), (d) and (e), unless the exclusion
4 provided for in this Section are explicitly stated in the Act
5 establishing the mandate. In the event that funding is not
6 provided for a State-mandated program by the General Assembly,
7 the local government may implement or continue the program upon
8 approval of its governing body. If the local government
9 approves the program and funding is subsequently provided, the
10 State shall reimburse the local governments only for costs
11 incurred subsequent to the funding.
12     (b) Reimbursement Estimation and Appropriation Procedure.
13         (1) When a bill is introduced in the General Assembly,
14     the Legislative Reference Bureau, hereafter referred to as
15     the Bureau, shall determine whether such bill may require
16     reimbursement to local governments pursuant to this Act.
17     The Bureau shall make such determination known in the
18     Legislative Synopsis and Digest.
19         In making the determination required by this
20     subsection (b) the Bureau shall disregard any provision in
21     a bill which would make inoperative the reimbursement
22     requirements of Section 6 above, including an express
23     exclusion of the applicability of this Act, and shall make
24     the determination irrespective of any such provision.
25         (2) Any bill or amended bill which creates or expands a
26     State mandate shall be subject to the provisions of "An Act
27     requiring fiscal notes in relation to certain bills",
28     approved June 4, 1965, as amended. The fiscal notes for
29     such bills or amended bills shall include estimates of the
30     costs to local government and the costs of any
31     reimbursement required under this Act. In the case of bills
32     having a potential fiscal impact on units of local
33     government, the fiscal note shall be prepared by the
34     Department. In the case of bills having a potential fiscal

 

 

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

 

 

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1     supplemental appropriation bills.
2     (c) Reimbursement Application and Disbursement Procedure.
3         (1) For the initial fiscal year during which
4     reimbursement is authorized, each local government, or
5     more than one local government wishing to join in filing a
6     single claim, believing itself to be entitled to
7     reimbursement under this Act shall submit to the
8     Department, State Superintendent of Education or Illinois
9     Community College Board within 60 days of the effective
10     date of the mandate a claim for reimbursement accompanied
11     by its estimate of the increased costs required by the
12     mandate for the balance of the fiscal year. The Department,
13     State Superintendent of Education or Illinois Community
14     College Board shall review such claim and estimate and
15     shall determine within 90 days after receiving a claim
16     whether the claim is reimbursable or nonreimbursable as
17     provided for in this Act and shall notify each local
18     government that files a claim of its determination. Each
19     local government that files a claim shall assume its claim
20     is reimbursable if the Department, State Superintendent of
21     Education, or Illinois Community College Board fails to
22     notify each local government of its determination within 90
23     days after receiving a claim. The failure to notify each
24     local government shall relieve the local government of the
25     obligation to implement the mandate. The Department, State
26     Superintendent of Education, or Illinois Community College
27     Board , shall apportion the reimbursable claim into 3 equal
28     installments and shall direct the Comptroller to pay the
29     installments at equal intervals throughout the remainder
30     of the fiscal year from the funds appropriated for such
31     purposes, provided that the Department, State
32     Superintendent of Education or Illinois Community College
33     Board may (i) audit the records of any local government to
34     verify the actual amount of the mandated cost, and (ii)

 

 

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1     reduce any claim determined to be excessive or
2     unreasonable.
3         (2) For the subsequent fiscal years, local governments
4     shall submit claims as specified above on or before October
5     1 of each year. The Department, State Superintendent of
6     Education or Illinois Community College Board shall
7     apportion the claims into 3 equal installments and shall
8     direct the Comptroller to pay the first installment upon
9     approval of the claims, with subsequent installments to
10     follow on January 1 and March 1, such claims to be paid
11     from funds appropriated therefor, provided that the
12     Department, State Superintendent of Education or Illinois
13     Community College Board (i) may audit the records of any
14     local governments to verify the actual amount of the
15     mandated cost, (ii) may reduce any claim, determined to be
16     excessive or unreasonable, and (iii) shall adjust the
17     payment to correct for any underpayments or overpayments
18     which occurred in the previous fiscal year.
19         (3) Any funds received by a local government pursuant
20     to this Act may be used for any public purpose.
21         If the funds appropriated for reimbursement of the
22     costs of local government resulting from the creation or
23     expansion of a State mandate are less than the total of the
24     approved claims, the amount appropriated shall be prorated
25     among the local governments having approved claims.
26     (d) Appeals and Adjudication. (1) Local governments may
27 appeal determinations made by State agencies acting pursuant to
28 subsection (c) above. The appeal must be submitted to the State
29 Mandates Board of Review created by Section 9.1 of this Act
30 within 60 days following the date of receipt of the
31 determination being appealed. The appeal must include evidence
32 as to the extent to which the mandate has been carried out in
33 an effective manner and executed without recourse to standards
34 of staffing or expenditure higher than specified in the

 

 

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1 mandatory statute, if such standards are specified in the
2 statute. The State Mandates Board of Review, after reviewing
3 the evidence submitted to it, may increase or reduce the amount
4 of a reimbursement claim. The decision of the State Mandates
5 Board of Review shall be made within 90 days after receiving an
6 appeal and shall be final subject to judicial review. The State
7 Mandates Board of Review shall notify each local government
8 that files an appeal of its decision. The failure to notify
9 each local government of the decision within 90 days after
10 receiving an appeal shall relieve the local government of the
11 obligation to implement the mandate. However, if sufficient
12 funds have not been appropriated, the Department shall notify
13 the General Assembly of such cost, and appropriations for such
14 costs shall be included in a supplemental appropriation bill.
15 (2) A local government may also appeal directly to the State
16 Mandates Board of Review in those situations in which the
17 Department of Commerce and Community Affairs does not act upon
18 the local government's application for reimbursement or
19 request for mandate determination submitted under this Act. The
20 appeal must include evidence that the application for
21 reimbursement or request for mandate determination was
22 properly filed and should have been reviewed by the Department.
23 An appeal may be made to the Board if the Department does not
24 respond to a local government's application for reimbursement
25 or request for mandate determination within 120 days after
26 filing the application or request. In no case, however, may an
27 appeal be brought more than one year after the application or
28 request is filed with the Department.
29 (Source: P.A. 89-304, eff. 8-11-95; 89-626, eff. 8-9-96;
30 revised 12-6-03.)
 
31     (30 ILCS 805/9.1)  (from Ch. 85, par. 2209.1)
32     Sec. 9.1. State Mandates Board of Review. Beginning January
33 1, 1992 there shall be created the State Mandates Board of

 

 

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1 Review which shall consist of 5 members. The members of the
2 Board shall be appointed as follows: 2 members shall be
3 appointed by the State Comptroller and 3 members shall be
4 appointed by the Governor, all by and with the advice and
5 consent of the Senate. Members shall have experience in local
6 government finance and shall serve for terms of 2 years ending
7 on June 30 of odd numbered years. The members shall choose a
8 chairman at their first meeting. The members shall receive
9 reimbursement for expenses.
10     The Board shall hear appeals from local governments
11 pursuant to this Act. The Board shall, by rule, prescribe the
12 procedures for bringing appeals before it. The Board may apply
13 to the Legislative Audit Commission to direct the Auditor
14 General to audit the records of the local government to verify
15 the actual costs of the state-mandated programs. If, after
16 hearing the evidence, the Board approves any additional
17 reimbursement for such local government, the chairman of the
18 State Mandates Board of Review shall notify the agency
19 responsible for distributing those funds and that agency shall
20 direct the Comptroller to disburse such funds, subject to
21 available appropriation.
22     The Board shall issue an annual report to the General
23 Assembly which shall include a description of all appeals heard
24 by the Board and any recommendations made by the Board during
25 the preceding year.
26 (Source: P.A. 87-748.)
 
27     Section 99. Effective date. This Act takes effect upon
28 becoming law.".