97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB4599

 

Introduced 2/1/2012, by Rep. David Harris

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 230/2a  from Ch. 127, par. 172

    Amends the State Officers and Employees Money Disposition Act. Provides that any interest earnings that are attributable to moneys in the protest fund must be deposited into the protest fund. Provides that, for moneys paid to the State under protest on and after July 1, 2013, any authorized payment from the protest fund shall bear prorated interest based upon the average monthly investable balance from the date of deposit through the date of disbursement from the protest fund. Provides that, on and after July 1, 2013, when the party paying under protest fails in the protest action, any interest earned and retained within the protest fund shall be transferred into the General Revenue Fund.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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1    AN ACT concerning finance.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The State Officers and Employees Money
5Disposition Act is amended by changing Section 2a as follows:
 
6    (30 ILCS 230/2a)  (from Ch. 127, par. 172)
7    Sec. 2a. Every officer, board, commission, commissioner,
8department, institute, arm, or agency to whom or to which this
9Act applies is to notify the State Treasurer as to money paid
10to him, her, or it under protest as provided in Section 2a.1,
11and the Treasurer is to place the money in a special fund to be
12known as the protest fund. Beginning July 1, 2013, any interest
13earnings that are attributable to moneys in the fund must be
14deposited into the protest fund. At the expiration of 30 days
15from the date of payment, the money is to be transferred from
16the protest fund to the appropriate fund in which it would have
17been placed had there been payment without protest unless the
18party making that payment under protest has filed a complaint
19and secured within that 30 days a temporary restraining order
20or a preliminary injunction, restraining the making of that
21transfer and unless, in addition, within that 30 days, a copy
22of the temporary restraining order or preliminary injunction
23has been served upon the State Treasurer and also upon the

 

 

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1officer, board, commission, commissioner, department,
2institute, arm, or agency to whom or to which the payment under
3protest was made, in which case the payment and such other
4payments as are subsequently made under notice of protest, as
5provided in Section 2a.1, by the same person, the transfer of
6which payments is restrained by such temporary restraining
7order or preliminary injunction, are to be held in the protest
8fund until the final order or judgment of the court. The
9judicial remedy herein provided, however, relates only to
10questions which must be decided by the court in determining the
11proper disposition of the moneys paid under protest. For moneys
12paid under protest prior to July 1, 2013, any Any authorized
13payment from the protest fund prior to July 1, 2013 shall bear
14simple interest at a rate equal to the average of the weekly
15rates at issuance on 13-week U.S. Treasury Bills from the date
16of deposit into the protest fund to the date of disbursement
17from the protest fund or, if payment is authorized on or after
18July 1, 2013, shall bear simple interest at a rate equal to the
19average of the weekly rates at issuance on 13-week U.S.
20Treasury Bills from the date of deposit into the protest fund
21through June 30, 2013 and shall bear prorated interest based
22upon the average monthly investable balance for all dates
23occurring on July 1, 2013 and through the date of disbursement
24from the protest fund. For moneys paid under protest on July 1,
252013 and thereafter, any authorized payment from the protest
26fund shall bear prorated interest based upon the average

 

 

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1monthly investable balance from the date of deposit through the
2date of disbursement from the protest fund. In cases involving
3temporary restraining orders or preliminary injunctions
4entered March 10, 1982, or thereafter, pursuant to this
5Section, when the party paying under protest fails in the
6protest action the State Treasurer shall determine if any
7moneys paid under protest were paid as a result of assessments
8under the following provisions: the Municipal Retailers'
9Occupation Tax Act, the Municipal Service Occupation Tax Act,
10the Municipal Use Tax Act, the Municipal Automobile Renting
11Occupation Tax Act, the Municipal Automobile Renting Use Tax
12Act, Section 8-11-9 of the Illinois Municipal Code, the
13Tourism, Conventions and Other Special Events Promotion Act of
141967, the County Automobile Renting Occupation Tax Act, the
15County Automobile Renting Use Tax Act, Section 5-1034 of the
16Counties Code, Section 5.01 of the Local Mass Transit District
17Act, the Downstate Public Transportation Act, Section 4.03 of
18the Regional Transportation Authority Act, subsections (c) and
19(d) of Section 201 of the Illinois Income Tax Act, Section 2a.1
20of the Messages Tax Act, Section 2a.1 of the Gas Revenue Tax
21Act, Section 2a.1 of the Public Utilities Revenue Act, and the
22Water Company Invested Capital Tax Act. Any such moneys paid
23under protest through June 30, 2013 shall bear simple interest
24at a rate equal to the average of the weekly rates at issuance
25on 13-week U.S. Treasury Bills from the date of deposit into
26the protest fund to the date of disbursement from the protest

 

 

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1fund. On July 1, 2013 and thereafter, any such moneys paid
2under protest shall bear prorated interest based upon the
3average monthly investable balance from the date of deposit
4through the date of disbursement from the protest fund. On July
51, 2013 and thereafter, when the party paying under protest
6fails in the protest action, any interest earned and retained
7within the protest fund shall be transferred into the General
8Revenue Fund by the State Treasurer except for moneys paid
9under protest as a result of assessments under the following
10provisions: the Municipal Retailers' Occupation Tax Act, the
11Municipal Service Occupation Tax Act, the Municipal Use Tax
12Act, the Municipal Automobile Renting Occupation Tax Act, the
13Municipal Automobile Renting Use Tax Act, Section 8-11-9 of the
14Illinois Municipal Code, the Tourism, Conventions and Other
15Special Events Promotion Act of 1967, the County Automobile
16Renting Occupation Tax Act, the County Automobile Renting Use
17Tax Act, Section 5-1034 of the Counties Code, Section 5.01 of
18the Local Mass Transit District Act, the Downstate Public
19Transportation Act, Section 4.03 of the Regional
20Transportation Authority Act, subsections (c) and (d) of
21Section 201 of the Illinois Income Tax Act, Section 2a.1 of the
22Messages Tax Act, Section 2a.1 of the Gas Revenue Tax Act,
23Section 2a.1 of the Public Utilities Revenue Act, and the Water
24Company Invested Capital Tax Act.
25    It is unlawful for the Clerk of a court, a bank or any
26person other than the State Treasurer to be appointed as

 

 

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1trustee with respect to any purported payment under protest, or
2otherwise to be authorized by a court to hold any purported
3payment under protest, during the pendency of the litigation
4involving such purported payment under protest, it being the
5expressed intention of the General Assembly that no one is to
6act as custodian of any such purported payment under protest
7except the State Treasurer.
8    No payment under protest within the meaning of this Act has
9been made unless paid to an officer, board, commission,
10commissioner, department, institute, arm or agency brought
11within this Act by Section 1 and unless made in the form
12specified by Section 2a.1. No payment into court or to a
13circuit clerk or other court-appointed trustee is a payment
14under protest within the meaning of this Act.
15(Source: P.A. 87-950.)