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1    AN ACT concerning State government.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 1. Short title. This Act may be cited as the
5Financial Reporting Standards Board Act.
6    Section 5. Definitions. As used in this Act:
7    "Board" means the Financial Reporting Standards Board
8created under Section 10 of this Act.
9    "CAFR" means the Comprehensive Annual Financial Report
10required under Section 19.5 of the State Comptroller Act.
11    "Comptroller" means the Comptroller of the State of
13    "GAAP Coordinator" means a designated representative,
14employed by a State agency or component unit of the State, who
15is responsible for submission to the Office of the Comptroller
16all required documentation, as determined by the Office of the
17Comptroller, necessary for the preparation of the
18Comprehensive Annual Financial Report.
19    "Internal auditor" means an auditor employed by a State
20agency under the Fiscal Control and Internal Auditing Act.
21    "Licensed Certified Public Accountant" has the meaning
22provided in Section 0.03 of the Illinois Public Accounting Act.
23    "Registered Certified Public Accountant" has the meaning



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1provided in Section 0.03 of the Illinois Public Accounting Act.
2    "State agency" means all departments, officers,
3commissions, boards, authorities, institutions, universities,
4foundations, and bodies politic and corporate of the State that
5are required to submit financial reporting information to the
6Office of the Auditor General, the Office of the Comptroller,
7or the federal government. "State agency" does not include the
8legislative branch or judicial branch.
9    Section 10. Financial Reporting Standards Board; creation.
10    (a) There is created the Financial Reporting Standards
11Board. The Board shall assist the State in improving the
12timeliness, quality, and processing of financial reporting for
13the State.
14    (b) The Board shall consist of 3 members appointed by the
15Comptroller and 3 members appointed by the Governor, all with
16the advice and consent of the Senate.
17    (c) At least one member appointed by the Comptroller and at
18least one member appointed by the Governor shall be a licensed
19or registered Certified Public Accountant. Any member who is
20not a licensed or registered Certified Public Accountant shall
21have relevant experience in business, government accounting,
22or finance.
23    (d) Of the initial members appointed to the Board: one
24member appointed by the Comptroller and one member appointed by
25the Governor shall be appointed for a 2-year term; one member



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1appointed by the Comptroller and one member appointed by the
2Governor shall be appointed for a 3-year term; and one member
3appointed by the Comptroller and one member appointed by the
4Governor shall be appointed for a 4-year term. Those members
5may be reappointed for 4-year terms. Their successors shall be
6appointed for 4-year terms and may be reappointed. A vacancy on
7the Board shall be filled for the remainder of the unexpired
8term, in the same manner and by the same officer who made the
9original appointment.
10    (e) The Comptroller and the Governor shall each designate
11one of their appointed members as co-chairperson of the Board.
12    (f) The Board shall meet at least 2 times each year and at
13other times at the call of the chairpersons. Meetings of the
14Board shall be subject to the provisions of the Open Meetings
16    (g) The members of the Board shall serve without
17compensation, but may be reimbursed for expenses.
18    Section 15. Powers. The Board has the following powers:
19        (1) to have a corporate seal, and to alter that seal at
20    pleasure, and to use it by causing it or a facsimile to be
21    affixed or impressed or reproduced in any other manner;
22        (2) to use the services of the Office of the
23    Comptroller and the Office of the Governor to carry out the
24    Board's purposes, subject to the approval of the respective
25    office;



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1        (3) to assist State agencies with being timely and
2    accurate in the processing of financial reporting for the
3    State by:
4            (A) establishing minimum qualifications for all
5        new GAAP Coordinators, in cooperation with the
6        Comptroller's Division of Financial Reporting;
7            (B) establishing minimum training requirements for
8        GAAP Coordinators, in cooperation with the
9        Comptroller's Division of Financial Reporting;
10            (C) establishing continuing education requirements
11        for GAAP Coordinators, in cooperation with the
12        Comptroller's Division of Financial Reporting;
13            (D) establishing best practice guidelines for GAAP
14        package submissions, in cooperation with the
15        Comptroller's Division of Financial Reporting; and
16            (E) providing assistance during the GAAP cycle, in
17        cooperation with the Comptroller's Financial Reporting
18        Division and the Governor's Office of Management and
19        Budget;
20        (4) to make available to the Comptroller or Governor
21    any information related to the processing of financial
22    reports that the Board may deem necessary to enable it
23    effectively to carry out the provisions of this Act;
24        (5) to promulgate rules with respect to its operations
25    as may be necessary to carry out the purposes of this Act,
26    subject to the provisions of the Illinois Administrative



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1    Procedure Act;
2        (6) to consult with other states and private businesses
3    that have successfully modernized and streamlined their
4    financial reporting systems;
5        (7) to use current State resources that are already
6    available inside of State government, and to use current
7    financial reporting principles and practices, including,
8    but not limited to, principles and practices of the Auditor
9    General and the Comptroller; and
10        (8) to participate in the development of a statewide
11    GAAP-compliant financial reporting system.
12    Section 20. Audits.
13    (a) The Internal Auditor of every State agency that submits
14a GAAP package must submit an annual audit of its GAAP and
15financial statement process, if applicable, to the Board.
16    (b) The Board shall review all information submitted and
17may prepare a report for the Comptroller and the Governor.
18    Section 25. Responsibilities of other parties.
19    (a) The Comptroller's Division of Financial Reporting, in
20cooperation with the Governor's Office of Management and
21Budget, shall assist State agencies during the GAAP process and
22shall review GAAP packages and preparation of the CAFR.
23    (b) The Comptroller's Division of Financial Reporting and
24the Governor's Office of Management and Budget shall cooperate



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1with the Board in the following matters:
2        (1) the development of a GAAP training program for
3    State agencies;
4        (2) the development of continuing education for
5    employees of State agencies; and
6        (3) the development of detailed standards for GAAP
7    reporting by State agencies.
8    (c) State agencies must adhere to the Board's guidance in
9regards to GAAP package processing and maintaining minimum
10standards for qualifications, training, and education for GAAP
12    Section 30. Cooperation. All State agencies must render
13full cooperation to the Board and its employees, consistent
14with and subject to all otherwise applicable laws, regulations,
15rules and contractual obligations, including collective
16bargaining agreements, and budget constraints of the agencies.
17    Section 90. Repeal. This Act is repealed on June 30, 2016.
18    Section 100. The Personnel Code is amended by changing
19Section 4c as follows:
20    (20 ILCS 415/4c)  (from Ch. 127, par. 63b104c)
21    Sec. 4c. General exemptions. The following positions in
22State service shall be exempt from jurisdictions A, B, and C,



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1unless the jurisdictions shall be extended as provided in this
3        (1) All officers elected by the people.
4        (2) All positions under the Lieutenant Governor,
5    Secretary of State, State Treasurer, State Comptroller,
6    State Board of Education, Clerk of the Supreme Court,
7    Attorney General, and State Board of Elections.
8        (3) Judges, and officers and employees of the courts,
9    and notaries public.
10        (4) All officers and employees of the Illinois General
11    Assembly, all employees of legislative commissions, all
12    officers and employees of the Illinois Legislative
13    Reference Bureau, the Legislative Research Unit, and the
14    Legislative Printing Unit.
15        (5) All positions in the Illinois National Guard and
16    Illinois State Guard, paid from federal funds or positions
17    in the State Military Service filled by enlistment and paid
18    from State funds.
19        (6) All employees of the Governor at the executive
20    mansion and on his immediate personal staff.
21        (7) Directors of Departments, the Adjutant General,
22    the Assistant Adjutant General, the Director of the
23    Illinois Emergency Management Agency, members of boards
24    and commissions, and all other positions appointed by the
25    Governor by and with the consent of the Senate.
26        (8) The presidents, other principal administrative



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1    officers, and teaching, research and extension faculties
2    of Chicago State University, Eastern Illinois University,
3    Governors State University, Illinois State University,
4    Northeastern Illinois University, Northern Illinois
5    University, Western Illinois University, the Illinois
6    Community College Board, Southern Illinois University,
7    Illinois Board of Higher Education, University of
8    Illinois, State Universities Civil Service System,
9    University Retirement System of Illinois, and the
10    administrative officers and scientific and technical staff
11    of the Illinois State Museum.
12        (9) All other employees except the presidents, other
13    principal administrative officers, and teaching, research
14    and extension faculties of the universities under the
15    jurisdiction of the Board of Regents and the colleges and
16    universities under the jurisdiction of the Board of
17    Governors of State Colleges and Universities, Illinois
18    Community College Board, Southern Illinois University,
19    Illinois Board of Higher Education, Board of Governors of
20    State Colleges and Universities, the Board of Regents,
21    University of Illinois, State Universities Civil Service
22    System, University Retirement System of Illinois, so long
23    as these are subject to the provisions of the State
24    Universities Civil Service Act.
25        (10) The State Police so long as they are subject to
26    the merit provisions of the State Police Act.



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1        (11) (Blank).
2        (12) The technical and engineering staffs of the
3    Department of Transportation, the Department of Nuclear
4    Safety, the Pollution Control Board, and the Illinois
5    Commerce Commission, and the technical and engineering
6    staff providing architectural and engineering services in
7    the Department of Central Management Services.
8        (13) All employees of the Illinois State Toll Highway
9    Authority.
10        (14) The Secretary of the Illinois Workers'
11    Compensation Commission.
12        (15) All persons who are appointed or employed by the
13    Director of Insurance under authority of Section 202 of the
14    Illinois Insurance Code to assist the Director of Insurance
15    in discharging his responsibilities relating to the
16    rehabilitation, liquidation, conservation, and dissolution
17    of companies that are subject to the jurisdiction of the
18    Illinois Insurance Code.
19        (16) All employees of the St. Louis Metropolitan Area
20    Airport Authority.
21        (17) All investment officers employed by the Illinois
22    State Board of Investment.
23        (18) Employees of the Illinois Young Adult
24    Conservation Corps program, administered by the Illinois
25    Department of Natural Resources, authorized grantee under
26    Title VIII of the Comprehensive Employment and Training Act



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1    of 1973, 29 USC 993.
2        (19) Seasonal employees of the Department of
3    Agriculture for the operation of the Illinois State Fair
4    and the DuQuoin State Fair, no one person receiving more
5    than 29 days of such employment in any calendar year.
6        (20) All "temporary" employees hired under the
7    Department of Natural Resources' Illinois Conservation
8    Service, a youth employment program that hires young people
9    to work in State parks for a period of one year or less.
10        (21) All hearing officers of the Human Rights
11    Commission.
12        (22) All employees of the Illinois Mathematics and
13    Science Academy.
14        (23) All employees of the Kankakee River Valley Area
15    Airport Authority.
16        (24) The commissioners and employees of the Executive
17    Ethics Commission.
18        (25) The Executive Inspectors General, including
19    special Executive Inspectors General, and employees of
20    each Office of an Executive Inspector General.
21        (26) The commissioners and employees of the
22    Legislative Ethics Commission.
23        (27) The Legislative Inspector General, including
24    special Legislative Inspectors General, and employees of
25    the Office of the Legislative Inspector General.
26        (28) The Auditor General's Inspector General and



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1    employees of the Office of the Auditor General's Inspector
2    General.
3        (29) All employees of the Illinois Power Agency.
4        (30) Employees having demonstrable, defined advanced
5    skills in accounting, financial reporting, or technical
6    expertise who are employed within executive branch
7    agencies and whose duties are directly related to the
8    submission to the Office of the Comptroller of financial
9    information for the publication of the Comprehensive
10    Annual Financial Report (CAFR).
11(Source: P.A. 97-618, eff. 10-26-11.)
12    Section 999. Effective date. This Act takes effect upon
13becoming law.