Full Text of SB0036 97th General Assembly
SB0036sam001 97TH GENERAL ASSEMBLY | Sen. Matt Murphy Filed: 3/10/2011
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| 1 | | AMENDMENT TO SENATE BILL 36
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 36 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 1. Short title. This Act may be cited as the | 5 | | Pension Funding and Fairness Act. | 6 | | Section 5. Definitions. As used in this Act: | 7 | | "Monthly pro rata pension payment" means the average | 8 | | monthly pension payment calculated by dividing the total fiscal | 9 | | year annual pension payment by 12 months. | 10 | | "Pension payment" means the total annual required pension | 11 | | payment for each fiscal year as defined by the Commission on | 12 | | Government Forecasting and Accountability following generally | 13 | | accepted accounting principles. | 14 | | "Revenue" means taxes and fees collected by the State. | 15 | | "State general funds" has the meaning ascribed to that term | 16 | | in Section 201.5 of the Illinois Income Tax Act. |
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| 1 | | "State spending" has the meaning ascribed to that term in | 2 | | Section 201.5 of the Illinois Income Tax Act. | 3 | | "Tax" means any amount raised for the general support of | 4 | | government functions. | 5 | | Section 30. Past Due Paydown Fund. The Past Due Paydown | 6 | | Fund is established as a special fund in the State treasury and | 7 | | must be administered for the purposes identified in this | 8 | | Section.
At the close of the lapse period of each fiscal year, | 9 | | the State Comptroller shall identify the amount of State | 10 | | general funds unappropriated surplus above the State spending | 11 | | limitation set forth in Section 201.5 of the Illinois Income | 12 | | Tax Act and transfer to the Past Due Paydown Fund any amount | 13 | | necessary up to the total past due operating debt owed by the | 14 | | State as of the close of that fiscal year.
| 15 | | The General Assembly may authorize transfers, | 16 | | appropriations, and allocations from the Fund only to fund the | 17 | | costs of paying down the remaining past due debt until that | 18 | | debt is zero. Any remaining funds shall be transferred to the | 19 | | State Budget Stabilization Fund. | 20 | | Section 35. State Budget Stabilization Fund. The State | 21 | | Budget Stabilization Fund is established as a special fund in | 22 | | the State treasury and must be administered for the purposes | 23 | | identified in this Section.
At the close of the lapse period of | 24 | | each fiscal year, the State Comptroller shall identify the |
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| 1 | | amount of State general funds unappropriated surplus above the | 2 | | State spending limitation set forth in Section 201.5 of the | 3 | | Illinois Income Tax Act and above the amount necessary to fully | 4 | | fund and pay down the past due operating debt to zero. The Fund | 5 | | may not exceed 8% of the total State general funds revenues | 6 | | received in the immediately preceding fiscal year. | 7 | | The General Assembly may authorize transfers, | 8 | | appropriations, and allocations from the Fund to fund only the | 9 | | costs of State government up to the expenditure limit | 10 | | calculated under Section 10 in years when State revenues are | 11 | | less than the amount necessary to finance the level of | 12 | | expenditures permitted under Section 10. Transfers require a | 13 | | three-fifths supermajority vote of the General Assembly. | 14 | | The money in the fund may be invested as provided by law, | 15 | | with the earnings credited to the Fund. At the close of every | 16 | | month during which the Fund is at the 8% limitation, the State | 17 | | Comptroller shall transfer the excess to the Taxpayer Relief | 18 | | Fund. | 19 | | Section 40. Taxpayer Relief Fund. The Taxpayer Relief Fund | 20 | | is established as a special fund in the State treasury and must | 21 | | be administered for the purposes identified in this Section. At | 22 | | the close of the lapse period of each fiscal year, the State | 23 | | Comptroller shall identify the amount of the State general | 24 | | funds unappropriated surplus above the State spending | 25 | | limitation set forth in Section 201.5 of the Illinois Income |
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| 1 | | Tax Act and above the amount necessary to fully fund the Past | 2 | | Due Paydown Fund and the Budget Stabilization Fund. | 3 | | By August 1st annually, the State Comptroller shall notify | 4 | | the Commission on Government Forecasting and Accountability | 5 | | and the Department of Revenue of the amount in the Fund as a | 6 | | result of the transfers. | 7 | | If the amount in the Fund exceeds 1% of State general funds | 8 | | expenditures, then the General Assembly shall, by November | 9 | | 15th, enact legislation to provide for the refund to taxpayers | 10 | | of amounts in the Fund. Refunds may take the form only of | 11 | | temporary or permanent broad-based tax rate reductions. | 12 | | If the General Assembly does not enact legislation by | 13 | | November 15th to provide refunds, then the State Comptroller | 14 | | shall, by November 30th, notify the Department of Revenue of | 15 | | the amount in the Fund. The Department of Revenue shall | 16 | | calculate a one-time bonus personal exemption refund. The | 17 | | amount of the personal exemption refund must be calculated by | 18 | | dividing the amount in the Fund identified by the State | 19 | | Comptroller by the number of personal exemptions claimed on | 20 | | income tax returns filed for the tax year beginning in the | 21 | | previous calendar year. The Department of Revenue shall issue a | 22 | | refund by December 30th to a taxpayer who filed an income tax | 23 | | return by April 15th of the same calendar year based on the | 24 | | number of exemptions claimed (times refund per exemption) on | 25 | | the taxpayer's return without regard to the taxpayer's tax | 26 | | liability for the year. |
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| 1 | | Section 45. Pension payments. | 2 | | (a) Notwithstanding any other law, beginning with fiscal | 3 | | year 2012 and for each fiscal year thereafter, the General | 4 | | Assembly's first appropriation each year, after transfers for | 5 | | debt service, must be directed to make the full annual pension | 6 | | payment defined by the Commission on Government Forecasting and | 7 | | Accountability, acting in compliance with generally accepted | 8 | | accounting principles. This appropriation must be made first, | 9 | | and executing it (making the actual payments required by it) | 10 | | shall take precedence over any other appropriation or | 11 | | expenditure. | 12 | | Exceptions may be made to the pension payment requirement | 13 | | in this subsection (a) if authorized by a law approved by a | 14 | | three-fifths vote of each chamber of the General Assembly and | 15 | | approved by the Governor. Any exceptions made by the General | 16 | | Assembly shall specify the dollar amount and purposes of | 17 | | appropriations that shall be made prior to the pension payment. | 18 | | (b) By March 1 of each year, the State Comptroller shall | 19 | | take the total annually required pension payment for the | 20 | | upcoming fiscal year (beginning on July 1) and divide that | 21 | | number by 12. This amount becomes the monthly pro rata pension | 22 | | payment for each month of the upcoming fiscal year. | 23 | | If, during the fiscal year, the Commission on Government | 24 | | Forecasting and Accountability adjusts the annually required | 25 | | pension payment for the current year upward, the State |
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| 1 | | Comptroller shall recalculate the monthly pro rata pension | 2 | | payment upward accordingly and allocate the increase evenly | 3 | | over the remaining months to ensure that the full annual | 4 | | pension payment is made for the fiscal year. | 5 | | If, during the fiscal year, the Commission on Government | 6 | | Forecasting and Accountability adjusts the annually required | 7 | | pension payment downward, the original payment schedule shall | 8 | | be maintained. Payments in excess of the revised payment | 9 | | schedule shall be allocated to any existing unfunded pension | 10 | | liability. | 11 | | If, during the fiscal year, the Commission on Government | 12 | | Forecasting and Accountability adjusts the annually required | 13 | | pension payment downward, and if there is no remaining unfunded | 14 | | pension liability as calculated by the Commission on Government | 15 | | Forecasting and Accountability in compliance with generally | 16 | | accepted accounting principles, then the State Comptroller | 17 | | shall recalculate the monthly pro rata pension payment downward | 18 | | accordingly and allocate the reduction evenly over the | 19 | | remaining months to ensure that the full annual pension payment | 20 | | is made for the fiscal year. | 21 | | By no later than the 5th of each month, the Comptroller | 22 | | shall disburse funds as authorized by the pension payment | 23 | | appropriation to the various State retirement systems so that | 24 | | the total payment equals the monthly pro rata pension payment. | 25 | | The payments shall be allocated proportionally to each | 26 | | retirement fund as calculated by the Commission on Government |
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| 1 | | Forecasting and Accountability. | 2 | | There shall be no exceptions to this subsection (b) except | 3 | | as authorized by a law approved by a three-fifths vote of each | 4 | | chamber of the General Assembly and approved by the Governor. | 5 | | (c) If for any reason the monthly pro rata pension payment | 6 | | is not made by the 5th of the month, or if for any reason the | 7 | | accumulated payments for the year do not equal the sum of the | 8 | | monthly pro rata pension payments for the months having passed | 9 | | during the fiscal year, then the State Comptroller shall cease | 10 | | all payments from State resources until such time as the | 11 | | pension payment is brought current for the year. | 12 | | There shall be no exceptions to this subsection (c) except | 13 | | as authorized by a law approved by a three-fifths vote of each | 14 | | chamber of the legislature and approved by the Governor.
| 15 | | Section 90. The State Finance Act is amended by adding | 16 | | Sections 5.786, 5.787, and 5.788 as follows: | 17 | | (30 ILCS 105/5.786 new) | 18 | | Sec. 5.786. The Past Due Paydown Fund. | 19 | | (30 ILCS 105/5.787 new) | 20 | | Sec. 5.787. The State Budget Stabilization Fund. | 21 | | (30 ILCS 105/5.788 new) | 22 | | Sec. 5.788. The Taxpayer Relief Fund. |
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| 1 | | Section 95. The Illinois Income Tax Act is amended by | 2 | | changing Section 201.5 as follows: | 3 | | (35 ILCS 5/201.5) | 4 | | Sec. 201.5. State spending limitation and tax reduction. | 5 | | (a) If, beginning in State fiscal year 2012 and continuing | 6 | | through State fiscal year 2015 , State spending for any fiscal | 7 | | year exceeds the State spending limitation set forth in | 8 | | subsection (b) of this Section, then the tax rates set forth in | 9 | | subsection (b) of Section 201 of this Act shall be reduced, | 10 | | according to the procedures set forth in this Section, to 3% of | 11 | | the taxpayer's net income for individuals, trusts, and estates | 12 | | and to 4.8% of the taxpayer's net income for corporations. For | 13 | | all taxable years following the taxable year in which the rate | 14 | | has been reduced pursuant to this Section, the tax rate set | 15 | | forth in subsection (b) of Section 201 of this Act shall be 3% | 16 | | of the taxpayer's net income for individuals, trusts, and | 17 | | estates and 4.8% of the taxpayer's net income for corporations. | 18 | | (b) The State spending limitation is for fiscal years 2012 | 19 | | through 2015 shall be as follows: (i) for fiscal year 2012, | 20 | | $28,998,000,000 $36,818,000,000 ; (ii) for fiscal year 2013 and | 21 | | thereafter, 1.5% above the previous fiscal year's State | 22 | | spending limitation , $37,554,000,000; (iii) for fiscal year | 23 | | 2014, $38,305,000,000; and (iv) for fiscal year 2015, | 24 | | $39,072,000,000 . |
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| 1 | | (c) Nothwithstanding any other provision of law to the | 2 | | contrary, the Auditor General shall examine each Public Act | 3 | | authorizing State spending from State general funds and prepare | 4 | | a report no later than 30 days after receiving notification of | 5 | | the Public Act from the Secretary of State or 60 days after the | 6 | | effective date of the Public Act, whichever is earlier. The | 7 | | Auditor General shall file the report with the Secretary of | 8 | | State and copies with the Governor, the State Treasurer, the | 9 | | State Comptroller, the Senate, and the House of | 10 | | Representatives. The report shall indicate: (i) the amount of | 11 | | State spending set forth in the applicable Public Act; (ii) the | 12 | | total amount of State spending authorized by law for the | 13 | | applicable fiscal year as of the date of the report; and (iii) | 14 | | whether State spending exceeds the State spending limitation | 15 | | set forth in subsection (b). The Auditor General may examine | 16 | | multiple Public Acts in one consolidated report, provided that | 17 | | each Public Act is examined within the time period mandated by | 18 | | this subsection (c). The Auditor General shall issue reports in | 19 | | accordance with this Section through June 30, 2015 or the | 20 | | effective date of a reduction in the rate of tax imposed by | 21 | | subsections (a) and (b) of Section 201 of this Act pursuant to | 22 | | this Section, whichever is earlier. | 23 | | At the request of the Auditor General, each State agency | 24 | | shall, without delay, make available to the Auditor General or | 25 | | his or her designated representative any record or information | 26 | | requested and shall provide for examination or copying all |
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| 1 | | records, accounts, papers, reports, vouchers, correspondence, | 2 | | books and other documentation in the custody of that agency, | 3 | | including information stored in electronic data processing | 4 | | systems, which is related to or within the scope of a report | 5 | | prepared under this Section. The Auditor General shall report | 6 | | to the Governor each instance in which a State agency fails to | 7 | | cooperate promptly and fully with his or her office as required | 8 | | by this Section. | 9 | | The Auditor General's report shall not be in the nature of | 10 | | a post-audit or examination and shall not lead to the issuance | 11 | | of an opinion as that term is defined in generally accepted | 12 | | government auditing standards. | 13 | | (d) If the Auditor General reports that State spending has | 14 | | exceeded the State spending limitation set forth in subsection | 15 | | (b) and if the Governor has not been presented with a bill or | 16 | | bills passed by the General Assembly to reduce State spending | 17 | | to a level that does not exceed the State spending limitation | 18 | | within 45 calendar days of receipt of the Auditor General's | 19 | | report, then the Governor may, for the purpose of reducing | 20 | | State spending to a level that does not exceed the State | 21 | | spending limitation set forth in subsection (b), designate | 22 | | amounts to be set aside as a reserve from the amounts | 23 | | appropriated from the State general funds for all boards, | 24 | | commissions, agencies, institutions, authorities, colleges, | 25 | | universities, and bodies politic and corporate of the State, | 26 | | but not other constitutional officers, the legislative or |
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| 1 | | judicial branch, the office of the Executive Inspector General, | 2 | | or the Executive Ethics Commission. Such a designation must be | 3 | | made within 15 calendar days after the end of that 45-day | 4 | | period. If the Governor designates amounts to be set aside as a | 5 | | reserve, the Governor shall give notice of the designation to | 6 | | the Auditor General, the State Treasurer, the State | 7 | | Comptroller, the Senate, and the House of Representatives. The | 8 | | amounts placed in reserves shall not be transferred, obligated, | 9 | | encumbered, expended, or otherwise committed unless so | 10 | | authorized by law. Any amount placed in reserves is not State | 11 | | spending and shall not be considered when calculating the total | 12 | | amount of State spending. Any Public Act authorizing the use of | 13 | | amounts placed in reserve by the Governor is considered State | 14 | | spending, unless such Public Act authorizes the use of amounts | 15 | | placed in reserves in response to a fiscal emergency under | 16 | | subsection (g). | 17 | | (e) If the Auditor General reports under subsection (c) | 18 | | that State spending has exceeded the State spending limitation | 19 | | set forth in subsection (b), then the Auditor General shall | 20 | | issue a supplemental report no sooner than the 61st day and no | 21 | | later than the 65th day after issuing the report pursuant to | 22 | | subsection (c). The supplemental report shall: (i) summarize | 23 | | details of actions taken by the General Assembly and the | 24 | | Governor after the issuance of the initial report to reduce | 25 | | State spending, if any, (ii) indicate whether the level of | 26 | | State spending has changed since the initial report, and (iii) |
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| 1 | | indicate whether State spending exceeds the State spending | 2 | | limitation. The Auditor General shall file the report with the | 3 | | Secretary of State and copies with the Governor, the State | 4 | | Treasurer, the State Comptroller, the Senate, and the House of | 5 | | Representatives. If the supplemental report of the Auditor | 6 | | General provides that State spending exceeds the State spending | 7 | | limitation, then the rate of tax imposed by subsections (a) and | 8 | | (b) of Section 201 is reduced as provided in this Section | 9 | | beginning on the first day of the first month to occur not less | 10 | | than 30 days after issuance of the supplemental report. | 11 | | (f) For any taxable year in which the rates of tax have | 12 | | been reduced under this Section, the tax imposed by subsections | 13 | | (a) and (b) of Section 201 shall be determined as follows: | 14 | | (1) In the case of an individual, trust, or estate, the | 15 | | tax shall be imposed in an amount equal to the sum of (i) | 16 | | the rate applicable to the taxpayer under subsection (b) of | 17 | | Section 201 (without regard to the provisions of this | 18 | | Section) times the taxpayer's net income for any portion of | 19 | | the taxable year prior to the effective date of the | 20 | | reduction and (ii) 3% of the taxpayer's net income for any | 21 | | portion of the taxable year on or after the effective date | 22 | | of the reduction. | 23 | | (2) In the case of a corporation, the tax shall be | 24 | | imposed in an amount equal to the sum of (i) the rate | 25 | | applicable to the taxpayer under subsection (b) of Section | 26 | | 201 (without regard to the provisions of this Section) |
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| 1 | | times the taxpayer's net income for any portion of the | 2 | | taxable year prior to the effective date of the reduction | 3 | | and (ii) 4.8% of the taxpayer's net income for any portion | 4 | | of the taxable year on or after the effective date of the | 5 | | reduction. | 6 | | (3) For any taxpayer for whom the rate has been reduced | 7 | | under this Section for a portion of a taxable year, the | 8 | | taxpayer shall determine the net income for each portion of | 9 | | the taxable year following the rules set forth in Section | 10 | | 202.5 of this Act, using the effective date of the rate | 11 | | reduction rather than the January 1 dates found in that | 12 | | Section, and the day before the effective date of the rate | 13 | | reduction rather than the December 31 dates found in that | 14 | | Section. | 15 | | (4) If the rate applicable to the taxpayer under | 16 | | subsection (b) of Section 201 (without regard to the | 17 | | provisions of this Section) changes during a portion of the | 18 | | taxable year to which that rate is applied under paragraphs | 19 | | (1) or (2) of this subsection (f), the tax for that portion | 20 | | of the taxable year for purposes of paragraph (1) or (2) of | 21 | | this subsection (f) shall be determined as if that portion | 22 | | of the taxable year were a separate taxable year, following | 23 | | the rules set forth in Section 202.5 of this Act. If the | 24 | | taxpayer elects to follow the rules set forth in subsection | 25 | | (b) of Section 202.5, the taxpayer shall follow the rules | 26 | | set forth in subsection (b) of Section 202.5 for all |
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| 1 | | purposes of this Section for that taxable year. | 2 | | (g) Notwithstanding the State spending limitation set | 3 | | forth in subsection (b) of this Section, the Governor may | 4 | | declare a fiscal emergency by filing a declaration with the | 5 | | Secretary of State and copies with the State Treasurer, the | 6 | | State Comptroller, the Senate, and the House of | 7 | | Representatives. The declaration must be limited to only one | 8 | | State fiscal year, set forth compelling reasons for declaring a | 9 | | fiscal emergency, and request a specific dollar amount. Unless, | 10 | | within 10 calendar days of receipt of the Governor's | 11 | | declaration, the State Comptroller or State Treasurer notifies | 12 | | the Senate and the House of Representatives that he or she does | 13 | | not concur in the Governor's declaration, State spending | 14 | | authorized by law to address the fiscal emergency in an amount | 15 | | no greater than the dollar amount specified in the declaration | 16 | | shall not be considered "State spending" for purposes of the | 17 | | State spending limitation. | 18 | | (h) As used in this Section: | 19 | | "State general funds" means the General Revenue Fund, the | 20 | | Common School Fund, the General Revenue Common School Special | 21 | | Account Fund, the Education Assistance Fund, and the Budget | 22 | | Stabilization Fund. | 23 | | "State spending" means (i) the total amount authorized for | 24 | | spending by appropriation or statutory transfer from the State | 25 | | general funds in the applicable fiscal year, and (ii) any | 26 | | amounts the Governor places in reserves in accordance with |
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| 1 | | subsection (d) that are subsequently released from reserves | 2 | | following authorization by a Public Act. For the purpose of | 3 | | this definition, "appropriation" means authority to spend | 4 | | money from a State general fund for a specific amount, purpose, | 5 | | and time period, including any supplemental appropriation or | 6 | | continuing appropriation, including but does not include | 7 | | reappropriations from a previous fiscal year. For the purpose | 8 | | of this definition, "statutory transfer" means authority to | 9 | | transfer funds from one State general fund to any other fund in | 10 | | the State treasury, but does not include transfers made from | 11 | | one State general fund to another State general fund. | 12 | | "State spending limitation" means the amount described in | 13 | | subsection (b) of this Section for the applicable fiscal year.
| 14 | | (Source: P.A. 96-1496, eff. 1-13-11.)
| 15 | | Section 99. Effective date. This Act takes effect upon | 16 | | becoming law.".
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