Bill Text: IL HB0005 | 2021-2022 | 102nd General Assembly | Introduced

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Bill Title: Amends the State Mandates Act. Provides that any State mandate regarding any subject matter enacted on or after the effective date of this amendatory Act that necessitates additional expenditures from local government revenues shall be void and unenforceable unless the General Assembly makes necessary appropriations to implement that mandate. Provides that the failure of the General Assembly to make necessary appropriations shall relieve the local government of the obligation to implement any State mandate. Makes conforming changes. Effective immediately.

Spectrum: Moderate Partisan Bill (Republican 8-2)

Status: (Introduced - Dead) 2022-02-18 - Rule 19(a) / Re-referred to Rules Committee [HB0005 Detail]

Download: Illinois-2021-HB0005-Introduced.html

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102ND GENERAL ASSEMBLY State of Illinois 2021 and 2022 HB0005 Introduced , by Rep. Anthony DeLuca SYNOPSIS AS INTRODUCED:
30 ILCS 805/6 from Ch. 85, par. 2206
30 ILCS 805/8 from Ch. 85, par. 2208
30 ILCS 805/9.2 new
Amends the State Mandates Act. Provides that any State mandate regarding any subject matter enacted on or after the effective date of this amendatory Act that necessitates additional expenditures from local government revenues shall be void and unenforceable unless the General Assembly makes necessary appropriations to implement that mandate. Provides that the failure of the General Assembly to make necessary appropriations shall relieve the local government of the obligation to implement any State mandate. Makes conforming changes. Effective immediately.
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A BILL FOR
HB0005 LRB102 02579 RJF 12581 b
AN ACT concerning finance.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The State Mandates Act is amended by changing
Sections 6 and 8 and by adding Section 9.2 as follows:
(30 ILCS 805/6) (from Ch. 85, par. 2206)
Sec. 6. State Reimbursement to Local Government For
Increased Costs Arising From Certain Mandates. (a) Any
increased costs accruing to local governments as a direct
result of mandates dealing with the organization and structure
of local government or due process mandates, as defined in
subsections (c) and (d), respectively, of Section 3 above, are
not reimbursable by the State.
(b) At least 50%, but not more than 100% of the increase in
costs of a local government directly attributable to a service
mandate as defined in subsection (f) of Section 3 enacted by
the General Assembly or established administratively after the
effective date of this Act shall be reimbursed by the State
unless there is in existence at the time of such enactment a
program of State aid for the service affected by the mandate
whereunder the non-local share for any participating local
government is 50% or greater and where the increased costs
arising under the mandate constitute allowable expenditures

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under the aid program. Where all or part of the increased costs
are met through federal or other external aid, only the net
increase to the local government shall be included in the base
against which the amount of State reimbursement is to be
computed.
(c) 100% of the loss in revenue of a local government
directly attributable to a mandated classification or
exemption of property for purposes of ad valorem real property
taxation enacted after the effective date of this Act shall be
reimbursed by the State. The loss of revenue does not include
potential revenue from property of a type which was not being
assessed and taxed on January 1, 1980.
(d) Except for a State mandate that affects personnel
qualifications for local employees, the salaries and wages of
which are financed under a State program, and except as
provided in subsection (e) below, any personnel mandate as
defined in subsection (h) of Section 3 above enacted by the
General Assembly or established administratively after the
effective date of this Act shall be reimbursed by the State to
the extent of increased costs incurred by local governments
directly attributable to such mandate.
(e) All of the increased costs of a local government
directly attributable to a mandated increase in public
employee retirement benefits which is enacted after the
effective date of this Act and which has the effect of
elevating retirement benefits of local government employees

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shall be reimbursed by the State; except that any increased
costs of a local government attributable to Public Act 83-152,
83-374, 83-375, 83-528, 83-558, 83-661, 83-664, 83-737,
83-772, 83-773, 83-780, 83-792, 83-793, 83-802, 83-810,
83-812, 83-823, 83-827 or 83-869 are not reimbursable by the
State.
(f) After the effective date of this Act, any bill filed
and any amended bill that creates or enlarges a State mandate
of the type specified in subsections (f), (g) and (h) of
Section 3, shall have provided and identified for it an
appropriation of an amount necessary to provide the
reimbursement specified above unless a statement, stating the
specific reasons for such exclusion is set out in the bill or
amendment as provided in subsection (a) of Section 8.
(g) If a local government or combination of local
governments has been providing a service at its option which
is subsequently mandated by the State, the State shall pay
them for the subsequent costs of such program and the local
government or governments shall proportionately reduce its or
their property tax extensions by the amount that the State
payment replaces property tax revenues which were being
expended on such service. However, for purposes of calculating
a school district's State aid, no district's operating tax
rate shall be decreased as a result of reimbursement under
this Act.
(h) Any increased costs accruing to a local government as

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a direct result of the requirements of the Steel Products
Procurement Act are not reimbursable by the State.
(i) The provisions of subsections (a) through (h) shall
apply to State mandates enacted prior to the effective date of
this amendatory Act of the 102nd General Assembly. On and
after the effective date of this amendatory Act of the 102nd
General Assembly, any State mandate enacted regarding any
subject matter that necessitates additional expenditures from
local government revenues shall be appropriated for and
reimbursed as provided under Section 9.2.
(Source: P.A. 83-1362.)
(30 ILCS 805/8) (from Ch. 85, par. 2208)
Sec. 8. Exclusions, reimbursement application, review,
appeals, and adjudication.
(a) Exclusions: Any of the following circumstances
inherent to, or associated with, a mandate shall exclude the
State from reimbursement liability under this Act. If the
mandate (1) accommodates a request from local governments or
organizations thereof; (2) imposes additional duties of a
nature which can be carried out by existing staff and
procedures at no appreciable net cost increase; (3) creates
additional costs but also provides offsetting savings
resulting in no aggregate increase in net costs; (4) imposes a
cost that is wholly or largely recovered from Federal, State
or other external financial aid; (5) imposes additional annual

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net costs of less than $1,000 for each of the several local
governments affected or less than $50,000, in the aggregate,
for all local governments affected.
The failure of the General Assembly to make necessary
appropriations shall relieve the local government of the
obligation to implement any service mandates, tax exemption
mandates, and personnel mandates, as specified in Section 6,
subsections (b), (c), (d) and (e), unless the exclusion
provided for in this Section are explicitly stated in the Act
establishing the mandate. In the event that funding is not
provided for a State-mandated program by the General Assembly,
the local government may implement or continue the program
upon approval of its governing body. If the local government
approves the program and funding is subsequently provided, the
State shall reimburse the local governments only for costs
incurred subsequent to the funding.
(a-5) The provisions of subsection (a) excluding the State
from reimbursement liability under this Act shall not apply to
any State mandate enacted on or after the effective date of
this amendatory Act of the 102nd General Assembly, and all
subsequent State mandates enacted shall be appropriated for as
provided under Section 9.2.
(b) Reimbursement Estimation and Appropriation Procedure.
(1) When a bill is introduced in the General Assembly,
the Legislative Reference Bureau, hereafter referred to as
the Bureau, shall determine whether such bill may require

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reimbursement to local governments pursuant to this Act.
The Bureau shall make such determination known in the
Legislative Synopsis and Digest.
In making the determination required by this
subsection (b) the Bureau shall disregard any provision in
a bill which would make inoperative the reimbursement
requirements of Section 6 above, including an express
exclusion of the applicability of this Act, and shall make
the determination irrespective of any such provision.
(2) Any bill or amended bill which creates or expands
a State mandate shall be subject to the provisions of "An
Act requiring fiscal notes in relation to certain bills",
approved June 4, 1965, as amended. The fiscal notes for
such bills or amended bills shall include estimates of the
costs to local government and the costs of any
reimbursement required under this Act. In the case of
bills having a potential fiscal impact on units of local
government, the fiscal note shall be prepared by the
Department. In the case of bills having a potential fiscal
impact on school districts, the fiscal note shall be
prepared by the State Superintendent of Education. In the
case of bills having a potential fiscal impact on
community college districts, the fiscal note shall be
prepared by the Illinois Community College Board. Such
fiscal note shall accompany the bill that requires State
reimbursement and shall be prepared prior to any final

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action on such a bill by the assigned committee. However,
if a fiscal note is not filed by the appropriate agency
within 30 days of introduction of a bill, the bill can be
heard in committee and advanced to the order of second
reading. The bill shall then remain on second reading
until a fiscal note is filed. A bill discharged from
committee shall also remain on second reading until a
fiscal note is provided by the appropriate agency.
(3) The estimate required by paragraph (2) above,
shall include the amount estimated to be required during
the first fiscal year of a bill's operation in order to
reimburse local governments pursuant to Section 6, for
costs mandated by such bill. In the event that the
effective date of such a bill is not the first day of the
fiscal year the estimate shall also include the amount
estimated to be required for reimbursement for the next
following full fiscal year.
(4) For the initial fiscal year, reimbursement funds
shall be provided as follows: (i) any statute mandating
such costs shall have a companion appropriation bill, and
(ii) any executive order mandating such costs shall be
accompanied by a bill to appropriate the funds therefor,
or, alternatively an appropriation for such funds shall be
included in the executive budget for the next following
fiscal year.
In subsequent fiscal years appropriations for such

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costs shall be included in the Governor's budget or
supplemental appropriation bills.
(c) Reimbursement Application and Disbursement Procedure.
(1) For the initial fiscal year during which
reimbursement is authorized, each local government, or
more than one local government wishing to join in filing a
single claim, believing itself to be entitled to
reimbursement under this Act shall submit to the
Department, State Superintendent of Education or Illinois
Community College Board within 60 days of the effective
date of the mandate a claim for reimbursement accompanied
by its estimate of the increased costs required by the
mandate for the balance of the fiscal year. The
Department, State Superintendent of Education or Illinois
Community College Board shall review such claim and
estimate, shall apportion the claim into 3 equal
installments and shall direct the Comptroller to pay the
installments at equal intervals throughout the remainder
of the fiscal year from the funds appropriated for such
purposes, provided that the Department, State
Superintendent of Education or Illinois Community College
Board may (i) audit the records of any local government to
verify the actual amount of the mandated cost, and (ii)
reduce any claim determined to be excessive or
unreasonable.
(2) For the subsequent fiscal years, local governments

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shall submit claims as specified above on or before
October 1 of each year. The Department, State
Superintendent of Education or Illinois Community College
Board shall apportion the claims into 3 equal installments
and shall direct the Comptroller to pay the first
installment upon approval of the claims, with subsequent
installments to follow on January 1 and March 1, such
claims to be paid from funds appropriated therefor,
provided that the Department, State Superintendent of
Education or Illinois Community College Board (i) may
audit the records of any local governments to verify the
actual amount of the mandated cost, (ii) may reduce any
claim, determined to be excessive or unreasonable, and
(iii) shall adjust the payment to correct for any
underpayments or overpayments which occurred in the
previous fiscal year.
(3) Any funds received by a local government pursuant
to this Act may be used for any public purpose.
If the funds appropriated for reimbursement of the
costs of local government resulting from the creation or
expansion of a State mandate are less than the total of the
approved claims, the amount appropriated shall be prorated
among the local governments having approved claims.
(d) Appeals and Adjudication.
(1) Local governments may appeal determinations made
by State agencies acting pursuant to subsection (c) above.

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The appeal must be submitted to the State Mandates Board
of Review created by Section 9.1 of this Act within 60 days
following the date of receipt of the determination being
appealed. The appeal must include evidence as to the
extent to which the mandate has been carried out in an
effective manner and executed without recourse to
standards of staffing or expenditure higher than specified
in the mandatory statute, if such standards are specified
in the statute. The State Mandates Board of Review, after
reviewing the evidence submitted to it, may increase or
reduce the amount of a reimbursement claim. The decision
of the State Mandates Board of Review shall be final
subject to judicial review. However, if sufficient funds
have not been appropriated, the Department shall notify
the General Assembly of such cost, and appropriations for
such costs shall be included in a supplemental
appropriation bill.
(2) A local government may also appeal directly to the
State Mandates Board of Review in those situations in
which the Department of Commerce and Economic Opportunity
does not act upon the local government's application for
reimbursement or request for mandate determination
submitted under this Act. The appeal must include evidence
that the application for reimbursement or request for
mandate determination was properly filed and should have
been reviewed by the Department.

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An appeal may be made to the Board if the Department
does not respond to a local government's application for
reimbursement or request for mandate determination within
120 days after filing the application or request. In no
case, however, may an appeal be brought more than one year
after the application or request is filed with the
Department.
(Source: P.A. 94-793, eff. 5-19-06.)
(30 ILCS 805/9.2 new)
Sec. 9.2. Unfunded State mandates prohibited.
Notwithstanding any provision of law to the contrary, any
State mandate regarding any subject matter enacted on or after
the effective date of this amendatory Act of the 102nd General
Assembly that necessitates additional expenditures from local
government revenues shall be void and unenforceable unless the
General Assembly makes necessary appropriations to implement
that mandate. The failure of the General Assembly to make
necessary appropriations shall relieve the local government of
the obligation to implement any State mandate.
Section 99. Effective date. This Act takes effect upon
becoming law.