Bill Text: IL SB0170 | 2019-2020 | 101st General Assembly | Introduced

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Bill Title: Amends the State Finance Act. Creates the Financially Distressed Cities Fund. Amends the State Revenue Sharing Act and the Illinois Income Tax Act. Provides that the Treasurer shall monthly transfer to the Financially Distressed Cities Fund an amount certified by the Department of Revenue equal to: (1) the amount that would have been distributed under the State Revenue Sharing Act to all financially distressed cities if the Treasurer had transferred to the Local Government Distributive Fund a sum calculated using 0.10% of the net revenue realized from the tax imposed by the Illinois Income Tax Act upon individuals, trusts, estates, and corporations during the preceding month; and (2) subtracting the amount distributed to all financially distressed cities from the Local Government Distributive Fund. Provides that the Department of Revenue shall monthly allocate an amount from the Financially Distressed Cities Fund that shall be paid to each financially distressed city. Amends the Financially Distressed City Law of the Illinois Municipal Code. Makes the law applicable to both home rule and non-home rule municipalities. Provides that a State agency or unit of local government may also render technical assistance to a municipality's Financial Advisory Authority as the Authority may request. Provides that the State shall not reduce revenues or impose additional costs affecting a financially distressed city affecting the municipality unless it is consistent with the Financial Plan and Budget in effect. Provides that State mandates enacted while a municipality is designated as a financially distressed city that would cause the municipality to incur costs are not valid or enforceable during the period when the municipality is under the financially distressed city designation. Effective January 1, 2020.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2021-01-13 - Session Sine Die [SB0170 Detail]

Download: Illinois-2019-SB0170-Introduced.html

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101ST GENERAL ASSEMBLY State of Illinois 2019 and 2020 SB0170 Introduced 1/30/2019, by Sen. Napoleon Harris, III SYNOPSIS AS INTRODUCED:
See Index
Amends the State Finance Act. Creates the Financially Distressed Cities Fund. Amends the State Revenue Sharing Act and the Illinois Income Tax Act. Provides that the Treasurer shall monthly transfer to the Financially Distressed Cities Fund an amount certified by the Department of Revenue equal to: (1) the amount that would have been distributed under the State Revenue Sharing Act to all financially distressed cities if the Treasurer had transferred to the Local Government Distributive Fund a sum calculated using 0.10% of the net revenue realized from the tax imposed by the Illinois Income Tax Act upon individuals, trusts, estates, and corporations during the preceding month; and (2) subtracting the amount distributed to all financially distressed cities from the Local Government Distributive Fund. Provides that the Department of Revenue shall monthly allocate an amount from the Financially Distressed Cities Fund that shall be paid to each financially distressed city. Amends the Financially Distressed City Law of the Illinois Municipal Code. Makes the law applicable to both home rule and non-home rule municipalities. Provides that a State agency or unit of local government may also render technical assistance to a municipality's Financial Advisory Authority as the Authority may request. Provides that the State shall not reduce revenues or impose additional costs affecting a financially distressed city affecting the municipality unless it is consistent with the Financial Plan and Budget in effect. Provides that State mandates enacted while a municipality is designated as a financially distressed city that would cause the municipality to incur costs are not valid or enforceable during the period when the municipality is under the financially distressed city designation. Effective January 1, 2020.
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FISCAL NOTE ACT MAY APPLY
A BILL FOR
SB0170 LRB101 06687 AWJ 51714 b
AN ACT concerning local government.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The State Finance Act is amended by adding
Section 5.891 as follows:
(30 ILCS 105/5.891 new)
Sec. 5.891. The Financially Distressed Cities Fund.
Section 10. The State Revenue Sharing Act is amended by
changing Section 2 as follows:
(30 ILCS 115/2) (from Ch. 85, par. 612)
Sec. 2. Allocation and Disbursement.
(a) As soon as may be after the first day of each month,
the Department of Revenue shall allocate among the several
municipalities and counties of this State the amount available
in the Local Government Distributive Fund and in the Income Tax
Surcharge Local Government Distributive Fund, determined as
provided in Sections 1 and 1a above. Except as provided in
Sections 13 and 13.1 of this Act, the Department shall then
certify such allocations to the State Comptroller, who shall
pay over to the several municipalities and counties the
respective amounts allocated to them. The amount of such Funds

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allocable to each such municipality and county shall be in
proportion to the number of individual residents of such
municipality or county to the total population of the State,
determined in each case on the basis of the latest census of
the State, municipality or county conducted by the Federal
government and certified by the Secretary of State and for
annexations to municipalities, the latest Federal, State or
municipal census of the annexed area which has been certified
by the Department of Revenue. Allocations to the City of
Chicago under this Section are subject to Section 6 of the
Hotel Operators' Occupation Tax Act. For the purpose of this
Section, the number of individual residents of a county shall
be reduced by the number of individuals residing therein in
municipalities, but the number of individual residents of the
State, county and municipality shall reflect the latest census
of any of them. The amounts transferred into the Local
Government Distributive Fund pursuant to Section 9 of the Use
Tax Act, Section 9 of the Service Use Tax Act, Section 9 of the
Service Occupation Tax Act, and Section 3 of the Retailers'
Occupation Tax Act, each as now or hereafter amended, pursuant
to the amendments of such Sections by Public Act 85-1135, shall
be distributed as provided in said Sections.
(a-5) The Department of Revenue shall allocate, as soon as
may be practicable after the first day of each month, among
each financially distressed city, as that term is defined in
Section 8-12-3 of the Illinois Municipal Code, funds

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transferred to the Financially Distressed Cities Fund under
subsection (b-5) of Section 905 of the Illinois Income Tax Act.
The Department shall then certify the allocations to the State
Comptroller, who shall pay over to each financially distressed
city the respective amounts allocated to it. The amount of
funds allocable to each financially distressed city shall be in
proportion to the number of individual residents of the
financially distressed city to the total population of all
financially distressed cities combined, determined in each
case on the basis of the latest census of the State,
municipality, or county conducted by the Federal government and
certified by the Secretary of State and for annexations to
municipalities, the latest Federal, State, or municipal census
of the annexed area which has been certified by the Department
of Revenue.
(b) It is the intent of the General Assembly that
allocations made under this Section shall be made in a fair and
equitable manner. Accordingly, the clerk of any municipality to
which territory has been annexed, or from which territory has
been disconnected, shall notify the Department of Revenue in
writing of that annexation or disconnection and shall (1) state
the number of residents within the territory that was annexed
or disconnected, based on the last census conducted by the
federal, State, or municipal government and certified by the
Illinois Secretary of State, and (2) furnish therewith a
certified copy of the plat of annexation or, in the case of

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disconnection, the ordinance, final judgment, or resolution of
disconnection together with an accurate depiction of the
territory disconnected. The county in which the annexed or
disconnected territory is located shall verify that the number
of residents stated on the written notice that is to be sent to
the Department of Revenue is true and accurate. The verified
statement of the county shall accompany the written notice.
However, if the county does not respond to the municipality's
request for verification within 30 days, this verification
requirement shall be waived. The written notice shall be
provided to the Department of Revenue (1) within 30 days after
the effective date of this amendatory Act of the 96th General
Assembly for disconnections occurring after January 1, 2007 and
before the effective date of this amendatory Act of the 96th
General Assembly or (2) within 30 days after the annexation or
disconnection for annexations or disconnections occurring on
or after the effective date of this amendatory Act of the 96th
General Assembly. For purposes of this Section, a disconnection
or annexation through court order is deemed to be effective 30
days after the entry of a final judgment order, unless stayed
pending appeal. Thereafter, the monthly allocation made to the
municipality and to any other municipality or county affected
by the annexation or disconnection shall be adjusted in
accordance with this Section to reflect the change in residency
of the residents of the territory that was annexed or
disconnected. The adjustment shall be made no later than 30

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days after the Department of Revenue's receipt of the written
notice of annexation or disconnection described in this
Section.
(Source: P.A. 96-1040, eff. 7-14-10.)
Section 15. The Illinois Income Tax Act is amended by
changing Section 901 as follows:
(35 ILCS 5/901) (from Ch. 120, par. 9-901)
Sec. 901. Collection authority.
(a) In general. The Department shall collect the taxes
imposed by this Act. The Department shall collect certified
past due child support amounts under Section 2505-650 of the
Department of Revenue Law of the Civil Administrative Code of
Illinois. Except as provided in subsections (b), (c), (e), (f),
(g), and (h) of this Section, money collected pursuant to
subsections (a) and (b) of Section 201 of this Act shall be
paid into the General Revenue Fund in the State treasury; money
collected pursuant to subsections (c) and (d) of Section 201 of
this Act shall be paid into the Personal Property Tax
Replacement Fund, a special fund in the State Treasury; and
money collected under Section 2505-650 of the Department of
Revenue Law of the Civil Administrative Code of Illinois shall
be paid into the Child Support Enforcement Trust Fund, a
special fund outside the State Treasury, or to the State
Disbursement Unit established under Section 10-26 of the

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Illinois Public Aid Code, as directed by the Department of
Healthcare and Family Services.
(b) Local Government Distributive Fund. Beginning August
1, 1969, and continuing through June 30, 1994, the Treasurer
shall transfer each month from the General Revenue Fund to a
special fund in the State treasury, to be known as the "Local
Government Distributive Fund", an amount equal to 1/12 of the
net revenue realized from the tax imposed by subsections (a)
and (b) of Section 201 of this Act during the preceding month.
Beginning July 1, 1994, and continuing through June 30, 1995,
the Treasurer shall transfer each month from the General
Revenue Fund to the Local Government Distributive Fund an
amount equal to 1/11 of the net revenue realized from the tax
imposed by subsections (a) and (b) of Section 201 of this Act
during the preceding month. Beginning July 1, 1995 and
continuing through January 31, 2011, the Treasurer shall
transfer each month from the General Revenue Fund to the Local
Government Distributive Fund an amount equal to the net of (i)
1/10 of the net revenue realized from the tax imposed by
subsections (a) and (b) of Section 201 of the Illinois Income
Tax Act during the preceding month (ii) minus, beginning July
1, 2003 and ending June 30, 2004, $6,666,666, and beginning
July 1, 2004, zero. Beginning February 1, 2011, and continuing
through January 31, 2015, the Treasurer shall transfer each
month from the General Revenue Fund to the Local Government
Distributive Fund an amount equal to the sum of (i) 6% (10% of

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the ratio of the 3% individual income tax rate prior to 2011 to
the 5% individual income tax rate after 2010) of the net
revenue realized from the tax imposed by subsections (a) and
(b) of Section 201 of this Act upon individuals, trusts, and
estates during the preceding month and (ii) 6.86% (10% of the
ratio of the 4.8% corporate income tax rate prior to 2011 to
the 7% corporate income tax rate after 2010) of the net revenue
realized from the tax imposed by subsections (a) and (b) of
Section 201 of this Act upon corporations during the preceding
month. Beginning February 1, 2015 and continuing through July
31, 2017, the Treasurer shall transfer each month from the
General Revenue Fund to the Local Government Distributive Fund
an amount equal to the sum of (i) 8% (10% of the ratio of the 3%
individual income tax rate prior to 2011 to the 3.75%
individual income tax rate after 2014) of the net revenue
realized from the tax imposed by subsections (a) and (b) of
Section 201 of this Act upon individuals, trusts, and estates
during the preceding month and (ii) 9.14% (10% of the ratio of
the 4.8% corporate income tax rate prior to 2011 to the 5.25%
corporate income tax rate after 2014) of the net revenue
realized from the tax imposed by subsections (a) and (b) of
Section 201 of this Act upon corporations during the preceding
month. Beginning August 1, 2017, the Treasurer shall transfer
each month from the General Revenue Fund to the Local
Government Distributive Fund an amount equal to the sum of (i)
6.06% (10% of the ratio of the 3% individual income tax rate

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prior to 2011 to the 4.95% individual income tax rate after
July 1, 2017) of the net revenue realized from the tax imposed
by subsections (a) and (b) of Section 201 of this Act upon
individuals, trusts, and estates during the preceding month and
(ii) 6.85% (10% of the ratio of the 4.8% corporate income tax
rate prior to 2011 to the 7% corporate income tax rate after
July 1, 2017) of the net revenue realized from the tax imposed
by subsections (a) and (b) of Section 201 of this Act upon
corporations during the preceding month. Net revenue realized
for a month shall be defined as the revenue from the tax
imposed by subsections (a) and (b) of Section 201 of this Act
which is deposited in the General Revenue Fund, the Education
Assistance Fund, the Income Tax Surcharge Local Government
Distributive Fund, the Fund for the Advancement of Education,
and the Commitment to Human Services Fund during the month
minus the amount paid out of the General Revenue Fund in State
warrants during that same month as refunds to taxpayers for
overpayment of liability under the tax imposed by subsections
(a) and (b) of Section 201 of this Act.
Notwithstanding any provision of law to the contrary,
beginning on July 6, 2017 (the effective date of Public Act
100-23), those amounts required under this subsection (b) to be
transferred by the Treasurer into the Local Government
Distributive Fund from the General Revenue Fund shall be
directly deposited into the Local Government Distributive Fund
as the revenue is realized from the tax imposed by subsections

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(a) and (b) of Section 201 of this Act.
For State fiscal year 2018 only, notwithstanding any
provision of law to the contrary, the total amount of revenue
and deposits under this Section attributable to revenues
realized during State fiscal year 2018 shall be reduced by 10%.
For State fiscal year 2019 only, notwithstanding any
provision of law to the contrary, the total amount of revenue
and deposits under this Section attributable to revenues
realized during State fiscal year 2019 shall be reduced by 5%.
(b-5) Financially Distressed Cities Fund. The Department
of Revenue shall certify to the Treasurer an amount equal to:
(1) the amount that would have been distributed under
subsection (a) of Section 2 of the State Revenue Sharing
Act to all financially distressed cities, as that term is
defined in Section 8-12-3 of the Illinois Municipal Code,
if the Treasurer had transferred under subsection (b) to
the Local Government Distributive Fund a sum calculated
using (i) 0.10% of the net revenue realized from the tax
imposed by subsections (a) and (b) of Section 201 of this
Act upon individuals, trusts, and estates during the
preceding month and (ii) 0.10% of the net revenue realized
from the tax imposed by subsections (a) and (b) of Section
201 of this Act upon corporations during the preceding
month; and
(2) subtracting from the amount calculated under
paragraph (1) the amount distributed to all financially

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distressed cities under subsection (a) of Section 2 of the
State Revenue Sharing Act during the current month.
Upon receipt of the certification, the Treasurer shall
transfer from the General Revenue Fund to the Financially
Distressed Cities Fund the amount shown on the certification.
(c) Deposits Into Income Tax Refund Fund.
(1) Beginning on January 1, 1989 and thereafter, the
Department shall deposit a percentage of the amounts
collected pursuant to subsections (a) and (b)(1), (2), and
(3) of Section 201 of this Act into a fund in the State
treasury known as the Income Tax Refund Fund. The
Department shall deposit 6% of such amounts during the
period beginning January 1, 1989 and ending on June 30,
1989. Beginning with State fiscal year 1990 and for each
fiscal year thereafter, the percentage deposited into the
Income Tax Refund Fund during a fiscal year shall be the
Annual Percentage. For fiscal years 1999 through 2001, the
Annual Percentage shall be 7.1%. For fiscal year 2003, the
Annual Percentage shall be 8%. For fiscal year 2004, the
Annual Percentage shall be 11.7%. Upon the effective date
of Public Act 93-839 (July 30, 2004), the Annual Percentage
shall be 10% for fiscal year 2005. For fiscal year 2006,
the Annual Percentage shall be 9.75%. For fiscal year 2007,
the Annual Percentage shall be 9.75%. For fiscal year 2008,
the Annual Percentage shall be 7.75%. For fiscal year 2009,
the Annual Percentage shall be 9.75%. For fiscal year 2010,

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the Annual Percentage shall be 9.75%. For fiscal year 2011,
the Annual Percentage shall be 8.75%. For fiscal year 2012,
the Annual Percentage shall be 8.75%. For fiscal year 2013,
the Annual Percentage shall be 9.75%. For fiscal year 2014,
the Annual Percentage shall be 9.5%. For fiscal year 2015,
the Annual Percentage shall be 10%. For fiscal year 2018,
the Annual Percentage shall be 9.8%. For fiscal year 2019,
the Annual Percentage shall be 9.7%. For all other fiscal
years, the Annual Percentage shall be calculated as a
fraction, the numerator of which shall be the amount of
refunds approved for payment by the Department during the
preceding fiscal year as a result of overpayment of tax
liability under subsections (a) and (b)(1), (2), and (3) of
Section 201 of this Act plus the amount of such refunds
remaining approved but unpaid at the end of the preceding
fiscal year, minus the amounts transferred into the Income
Tax Refund Fund from the Tobacco Settlement Recovery Fund,
and the denominator of which shall be the amounts which
will be collected pursuant to subsections (a) and (b)(1),
(2), and (3) of Section 201 of this Act during the
preceding fiscal year; except that in State fiscal year
2002, the Annual Percentage shall in no event exceed 7.6%.
The Director of Revenue shall certify the Annual Percentage
to the Comptroller on the last business day of the fiscal
year immediately preceding the fiscal year for which it is
to be effective.

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(2) Beginning on January 1, 1989 and thereafter, the
Department shall deposit a percentage of the amounts
collected pursuant to subsections (a) and (b)(6), (7), and
(8), (c) and (d) of Section 201 of this Act into a fund in
the State treasury known as the Income Tax Refund Fund. The
Department shall deposit 18% of such amounts during the
period beginning January 1, 1989 and ending on June 30,
1989. Beginning with State fiscal year 1990 and for each
fiscal year thereafter, the percentage deposited into the
Income Tax Refund Fund during a fiscal year shall be the
Annual Percentage. For fiscal years 1999, 2000, and 2001,
the Annual Percentage shall be 19%. For fiscal year 2003,
the Annual Percentage shall be 27%. For fiscal year 2004,
the Annual Percentage shall be 32%. Upon the effective date
of Public Act 93-839 (July 30, 2004), the Annual Percentage
shall be 24% for fiscal year 2005. For fiscal year 2006,
the Annual Percentage shall be 20%. For fiscal year 2007,
the Annual Percentage shall be 17.5%. For fiscal year 2008,
the Annual Percentage shall be 15.5%. For fiscal year 2009,
the Annual Percentage shall be 17.5%. For fiscal year 2010,
the Annual Percentage shall be 17.5%. For fiscal year 2011,
the Annual Percentage shall be 17.5%. For fiscal year 2012,
the Annual Percentage shall be 17.5%. For fiscal year 2013,
the Annual Percentage shall be 14%. For fiscal year 2014,
the Annual Percentage shall be 13.4%. For fiscal year 2015,
the Annual Percentage shall be 14%. For fiscal year 2018,

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the Annual Percentage shall be 17.5%. For fiscal year 2019,
the Annual Percentage shall be 15.5%. For all other fiscal
years, the Annual Percentage shall be calculated as a
fraction, the numerator of which shall be the amount of
refunds approved for payment by the Department during the
preceding fiscal year as a result of overpayment of tax
liability under subsections (a) and (b)(6), (7), and (8),
(c) and (d) of Section 201 of this Act plus the amount of
such refunds remaining approved but unpaid at the end of
the preceding fiscal year, and the denominator of which
shall be the amounts which will be collected pursuant to
subsections (a) and (b)(6), (7), and (8), (c) and (d) of
Section 201 of this Act during the preceding fiscal year;
except that in State fiscal year 2002, the Annual
Percentage shall in no event exceed 23%. The Director of
Revenue shall certify the Annual Percentage to the
Comptroller on the last business day of the fiscal year
immediately preceding the fiscal year for which it is to be
effective.
(3) The Comptroller shall order transferred and the
Treasurer shall transfer from the Tobacco Settlement
Recovery Fund to the Income Tax Refund Fund (i) $35,000,000
in January, 2001, (ii) $35,000,000 in January, 2002, and
(iii) $35,000,000 in January, 2003.
(d) Expenditures from Income Tax Refund Fund.
(1) Beginning January 1, 1989, money in the Income Tax

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Refund Fund shall be expended exclusively for the purpose
of paying refunds resulting from overpayment of tax
liability under Section 201 of this Act and for making
transfers pursuant to this subsection (d).
(2) The Director shall order payment of refunds
resulting from overpayment of tax liability under Section
201 of this Act from the Income Tax Refund Fund only to the
extent that amounts collected pursuant to Section 201 of
this Act and transfers pursuant to this subsection (d) and
item (3) of subsection (c) have been deposited and retained
in the Fund.
(3) As soon as possible after the end of each fiscal
year, the Director shall order transferred and the State
Treasurer and State Comptroller shall transfer from the
Income Tax Refund Fund to the Personal Property Tax
Replacement Fund an amount, certified by the Director to
the Comptroller, equal to the excess of the amount
collected pursuant to subsections (c) and (d) of Section
201 of this Act deposited into the Income Tax Refund Fund
during the fiscal year over the amount of refunds resulting
from overpayment of tax liability under subsections (c) and
(d) of Section 201 of this Act paid from the Income Tax
Refund Fund during the fiscal year.
(4) As soon as possible after the end of each fiscal
year, the Director shall order transferred and the State
Treasurer and State Comptroller shall transfer from the

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Personal Property Tax Replacement Fund to the Income Tax
Refund Fund an amount, certified by the Director to the
Comptroller, equal to the excess of the amount of refunds
resulting from overpayment of tax liability under
subsections (c) and (d) of Section 201 of this Act paid
from the Income Tax Refund Fund during the fiscal year over
the amount collected pursuant to subsections (c) and (d) of
Section 201 of this Act deposited into the Income Tax
Refund Fund during the fiscal year.
(4.5) As soon as possible after the end of fiscal year
1999 and of each fiscal year thereafter, the Director shall
order transferred and the State Treasurer and State
Comptroller shall transfer from the Income Tax Refund Fund
to the General Revenue Fund any surplus remaining in the
Income Tax Refund Fund as of the end of such fiscal year;
excluding for fiscal years 2000, 2001, and 2002 amounts
attributable to transfers under item (3) of subsection (c)
less refunds resulting from the earned income tax credit.
(5) This Act shall constitute an irrevocable and
continuing appropriation from the Income Tax Refund Fund
for the purpose of paying refunds upon the order of the
Director in accordance with the provisions of this Section.
(e) Deposits into the Education Assistance Fund and the
Income Tax Surcharge Local Government Distributive Fund. On
July 1, 1991, and thereafter, of the amounts collected pursuant
to subsections (a) and (b) of Section 201 of this Act, minus

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deposits into the Income Tax Refund Fund, the Department shall
deposit 7.3% into the Education Assistance Fund in the State
Treasury. Beginning July 1, 1991, and continuing through
January 31, 1993, of the amounts collected pursuant to
subsections (a) and (b) of Section 201 of the Illinois Income
Tax Act, minus deposits into the Income Tax Refund Fund, the
Department shall deposit 3.0% into the Income Tax Surcharge
Local Government Distributive Fund in the State Treasury.
Beginning February 1, 1993 and continuing through June 30,
1993, of the amounts collected pursuant to subsections (a) and
(b) of Section 201 of the Illinois Income Tax Act, minus
deposits into the Income Tax Refund Fund, the Department shall
deposit 4.4% into the Income Tax Surcharge Local Government
Distributive Fund in the State Treasury. Beginning July 1,
1993, and continuing through June 30, 1994, of the amounts
collected under subsections (a) and (b) of Section 201 of this
Act, minus deposits into the Income Tax Refund Fund, the
Department shall deposit 1.475% into the Income Tax Surcharge
Local Government Distributive Fund in the State Treasury.
(f) Deposits into the Fund for the Advancement of
Education. Beginning February 1, 2015, the Department shall
deposit the following portions of the revenue realized from the
tax imposed upon individuals, trusts, and estates by
subsections (a) and (b) of Section 201 of this Act, minus
deposits into the Income Tax Refund Fund, into the Fund for the
Advancement of Education:

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(1) beginning February 1, 2015, and prior to February
1, 2025, 1/30; and
(2) beginning February 1, 2025, 1/26.
If the rate of tax imposed by subsection (a) and (b) of
Section 201 is reduced pursuant to Section 201.5 of this Act,
the Department shall not make the deposits required by this
subsection (f) on or after the effective date of the reduction.
(g) Deposits into the Commitment to Human Services Fund.
Beginning February 1, 2015, the Department shall deposit the
following portions of the revenue realized from the tax imposed
upon individuals, trusts, and estates by subsections (a) and
(b) of Section 201 of this Act, minus deposits into the Income
Tax Refund Fund, into the Commitment to Human Services Fund:
(1) beginning February 1, 2015, and prior to February
1, 2025, 1/30; and
(2) beginning February 1, 2025, 1/26.
If the rate of tax imposed by subsection (a) and (b) of
Section 201 is reduced pursuant to Section 201.5 of this Act,
the Department shall not make the deposits required by this
subsection (g) on or after the effective date of the reduction.
(h) Deposits into the Tax Compliance and Administration
Fund. Beginning on the first day of the first calendar month to
occur on or after August 26, 2014 (the effective date of Public
Act 98-1098), each month the Department shall pay into the Tax
Compliance and Administration Fund, to be used, subject to
appropriation, to fund additional auditors and compliance

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personnel at the Department, an amount equal to 1/12 of 5% of
the cash receipts collected during the preceding fiscal year by
the Audit Bureau of the Department from the tax imposed by
subsections (a), (b), (c), and (d) of Section 201 of this Act,
net of deposits into the Income Tax Refund Fund made from those
cash receipts.
(Source: P.A. 99-78, eff. 7-20-15; 100-22, eff. 7-6-17; 100-23,
eff. 7-6-17; 100-587, eff. 6-4-18; 100-621, eff. 7-20-18;
100-863, eff. 8-14-18; 100-1171, eff. 1-4-19; revised 1-8-19.)
Section 20. The Illinois Municipal Code is amended by
changing Sections 8-12-3, 8-12-4, 8-12-10, 8-12-18, and
8-12-24 as follows:
(65 ILCS 5/8-12-3) (from Ch. 24, par. 8-12-3)
Sec. 8-12-3. As used in this Division:
(1) "Authority" means the "(Name of Financially Distressed
City) Financial Advisory Authority".
(2) "Financially distressed city" means any municipality
which: is a home rule unit and which (i) is a home rule unit
certified by the Department of Revenue as being in the highest
5% of all home rule municipalities in terms of the aggregate of
the rate per cent of all taxes levied pursuant to statute or
ordinance upon all taxable property of the municipality and as
being in the lowest 5% of all home rule municipalities in terms
of per capita tax yield, or is a non-home rule unit certified

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by the Department of Revenue as being in the highest 5% of all
non-home rule municipalities in terms of the aggregate of the
rate per cent of all taxes levied pursuant to statute or
ordinance upon all taxable property of the municipality and as
being in the lowest 5% of all non-home rule municipalities in
terms of per capita tax yield; and (ii) is designated by joint
resolution of the General Assembly as a financially distressed
city.
(3) "Home rule municipality" means a municipality which is
a home rule unit as provided in Section 6 of Article VII of the
Illinois Constitution.
(4) "Budget" means an annual appropriation ordinance or
annual budget as described in Division 2 of Article 8, as from
time to time in effect in the financially distressed city.
(5) "Chairperson" means the chairperson of the Authority
appointed pursuant to Section 8-12-7.
(6) "Financial Plan" means the financially distressed
city's financial plan as developed pursuant to Section 8-12-15,
as from time to time in effect.
(7) "Fiscal year" means the fiscal year of the financially
distressed city.
(8) "Obligations" means bonds, notes or other evidence of
indebtedness issued by the Illinois Finance Authority in
connection with the provision of financial aid to a financially
distressed city pursuant to this Division and applicable
provisions of the Illinois Finance Authority Act.

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(Source: P.A. 93-205, eff. 1-1-04.)
(65 ILCS 5/8-12-4) (from Ch. 24, par. 8-12-4)
Sec. 8-12-4. In order to receive assistance as provided in
this Division, a home rule municipality shall first, by
ordinance passed by its corporate authorities, request (i) that
the Department of Revenue certify that it is in the highest 5%
of all home rule or non-home rule municipalities, respectively,
in terms of the aggregate of the rate per cent of all taxes
levied pursuant to statute or ordinance upon all taxable
property of the municipality and in the lowest 5% of all home
rule or non-home rule municipalities, respectively, in terms of
per capita tax yield, and (ii) that the General Assembly by
joint resolution designate it as a financially distressed city.
A home rule municipality which is so certified and designated
as a financially distressed city and which desires to receive
assistance as provided in this Division shall, by ordinance
passed by its corporate authorities, request that a financial
advisory authority be appointed for the city and that the city
receive assistance as provided in this Division, and shall file
a certified copy of that ordinance with the Governor, with the
Clerk of the House of Representatives and with the Secretary of
the Senate. Upon the filing of the certified copies of that
ordinance as required by this Section this Division and all of
its provisions shall then and thereafter be applicable to the
financially distressed city, shall govern and control its

SB0170 - 21 - LRB101 06687 AWJ 51714 b
financial accounting, budgeting and taxing procedures and
practices, and, subject to the limitations of subsection (a) of
Section 8-12-22, shall remain in full force and effect with
respect thereto until such time as the financial advisory
authority established under Section 8-12-5 is abolished as
provided in subsection (c) of Section 8-12-22.
(Source: P.A. 86-1211.)
(65 ILCS 5/8-12-10) (from Ch. 24, par. 8-12-10)
Sec. 8-12-10. Any State agency or unit of local government,
within its respective function, may render such services and
technical assistance to the Authority as the Authority may
request. Upon the Authority's request any such agency or unit
of local government may transfer to the Authority such officers
and employees as the Authority and any such agency or unit of
local government deem necessary to carry out the Authority's
functions and duties. Officers and employees so transferred
shall not lose or forfeit their employment status or rights.
(Source: P.A. 86-1211.)
(65 ILCS 5/8-12-18) (from Ch. 24, par. 8-12-18)
Sec. 8-12-18. (a) The financially distressed city shall
meet its debt service obligations as they become due. No other
expenditure shall be made by the city unless it is consistent
with the Financial Plan and Budget in effect. The State shall
not reduce revenues or impose additional costs affecting the

SB0170 - 22 - LRB101 06687 AWJ 51714 b
city unless it is consistent with the Financial Plan and Budget
in effect.
(b) State mandates enacted while a city is designated as a
financially distressed city that would cause the city to incur
additional costs are not valid or enforceable against the city
during the period when the city is under the financially
distressed city designation.
(Source: P.A. 86-1211.)
(65 ILCS 5/8-12-24) (from Ch. 24, par. 8-12-24)
Sec. 8-12-24. A city home rule unit which is a financially
distressed city to which this Division is applicable as
provided in Section 8-12-4 may not employ financial or fiscal
accounting or budgetary procedures or systems, nor place into
effect any Financial Plan or Budget, nor enter into any
contract or make any expenditure, nor otherwise conduct its
financial and fiscal affairs or take other action in a manner
inconsistent with the provisions of this Division, until such
time as the powers and responsibilities of the Authority are
terminated as provided in Section 8-12-22. This Section is a
limitation under subsection (i) of Section 6 of Article VII of
the Illinois Constitution on the concurrent exercise by home
rule units which are financially distressed cities to which
this Division is applicable as provided in Section 8-12-4 of
powers and functions exercised by the State.
(Source: P.A. 86-1211.)

SB0170 - 23 - LRB101 06687 AWJ 51714 b
Section 99. Effective date. This Act takes effect January
1, 2020.
SB0170 - 24 - LRB101 06687 AWJ 51714 b
INDEX
Statutes amended in order of appearance