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Rep. Daniel J. Burke
Filed: 3/7/2017
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| 1 | | AMENDMENT TO HOUSE BILL 644
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| 2 | | AMENDMENT NO. ______. Amend House Bill 644 by replacing |
| 3 | | everything after the enacting clause with the following:
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| 4 | | "Section 1. Short title. This Act may be cited as the |
| 5 | | Municipal Finance Transparency Act.
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| 6 | | Section 5. Purpose. The purpose of this Act is to establish |
| 7 | | an alert system, directed by the State Comptroller, to annually |
| 8 | | identify municipalities that are in or approaching financial |
| 9 | | distress.
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| 10 | | Section 10. Definitions. For the purpose of this Act, |
| 11 | | unless context indicates otherwise: |
| 12 | | "Municipality" means a city, village, or incorporated |
| 13 | | town. |
| 14 | | "Financial distress" means a financial state which may |
| 15 | | include, but is not limited to, when a municipality is deemed |
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| 1 | | to be in danger of being unable to fund basic services, make |
| 2 | | principle and interest payments on bonds or notes, make |
| 3 | | statutorily required pension contributions, or make payroll, |
| 4 | | according to criteria established by the State Comptroller in |
| 5 | | consultation with the State Comptroller Local Government |
| 6 | | Advisory Board. |
| 7 | | "Financial indicators" means a municipality's reported |
| 8 | | revenues, expenditures, debt, liabilities, assets, and pension |
| 9 | | liabilities across all funds and component units derived from |
| 10 | | audits and financial reports submitted to the State Comptroller |
| 11 | | or other documents available to the State Comptroller.
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| 12 | | Section 15. Index system. |
| 13 | | (a) The State Comptroller shall establish an index system |
| 14 | | to identify municipalities that are in or approaching financial |
| 15 | | distress. |
| 16 | | (b) If any municipality has failed to submit annual audits |
| 17 | | or financial reports to the State Comptroller as required by |
| 18 | | law, then the Comptroller shall indicate in the annual index |
| 19 | | that the municipality is not in compliance. |
| 20 | | (c) The State Comptroller shall make public the criteria |
| 21 | | used to determine whether a municipality is in or approaching |
| 22 | | financial distress.
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| 23 | | Section 20. Review of audits. The State Comptroller shall |
| 24 | | review audits and financial reports obtained under the |
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| 1 | | Governmental Account Audit Act or the Illinois Municipal |
| 2 | | Auditing Law, in addition to any other reports or records the |
| 3 | | State Comptroller deems relevant, and publish an annual report |
| 4 | | identifying the fiscal health of municipalities.
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| 5 | | Section 25. Notice. The State Comptroller shall provide any |
| 6 | | municipality that will be identified as being in or approaching |
| 7 | | financial distress advance written notice of such designation, |
| 8 | | and shall also provide a method by which the municipality may |
| 9 | | provide additional information that might influence such |
| 10 | | designation. Nothing in this Section shall be construed as |
| 11 | | preventing the State Comptroller from identifying a |
| 12 | | municipality as being in or approaching financial distress.
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| 13 | | Section 99. Effective date. This Act takes effect one year |
| 14 | | after becoming law.".
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