Bill Text: IL HB0644 | 2017-2018 | 100th General Assembly | Introduced

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Bill Title: Creates the Municipal Financial Distress Alert System Act. Requires the State Comptroller to establish an index system to identify municipalities that are in or approaching financial distress. Provides that the Comptroller shall use the index system to indicate municipalities that have failed to submit annual audits or financial reports to the Comptroller as required by law. Requires the Comptroller to annually review audits and financial reports obtained under the Governmental Account Audit Act and publish a report identifying municipalities that are in or approaching financial distress. Defines terms.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2019-01-08 - Session Sine Die [HB0644 Detail]

Download: Illinois-2017-HB0644-Introduced.html

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100TH GENERAL ASSEMBLY State of Illinois 2017 and 2018 HB0644 Introduced , by Rep. Daniel J. Burke SYNOPSIS AS INTRODUCED:
New Act
Creates the Municipal Financial Distress Alert System Act. Requires the State Comptroller to establish an index system to identify municipalities that are in or approaching financial distress. Provides that the Comptroller shall use the index system to indicate municipalities that have failed to submit annual audits or financial reports to the Comptroller as required by law. Requires the Comptroller to annually review audits and financial reports obtained under the Governmental Account Audit Act and publish a report identifying municipalities that are in or approaching financial distress. Defines terms.
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A BILL FOR
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AN ACT concerning State government.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 1. Short title. This Act may be cited as the
Municipal Financial Distress Alert System Act.
Section 5. Purpose. The purpose of this Act is to establish
an alert system, directed by the State Comptroller, to annually
identify municipalities that are in or approaching financial
distress.
Section 10. Definitions. For the purpose of this Act,
unless context indicates otherwise:
"Municipality" means a city or village with a population of
less than 100,000 that is subject to the Governmental Account
Audit Act.
"Financial distress" means a financial state in which a
municipality is in danger of being unable to provide basic
services or pay bills as they come due, according to criteria
established by the State Comptroller in consultation with the
State Comptroller Local Government Advisory Board.
"Financial indicators" means a municipality's reported
revenues, expenditures, debt, liabilities, assets, and pension
liabilities across all funds and component units derived from

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audits and financial reports submitted to the State Comptroller
or other documents available to the State Comptroller.
Section 15. Index system.
(a) The State Comptroller shall establish an index system
to identify municipalities that are in or approaching financial
distress.
(b) If any municipality has failed to submit annual audits
or financial reports to the State Comptroller as required by
law, then the Comptroller shall indicate in the annual index
that the municipality is not in compliance.
Section 20. Review of audits. The State Comptroller shall
annually review audits and financial reports obtained under the
Governmental Account Audit Act and publish a report identifying
municipalities that are in or approaching financial distress.