Bill Text: IL HB5440 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Township Code. Provides that a township must expend at least 51% of the funds deposited into the general assistance fund in a calendar year by the following calendar year. Provides for elimination of the general assistance tax for one year if a township expends less than 51% of the funds deposited into the general assistance fund in a calendar year by the following calendar year. Provides for the reduction of the general assistance tax levy to 0.05% if a township expends at least 51% but less than 70% of the funds deposited into the general assistance fund in a calendar year by the following calendar year. Effective immediately.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Failed) 2025-01-07 - Session Sine Die [HB5440 Detail]

Download: Illinois-2023-HB5440-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB5440 Introduced , by Rep. Joe C. Sosnowski SYNOPSIS AS INTRODUCED:
60 ILCS 1/235-20
Amends the Township Code. Provides that a township must expend at least 51% of the funds deposited into the general assistance fund in a calendar year by the following calendar year. Provides for elimination of the general assistance tax for one year if a township expends less than 51% of the funds deposited into the general assistance fund in a calendar year by the following calendar year. Provides for the reduction of the general assistance tax levy to 0.05% if a township expends at least 51% but less than 70% of the funds deposited into the general assistance fund in a calendar year by the following calendar year. Effective immediately.
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A BILL FOR
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AN ACT concerning local government.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Township Code is amended by changing
Section 235-20 as follows:
(60 ILCS 1/235-20)
Sec. 235-20. General assistance tax.
(a) The township board may raise money by taxation deemed
necessary to be expended to provide general assistance in the
township to persons needing that assistance as provided in the
Illinois Public Aid Code, including persons eligible for
assistance under the Military Veterans Assistance Act, where
that duty is provided by law. The tax for each fiscal year
shall not be more than 0.10% of value, or more than an amount
approved at a referendum held under this Section, as equalized
or assessed by the Department of Revenue, and shall in no case
exceed the amount needed in the township for general
assistance. The board may decrease the maximum tax rate by
ordinance.
(b) Except as otherwise provided in this subsection, if
the board desires to increase the maximum tax rate, it shall
order a referendum on that proposition to be held at an
election in accordance with the general election law. The

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board shall certify the proposition to the proper election
officials, who shall submit the proposition to the voters at
an election in accordance with the general election law. If a
majority of the votes cast on the proposition is in favor of
the proposition, the board may annually levy the tax at a rate
not exceeding the higher rate approved by the voters at the
election. If, however, the board has decreased the maximum tax
rate under subsection (a), then it may, at any time after the
decrease, increase the maximum tax rate, by ordinance, to a
rate less than or equal to the maximum tax rate immediately
prior to the board's ordinance to decrease the rate.
(c) If a city, village, or incorporated town having a
population of more than 500,000 is located within or partially
within a township, then the entire amount of the tax levied by
the township for the purpose of providing general assistance
under this Section on property lying within that city,
village, or incorporated town, less the amount allowed for
collecting the tax, shall be paid over by the treasurer of the
township to the treasurer of the city, village, or
incorporated town to be appropriated and used by the city,
village, or incorporated town for the relief and support of
persons needing general assistance residing in that portion of
the city, village, or incorporated town located within the
township in accordance with the Illinois Public Aid Code.
(d) Any taxes levied for general assistance before or
after this Section takes effect may also be used for the

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payment of warrants issued against and in anticipation of
those taxes and accrued interest on those warrants and may
also be used to pay the cost of administering that assistance.
(e) In any township with a population of less than 500,000
that receives no State funding for the general assistance
program and that has not issued anticipation warrants or
otherwise borrowed monies for the administration of the
general assistance program during the township's previous 3
fiscal years of operation, a one time transfer of monies from
the township's general assistance fund may be made to the
general township fund pursuant to action by the township
board. This transfer may occur only to the extent that the
amount of monies remaining in the general assistance fund
after the transfer is equal to the greater of (i) the amount of
the township's expenditures in the previous fiscal year for
general assistance or (ii) an amount equal to either 0.10% of
the last known total equalized value of all taxable property
in the township, or 100% of the highest amount levied for
general assistance purposes in any of the three previous
fiscal years. The transfer shall be completed no later than
one year after the effective date of this amendatory Act of the
92nd General Assembly. No township that has certified a new
levy or an increase in the levy under this Section during
calendar year 2002 may transfer monies under this subsection.
No action on the transfer of monies under this subsection
shall be taken by the township board except at a township board

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meeting. No monies transferred under this subsection shall be
considered in determining whether the township qualifies for
State funds to supplement local funds for public aid purposes
under Section 12-21.13 of the Illinois Public Aid Code.
(e-5) The township board of Gray Township in White County
may approve by resolution or ordinance transfers of monies
from the township's general assistance fund to the general
township fund no later than one year after the effective date
of this amendatory Act of the 99th General Assembly if:
(1) the township receives no State funding for the
general assistance program;
(2) the township has not issued anticipation warrants
or otherwise borrowed monies for the administration of the
general assistance program during the township's previous
3 fiscal years of operation;
(3) the amount of monies remaining in the general
assistance fund after the transfer is equal to the greater
of (i) the amount of the township's expenditures in the
previous fiscal year for general assistance or (ii) an
amount equal to either 0.10% of the last known total
equalized value of all taxable property in the township,
or 100% of the highest amount levied for general
assistance purposes in any of the three previous fiscal
years; and
(4) the township that has not certified a new levy or
an increase in the levy under this Section during calendar

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year 2015.
No monies transferred under this subsection shall be
considered in determining whether the township qualifies for
State funds to supplement local funds for public aid purposes
under Section 12-21.13 of the Illinois Public Aid Code.
(f) A township must expend at least 51% of the funds
deposited into the general assistance fund in a calendar year
by the following calendar year.
If a township expends less than 51% of the funds deposited
into the general assistance fund in a calendar year by the
following calendar year, the general assistance tax levy is
eliminated for the calendar year immediately following the
calendar year in which the township was required to expend at
least 51%. If a general assistance tax levy is eliminated
under this paragraph, the treasurer of the township shall
provide notice to the county clerk of the elimination. The
general assistance tax levy shall be restored after the year
it was eliminated to the same tax levy percentage as before the
levy was eliminated under this paragraph.
If a township expends at least 51% but less than 70% of the
funds deposited into the general assistance fund in a calendar
year by the following calendar year, the general assistance
tax levy is reduced to 0.05% on January 1 if the general
assistance tax levy is greater than 0.05%, notwithstanding any
other provision of this Section. If a general assistance tax
levy percentage is reduced under this paragraph, the treasurer

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of the township shall provide notice to the county clerk of the
reduction. A general assistance tax levy percentage reduced
under this paragraph may be increased as otherwise provided in
this Section, except that the levy will be reduced again or
eliminated if the township does not meet the requirements of
this subsection.
(Source: P.A. 99-248, eff. 1-1-16.)