Bill Text: IL SB0345 | 2011-2012 | 97th General Assembly | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Amends the State Mandates Act. Makes a technical change in a Section concerning definitions.

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Failed) 2013-01-08 - Session Sine Die [SB0345 Detail]

Download: Illinois-2011-SB0345-Amended.html

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Sen. Matt Murphy

Filed: 5/23/2011

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AMENDMENT TO SENATE BILL 345
AMENDMENT NO. ______. Amend Senate Bill 345 by replacing
everything after the enacting clause with the following:
"Section 5. The Secretary of State Act is amended by
changing Section 5 as follows:
(15 ILCS 305/5) (from Ch. 124, par. 5)
Sec. 5. It shall be the duty of the Secretary of State:
1. To countersign and affix the seal of state to all
commissions required by law to be issued by the Governor.
2. To make a register of all appointments by the Governor,
specifying the person appointed, the office conferred, the date
of the appointment, the date when bond or oath is taken and the
date filed. If Senate confirmation is required, the date of the
confirmation shall be included in the register.
3. To make proper indexes to public acts, resolutions,
papers and documents in his office.

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3-a. To review all rules of all State agencies adopted in
compliance with the codification system prescribed by the
Secretary. The review shall be for the purposes and include all
the powers and duties provided in the Illinois Administrative
Procedure Act. The Secretary of State shall cooperate with the
Legislative Information System to insure the accuracy of the
text of the rules maintained under the Legislative Information
System Act.
4. To give any person requiring the same paying the lawful
fees therefor, a copy of any law, act, resolution, record or
paper in his office, and attach thereto his certificate, under
the seal of the state.
5. To take charge of and preserve from waste, and keep in
repair, the houses, lots, grounds and appurtenances, situated
in the City of Springfield, and belonging to or occupied by the
State, the care of which is not otherwise provided for by law,
and to take charge of and preserve from waste, and keep in
repair, the houses, lots, grounds and appurtenances, situated
in the State outside the City of Springfield where such houses,
lots, grounds and appurtenances are occupied by the Secretary
of State and no other State officer or agency.
6. To supervise the distribution of the laws.
7. To perform such other duties as may be required by law.
The Secretary of State may, within appropriations authorized by
the General Assembly, maintain offices in the State Capital and
in such other places in the State as he may deem necessary to

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properly carry out the powers and duties vested in him by law.
8. In addition to all other authority granted to the
Secretary by law, subject to appropriation, to make grants or
otherwise provide assistance to, among others without
limitation, units of local government, school districts,
educational institutions, private agencies, not-for-profit
organizations, and for-profit entities for the health, safety,
and welfare of Illinois residents for purposes related to
education, transportation, construction, capital improvements,
social services, and any other lawful public purpose. Upon
request of the Secretary, all State agencies are mandated to
provide the Secretary with assistance in administering the
grants.
9. To notify the Auditor General of any Public Act filed
with the Office of the Secretary of State making an
appropriation or transfer of funds from the State treasury.
This paragraph (9) applies only through June 30, 2016 June 30,
2015.
(Source: P.A. 96-37, eff. 7-13-09; 96-1496, eff. 1-13-11.)
Section 10. The Illinois State Auditing Act is amended by
changing Section 3-20 as follows:
(30 ILCS 5/3-20)
Sec. 3-20. Spending limitation reports. The Auditor
General shall issue reports in accordance with Section 201.5 of

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the Illinois Income Tax Act. This Section applies through June
30, 2016 June 30, 2015 or the effective date of a reduction in
the rate of tax imposed by subsections (a) and (b) of Section
201 of the Illinois Income Tax Act pursuant to Section 201.5 of
the Illinois Income Tax Act, whichever is earlier.
(Source: P.A. 96-1496, eff. 1-13-11.)
Section 15. The Illinois Income Tax Act is amended by
changing Section 201.5 as follows:
(35 ILCS 5/201.5)
Sec. 201.5. State spending limitation and tax reduction.
(a) If, beginning in State fiscal year 2012 and continuing
through State fiscal year 2016 2015, State spending for any
fiscal year exceeds the State spending limitation set forth in
subsection (b) of this Section, then the tax rates set forth in
subsection (b) of Section 201 of this Act shall be reduced,
according to the procedures set forth in this Section, to 3% of
the taxpayer's net income for individuals, trusts, and estates
and to 4.8% of the taxpayer's net income for corporations. For
all taxable years following the taxable year in which the rate
has been reduced pursuant to this Section, the tax rate set
forth in subsection (b) of Section 201 of this Act shall be 3%
of the taxpayer's net income for individuals, trusts, and
estates and 4.8% of the taxpayer's net income for corporations.
(b) The State spending limitation for fiscal years 2012

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through 2016 2015 shall be as follows: (i) for fiscal year
2012, $29,979,000,000 $36,818,000,000; (ii) for fiscal year
2013, $30,429,000,000 $37,554,000,000; (iii) for fiscal year
2014, $30,885,000,000 $38,305,000,000; and (iv) for fiscal
year 2015, $31,348,000,000; and (v) for fiscal year 2016,
$31,819,000,000 $39,072,000,000.
(c) Nothwithstanding any other provision of law to the
contrary, the Auditor General shall examine each Public Act
authorizing State spending from State general funds and prepare
a report no later than 30 days after receiving notification of
the Public Act from the Secretary of State or 60 days after the
effective date of the Public Act, whichever is earlier. The
Auditor General shall file the report with the Secretary of
State and copies with the Governor, the State Treasurer, the
State Comptroller, the Senate, and the House of
Representatives. The report shall indicate: (i) the amount of
State spending set forth in the applicable Public Act; (ii) the
total amount of State spending authorized by law for the
applicable fiscal year as of the date of the report; and (iii)
whether State spending exceeds the State spending limitation
set forth in subsection (b). The Auditor General may examine
multiple Public Acts in one consolidated report, provided that
each Public Act is examined within the time period mandated by
this subsection (c). The Auditor General shall issue reports in
accordance with this Section through June 30, 2016 June 30,
2015 or the effective date of a reduction in the rate of tax

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imposed by subsections (a) and (b) of Section 201 of this Act
pursuant to this Section, whichever is earlier.
At the request of the Auditor General, each State agency
shall, without delay, make available to the Auditor General or
his or her designated representative any record or information
requested and shall provide for examination or copying all
records, accounts, papers, reports, vouchers, correspondence,
books and other documentation in the custody of that agency,
including information stored in electronic data processing
systems, which is related to or within the scope of a report
prepared under this Section. The Auditor General shall report
to the Governor each instance in which a State agency fails to
cooperate promptly and fully with his or her office as required
by this Section.
The Auditor General's report shall not be in the nature of
a post-audit or examination and shall not lead to the issuance
of an opinion as that term is defined in generally accepted
government auditing standards.
(d) If the Auditor General reports that State spending has
exceeded the State spending limitation set forth in subsection
(b) and if the Governor has not been presented with a bill or
bills passed by the General Assembly to reduce State spending
to a level that does not exceed the State spending limitation
within 45 calendar days of receipt of the Auditor General's
report, then the Governor may, for the purpose of reducing
State spending to a level that does not exceed the State

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spending limitation set forth in subsection (b), designate
amounts to be set aside as a reserve from the amounts
appropriated from the State general funds for all boards,
commissions, agencies, institutions, authorities, colleges,
universities, and bodies politic and corporate of the State,
but not other constitutional officers, the legislative or
judicial branch, the office of the Executive Inspector General,
or the Executive Ethics Commission. Such a designation must be
made within 15 calendar days after the end of that 45-day
period. If the Governor designates amounts to be set aside as a
reserve, the Governor shall give notice of the designation to
the Auditor General, the State Treasurer, the State
Comptroller, the Senate, and the House of Representatives. The
amounts placed in reserves shall not be transferred, obligated,
encumbered, expended, or otherwise committed unless so
authorized by law. Any amount placed in reserves is not State
spending and shall not be considered when calculating the total
amount of State spending. Any Public Act authorizing the use of
amounts placed in reserve by the Governor is considered State
spending, unless such Public Act authorizes the use of amounts
placed in reserves in response to a fiscal emergency under
subsection (g).
(e) If the Auditor General reports under subsection (c)
that State spending has exceeded the State spending limitation
set forth in subsection (b), then the Auditor General shall
issue a supplemental report no sooner than the 61st day and no

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later than the 65th day after issuing the report pursuant to
subsection (c). The supplemental report shall: (i) summarize
details of actions taken by the General Assembly and the
Governor after the issuance of the initial report to reduce
State spending, if any, (ii) indicate whether the level of
State spending has changed since the initial report, and (iii)
indicate whether State spending exceeds the State spending
limitation. The Auditor General shall file the report with the
Secretary of State and copies with the Governor, the State
Treasurer, the State Comptroller, the Senate, and the House of
Representatives. If the supplemental report of the Auditor
General provides that State spending exceeds the State spending
limitation, then the rate of tax imposed by subsections (a) and
(b) of Section 201 is reduced as provided in this Section
beginning on the first day of the first month to occur not less
than 30 days after issuance of the supplemental report.
(f) For any taxable year in which the rates of tax have
been reduced under this Section, the tax imposed by subsections
(a) and (b) of Section 201 shall be determined as follows:
(1) In the case of an individual, trust, or estate, the
tax shall be imposed in an amount equal to the sum of (i)
the rate applicable to the taxpayer under subsection (b) of
Section 201 (without regard to the provisions of this
Section) times the taxpayer's net income for any portion of
the taxable year prior to the effective date of the
reduction and (ii) 3% of the taxpayer's net income for any

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portion of the taxable year on or after the effective date
of the reduction.
(2) In the case of a corporation, the tax shall be
imposed in an amount equal to the sum of (i) the rate
applicable to the taxpayer under subsection (b) of Section
201 (without regard to the provisions of this Section)
times the taxpayer's net income for any portion of the
taxable year prior to the effective date of the reduction
and (ii) 4.8% of the taxpayer's net income for any portion
of the taxable year on or after the effective date of the
reduction.
(3) For any taxpayer for whom the rate has been reduced
under this Section for a portion of a taxable year, the
taxpayer shall determine the net income for each portion of
the taxable year following the rules set forth in Section
202.5 of this Act, using the effective date of the rate
reduction rather than the January 1 dates found in that
Section, and the day before the effective date of the rate
reduction rather than the December 31 dates found in that
Section.
(4) If the rate applicable to the taxpayer under
subsection (b) of Section 201 (without regard to the
provisions of this Section) changes during a portion of the
taxable year to which that rate is applied under paragraphs
(1) or (2) of this subsection (f), the tax for that portion
of the taxable year for purposes of paragraph (1) or (2) of

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this subsection (f) shall be determined as if that portion
of the taxable year were a separate taxable year, following
the rules set forth in Section 202.5 of this Act. If the
taxpayer elects to follow the rules set forth in subsection
(b) of Section 202.5, the taxpayer shall follow the rules
set forth in subsection (b) of Section 202.5 for all
purposes of this Section for that taxable year.
(g) Notwithstanding the State spending limitation set
forth in subsection (b) of this Section, the Governor may
declare a fiscal emergency by filing a declaration with the
Secretary of State and copies with the State Treasurer, the
State Comptroller, the Senate, and the House of
Representatives. The declaration must be limited to only one
State fiscal year, set forth compelling reasons for declaring a
fiscal emergency, and request a specific dollar amount. Unless,
within 10 calendar days of receipt of the Governor's
declaration, the State Comptroller or State Treasurer notifies
the Senate and the House of Representatives that he or she does
not concur in the Governor's declaration, State spending
authorized by law to address the fiscal emergency in an amount
no greater than the dollar amount specified in the declaration
shall not be considered "State spending" for purposes of the
State spending limitation.
(h) As used in this Section:
"State general funds" means the General Revenue Fund, the
Common School Fund, the General Revenue Common School Special

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Account Fund, the Education Assistance Fund, and the Budget
Stabilization Fund.
"State spending" means (i) the total amount authorized for
spending by appropriation or statutory transfer from the State
general funds in the applicable fiscal year, and (ii) any
amounts the Governor places in reserves in accordance with
subsection (d) that are subsequently released from reserves
following authorization by a Public Act. For the purpose of
this definition, "appropriation" means authority to spend
money from a State general fund for a specific amount, purpose,
and time period, including any supplemental appropriation or
continuing appropriation, but does not include
reappropriations from a previous fiscal year. For the purpose
of this definition, "statutory transfer" means authority to
transfer funds from one State general fund to any other fund in
the State treasury, but does not include transfers made from
one State general fund to another State general fund.
"State spending limitation" means the amount described in
subsection (b) of this Section for the applicable fiscal year.
(Source: P.A. 96-1496, eff. 1-13-11.)
Section 99. Effective date. This Act takes effect upon
becoming law.".