Illinois 2025-2026 Regular Session

Illinois House Bill HB1082 Compare Versions

Version 1 (Old)

Version 2 (New)

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1		-	HB1082 EngrossedLRB104 03023 RTM 13041 b HB1082 Engrossed LRB104 03023 RTM 13041 b
2		-	HB1082 Engrossed LRB104 03023 RTM 13041 b
	1	+	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB1082 Introduced , by Rep. Gregg Johnson SYNOPSIS AS INTRODUCED: 65 ILCS 5/8-8-2 from Ch. 24, par. 8-8-265 ILCS 5/8-8-3 from Ch. 24, par. 8-8-3 Amends the Illinois Municipal Auditing Law of the Illinois Municipal Code. Provides that certain provisions concerning audit requirements shall become inoperable in fiscal year 2026. Provides that, beginning in Fiscal Year 2026, if a municipality has a population of 1,000 or more, then the municipality shall file annually with the Comptroller an audit report and annual financial report. Provides that, beginning in Fiscal Year 2026, a municipality with a population of less than 1,000 shall file annually with the Comptroller an annual financial report. Provides that, beginning in Fiscal Year 2026, a municipality with a population of less than 1,000 that owns or operates public utilities or has bonded debt shall file an audit report once every 4 years unless the latest audit report filed with the Comptroller contains an adverse opinion or disclaimer of opinion. Provides that, if the audit report contains an adverse opinion or disclaimer of opinion, then the municipality shall file an audit report annually until the audit report shows no adverse opinion or disclaimer of opinion. Provides that, beginning in Fiscal Year 2026, municipalities shall submit completed audit reports and annual financial reports within 180 days after the close of such fiscal year, unless an extension is granted by the Comptroller in writing. LRB104 03023 RTM 13041 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB1082 Introduced , by Rep. Gregg Johnson SYNOPSIS AS INTRODUCED: 65 ILCS 5/8-8-2 from Ch. 24, par. 8-8-265 ILCS 5/8-8-3 from Ch. 24, par. 8-8-3 65 ILCS 5/8-8-2 from Ch. 24, par. 8-8-2 65 ILCS 5/8-8-3 from Ch. 24, par. 8-8-3 Amends the Illinois Municipal Auditing Law of the Illinois Municipal Code. Provides that certain provisions concerning audit requirements shall become inoperable in fiscal year 2026. Provides that, beginning in Fiscal Year 2026, if a municipality has a population of 1,000 or more, then the municipality shall file annually with the Comptroller an audit report and annual financial report. Provides that, beginning in Fiscal Year 2026, a municipality with a population of less than 1,000 shall file annually with the Comptroller an annual financial report. Provides that, beginning in Fiscal Year 2026, a municipality with a population of less than 1,000 that owns or operates public utilities or has bonded debt shall file an audit report once every 4 years unless the latest audit report filed with the Comptroller contains an adverse opinion or disclaimer of opinion. Provides that, if the audit report contains an adverse opinion or disclaimer of opinion, then the municipality shall file an audit report annually until the audit report shows no adverse opinion or disclaimer of opinion. Provides that, beginning in Fiscal Year 2026, municipalities shall submit completed audit reports and annual financial reports within 180 days after the close of such fiscal year, unless an extension is granted by the Comptroller in writing. LRB104 03023 RTM 13041 b LRB104 03023 RTM 13041 b A BILL FOR
	2	+	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB1082 Introduced , by Rep. Gregg Johnson SYNOPSIS AS INTRODUCED:
	3	+	65 ILCS 5/8-8-2 from Ch. 24, par. 8-8-265 ILCS 5/8-8-3 from Ch. 24, par. 8-8-3 65 ILCS 5/8-8-2 from Ch. 24, par. 8-8-2 65 ILCS 5/8-8-3 from Ch. 24, par. 8-8-3
	4	+	65 ILCS 5/8-8-2 from Ch. 24, par. 8-8-2
	5	+	65 ILCS 5/8-8-3 from Ch. 24, par. 8-8-3
	6	+	Amends the Illinois Municipal Auditing Law of the Illinois Municipal Code. Provides that certain provisions concerning audit requirements shall become inoperable in fiscal year 2026. Provides that, beginning in Fiscal Year 2026, if a municipality has a population of 1,000 or more, then the municipality shall file annually with the Comptroller an audit report and annual financial report. Provides that, beginning in Fiscal Year 2026, a municipality with a population of less than 1,000 shall file annually with the Comptroller an annual financial report. Provides that, beginning in Fiscal Year 2026, a municipality with a population of less than 1,000 that owns or operates public utilities or has bonded debt shall file an audit report once every 4 years unless the latest audit report filed with the Comptroller contains an adverse opinion or disclaimer of opinion. Provides that, if the audit report contains an adverse opinion or disclaimer of opinion, then the municipality shall file an audit report annually until the audit report shows no adverse opinion or disclaimer of opinion. Provides that, beginning in Fiscal Year 2026, municipalities shall submit completed audit reports and annual financial reports within 180 days after the close of such fiscal year, unless an extension is granted by the Comptroller in writing.
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	8	+	LRB104 03023 RTM 13041 b
	9	+	A BILL FOR
	10	+	HB1082LRB104 03023 RTM 13041 b HB1082 LRB104 03023 RTM 13041 b
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3	12		1 AN ACT concerning local government.
4	13		2 Be it enacted by the People of the State of Illinois,
5	14		3 represented in the General Assembly:
6	15		4 Section 5. The Illinois Municipal Code is amended by
7	16		5 changing Sections 8-8-2 and 8-8-3 as follows:
8	17		6 (65 ILCS 5/8-8-2) (from Ch. 24, par. 8-8-2)
9	18		7 Sec. 8-8-2. The following terms shall, unless the context
10	19		8 otherwise indicates, have the following meanings:
11	20		9 (1) "Municipality" or "municipalities" means all cities,
12	21		10 villages and incorporated towns having a population of less
13	22		11 than 500,000 as determined by the last preceding Federal
14	23		12 census.
15	24		13 (2) "Corporate authorities" means a city council, village
16	25		14 board of trustees, library board, police and firemen's pension
17	26		15 board, or any other body or officers having authority to levy
18	27		16 taxes, make appropriations, or approve claims for any
19	28		17 municipality.
20	29		18 (3) "Comptroller" means the Comptroller of the State of
21	30		19 Illinois.
22	31		20 (4) (Blank).
23		-	21 (5) "Audit report" means, until Fiscal Year ~~2027~~, the
	32	+	21 (5) "Audit report" means, until Fiscal Year 2026, the
24	33		22 written report of the auditor or auditors and all appended
25	34		23 statements and schedules relating thereto, presenting or
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	38	+	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB1082 Introduced , by Rep. Gregg Johnson SYNOPSIS AS INTRODUCED:
	39	+	65 ILCS 5/8-8-2 from Ch. 24, par. 8-8-265 ILCS 5/8-8-3 from Ch. 24, par. 8-8-3 65 ILCS 5/8-8-2 from Ch. 24, par. 8-8-2 65 ILCS 5/8-8-3 from Ch. 24, par. 8-8-3
	40	+	65 ILCS 5/8-8-2 from Ch. 24, par. 8-8-2
	41	+	65 ILCS 5/8-8-3 from Ch. 24, par. 8-8-3
	42	+	Amends the Illinois Municipal Auditing Law of the Illinois Municipal Code. Provides that certain provisions concerning audit requirements shall become inoperable in fiscal year 2026. Provides that, beginning in Fiscal Year 2026, if a municipality has a population of 1,000 or more, then the municipality shall file annually with the Comptroller an audit report and annual financial report. Provides that, beginning in Fiscal Year 2026, a municipality with a population of less than 1,000 shall file annually with the Comptroller an annual financial report. Provides that, beginning in Fiscal Year 2026, a municipality with a population of less than 1,000 that owns or operates public utilities or has bonded debt shall file an audit report once every 4 years unless the latest audit report filed with the Comptroller contains an adverse opinion or disclaimer of opinion. Provides that, if the audit report contains an adverse opinion or disclaimer of opinion, then the municipality shall file an audit report annually until the audit report shows no adverse opinion or disclaimer of opinion. Provides that, beginning in Fiscal Year 2026, municipalities shall submit completed audit reports and annual financial reports within 180 days after the close of such fiscal year, unless an extension is granted by the Comptroller in writing.
	43	+	LRB104 03023 RTM 13041 b LRB104 03023 RTM 13041 b
	44	+	LRB104 03023 RTM 13041 b
	45	+	A BILL FOR
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	51	+	65 ILCS 5/8-8-2 from Ch. 24, par. 8-8-2
	52	+	65 ILCS 5/8-8-3 from Ch. 24, par. 8-8-3
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34	71		1 recording the findings of an examination or audit of the
35	72		2 financial transactions, affairs, or condition of a
36	73		3 municipality. This paragraph (5) becomes inoperable in Fiscal
37		-	4 Year ~~2027~~.
38		-	5 (5.5) "Audit report" means, beginning in Fiscal Year ~~2027~~,
	74	+	4 Year 2026.
	75	+	5 (5.5) "Audit report" means, beginning in Fiscal Year 2026,
39	76		6 the written report of the auditor presenting or recording the
40	77		7 findings of an examination or audit of (i) all accounts and
41	78		8 funds of the municipality and (ii) the financial transactions,
42	79		9 affairs, and condition of the municipality. "Audit report"
43		-	10 includes, beginning in Fiscal Year ~~2027~~, all appended
	80	+	10 includes, beginning in Fiscal Year 2026, all appended
44	81		11 statements and schedules relating to the written report of the
45	82		12 auditor.
46		-	13 (6) "Annual report" means, until Fiscal Year ~~2027~~, the
	83	+	13 (6) "Annual report" means, until Fiscal Year 2026, the
47	84		14 statement filed, in lieu of an audit report, by the
48	85		15 municipalities of less than 800 population, which do not own
49	86		16 or operate public utilities and do not have bonded debt. This
50		-	17 paragraph (6) becomes inoperable in Fiscal Year ~~2027~~.
	87	+	17 paragraph (6) becomes inoperable in Fiscal Year 2026.
51	88		18 (6.5) "Annual financial report" means, beginning in Fiscal
52		-	19 Year ~~2027~~, the statement filed in lieu of an audit report and
	89	+	19 Year 2026, the statement filed in lieu of an audit report and
53	90		20 containing the information required by the Comptroller on
54	91		21 forms devised by the Comptroller in such manner as to not
55	92		22 require professional accounting services for its preparation.
56	93		23 (7) "Supplemental report" means the annual statement
57	94		24 filed, in addition to any audit report provided for herein, by
58	95		25 all municipalities, except municipalities of less than 800
59	96		26 population which do not own or operate public utilities and do
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70	107		1 not have bonded debt.
71	108		2 (8) "Auditor" means a licensed certified public
72	109		3 accountant, as that term is defined in Section 0.03 of the
73	110		4 Illinois Public Accounting Act, or the substantial equivalent
74	111		5 of a licensed CPA, as provided under Section 5.2 of the
75	112		6 Illinois Public Accounting Act, who performs an audit of
76	113		7 municipal financial statements and records and expresses an
77	114		8 assurance or disclaims an opinion on the audited financial
78	115		9 statements.
79	116		10 (9) "Generally accepted accounting principles" means
80	117		11 accounting principles generally accepted in the United States.
81	118		12 (10) "Generally accepted auditing standards" means
82	119		13 auditing standards generally accepted in the United States.
83	120		14 (Source: P.A. 100-837, eff. 8-13-18; 101-419, eff. 1-1-20.)
84	121		15 (65 ILCS 5/8-8-3) (from Ch. 24, par. 8-8-3)
85	122		16 Sec. 8-8-3. Audit requirements.
86	123		17 (a) The corporate authorities of each municipality coming
87	124		18 under the provisions of this Division 8 shall cause an audit of
88	125		19 the funds and accounts of the municipality to be made by an
89	126		20 auditor or auditors employed by such municipality or by an
90	127		21 auditor or auditors retained by the Comptroller, as
91	128		22 hereinafter provided.
92		-	23 (b) Until Fiscal Year ~~2027~~, the The accounts and funds of
	129	+	23 (b) Until Fiscal Year 2026, the The accounts and funds of
93	130		24 each municipality having a population of 800 or more or having
94	131		25 a bonded debt or owning or operating any type of public utility
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105	142		1 shall be audited annually. The audit herein required shall
106	143		2 include all of the accounts and funds of the municipality.
107	144		3 Such audit shall be begun as soon as possible after the close
108	145		4 of the fiscal year, and shall be completed and the report
109	146		5 submitted within 180 days after the close of such fiscal year,
110	147		6 unless an extension of time shall be granted by the
111	148		7 Comptroller in writing. The auditor or auditors perform the
112	149		8 audit shall submit not less than 2 copies of the audit report
113	150		9 to the corporate authorities of the municipality being
114	151		10 audited. Municipalities not operating utilities may cause
115	152		11 audits of the accounts of municipalities to be made more often
116	153		12 than herein provided, by an auditor or auditors. The audit
117	154		13 report of such audit when filed with the Comptroller together
118	155		14 with an audit report covering the remainder of the period for
119	156		15 which an audit is required to be filed hereunder shall satisfy
120	157		16 the requirements of this section. This subsection (b) becomes
121		-	17 inoperable in Fiscal Year ~~2027~~.
122		-	18 (c) Until Fiscal Year ~~2027~~, municipalities Municipalities
	158	+	17 inoperable in Fiscal Year 2026.
	159	+	18 (c) Until Fiscal Year 2026, municipalities Municipalities
123	160		19 of less than 800 population which do not own or operate public
124	161		20 utilities and do not have bonded debt, shall file annually
125	162		21 with the Comptroller a financial report containing information
126	163		22 required by the Comptroller. Such annual financial report
127	164		23 shall be on forms devised by the Comptroller in such manner as
128	165		24 to not require professional accounting services for its
129	166		25 preparation. This subsection (c) becomes inoperable in Fiscal
130		-	26 Year ~~2027~~.
	167	+	26 Year 2026.
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141		-	1 (d) Until Fiscal Year ~~2027~~, in In addition to any audit
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	178	+	1 (d) Until Fiscal Year 2026, in In addition to any audit
142	179		2 report required, all municipalities, except municipalities of
143	180		3 less than 800 population which do not own or operate public
144	181		4 utilities and do not have bonded debt, shall file annually
145	182		5 with the Comptroller a supplemental report on forms devised
146	183		6 and approved by the Comptroller. This subsection (d) becomes
147		-	7 inoperable in Fiscal Year ~~2027~~.
148		-	8 (e) Until Fiscal Year ~~2027~~, notwithstanding
	184	+	7 inoperable in Fiscal Year 2026.
	185	+	8 (e) Until Fiscal Year 2026, notwithstanding
149	186		9 Notwithstanding any provision of law to the contrary, if a
150	187		10 municipality (i) has a population of less than 200, (ii) has
151	188		11 bonded debt in the amount of $50,000 or less, and (iii) owns or
152	189		12 operates a public utility, then the municipality shall cause
153	190		13 an audit of the funds and accounts of the municipality to be
154	191		14 performed by an auditor employed by the municipality or
155	192		15 retained by the Comptroller for fiscal year 2011 and every
156	193		16 fourth fiscal year thereafter or until the municipality has a
157	194		17 population of 200 or more, has bonded debt in excess of
158	195		18 $50,000, or no longer owns or operates a public utility.
159	196		19 Nothing in this subsection shall be construed as limiting the
160	197		20 municipality's duty to file an annual financial report with
161	198		21 the Comptroller or to comply with the filing requirements
162	199		22 concerning the county clerk. This subsection (e) becomes
163		-	23 inoperable in Fiscal Year ~~2027~~.
	200	+	23 inoperable in Fiscal Year 2026.
164	201		24 (f) All audits and reports to be filed with the
165	202		25 Comptroller under this Section must be submitted
166	203		26 electronically and the Comptroller must post the audits and
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177	214		1 reports on the Internet no later than 45 days after they are
178	215		2 received. If the municipality provides the Comptroller's
179	216		3 Office with sufficient evidence that the audit or report
180	217		4 cannot be filed electronically, the Comptroller may waive this
181	218		5 requirement. The Comptroller must also post a list of
182	219		6 municipalities that are not in compliance with the reporting
183	220		7 requirements set forth in this Section.
184	221		8 (g) Subsection (f) of this Section is a limitation under
185	222		9 subsection (i) of Section 6 of Article VII of the Illinois
186	223		10 Constitution on the concurrent exercise by home rule
187	224		11 municipalities of powers and functions exercised by the State.
188		-	12 (h) ~~Any financial report under this Section shall include~~
189		-	13 ~~the name~~ of ~~the purchasing agent who oversees all~~
190		-	14 ~~competitively bid contracts.~~ ~~If there is no purchasing agent,~~
191		-	15 ~~the name of~~ the ~~person responsible for oversight of all~~
192		-	16 ~~competitively bid contracts shall be listed~~.
193		-	17 (i) Beginning in Fiscal Year ~~2027~~, if a municipality ~~has~~ a
194		-	18 population of less than 1,000~~, does not own or operate public~~
195		-	19 ~~utilities, and does not have bonded debt, then~~ the
196		-	20 ~~municipality shall file annually with the Comptroller an~~
197		-	21 ~~annual financial~~ report.
198		-	22 ~~(j) Beginning in Fiscal Year 2027, a municipality~~ with a
199		-	23 ~~population~~ of ~~less than 1,000 shall annually file an annual~~
200		-	24 ~~financial~~ report ~~with the Comptroller if the municipality owns~~
201		-	25 ~~or operates public utilities or has bonded debt.~~ ~~Additionally,~~
202		-	26 the ~~municipality shall file an~~ audit report ~~once every 4 years~~
	225	+	12 (i) Beginning in Fiscal Year 2026, if a municipality has a
	226	+	13 population of less than 1,000, does not own or operate public
	227	+	14 utilities, and does not have bonded debt, then the
	228	+	15 municipality shall file annually with the Comptroller an
	229	+	16 annual financial report.
	230	+	17 (j) Beginning in Fiscal Year 2026, a municipality with a
	231	+	18 population of less than 1,000 shall annually file an annual
	232	+	19 financial report with the Comptroller if the municipality owns
	233	+	20 or operates public utilities or has bonded debt. Additionally,
	234	+	21 the municipality shall file an audit report once every 4 years
	235	+	22 unless the latest audit report filed with the Comptroller
	236	+	23 contains an adverse opinion or disclaimer of opinion. If the
	237	+	24 audit report contains an adverse opinion or disclaimer of
	238	+	25 opinion, then the municipality shall file an audit report
	239	+	26 annually until the audit report shows no adverse opinion or
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213		-	1 unless the latest audit report filed with the Comptroller
214		-	2 contains an adverse opinion or disclaimer of opinion. If the
215		-	3 audit report contains an adverse opinion or disclaimer of
216		-	4 opinion, then the municipality shall file an audit report
217		-	5 annually until the audit report shows no adverse opinion or
218		-	6 disclaimer of opinion.
219		-	7 (k) Beginning in Fiscal Year 2027, if a municipality has a
220		-	8 population of 1,000 or more, then the municipality shall file
221		-	9 annually with the Comptroller an audit report and annual
222		-	10 financial report.
223		-	11 (l) Beginning in Fiscal Year 2027, municipalities shall
224		-	12 submit completed audit reports and annual financial reports
225		-	13 within 180 days after the close of such fiscal year, unless an
226		-	14 extension is granted by the Comptroller in writing. The
227		-	15 auditor performing the audit shall submit not less than 2
228		-	16 copies of the audit report to the corporate authorities of the
229		-	17 municipality being audited. The audit report of such audit
230		-	18 when filed with the Comptroller together with an audit report
231		-	19 covering the remainder of the period for which an audit is
232		-	20 required to be filed under this Section shall satisfy the
233		-	21 requirements of this Section.
234		-	22 (Source: P.A. 101-419, eff. 1-1-20.)
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