Illinois 2025-2026 Regular Session

Illinois House Bill HB1753 Compare Versions

Only one version of the bill is available at this time.

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1	1	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB1753 Introduced , by Rep. Debbie Meyers-Martin SYNOPSIS AS INTRODUCED: 65 ILCS 5/8-12-2 from Ch. 24, par. 8-12-265 ILCS 5/8-12-3 from Ch. 24, par. 8-12-365 ILCS 5/8-12-4 from Ch. 24, par. 8-12-465 ILCS 5/8-12-4.5 new65 ILCS 5/8-12-10.5 new65 ILCS 5/8-12-21.5 new65 ILCS 5/8-12-23 from Ch. 24, par. 8-12-23 Amends the Financially Distressed City Law of the Illinois Municipal Code. Provides that, if a financially distressed city or the city's Financial Advisory Authority is awarded a State grant, any moneys the financially distressed city or Authority would be required to match under the grant are waived unless the moneys under the grant come from federal moneys that require the match. Provides that a municipality's status as a financially distressed city may not negatively impact a decision of whether or not to award a State grant to the municipality or negatively impact the amount of moneys received by the municipality from a State grant. Provides that, in addition to a request by the corporate authorities of a municipality to be certified and designated as a financially distressed city, the State Comptroller may conduct a preliminary review of the municipality's finances and establish a review team to make recommendations to the Governor for a municipality to be certified and designated as a financially distressed city. In the provisions concerning review by the State Comptroller, review team, and Governor, expands the categories allowing a municipality to become a financially distressed city. Includes provisions allowing the municipality's Financial Advisory Authority to commence an action in circuit court to enforce the Law if the corporate authorities or employees of the municipality materially violate the provisions of the Law. Makes conforming and other changes. LRB104 08074 RTM 18120 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB1753 Introduced , by Rep. Debbie Meyers-Martin SYNOPSIS AS INTRODUCED: 65 ILCS 5/8-12-2 from Ch. 24, par. 8-12-265 ILCS 5/8-12-3 from Ch. 24, par. 8-12-365 ILCS 5/8-12-4 from Ch. 24, par. 8-12-465 ILCS 5/8-12-4.5 new65 ILCS 5/8-12-10.5 new65 ILCS 5/8-12-21.5 new65 ILCS 5/8-12-23 from Ch. 24, par. 8-12-23 65 ILCS 5/8-12-2 from Ch. 24, par. 8-12-2 65 ILCS 5/8-12-3 from Ch. 24, par. 8-12-3 65 ILCS 5/8-12-4 from Ch. 24, par. 8-12-4 65 ILCS 5/8-12-4.5 new 65 ILCS 5/8-12-10.5 new 65 ILCS 5/8-12-21.5 new 65 ILCS 5/8-12-23 from Ch. 24, par. 8-12-23 Amends the Financially Distressed City Law of the Illinois Municipal Code. Provides that, if a financially distressed city or the city's Financial Advisory Authority is awarded a State grant, any moneys the financially distressed city or Authority would be required to match under the grant are waived unless the moneys under the grant come from federal moneys that require the match. Provides that a municipality's status as a financially distressed city may not negatively impact a decision of whether or not to award a State grant to the municipality or negatively impact the amount of moneys received by the municipality from a State grant. Provides that, in addition to a request by the corporate authorities of a municipality to be certified and designated as a financially distressed city, the State Comptroller may conduct a preliminary review of the municipality's finances and establish a review team to make recommendations to the Governor for a municipality to be certified and designated as a financially distressed city. In the provisions concerning review by the State Comptroller, review team, and Governor, expands the categories allowing a municipality to become a financially distressed city. Includes provisions allowing the municipality's Financial Advisory Authority to commence an action in circuit court to enforce the Law if the corporate authorities or employees of the municipality materially violate the provisions of the Law. Makes conforming and other changes. LRB104 08074 RTM 18120 b LRB104 08074 RTM 18120 b A BILL FOR
2	2	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB1753 Introduced , by Rep. Debbie Meyers-Martin SYNOPSIS AS INTRODUCED:
3	3	65 ILCS 5/8-12-2 from Ch. 24, par. 8-12-265 ILCS 5/8-12-3 from Ch. 24, par. 8-12-365 ILCS 5/8-12-4 from Ch. 24, par. 8-12-465 ILCS 5/8-12-4.5 new65 ILCS 5/8-12-10.5 new65 ILCS 5/8-12-21.5 new65 ILCS 5/8-12-23 from Ch. 24, par. 8-12-23 65 ILCS 5/8-12-2 from Ch. 24, par. 8-12-2 65 ILCS 5/8-12-3 from Ch. 24, par. 8-12-3 65 ILCS 5/8-12-4 from Ch. 24, par. 8-12-4 65 ILCS 5/8-12-4.5 new 65 ILCS 5/8-12-10.5 new 65 ILCS 5/8-12-21.5 new 65 ILCS 5/8-12-23 from Ch. 24, par. 8-12-23
4	4	65 ILCS 5/8-12-2 from Ch. 24, par. 8-12-2
5	5	65 ILCS 5/8-12-3 from Ch. 24, par. 8-12-3
6	6	65 ILCS 5/8-12-4 from Ch. 24, par. 8-12-4
7	7	65 ILCS 5/8-12-4.5 new
8	8	65 ILCS 5/8-12-10.5 new
9	9	65 ILCS 5/8-12-21.5 new
10	10	65 ILCS 5/8-12-23 from Ch. 24, par. 8-12-23
11	11	Amends the Financially Distressed City Law of the Illinois Municipal Code. Provides that, if a financially distressed city or the city's Financial Advisory Authority is awarded a State grant, any moneys the financially distressed city or Authority would be required to match under the grant are waived unless the moneys under the grant come from federal moneys that require the match. Provides that a municipality's status as a financially distressed city may not negatively impact a decision of whether or not to award a State grant to the municipality or negatively impact the amount of moneys received by the municipality from a State grant. Provides that, in addition to a request by the corporate authorities of a municipality to be certified and designated as a financially distressed city, the State Comptroller may conduct a preliminary review of the municipality's finances and establish a review team to make recommendations to the Governor for a municipality to be certified and designated as a financially distressed city. In the provisions concerning review by the State Comptroller, review team, and Governor, expands the categories allowing a municipality to become a financially distressed city. Includes provisions allowing the municipality's Financial Advisory Authority to commence an action in circuit court to enforce the Law if the corporate authorities or employees of the municipality materially violate the provisions of the Law. Makes conforming and other changes.
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14	14	A BILL FOR
15	15	HB1753LRB104 08074 RTM 18120 b HB1753 LRB104 08074 RTM 18120 b
16	16	HB1753 LRB104 08074 RTM 18120 b
17	17	1 AN ACT concerning local government.
18	18	2 Be it enacted by the People of the State of Illinois,
19	19	3 represented in the General Assembly:
20	20	4 Section 5. The Illinois Municipal Code is amended by
21	21	5 changing Sections 8-12-2, 8-12-3, 8-12-4, and 8-12-23 and by
22	22	6 adding Sections 8-12-4.5, 8-12-10.5, and 8-12-21.5 as follows:
23	23	7 (65 ILCS 5/8-12-2) (from Ch. 24, par. 8-12-2)
24	24	8 Sec. 8-12-2. (a) Pursuant to the authority of the General
25	25	9 Assembly to provide for the public health, safety and welfare,
26	26	10 the General Assembly hereby finds and declares that it is the
27	27	11 public policy and a public purpose of the State to offer
28	28	12 assistance to a financially distressed city so that it may
29	29	13 provide for the health, safety and welfare of its citizens,
30	30	14 pay when due principal and interest on its debt obligations,
31	31	15 meet financial obligations to its employees, vendors and
32	32	16 suppliers, and provide for proper financial accounting
33	33	17 procedures, budgeting and taxing practices, as well as
34	34	18 strengthen the human and economic development of the city.
35	35	19 (b) It is the purpose of this Division to provide a secure
36	36	20 financial basis for the continued operation of a financially
37	37	21 distressed city. The intention of the General Assembly, in
38	38	22 enacting this legislation is to establish sound, efficient and
39	39	23 generally accepted accounting, budgeting and taxing procedures
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43	43	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB1753 Introduced , by Rep. Debbie Meyers-Martin SYNOPSIS AS INTRODUCED:
44	44	65 ILCS 5/8-12-2 from Ch. 24, par. 8-12-265 ILCS 5/8-12-3 from Ch. 24, par. 8-12-365 ILCS 5/8-12-4 from Ch. 24, par. 8-12-465 ILCS 5/8-12-4.5 new65 ILCS 5/8-12-10.5 new65 ILCS 5/8-12-21.5 new65 ILCS 5/8-12-23 from Ch. 24, par. 8-12-23 65 ILCS 5/8-12-2 from Ch. 24, par. 8-12-2 65 ILCS 5/8-12-3 from Ch. 24, par. 8-12-3 65 ILCS 5/8-12-4 from Ch. 24, par. 8-12-4 65 ILCS 5/8-12-4.5 new 65 ILCS 5/8-12-10.5 new 65 ILCS 5/8-12-21.5 new 65 ILCS 5/8-12-23 from Ch. 24, par. 8-12-23
45	45	65 ILCS 5/8-12-2 from Ch. 24, par. 8-12-2
46	46	65 ILCS 5/8-12-3 from Ch. 24, par. 8-12-3
47	47	65 ILCS 5/8-12-4 from Ch. 24, par. 8-12-4
48	48	65 ILCS 5/8-12-4.5 new
49	49	65 ILCS 5/8-12-10.5 new
50	50	65 ILCS 5/8-12-21.5 new
51	51	65 ILCS 5/8-12-23 from Ch. 24, par. 8-12-23
52	52	Amends the Financially Distressed City Law of the Illinois Municipal Code. Provides that, if a financially distressed city or the city's Financial Advisory Authority is awarded a State grant, any moneys the financially distressed city or Authority would be required to match under the grant are waived unless the moneys under the grant come from federal moneys that require the match. Provides that a municipality's status as a financially distressed city may not negatively impact a decision of whether or not to award a State grant to the municipality or negatively impact the amount of moneys received by the municipality from a State grant. Provides that, in addition to a request by the corporate authorities of a municipality to be certified and designated as a financially distressed city, the State Comptroller may conduct a preliminary review of the municipality's finances and establish a review team to make recommendations to the Governor for a municipality to be certified and designated as a financially distressed city. In the provisions concerning review by the State Comptroller, review team, and Governor, expands the categories allowing a municipality to become a financially distressed city. Includes provisions allowing the municipality's Financial Advisory Authority to commence an action in circuit court to enforce the Law if the corporate authorities or employees of the municipality materially violate the provisions of the Law. Makes conforming and other changes.
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54	54	LRB104 08074 RTM 18120 b
55	55	A BILL FOR
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61	61	65 ILCS 5/8-12-2 from Ch. 24, par. 8-12-2
62	62	65 ILCS 5/8-12-3 from Ch. 24, par. 8-12-3
63	63	65 ILCS 5/8-12-4 from Ch. 24, par. 8-12-4
64	64	65 ILCS 5/8-12-4.5 new
65	65	65 ILCS 5/8-12-10.5 new
66	66	65 ILCS 5/8-12-21.5 new
67	67	65 ILCS 5/8-12-23 from Ch. 24, par. 8-12-23
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86	86	1 and practices within a financially distressed city, to provide
87	87	2 powers to a financial advisory authority established for a
88	88	3 financially distressed city, and to impose restrictions upon a
89	89	4 financially distressed city in order to assist that city in
90	90	5 assuring its financial integrity while leaving municipal
91	91	6 services policies to the city, consistent with the
92	92	7 requirements for satisfying the public policy and purposes
93	93	8 herein set forth.
94	94	9 (c) It also is the purpose of this Division to authorize a
95	95	10 city which has been certified and designated as a financially
96	96	11 distressed city under the procedure set forth in Section
97	97	12 8-12-4, and which has by ordinance requested that a financial
98	98	13 advisory authority be appointed for the city and that the city
99	99	14 receive assistance as provided in this Division, and which has
100	100	15 filed certified copies of that ordinance in the manner
101	101	16 provided by Section 8-12-4, to enter into such agreements as
102	102	17 are necessary to receive assistance as provided in this
103	103	18 Division and in applicable provisions of the Illinois Finance
104	104	19 Authority Act.
105	105	20 (Source: P.A. 93-205, eff. 1-1-04.)
106	106	21 (65 ILCS 5/8-12-3) (from Ch. 24, par. 8-12-3)
107	107	22 Sec. 8-12-3. As used in this Division:
108	108	23 (1) "Authority" means the "(Name of Financially Distressed
109	109	24 City) Financial Advisory Authority".
110	110	25 (2) "Financially distressed city" means a home rule any
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121	121	1 municipality which is a home rule unit and which (i) is
122	122	2 certified and designated by the Department of Revenue as being
123	123	3 in the highest 5% of all home rule municipalities in terms of
124	124	4 the aggregate of the rate per cent of all taxes levied pursuant
125	125	5 to statute or ordinance upon all taxable property of the
126	126	6 municipality and as being in the lowest 5% of all home rule
127	127	7 municipalities in terms of per capita tax yield, and (ii) is
128	128	8 designated by joint resolution of the General Assembly as a
129	129	9 financially distressed city under Section 8-12-4.
130	130	10 (3) "Home rule municipality" means a municipality which is
131	131	11 a home rule unit as provided in Section 6 of Article VII of the
132	132	12 Illinois Constitution.
133	133	13 (4) "Budget" means an annual appropriation ordinance or
134	134	14 annual budget as described in Division 2 of Article 8, as from
135	135	15 time to time in effect in the financially distressed city.
136	136	16 (5) "Chairperson" means the chairperson of the Authority
137	137	17 appointed pursuant to Section 8-12-7.
138	138	18 (6) "Financial Plan" means the financially distressed
139	139	19 city's financial plan as developed pursuant to Section
140	140	20 8-12-15, as from time to time in effect.
141	141	21 (7) "Fiscal year" means the fiscal year of the financially
142	142	22 distressed city.
143	143	23 (8) "Obligations" means bonds, notes or other evidence of
144	144	24 indebtedness issued by the Illinois Finance Authority in
145	145	25 connection with the provision of financial aid to a
146	146	26 financially distressed city pursuant to this Division and
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157	157	1 applicable provisions of the Illinois Finance Authority Act.
158	158	2 (Source: P.A. 93-205, eff. 1-1-04.)
159	159	3 (65 ILCS 5/8-12-4) (from Ch. 24, par. 8-12-4)
160	160	4 Sec. 8-12-4. Certification and designation as financially
161	161	5 distressed city.
162	162	6 (a) In order to be certified as a financially distressed
163	163	7 city and receive assistance as provided in this Division: ,
164	164	8 (1) a home rule municipality shall first, by ordinance
165	165	9 passed by its corporate authorities, request (i) that the
166	166	10 Department of Revenue certify that it is in the highest 5%
167	167	11 of all home rule municipalities in terms of the aggregate
168	168	12 of the rate per cent of all taxes levied pursuant to
169	169	13 statute or ordinance upon all taxable property of the
170	170	14 municipality and in the lowest 5% of all home rule
171	171	15 municipalities in terms of per capita tax yield, and (ii)
172	172	16 that the General Assembly by joint resolution designate it
173	173	17 as a financially distressed city. A home rule municipality
174	174	18 which is so certified and designated as a financially
175	175	19 distressed city and which desires to receive assistance as
176	176	20 provided in this Division shall, by ordinance passed by
177	177	21 its corporate authorities, request that a financial
178	178	22 advisory authority be appointed for the city and that the
179	179	23 city receive assistance as provided in this Division, and
180	180	24 shall file a certified copy of that ordinance with the
181	181	25 Governor, with the Clerk of the House of Representatives
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192	192	1 and with the Secretary of the Senate; or .
193	193	2 (2) the State Comptroller may conduct a preliminary
194	194	3 review to determine the existence of probable financial
195	195	4 stress within a home rule municipality if one or more of
196	196	5 the following occur:
197	197	6 (A) the State Comptroller requests that the
198	198	7 Department of Revenue certify that the municipality is
199	199	8 in the highest 5% of all home rule municipalities in
200	200	9 terms of the aggregate of the rate per cent of all
201	201	10 taxes levied pursuant to statute or ordinance upon all
202	202	11 taxable property of the municipality and in the lowest
203	203	12 5% of all home rule municipalities in terms of per
204	204	13 capita tax yield, and the Department certifies the
205	205	14 same;
206	206	15 (B) the city council or the mayor of a
207	207	16 municipality or school board makes a written request
208	208	17 for a preliminary review and that request identifies
209	209	18 the existing or anticipated financial conditions or
210	210	19 events that make the request necessary;
211	211	20 (C) the State Comptroller receives a written
212	212	21 request from a creditor with an undisputed claim
213	213	22 against the municipality that exceeds the greater of
214	214	23 $10,000 or 1% of the annual general fund budget of the
215	215	24 municipality and that remains unpaid 6 months after
216	216	25 its due date provided that the creditor notifies the
217	217	26 municipality in writing at least 30 days before its
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228	228	1 request to the State Comptroller of its intention to
229	229	2 submit a written request under this paragraph;
230	230	3 (D) the State Comptroller receives, not earlier
231	231	4 than 60 days before the next municipal election, a
232	232	5 petition containing specific allegations of municipal
233	233	6 financial distress signed by at least 25% of the
234	234	7 electors within the municipality who voted at the last
235	235	8 general election at which a Governor was elected;
236	236	9 (E) the State Comptroller receives written
237	237	10 notification that a municipality has not timely
238	238	11 deposited its minimum obligation payment to the
239	239	12 municipality's pension fund as required by law;
240	240	13 (F) the State Comptroller receives written
241	241	14 notification that the municipality has failed for a
242	242	15 period of 7 days or more after the scheduled date of
243	243	16 payment to pay wages and salaries or other
244	244	17 compensation owed to employees or benefits owed to
245	245	18 retirees;
246	246	19 (G) the State Comptroller receives written
247	247	20 notification from a trustee, paying agent, bondholder,
248	248	21 or auditor engaged by the municipality of a default in
249	249	22 a bond or note payment or a violation of one or more
250	250	23 bond or note covenants;
251	251	24 (H) the State Comptroller receives a resolution
252	252	25 from either chamber of the General Assembly requesting
253	253	26 a preliminary review;
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264	264	1 (I) the municipality is delinquent in the
265	265	2 distribution of tax revenues, as required by law, that
266	266	3 it has collected for another taxing jurisdiction, and
267	267	4 that taxing jurisdiction requests a preliminary
268	268	5 review;
269	269	6 (J) the municipality has been assigned a long-term
270	270	7 debt rating within or below the BBB category or its
271	271	8 equivalent by one or more nationally recognized credit
272	272	9 rating agencies; or
273	273	10 (K) the existence of other facts or circumstances
274	274	11 that, in the State Comptroller's sole discretion, are
275	275	12 indicative of probable financial stress.
276	276	13 Before commencing the preliminary review under this
277	277	14 paragraph (2), the State Comptroller shall provide the
278	278	15 municipality written notification that he or she intends
279	279	16 to conduct a preliminary review. Elected and appointed
280	280	17 officials of the municipality shall promptly and fully
281	281	18 provide the assistance and information requested by the
282	282	19 State Comptroller for that municipality in conducting the
283	283	20 preliminary review. The State Comptroller shall provide a
284	284	21 preliminary report of his or her findings to the
285	285	22 municipality within 20 days after the date the preliminary
286	286	23 review begins. A copy of the preliminary report shall be
287	287	24 provided to each State Senator and State Representative
288	288	25 who represents that municipality. The municipality may
289	289	26 provide comments to the State Comptroller concerning the
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300	300	1 preliminary report within 5 days after the preliminary
301	301	2 report is provided to the municipality.
302	302	3 If the State Comptroller believes there is probable
303	303	4 financial stress after his or her preliminary review and
304	304	5 any input from the municipality, the State Comptroller
305	305	6 shall establish a review team under Section 8-12-4.5. A
306	306	7 copy of the preliminary report shall be provided to the
307	307	8 review team and each State Senator and State
308	308	9 Representative who represents that municipality, and the
309	309	10 review shall be posted on the State Comptroller's website.
310	310	11 The review team shall examine the financial situation of
311	311	12 the municipality and complete a final report as provided
312	312	13 in Section 8-12-4.5.
313	313	14 If the Governor believes that probable financial
314	314	15 stress exists for the municipality to be certified as a
315	315	16 financially distressed city under this Section after
316	316	17 reviewing a final report prepared under Section 8-12-4.5,
317	317	18 the Governor may, by proclamation, certify and designate
318	318	19 the municipality as a financially distressed city and
319	319	20 authorize appointment of the municipality's Authority
320	320	21 under Section 8-12-7. The proclamation shall be filed with
321	321	22 the Secretary of State and the corporate authorities of
322	322	23 the municipality.
323	323	24 (b) Upon the filing of the certified copies of the that
324	324	25 ordinance under paragraph (1) of subsection (a) or upon the
325	325	26 written proclamation by the Governor filed with the Secretary
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336	336	1 of State and corporate authorities of a municipality under
337	337	2 paragraph (2) of subsection (a), as required by this Section
338	338	3 this Division and all of its provisions shall then and
339	339	4 thereafter be applicable to the financially distressed city,
340	340	5 shall govern and control its financial accounting, budgeting
341	341	6 and taxing procedures and practices, and, subject to the
342	342	7 limitations of subsection (a) of Section 8-12-22, shall remain
343	343	8 in full force and effect with respect thereto until such time
344	344	9 as the financial advisory authority established under Section
345	345	10 8-12-5 is abolished as provided in subsection (c) of Section
346	346	11 8-12-22.
347	347	12 (Source: P.A. 86-1211.)
348	348	13 (65 ILCS 5/8-12-4.5 new)
349	349	14 Sec. 8-12-4.5. Review team powers and duties.
350	350	15 (a) If the State Comptroller believes there is probable
351	351	16 financial stress after his or her preliminary review and any
352	352	17 input from the municipality under Section 8-12-4, the State
353	353	18 Comptroller shall establish a review team for the municipality
354	354	19 consisting of: the State Comptroller, or his or her designee;
355	355	20 the Director of the Governor's Office of Management and
356	356	21 Budget, or his or her designee; a member appointed by the
357	357	22 Senate President; a member appointed by the Minority Leader of
358	358	23 the Senate; a member appointed by the Speaker of the House of
359	359	24 Representatives; and a member appointed by the Minority Leader
360	360	25 of the House of Representatives. The State Comptroller may
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371	371	1 appoint other State officials or other persons with relevant
372	372	2 professional experience to serve on the review team. The State
373	373	3 Comptroller shall provide administrative support and other
374	374	4 support to a review team established under this Section.
375	375	5 (b) In conducting its review, the review team may:
376	376	6 (1) examine the books and records of the municipality;
377	377	7 (2) use the services of other State agencies and
378	378	8 employees in conducting the financial review; or
379	379	9 (3) both examine the books and records of the
380	380	10 municipality and use the services of other State agencies
381	381	11 and employees in conducting the financial review.
382	382	12 The review team shall meet with city council and employees
383	383	13 of the municipality as part of its review. At this meeting, the
384	384	14 review team shall receive, discuss, and consider information
385	385	15 provided by the municipality concerning the financial
386	386	16 condition of the municipality. In addition, the review team
387	387	17 shall hold at least one public meeting in the jurisdiction of
388	388	18 the municipality at which the public may provide comments.
389	389	19 (c) The review team shall submit a written final report of
390	390	20 its findings to the State Comptroller within 60 days following
391	391	21 its establishment or earlier if required by the State
392	392	22 Comptroller. Upon request of a majority of the review team,
393	393	23 the State Comptroller may grant one 30-day extension to the
394	394	24 60-day limitation. A copy of the final report shall be
395	395	25 forwarded by the State Comptroller to the Governor, mayor and
396	396	26 city council of the municipality, the Speaker of the House of
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407	407	1 Representatives, the Senate President, and each State Senator
408	408	2 and State Representative who represents the municipality. The
409	409	3 final report shall be posted on the State Comptroller's
410	410	4 website within 7 days after the final report is submitted to
411	411	5 the Governor. The final report shall identify the existence,
412	412	6 or an indication of the likely occurrence, of any of the
413	413	7 following if found:
414	414	8 (1) a default in the payment of principal or interest
415	415	9 upon bonded obligations, notes, or other municipal
416	416	10 securities for which no funds or insufficient funds are on
417	417	11 hand and, if required, segregated in a special trust fund;
418	418	12 (2) a failure for a period of 30 days or more beyond
419	419	13 the due date to transfer one or more of the following to
420	420	14 the appropriate agency:
421	421	15 (i) taxes withheld on the income of employees;
422	422	16 (ii) taxes collected by the municipality as agent
423	423	17 for another unit of local government; and
424	424	18 (iii) a contribution required by a pension,
425	425	19 retirement, or benefit plan;
426	426	20 (3) a failure for a period of 7 days or more after the
427	427	21 scheduled date of payment to pay wages and salaries or
428	428	22 other compensation owed to employees or benefits owed to
429	429	23 retirees;
430	430	24 (4) the total amount of accounts payable for the
431	431	25 current fiscal year, as determined by the State
432	432	26 Comptroller, is in excess of 10% of the total expenditures
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443	443	1 of the municipality in that fiscal year;
444	444	2 (5) a failure to eliminate an existing deficit in any
445	445	3 fund of the municipality within the 2-year period
446	446	4 preceding the end of the municipality's fiscal year during
447	447	5 which the review team final report is received;
448	448	6 (6) a projection of a deficit in the general fund of
449	449	7 the municipality for the current fiscal year in excess of
450	450	8 5% of the budgeted revenues for the general fund;
451	451	9 (7) a failure to comply in all material respects with
452	452	10 the terms of an approved deficit elimination plan or an
453	453	11 agreement entered into pursuant to a deficit elimination
454	454	12 plan;
455	455	13 (8) the existence of material loans to the general
456	456	14 fund from other municipal funds that are not regularly
457	457	15 settled between the funds or that are increasing in scope;
458	458	16 (9) the existence after the close of the fiscal year
459	459	17 of material recurring, non-budgeted subsidies from the
460	460	18 general fund to other major funds;
461	461	19 (10) the existence of a structural operating deficit;
462	462	20 (11) the use of restricted revenues for purposes not
463	463	21 authorized by law;
464	464	22 (12) the likelihood that the municipality is or will
465	465	23 be unable to pay its obligations within 60 days after the
466	466	24 date of the review team's final report; and
467	467	25 (13) any other facts and circumstances indicative of a
468	468	26 municipal financial emergency.
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479	479	1 (d) The review team shall include one of the following
480	480	2 conclusions in its final report:
481	481	3 (1) a financial emergency does not exist within the
482	482	4 municipality; or
483	483	5 (2) a financial emergency exists within the
484	484	6 municipality.
485	485	7 (e) The review team may, with the approval of the State
486	486	8 Comptroller, appoint an individual or firm to carry out the
487	487	9 review and submit a report to the review team for approval. The
488	488	10 State Comptroller may enter into a contract with an individual
489	489	11 or firm respecting the terms and conditions of the
490	490	12 appointment.
491	491	13 (f) For purposes of this Section:
492	492	14 (1) A financial emergency does not exist within a
493	493	15 municipality if the final report concludes that none of
494	494	16 the factors in subsection (c) exist or are likely to occur
495	495	17 within the current or next fiscal year or, if they occur,
496	496	18 do not threaten the municipality's capability to provide
497	497	19 necessary governmental services essential to public
498	498	20 health, safety, and welfare.
499	499	21 (2) A financial emergency exists within a municipality
500	500	22 if any of the following occur:
501	501	23 (A) the final report concludes that one or more of
502	502	24 the factors in subsection (c) exist or are likely to
503	503	25 occur within the current or next fiscal year and
504	504	26 threaten the municipality's current and future
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515	515	1 capability to provide necessary governmental services
516	516	2 essential to the public health, safety, and welfare;
517	517	3 (B) the municipality has failed to provide timely
518	518	4 and accurate information enabling the review team to
519	519	5 complete its final report; or
520	520	6 (C) the mayor of the municipality concludes in
521	521	7 writing to the review team that one or more of the
522	522	8 factors in subsection (c) exist or are likely to occur
523	523	9 within the current or next fiscal year and threaten
524	524	10 the municipality's current and future capability to
525	525	11 provide necessary governmental services essential to
526	526	12 the public health, safety, and welfare, and the mayor
527	527	13 recommends that a financial emergency be declared and
528	528	14 the State Comptroller concurs with the recommendation.
529	529	15 (65 ILCS 5/8-12-10.5 new)
530	530	16 Sec. 8-12-10.5. State grants. If a financially distressed
531	531	17 city or Authority is awarded a State grant, any moneys the
532	532	18 financially distressed city or Authority would be required to
533	533	19 match under the grant are waived unless the moneys under the
534	534	20 grant come from federal moneys that require the match. A
535	535	21 municipality's status as a financially distressed city may not
536	536	22 negatively impact a decision of whether or not to award a State
537	537	23 grant to the municipality or negatively impact the amount of
538	538	24 moneys received by the municipality from a State grant.
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549	549	1 (65 ILCS 5/8-12-21.5 new)
550	550	2 Sec. 8-12-21.5. Noncompliance by corporate authorities or
551	551	3 employees of a municipality. If a financially distressed city,
552	552	4 including its corporate authorities or employees, materially
553	553	5 violates the requirements of this Division, the Authority may
554	554	6 commence action in the circuit court within any county in
555	555	7 which the municipality is located if the Authority has given
556	556	8 the corporate authorities of the city written notice that
557	557	9 includes: a detailed explanation of the material violation; a
558	558	10 statement of the Authority's intention to enforce the
559	559	11 provisions of this Division by commencing an action; a
560	560	12 statement giving the corporate authorities at least 15 days to
561	561	13 correct the violation before the Authority may commence an
562	562	14 action.
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