98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB5840
 
Introduced , by Rep. Kelly Burke
 
SYNOPSIS AS INTRODUCED:








30 ILCS 805/4.5 new
30 ILCS 805/7 from Ch. 85, par. 2207
30 ILCS 805/8 from Ch. 85, par. 2208

 Amends the State Mandates Act. Requires the State Board of Education to collect and maintain information concerning State mandates for schools, determine the statewide implementation of State mandates for schools, review school district applications for reimbursement submitted under the Act where the General Assembly has appropriated funds to reimburse school districts for costs associated with the implementation of a State mandate, and annually report to the Governor and the General Assembly regarding the administration of the Act and changes proposed to the Act that concern schools. Requires the Legislative Research Unit to conduct public hearings as needed to review the information collected and the recommendations made by the Board. Provides that within 2 years following the effective date of the amendatory Act, the Board shall collect and tabulate relevant information as to the nature and scope of each existing State mandate for schools. Further provides that failure of the General Assembly to appropriate adequate funds for reimbursement to schools as required by this Act shall not relieve the Board from these obligations. Requires that fiscal notes on bills creating State mandates shall include actual implementation cost data and analysis generated by school districts. Makes changes concerning appeals under the Act.



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FISCAL NOTE ACT MAY APPLY
 
 
A BILL FOR
 


HB5840LRB098 20302 OMW 55739 b



1 AN ACT concerning finance.


2 Be it enacted by the People of the State of Illinois,

3represented in the General Assembly:



4 Section 5. The State Mandates Act is amended by changing 
5Sections 7 and 8 and by adding Section 4.5 as follows:

6 (30 ILCS 805/4.5 new)
7 Sec. 4.5. Collection and maintenance of information 
8concerning State mandates for schools.
9 (a) The State Board of Education shall be responsible for 
10the following:
11  (1) Collecting and maintaining information on State 
12 mandates for schools, including information required for 
13 effective implementation of the provisions of this Act.
14  (2) Reviewing school district applications for 
15 reimbursement submitted under this Act where the General 
16 Assembly has appropriated funds to reimburse school 
17 districts for costs associated with the implementation of a 
18 State mandate. Where there is no appropriation for 
19 reimbursement, upon a request for determination of a State 
20 mandate by a school district or more than one school 
21 district filing a single request, other than a community 
22 college district, the Board shall, in conjunction with an 
23 association established under Article 23 of the School 
 
 
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1 Code, determine whether a Public Act constitutes a State 
2 mandate and, if so, the statewide cost of implementation.
3  (3) Hearing complaints or suggestions from school 
4 districts and other affected organizations as to existing 
5 or proposed State mandates for schools.
6  (4) Annually reporting to the Governor and the General 
7 Assembly about the administration of provisions of this Act 
8 and changes proposed to this Act that concern schools.
9 The Legislative Research Unit shall conduct public 
10hearings as needed to review the information collected and the 
11recommendations made by the Board under this subsection (a). 
12The Board shall cooperate fully with the Legislative Research 
13Unit, providing any information, supporting documentation, and 
14other assistance required by the Legislative Research Unit to 
15conduct the hearing.
16 (b) Within 2 years following the effective date of this 
17amendatory Act of the 98th General Assembly, the Board shall 
18collect and tabulate relevant information as to the nature and 
19scope of each existing State mandate for schools, including, 
20but not limited to: (i) the identity of the type of school 
21district and local government agency or official to whom the 
22State mandate is directed, (ii) whether an identifiable local 
23direct cost is necessitated by the State mandate and the 
24estimated annual amount, (iii) the extent of State financial 
25participation, if any, in meeting identifiable costs, (iv) the 
26State agency, if any, charged with supervising the 
 
 
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1implementation of the mandate, and (v) a brief description of 
2the State mandate and a citation to its origin in statute or 
3rule.
4 (c) The resulting information from subsection (b) of this 
5Section shall be published in a catalog that shall be made 
6available to members of the General Assembly, State and local 
7officials, and interested citizens. As new State mandates are 
8enacted, they shall be added to the catalog, and on January 31 
9of every year, the Department shall list each new State mandate 
10that was enacted during the preceding session of the General 
11Assembly, as well as the estimated additional identifiable 
12direct costs, if any, imposed upon school districts. A revised 
13version of the catalog shall be published every 2 years, 
14beginning with the publication date of the first catalog.
15 (d) Failure of the General Assembly to appropriate adequate 
16funds for reimbursement to schools as required by this Act 
17shall not relieve the Board from its obligations under this 
18Section.




19 (30 ILCS 805/7) (from Ch. 85, par. 2207)



20 Sec. 7. Review of Existing Mandates. 
21 (a) Concurrently with, or within
3 months subsequent to the 
22publication of a catalog of State mandates as
prescribed in 
23subsection (b) of Sections Section 4 and 4.5 the Department 
24shall submit to
the Governor and the General Assembly a review 
25and report on mandates enacted
prior to the effective date of 
 
 
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1this Act and remaining in effect at the time of submittal
of 
2the report. The State Board of Education shall submit a review 
3of existing State mandates for schools concurrently with the 
4publication required under subsection (c) of Section 4.5 of 
5this Act. 

6 (b) The report shall include for each mandate the 
7following: (1) The factual
information specified in subsection 
8(b) of Section 4 for the catalog; (2)
extent to which the 
9enactment of the mandate was requested, supported, encouraged

10or opposed by local governments or their respective 
11organization;
(3) whether the mandate continues to meet a 
12Statewide policy objective or
has achieved the initial policy 
13intent in whole or in part; (4) amendments
if any are required 
14to make the mandate more effective; (5) whether the mandate

15should be retained or rescinded; (6) whether State financial 
16participation
in helping meet the identifiable increased local 
17costs arising from the
mandate should be initiated, and if so, 
18recommended ratios and phasing-in
schedules; and (7) any other 
19information or recommendations which the
Department considers 
20pertinent.

21 (c) The appropriate committee of each house of the General 
22Assembly shall
review the report and shall initiate such 
23legislation or other action as
it deems necessary.

24 The requirement for reporting to the General Assembly shall 
25be satisfied
by filing copies of the report with the Speaker, 
26the Minority Leader and
the Clerk of the House of 
 
 
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1Representatives and the President, the Minority
Leader, the 
2Secretary of the Senate, the members of the committees required

3to review the report under subsection (c) and the Legislative 
4Research
Unit, as
required by Section 3.1 of "An Act to revise 
5the law in relation to the
General Assembly", approved February 
625, 1874, as amended, and filing such
additional copies with 
7the State Government Report Distribution Center for
the General 
8Assembly as is required under paragraph (t) of Section 7 of
the 
9State Library Act.

10(Source: P.A. 84-1438.)





11 (30 ILCS 805/8) (from Ch. 85, par. 2208)



12 Sec. 8. Exclusions, reimbursement application, review, 
13appeals, and
adjudication.
14 (a) Exclusions: Any of the following circumstances

15inherent to, or associated with, a mandate shall exclude the 
16State from
reimbursement liability under this Act. If the 
17mandate (1) accommodates
a request from local governments or 
18organizations thereof; (2) imposes
additional duties of a 
19nature which can be carried out by existing staff
and 
20procedures at no appreciable net cost increase; (3) creates

21additional costs but also provides offsetting savings 
22resulting in no
aggregate increase in net costs; (4) imposes a 
23cost that is wholly or
largely recovered from Federal, State or 
24other external financial aid;
(5) imposes additional annual net 
25costs of less than $1,000
for each of the several local 
 
 
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1governments affected or less than $50,000,
in the aggregate, 
2for all local governments affected.

3 The failure of the General Assembly to make necessary 
4appropriations
shall relieve the local government of the 
5obligation to implement any
service mandates, tax exemption 
6mandates, and personnel mandates, as
specified in Section 6, 
7subsections (b), (c), (d) and (e), unless the
exclusion 
8provided for in this Section are explicitly stated in the Act

9establishing the mandate. In the event that funding is not 
10provided for
a State-mandated program by the General Assembly, 
11the local government
may implement or continue the program upon 
12approval of its governing
body. If the local government 
13approves the program and funding is
subsequently provided, the 
14State shall reimburse the local governments
only for costs 
15incurred subsequent to the funding.

16 (b) Reimbursement Estimation and Appropriation Procedure.


17  (1) When a
bill is introduced in the General Assembly, 
18 the Legislative Reference
Bureau, hereafter referred to as 
19 the Bureau, shall determine whether
such bill may require 
20 reimbursement to local governments pursuant to
this Act. 
21 The Bureau shall make such determination known in the 
22 Legislative
Synopsis and Digest.


23  In making the determination required by this 
24 subsection (b) the
Bureau shall disregard any provision in 
25 a bill which would make
inoperative the reimbursement 
26 requirements of Section 6 above, including
an express 
 
 
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1 exclusion of the applicability of this Act, and shall
make 
2 the determination irrespective of any such provision.


3  (2) Any bill or amended bill which creates or expands a 
4 State mandate
shall be subject to the provisions of "An Act 
5 requiring fiscal notes in
relation to certain bills", 
6 approved June 4, 1965, as amended. The fiscal
notes for 
7 such bills or amended bills shall include estimates of the 
8 costs
to local government and the costs of any 
9 reimbursement required under this
Act. In the case of bills 
10 having a potential fiscal impact on units
of local 
11 government, the fiscal note shall be prepared by the 
12 Department and include actual implementation cost data and 
13 analysis generated by school districts.
In the case of 
14 bills having a potential
fiscal impact on school districts, 
15 the fiscal note shall be prepared by
the State 
16 Superintendent of Education. In the case of bills having a

17 potential fiscal impact on community college districts, 
18 the fiscal note
shall be prepared by the Illinois Community 
19 College Board. Such fiscal
note shall accompany the bill 
20 that requires State reimbursement
and shall be prepared 
21 prior to any final action on such a bill by the
assigned 
22 committee. However, if a fiscal note is not filed by the 
23 appropriate
agency within 30 days of introduction of a 
24 bill, the bill can be heard in
committee and advanced to 
25 the order of second reading. The bill shall then
remain on 
26 second reading until a fiscal note is filed. A bill 
 
 
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1 discharged
from committee shall also remain on second 
2 reading until a fiscal note is
provided by the appropriate 
3 agency.


4  (3) The estimate required by paragraph (2) above, shall 
5 include the
amount estimated to be required during the 
6 first fiscal year of a bill's
operation in order to 
7 reimburse local governments pursuant to Section 6,
for 
8 costs mandated by such bill. In the event that the 
9 effective
date of such a bill is not the first day of the 
10 fiscal year the
estimate shall also include the amount 
11 estimated to be required for
reimbursement for the next 
12 following full fiscal year. 


13  (4) For the initial fiscal year, reimbursement funds 
14 shall be
provided as follows: (i) any statute mandating 
15 such costs shall have a
companion appropriation bill, and 
16 (ii) any executive order mandating
such costs shall be 
17 accompanied by a bill to appropriate the funds
therefor, 
18 or, alternatively an appropriation for such funds shall be

19 included in the executive budget for the next following 
20 fiscal year.


21  In subsequent fiscal years appropriations for such 
22 costs shall be
included in the Governor's budget or 
23 supplemental appropriation bills.

24 (c) Reimbursement Application and Disbursement Procedure.


25  (1) For
the initial fiscal year during which 
26 reimbursement is authorized, each
local government, or 
 
 
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1 more than one local government wishing to join in filing
a 
2 single claim, believing itself to be entitled to 
3 reimbursement under
this Act shall submit to the 
4 Department, State Superintendent of
Education or Illinois 
5 Community College Board within 60 days of the
effective 
6 date of the mandate a claim for reimbursement accompanied 
7 by
its estimate of the increased costs required by the 
8 mandate for the
balance of the fiscal year. The Department, 
9 State Superintendent of
Education or Illinois Community 
10 College Board shall review such claim
and estimate, shall 
11 apportion the claim into 3 equal installments and
shall 
12 direct the Comptroller to pay the installments
at equal 
13 intervals throughout the remainder of the fiscal year from

14 the funds appropriated for such purposes, provided that the 
15 Department,
State Superintendent of Education or Illinois 
16 Community College Board
may (i) audit the records of any 
17 local government to verify the actual
amount of the 
18 mandated cost, and (ii) reduce any claim determined to be

19 excessive or unreasonable.


20  (2) For the subsequent fiscal years, local governments 
21 shall submit
claims as specified above on or before October 
22 1 of each year. The
Department, State Superintendent of 
23 Education or Illinois Community
College Board shall 
24 apportion the claims into 3 equal installments and
shall 
25 direct the Comptroller to pay the first installment upon 
26 approval
of the claims, with subsequent installments to 
 
 
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1 follow on January 1 and March
1, such claims to be paid 
2 from funds
appropriated therefor, provided that the 
3 Department, State
Superintendent of Education or Illinois 
4 Community College Board (i) may
audit the records of any 
5 local governments to verify the actual amount
of the 
6 mandated cost, (ii) may reduce any claim, determined to be

7 excessive or unreasonable, and (iii) shall adjust the 
8 payment to correct
for any underpayments or overpayments 
9 which occurred in the previous
fiscal year.


10  (3) Any funds received by a local government pursuant 
11 to this Act
may be used for any public purpose.


12  If the funds appropriated for reimbursement of the 
13 costs of local
government
resulting from the creation or 
14 expansion of a State mandate are less than
the total of the 
15 approved claims, the amount appropriated shall be prorated

16 among the local governments having approved claims.

17 (d) Appeals and Adjudication.


18  (1) Local governments may appeal determinations made 
19 by State agencies
acting pursuant to subsection (c) above. 
20 The
appeal must be submitted to the State Mandates Board of 
21 Review created by
Section 9.1 of this Act within 60 days 
22 following the date of receipt of the
determination being 
23 appealed. The appeal must include evidence as to the
extent 
24 to which the mandate has been carried out in an effective 
25 manner and
executed without recourse to standards of 
26 staffing or expenditure higher than
specified in the 
 
 
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1 mandatory statute, if such standards are specified in the

2 statute. The State Mandates Board of Review, after 
3 reviewing
the evidence submitted to it, may increase or 
4 reduce the amount of a
reimbursement claim. The decision of 
5 the State Mandates Board of Review shall be final subject 
6 to judicial review. However, if sufficient
funds have not 
7 been appropriated, the Department shall notify the General

8 Assembly of such cost, and appropriations for such costs 
9 shall be included in a
supplemental appropriation bill.


10  (2) A local government may also appeal directly to the 
11 State Mandates
Board of Review in those situations in which 
12 the Department of Commerce and
Economic Opportunity or 
13 State Board of Education does not act upon the local 
14 government's application for
reimbursement or request for 
15 mandate determination submitted under this Act.
The appeal 
16 must include evidence that the application for 
17 reimbursement or
request for mandate determination was

18 properly filed and should have been reviewed by the 
19 Department or State Board of Education.


20  An appeal may be made to the Board if the Department 
21 does not respond to a
local government's application for 
22 reimbursement or request for mandate
determination within 
23 120 days after filing
the application or request. In no 
24 case, however, may an appeal be brought more
than one year 
25 after the application or request is filed with the 
26 Department.

 
 
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1(Source: P.A. 94-793, eff. 5-19-06.)