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Illinois Municipal League Statehouse Briefing

April 3, 2017 | Legislative briefs

The following bills, organized by category, may be of interest to IGFOA members. Each bill is presently advancing through the legislative process. The status of each bill at the end of each summary is as of March 28, 2017.


Restoration of 10% LGDF Share 
HB 278 would restore the previously long-standing local government share of the state income tax to 10% of total collections in February 2020. The 10% share was reduced to 6% of total collections when the temporary income tax was increased in 2011. The rate has since increased to 8% of total collections based upon the schedule provided in the income tax law. According to the Illinois Department of Revenue (IDOR), the bill would allocate an additional $877 million to local governments from FY2017 – FY2021 based on current income tax revenue projections.

Although the distribution rate was adjusted downward in 2011, the effect was to hold municipalities harmless at the existing dollar amount because the lower LGDF distribution rate was applied to the higher revenue collections from the temporary tax increase. Under current law, the local government share of the income tax is scheduled to rise to almost 10% of total collections by February 2025. HB 278 would accelerate that schedule, and provide a full 10% LGDF share five years sooner than the schedule provided under current law. IML supports the bill. PASSED HOUSE AND CURRENTLY IN SENATE

Violations of Governmental Joint Purchasing Act 
HB 2424 (Rep. Breen, R-Lombard) would amend the Governmental Joint Purchasing Act to provide that if any contract or amendment to a contract is entered into or purchase or expenditure of funds is made at any time in violation of the Act or other laws, the contract or amendment may be declared void by the chief procurement officer or may be ratified and affirmed, provided the chief procurement officer determines that ratification is in the best interest of the governmental unit. If a contract is ratified and affirmed, it shall be without prejudice to the governmental unit's right to any appropriate damages. IML does not presently have a position on this bill. HOUSE FLOOR

Bonds Secured by Statutory Lien 
HB 2584 (Rep. DeLuca, D-Chicago Heights) would amend the Local Government Debt Reform Act to provide that all bonds, including general obligation bonds and revenue bonds issued under the Act, shall be secured by a statutory lien on all revenues received or entitled to be received. The statutory lien shall automatically attach from the time the bonds are issued without further action or authorization by the governing authority of the local public entity. The lien shall be a first priority lien unless the bonds so otherwise provide. The provisions apply to all bonds issued by a local public entity, including bonds issued by a local public entity with home rule authority, and that the bonds shall have all of the protection afforded to special revenue bonds under the federal Bankruptcy Code. IML supports the bill. HOUSE FLOOR

TIF Limitation 
HB 2964 (Rep. Nekritz, D-Northbrook) was approved by the House Revenue and Finance Committee, but the sponsor indicated she might be willing to entertain an amendment intended to address concerns with the bill. IML has indicated to the sponsor that we oppose this legislation and will continue to engage her on this issue. The bill is also opposed by the Illinois Tax Increment Association (ITIA).

In its current form, HB 2964 would provide that when a redevelopment project area has been dissolved, completed or terminated under the Tax Increment Allocation Redevelopment Act, property within that redevelopment project area may not become part of another redevelopment project area for 15 years after the date the former redevelopment project area was dissolved, completed or terminated. IML opposes the bill. HOUSE FLOOR

Non-Home Rule Sales Tax 
HB 3187 (Rep. Meier, R-Highland) would amend the Illinois Municipal Code to increase the amount of non-home rule municipal retailers' occupation taxes, non-home rule municipal service occupation taxes, and non-home rule municipal use taxes a non-home rule municipality may impose from 1% to 1.5%. The bill also removes a restriction requiring the taxes to be imposed in 0.25% increments, but an amendment was filed to preserve the requirement that the taxes be imposed in 0.25% increments. IML supports the bill. HOUSE FLOOR


Part-Time Elective Office and Eligibility for IMRF 
HB 291 (Rep. Olsen, R-Downers Grove) would amend the Illinois Municipal Retirement Fund Article of the Illinois Pension Code to provide that a person who holds part-time elective office is not a participating employee with respect to that office, unless he or she (i) was elected to that office before the effective date of the amendatory Act and (ii) has elected while in that office to become a contributor. An elective office shall be presumed to be part-time if it normally requires the performance of duty during less than 1,000 hours a year for a participating municipality or instrumentality. The bill was approved by the House Personnel and Pensions Committee. IML has no position on the bill. HOUSE FLOOR

Eligibility for Service on IMRF Board 
HB 2966 (Rep. Andrade, D-Chicago) would amend the Illinois Municipal Retirement Fund (IMRF) Article of the Illinois Pension Code. In a provision that requires an additional contribution from a participating municipality or participating instrumentality for certain increases in reported earnings, changes a reference from "salary" to "reported earnings" and provides that the change is a clarification of existing law and is intended to be retroactive to January 1, 2012 (the effective date of Public Act 97-609). In a provision establishing the board of trustees, the bill provides that no person shall be eligible to become a trustee who does not have the minimum service credit in the Fund to qualify for a pension (instead of at least 8 years of creditable service). IML has no position on the bill. PASSED HOUSE AND CURRENTLY IN SENATE

Expanded Responsibility for Funding Firefighter Pension Benefits 
SB 1335 (Sen. Bush, D-Grayslake) amends the Downstate Firefighter Article of the Illinois Pension Code by requiring a unit of local government that employs a firefighter who is a full-time firefighter in a different downstate firefighter pension fund to make specified contributions to that downstate firefighter pension fund. It also establishes reporting requirements. The state Comptroller may intercept state funds in the event the unit of local government does not make its required contribution to the primary employer's downstate pension fund. The bill amends the State Mandates Act to require implementation without reimbursement. IML opposes the bill. SENATE FLOOR

Overtime Requirements under Minimum Wage Law 
HB 2749 (Rep. Guzzardi, D-Chicago) would amend the Minimum Wage Law to provide that the overtime requirements of the law do not apply to an employee employed in a bona fide executive, administrative or professional capacity as defined by or covered by the federal Fair Labor Standards Act of 1938 but compensated at a salary greater than $47,476 per year (rather than an amount specified by a federal regulation) or the weekly or monthly portion thereof or a greater salary as may be adopted by the U.S. Department of Labor. The amount would also increase annually by the percentage increase in the Consumer Price Index. IML does not presently have a position on the bill. HOUSE FLOOR

Vehicles Not Considered Earnings for IMRF Calculations 
SB 701 (Sen. Morrison, D-Deerfield) would amend the Illinois Municipal Retirement Fund (IMRF) Article. For a person who first becomes a participating employee on or after the effective date of the amendatory Act, vehicle allowances are excluded from the definition of "earnings." IML supports the bill. SENATE FLOOR

Expanded Use of MFT Funds 
SB 789 (Sen. Sandoval, D-Chicago) would expand the use of local motor fuel tax funds to include the operation costs of any public transportation service or capital improvements designed to improve or enhance pedestrian, bicycle or transit mobility, or for infrastructure used to support publicly or privately owned electric vehicles. IML does not presently have a position on the bill. SENATE FLOOR

Forfeiture of IMRF Benefits 
SB 896 (Sen. Althoff, R-Crystal Lake) would amend the Illinois Pension Code to provide for the forfeiture of benefits for any person who otherwise would receive a survivor benefit who is convicted of any felony relating to or arising out of or in connection with the service of the member from whom the benefit results. It also provides that all participants entering service after the effective date of the amendatory Act shall be deemed to have consented to that provision and that the changes under the amendatory Act shall not impair any contract or vested right acquired by a survivor before the effective date of the amendatory Act. IML supports the bill. SENATE FLOOR

Cessation of Pension Payments for Re-employed Police Chiefs and Police Officers 
HB 418 (Rep. Wehrli, R-Naperville) would amend the Downstate Police Article of the Illinois Pension Code to provide that if a person who is receiving a police pension becomes employed as a chief of police, the person must so notify the pension fund paying the pension and any other fund in which the person has service credit, and the pension shall be suspended until the employment as chief terminates. If the person elects to participate in IMRF, the person must also notify IMRF of those police pension funds. The bill provides that if a person who is receiving a police pension enters service as a police officer with a different municipality, the person must so notify the pension fund paying the pension, and the pension shall be suspended until the service terminates, unless the different municipality had a population of less than 6,000 at the time of the return to active service. The bill would apply to persons who first enter service after the effective date of the amendatory Act. IML does not presently have a position on the bill. HOUSE FLOOR

Illinois Municipal League 
Phone: 217-525-1220 
Fax: 217-525-7438 
Email: IMLLegislation@iml.org 
Web: www.iml.org 
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