summary
Introduced
01/24/2025
01/24/2025
In Committee
04/11/2025
04/11/2025
Crossed Over
Passed
Dead
06/01/2026
06/01/2026
Introduced Session
Potential new amendment
104th General Assembly
Bill Summary
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.
AI Summary
This bill amends the Financially Distressed City Law to expand and streamline the process for identifying and supporting financially struggling municipalities in Illinois. The bill allows the State Comptroller to initiate a review of a city's financial health through a new, more comprehensive process, which includes multiple triggers for a potential financial stress review such as unpaid creditor claims, pension payment issues, employee wage delays, bond payment defaults, and other financial indicators. If the Comptroller determines probable financial stress exists, a review team will be established to conduct a thorough examination of the municipality's finances and submit a detailed report. The bill also provides important protections for financially distressed cities, including waiving grant matching requirements and ensuring that a city's distressed status cannot negatively impact its ability to receive state grants. Additionally, the bill grants the city's Financial Advisory Authority the power to take legal action in circuit court if municipal authorities materially violate the law's provisions. These changes are designed to provide more proactive and supportive intervention for municipalities experiencing significant financial challenges, with the ultimate goal of helping these cities maintain essential services and financial stability.
Committee Categories
Government Affairs
Sponsors (2)
Last Action
House Floor Amendment No. 1 Rule 19(c) / Re-referred to Rules Committee (on 04/11/2025)
Bill Topics
Government Operations
- ‐ Government Efficiency and Bureaucratic Oversight
- ‐ Intergovernmental Relations
Local Government
- ‐ General Local Government
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location | Created |
|---|---|---|
| State Bill Page | https://www.ilga.gov/legislation/BillStatus.asp?DocNum=1753&GAID=18&DocTypeID=HB&SessionID=114&GA=104 | 01/24/2025 |
| House Amendment 001 | https://www.ilga.gov/Legislation/BillStatus/FullText?LegDocId=204017&DocName=10400HB1753ham001&DocNum=1753&DocTypeID=HB&LegID=159108&GAID=18&SessionID=114&SpecSess=&Session= | 04/04/2025 |
| BillText | https://www.ilga.gov/legislation/104/HB/10400HB1753.htm | 01/24/2025 |
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