Update on Proposed Bill Requiring Local Government Expense Policies

Update on Proposed Bill Requiring Local Government Expense Policies

  Tuesday, June 21, 2016    Julie Tappendorf

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On April 21, 2016 we reported on HB 4379, which had passed the Illinois House and was under consideration by the Illinois Senate.  The bill has since passed both legislative chambers and has been sent to the Governor for his consideration.  HB 4379 requires school districts, community college districts and non-home rule municipalities to adopt a policy, by ordinance or resolution, regulating reimbursements of travel, meals, and lodging expenses for all officers and employees.

The policy must address the following:

1. The type of business eligible for reimbursement;
2. The maximum allowable reimbursement for each expense; and
3. Creation of a standardized form for submission of expenses. The form must address (a) estimated costs or actual receipts for costs incurred, (b) name and job title of officer or employee, (c) date of travel and a description of the event.

Any expense exceeding the maximum allowable amount for such expense and all expenses for members of the governing body must be approved by a roll call vote of the governing body.  Expenses exceeding the maximum allowed under the policy may be reimbursed only if the governing body finds emergency or other extraordinary circumstances.

The bill prohibits reimbursements for entertainment defined as shows, amusements, theater, circuses, sporting events or other public and private entertainment or amusement.

The bill also prohibits all reimbursements unless a policy, in compliance with the statute, is adopted by the governing body.

Affected governmental entities should consult with their attorneys and be ready to develop a compliant policy if this bill is approved by the Governor.

Post Authored by Steve Mahrt, Ancel Glink