Straight-ahead summaries built from the official bill text. We keep the source links front and center and leave the decision up to you.
HB5785 • 2026
LOCAL GOV SURPLUS FUNDS ACT
This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.
Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.
LOCAL GOV SURPLUS FUNDS ACT
Filed with the Clerk by Rep. Dan Ugaste
First Reading
Referred to Rules Committee
LOCAL GOV SURPLUS FUNDS ACT
Illinois General Assembly - Full Text of HB5785 Select Language × The Illinois General Assembly offers the Google Translate™ service for visitor convenience. In no way should it be considered accurate as to the translation of any content herein. Visitors of the Illinois General Assembly website are encouraged to use other translation services available on the internet. The English language version is always the official and authoritative version of this website. NOTE: To return to the original English language version, select the "Show Original" button on the Google Translate™ menu bar at the top of the window. Choose Language English Afrikaans Albanian Arabic Armenian Azerbaijani Basque Bengali Bosnian Catalan Croatian Czech Danish Dutch Esperanto Estonian Filipino Finnish French Galician Georgian German Greek Gujarati Haitian Creole Hausa Hawaiian Hebrew Hindi Hungarian Icelandic Indonesian Interlingua Interlingue Inuktitut Irish Italian Japanese Javanese Kannada Khmer Korean Latin Latvian Lithuanian Luxembourgish Macedonian Malagasy Malayalam Maltese Maori Marathi Myanmar Nepali Norwegian Odia Pashto Punjabi Romanian Russian Samoan Sango Sanskrit Sardinian Sindhi Sinhala Slovak Slovenian Somali Southern Sotho Spanish Sundanese Swahili Swedish Tamil Telugu Thai Tigrinya Tonga Turkish Ukrainian Urdu Vietnamese Welsh Xhosa Yiddish Yoruba Zulu Powered by Translate Close Illinois General Assembly Top Navigation Bar Translate Learn Select General Assembly Search the 104th General Assembly Enter search terms for legislation, members, committees, or schedules. ILGA.GOV LEGISLATION & LAWS Bills & Resolutions Public Acts Illinois Compiled Statutes Illinois Constitution Search Legislation Glossary Guide Reports & Inquiry Legislative Reports Special Reports FTP Site Legislator Lookup Capitol Complex Phone Numbers Rules & Regulations Illinois Register Administrative Rules Senate Members Schedules Committees Request for Remote Testimony Journals Transcripts Rules Audio/Video FOIA Information Senate Employment Opportunities Media Guidelines House Members Schedules Committees Submit testimony for House Committees Journals Transcripts Rules Audio/Video FOIA Information House Employment Opportunities Log In Mobile Top Bar Search the 104th General Assembly Enter keywords to search the Illinois General Assembly website. Full Text of HB5785 Home Legislation Full Text HB5785 - 104th General Assembly Bill Status Full Text Votes Witness Slips Select Menu Bill Status Full Text Votes Witness Slips Printer Friendly Version Introduced Printer Friendly Version Introduced Open PDF 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB5785 Introduced 5/20/2026, by Rep. Dan Ugaste SYNOPSIS AS INTRODUCED: New Act Creates the Local Government Surplus Funds Limitation Act. Provides that no taxing district, other than a municipality with a population of less than 10,000 inhabitants, may hold more than 200% of the amount of the municipality's tax collections from the previous fiscal year in cash or cash-equivalent assets. Provides that, if, at the end of any fiscal quarter, the taxing district has more than that amount in cash or cash-equivalent assets, then the excess amount shall be refunded to taxpayers pro rata based on each taxpayer's percentage of the total levy for the previous year. Preempts the concurrent exercise of home rule powers. Effective immediately. LRB104 21571 HLH 36997 b A BILL FOR HB5785 LRB104 21571 HLH 36997 b 1 AN ACT concerning local government. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 1. Short title. This Act may be cited as the Local 5 Government Surplus Funds Limitation Act. 6 Section 5. Definitions. As used in this Act: 7 "Tax collections" means the aggregate amount collected by 8 the taxing district from property taxes and other taxes 9 imposed by the taxing district, but not including any fines or 10 fees imposed by the taxing district. 11 "Taxing district" has the meaning given to that term in 12 Section 1-150 of the Property Tax Code. 13 Section 10. Limit on surplus funds. For fiscal years 14 beginning on or after July 1, 2026, no taxing district, other 15 than a municipality with a population of less than 10,000 16 inhabitants, may hold more than 200% of the amount of the 17 municipality's tax collections from the previous fiscal year 18 in cash or cash-equivalent assets. If, at the end of any fiscal 19 quarter, the taxing district has more than that amount in cash 20 or cash-equivalent assets, then the excess amount shall be 21 refunded to taxpayers pro rata based on each taxpayer's 22 percentage of the total levy for the previous year. HB5785 - 2 - LRB104 21571 HLH 36997 b 1 Section 15. Home rule. A home rule unit may not regulate 2 tax collections in a manner that is inconsistent with this 3 Act. This Act is a limitation under subsection (i) of Section 6 4 of Article VII of the Illinois Constitution on the concurrent 5 exercise by home rule units of powers and functions exercised 6 by the State. 7 Section 99. Effective date. This Act takes effect upon 8 becoming law. Footer Disclaimer This site is maintained for the Illinois General Assembly by the Legislative Information System, 705 Stratton Building, Springfield, Illinois 62706. Contact ILGA Webmaster ILGA.gov uses cookies to ensure you get the best experience on our website. By continuing to browse ILGA.gov you consent to our use of cookies. Read About Cookies ILGA.GOV 2026 ILGA.gov | All Rights Reserved | ADA | Disclaimers | Learn This site is maintained for the Illinois General Assembly by the Legislative Information System, 705 Stratton Building, Springfield, Illinois 62706. Contact ILGA Webmaster ILGA.gov uses cookies to ensure you get the best experience on our website. By continuing to browse ILGA.gov you consent to our use of cookies. Read About Cookies ILGA.GOV 2026 ILGA.gov | All Rights Reserved | ADA | Disclaimers | Learn