LOCAL GOV FRAUD TASK FORCE ACT

Illinois General Assembly - Full Text of SB3617

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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB3617

Introduced 2/5/2026, by Sen. Li Arellano, Jr.

SYNOPSIS AS INTRODUCED:

New Act

Creates the Local Government Fraud Prevention Task Force Act.
Requires the Task Force to make recommendations for improving fraud
prevention, detection, and investigation in local government including:
(1) monitoring the creation and reporting of bank accounts used by local
governments; (2)expanding the investigative and prosecutorial capabilities
of the State in regard to fraud at the local level; (3) examining the scope
and standard practices of government auditing and accounting; (4)
examining existing transparency laws; and (5) exploring possibilities for
training new government officials on financial oversight responsibilities
and powers. Provides that, the Department of Central Management Services
shall provide administrative support to the Task Force as needed. Provides
that, on or before December 31, 2026, the Task Force shall report its
recommendations by filing copies of its report with the Governor and the
General Assembly. Dissolves the Task Force upon the filing of the report.
Provides that the Act is repealed on January 1, 2028. Effective
immediately.
LRB104 13782 RTM 26549 b

A BILL FOR

SB3617
LRB104 13782 RTM 26549 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 Fraud Prevention Task Force Act.

6

Section 5.
Local Government Fraud Prevention Task Force.
7
The Local Government Fraud Prevention Task Force is
8
established. The Task Force is specifically charged with
9
advising the General Assembly on steps needed to modernize and
10
improve fraud prevention, detection, and investigation in
11
local governments.

12

Section 10.
Duties.
The Task Force shall make
13
recommendations to the General Assembly on how to prevent,
14
detect, and investigate fraud at the local government level.
15
The Task Force's recommendations shall include recommendations
16
regarding the following actions, which may be taken to improve
17
fraud prevention, detection, and investigation:
18

(1) monitoring the creation and reporting of bank
19

accounts used by local governments;
20

(2) expanding the investigative and prosecutorial
21

capabilities of the State in regard to corruption and
22

fraud at the local level;

SB3617
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LRB104 13782 RTM 26549 b
1

(3) examining the scope and standard practices of
2

government auditing and accounting;
3

(4) examining existing transparency laws; and
4

(5) exploring possibilities for training new local
5

government officials on financial oversight
6

responsibilities and powers.

7

Section 15.
Membership.
The Task Force shall consist of
8
the following members:
9

(1) a member of the General Assembly, appointed by the
10

Speaker of the House of Representatives;
11

(2) a member of the General Assembly, appointed by the
12

Minority Leader of the House of Representatives;
13

(3) a member of the General Assembly, appointed by the
14

President of the Senate;
15

(4) a member of the General Assembly, appointed by the
16

Minority Leader of the Senate;
17

(5) a representative from the Illinois Municipal
18

League, appointed by the Governor;
19

(6) a representative of counties in the State,
20

appointed by the Governor;
21

(7) a representative of townships in the State,
22

appointed by the Governor;
23

(8) an active certified fraud examiner, appointed by
24

the Governor;
25

(9) a retired certified fraud examiner with experience

SB3617
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LRB104 13782 RTM 26549 b
1

on Illinois cases, appointed by the Governor;
2

(10) a representative of the Illinois State Police and
3

other relevant law enforcement agencies, appointed by the
4

Governor; and
5

(11) a current or retired prosecutor with experience
6

prosecuting fraud against local governments in Illinois,
7

appointed by the Governor.
8

All members of the Task Force shall serve without
9
compensation. The appointing authorities shall make
10
appointments to the Task Force as soon as practicable after
11
the effective date of this Act. At the initial meeting of the
12
Task Force, the members of the Task Force shall elect 2
13
co-chairs from among the members of the Task Force appointed
14
under paragraphs (1), (2), (3), and (4).

15

Section 20.
Meetings.
The Task Force shall hold its
16
initial meeting within 120 days of the effective date of this
17
Act. Subsequent meetings of the Task Force shall convene at
18
the call of the co-chairs of the Task Force.

19

Section 25.
Support.
The Department of Central Management
20
Services shall provide administrative support to the Task
21
Force as needed.

22

Section 30.
Report.
On or before December 31, 2026, the
23
Task Force shall report its recommendations by filing copies

SB3617
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LRB104 13782 RTM 26549 b
1
of a report with the Governor and the General Assembly. Upon
2
filing its report, the Task Force is dissolved.

3

Section 35.
Repeal.
This Act is repealed on January 1,
4
2028.

5

Section 99.
Effective date.
This Act takes effect upon
6
becoming law.

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