IL HB1753

Expands pathways for designating a municipality as a "financially distressed city" beyond just municipal request—the State Comptroller can now initiate a preliminary review based on unpaid debts, missed pension payments, bond defaults, low credit ratings, citizen petitions (25% of electors), or legislative resolution

Creates a formal review team process including the State Comptroller, Governor's Office of Management and Budget director, and legislative appointees to investigate municipal finances and issue a final report within 60 days determining whether a financial emergency exists

Authorizes the Governor to certify and designate a municipality as financially distressed by proclamation after receiving the review team's final report, bypassing the previous requirement for General Assembly joint resolution

Waives State grant matching requirements for financially distressed cities unless federal funds mandate the match, and prohibits the financially distressed designation from negatively affecting State grant award decisions or amounts

Empowers a municipality's Financial Advisory Authority to file circuit court actions to enforce compliance if the city's corporate authorities or employees materially violate the Financially Distressed City Law, after providing 15 days written notice to correct violations