Illinois General Assembly - Full Text of HB3418
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Full Text of HB3418  100th General Assembly


Rep. Sonya M. Harper

Filed: 4/25/2017





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2    AMENDMENT NO. ______. Amend House Bill 3418 by replacing
3everything after the enacting clause with the following:
4    "Section 5. The State Finance Act is amended by adding
5Section 5.878 to Article 5 as follows:
6    (30 ILCS 105/5.878 new)
7    Sec. 5.878. The Urban Agricultural Zone Fund.
8    Section 10. The Illinois Municipal Code is amended by
9adding Division 15.4 to Article 11 as follows:
10    (65 ILCS 5/Art. 11 Div. 15.4 heading new)

12    (65 ILCS 5/11-15.4-5 new)
13    Sec. 11-15.4-5. Definitions. As used in this Division:



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1    "Agricultural product" means an agricultural,
2horticultural, viticultural, or vegetable product either in
3its natural or processed state, that has been produced,
4processed, or otherwise had value added to it in this State.
5"Agricultural product" includes, but is not limited to, growing
6of grapes that will be processed into wine; bees; honey; fish
7or other aquacultural product; planting seed; livestock or
8livestock product; forestry product; and poultry or poultry
10    "Aquaculture" and "aquatic products" have the meanings
11given to those terms in Section 4 of the Aquaculture
12Development Act.
13    "Blighted area" means that portion of a municipality within
14which the corporate authorities of the municipality determines
15that by reason of age, obsolescence, inadequate or outmoded
16design, or physical deterioration have become economic and
17social liabilities, and that these conditions are conducive to
18ill health, transmission of disease, crime, or inability to pay
19reasonable taxes. "Blighted area" does not include farmland
20assessed under Section 10-110 of the Property Tax Code.
21    "Department" means the Department of Agriculture.
22    "Domesticated animal" means cattle; calves; sheep; swine;
23ratite birds, including, but not limited to, ostrich and emu;
24llamas; alpaca; buffalo; elk documented as obtained from a
25legal source and not from the wild; goats; horses and other
26equines; or rabbits raised in confinement for human



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2    "Grower UAZ" means a type of UAZ:
3        (1) that can either grow produce, raise livestock, or
4    produce other value-added agricultural products; and
5        (2) that does not exceed 50 laying hens, 650 broiler
6    chickens, or 30 domesticated animals.
7    "Livestock" means cattle; calves; sheep; swine; ratite
8birds including but not limited to ostrich and emu; aquatic
9products obtained through aquaculture; llamas; alpaca;
10buffalo; elk documented as obtained from a legal source and not
11from the wild; goats; horses and other equines; or rabbits
12raised in confinement for human consumption.
13    "Locally grown" means a product that was grown or raised in
14the same county or adjoining county in which the UAZ is
16    "Meat" means any edible portion of livestock or poultry
18    "Meat product" means anything containing meat intended for
19or capable of use for human consumption, which is derived, in
20whole or in part, from livestock or poultry.
21    "Poultry" means any domesticated bird intended for human
23    "Processing UAZ" means a type of UAZ:
24        (1) that processes livestock or poultry for human
25    consumption;
26        (2) that meets federal and State processing laws and



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1    standards; or
2        (3) that is a qualifying small business approved by the
3    Department.
4    "Public colleges and universities" has the meaning given to
5that term in Section 5 of the Higher Education Veterans Service
7    "Qualifying small business" means those enterprises which
8are established within an Urban Agricultural Zone subsequent to
9its creation, and which meet the definition established for the
10federal Small Business Administration and set forth in Section
11121.301 of Part 121 of Title 13 of the Code of Federal
13    "Sales tax amounts" means the amount of taxes paid under
14the Retailers' Occupation Tax Act, the Use Tax Act, the Service
15Use Tax Act, the Service Occupation Tax Act, the Municipal
16Retailers' Occupation Tax Act, and the Municipal Service
17Occupation Tax Act by retailers and servicemen on transactions
18at places located in a UAZ.
19    "Urban agricultural zone" or "UAZ" means a zone within a
20metropolitan statistical area, as defined by the United States
21Office of Budget and Management, which has one or more of the
22following entities that is a qualifying small business, and
23approved by the Department, as follows:
24        (1) any organization or person who grows produce or
25    other agricultural products;
26        (2) any organization or person that raises livestock or



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1    poultry;
2        (3) any organization or person who processes livestock
3    or poultry; or
4        (4) any organization that sells at a minimum 75%
5    locally grown food.
6    "Value-added agricultural products" means any product or
7products that are the result of:
8        (1) using an agricultural product grown in this State
9    to produce a meat or dairy product in this State;
10        (2) a change in the physical state or form of the
11    original agricultural product;
12        (3) an agricultural product grown in this State which
13    has had its value enhanced by special production methods
14    such as organically grown products; or
15        (4) a physical segregation of a commodity or
16    agricultural product grown in this State that enhances its
17    value such as identity preserved marketing systems.
18    "Vending UAZ" means a type of UAZ:
19        (1) that sells produce, meat, or locally grown
20    value-added agricultural products;
21        (2) that is able to accept food stamps under the
22    provisions of the Supplemental Nutrition Assistance
23    Program as a form of payment; and
24        (3) that is a qualifying small business that is
25    approved by the Department for a UAZ vendor license.



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1    (65 ILCS 5/11-15.4-10 new)
2    Sec. 11-15.4-10. Urban agricultural zone board.
3    (a) The corporate authorities of a municipality planning to
4seek designation of an urban agricultural zone shall establish
5an urban agricultural zone board. There shall be 7 members on
6the board. One member of the board shall be appointed by the
7school district or districts located within the area proposed
8for designation as an urban agricultural zone. Two members of
9the board shall be appointed by other affected taxing units of
10local government. The remaining 4 members shall be appointed by
11the president or mayor of the municipality. The 4 members
12chosen by the president or mayor shall all be residents of the
13municipality in which the UAZ is to be located, and at least
14one of the 4 members shall have experience in or represent an
15organization associated with sustainable agriculture, urban
16farming, community gardening, or any of the activities or
17products authorized by this Division for UAZs.
18    (b) The school district member and the 2 affected taxing
19unit of local government members shall each have initial terms
20of 5 years. Of the 4 members appointed by the president or
21mayor, 2 shall have initial terms of 4 years, and 2 shall have
22initial terms of 3 years. Thereafter, members shall serve terms
23of 5 years. Each member shall hold office until a successor has
24been appointed. All vacancies shall be filled in the same
25manner as the original appointment. For inefficiency, neglect
26of duty, or misconduct in office, a member of the board may be



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1removed by the applicable appointing authority.
2    (c) The members of the board annually shall elect a chair
3from among the members.
4    (d) A majority of the members shall constitute a quorum of
5the board for the purpose of conducting business and exercising
6the powers of the board and for all other purposes. Action may
7be taken by the board upon a vote of a majority of the members
9    (e) The role of the board shall be to conduct the
10activities necessary to advise the corporate authorities of the
11municipality on the designation of an urban agricultural zone
12and any other advisory duties as determined by the corporate
13authorities of the municipality. The role of the board after
14the designation of an urban agricultural zone shall be review
15and assessment of zone activities.
16    (65 ILCS 5/11-15.4-15 new)
17    Sec. 11-15.4-15. Application for an urban agricultural
18zone; review; dissolution.
19    (a) A person or organization may submit to the municipal
20clerk an application to develop a UAZ in a blighted area. The
21application shall demonstrate or identify on the application:
22        (1) if the person or organization is a grower UAZ,
23    processing UAZ, vending UAZ, or a combination of all three
24    types of UAZs in which case the person or organization
25    shall meet the requirements of each type of UAZ in order to



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1    qualify;
2        (2) the number of jobs to be created;
3        (3) the types of products to be produced;
4        (4) if applying for a vending UAZ, the ability to
5    accept food stamps under the provisions of the Supplemental
6    Nutrition Assistance Program if selling products to
7    consumers;
8        (5) the geographic description of the area that will be
9    included in the UAZ;
10        (6) all taxing units of local government impacted by
11    the proposed UAZ; and
12        (7) the amount of property taxes to be abated, if any,
13    under Section 11-15.4-25, including which taxing units of
14    local government would be impacted by the abatement.
15    (b) A municipality shall review and modify the application
16as necessary before either approving or denying the request to
17establish a UAZ.
18    (c) Approval of the UAZ by a municipality shall be reviewed
195 and 10 years after the development of the UAZ. After 25
20years, the UAZ shall dissolve. If the municipality finds during
21its review that the UAZ is not meeting the requirements set out
22in this Division, the municipality may dissolve the UAZ by
23ordinance or resolution.
24    (65 ILCS 5/11-15.4-20 new)
25    Sec. 11-15.4-20. Notice and public hearing; urban



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1agricultural zone ordinance. Prior to the adoption of an
2ordinance designating an urban agricultural zone, the urban
3agricultural zone board shall fix a time and place for a public
4hearing and notify each taxing unit of local government located
5wholly or partially within the boundaries of the proposed urban
6agricultural zone. The board shall send, by certified mail, a
7notice of the hearing to all taxing units of local government
8and shall publish notice of such hearing in a newspaper of
9general circulation in the area to be affected by the
10designation at least 20 days prior to the hearing but not more
11than 30 days prior to the hearing. The notice shall state the
12time, location, date, and purpose of the hearing. At the public
13hearing, any interested person or affected taxing unit of local
14government may file with the board written objections or
15comments and may be heard orally in respect to, any issues
16embodied in the notice. The board shall hear and consider all
17objections, comments, and other evidence presented at the
18hearing. The hearing may be continued to another date without
19further notice other than a motion to be entered upon the
20minutes fixing the time and place of the subsequent hearing.
21    Following the conclusion of the public hearing required
22under this Section, the corporate authorities of the
23municipality may adopt an ordinance designating an urban
24agricultural zone.
25    (65 ILCS 5/11-15.4-25 new)



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1    Sec. 11-15.4-25. Taxation of property; water rates and
3    (a) If authorized by the urban agricultural zone ordinance
4under Section 11-15.4-20, real property located within a UAZ
5that is used for growing or raising of agricultural products is
6not subject to assessment or payment of ad valorem taxes on
7real property imposed by the State or units of local government
8specified in the ordinance for a period of tax abatement of up
9to 25 years as specified by ordinance under Section 11-15.4-20
10except in an amount not greater than the amount of taxes
11assessed in the levy year immediately preceding the levy year
12during which the UAZ was designated. The amounts of the tax
13assessed used for growing or raising of agricultural products
14may not be increased during the period stated in the ordinance
15as long as the real property is used in furtherance of the
16activities provided under this Division. At the conclusion of
17the period of abatement provided by the ordinance, the property
18used for growing or raising of agricultural products shall then
19be reassessed. If only a portion of real property is used as a
20UAZ, then only that portion of real property shall be exempt
21from assessment or payment of ad valorem taxes on the property
22as provided by this Section. Parcels of property assessed under
23Section 10-110 of the Property Tax Code are not eligible for
24the abatement provided in this subsection (a).
25    (b) Any sales tax amounts received from the sale of
26agricultural products grown or produced and sold in the UAZ



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1shall be deposited in the Urban Agricultural Zone Fund
2established in Section 11-15.4-30 of this Division. An amount
3equal to 1% shall be retained by the Director of the Department
4of Revenue for deposit in the General Revenue Fund to offset
5the costs of collection.
6    (c) Any entity providing water to the UAZ may authorize a
7water user who grows or raises agricultural products in the UAZ
8to (1) pay wholesale water rates, if available, or (2) pay 50%
9of the standard connection charge.
10    (65 ILCS 5/11-15.4-30 new)
11    Sec. 11-15.4-30. The Urban Agricultural Zone Fund.
12    (a) The Urban Agricultural Zone Fund, a special fund
13created in the State treasury, shall consist of moneys
14collected under Section 5-45025 of Article 5 of the Counties
15Code and Section 11-15.4-25 of this Division. Except as
16provided for in subsection (b), the Comptroller shall order
17transferred before the end of each quarter of the fiscal year,
18and the Treasurer shall transfer, an amount equal to the moneys
19collected from the municipal UAZs within the previous quarter.
20    (b) A school district or school districts that have a UAZ
21in their district territory may apply to the Department for
22money in the fund to be used for the development of curriculum
23on or the implementation of urban farming practices under the
24guidance of a public college or university. The funds are to be
25distributed on a competitive basis within the school district



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1or districts in which the UAZ is located pursuant to rules
2published by the Department, with special consideration given
3to the relative number of students eligible for free and
4reduced-price lunches attending the schools within the
5district or districts. The Department may designate up to 10%
6of moneys from quarterly sales tax amounts in the Agricultural
7Zone Fund to school districts under this subsection (b). The
8Department shall notify the Comptroller of any moneys awarded
9to a school district under this subsection (b) no later than 14
10days before the end of each quarter and the Comptroller shall
11reduce the amount ordered transferred to the municipality by
12that amount.
13    (65 ILCS 5/11-15.4-35 new)
14    Sec. 11-15.4-35. Severability. The provisions of this
15Division are severable under Section 1.31 of the Statute on
17    Section 99. Effective date. This Act takes effect July 1,