Full Text of SB0217 102nd General Assembly
SB0217ham001 102ND GENERAL ASSEMBLY | Rep. Michael J. Zalewski Filed: 10/26/2021
| | 10200SB0217ham001 | | LRB102 02726 HLH 30235 a |
|
| 1 | | AMENDMENT TO SENATE BILL 217
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 217 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 3. The Illinois Power Agency Act is amended by | 5 | | changing Section 1-130 as follows: | 6 | | (20 ILCS 3855/1-130) | 7 | | (Section scheduled to be repealed on January 1, 2022)
| 8 | | Sec. 1-130. Home rule preemption. | 9 | | (a) The authorization to impose any new taxes or fees | 10 | | specifically related to the generation of electricity by, the | 11 | | capacity to generate electricity by, or the emissions into the | 12 | | atmosphere by electric generating facilities after the | 13 | | effective date of this Act is an exclusive power and function | 14 | | of the State. A home rule unit may not levy any new taxes or | 15 | | fees specifically related to the generation of electricity by, | 16 | | the capacity to generate electricity by, or the emissions into |
| | | 10200SB0217ham001 | - 2 - | LRB102 02726 HLH 30235 a |
|
| 1 | | the atmosphere by electric generating facilities after the | 2 | | effective date of this Act. This Section is a denial and | 3 | | limitation on home rule powers and functions under subsection | 4 | | (g) of Section 6 of Article VII of the Illinois Constitution. | 5 | | (b) This Section is repealed on January 1, 2023 January 1, | 6 | | 2022 .
| 7 | | (Source: P.A. 100-1157, eff. 12-19-18; 101-639, eff. 6-12-20.) | 8 | | Section 5. The Property Tax Code is amended by changing | 9 | | Sections 15-37 and 21-260 as follows: | 10 | | (35 ILCS 200/15-37) | 11 | | Sec. 15-37. Educational trade schools. Property that is | 12 | | owned or leased by a non-profit trust fund and used | 13 | | exclusively for the purposes of educating and training | 14 | | individuals for occupational, trade, and technical careers and | 15 | | is certified by the United States Department of Labor as | 16 | | registered with the Office of Apprenticeship is exempt.
| 17 | | (Source: P.A. 102-16, eff. 6-17-21.)
| 18 | | (35 ILCS 200/21-260)
| 19 | | Sec. 21-260. Collector's scavenger sale. Upon the county | 20 | | collector's
application under Section 21-145, to be known as | 21 | | the Scavenger Sale
Application, the Court shall enter judgment | 22 | | for the general taxes, special
taxes, special assessments, | 23 | | interest, penalties and costs as are included in
the |
| | | 10200SB0217ham001 | - 3 - | LRB102 02726 HLH 30235 a |
|
| 1 | | advertisement and appear to be due thereon after allowing an | 2 | | opportunity to
object and a hearing upon the objections as | 3 | | provided in Section 21-175, and
order those properties sold by | 4 | | the County Collector at public sale, or by electronic | 5 | | automated sale if the collector chooses to conduct an | 6 | | electronic automated sale pursuant to Section 21-261, to the
| 7 | | highest bidder for cash, notwithstanding the bid may be less | 8 | | than the full
amount of taxes, special taxes, special | 9 | | assessments, interest, penalties and
costs for which judgment | 10 | | has been entered.
| 11 | | (a) Conducting the sale; bidding sale - Bidding . All | 12 | | properties shall be offered for
sale in consecutive order as | 13 | | they appear in the delinquent list. The minimum
bid for any | 14 | | property shall be $250 or one-half of the tax if the total
| 15 | | liability is less than $500. For in-person scavenger sales, | 16 | | the successful bidder shall pay the
amount of the minimum bid | 17 | | to the County Collector by the end of the business day on which | 18 | | the bid was placed. That amount shall be paid in cash, by | 19 | | certified or
cashier's check, by money order, or, if the
| 20 | | successful bidder is a governmental unit, by a check issued by | 21 | | that
governmental unit. For electronic automated scavenger | 22 | | sales, the successful bidder shall pay the minimum bid amount | 23 | | by the close of the business day on which the bid was placed. | 24 | | That amount shall be paid online via ACH debit or by the | 25 | | electronic payment method required by the county collector. | 26 | | For in-person scavenger sales, if the bid exceeds the minimum |
| | | 10200SB0217ham001 | - 4 - | LRB102 02726 HLH 30235 a |
|
| 1 | | bid, the
successful bidder shall pay the balance of the bid to | 2 | | the county collector in
cash, by certified or cashier's check, | 3 | | by money order, or, if the
successful bidder is a governmental | 4 | | unit, by a check issued by that
governmental unit
by the close | 5 | | of the
next business day. For electronic automated scavenger | 6 | | sales, the successful bidder shall pay, by the close of the | 7 | | next business day, the balance of the bid online via ACH debit | 8 | | or by the electronic payment method required by the county | 9 | | collector. If the minimum bid is not paid at the time of sale | 10 | | or if
the balance is not paid by the close of the next business | 11 | | day, then the sale is
void and the minimum bid, if paid, is | 12 | | forfeited to the county general fund. In
that event, the | 13 | | property shall be reoffered for sale within 30 days of the last
| 14 | | offering of property in regular order. The collector shall | 15 | | make available to
the public a list of all properties to be | 16 | | included in any reoffering due to the
voiding of the original | 17 | | sale. The collector is not required to serve or
publish any | 18 | | other notice of the reoffering of those properties. In the | 19 | | event
that any of the properties are not sold upon reoffering, | 20 | | or are sold for less
than the amount of the original voided | 21 | | sale, the original bidder who failed to
pay the bid amount | 22 | | shall remain liable for the unpaid balance of the bid in an
| 23 | | action under Section 21-240. Liability shall not be reduced | 24 | | where the bidder
upon reoffering also fails to pay the bid | 25 | | amount, and in that event both
bidders shall remain liable for | 26 | | the unpaid balance of their respective bids. A
sale of |
| | | 10200SB0217ham001 | - 5 - | LRB102 02726 HLH 30235 a |
|
| 1 | | properties under this Section shall not be final until | 2 | | confirmed by the
court.
| 3 | | (b) Confirmation of sales. The county collector shall file | 4 | | his or her
report of sale in the court within 30 days of the | 5 | | date of sale of each
property. No notice of the county | 6 | | collector's application to confirm the sales
shall be required | 7 | | except as prescribed by rule of the court. Upon
confirmation, | 8 | | except in cases where the sale becomes void under Section | 9 | | 22-85,
or in cases where the order of confirmation is vacated | 10 | | by the court, a sale
under this Section shall extinguish the in | 11 | | rem lien of the general taxes,
special taxes and special | 12 | | assessments for which judgment has been entered and a
| 13 | | redemption shall not revive the lien. Confirmation of the sale | 14 | | shall in no
event affect the owner's personal liability to pay | 15 | | the taxes, interest and
penalties as provided in this Code or | 16 | | prevent institution of a proceeding under
Section 21-440 to | 17 | | collect any amount that may remain
due after the sale.
| 18 | | (c) Issuance of tax sale certificates. Upon confirmation | 19 | | of the sale , the
County Clerk and the County Collector shall | 20 | | issue to the purchaser a
certificate of purchase in the form | 21 | | prescribed by Section 21-250 as near as may
be. A certificate | 22 | | of purchase shall not be issued to any person who is
ineligible | 23 | | to bid at the sale or to receive a certificate of purchase | 24 | | under
Section 21-265.
| 25 | | (d) Scavenger Tax Judgment, Sale and Redemption Record; | 26 | | sale Record - Sale of
parcels not sold. The county collector |
| | | 10200SB0217ham001 | - 6 - | LRB102 02726 HLH 30235 a |
|
| 1 | | shall prepare a Scavenger Tax Judgment,
Sale and Redemption | 2 | | Record. The county clerk shall write or stamp on the
scavenger | 3 | | tax judgment, sale, forfeiture and redemption record opposite | 4 | | the
description of any property offered for sale and not sold, | 5 | | or not confirmed for
any reason, the words "offered but not | 6 | | sold". The properties which are offered
for sale under this | 7 | | Section and not sold or not confirmed shall be offered for
sale | 8 | | annually thereafter in the manner provided in this Section | 9 | | until sold,
except in the case of mineral rights, which after | 10 | | 10 consecutive years of
being offered for sale under this | 11 | | Section and not sold or confirmed shall
no longer be required | 12 | | to be offered for sale. At
any time between annual sales the | 13 | | County Collector may advertise for sale any
properties subject | 14 | | to sale under judgments for sale previously entered under
this | 15 | | Section and not executed for any reason. The advertisement and | 16 | | sale shall
be regulated by the provisions of this Code as far | 17 | | as applicable.
| 18 | | (e) Proceeding to tax deed. The owner of the certificate | 19 | | of purchase shall
give notice as required by Sections 22-5 | 20 | | through 22-30, and may extend the
period of redemption as | 21 | | provided by Section 21-385. At any time within 6 months
prior | 22 | | to expiration of the period of redemption from a sale under | 23 | | this Code,
the owner of a certificate of purchase may file a | 24 | | petition and may obtain a tax
deed under Sections 22-30 | 25 | | through 22-55. Within 30 days from filing of the petition, the | 26 | | owner of a certificate must file with the clerk of the circuit |
| | | 10200SB0217ham001 | - 7 - | LRB102 02726 HLH 30235 a |
|
| 1 | | court county clerk the names and addresses of the owners of the | 2 | | property and those persons entitled to service of notice at | 3 | | their last known addresses. The clerk shall mail notice within | 4 | | 30 days from the date of the filing of addresses with the | 5 | | clerk. All proceedings for the issuance of
a tax deed and all | 6 | | tax deeds for properties sold under this Section shall be
| 7 | | subject to Sections 22-30 through 22-55. Deeds issued under | 8 | | this Section are
subject to Section 22-70. This Section shall | 9 | | be liberally construed so that the deeds provided for in this | 10 | | Section convey merchantable title.
| 11 | | (f) Redemptions from scavenger sales. Redemptions may be | 12 | | made from sales
under this Section in the same manner and upon | 13 | | the same terms and conditions as
redemptions from sales made | 14 | | under the County Collector's annual application for
judgment | 15 | | and order of sale, except that in lieu of penalty the person | 16 | | redeeming
shall pay interest as follows if the sale occurs | 17 | | before September 9, 1993:
| 18 | | (1) If redeemed within the first 2 months from the | 19 | | date of the sale, 3%
per month or portion thereof upon the | 20 | | amount for which the property was sold;
| 21 | | (2) If redeemed between 2 and 6 months from the date of | 22 | | the sale, 12% of
the amount for which the property was | 23 | | sold;
| 24 | | (3) If redeemed between 6 and 12 months from the date | 25 | | of the sale, 24%
of the amount for which the property was | 26 | | sold;
|
| | | 10200SB0217ham001 | - 8 - | LRB102 02726 HLH 30235 a |
|
| 1 | | (4) If redeemed between 12 and 18 months from the date | 2 | | of the sale, 36% of
the amount for which the property was | 3 | | sold;
| 4 | | (5) If redeemed between 18 and 24 months from the date | 5 | | of the sale, 48%
of the amount for which the property was | 6 | | sold;
| 7 | | (6) If redeemed after 24 months from the date of sale, | 8 | | the 48% herein
provided together with interest at 6% per | 9 | | year thereafter.
| 10 | | If the sale occurs on or after September 9,
1993, the | 11 | | person redeeming shall pay interest on that part of the amount | 12 | | for
which the property was sold equal to or less than the full | 13 | | amount of delinquent
taxes, special assessments, penalties, | 14 | | interest, and costs, included in the
judgment and order of | 15 | | sale as follows:
| 16 | | (1) If redeemed within the first 2 months from the | 17 | | date of the sale,
3% per month upon the amount of taxes, | 18 | | special assessments, penalties,
interest, and costs due | 19 | | for each of the first 2 months, or fraction thereof.
| 20 | | (2) If redeemed at any time between 2 and 6 months from | 21 | | the date of
the sale, 12% of the amount of taxes, special | 22 | | assessments, penalties, interest,
and costs due.
| 23 | | (3) If redeemed at any time between 6 and 12 months | 24 | | from the date of the
sale, 24% of the amount of taxes, | 25 | | special assessments, penalties, interest, and
costs due.
| 26 | | (4) If redeemed at any time between 12 and 18 months |
| | | 10200SB0217ham001 | - 9 - | LRB102 02726 HLH 30235 a |
|
| 1 | | from the date
of the sale, 36% of the amount of taxes, | 2 | | special assessments, penalties,
interest, and costs due.
| 3 | | (5) If redeemed at any time between 18 and 24 months | 4 | | from the date
of the sale, 48% of the amount of taxes, | 5 | | special assessments, penalties,
interest, and costs due.
| 6 | | (6) If redeemed after 24 months from the date of sale, | 7 | | the 48%
provided for the 24 months together with interest | 8 | | at 6% per annum thereafter on
the amount of taxes, special | 9 | | assessments, penalties, interest, and costs due.
| 10 | | The person redeeming shall not be required to pay any | 11 | | interest on any part
of the amount for which the property was | 12 | | sold that exceeds the full amount of
delinquent taxes, special | 13 | | assessments, penalties, interest, and costs included
in the | 14 | | judgment and order of sale.
| 15 | | Notwithstanding any other provision of this Section, | 16 | | except for
owner-occupied single family residential units | 17 | | which are condominium units,
cooperative units or dwellings, | 18 | | the amount required to be paid for redemption
shall also | 19 | | include an amount equal to all delinquent taxes on the | 20 | | property
which taxes were delinquent at the time of sale. The | 21 | | delinquent taxes shall be
apportioned by the county collector | 22 | | among the taxing districts in which the
property is situated | 23 | | in accordance with law. In the event that all moneys
received | 24 | | from any sale held under this Section exceed an amount equal to | 25 | | all
delinquent taxes on the property sold, which taxes were | 26 | | delinquent at the time
of sale, together with all publication |
| | | 10200SB0217ham001 | - 10 - | LRB102 02726 HLH 30235 a |
|
| 1 | | and other costs associated with the
sale, then, upon | 2 | | redemption, the County Collector and the County Clerk shall
| 3 | | apply the excess amount to the cost of redemption.
| 4 | | (g) Bidding by county or other taxing districts. Any | 5 | | taxing district may
bid at a scavenger sale. The county board | 6 | | of the county in which properties
offered for sale under this | 7 | | Section are located may bid as trustee for all
taxing | 8 | | districts having an interest in the taxes for the nonpayment | 9 | | of which
the parcels are offered. The County shall apply on the | 10 | | bid the unpaid taxes due
upon the property and no cash need be | 11 | | paid. The County or other taxing district
acquiring a tax sale | 12 | | certificate shall take all steps necessary to acquire
title to | 13 | | the property and may manage and operate the property so | 14 | | acquired.
| 15 | | When a county, or other taxing district within the county, | 16 | | is a petitioner
for a tax deed, no filing fee shall be required | 17 | | on the petition. The county as
a tax creditor and as trustee | 18 | | for other tax creditors, or other taxing district
within the | 19 | | county shall not be required to allege and prove that all taxes | 20 | | and
special assessments which become due and payable after the | 21 | | sale to the county
have been paid. The county shall not be | 22 | | required to pay the subsequently
accruing taxes or special | 23 | | assessments at any time. Upon the written request of
the | 24 | | county board or its designee, the county collector shall not | 25 | | offer the
property for sale at any tax sale subsequent to the | 26 | | sale of the property to the
county under this Section. The lien |
| | | 10200SB0217ham001 | - 11 - | LRB102 02726 HLH 30235 a |
|
| 1 | | of taxes and special assessments which
become due and payable | 2 | | after a sale to a county shall merge in the fee title of
the | 3 | | county, or other taxing district, on the issuance of a deed. | 4 | | The County may
sell the properties so acquired, or the | 5 | | certificate of purchase thereto, and
the proceeds of the sale | 6 | | shall be distributed to the taxing districts in
proportion to | 7 | | their respective interests therein. The presiding officer of | 8 | | the
county board, with the advice and consent of the County | 9 | | Board, may appoint some
officer or person to attend scavenger | 10 | | sales and bid on its behalf.
| 11 | | (h) Miscellaneous provisions. In the event that the tract | 12 | | of land or lot
sold at any such sale is not redeemed within the | 13 | | time permitted by law and a
tax deed is issued, all moneys that | 14 | | may be received from the sale of
properties in excess of the | 15 | | delinquent taxes, together with all publication
and other | 16 | | costs associated with the sale,
shall, upon petition of any | 17 | | interested party to the court that issued the tax
deed, be | 18 | | distributed by the County Collector pursuant to order of the | 19 | | court
among the persons having legal or equitable interests in | 20 | | the property according
to the fair value of their interests in | 21 | | the tract or lot. Section 21-415 does
not apply to properties | 22 | | sold under this Section.
Appeals may be taken from the orders | 23 | | and judgments entered under this Section
as in other civil | 24 | | cases. The remedy herein provided is in addition to other
| 25 | | remedies for the collection of delinquent taxes. | 26 | | (i) The changes to this Section made by Public Act 95-477 |
| | | 10200SB0217ham001 | - 12 - | LRB102 02726 HLH 30235 a |
|
| 1 | | this amendatory Act of
the 95th General Assembly apply only to | 2 | | matters in which a
petition for tax deed is filed on or after | 3 | | June 1, 2008 ( the effective date
of Public Act 95-477) this | 4 | | amendatory Act of the 95th General Assembly .
| 5 | | (Source: P.A. 102-519, eff. 8-20-21; 102-528, eff. 1-1-22; | 6 | | revised 10-18-21.)
| 7 | | Section 10. The Illinois Municipal Code is amended by | 8 | | changing Section 11-74.4-3 as follows:
| 9 | | (65 ILCS 5/11-74.4-3) (from Ch. 24, par. 11-74.4-3)
| 10 | | Sec. 11-74.4-3. Definitions. The following terms, wherever | 11 | | used or
referred to in this Division 74.4 shall have the | 12 | | following respective meanings,
unless in any case a different | 13 | | meaning clearly appears from the context.
| 14 | | (a) For any redevelopment project area that has been | 15 | | designated pursuant
to this
Section by an ordinance adopted | 16 | | prior to November 1, 1999 (the effective
date of Public Act
| 17 | | 91-478), "blighted area" shall have the meaning set
forth in | 18 | | this Section
prior to that date.
| 19 | | On and after November 1, 1999,
"blighted area" means any | 20 | | improved or vacant area within the boundaries
of a | 21 | | redevelopment project area located within the territorial | 22 | | limits of
the municipality where:
| 23 | | (1) If improved, industrial, commercial, and | 24 | | residential buildings or
improvements are detrimental to |
| | | 10200SB0217ham001 | - 13 - | LRB102 02726 HLH 30235 a |
|
| 1 | | the public safety, health, or welfare
because of a | 2 | | combination of 5 or more of the following factors, each of | 3 | | which
is (i) present, with that presence documented, to a | 4 | | meaningful extent so
that a municipality may reasonably | 5 | | find that the factor is clearly
present within the intent | 6 | | of the Act and (ii) reasonably distributed throughout
the | 7 | | improved part of the redevelopment project area:
| 8 | | (A) Dilapidation. An advanced state of disrepair | 9 | | or neglect of
necessary
repairs to the primary | 10 | | structural components of buildings or improvements in
| 11 | | such a combination that a documented building | 12 | | condition analysis determines
that major repair is | 13 | | required or the defects are so serious and so | 14 | | extensive
that the buildings must be removed.
| 15 | | (B) Obsolescence. The condition or process of | 16 | | falling into disuse.
Structures have become ill-suited | 17 | | for the original use.
| 18 | | (C) Deterioration. With respect to buildings, | 19 | | defects
including, but not limited to, major defects | 20 | | in
the secondary building components such as doors, | 21 | | windows, porches, gutters and
downspouts, and fascia. | 22 | | With respect to surface improvements, that the
| 23 | | condition of roadways, alleys, curbs, gutters, | 24 | | sidewalks, off-street parking,
and surface storage | 25 | | areas evidence deterioration, including, but not | 26 | | limited
to, surface cracking, crumbling, potholes, |
| | | 10200SB0217ham001 | - 14 - | LRB102 02726 HLH 30235 a |
|
| 1 | | depressions, loose paving material,
and weeds | 2 | | protruding through paved surfaces.
| 3 | | (D) Presence of structures below minimum code | 4 | | standards. All structures
that do not meet the | 5 | | standards of zoning, subdivision, building, fire, and
| 6 | | other governmental codes applicable to property, but | 7 | | not including housing and
property maintenance codes.
| 8 | | (E) Illegal use of individual structures. The use | 9 | | of structures in
violation of applicable federal, | 10 | | State, or local laws, exclusive of those
applicable to | 11 | | the presence of structures below minimum code | 12 | | standards.
| 13 | | (F) Excessive vacancies. The presence of
buildings | 14 | | that are unoccupied or under-utilized and that | 15 | | represent an adverse
influence on the area because of | 16 | | the frequency, extent, or duration of the
vacancies.
| 17 | | (G) Lack of ventilation, light, or sanitary | 18 | | facilities. The absence of
adequate ventilation for | 19 | | light or air circulation in spaces or rooms without
| 20 | | windows, or that require the removal of dust, odor, | 21 | | gas, smoke, or other
noxious airborne materials. | 22 | | Inadequate natural light and ventilation means
the | 23 | | absence of skylights or windows for interior spaces or | 24 | | rooms and improper
window sizes and amounts by room | 25 | | area to window area ratios. Inadequate
sanitary | 26 | | facilities refers to the absence or inadequacy of |
| | | 10200SB0217ham001 | - 15 - | LRB102 02726 HLH 30235 a |
|
| 1 | | garbage storage and
enclosure,
bathroom facilities, | 2 | | hot water and kitchens, and structural inadequacies
| 3 | | preventing ingress and egress to and from all rooms | 4 | | and units within a
building.
| 5 | | (H) Inadequate utilities. Underground and overhead | 6 | | utilities
such as storm sewers and storm drainage, | 7 | | sanitary sewers, water lines, and
gas, telephone, and
| 8 | | electrical services that are shown to be inadequate. | 9 | | Inadequate utilities are
those that are: (i) of | 10 | | insufficient capacity to serve the uses in the
| 11 | | redevelopment project area, (ii) deteriorated,
| 12 | | antiquated, obsolete, or in disrepair, or (iii) | 13 | | lacking within the
redevelopment project area.
| 14 | | (I) Excessive land coverage and overcrowding of | 15 | | structures and community
facilities. The | 16 | | over-intensive use of property and the crowding of | 17 | | buildings
and accessory facilities onto a site. | 18 | | Examples of problem conditions
warranting the | 19 | | designation of an area as one exhibiting excessive | 20 | | land coverage
are: (i) the presence of buildings | 21 | | either improperly situated on parcels or
located
on | 22 | | parcels of inadequate size and shape in relation to | 23 | | present-day standards of
development for health and | 24 | | safety and (ii) the presence of multiple buildings
on | 25 | | a
single parcel. For there to be a finding of excessive | 26 | | land coverage,
these parcels must exhibit one or more |
| | | 10200SB0217ham001 | - 16 - | LRB102 02726 HLH 30235 a |
|
| 1 | | of the following conditions:
insufficient provision | 2 | | for
light and air within or around buildings, | 3 | | increased threat of spread of fire
due to the close | 4 | | proximity of buildings, lack of adequate or proper | 5 | | access to a
public right-of-way, lack of reasonably | 6 | | required off-street parking, or
inadequate provision | 7 | | for loading and service.
| 8 | | (J) Deleterious land use or layout. The existence | 9 | | of incompatible
land-use
relationships, buildings | 10 | | occupied by inappropriate mixed-uses, or uses
| 11 | | considered to be noxious, offensive, or unsuitable for | 12 | | the
surrounding area.
| 13 | | (K) Environmental clean-up. The proposed | 14 | | redevelopment project area
has incurred Illinois | 15 | | Environmental Protection Agency or United States
| 16 | | Environmental Protection Agency remediation costs for, | 17 | | or a study conducted by
an independent consultant | 18 | | recognized as having expertise in environmental
| 19 | | remediation has determined a need for, the
clean-up of | 20 | | hazardous
waste, hazardous substances, or underground | 21 | | storage tanks required by State or
federal law, | 22 | | provided that the remediation costs constitute a | 23 | | material
impediment to the development or | 24 | | redevelopment of the redevelopment project
area.
| 25 | | (L) Lack of community planning. The proposed | 26 | | redevelopment project area
was
developed prior to or |
| | | 10200SB0217ham001 | - 17 - | LRB102 02726 HLH 30235 a |
|
| 1 | | without the benefit or guidance of a community plan.
| 2 | | This means that the development occurred prior to the | 3 | | adoption by the
municipality of a comprehensive or | 4 | | other community plan or that the plan was
not followed | 5 | | at the time of the area's development. This factor | 6 | | must be
documented by evidence of adverse or | 7 | | incompatible land-use relationships,
inadequate street | 8 | | layout, improper subdivision, parcels of inadequate | 9 | | shape and
size to meet contemporary development | 10 | | standards, or other evidence
demonstrating
an absence | 11 | | of effective community planning.
| 12 | | (M) The total equalized assessed value of the | 13 | | proposed redevelopment
project area has declined for 3 | 14 | | of the last 5 calendar years
prior to the year in which | 15 | | the redevelopment project area is designated
or is | 16 | | increasing at an
annual rate that is less
than the | 17 | | balance of the municipality for 3 of the last 5 | 18 | | calendar years
for which
information is available or | 19 | | is increasing at an annual rate that is less than
the | 20 | | Consumer Price Index
for All Urban Consumers published | 21 | | by the United States Department of Labor or
successor | 22 | | agency for 3 of the last 5 calendar years
prior to the | 23 | | year in which the redevelopment project area is | 24 | | designated.
| 25 | | (2) If vacant, the sound growth of the redevelopment | 26 | | project area
is impaired by a
combination of 2 or more of |
| | | 10200SB0217ham001 | - 18 - | LRB102 02726 HLH 30235 a |
|
| 1 | | the following factors, each of which
is (i) present, with | 2 | | that presence documented, to a meaningful extent so
that
a | 3 | | municipality may reasonably find that the factor is | 4 | | clearly present
within the intent of the Act and (ii) | 5 | | reasonably distributed throughout the
vacant part of the
| 6 | | redevelopment project area to which it pertains:
| 7 | | (A) Obsolete platting of vacant land that results | 8 | | in parcels of
limited or
narrow size or configurations | 9 | | of parcels of irregular size or shape that would
be | 10 | | difficult to develop on
a planned basis and in a manner | 11 | | compatible with contemporary standards and
| 12 | | requirements, or platting that failed to create | 13 | | rights-of-ways for streets or
alleys or that created | 14 | | inadequate right-of-way widths for streets, alleys, or
| 15 | | other public rights-of-way or that omitted easements | 16 | | for public utilities.
| 17 | | (B) Diversity of ownership of parcels of vacant | 18 | | land sufficient in
number to
retard or impede the | 19 | | ability to assemble the land for development.
| 20 | | (C) Tax and special assessment delinquencies exist | 21 | | or the property has
been the subject of tax sales under | 22 | | the Property Tax Code within the last 5
years.
| 23 | | (D) Deterioration of structures or site | 24 | | improvements in neighboring
areas adjacent to the | 25 | | vacant land.
| 26 | | (E) The area has incurred Illinois Environmental |
| | | 10200SB0217ham001 | - 19 - | LRB102 02726 HLH 30235 a |
|
| 1 | | Protection Agency or
United States Environmental | 2 | | Protection Agency remediation costs for, or a study
| 3 | | conducted by an independent consultant recognized as | 4 | | having expertise in
environmental remediation has | 5 | | determined a need for, the
clean-up of hazardous
| 6 | | waste, hazardous substances, or underground storage | 7 | | tanks required by State or
federal law, provided that | 8 | | the remediation costs
constitute a material impediment | 9 | | to the development or redevelopment of
the
| 10 | | redevelopment project area.
| 11 | | (F) The total equalized assessed value of the | 12 | | proposed redevelopment
project area has declined for 3 | 13 | | of the last 5 calendar years
prior to the year in which | 14 | | the redevelopment project area is designated
or is | 15 | | increasing at an
annual rate that is less
than the | 16 | | balance of the municipality for 3 of the last 5 | 17 | | calendar years for
which information is available or | 18 | | is increasing at an annual rate that is less
than
the | 19 | | Consumer Price Index
for All Urban Consumers published | 20 | | by the United States Department of Labor or
successor | 21 | | agency for 3 of the last 5 calendar years
prior to the | 22 | | year in which the redevelopment project area is | 23 | | designated.
| 24 | | (3) If vacant, the sound growth of the redevelopment | 25 | | project area is
impaired by one of the
following factors | 26 | | that (i) is present, with that presence documented, to a
|
| | | 10200SB0217ham001 | - 20 - | LRB102 02726 HLH 30235 a |
|
| 1 | | meaningful extent so that a municipality may reasonably | 2 | | find that the factor is
clearly
present within the intent | 3 | | of the Act and (ii) is reasonably distributed
throughout | 4 | | the vacant part of the
redevelopment project area to which | 5 | | it pertains:
| 6 | | (A) The area consists of one or more unused | 7 | | quarries, mines, or strip
mine ponds.
| 8 | | (B) The area consists of unused rail yards, rail | 9 | | tracks, or railroad
rights-of-way.
| 10 | | (C) The area, prior to its designation, is subject | 11 | | to (i) chronic
flooding
that adversely impacts on real | 12 | | property in the area as certified by a
registered
| 13 | | professional engineer or appropriate regulatory agency | 14 | | or (ii) surface water
that
discharges from all or a | 15 | | part of the area and contributes to flooding within
| 16 | | the
same watershed, but only if the redevelopment | 17 | | project provides for facilities
or
improvements to | 18 | | contribute to the alleviation of all or part of the
| 19 | | flooding.
| 20 | | (D) The area consists of an unused or illegal | 21 | | disposal site containing
earth,
stone, building | 22 | | debris, or similar materials that were removed from
| 23 | | construction, demolition, excavation, or dredge sites.
| 24 | | (E) Prior to November 1, 1999, the area
is not less | 25 | | than 50 nor more than 100 acres and 75%
of which is | 26 | | vacant (notwithstanding that the area has been used
|
| | | 10200SB0217ham001 | - 21 - | LRB102 02726 HLH 30235 a |
|
| 1 | | for commercial agricultural purposes within 5 years | 2 | | prior to the designation
of the redevelopment project | 3 | | area), and the area meets at least one of
the factors | 4 | | itemized in paragraph (1) of this subsection, the area
| 5 | | has been designated as a town or village center by | 6 | | ordinance or comprehensive
plan adopted prior to | 7 | | January 1, 1982, and the area has not been developed
| 8 | | for that designated purpose.
| 9 | | (F) The area qualified as a blighted improved area | 10 | | immediately prior to
becoming vacant, unless there has | 11 | | been substantial private investment in the
immediately | 12 | | surrounding area.
| 13 | | (b) For any redevelopment project area that has been | 14 | | designated pursuant
to this
Section by an ordinance adopted | 15 | | prior to November 1, 1999 (the effective
date of Public Act
| 16 | | 91-478), "conservation area" shall have the meaning
set forth | 17 | | in this
Section prior to that date.
| 18 | | On and after November 1, 1999,
"conservation area" means | 19 | | any improved area within the boundaries
of a redevelopment | 20 | | project area located within the territorial limits of
the | 21 | | municipality in which 50% or more of the structures in the area | 22 | | have
an age of 35 years or more.
Such an area is not yet a | 23 | | blighted area but
because of a combination of 3 or more of the | 24 | | following factors is detrimental
to the public safety, health, | 25 | | morals
or welfare and such an area may become a blighted area:
| 26 | | (1) Dilapidation. An advanced state of disrepair or |
| | | 10200SB0217ham001 | - 22 - | LRB102 02726 HLH 30235 a |
|
| 1 | | neglect of
necessary
repairs to the primary structural | 2 | | components of buildings or improvements in
such a | 3 | | combination that a documented building condition analysis | 4 | | determines
that major repair is required or the defects | 5 | | are so serious and so extensive
that the buildings must be | 6 | | removed.
| 7 | | (2) Obsolescence. The condition or process of falling | 8 | | into disuse.
Structures have become ill-suited for the | 9 | | original use.
| 10 | | (3) Deterioration. With respect to buildings, defects
| 11 | | including, but not limited to, major defects in
the | 12 | | secondary building components such as doors, windows, | 13 | | porches, gutters and
downspouts, and fascia. With respect | 14 | | to surface improvements, that the
condition of roadways, | 15 | | alleys, curbs, gutters, sidewalks, off-street parking,
and | 16 | | surface storage areas evidence deterioration, including, | 17 | | but not limited
to, surface cracking, crumbling, potholes, | 18 | | depressions, loose paving material,
and weeds protruding | 19 | | through paved surfaces.
| 20 | | (4) Presence of structures below minimum code | 21 | | standards. All structures
that do not meet the standards | 22 | | of zoning, subdivision, building, fire, and
other | 23 | | governmental codes applicable to property, but not | 24 | | including housing and
property maintenance codes.
| 25 | | (5) Illegal use of individual structures. The use of | 26 | | structures in
violation of applicable federal, State, or |
| | | 10200SB0217ham001 | - 23 - | LRB102 02726 HLH 30235 a |
|
| 1 | | local laws, exclusive of those
applicable to the presence | 2 | | of structures below minimum code standards.
| 3 | | (6) Excessive vacancies. The presence of
buildings | 4 | | that are unoccupied or under-utilized and that represent | 5 | | an adverse
influence on the area because of the frequency, | 6 | | extent, or duration of the
vacancies.
| 7 | | (7) Lack of ventilation, light, or sanitary | 8 | | facilities. The absence of
adequate ventilation for light | 9 | | or air circulation in spaces or rooms without
windows, or | 10 | | that require the removal of dust, odor, gas, smoke, or | 11 | | other
noxious airborne materials. Inadequate natural light | 12 | | and ventilation means
the absence or inadequacy of | 13 | | skylights or windows for interior spaces or rooms
and | 14 | | improper
window sizes and amounts by room area to window | 15 | | area ratios. Inadequate
sanitary facilities refers to the | 16 | | absence or inadequacy of garbage storage and
enclosure,
| 17 | | bathroom facilities, hot water and kitchens, and | 18 | | structural inadequacies
preventing ingress and egress to | 19 | | and from all rooms and units within a
building.
| 20 | | (8) Inadequate utilities. Underground and overhead | 21 | | utilities
such as storm sewers and storm drainage, | 22 | | sanitary sewers, water lines, and gas,
telephone, and
| 23 | | electrical services that are shown to be inadequate. | 24 | | Inadequate utilities are
those that are: (i) of | 25 | | insufficient capacity to serve the uses in the
| 26 | | redevelopment project area, (ii) deteriorated,
antiquated, |
| | | 10200SB0217ham001 | - 24 - | LRB102 02726 HLH 30235 a |
|
| 1 | | obsolete, or in disrepair, or (iii) lacking within the
| 2 | | redevelopment project area.
| 3 | | (9) Excessive land coverage and overcrowding of | 4 | | structures and community
facilities. The over-intensive | 5 | | use of property and the crowding of buildings
and | 6 | | accessory facilities onto a site. Examples of problem | 7 | | conditions
warranting the designation of an area as one | 8 | | exhibiting excessive land coverage
are: the presence of | 9 | | buildings either improperly situated on parcels or located
| 10 | | on parcels of inadequate size and shape in relation to | 11 | | present-day standards of
development for health and safety | 12 | | and the presence of multiple buildings on a
single parcel. | 13 | | For there to be a finding of excessive land coverage,
| 14 | | these parcels must exhibit one or more of the following | 15 | | conditions:
insufficient provision for
light and air | 16 | | within or around buildings, increased threat of spread of | 17 | | fire
due to the close proximity of buildings, lack of | 18 | | adequate or proper access to a
public right-of-way, lack | 19 | | of reasonably required off-street parking, or
inadequate | 20 | | provision for loading and service.
| 21 | | (10) Deleterious land use or layout. The existence of | 22 | | incompatible
land-use
relationships, buildings occupied by | 23 | | inappropriate mixed-uses, or uses
considered to be | 24 | | noxious, offensive, or unsuitable for the
surrounding | 25 | | area.
| 26 | | (11) Lack of community planning. The proposed |
| | | 10200SB0217ham001 | - 25 - | LRB102 02726 HLH 30235 a |
|
| 1 | | redevelopment project area
was
developed prior to or | 2 | | without the benefit or guidance of a community plan.
This | 3 | | means that the development occurred prior to the adoption | 4 | | by the
municipality of a comprehensive or other community | 5 | | plan or that the plan was
not followed at the time of the | 6 | | area's development. This factor must be
documented by | 7 | | evidence of adverse or incompatible land-use | 8 | | relationships,
inadequate street layout, improper | 9 | | subdivision, parcels of inadequate shape and
size to meet | 10 | | contemporary development standards, or other evidence
| 11 | | demonstrating
an absence of effective community planning.
| 12 | | (12) The area has incurred Illinois Environmental | 13 | | Protection Agency or
United
States Environmental | 14 | | Protection Agency remediation costs for, or a study
| 15 | | conducted by an independent consultant recognized as | 16 | | having expertise in
environmental remediation has | 17 | | determined a need for, the clean-up of hazardous
waste, | 18 | | hazardous substances, or underground storage tanks | 19 | | required by State
or federal law, provided that the | 20 | | remediation costs constitute a material
impediment to the | 21 | | development or redevelopment of the redevelopment project
| 22 | | area.
| 23 | | (13) The total equalized assessed value of the | 24 | | proposed redevelopment
project area has declined for 3 of | 25 | | the last 5 calendar years
for which information is
| 26 | | available or is increasing at an annual rate that is less |
| | | 10200SB0217ham001 | - 26 - | LRB102 02726 HLH 30235 a |
|
| 1 | | than the balance of
the municipality for 3 of the last 5 | 2 | | calendar years for which information is
available or is | 3 | | increasing at an annual rate that is less
than the | 4 | | Consumer Price Index for All Urban Consumers published by | 5 | | the United
States Department of Labor or successor agency | 6 | | for 3 of the last 5 calendar
years for which information is | 7 | | available.
| 8 | | (c) "Industrial park" means an area in a blighted or | 9 | | conservation
area suitable for use by any manufacturing, | 10 | | industrial, research or
transportation enterprise, of | 11 | | facilities to include but not be limited to
factories, mills, | 12 | | processing plants, assembly plants, packing plants,
| 13 | | fabricating plants, industrial distribution centers, | 14 | | warehouses, repair
overhaul or service facilities, freight | 15 | | terminals, research facilities,
test facilities or railroad | 16 | | facilities.
| 17 | | (d) "Industrial park conservation area" means an area | 18 | | within the
boundaries of a redevelopment project area located | 19 | | within the territorial
limits of a municipality that is a | 20 | | labor surplus municipality or within 1
1/2 miles of the | 21 | | territorial limits of a municipality that is a labor
surplus | 22 | | municipality if the area is annexed to the municipality; which
| 23 | | area is zoned as industrial no later than at the time the | 24 | | municipality by
ordinance designates the redevelopment project | 25 | | area, and which area
includes both vacant land suitable for | 26 | | use as an industrial park and a
blighted area or conservation |
| | | 10200SB0217ham001 | - 27 - | LRB102 02726 HLH 30235 a |
|
| 1 | | area contiguous to such vacant land.
| 2 | | (e) "Labor surplus municipality" means a municipality in | 3 | | which, at any
time during the 6 months before the municipality | 4 | | by ordinance designates
an industrial park conservation area, | 5 | | the unemployment rate was over 6% and was
also 100% or more of | 6 | | the national average unemployment rate for that same
time as | 7 | | published in the United States Department of Labor Bureau of | 8 | | Labor
Statistics publication entitled "The Employment | 9 | | Situation" or its successor
publication. For the purpose of | 10 | | this subsection, if unemployment rate
statistics for the | 11 | | municipality are not available, the unemployment rate in
the | 12 | | municipality shall be deemed to be the same as the | 13 | | unemployment rate in
the principal county in which the | 14 | | municipality is located.
| 15 | | (f) "Municipality" shall mean a city, village, | 16 | | incorporated town, or a township that is located in the | 17 | | unincorporated portion of a county with 3 million or more | 18 | | inhabitants, if the county adopted an ordinance that approved | 19 | | the township's redevelopment plan.
| 20 | | (g) "Initial Sales Tax Amounts" means the amount of taxes | 21 | | paid under
the Retailers' Occupation Tax Act, Use Tax Act, | 22 | | Service Use Tax Act, the
Service Occupation Tax Act, the | 23 | | Municipal Retailers' Occupation Tax Act,
and the Municipal | 24 | | Service Occupation Tax Act by
retailers and servicemen on | 25 | | transactions at places located in a
State Sales Tax Boundary | 26 | | during the calendar year 1985.
|
| | | 10200SB0217ham001 | - 28 - | LRB102 02726 HLH 30235 a |
|
| 1 | | (g-1) "Revised Initial Sales Tax Amounts" means the amount | 2 | | of taxes paid
under the Retailers' Occupation Tax Act, Use Tax | 3 | | Act, Service Use Tax Act, the
Service Occupation Tax Act, the | 4 | | Municipal Retailers' Occupation Tax Act,
and the Municipal | 5 | | Service Occupation Tax Act by retailers and servicemen on
| 6 | | transactions at places located within the State Sales Tax | 7 | | Boundary
revised pursuant to Section 11-74.4-8a(9) of this | 8 | | Act.
| 9 | | (h) "Municipal Sales Tax Increment" means an amount equal | 10 | | to the
increase in the aggregate amount of taxes paid to a | 11 | | municipality from the
Local Government Tax Fund arising from | 12 | | sales by retailers and servicemen
within the redevelopment | 13 | | project area or State Sales Tax Boundary, as
the case may be, | 14 | | for as long as the redevelopment project area or State
Sales | 15 | | Tax Boundary, as the case may be, exist over and above the | 16 | | aggregate
amount of taxes as certified by the Illinois | 17 | | Department of Revenue and paid
under the Municipal Retailers' | 18 | | Occupation Tax Act and the Municipal Service
Occupation Tax | 19 | | Act by retailers and servicemen, on transactions at places
of | 20 | | business located in the redevelopment project area or State | 21 | | Sales Tax
Boundary, as the case may be, during the
base year | 22 | | which shall be the calendar year immediately prior to the year | 23 | | in
which the municipality adopted tax increment allocation | 24 | | financing. For
purposes of computing the aggregate amount of | 25 | | such taxes for base years
occurring prior to 1985, the | 26 | | Department of Revenue shall determine the
Initial Sales Tax |
| | | 10200SB0217ham001 | - 29 - | LRB102 02726 HLH 30235 a |
|
| 1 | | Amounts for such taxes and deduct therefrom an amount
equal to | 2 | | 4% of the aggregate amount of taxes per year for each year the
| 3 | | base year is prior to 1985, but not to exceed a total deduction | 4 | | of 12%.
The amount so determined shall be known as the | 5 | | "Adjusted Initial Sales Tax
Amounts". For purposes of | 6 | | determining the Municipal Sales Tax Increment,
the Department | 7 | | of Revenue shall for each period subtract from the amount
paid | 8 | | to the municipality from the Local Government Tax Fund arising | 9 | | from
sales by retailers and servicemen on transactions
located | 10 | | in the redevelopment project area or the State Sales Tax | 11 | | Boundary,
as the case may be, the certified Initial Sales Tax
| 12 | | Amounts, the Adjusted Initial Sales Tax Amounts or the Revised | 13 | | Initial
Sales Tax Amounts for the Municipal Retailers'
| 14 | | Occupation Tax Act and the Municipal Service
Occupation Tax | 15 | | Act. For the State Fiscal Year 1989, this calculation shall
be | 16 | | made by utilizing the calendar year 1987 to determine the tax | 17 | | amounts
received. For the State Fiscal Year 1990, this | 18 | | calculation shall be made
by utilizing the period from January | 19 | | 1, 1988, until September 30, 1988, to
determine the tax | 20 | | amounts received from retailers and servicemen pursuant
to the | 21 | | Municipal Retailers' Occupation Tax and the Municipal Service
| 22 | | Occupation Tax Act, which shall have deducted therefrom
| 23 | | nine-twelfths of the certified Initial Sales Tax Amounts, the | 24 | | Adjusted Initial
Sales Tax Amounts or the Revised Initial | 25 | | Sales Tax Amounts as appropriate.
For the State Fiscal Year | 26 | | 1991, this calculation shall be made by utilizing
the period |
| | | 10200SB0217ham001 | - 30 - | LRB102 02726 HLH 30235 a |
|
| 1 | | from October 1, 1988, to June 30, 1989, to determine the tax
| 2 | | amounts received from retailers and servicemen pursuant to the | 3 | | Municipal
Retailers' Occupation Tax and the Municipal Service | 4 | | Occupation Tax Act
which shall have deducted therefrom | 5 | | nine-twelfths of the
certified Initial Sales Tax Amounts, | 6 | | Adjusted Initial Sales Tax
Amounts or the Revised Initial | 7 | | Sales Tax Amounts as appropriate. For every
State Fiscal Year | 8 | | thereafter, the applicable period shall be the 12 months
| 9 | | beginning July 1 and ending June 30 to determine the tax | 10 | | amounts received
which shall have deducted therefrom the | 11 | | certified Initial Sales Tax
Amounts, the Adjusted Initial | 12 | | Sales Tax Amounts or the Revised Initial
Sales Tax Amounts, as | 13 | | the case may be.
| 14 | | (i) "Net State Sales Tax Increment" means the sum of the | 15 | | following: (a)
80% of the first $100,000 of State Sales Tax | 16 | | Increment annually generated
within a State Sales Tax | 17 | | Boundary; (b) 60% of the amount in excess of
$100,000 but not | 18 | | exceeding $500,000 of State Sales Tax Increment annually
| 19 | | generated within a State Sales Tax Boundary; and (c) 40% of all | 20 | | amounts in
excess of $500,000 of State Sales Tax Increment | 21 | | annually generated within a
State Sales Tax Boundary. If, | 22 | | however, a municipality established a tax
increment financing | 23 | | district in a county with a population in excess of
3,000,000 | 24 | | before January 1, 1986, and the municipality entered into a
| 25 | | contract or issued bonds after January 1, 1986, but before | 26 | | December 31, 1986,
to finance redevelopment project costs |
| | | 10200SB0217ham001 | - 31 - | LRB102 02726 HLH 30235 a |
|
| 1 | | within a State Sales Tax
Boundary, then the Net State Sales Tax | 2 | | Increment means, for the fiscal years
beginning July 1, 1990, | 3 | | and July 1, 1991, 100% of the State Sales Tax
Increment | 4 | | annually generated within a State Sales Tax Boundary; and
| 5 | | notwithstanding any other provision of this Act, for those | 6 | | fiscal years the
Department of Revenue shall distribute to | 7 | | those municipalities 100% of
their Net State Sales Tax | 8 | | Increment before any distribution to any other
municipality | 9 | | and regardless of whether or not those other municipalities
| 10 | | will receive 100% of their Net State Sales Tax Increment. For | 11 | | Fiscal Year
1999, and every year thereafter until the year | 12 | | 2007, for any municipality
that has not entered into a | 13 | | contract or has not issued bonds prior to June
1, 1988 to | 14 | | finance redevelopment project costs within a State Sales Tax
| 15 | | Boundary, the Net State Sales Tax Increment shall be | 16 | | calculated as follows:
By multiplying the Net State Sales Tax | 17 | | Increment by 90% in the State Fiscal
Year 1999; 80% in the | 18 | | State Fiscal Year 2000; 70% in the State Fiscal Year
2001; 60% | 19 | | in the State Fiscal Year 2002; 50% in the State Fiscal Year | 20 | | 2003; 40%
in the State Fiscal Year 2004; 30% in the State | 21 | | Fiscal Year 2005; 20% in
the State Fiscal Year 2006; and 10% in | 22 | | the State Fiscal Year 2007. No
payment shall be made for State | 23 | | Fiscal Year 2008 and thereafter.
| 24 | | Municipalities that issued bonds in connection with a | 25 | | redevelopment project
in a redevelopment project area within | 26 | | the State Sales Tax Boundary prior to
July 29, 1991,
or that |
| | | 10200SB0217ham001 | - 32 - | LRB102 02726 HLH 30235 a |
|
| 1 | | entered into contracts in connection with a redevelopment | 2 | | project in
a redevelopment project area before June 1, 1988,
| 3 | | shall continue to receive their proportional share of the
| 4 | | Illinois Tax Increment Fund distribution until the date on | 5 | | which the
redevelopment project is completed or terminated.
| 6 | | If, however, a municipality that issued bonds in connection | 7 | | with a
redevelopment project in a redevelopment project area | 8 | | within the State Sales
Tax Boundary prior to July 29, 1991 | 9 | | retires the bonds prior to June 30, 2007 or
a municipality that | 10 | | entered into contracts in connection with a redevelopment
| 11 | | project in a redevelopment project area before June 1, 1988 | 12 | | completes the
contracts prior to June 30, 2007, then so long as | 13 | | the redevelopment project is
not
completed or is not | 14 | | terminated, the Net State Sales Tax Increment shall be
| 15 | | calculated, beginning on the date on which the bonds are | 16 | | retired or the
contracts are completed, as follows: By | 17 | | multiplying the Net State Sales Tax
Increment by 60% in the | 18 | | State Fiscal Year
2002; 50% in the State Fiscal Year 2003; 40% | 19 | | in the State Fiscal Year 2004; 30%
in the State Fiscal Year | 20 | | 2005; 20% in the State Fiscal Year 2006; and 10% in
the State | 21 | | Fiscal Year 2007. No payment shall be made for State Fiscal | 22 | | Year
2008 and thereafter.
Refunding of any bonds issued
prior | 23 | | to July 29, 1991, shall not alter the Net State Sales Tax | 24 | | Increment.
| 25 | | (j) "State Utility Tax Increment Amount" means an amount | 26 | | equal to the
aggregate increase in State electric and gas tax |
| | | 10200SB0217ham001 | - 33 - | LRB102 02726 HLH 30235 a |
|
| 1 | | charges imposed on owners
and tenants, other than residential | 2 | | customers, of properties located within
the redevelopment | 3 | | project area under Section 9-222 of the Public Utilities
Act, | 4 | | over and above the aggregate of such charges as certified by | 5 | | the
Department of Revenue and paid by owners and tenants, | 6 | | other than
residential customers, of properties within the | 7 | | redevelopment project area
during the base year, which shall | 8 | | be the calendar year immediately prior to
the year of the | 9 | | adoption of the ordinance authorizing tax increment allocation
| 10 | | financing.
| 11 | | (k) "Net State Utility Tax Increment" means the sum of the | 12 | | following:
(a) 80% of the first $100,000 of State Utility Tax | 13 | | Increment annually
generated by a redevelopment project area; | 14 | | (b) 60% of the amount in excess
of $100,000 but not exceeding | 15 | | $500,000 of the State Utility Tax Increment
annually generated | 16 | | by a redevelopment project area; and (c) 40% of all
amounts in | 17 | | excess of $500,000 of State Utility Tax Increment annually
| 18 | | generated by a redevelopment project area. For the State | 19 | | Fiscal Year 1999,
and every year thereafter until the year | 20 | | 2007, for any municipality that
has not entered into a | 21 | | contract or has not issued bonds prior to June 1,
1988 to | 22 | | finance redevelopment project costs within a redevelopment | 23 | | project
area, the Net State Utility Tax Increment shall be | 24 | | calculated as follows:
By multiplying the Net State Utility | 25 | | Tax Increment by 90% in the State
Fiscal Year 1999; 80% in the | 26 | | State Fiscal Year 2000; 70% in the State
Fiscal Year 2001; 60% |
| | | 10200SB0217ham001 | - 34 - | LRB102 02726 HLH 30235 a |
|
| 1 | | in the State Fiscal Year 2002; 50% in the State
Fiscal Year | 2 | | 2003; 40% in the State Fiscal Year 2004; 30% in the State
| 3 | | Fiscal Year 2005; 20% in the State Fiscal Year 2006; and 10% in | 4 | | the State
Fiscal Year 2007. No payment shall be made for the | 5 | | State Fiscal Year 2008
and thereafter.
| 6 | | Municipalities that issue bonds in connection with the | 7 | | redevelopment project
during the period from June 1, 1988 | 8 | | until 3 years after the effective date
of this Amendatory Act | 9 | | of 1988 shall receive the Net State Utility Tax
Increment, | 10 | | subject to appropriation, for 15 State Fiscal Years after the
| 11 | | issuance of such bonds. For the 16th through the 20th State | 12 | | Fiscal Years
after issuance of the bonds, the Net State | 13 | | Utility Tax Increment shall be
calculated as follows: By | 14 | | multiplying the Net State Utility Tax Increment
by 90% in year | 15 | | 16; 80% in year 17; 70% in year 18; 60% in year 19; and 50%
in | 16 | | year 20. Refunding of any bonds issued prior to June 1, 1988, | 17 | | shall not
alter the revised Net State Utility Tax Increment | 18 | | payments set forth above.
| 19 | | (l) "Obligations" mean bonds, loans, debentures, notes, | 20 | | special certificates
or other evidence of indebtedness issued | 21 | | by the municipality to carry out
a redevelopment project or to | 22 | | refund outstanding obligations.
| 23 | | (m) "Payment in lieu of taxes" means those estimated tax | 24 | | revenues from
real property in a redevelopment project area | 25 | | derived from real property that
has been acquired by a | 26 | | municipality
which according to the redevelopment project or |
| | | 10200SB0217ham001 | - 35 - | LRB102 02726 HLH 30235 a |
|
| 1 | | plan is to be used for a
private use which taxing districts | 2 | | would have received had a municipality
not acquired the real | 3 | | property and adopted tax increment allocation
financing and | 4 | | which would result from
levies made after the time of the | 5 | | adoption of tax increment allocation
financing to the time the | 6 | | current equalized value of real property in the
redevelopment | 7 | | project area exceeds the total initial equalized value of
real | 8 | | property in said area.
| 9 | | (n) "Redevelopment plan" means the comprehensive program | 10 | | of
the municipality for development or redevelopment intended | 11 | | by the payment of
redevelopment project costs to reduce or | 12 | | eliminate those conditions the
existence of which qualified | 13 | | the redevelopment project area as
a "blighted
area" or | 14 | | "conservation area" or combination thereof or "industrial park
| 15 | | conservation area," and thereby to enhance the tax bases of | 16 | | the taxing
districts which extend into the redevelopment | 17 | | project area, provided that, with respect to redevelopment | 18 | | project areas described in subsections (p-1) and (p-2), | 19 | | "redevelopment plan" means the comprehensive program of the | 20 | | affected municipality for the development of qualifying | 21 | | transit facilities.
On and after November 1, 1999 (the | 22 | | effective date of
Public Act 91-478), no
redevelopment plan | 23 | | may be approved or amended that includes the development of
| 24 | | vacant land (i) with a golf course and related clubhouse and | 25 | | other facilities
or (ii) designated by federal, State, county, | 26 | | or municipal government as public
land for outdoor |
| | | 10200SB0217ham001 | - 36 - | LRB102 02726 HLH 30235 a |
|
| 1 | | recreational activities or for nature preserves and used for
| 2 | | that purpose within 5
years prior to the adoption of the | 3 | | redevelopment plan. For the purpose of
this subsection, | 4 | | "recreational activities" is limited to mean camping and
| 5 | | hunting.
Each
redevelopment plan shall set forth in writing | 6 | | the program to be undertaken
to accomplish the objectives and | 7 | | shall include but not be limited to:
| 8 | | (A) an itemized list of estimated redevelopment | 9 | | project costs;
| 10 | | (B) evidence indicating that the redevelopment project | 11 | | area on the whole
has not been subject to growth and | 12 | | development through investment by private
enterprise, | 13 | | provided that such evidence shall not be required for any | 14 | | redevelopment project area located within a transit | 15 | | facility improvement area established pursuant to Section | 16 | | 11-74.4-3.3;
| 17 | | (C) an assessment of any financial impact of the | 18 | | redevelopment project
area on or any increased demand for | 19 | | services from any taxing district affected
by the plan and | 20 | | any program to address such financial impact or increased
| 21 | | demand;
| 22 | | (D) the sources of funds to pay costs;
| 23 | | (E) the nature and term of the obligations to be | 24 | | issued;
| 25 | | (F) the most recent equalized assessed valuation of | 26 | | the redevelopment
project area;
|
| | | 10200SB0217ham001 | - 37 - | LRB102 02726 HLH 30235 a |
|
| 1 | | (G) an estimate as to the equalized assessed valuation | 2 | | after redevelopment
and the general land uses to apply in | 3 | | the redevelopment project area;
| 4 | | (H) a commitment to fair employment practices and an | 5 | | affirmative action
plan;
| 6 | | (I) if it concerns an industrial park
conservation | 7 | | area, the plan shall
also include a general description
of | 8 | | any proposed developer, user and tenant of any property, a | 9 | | description
of the type, structure and general character | 10 | | of the facilities to be
developed, a description of the | 11 | | type, class and number of new employees to
be employed in | 12 | | the operation of the facilities to be developed; and
| 13 | | (J) if property is to be annexed to the municipality, | 14 | | the plan shall
include the terms of the annexation | 15 | | agreement.
| 16 | | The provisions of items (B) and (C) of this subsection (n) | 17 | | shall not apply to
a municipality that before March 14, 1994 | 18 | | (the effective date of Public Act
88-537) had fixed, either by | 19 | | its
corporate authorities or by a commission designated under | 20 | | subsection (k) of
Section 11-74.4-4, a time and place for a | 21 | | public hearing as required by
subsection (a) of Section | 22 | | 11-74.4-5.
No redevelopment plan shall be adopted unless a
| 23 | | municipality complies with all of the following requirements:
| 24 | | (1) The municipality finds that the redevelopment | 25 | | project area on
the whole has not been subject to growth | 26 | | and development through investment
by private enterprise |
| | | 10200SB0217ham001 | - 38 - | LRB102 02726 HLH 30235 a |
|
| 1 | | and would not reasonably be anticipated to be
developed | 2 | | without the adoption of the redevelopment plan, provided, | 3 | | however, that such a finding shall not be required with | 4 | | respect to any redevelopment project area located within a | 5 | | transit facility improvement area established pursuant to | 6 | | Section 11-74.4-3.3.
| 7 | | (2) The municipality finds that the redevelopment plan | 8 | | and project conform
to the comprehensive plan for the | 9 | | development of the municipality as a whole,
or, for | 10 | | municipalities with a population of 100,000 or more, | 11 | | regardless of when
the redevelopment plan and project was | 12 | | adopted, the redevelopment plan and
project either: (i) | 13 | | conforms to the strategic economic development or
| 14 | | redevelopment plan issued by the designated planning | 15 | | authority of the
municipality, or (ii) includes land uses | 16 | | that have been approved by the
planning commission of the | 17 | | municipality.
| 18 | | (3) The redevelopment plan establishes the estimated | 19 | | dates of completion
of the redevelopment project and | 20 | | retirement of obligations issued to finance
redevelopment | 21 | | project costs. Those dates may not be later than the dates | 22 | | set forth under Section 11-74.4-3.5.
| 23 | | A municipality may by municipal ordinance amend an | 24 | | existing redevelopment
plan to conform to this paragraph | 25 | | (3) as amended by Public Act 91-478, which
municipal | 26 | | ordinance may be adopted without
further hearing or
notice |
| | | 10200SB0217ham001 | - 39 - | LRB102 02726 HLH 30235 a |
|
| 1 | | and without complying with the procedures provided in this | 2 | | Act
pertaining to an amendment to or the initial approval | 3 | | of a redevelopment plan
and project and
designation of a | 4 | | redevelopment project area.
| 5 | | (3.5) The municipality finds, in the case of an | 6 | | industrial
park
conservation area, also that the | 7 | | municipality is a labor surplus municipality
and that the | 8 | | implementation of the redevelopment plan will reduce | 9 | | unemployment,
create new jobs and by the provision of new | 10 | | facilities enhance the tax base of
the taxing districts | 11 | | that extend into the redevelopment project area.
| 12 | | (4) If any incremental revenues are being utilized | 13 | | under
Section 8(a)(1)
or 8(a)(2) of this Act in | 14 | | redevelopment project areas approved by ordinance
after | 15 | | January 1, 1986, the municipality finds: (a) that the | 16 | | redevelopment
project area would not reasonably be | 17 | | developed without the use of such
incremental revenues, | 18 | | and (b) that such incremental revenues will be
exclusively | 19 | | utilized for the development of the redevelopment project | 20 | | area.
| 21 | | (5) If: (a)
the redevelopment plan will not result in
| 22 | | displacement of
residents from 10 or more inhabited | 23 | | residential units, and the
municipality certifies in the | 24 | | plan that
such displacement will not result from the plan; | 25 | | or (b) the redevelopment plan is for a redevelopment | 26 | | project area or a qualifying transit facility located |
| | | 10200SB0217ham001 | - 40 - | LRB102 02726 HLH 30235 a |
|
| 1 | | within a transit facility improvement area established | 2 | | pursuant to Section 11-74.4-3.3, and the applicable | 3 | | project is subject to the process for evaluation of | 4 | | environmental effects under the National Environmental | 5 | | Policy Act of 1969, 42 U.S.C. 4321 et seq., then a housing | 6 | | impact study
need not be performed.
If, however, the | 7 | | redevelopment plan would result in the displacement
of
| 8 | | residents from 10 or more inhabited
residential units,
or | 9 | | if the redevelopment project area contains 75 or more | 10 | | inhabited residential
units and no
certification is made,
| 11 | | then the municipality shall prepare, as part of the | 12 | | separate
feasibility report required by subsection (a) of | 13 | | Section 11-74.4-5, a housing
impact study.
| 14 | | Part I of the housing impact study shall include (i) | 15 | | data as to whether
the residential units are single family | 16 | | or multi-family units,
(ii) the number and type of rooms | 17 | | within the units, if that information is
available, (iii) | 18 | | whether
the
units are inhabited or uninhabited, as | 19 | | determined not less than 45
days before the date that the | 20 | | ordinance or resolution required
by subsection (a) of | 21 | | Section 11-74.4-5 is passed, and (iv) data as to the
| 22 | | racial and ethnic composition of the residents in the | 23 | | inhabited residential
units. The data requirement as to | 24 | | the racial and ethnic composition of the
residents in the | 25 | | inhabited residential units shall be deemed to be fully
| 26 | | satisfied by data from the most recent federal census.
|
| | | 10200SB0217ham001 | - 41 - | LRB102 02726 HLH 30235 a |
|
| 1 | | Part II of the housing impact study shall identify the | 2 | | inhabited
residential units in the proposed redevelopment | 3 | | project area that are to be or
may be removed. If inhabited | 4 | | residential units are to be removed, then the
housing | 5 | | impact study shall identify (i) the number and location of | 6 | | those units
that will or may be removed, (ii) the | 7 | | municipality's plans for relocation
assistance for those | 8 | | residents in the proposed redevelopment project area
whose | 9 | | residences are to be removed, (iii) the availability of | 10 | | replacement
housing for those residents whose residences | 11 | | are to be removed, and shall
identify the type, location, | 12 | | and cost of the housing, and (iv) the type and
extent
of | 13 | | relocation assistance to be provided.
| 14 | | (6) On and after November 1, 1999, the
housing impact | 15 | | study required by paragraph (5) shall be
incorporated in | 16 | | the redevelopment plan for the
redevelopment project area.
| 17 | | (7) On and after November 1, 1999, no
redevelopment | 18 | | plan shall be adopted, nor an
existing plan amended, nor | 19 | | shall residential housing that is
occupied by households | 20 | | of low-income and very low-income
persons in currently | 21 | | existing redevelopment project
areas be removed after | 22 | | November 1, 1999 unless the redevelopment plan provides, | 23 | | with
respect to inhabited housing units that are to be | 24 | | removed for
households of low-income and very low-income | 25 | | persons, affordable
housing and relocation assistance not | 26 | | less than that which would
be provided under the federal |
| | | 10200SB0217ham001 | - 42 - | LRB102 02726 HLH 30235 a |
|
| 1 | | Uniform Relocation Assistance and
Real Property | 2 | | Acquisition Policies Act of 1970 and the regulations
under | 3 | | that Act, including the eligibility criteria.
Affordable | 4 | | housing may be either existing or newly constructed
| 5 | | housing. For purposes of this paragraph (7), "low-income
| 6 | | households", "very low-income households", and "affordable
| 7 | | housing" have the meanings set forth in the Illinois | 8 | | Affordable
Housing Act.
The municipality shall make a good | 9 | | faith effort to ensure that this affordable
housing is | 10 | | located in or near the redevelopment project area within | 11 | | the
municipality.
| 12 | | (8) On and after November 1, 1999, if,
after the | 13 | | adoption of the redevelopment plan for the
redevelopment | 14 | | project area, any municipality desires to amend its
| 15 | | redevelopment plan
to remove more inhabited residential | 16 | | units than
specified in its original redevelopment plan, | 17 | | that change shall be made in
accordance with the | 18 | | procedures in subsection (c) of Section 11-74.4-5.
| 19 | | (9) For redevelopment project areas designated prior | 20 | | to November 1,
1999, the redevelopment plan may be amended | 21 | | without further joint review board
meeting or hearing, | 22 | | provided that the municipality shall give notice of any
| 23 | | such changes by mail to each affected taxing district and | 24 | | registrant on the
interested party registry, to authorize | 25 | | the municipality to expend tax
increment revenues for | 26 | | redevelopment project costs defined by paragraphs (5)
and |
| | | 10200SB0217ham001 | - 43 - | LRB102 02726 HLH 30235 a |
|
| 1 | | (7.5), subparagraphs (E) and (F) of paragraph (11), and | 2 | | paragraph (11.5) of
subsection (q) of Section 11-74.4-3, | 3 | | so long as the changes do not increase the
total estimated | 4 | | redevelopment project costs set out in the redevelopment | 5 | | plan
by more than 5% after adjustment for inflation from | 6 | | the date the plan was
adopted.
| 7 | | (o) "Redevelopment project" means any public and private | 8 | | development project
in furtherance of the objectives of a | 9 | | redevelopment plan.
On and after November 1, 1999 (the | 10 | | effective date of Public Act 91-478), no
redevelopment plan | 11 | | may be approved or amended that includes the development
of | 12 | | vacant land (i) with a golf course and related clubhouse and | 13 | | other
facilities
or (ii) designated by federal, State, county, | 14 | | or municipal government as public
land for outdoor | 15 | | recreational activities or for nature preserves and used for
| 16 | | that purpose within 5
years prior to the adoption of the | 17 | | redevelopment plan. For the purpose of
this subsection, | 18 | | "recreational activities" is limited to mean camping and
| 19 | | hunting.
| 20 | | (p) "Redevelopment project area" means an area designated | 21 | | by
the
municipality, which is not less in the aggregate than 1 | 22 | | 1/2 acres and in
respect to which the municipality has made a | 23 | | finding that there exist
conditions which cause the area to be | 24 | | classified as an industrial park
conservation area or a | 25 | | blighted area or a conservation area, or a
combination of both | 26 | | blighted areas and conservation areas.
|
| | | 10200SB0217ham001 | - 44 - | LRB102 02726 HLH 30235 a |
|
| 1 | | (p-1) Notwithstanding any provision of this Act to the | 2 | | contrary, on and after August 25, 2009 (the effective date of | 3 | | Public Act 96-680), a redevelopment project area may include | 4 | | areas within a one-half mile radius of an existing or proposed | 5 | | Regional Transportation Authority Suburban Transit Access | 6 | | Route (STAR Line) station without a finding that the area is | 7 | | classified as an industrial park conservation area, a blighted | 8 | | area, a conservation area, or a combination thereof, but only | 9 | | if the municipality receives unanimous consent from the joint | 10 | | review board created to review the proposed redevelopment | 11 | | project area. | 12 | | (p-2) Notwithstanding any provision of this Act to the | 13 | | contrary, on and after the effective date of this amendatory | 14 | | Act of the 99th General Assembly, a redevelopment project area | 15 | | may include areas within a transit facility improvement area | 16 | | that has been established pursuant to Section 11-74.4-3.3 | 17 | | without a finding that the area is classified as an industrial | 18 | | park conservation area, a blighted area, a conservation area, | 19 | | or any combination thereof. | 20 | | (q) "Redevelopment project costs", except for | 21 | | redevelopment project areas created pursuant to subsection | 22 | | (p-1) or (p-2), means and includes the sum total of all
| 23 | | reasonable or necessary costs incurred or estimated to be | 24 | | incurred, and
any such costs incidental to a redevelopment | 25 | | plan and a redevelopment
project. Such costs include, without | 26 | | limitation, the following:
|
| | | 10200SB0217ham001 | - 45 - | LRB102 02726 HLH 30235 a |
|
| 1 | | (1) Costs of studies, surveys, development of plans, | 2 | | and
specifications, implementation and administration of | 3 | | the redevelopment
plan including but not limited to staff | 4 | | and professional service costs for
architectural, | 5 | | engineering, legal, financial, planning or other
services, | 6 | | provided however that no charges for professional services | 7 | | may be
based on a percentage of the tax increment | 8 | | collected; except that on and
after November 1, 1999 (the | 9 | | effective date of Public Act 91-478), no
contracts for
| 10 | | professional services, excluding architectural and | 11 | | engineering services, may be
entered into if the terms of | 12 | | the contract extend
beyond a period of 3 years. In | 13 | | addition, "redevelopment project costs" shall
not include | 14 | | lobbying expenses.
After consultation with the | 15 | | municipality, each tax
increment consultant or advisor to | 16 | | a municipality that plans to designate or
has designated a | 17 | | redevelopment project area shall inform the municipality | 18 | | in
writing of any contracts that the consultant or advisor | 19 | | has entered into with
entities or individuals that have | 20 | | received, or are receiving, payments financed
by tax
| 21 | | increment revenues produced by the redevelopment project | 22 | | area with respect to
which the consultant or advisor has | 23 | | performed, or will be performing, service
for the
| 24 | | municipality. This requirement shall be satisfied by the | 25 | | consultant or advisor
before the commencement of services | 26 | | for the municipality and thereafter
whenever any other |
| | | 10200SB0217ham001 | - 46 - | LRB102 02726 HLH 30235 a |
|
| 1 | | contracts with those individuals or entities are executed | 2 | | by
the consultant or advisor;
| 3 | | (1.5) After July 1, 1999, annual administrative costs | 4 | | shall
not include general overhead or
administrative costs | 5 | | of the municipality
that would still have been incurred by | 6 | | the municipality if the municipality had
not
designated a | 7 | | redevelopment project area or approved a redevelopment | 8 | | plan;
| 9 | | (1.6) The cost of
marketing sites within the | 10 | | redevelopment project area to prospective
businesses, | 11 | | developers, and investors;
| 12 | | (2) Property assembly costs, including but not limited | 13 | | to acquisition
of land and other property, real or | 14 | | personal, or rights or interests therein,
demolition of | 15 | | buildings, site preparation, site improvements that serve | 16 | | as an
engineered barrier addressing ground level or below | 17 | | ground environmental
contamination, including, but not | 18 | | limited to parking lots and other concrete
or asphalt | 19 | | barriers, and the clearing and grading of
land;
| 20 | | (3) Costs of rehabilitation, reconstruction or repair | 21 | | or remodeling of
existing public or private buildings, | 22 | | fixtures, and leasehold
improvements; and the cost of | 23 | | replacing
an existing public building if pursuant to the | 24 | | implementation of a
redevelopment project the existing | 25 | | public building is to be demolished to use
the site for | 26 | | private investment or
devoted to a different use requiring |
| | | 10200SB0217ham001 | - 47 - | LRB102 02726 HLH 30235 a |
|
| 1 | | private investment; including any direct or indirect costs | 2 | | relating to Green Globes or LEED certified construction | 3 | | elements or construction elements with an equivalent | 4 | | certification;
| 5 | | (4) Costs of the construction of public works or | 6 | | improvements, including any direct or indirect costs | 7 | | relating to Green Globes or LEED certified construction | 8 | | elements or construction elements with an equivalent | 9 | | certification, except
that on and after November 1, 1999,
| 10 | | redevelopment
project costs shall not include the cost of | 11 | | constructing a
new municipal public building principally | 12 | | used to provide
offices, storage space, or conference | 13 | | facilities or vehicle storage,
maintenance, or repair for | 14 | | administrative,
public safety, or public works personnel
| 15 | | and that is not intended to replace an existing
public | 16 | | building as provided under paragraph (3) of subsection (q) | 17 | | of Section
11-74.4-3
unless either (i) the construction of | 18 | | the new municipal building
implements a redevelopment | 19 | | project that was included in a redevelopment plan
that was | 20 | | adopted by the municipality prior to November 1, 1999, | 21 | | (ii) the
municipality makes a reasonable
determination in | 22 | | the redevelopment plan, supported by information that | 23 | | provides
the basis for that determination, that the new | 24 | | municipal building is required
to meet an increase in the | 25 | | need for public safety purposes anticipated to
result from | 26 | | the implementation of the redevelopment plan, or (iii) the |
| | | 10200SB0217ham001 | - 48 - | LRB102 02726 HLH 30235 a |
|
| 1 | | new municipal public building is for the storage, | 2 | | maintenance, or repair of transit vehicles and is located | 3 | | in a transit facility improvement area that has been | 4 | | established pursuant to Section 11-74.4-3.3;
| 5 | | (5) Costs of job training and retraining projects, | 6 | | including the cost of
"welfare to work" programs | 7 | | implemented by businesses located within the
redevelopment | 8 | | project area;
| 9 | | (6) Financing costs, including but not limited to all | 10 | | necessary and
incidental expenses related to the issuance | 11 | | of obligations and which may
include payment of interest | 12 | | on any obligations issued hereunder including
interest | 13 | | accruing
during the estimated period of construction of | 14 | | any redevelopment project
for which such obligations are | 15 | | issued and for not exceeding 36 months
thereafter and | 16 | | including reasonable reserves related thereto;
| 17 | | (7) To the extent the municipality by written | 18 | | agreement accepts and
approves
the same, all or a portion | 19 | | of a taxing district's capital costs resulting
from the | 20 | | redevelopment project necessarily incurred or to be | 21 | | incurred within a
taxing district in
furtherance of the | 22 | | objectives of the redevelopment plan and project;
| 23 | | (7.5) For redevelopment project areas designated (or | 24 | | redevelopment
project areas amended to add or increase the | 25 | | number of
tax-increment-financing assisted housing units) | 26 | | on or after November 1,
1999,
an elementary, secondary,
or |
| | | 10200SB0217ham001 | - 49 - | LRB102 02726 HLH 30235 a |
|
| 1 | | unit school
district's increased costs attributable to | 2 | | assisted housing units located
within the
redevelopment | 3 | | project area for which the developer or redeveloper | 4 | | receives
financial assistance through an agreement with | 5 | | the municipality or because the
municipality incurs the | 6 | | cost of necessary infrastructure improvements within
the | 7 | | boundaries of the assisted housing sites necessary for the | 8 | | completion of
that housing
as authorized by this Act, and | 9 | | which costs shall be paid by the municipality
from the | 10 | | Special Tax Allocation Fund when the tax increment revenue | 11 | | is received
as a result of the assisted housing units and | 12 | | shall be calculated annually as
follows:
| 13 | | (A) for foundation districts, excluding any school | 14 | | district in a
municipality with a population in excess | 15 | | of 1,000,000, by multiplying the
district's increase | 16 | | in attendance resulting from the net increase in new
| 17 | | students enrolled in that school district who reside | 18 | | in housing units within
the redevelopment project area | 19 | | that have received financial assistance through
an | 20 | | agreement with the municipality or because the | 21 | | municipality incurs the cost
of necessary | 22 | | infrastructure improvements within the boundaries of | 23 | | the housing
sites necessary for the completion of that | 24 | | housing as authorized by this Act
since the | 25 | | designation of the redevelopment project area by the | 26 | | most recently
available per capita tuition cost as |
| | | 10200SB0217ham001 | - 50 - | LRB102 02726 HLH 30235 a |
|
| 1 | | defined in Section 10-20.12a of the School
Code less | 2 | | any increase in general State aid as defined in | 3 | | Section 18-8.05 of
the School Code or evidence-based | 4 | | funding as defined in Section 18-8.15 of the School | 5 | | Code attributable to these added new students subject | 6 | | to the
following annual limitations:
| 7 | | (i) for unit school districts with a district | 8 | | average 1995-96 Per
Capita
Tuition Charge of less | 9 | | than $5,900, no more than 25% of the total amount | 10 | | of
property tax increment revenue produced by | 11 | | those housing units that have
received tax | 12 | | increment finance assistance under this Act;
| 13 | | (ii) for elementary school districts with a | 14 | | district average 1995-96
Per
Capita Tuition Charge | 15 | | of less than $5,900, no more than 17% of the total | 16 | | amount
of property tax increment revenue produced | 17 | | by those housing units that have
received tax | 18 | | increment finance assistance under this Act; and
| 19 | | (iii) for secondary school districts with a | 20 | | district average 1995-96
Per
Capita Tuition Charge | 21 | | of less than $5,900, no more than 8% of the total | 22 | | amount
of property tax increment revenue produced | 23 | | by those housing units that have
received tax | 24 | | increment finance assistance under this Act.
| 25 | | (B) For alternate method districts, flat grant | 26 | | districts, and foundation
districts with a district |
| | | 10200SB0217ham001 | - 51 - | LRB102 02726 HLH 30235 a |
|
| 1 | | average 1995-96 Per Capita Tuition Charge equal to or
| 2 | | more than $5,900, excluding any school district with a | 3 | | population in excess of
1,000,000, by multiplying the | 4 | | district's increase in attendance
resulting
from the | 5 | | net increase in new students enrolled in that school | 6 | | district who
reside in
housing units within the | 7 | | redevelopment project area that have received
| 8 | | financial assistance through an agreement with the | 9 | | municipality or because the
municipality incurs the | 10 | | cost of necessary infrastructure improvements within
| 11 | | the boundaries of the housing sites necessary for the | 12 | | completion of that
housing as authorized by this Act | 13 | | since the designation of the redevelopment
project | 14 | | area by the most recently available per capita tuition | 15 | | cost as defined
in Section 10-20.12a of the School | 16 | | Code less any increase in general state aid
as defined | 17 | | in Section 18-8.05 of the School Code or | 18 | | evidence-based funding as defined in Section 18-8.15 | 19 | | of the School Code attributable to these added
new | 20 | | students subject to the following annual limitations:
| 21 | | (i) for unit school districts, no more than | 22 | | 40% of the total amount of
property tax increment | 23 | | revenue produced by those housing units that have
| 24 | | received tax increment finance assistance under | 25 | | this Act;
| 26 | | (ii) for elementary school districts, no more |
| | | 10200SB0217ham001 | - 52 - | LRB102 02726 HLH 30235 a |
|
| 1 | | than 27% of the total
amount
of property tax | 2 | | increment revenue produced by those housing units | 3 | | that have
received tax increment finance | 4 | | assistance under this Act; and
| 5 | | (iii) for secondary school districts, no more | 6 | | than 13% of the total
amount
of property tax | 7 | | increment revenue produced by those housing units | 8 | | that have
received tax increment finance | 9 | | assistance under this Act.
| 10 | | (C) For any school district in a municipality with | 11 | | a population in
excess of
1,000,000, the following | 12 | | restrictions shall apply to the
reimbursement of | 13 | | increased costs under this paragraph (7.5):
| 14 | | (i) no increased costs shall be reimbursed | 15 | | unless the school district
certifies that each of | 16 | | the schools affected by the assisted housing | 17 | | project
is at or over its student capacity;
| 18 | | (ii) the amount reimbursable shall be reduced | 19 | | by the value of any
land
donated to the school | 20 | | district by the municipality or developer, and by | 21 | | the
value of any physical improvements made to the | 22 | | schools by the
municipality or developer; and
| 23 | | (iii) the amount reimbursed may not affect | 24 | | amounts otherwise obligated
by
the terms of any | 25 | | bonds, notes, or other funding instruments, or the | 26 | | terms of
any redevelopment agreement.
|
| | | 10200SB0217ham001 | - 53 - | LRB102 02726 HLH 30235 a |
|
| 1 | | Any school district seeking payment under this | 2 | | paragraph (7.5) shall,
after July 1 and before | 3 | | September 30 of each year,
provide the municipality | 4 | | with reasonable evidence to support its claim for
| 5 | | reimbursement before the municipality shall be | 6 | | required to approve or make
the payment to the school | 7 | | district. If the school district fails to provide
the | 8 | | information during this period in any year, it shall | 9 | | forfeit any claim to
reimbursement for that year. | 10 | | School districts may adopt a resolution
waiving the | 11 | | right to all or a portion of the reimbursement | 12 | | otherwise required
by this paragraph
(7.5). By | 13 | | acceptance of this reimbursement the school
district | 14 | | waives the right to directly or indirectly set aside, | 15 | | modify, or
contest in any manner the establishment of | 16 | | the redevelopment project area or
projects;
| 17 | | (7.7) For redevelopment project areas designated (or | 18 | | redevelopment
project areas amended to add or increase the | 19 | | number of
tax-increment-financing assisted housing units) | 20 | | on or after
January 1, 2005 (the effective date of Public | 21 | | Act 93-961),
a public library
district's increased costs | 22 | | attributable to assisted housing units located
within the
| 23 | | redevelopment project area for which the developer or | 24 | | redeveloper receives
financial assistance through an | 25 | | agreement with the municipality or because the
| 26 | | municipality incurs the cost of necessary infrastructure |
| | | 10200SB0217ham001 | - 54 - | LRB102 02726 HLH 30235 a |
|
| 1 | | improvements within
the boundaries of the assisted housing | 2 | | sites necessary for the completion of
that housing
as | 3 | | authorized by this Act shall be paid to the library | 4 | | district by the
municipality
from the Special Tax | 5 | | Allocation Fund when the tax increment revenue is received
| 6 | | as a result of the assisted housing units. This paragraph | 7 | | (7.7) applies only if (i) the library district is located | 8 | | in a county that is subject to the Property Tax Extension | 9 | | Limitation Law or (ii) the library district is not located | 10 | | in a county that is subject to the Property Tax Extension | 11 | | Limitation Law but the district is prohibited by any other | 12 | | law from increasing its tax levy rate without a prior | 13 | | voter referendum.
| 14 | | The amount paid to a library district under this | 15 | | paragraph (7.7) shall be
calculated
by multiplying (i) the | 16 | | net increase in the number of persons eligible to obtain
a
| 17 | | library card
in that district who reside in housing units | 18 | | within
the redevelopment project area that have received | 19 | | financial assistance through
an agreement with the | 20 | | municipality or because the municipality incurs the cost
| 21 | | of necessary infrastructure improvements within the | 22 | | boundaries of the housing
sites necessary for the | 23 | | completion of that housing as authorized by this Act
since | 24 | | the designation of the redevelopment project area by (ii)
| 25 | | the per-patron cost of providing library services so long | 26 | | as it does not exceed $120.
The per-patron cost shall be |
| | | 10200SB0217ham001 | - 55 - | LRB102 02726 HLH 30235 a |
|
| 1 | | the Total Operating Expenditures Per Capita for the | 2 | | library in the previous fiscal year.
The municipality may | 3 | | deduct from the amount that it must pay to a library | 4 | | district under this paragraph any amount that it has | 5 | | voluntarily paid to the library district from the tax | 6 | | increment revenue. The amount paid to a library district | 7 | | under this paragraph (7.7) shall be no
more
than 2% of the | 8 | | amount produced by the assisted housing units and | 9 | | deposited into the Special Tax Allocation Fund.
| 10 | | A library district is not eligible for any payment | 11 | | under this paragraph
(7.7)
unless the library district has | 12 | | experienced an increase in the
number of patrons from the | 13 | | municipality that created the tax-increment-financing | 14 | | district since the designation of the redevelopment | 15 | | project area.
| 16 | | Any library district seeking payment under this | 17 | | paragraph (7.7) shall,
after July 1 and before September | 18 | | 30 of each year,
provide the municipality with convincing | 19 | | evidence to support its claim for
reimbursement before the | 20 | | municipality shall be required to approve or make
the | 21 | | payment to the library district. If the library district | 22 | | fails to provide
the information during this period in any | 23 | | year, it shall forfeit any claim to
reimbursement for that | 24 | | year. Library districts may adopt a resolution
waiving the | 25 | | right to all or a portion of the reimbursement otherwise | 26 | | required by this paragraph (7.7). By acceptance of such |
| | | 10200SB0217ham001 | - 56 - | LRB102 02726 HLH 30235 a |
|
| 1 | | reimbursement, the library district shall forfeit any | 2 | | right to directly or indirectly set aside, modify, or | 3 | | contest in any manner whatsoever the establishment of the | 4 | | redevelopment project area or
projects; | 5 | | (8) Relocation costs to the extent that a municipality | 6 | | determines that
relocation costs shall be paid or is | 7 | | required to make payment of relocation
costs by federal or | 8 | | State law or in order to satisfy subparagraph (7) of
| 9 | | subsection (n);
| 10 | | (9) Payment in lieu of taxes;
| 11 | | (10) Costs of job training, retraining, advanced | 12 | | vocational education
or career
education, including but | 13 | | not limited to courses in occupational,
semi-technical or | 14 | | technical fields leading directly to employment, incurred
| 15 | | by one or more taxing districts, provided that such costs | 16 | | (i) are related
to the establishment and maintenance of | 17 | | additional job training, advanced
vocational education or | 18 | | career education programs for persons employed or
to be | 19 | | employed by employers located in a redevelopment project | 20 | | area; and
(ii) when incurred by a taxing district or | 21 | | taxing districts other than the
municipality, are set | 22 | | forth in a written agreement by or among the
municipality | 23 | | and the taxing district or taxing districts, which | 24 | | agreement
describes the program to be undertaken, | 25 | | including but not limited to the
number of employees to be | 26 | | trained, a description of the training and
services to be |
| | | 10200SB0217ham001 | - 57 - | LRB102 02726 HLH 30235 a |
|
| 1 | | provided, the number and type of positions available or to
| 2 | | be available, itemized costs of the program and sources of | 3 | | funds to pay for the
same, and the term of the agreement. | 4 | | Such costs include, specifically, the
payment by community | 5 | | college districts of costs pursuant to Sections 3-37,
| 6 | | 3-38, 3-40 and 3-40.1 of the Public Community College Act | 7 | | and by school
districts of costs pursuant to Sections | 8 | | 10-22.20a and 10-23.3a of the School
Code;
| 9 | | (11) Interest cost incurred by a redeveloper related | 10 | | to the
construction, renovation or rehabilitation of a | 11 | | redevelopment project
provided that:
| 12 | | (A) such costs are to be paid directly from the | 13 | | special tax
allocation fund established pursuant to | 14 | | this Act;
| 15 | | (B) such payments in any one year may not exceed | 16 | | 30% of the annual
interest costs incurred by the | 17 | | redeveloper with regard to the redevelopment
project | 18 | | during that year;
| 19 | | (C) if there are not sufficient funds available in | 20 | | the special tax
allocation fund to make the payment | 21 | | pursuant to this paragraph (11) then
the amounts so | 22 | | due shall accrue and be payable when sufficient funds | 23 | | are
available in the special tax allocation fund;
| 24 | | (D) the total of such interest payments paid | 25 | | pursuant to this Act
may not exceed 30% of the total | 26 | | (i) cost paid or incurred by the
redeveloper for the |
| | | 10200SB0217ham001 | - 58 - | LRB102 02726 HLH 30235 a |
|
| 1 | | redevelopment project plus (ii) redevelopment project
| 2 | | costs excluding any property assembly costs and any | 3 | | relocation costs
incurred by a municipality pursuant | 4 | | to this Act;
| 5 | | (E) the cost limits set forth in subparagraphs (B) | 6 | | and (D) of
paragraph (11) shall be modified for the | 7 | | financing of rehabilitated or
new housing units for | 8 | | low-income households and very low-income households, | 9 | | as
defined in
Section 3 of the Illinois Affordable | 10 | | Housing Act. The percentage of
75% shall be | 11 | | substituted for 30% in subparagraphs (B) and (D) of
| 12 | | paragraph (11); and
| 13 | | (F) instead of the eligible costs provided by | 14 | | subparagraphs (B) and (D)
of
paragraph (11), as | 15 | | modified by this subparagraph, and notwithstanding
any | 16 | | other provisions of this Act to the contrary, the | 17 | | municipality may
pay from tax increment revenues up to | 18 | | 50% of the cost of construction
of new housing units to | 19 | | be occupied by low-income households and very
| 20 | | low-income
households as defined in Section 3 of the | 21 | | Illinois Affordable Housing
Act. The cost of | 22 | | construction of those units may be derived from the
| 23 | | proceeds of bonds issued by the municipality under | 24 | | this Act or
other constitutional or statutory | 25 | | authority or from other sources of
municipal revenue | 26 | | that may be reimbursed from tax increment
revenues or |
| | | 10200SB0217ham001 | - 59 - | LRB102 02726 HLH 30235 a |
|
| 1 | | the proceeds of bonds issued to finance the | 2 | | construction
of that housing.
| 3 | | The eligible costs provided under this | 4 | | subparagraph (F) of paragraph (11)
shall
be
an | 5 | | eligible cost for the construction, renovation, and | 6 | | rehabilitation of all
low and very low-income housing | 7 | | units, as defined in Section 3 of the Illinois
| 8 | | Affordable Housing Act, within the redevelopment | 9 | | project area. If the low and
very
low-income units are | 10 | | part of a residential redevelopment project that | 11 | | includes
units not affordable to low and very | 12 | | low-income households, only the low and
very | 13 | | low-income units shall be eligible for benefits under | 14 | | this subparagraph (F) of
paragraph (11).
The standards | 15 | | for maintaining the occupancy
by low-income households | 16 | | and very low-income households,
as
defined in Section | 17 | | 3 of the Illinois Affordable Housing Act,
of those | 18 | | units constructed with eligible costs made available | 19 | | under the
provisions of
this subparagraph (F) of | 20 | | paragraph (11)
shall be
established by guidelines | 21 | | adopted by the municipality. The
responsibility for | 22 | | annually documenting the initial occupancy of
the | 23 | | units by low-income households and very low-income | 24 | | households, as defined
in
Section 3
of the Illinois | 25 | | Affordable Housing Act, shall be that of the then | 26 | | current
owner of the property.
For ownership units, |
| | | 10200SB0217ham001 | - 60 - | LRB102 02726 HLH 30235 a |
|
| 1 | | the guidelines will provide, at a minimum, for a
| 2 | | reasonable recapture of funds, or other appropriate | 3 | | methods designed to
preserve the original | 4 | | affordability of the ownership units. For rental | 5 | | units,
the guidelines will provide, at a minimum, for | 6 | | the affordability of rent to low
and very low-income | 7 | | households. As units become available, they shall be
| 8 | | rented to income-eligible tenants.
The municipality | 9 | | may modify these
guidelines from time to time; the | 10 | | guidelines, however, shall be in effect
for as long as | 11 | | tax increment revenue is being used to pay for costs
| 12 | | associated with the units or for the retirement of | 13 | | bonds issued to finance
the units or for the life of | 14 | | the redevelopment project area, whichever is
later;
| 15 | | (11.5) If the redevelopment project area is located | 16 | | within a municipality
with a population of more than | 17 | | 100,000, the cost of day care services for
children of | 18 | | employees from
low-income
families working for businesses | 19 | | located within the redevelopment project area
and all or a
| 20 | | portion of the cost of operation of day care centers | 21 | | established by
redevelopment project
area businesses to | 22 | | serve employees from low-income families working in
| 23 | | businesses
located in the redevelopment project area. For | 24 | | the purposes of this paragraph,
"low-income families" | 25 | | means families whose annual income does not exceed 80% of
| 26 | | the
municipal, county, or regional median income, adjusted |
| | | 10200SB0217ham001 | - 61 - | LRB102 02726 HLH 30235 a |
|
| 1 | | for family size, as the
annual
income and municipal, | 2 | | county, or regional median income are determined from
time | 3 | | to
time by the United States Department of Housing and | 4 | | Urban Development.
| 5 | | (12) Costs relating to the development of urban | 6 | | agricultural areas under Division 15.2 of the Illinois | 7 | | Municipal Code. | 8 | | (13) Costs of business interruption or closures. Such | 9 | | costs are payable to businesses located within the | 10 | | redevelopment area that have experienced business | 11 | | interruption or other adverse conditions directly or | 12 | | indirectly attributable to the COVID-19 public health | 13 | | emergency and experienced during a statewide disaster | 14 | | declaration regarding COVID-19. These costs may be | 15 | | reimbursed in the form of grants, subsidies, or loans | 16 | | distributed prior to December 31, 2022. | 17 | | The municipality may establish, by ordinance or | 18 | | resolution, procedures for the payment of such costs, | 19 | | including application procedures, grant or loan | 20 | | agreements, certifications, payment methodologies, and | 21 | | other accountability measures that may be imposed upon | 22 | | participating businesses. | 23 | | As used in this subsection, "costs of business | 24 | | interruption" means either of the following: decreases in | 25 | | revenue caused by closing or limiting access to the | 26 | | business establishment to comply with COVID-19 public |
| | | 10200SB0217ham001 | - 62 - | LRB102 02726 HLH 30235 a |
|
| 1 | | health emergency prevention directives or to otherwise | 2 | | prevent the spread of COVID-19 within the business | 3 | | establishment; or decreases in revenue caused by decreased | 4 | | customer demand as a result of the COVID-19 public health | 5 | | emergency. | 6 | | Unless explicitly stated herein the cost of construction | 7 | | of new
privately-owned buildings shall not be an eligible | 8 | | redevelopment project cost.
| 9 | | After November 1, 1999 (the effective date of Public Act
| 10 | | 91-478), none of
the
redevelopment project costs enumerated in | 11 | | this subsection shall be eligible
redevelopment project costs | 12 | | if those costs would provide direct financial
support to a
| 13 | | retail entity initiating operations in the
redevelopment | 14 | | project area while
terminating operations at another Illinois | 15 | | location within 10 miles of the
redevelopment project area but | 16 | | outside the boundaries of the redevelopment
project area | 17 | | municipality. For
purposes of this paragraph, termination | 18 | | means a
closing of a retail operation that is directly related | 19 | | to the opening of the
same operation or like retail entity | 20 | | owned or operated by more than 50% of the
original ownership in | 21 | | a redevelopment project area, but
it does not mean
closing an | 22 | | operation for reasons beyond the control of the
retail entity, | 23 | | as
documented by the retail entity, subject to a reasonable | 24 | | finding by the
municipality that the current location | 25 | | contained inadequate space, had become
economically obsolete, | 26 | | or was no longer a viable location for the retailer or
|
| | | 10200SB0217ham001 | - 63 - | LRB102 02726 HLH 30235 a |
|
| 1 | | serviceman.
| 2 | | No cost shall be a redevelopment project cost in a | 3 | | redevelopment project area if used to demolish, remove, or | 4 | | substantially modify a historic resource, after August 26, | 5 | | 2008 (the effective date of Public Act 95-934), unless no | 6 | | prudent and feasible alternative exists. "Historic resource" | 7 | | for the purpose of this paragraph means (i) a place or | 8 | | structure that is included or eligible for inclusion on the | 9 | | National Register of Historic Places or (ii) a contributing | 10 | | structure in a district on the National Register of Historic | 11 | | Places. This paragraph does not apply to a place or structure | 12 | | for which demolition, removal, or modification is subject to | 13 | | review by the preservation agency of a Certified Local | 14 | | Government designated as such by the National Park Service of | 15 | | the United States Department of the Interior. | 16 | | If a special service area has been established pursuant to
| 17 | | the Special Service Area Tax Act or Special Service Area Tax | 18 | | Law, then any
tax increment revenues derived
from the tax | 19 | | imposed pursuant to the Special Service Area Tax Act or | 20 | | Special
Service Area Tax Law may
be used within the | 21 | | redevelopment project area for the purposes permitted by
that | 22 | | Act or Law as well as the purposes permitted by this Act.
| 23 | | (q-1) For redevelopment project areas created pursuant to | 24 | | subsection (p-1), redevelopment project costs are limited to | 25 | | those costs in paragraph (q) that are related to the existing | 26 | | or proposed Regional Transportation Authority Suburban Transit |
| | | 10200SB0217ham001 | - 64 - | LRB102 02726 HLH 30235 a |
|
| 1 | | Access Route (STAR Line) station. | 2 | | (q-2) For a transit facility improvement area established | 3 | | prior to, on, or after the effective date of this amendatory | 4 | | Act of the 102nd General Assembly: (i) "redevelopment project | 5 | | costs" means those costs described in subsection (q) that are | 6 | | related to the construction, reconstruction, rehabilitation, | 7 | | remodeling, or repair of any existing or proposed transit | 8 | | facility, whether that facility is located within or outside | 9 | | the boundaries of a redevelopment project area established | 10 | | within that transit facility improvement area (and, to the | 11 | | extent a redevelopment project cost is described in subsection | 12 | | (q) as incurred or estimated to be incurred with respect to a | 13 | | redevelopment project area, then it shall apply with respect | 14 | | to such transit facility improvement area); and (ii) the | 15 | | provisions of Section 11-74.4-8 regarding tax increment | 16 | | allocation financing for a redevelopment project area located | 17 | | in a transit facility improvement area shall apply only to the | 18 | | lots, blocks, tracts and parcels of real property that are | 19 | | located within the boundaries of that redevelopment project | 20 | | area and not to the lots, blocks, tracts, and parcels of real | 21 | | property that are located outside the boundaries of that | 22 | | redevelopment project area. | 23 | | (r) "State Sales Tax Boundary" means the redevelopment | 24 | | project area or
the amended redevelopment project area | 25 | | boundaries which are determined
pursuant to subsection (9) of | 26 | | Section 11-74.4-8a of this
Act. The Department of Revenue |
| | | 10200SB0217ham001 | - 65 - | LRB102 02726 HLH 30235 a |
|
| 1 | | shall certify pursuant to subsection (9) of
Section 11-74.4-8a | 2 | | the appropriate boundaries eligible for the
determination of | 3 | | State Sales Tax Increment.
| 4 | | (s) "State Sales Tax Increment" means an amount equal to | 5 | | the increase
in the aggregate amount of taxes paid by | 6 | | retailers and servicemen, other
than retailers and servicemen | 7 | | subject to the Public Utilities Act,
on transactions at places | 8 | | of business located within a State Sales Tax
Boundary pursuant | 9 | | to the Retailers' Occupation Tax Act, the Use Tax Act,
the | 10 | | Service Use Tax Act, and the Service Occupation Tax Act, | 11 | | except such
portion of such increase that is paid into the | 12 | | State and Local Sales Tax
Reform Fund, the Local Government | 13 | | Distributive Fund, the Local
Government Tax Fund and the | 14 | | County and Mass Transit District Fund, for as
long as State | 15 | | participation exists, over and above the Initial Sales Tax
| 16 | | Amounts, Adjusted Initial Sales Tax Amounts or the Revised | 17 | | Initial Sales
Tax Amounts for such taxes as certified by the | 18 | | Department of Revenue and
paid under those Acts by retailers | 19 | | and servicemen on transactions at places
of business located | 20 | | within the State Sales Tax Boundary during the base
year which | 21 | | shall be the calendar year immediately prior to the year in
| 22 | | which the municipality adopted tax increment allocation | 23 | | financing, less
3.0% of such amounts generated under the | 24 | | Retailers' Occupation Tax Act, Use
Tax Act and Service Use Tax | 25 | | Act and the Service Occupation Tax Act, which
sum shall be | 26 | | appropriated to the Department of Revenue to cover its costs
|
| | | 10200SB0217ham001 | - 66 - | LRB102 02726 HLH 30235 a |
|
| 1 | | of administering and enforcing this Section. For purposes of | 2 | | computing the
aggregate amount of such taxes for base years | 3 | | occurring prior to 1985, the
Department of Revenue shall | 4 | | compute the Initial Sales Tax Amount for such
taxes and deduct | 5 | | therefrom an amount equal to 4% of the aggregate amount of
| 6 | | taxes per year for each year the base year is prior to 1985, | 7 | | but not to
exceed a total deduction of 12%. The amount so | 8 | | determined shall be known
as the "Adjusted Initial Sales Tax | 9 | | Amount". For purposes of determining the
State Sales Tax | 10 | | Increment the Department of Revenue shall for each period
| 11 | | subtract from the tax amounts received from retailers and | 12 | | servicemen on
transactions located in the State Sales Tax | 13 | | Boundary, the certified Initial
Sales Tax Amounts, Adjusted | 14 | | Initial Sales Tax Amounts or Revised Initial
Sales Tax Amounts | 15 | | for the Retailers' Occupation Tax Act, the Use Tax Act,
the | 16 | | Service Use Tax Act and the Service Occupation Tax Act. For the | 17 | | State
Fiscal Year 1989 this calculation shall be made by | 18 | | utilizing the calendar
year 1987 to determine the tax amounts | 19 | | received. For the State Fiscal Year
1990, this calculation | 20 | | shall be made by utilizing the period from January
1, 1988, | 21 | | until September 30, 1988, to determine the tax amounts | 22 | | received
from retailers and servicemen, which shall have | 23 | | deducted therefrom
nine-twelfths of the certified Initial | 24 | | Sales Tax Amounts, Adjusted Initial
Sales Tax Amounts or the | 25 | | Revised Initial Sales Tax Amounts as appropriate.
For the | 26 | | State Fiscal Year 1991, this calculation shall be made by |
| | | 10200SB0217ham001 | - 67 - | LRB102 02726 HLH 30235 a |
|
| 1 | | utilizing
the period from October 1, 1988, until June 30, | 2 | | 1989, to determine the tax
amounts received from retailers and | 3 | | servicemen, which shall have
deducted therefrom nine-twelfths | 4 | | of the certified Initial State Sales Tax
Amounts, Adjusted | 5 | | Initial Sales Tax Amounts or the Revised Initial Sales
Tax | 6 | | Amounts as appropriate. For every State Fiscal Year | 7 | | thereafter, the
applicable period shall be the 12 months | 8 | | beginning July 1 and ending on
June 30, to determine the tax | 9 | | amounts received which shall have deducted
therefrom the | 10 | | certified Initial Sales Tax Amounts, Adjusted Initial Sales
| 11 | | Tax Amounts or the Revised Initial Sales Tax Amounts. | 12 | | Municipalities
intending to receive a distribution of State | 13 | | Sales Tax Increment must
report a list of retailers to the | 14 | | Department of Revenue by October 31, 1988
and by July 31, of | 15 | | each year thereafter.
| 16 | | (t) "Taxing districts" means counties, townships, cities | 17 | | and incorporated
towns and villages, school, road, park, | 18 | | sanitary, mosquito abatement, forest
preserve, public health, | 19 | | fire protection, river conservancy, tuberculosis
sanitarium | 20 | | and any other municipal corporations or districts with the | 21 | | power
to levy taxes.
| 22 | | (u) "Taxing districts' capital costs" means those costs of | 23 | | taxing districts
for capital improvements that are found by | 24 | | the municipal corporate authorities
to be necessary and | 25 | | directly result from the redevelopment project.
| 26 | | (v) As used in subsection (a) of Section 11-74.4-3 of this
|
| | | 10200SB0217ham001 | - 68 - | LRB102 02726 HLH 30235 a |
|
| 1 | | Act, "vacant
land" means any parcel or combination of parcels | 2 | | of real property without
industrial, commercial, and | 3 | | residential buildings which has not been used
for commercial | 4 | | agricultural purposes within 5 years prior to the
designation | 5 | | of the redevelopment project area, unless the parcel
is | 6 | | included in an industrial park conservation area or the parcel | 7 | | has
been subdivided; provided that if the parcel was part of a | 8 | | larger tract that
has been divided into 3 or more smaller | 9 | | tracts that were accepted for
recording during the period from | 10 | | 1950 to 1990, then the parcel shall be deemed
to have been | 11 | | subdivided, and all proceedings and actions of the | 12 | | municipality
taken in that connection with respect to any | 13 | | previously approved or designated
redevelopment project area | 14 | | or amended redevelopment project area are hereby
validated and | 15 | | hereby declared to be legally sufficient for all purposes of | 16 | | this
Act.
For purposes of this Section and only for land | 17 | | subject to
the subdivision requirements of the Plat Act, land | 18 | | is subdivided when the
original plat of
the proposed | 19 | | Redevelopment Project Area or relevant portion thereof has
| 20 | | been
properly certified, acknowledged, approved, and recorded | 21 | | or filed in accordance
with the Plat Act and a preliminary | 22 | | plat, if any, for any subsequent phases of
the
proposed | 23 | | Redevelopment Project Area or relevant portion thereof has | 24 | | been
properly approved and filed in accordance with the | 25 | | applicable ordinance of the
municipality.
| 26 | | (w) "Annual Total Increment" means the sum of each |
| | | 10200SB0217ham001 | - 69 - | LRB102 02726 HLH 30235 a |
|
| 1 | | municipality's
annual Net Sales Tax Increment and each | 2 | | municipality's annual Net Utility
Tax Increment. The ratio of | 3 | | the Annual Total Increment of each
municipality to the Annual | 4 | | Total Increment for all municipalities, as most
recently | 5 | | calculated by the Department, shall determine the proportional
| 6 | | shares of the Illinois Tax Increment Fund to be distributed to | 7 | | each
municipality.
| 8 | | (x) "LEED certified" means any certification level of | 9 | | construction elements by a qualified Leadership in Energy and | 10 | | Environmental Design Accredited Professional as determined by | 11 | | the U.S. Green Building Council. | 12 | | (y) "Green Globes certified" means any certification level | 13 | | of construction elements by a qualified Green Globes | 14 | | Professional as determined by the Green Building Initiative. | 15 | | (Source: P.A. 102-627, eff. 8-27-21.)
| 16 | | Section 15. The Illinois Banking Act is amended by | 17 | | changing Sections 2 and 30 as follows:
| 18 | | (205 ILCS 5/2) (from Ch. 17, par. 302)
| 19 | | Sec. 2. General definitions. In this Act, unless the | 20 | | context otherwise
requires, the following words and phrases | 21 | | shall have the following meanings:
| 22 | | "Accommodation party" shall have the meaning ascribed to | 23 | | that term in
Section 3-419 of the Uniform Commercial Code.
| 24 | | "Action" in the sense of a judicial proceeding includes |
| | | 10200SB0217ham001 | - 70 - | LRB102 02726 HLH 30235 a |
|
| 1 | | recoupments,
counterclaims, set-off, and any other proceeding | 2 | | in which
rights are determined.
| 3 | | "Affiliate facility" of a bank means a main banking | 4 | | premises or branch
of another commonly owned bank.
The main | 5 | | banking premises or any branch of a bank
may be an "affiliate | 6 | | facility" with respect to one or more other commonly owned
| 7 | | banks.
| 8 | | "Appropriate federal banking agency" means the Federal | 9 | | Deposit Insurance
Corporation, the Federal Reserve Bank of | 10 | | Chicago, or the Federal Reserve Bank
of St. Louis, as | 11 | | determined by federal law.
| 12 | | "Bank" means any person doing a banking business whether | 13 | | subject to the
laws of this or any other jurisdiction.
| 14 | | A "banking house", "branch", "branch bank" or "branch
| 15 | | office" shall mean any place of business of a bank at which | 16 | | deposits are
received, checks paid, or loans made, but shall | 17 | | not include any place at
which only records thereof are made, | 18 | | posted, or kept. A place of business
at which deposits are | 19 | | received, checks paid, or loans made shall not be
deemed to be | 20 | | a branch, branch bank, or branch office if the place of
| 21 | | business is adjacent to and connected with the main banking | 22 | | premises, or if
it is separated from the main banking premises | 23 | | by not more than an alley;
provided always that (i) if the | 24 | | place of business is separated by an alley
from the main | 25 | | banking premises there is a connection between the two by
| 26 | | public or private way or by subterranean or overhead passage, |
| | | 10200SB0217ham001 | - 71 - | LRB102 02726 HLH 30235 a |
|
| 1 | | and (ii) if
the place of business is in a building not wholly | 2 | | occupied by the bank, the
place of business shall not be within | 3 | | any office or room in which any other
business or service of | 4 | | any kind or nature other than the business of the
bank is | 5 | | conducted or carried on. A place of business at which deposits | 6 | | are
received, checks paid, or loans made shall not be deemed to | 7 | | be a branch,
branch bank, or branch office (i) of any bank if | 8 | | the place is a terminal established and maintained in | 9 | | accordance with
paragraph
(17) of Section 5 of this Act, or | 10 | | (ii) of a commonly owned bank
by virtue of
transactions | 11 | | conducted at that place on behalf of the other commonly owned | 12 | | bank
under paragraph (23) of Section 5 of this Act if the place | 13 | | is an affiliate
facility with respect to the other bank.
| 14 | | "Branch of an out-of-state bank" means a branch | 15 | | established or maintained in
Illinois by an out-of-state bank | 16 | | as a result of a merger between an Illinois
bank and the | 17 | | out-of-state bank that occurs on or after May 31, 1997, or any
| 18 | | branch established by the out-of-state bank following the | 19 | | merger.
| 20 | | "Bylaws" means the bylaws of a bank that are adopted by the | 21 | | bank's board of
directors or shareholders for the regulation | 22 | | and management of the bank's
affairs. If the bank operates as a | 23 | | limited liability company, however, "bylaws"
means the | 24 | | operating
agreement of the bank.
| 25 | | "Call report fee" means the fee to be paid to the
| 26 | | Commissioner by each State bank pursuant to paragraph (a) of |
| | | 10200SB0217ham001 | - 72 - | LRB102 02726 HLH 30235 a |
|
| 1 | | subsection (3)
of Section 48 of this Act.
| 2 | | "Capital" includes the aggregate of outstanding capital | 3 | | stock and
preferred stock.
| 4 | | "Cash flow reserve account" means the account within the | 5 | | books and records
of the Commissioner of Banks and Real Estate | 6 | | used to
record funds designated to maintain a reasonable Bank | 7 | | and Trust Company Fund
operating balance to meet agency | 8 | | obligations on a timely basis.
| 9 | | "Charter" includes the original charter and all amendments | 10 | | thereto
and articles of merger or consolidation.
| 11 | | "Commissioner" means the Commissioner of Banks and Real | 12 | | Estate, except that beginning on April 6, 2009 (the effective | 13 | | date of Public Act 95-1047), all references in this Act to the | 14 | | Commissioner of Banks and Real Estate are deemed, in | 15 | | appropriate contexts, to be references to the Secretary of | 16 | | Financial and Professional Regulation.
| 17 | | "Commonly owned banks" means 2 or more banks that each | 18 | | qualify as a bank
subsidiary of the same bank holding company | 19 | | pursuant to Section 18 of the
Federal Deposit Insurance Act; | 20 | | "commonly owned bank" refers to one of a group
of commonly | 21 | | owned banks but only with respect to one or more of the other | 22 | | banks
in the same group.
| 23 | | "Community" means a city, village, or incorporated town | 24 | | and also includes
the area served by the banking offices of a | 25 | | bank, but need not be limited or
expanded to conform to the | 26 | | geographic boundaries of units of local
government.
|
| | | 10200SB0217ham001 | - 73 - | LRB102 02726 HLH 30235 a |
|
| 1 | | "Company" means a corporation, limited liability company, | 2 | | partnership,
business trust,
association, or similar | 3 | | organization and, unless specifically excluded,
includes a | 4 | | "State bank" and a "bank".
| 5 | | "Consolidating bank" means a party to a consolidation.
| 6 | | "Consolidation" takes place when 2 or more banks, or a | 7 | | trust company and
a bank, are extinguished and by the same | 8 | | process a new bank is created,
taking over the assets and | 9 | | assuming the liabilities of the banks or trust
company passing | 10 | | out of existence.
| 11 | | "Continuing bank" means a merging bank, the charter of | 12 | | which becomes the
charter of the resulting bank.
| 13 | | "Converting bank" means a State bank converting to become | 14 | | a national
bank, or a national bank converting to become a | 15 | | State bank.
| 16 | | "Converting trust company" means a trust company | 17 | | converting to become a
State bank.
| 18 | | "Court" means a court of competent jurisdiction.
| 19 | | "Director" means a member of the board of directors of a | 20 | | bank. In the case
of a manager-managed limited liability | 21 | | company, however, "director" means a
manager of
the bank and, | 22 | | in the case of a member-managed limited liability company,
| 23 | | "director" means a member of the bank. The term "director" | 24 | | does not include an
advisory director, honorary director, | 25 | | director emeritus, or similar person,
unless the person is | 26 | | otherwise performing
functions similar to those of a member of |
| | | 10200SB0217ham001 | - 74 - | LRB102 02726 HLH 30235 a |
|
| 1 | | the board of directors.
| 2 | | "Director of Banking" means the Director of the Division | 3 | | of Banking of the Department of Financial and Professional | 4 | | Regulation. | 5 | | "Eligible depository institution" means an insured savings | 6 | | association
that is in default, an insured savings association | 7 | | that is in danger of
default, a State or national bank that is | 8 | | in default or a State or
national bank that is in danger of | 9 | | default, as those terms are defined in this
Section, or a new | 10 | | bank as that term defined in Section 11(m) of the Federal
| 11 | | Deposit Insurance Act or a bridge bank as that term is defined | 12 | | in Section 11(n)
of the Federal Deposit Insurance Act or a new | 13 | | federal savings association
authorized under Section | 14 | | 11(d)(2)(f) of the Federal Deposit Insurance Act.
| 15 | | "Fiduciary" means trustee, agent, executor, administrator, | 16 | | committee,
guardian for a minor or for a person under legal | 17 | | disability, receiver,
trustee in bankruptcy, assignee for | 18 | | creditors, or any holder of similar
position of trust.
| 19 | | "Financial institution" means a bank, savings bank, | 20 | | savings and loan association,
credit union, or any licensee | 21 | | under the Consumer Installment Loan Act or
the Sales Finance | 22 | | Agency Act and, for purposes of Section 48.3, any
proprietary | 23 | | network, funds transfer corporation, or other entity providing
| 24 | | electronic funds transfer services, or any corporate | 25 | | fiduciary, its
subsidiaries, affiliates, parent company, or | 26 | | contractual service provider
that is examined by the |
| | | 10200SB0217ham001 | - 75 - | LRB102 02726 HLH 30235 a |
|
| 1 | | Commissioner. For purposes of Section 5c and subsection (b) of | 2 | | Section 13 of this Act, "financial institution" includes any | 3 | | proprietary network, funds transfer corporation, or other | 4 | | entity providing electronic funds transfer services, and any | 5 | | corporate fiduciary.
| 6 | | "Foundation" means the Illinois Bank Examiners' Education | 7 | | Foundation.
| 8 | | "General obligation" means a bond, note, debenture, | 9 | | security, or other
instrument evidencing an obligation of the | 10 | | government entity that is the
issuer that is supported by the
| 11 | | full available resources of the issuer, the principal and | 12 | | interest of which
is payable in whole or in part by taxation.
| 13 | | "Guarantee" means an undertaking or promise to answer for | 14 | | payment of
another's debt or performance of another's duty, | 15 | | liability, or obligation
whether "payment guaranteed" or | 16 | | "collection guaranteed".
| 17 | | "In danger of default" means a State or national bank, a | 18 | | federally chartered
insured savings association or an Illinois | 19 | | state chartered insured savings
association with respect to | 20 | | which the Commissioner or the appropriate
federal banking | 21 | | agency has advised the Federal Deposit Insurance
Corporation | 22 | | that:
| 23 | | (1) in the opinion of the Commissioner or the | 24 | | appropriate federal
banking agency,
| 25 | | (A) the State or national bank or insured savings | 26 | | association is not
likely to be able to meet the |
| | | 10200SB0217ham001 | - 76 - | LRB102 02726 HLH 30235 a |
|
| 1 | | demands of the State or national bank's or
savings | 2 | | association's obligations in the normal course of | 3 | | business; and
| 4 | | (B) there is no reasonable prospect that the State | 5 | | or national bank or
insured savings association will | 6 | | be able to meet those demands or pay those
obligations | 7 | | without federal assistance; or
| 8 | | (2) in the opinion of the Commissioner or the | 9 | | appropriate federal
banking agency,
| 10 | | (A) the State or national bank or insured savings | 11 | | association has
incurred or is likely to incur losses | 12 | | that will deplete all or substantially
all of its | 13 | | capital; and
| 14 | | (B) there is no reasonable prospect that the | 15 | | capital of the State
or national bank or insured | 16 | | savings association will be replenished without
| 17 | | federal assistance.
| 18 | | "In default" means, with respect to a State or national | 19 | | bank or an insured
savings association, any adjudication or | 20 | | other official determination by any
court of competent | 21 | | jurisdiction, the Commissioner, the appropriate federal
| 22 | | banking agency, or other public authority pursuant to which a | 23 | | conservator, receiver,
or other legal custodian is appointed | 24 | | for a State or national bank or an
insured savings | 25 | | association.
| 26 | | "Insured savings association" means any federal savings |
| | | 10200SB0217ham001 | - 77 - | LRB102 02726 HLH 30235 a |
|
| 1 | | association chartered
under Section 5 of the federal Home | 2 | | Owners' Loan Act and any State savings
association chartered | 3 | | under the Illinois Savings and Loan Act of 1985 or a
| 4 | | predecessor Illinois statute, the deposits of which are | 5 | | insured by the Federal
Deposit Insurance Corporation. The term | 6 | | also includes a savings bank organized
or operating under the | 7 | | Savings Bank Act.
| 8 | | "Insured savings association in recovery" means an insured | 9 | | savings
association that is not an eligible depository | 10 | | institution and that does
not meet the minimum capital | 11 | | requirements applicable with respect to the
insured savings | 12 | | association.
| 13 | | "Issuer" means for purposes of Section 33 every person who | 14 | | shall have
issued or proposed to issue any security; except | 15 | | that (1) with respect to
certificates of deposit, voting trust | 16 | | certificates, collateral-trust
certificates, and certificates | 17 | | of interest or shares in an unincorporated
investment trust | 18 | | not having a board of directors (or persons performing
similar | 19 | | functions), "issuer" means the person or persons performing | 20 | | the
acts and assuming the duties of depositor or manager | 21 | | pursuant to the
provisions of the trust, agreement, or | 22 | | instrument under which the
securities are issued; (2) with | 23 | | respect to trusts other than those
specified in clause (1) | 24 | | above, where the trustee is a corporation
authorized to accept | 25 | | and execute trusts, "issuer" means the entrusters,
depositors, | 26 | | or creators of the trust and any manager or committee charged
|
| | | 10200SB0217ham001 | - 78 - | LRB102 02726 HLH 30235 a |
|
| 1 | | with the general direction of the affairs of the trust | 2 | | pursuant to the
provisions of the agreement or instrument | 3 | | creating the trust; and (3) with
respect to equipment trust | 4 | | certificates or like securities, "issuer" means
the person to | 5 | | whom the equipment or property is or is to be leased or
| 6 | | conditionally sold.
| 7 | | "Letter of credit" and "customer" shall have the meanings | 8 | | ascribed to
those terms in Section 5-102 of the Uniform | 9 | | Commercial Code.
| 10 | | "Main banking premises" means the location that is | 11 | | designated in a
bank's charter as its main office.
| 12 | | "Maker or obligor" means for purposes of Section 33 the | 13 | | issuer of a
security, the promisor in a debenture or other debt | 14 | | security, or the
mortgagor or grantor of a trust deed or | 15 | | similar conveyance of a security
interest in real or personal | 16 | | property.
| 17 | | "Merged bank" means a merging bank that is not the | 18 | | continuing, resulting,
or surviving bank in a consolidation or | 19 | | merger.
| 20 | | "Merger" includes consolidation.
| 21 | | "Merging bank" means a party to a bank merger.
| 22 | | "Merging trust company" means a trust company party to a | 23 | | merger with
a State bank.
| 24 | | "Mid-tier bank holding company" means a corporation that | 25 | | (a) owns 100% of
the issued and outstanding shares of each | 26 | | class of stock of a State bank, (b)
has no other subsidiaries, |
| | | 10200SB0217ham001 | - 79 - | LRB102 02726 HLH 30235 a |
|
| 1 | | and (c) 100% of the issued and outstanding shares of
the | 2 | | corporation are owned by a parent bank holding company.
| 3 | | "Municipality" means any municipality, political | 4 | | subdivision, school
district, taxing district, or agency.
| 5 | | "National bank" means a national banking association | 6 | | located in this
State and after May 31, 1997, means a national | 7 | | banking association without
regard to its location.
| 8 | | "Out-of-state bank" means a bank chartered under the laws | 9 | | of a state other
than Illinois, a territory of the United | 10 | | States, or the District of Columbia.
| 11 | | "Parent bank holding company" means a corporation that is | 12 | | a bank holding
company as that term is defined in the Illinois | 13 | | Bank Holding Company Act of
1957 and owns 100% of the issued | 14 | | and outstanding shares of a mid-tier bank
holding company.
| 15 | | "Person" means an individual, corporation, limited | 16 | | liability company,
partnership, joint
venture, trust, estate, | 17 | | or unincorporated association.
| 18 | | "Public agency" means the State of Illinois, the various | 19 | | counties,
townships,
cities, towns, villages, school | 20 | | districts, educational service regions, special
road | 21 | | districts, public water supply districts, fire protection | 22 | | districts,
drainage districts, levee districts, sewer | 23 | | districts, housing authorities, the
Illinois Bank Examiners' | 24 | | Education Foundation, the Chicago Park District, and
all other | 25 | | political corporations or subdivisions of the State of | 26 | | Illinois,
whether now or hereafter created, whether herein |
| | | 10200SB0217ham001 | - 80 - | LRB102 02726 HLH 30235 a |
|
| 1 | | specifically mentioned or
not, and shall also include any | 2 | | other
state or any political corporation or subdivision of | 3 | | another state.
| 4 | | "Public funds" or "public money" means
current operating | 5 | | funds, special funds, interest and sinking funds, and funds
of | 6 | | any kind or character belonging to, in the custody of, or | 7 | | subject to the
control or regulation of the United States or a | 8 | | public agency. "Public funds"
or "public money" shall include | 9 | | funds held by any of the officers, agents, or
employees of the | 10 | | United States or of a public agency in the course of their
| 11 | | official duties and, with respect to public money of the | 12 | | United States, shall
include Postal Savings funds.
| 13 | | "Published" means, unless the context requires otherwise, | 14 | | the publishing
of the notice or instrument referred to in some | 15 | | newspaper of general
circulation in the community in which the | 16 | | bank is located at least once
each week for 3 successive weeks. | 17 | | Publishing shall be accomplished by, and
at the expense of, | 18 | | the bank required to publish. Where publishing is
required, | 19 | | the bank shall submit to the Commissioner that evidence of the
| 20 | | publication as the Commissioner shall deem appropriate.
| 21 | | "Qualified financial contract" means any security | 22 | | contract,
commodity contract, forward contract, including spot | 23 | | and
forward foreign exchange contracts, repurchase agreement, | 24 | | swap agreement, and
any
similar agreement, any option to enter | 25 | | into any such agreement, including any
combination of the | 26 | | foregoing, and any master agreement for such agreements.
A |
| | | 10200SB0217ham001 | - 81 - | LRB102 02726 HLH 30235 a |
|
| 1 | | master agreement, together with all supplements thereto, shall | 2 | | be treated
as one qualified financial contract. The contract, | 3 | | option, agreement, or
combination of contracts, options, or | 4 | | agreements shall be reflected upon the
books, accounts, or | 5 | | records of the bank, or a party to the contract shall
provide | 6 | | documentary evidence of such agreement.
| 7 | | "Recorded" means the filing or recording of the notice or | 8 | | instrument
referred to in the office of the Recorder of the | 9 | | county wherein
the bank is located.
| 10 | | "Resulting bank" means the bank resulting from a merger or | 11 | | conversion.
| 12 | | "Secretary" means the Secretary of Financial and | 13 | | Professional Regulation, or a person authorized by the | 14 | | Secretary or by this Act to act in the Secretary's stead. | 15 | | "Securities" means stocks, bonds, debentures, notes, or | 16 | | other similar
obligations.
| 17 | | "Special purpose trust company" means a special purpose | 18 | | trust company under Article IIA of the Corporate Fiduciary | 19 | | Act. | 20 | | "Stand-by letter of credit" means a letter of credit under | 21 | | which drafts
are payable upon the condition the customer has | 22 | | defaulted in performance of
a duty, liability, or obligation.
| 23 | | "State bank" means any banking corporation that has a | 24 | | banking charter
issued by the Commissioner under
this Act.
| 25 | | "State Banking Board" means the State Banking Board of | 26 | | Illinois.
|
| | | 10200SB0217ham001 | - 82 - | LRB102 02726 HLH 30235 a |
|
| 1 | | "Subsidiary" with respect to a specified company means a | 2 | | company that is
controlled by the specified company. For | 3 | | purposes of paragraphs (8) and (12)
of Section 5 of this Act, | 4 | | "control" means the exercise of operational or
managerial | 5 | | control of a corporation by the bank, either alone or together | 6 | | with
other affiliates of the bank.
| 7 | | "Surplus" means the aggregate of (i) amounts paid in | 8 | | excess of the par
value of capital stock and preferred stock; | 9 | | (ii) amounts contributed other
than for capital stock and | 10 | | preferred stock and allocated to the surplus
account; and | 11 | | (iii) amounts transferred from undivided profits.
| 12 | | "Tier 1 Capital" and "Tier 2 Capital" have the meanings | 13 | | assigned to those
terms in regulations promulgated for the | 14 | | appropriate federal banking agency of
a state bank, as those | 15 | | regulations are now or hereafter amended.
| 16 | | "Trust company" means a limited liability company or | 17 | | corporation
incorporated in this State for the
purpose of | 18 | | accepting and executing trusts.
| 19 | | "Undivided profits" means undistributed earnings less | 20 | | discretionary
transfers to surplus.
| 21 | | "Unimpaired capital and unimpaired surplus", for the | 22 | | purposes of paragraph
(21) of Section 5 and Sections 32, 33, | 23 | | 34, 35.1, 35.2, and 47 of this Act means
the sum of the state | 24 | | bank's Tier 1 Capital and Tier 2 Capital plus such other
| 25 | | shareholder equity as may be included by
regulation of the | 26 | | Commissioner. Unimpaired capital and unimpaired surplus
shall |
| | | 10200SB0217ham001 | - 83 - | LRB102 02726 HLH 30235 a |
|
| 1 | | be calculated on the basis of the date of the last quarterly | 2 | | call report
filed with the Commissioner preceding the date of | 3 | | the transaction for which the
calculation is made, provided | 4 | | that: (i) when a material event occurs after the
date of the | 5 | | last quarterly call report filed with the Commissioner that | 6 | | reduces
or increases the bank's unimpaired capital and | 7 | | unimpaired surplus by 10% or
more, then the unimpaired capital | 8 | | and unimpaired surplus shall be calculated
from the date of | 9 | | the material
event for a transaction conducted after the date | 10 | | of the material event; and
(ii) if the Commissioner determines | 11 | | for safety and soundness reasons that a
state bank should | 12 | | calculate unimpaired capital and unimpaired surplus more
| 13 | | frequently than provided by this paragraph, the Commissioner | 14 | | may by written
notice direct the bank to calculate unimpaired | 15 | | capital and unimpaired surplus
at a more frequent interval. In | 16 | | the case of a state bank newly chartered under
Section 13 or a | 17 | | state bank resulting from a merger, consolidation, or
| 18 | | conversion under Sections 21 through 26 for which no preceding | 19 | | quarterly call
report has been filed with the Commissioner, | 20 | | unimpaired capital and unimpaired
surplus shall be calculated | 21 | | for the first calendar quarter on the basis of the
effective | 22 | | date of the charter, merger, consolidation, or conversion.
| 23 | | (Source: P.A. 95-924, eff. 8-26-08; 95-1047, eff. 4-6-09; | 24 | | 96-1000, eff. 7-2-10; 96-1163, eff. 1-1-11.)
| 25 | | (205 ILCS 5/30) (from Ch. 17, par. 337)
|
| | | 10200SB0217ham001 | - 84 - | LRB102 02726 HLH 30235 a |
|
| 1 | | Sec. 30. Conversion; merger with trust company or special | 2 | | purpose trust company . Upon approval by the Commissioner a | 3 | | trust company having power so to do
under the law under which | 4 | | it is organized may convert into a state bank or
may merge into | 5 | | a state bank as prescribed by this Act; except that the
action | 6 | | by a trust company shall be taken in the manner prescribed by | 7 | | and
shall be subject to limitations and requirements imposed | 8 | | by the law under
which it is organized which law shall also | 9 | | govern the rights of its
dissenting stockholders. The rights | 10 | | of dissenting stockholders of a state
bank shall be governed | 11 | | by Section 29 of this Act. The conversion or
merger procedure | 12 | | shall be:
| 13 | | (1) In the case of a merger, the board of directors of both | 14 | | the merging
trust company and the merging bank by a majority of | 15 | | the entire board in
each case shall approve a merger agreement | 16 | | which shall contain:
| 17 | | (a) The name and location of the merging bank and of | 18 | | the merging trust
company and a list of the stockholders | 19 | | of each as of the date of the merger
agreement;
| 20 | | (b) With respect to the resulting bank (i) its name | 21 | | and place of
business; (ii) the amount of capital, surplus | 22 | | and reserve for operating
expenses; (iii) the classes and | 23 | | the number of shares of stock and the par
value of each | 24 | | share; (iv) the charter which is to be the charter of the
| 25 | | resulting bank, together with the amendments to the | 26 | | continuing charter and
to the continuing by-laws; and (v) |
| | | 10200SB0217ham001 | - 85 - | LRB102 02726 HLH 30235 a |
|
| 1 | | a detailed financial statement showing
the assets and | 2 | | liabilities after the proposed merger;
| 3 | | (c) Provisions governing the manner of converting the | 4 | | shares of the
merging bank and of the merging trust | 5 | | company into shares of the resulting
bank;
| 6 | | (d) A statement that the merger agreement is subject | 7 | | to approval by the
Commissioner and by the stockholders of | 8 | | the merging bank and the merging
trust company, and that | 9 | | whether approved or disapproved, the parties
thereto will | 10 | | pay the Commissioner's expenses of examination;
| 11 | | (e) Provisions governing the manner of disposing of | 12 | | the shares of the
resulting bank not taken by the | 13 | | dissenting stockholders of the merging
trust company; and
| 14 | | (f) Such other provisions as the Commissioner may | 15 | | reasonably require to
enable him to discharge his duties | 16 | | with respect to the merger.
| 17 | | (2) After approval by the board of directors of the | 18 | | merging bank and of
the merging trust company, the merger | 19 | | agreement shall be submitted to the
Commissioner for approval | 20 | | together with the certified copies of the
authorizing | 21 | | resolution of each board of directors showing approval by a
| 22 | | majority of each board.
| 23 | | (3) After receipt by the Commissioner of the papers | 24 | | specified in
subsection (2), he shall approve or disapprove | 25 | | the merger agreement. The
Commissioner shall not approve the | 26 | | agreement unless he shall be of the
opinion and finds:
|
| | | 10200SB0217ham001 | - 86 - | LRB102 02726 HLH 30235 a |
|
| 1 | | (a) That the resulting bank meets the requirements of | 2 | | this Act for the
formation of a new bank at the proposed | 3 | | place of business of the resulting
bank;
| 4 | | (b) That the same matters exist in respect of the | 5 | | resulting bank which
would have been required under | 6 | | Section 10 of this Act for the organization
of a new bank; | 7 | | and
| 8 | | (c) That the merger agreement is fair to all persons | 9 | | affected. If the
Commissioner disapproves the merger | 10 | | agreement, he shall state his
objections in writing and | 11 | | give an opportunity to the merging bank and the
merging | 12 | | trust company to obviate such objections.
| 13 | | (4) To be effective, if approved by the Commissioner, a | 14 | | merger of a bank
and a trust company where there is to be a | 15 | | resulting bank must be approved
by the affirmative vote of the | 16 | | holders of at least two-thirds of the
outstanding shares of | 17 | | stock of the merging bank entitled to vote at a
meeting called | 18 | | to consider such action, unless holders of preferred stock
are | 19 | | entitled to vote as a class in respect thereof, in which event | 20 | | the
proposed merger shall be adopted upon receiving the | 21 | | affirmative vote of the
holders of at least two-thirds of the | 22 | | outstanding shares of each class of
shares entitled to vote as | 23 | | a class in respect thereof and of the total
outstanding shares | 24 | | entitled to vote at such meeting and must be approved by
the | 25 | | stockholders of the merging trust company as provided by the | 26 | | Act under
which it is organized. The prescribed vote by the |
| | | 10200SB0217ham001 | - 87 - | LRB102 02726 HLH 30235 a |
|
| 1 | | merging bank and the
merging trust company shall constitute | 2 | | the adoption of the charter and
by-laws of the continuing | 3 | | bank, including the amendments in the merger
agreement, as the | 4 | | charter and by-laws of the resulting bank. Written or
printed | 5 | | notice of the meeting of the stockholders of the merging bank | 6 | | shall be given to each stockholder of record entitled to
vote | 7 | | at such meeting at least thirty days before such meeting and in | 8 | | the
manner provided in this Act for the giving of notice of | 9 | | meetings of
stockholders. The notice shall state that | 10 | | dissenting stockholders of the merging
trust company will be | 11 | | entitled to payment of the value of those shares
which are | 12 | | voted against approval of the merger, if a proper demand is | 13 | | made
on the resulting bank and the requirements of the Act | 14 | | under which the
merging trust company is organized are | 15 | | satisfied.
| 16 | | (5) Unless a later date is specified in the merger | 17 | | agreement, the merger
shall become effective upon the filing | 18 | | with the Commissioner of the
executed merger agreement, | 19 | | together with copies of the resolutions of the
stockholders of | 20 | | the merging bank and the merging trust company approving
it, | 21 | | certified by the president or a vice-president or, the cashier | 22 | | and also
by the secretary or other officer charged with | 23 | | keeping the records. The
charter of the merging trust company | 24 | | shall thereupon automatically
terminate. The Commissioner | 25 | | shall thereupon issue to the continuing bank a
certificate of | 26 | | merger which shall specify the name of the merging trust
|
| | | 10200SB0217ham001 | - 88 - | LRB102 02726 HLH 30235 a |
|
| 1 | | company, the name of the continuing bank and the amendments to | 2 | | the charter
of the continuing bank provided for by the merger | 3 | | agreement. Such
certificate shall be conclusive evidence of | 4 | | the merger and of the
correctness of all proceedings therefor | 5 | | in all courts and places including
the office of the Secretary | 6 | | of State, and said certificate shall be
recorded.
| 7 | | (6) In the case of a conversion, a trust company shall | 8 | | apply for a
charter by filing with the Commissioner:
| 9 | | (a) A certificate signed by its president, or a | 10 | | vice-president, and by a
majority of the entire board of | 11 | | directors setting forth the corporate
action taken in | 12 | | compliance with the provisions of the Act under which it | 13 | | is
organized governing the conversion of a trust company | 14 | | to a bank or
governing the merger of a trust company into | 15 | | another corporation;
| 16 | | (b) The plan of conversion and the proposed charter | 17 | | approved by the
stockholders for the operation of the | 18 | | trust company as a bank. The plan of
conversion shall | 19 | | contain (i) the name and location proposed for the
| 20 | | converting trust company; (ii) a list of its stockholders | 21 | | as of the date of
the stockholders' approval of the plan of | 22 | | conversion; (iii) the amount of
its capital, surplus and | 23 | | reserve for operating expenses; (iv) the classes
and the | 24 | | number of shares of stock and the par value of each share; | 25 | | (v) the
charter which is to be the charter of the resulting | 26 | | bank; and (vi) a
detailed financial statement showing the |
| | | 10200SB0217ham001 | - 89 - | LRB102 02726 HLH 30235 a |
|
| 1 | | assets and liabilities of the
converting trust company;
| 2 | | (c) A statement that the plan of conversion is subject | 3 | | to approval by
the Commissioner and that, whether approved | 4 | | or disapproved, the converting
trust company will pay the | 5 | | Commissioner's expenses of examination; and
| 6 | | (d) Such other instruments as the Commissioner may | 7 | | reasonably require to
enable him to discharge his duties | 8 | | with respect to the conversion.
| 9 | | (7) After receipt by the Commissioner of the papers | 10 | | specified in
subsection (6), he shall approve or disapprove | 11 | | the plan of conversion. The
Commissioner shall not approve the | 12 | | plan of conversion unless he shall be of
the opinion and finds:
| 13 | | (a) That the resulting bank meets the requirements of | 14 | | this Act for the
formation of a new bank at the proposed | 15 | | place of business of the resulting
bank;
| 16 | | (b) That the same matters exist in respect of the | 17 | | resulting bank which
would have been required under | 18 | | Section 10 of this Act for the
organization of a new bank; | 19 | | and
| 20 | | (c) That the plan of conversion is fair to all persons | 21 | | affected.
| 22 | | If the commissioner disapproves the plan of conversion, he | 23 | | shall state
his objections in writing and give an opportunity | 24 | | to the converting trust
company to obviate such objections.
| 25 | | (8) Unless a later date is specified in the plan of | 26 | | conversion, the
conversion shall become effective upon the |
| | | 10200SB0217ham001 | - 90 - | LRB102 02726 HLH 30235 a |
|
| 1 | | Commissioner's approval, and the
charter proposed in the plan | 2 | | of conversion shall constitute the charter of
the resulting | 3 | | bank. The Commissioner shall issue a certificate of
conversion | 4 | | which shall specify the name of the converting trust company,
| 5 | | the name of the resulting bank and the charter provided for by | 6 | | said plan of
conversion. Such certificate shall be conclusive | 7 | | evidence of the conversion
and of the correctness of all | 8 | | proceedings therefor in all courts and places
including the | 9 | | office of the Secretary of State, and such certificate shall
| 10 | | be recorded.
| 11 | | (8.5) A special purpose trust company under Article IIA of | 12 | | the Corporate Fiduciary Act may merge with a State bank or | 13 | | convert to a State bank as if the special purpose trust company | 14 | | were a trust company under Article II of the Corporate | 15 | | Fiduciary Act, subject to rules adopted by the Department. | 16 | | (9) In the case of either a merger or a conversion under | 17 | | this Section
30, the resulting bank shall be considered the | 18 | | same business and corporate
entity as each merging bank and | 19 | | merging trust company or as the converting
trust company with | 20 | | all the property, rights, powers, duties and obligations
of | 21 | | each as specified in Section 28 of this Act.
| 22 | | (Source: P.A. 91-357, eff. 7-29-99.)
| 23 | | Section 20. The Corporate Fiduciary Act is amended by | 24 | | adding Article IIA as follows: |
| | | 10200SB0217ham001 | - 91 - | LRB102 02726 HLH 30235 a |
|
| 1 | | (205 ILCS 620/Art. IIA heading new) | 2 | | ARTICLE IIA. SPECIAL PURPOSE TRUST COMPANY | 3 | | AUTHORITY AND ORGANIZATION | 4 | | (205 ILCS 620/2A-1 new) | 5 | | Sec. 2A-1. Special purpose trust company. Any corporation | 6 | | that has been or shall be incorporated under the general | 7 | | corporation laws of this State for the special purpose of | 8 | | providing fiduciary custodial services or providing other like | 9 | | or related services as specified by rule, consistent with this | 10 | | Article, may be appointed to act as a fiduciary with respect to | 11 | | such services and shall be designated a special purpose trust | 12 | | company. | 13 | | (205 ILCS 620/2A-2 new) | 14 | | Sec. 2A-2. Certificate of authority. | 15 | | (a) It shall not be lawful for any person to engage in the | 16 | | activity of a special purpose trust company after the | 17 | | effective date of this amendatory Act of the 102nd General | 18 | | Assembly without first filing an application for and procuring | 19 | | from the Secretary a certificate of authority stating that the | 20 | | person has complied with the requirements of this Act and is | 21 | | qualified to engage in the activity of a special purpose trust | 22 | | company. | 23 | | (b) No natural person or natural persons, firm, or | 24 | | partnership, or corporation not having been authorized under |
| | | 10200SB0217ham001 | - 92 - | LRB102 02726 HLH 30235 a |
|
| 1 | | this Act shall transact in the activity of a special purpose | 2 | | trust company. A person who violates this Section is guilty of | 3 | | a Class A misdemeanor and the Attorney General or State's | 4 | | Attorney of the county in which the violation occurs may | 5 | | restrain the violation by a complaint for injunctive relief. | 6 | | (c) Any entity that holds a certificate of authority under | 7 | | Article II of this Act may engage in the activity of a special | 8 | | purpose trust company without applying for or receiving a | 9 | | certificate of authority under this Article IIA. | 10 | | (205 ILCS 620/2A-3 new) | 11 | | Sec. 2A-3. Rulemaking and organization. | 12 | | (a) The Department shall adopt rules for the | 13 | | administration of this Article, including, but not limited to: | 14 | | rules for defining statutory terms; applying for a certificate | 15 | | of authority; review, investigation, and approval of | 16 | | application for certificate of authority; capital | 17 | | requirements; merger, change of control, conversion, and | 18 | | successor trustee; office location and name; collateralizing | 19 | | fiduciary assets; and general corporate powers. | 20 | | (b) Articles V, VI, VII, VIII, and IX of this Act shall | 21 | | apply to a special purpose trust company under this Article as | 22 | | if the special purpose trust company were a trust company | 23 | | authorized under Article II of this Act, subject to any rules | 24 | | adopted by the Department. |
| | | 10200SB0217ham001 | - 93 - | LRB102 02726 HLH 30235 a |
|
| 1 | | Section 25. The Blockchain Business Development Act is | 2 | | amended by adding Section 11 as follows: | 3 | | (205 ILCS 725/11 new) | 4 | | Sec. 11. Digital asset custody rules. | 5 | | (a) As used in this Section, "digital asset" means a | 6 | | representation of economic, proprietary, or access rights that | 7 | | is stored in a computer readable format. | 8 | | (b) The Department of Financial and Professional | 9 | | Regulation, in addition to the authority provided under any | 10 | | other law, shall have authority to adopt rules, opinions, or | 11 | | interpretive letters regarding the provision of custodial | 12 | | services for digital assets by banks chartered under the | 13 | | Illinois Banking Act, savings banks chartered under the | 14 | | Savings Bank Act, credit unions chartered under the Illinois | 15 | | Credit Union Act, and corporate fiduciaries authorized under | 16 | | Article II or IIA of the Corporate Fiduciary Act. | 17 | | Section 95. No acceleration or delay. Where this Act makes | 18 | | changes in a statute that is represented in this Act by text | 19 | | that is not yet or no longer in effect (for example, a Section | 20 | | represented by multiple versions), the use of that text does | 21 | | not accelerate or delay the taking effect of (i) the changes | 22 | | made by this Act or (ii) provisions derived from any other | 23 | | Public Act. |
| | | 10200SB0217ham001 | - 94 - | LRB102 02726 HLH 30235 a |
|
| 1 | | Section 99. Effective date. This Act takes effect upon | 2 | | becoming law.".
|
|