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1 | AN ACT concerning local government.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 1. Short title. This Act may be cited as the | ||||||||||||||||||||||||
5 | Tourism Marketing and Recovery District Law. | ||||||||||||||||||||||||
6 | Section 5. Definitions.
As used in this Law: | ||||||||||||||||||||||||
7 | "Baseline" means to the existing level of services, or | ||||||||||||||||||||||||
8 | funding for services, provided by the governmental unit prior | ||||||||||||||||||||||||
9 | to creation of a district. | ||||||||||||||||||||||||
10 | "Benefit zone" means a zone within a district established | ||||||||||||||||||||||||
11 | by the governing body based upon the degree of benefit derived | ||||||||||||||||||||||||
12 | from the services to be provided within the zone and in which a | ||||||||||||||||||||||||
13 | governing body may impose different transaction charges from | ||||||||||||||||||||||||
14 | other zones relative to the degree of benefit intended to be | ||||||||||||||||||||||||
15 | provided. | ||||||||||||||||||||||||
16 | "Business owner" means any person recognized by the | ||||||||||||||||||||||||
17 | governmental unit as the owner of a tourism business subject | ||||||||||||||||||||||||
18 | to a transaction charge and may include an owner's authorized | ||||||||||||||||||||||||
19 | representative. | ||||||||||||||||||||||||
20 | "Clerk" means the clerk or similar administrative | ||||||||||||||||||||||||
21 | personnel of the governing body. | ||||||||||||||||||||||||
22 | "District" means a tourism marketing and recovery district | ||||||||||||||||||||||||
23 | created pursuant to this Law. |
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1 | "Governing body" means the legislative body of the | ||||||
2 | governmental unit. | ||||||
3 | "Governmental unit" means any municipality, county, or | ||||||
4 | township, or any combination thereof. | ||||||
5 | "Improvement" means the acquisition, construction, | ||||||
6 | installation, or maintenance of any tangible property with an | ||||||
7 | estimated useful life of 5 years or more that is reasonably | ||||||
8 | related to the enhancement of tourism. | ||||||
9 | "Services" means marketing, promotions, sales efforts, | ||||||
10 | events, and other activities that are reasonably related to | ||||||
11 | the enhancement of tourism. | ||||||
12 | "Tourism and convention bureau" means a local tourism and | ||||||
13 | convention bureau that is: (i) either a unit of local | ||||||
14 | government or incorporated as a nonprofit organization; (ii) | ||||||
15 | operating with a paid, full-time staff whose sole purpose is | ||||||
16 | to promote tourism in the designated service area; and (iii) | ||||||
17 | recognized by the Department of Commerce and Economic | ||||||
18 | Opportunity as a certified local tourism and convention bureau | ||||||
19 | entitled to receive State tourism grant funds. | ||||||
20 | "Tourism business" means all business establishments which | ||||||
21 | provide tourism or tourist-related goods or services. | ||||||
22 | "Transaction charge" means a special charge imposed upon | ||||||
23 | customer transactions entered into by tourism businesses in | ||||||
24 | the district and may be based on revenue, sales, or any other | ||||||
25 | business-related factor deemed appropriate by the governing | ||||||
26 | body, including, but not limited to, a fixed rate per occupied |
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1 | hotel room per night.
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2 | Section 10. Ordinance of intent to create a district. | ||||||
3 | (a) A governing body may initiate proceedings to create a | ||||||
4 | district by adopting an ordinance expressing its intention to | ||||||
5 | create the district. The ordinance shall include: | ||||||
6 | (1) The name of the district. | ||||||
7 | (2) The boundaries of the district, which need not be | ||||||
8 | contiguous. | ||||||
9 | (3) The type or types of tourism businesses that will | ||||||
10 | pay a transaction charge. | ||||||
11 | (4) The initial and maximum transaction charge rates | ||||||
12 | to be paid by each category of tourism business in | ||||||
13 | sufficient detail for each business owner to estimate the | ||||||
14 | amount of transaction charges each tourism business would | ||||||
15 | pay. | ||||||
16 | (5) If a specific term is proposed, the proposed term | ||||||
17 | of the district. | ||||||
18 | (6) A brief description of the services and | ||||||
19 | improvements proposed to be provided. | ||||||
20 | (7) The time and place of a public hearing on the | ||||||
21 | proposed district. | ||||||
22 | (8) A statement that any tourism business proposed to | ||||||
23 | be subject to a transaction charge has the opportunity to | ||||||
24 | be heard at the hearing regarding the district formation | ||||||
25 | and an opportunity to file objections to the district |
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1 | formation with the clerk at any time prior to the | ||||||
2 | conclusion of the public hearing. | ||||||
3 | (b) A governmental unit may include territory or tourism | ||||||
4 | businesses within the jurisdiction of another governmental | ||||||
5 | unit to the extent that the governing body of the other | ||||||
6 | governmental unit consents. | ||||||
7 | Section 15. District plan. | ||||||
8 | (a) A district plan shall be prepared before the public | ||||||
9 | hearing on the proposed district and include the following: | ||||||
10 | (1) The estimated annual budget. The budget may | ||||||
11 | include specific allocations to expedite the recovery of | ||||||
12 | the tourism industry. | ||||||
13 | (2) The initial and maximum transaction charge rates | ||||||
14 | to be paid by each category of tourism business in | ||||||
15 | sufficient detail for each business owner to estimate the | ||||||
16 | amount of transaction charges each tourism business would | ||||||
17 | pay. | ||||||
18 | (3) A statement that, after the first imposition of a | ||||||
19 | transaction charge within the district, the transaction | ||||||
20 | charge may continue to be imposed in subsequent years | ||||||
21 | without the requirement of an additional public hearing if | ||||||
22 | the transaction charge rate does not exceed the rate | ||||||
23 | specified in the district plan. | ||||||
24 | (4) The frequency and manner of collecting the | ||||||
25 | transaction charges. |
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1 | (5) The manner of contesting the calculation of any | ||||||
2 | specific transaction charge by a specific tourism | ||||||
3 | business. | ||||||
4 | (6) The amount or rate of penalties and interest | ||||||
5 | applicable to delinquent payments, if any, and the method | ||||||
6 | of collection of penalties and interest. | ||||||
7 | (7) The nature of the proposed services and | ||||||
8 | improvements to be provided. | ||||||
9 | (8) The existing baseline and the baseline the | ||||||
10 | governmental unit will continue to provide. | ||||||
11 | (9) A map of the district boundaries, which need not | ||||||
12 | be contiguous nor include every tourism business. | ||||||
13 | (10) The specific categories of tourism businesses | ||||||
14 | that will pay a transaction charge.
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15 | (11) A map showing the district boundaries and benefit | ||||||
16 | zones, if any. | ||||||
17 | (12) A list of the tourism businesses to be subject to | ||||||
18 | a transaction charge, including the address of each | ||||||
19 | business. | ||||||
20 | (13) A statement that a tourism business may pass a | ||||||
21 | transaction charge onto customers, and the specific title | ||||||
22 | to be used when the transaction charge is disclosed to the | ||||||
23 | customer. | ||||||
24 | (14) The name and general structure of the tourism and | ||||||
25 | convention bureau. | ||||||
26 | (b) For purposes of transaction charges in a district |
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1 | plan, the governing body may define categories of businesses | ||||||
2 | based upon the degree of benefit each will derive from the | ||||||
3 | services and improvements and may impose a different | ||||||
4 | transaction charge on each category relative to the degree of | ||||||
5 | benefit provided as the governing body may determine. | ||||||
6 | (c) The district plan may also include a statement | ||||||
7 | authorizing the issuance of bonds or other debt instruments in | ||||||
8 | accordance with the provisions of general laws in the amounts | ||||||
9 | and for the periods necessary to finance needed improvements | ||||||
10 | within the proposed tourism and recovery district. | ||||||
11 | Section 20. Public hearing.
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12 | (a) The governing body shall hold a public hearing on the | ||||||
13 | proposed district. Notice of the public hearing shall be given | ||||||
14 | by the United States mails addressed to the owner of each | ||||||
15 | tourism business proposed to pay a transaction charge, as | ||||||
16 | shown on the governmental unit's most recent records, and | ||||||
17 | shall include the ordinance regarding the governmental unit's | ||||||
18 | intent to establish the district. Such notice shall be mailed | ||||||
19 | not less than 30 days prior to the public hearing. | ||||||
20 | (b) At the hearing, the governing body shall consider | ||||||
21 | public testimony regarding the proposed district. Any tourism | ||||||
22 | business proposed to be subject to a transaction charge may | ||||||
23 | submit a written objection to the clerk at any time prior to | ||||||
24 | the conclusion of the public hearing. If written objections | ||||||
25 | are received from tourism businesses that would pay more than |
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1 | 50% of the proposed transaction charges in the proposed | ||||||
2 | district, no further proceedings to form the district may be | ||||||
3 | undertaken by the governmental unit for a period of one year. | ||||||
4 | The hearing may be adjourned to another date without further | ||||||
5 | notice other than a motion to be entered upon the minutes | ||||||
6 | fixing the time and place it will reconvene. | ||||||
7 | (c) At the public hearing, the governing body may remove | ||||||
8 | territory or tourism businesses from the district, reduce a | ||||||
9 | transaction charge rate, or make administrative clarifications | ||||||
10 | to the district plan. | ||||||
11 | (d) If, at the conclusion of the public hearing, the clerk | ||||||
12 | determines that all of the written objections submitted do not | ||||||
13 | represent tourism businesses that would pay more than 50% of | ||||||
14 | the proposed transaction charges, the governing body may adopt | ||||||
15 | an ordinance forming the district.
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16 | Section 25. Formation ordinance.
If written protests | ||||||
17 | submitted do not represent tourism businesses that would pay | ||||||
18 | more than 50% of the proposed transaction charges, the | ||||||
19 | governing body may adopt an ordinance forming the district. | ||||||
20 | The ordinance shall contain: | ||||||
21 | (1) A statement regarding the date of adoption of the | ||||||
22 | ordinance regarding the governmental unit's intent to | ||||||
23 | establish the district. | ||||||
24 | (2) A reference to the district plan, which shall be | ||||||
25 | on file and available for inspection with the clerk. |
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1 | (3) A determination as to the total amount of any | ||||||
2 | written protests received from tourism businesses to be | ||||||
3 | subject to a transaction charge. | ||||||
4 | (4) The name of the district. | ||||||
5 | (5) The effective date of the transaction charge. | ||||||
6 | (6) If a specific term is intended, the term of the | ||||||
7 | district. | ||||||
8 | (7) The transaction charge rate to be paid by each | ||||||
9 | type of tourism business in sufficient detail for each | ||||||
10 | business owner to estimate the amount of transaction | ||||||
11 | charge their business would pay. | ||||||
12 | (8) If a specific term is proposed, the proposed term | ||||||
13 | of the district. | ||||||
14 | (9) The name of the tourism and convention bureau. | ||||||
15 | (10) Confirmation that no further appropriation action | ||||||
16 | by the governmental unit will be necessary for the ongoing | ||||||
17 | collection from tourism businesses of transaction charges | ||||||
18 | and the remitting of such transaction charges for the | ||||||
19 | benefit of the tourism and convention bureau throughout | ||||||
20 | the term of the district. | ||||||
21 | (11) Authorization for the governmental unit to remit | ||||||
22 | the collected transaction charges to the tourism and | ||||||
23 | convention bureau in exchange for the tourism and | ||||||
24 | convention bureau providing services. | ||||||
25 | Section 30. Business owners; tourism and convention |
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1 | bureaus.
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2 | (a) A governmental unit may determine if an owner is a | ||||||
3 | business owner through use of the governmental unit's records, | ||||||
4 | by the business owner's authorized representative, or by any | ||||||
5 | other means. The governmental unit has no obligation to obtain | ||||||
6 | other information as to the ownership of a tourism business | ||||||
7 | and the governmental unit's determination of ownership shall | ||||||
8 | be final and conclusive for purposes of this Law. | ||||||
9 | (b) An tourism and convention bureau shall not be | ||||||
10 | considered a public agency or entity for any purpose. | ||||||
11 | Section 35. Annual report.
Each year, the tourism and | ||||||
12 | convention bureau shall submit a report of activities and | ||||||
13 | expenditures to the governing body. The report shall be | ||||||
14 | submitted no later than 30 days prior to the anniversary of the | ||||||
15 | transaction charge start date. The report shall include: | ||||||
16 | (1) A summary of the activities provided in the | ||||||
17 | current year to date. | ||||||
18 | (2) A summary of the expenditures for the current year | ||||||
19 | to date. | ||||||
20 | (3) The amount of any revenue to be carried over from | ||||||
21 | prior years. | ||||||
22 | (4) A list of the directors and officers of the | ||||||
23 | tourism and convention bureau. | ||||||
24 | (5) A list of the accomplishments attributable to the | ||||||
25 | district.
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1 | Section 40. Transaction charges; collection and | ||||||
2 | remittance.
Transaction charges paid by a tourism business | ||||||
3 | shall be collected by the governmental unit. On a prompt | ||||||
4 | basis, the collected transaction charges shall be remitted by | ||||||
5 | the governmental unit to the tourism and convention bureau in | ||||||
6 | accordance with the district plan and the formation ordinance. | ||||||
7 | During any period that the governmental unit may hold such | ||||||
8 | collected transaction charges, the governmental unit shall at | ||||||
9 | all times maintain the collected transaction charges in a | ||||||
10 | specially-designated fund segregated from other funds; except, | ||||||
11 | for the adoption of the formation ordinance, the governmental | ||||||
12 | unit may provide for the ongoing retention of an amount not to | ||||||
13 | exceed 2% of the total amount of transaction charges collected | ||||||
14 | to defray (in whole or in part) the governmental unit's | ||||||
15 | administrative costs related to the district. | ||||||
16 | Collected transaction charges held by the governmental | ||||||
17 | unit may not be commingled with other governmental unit funds.
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18 | Section 45. Modification.
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19 | (a) Upon the written request from the tourism and | ||||||
20 | convention bureau, the governmental unit may notice a public | ||||||
21 | hearing under Section 20 on modifications to a district for | ||||||
22 | any of the following modifications: | ||||||
23 | (1) In any year other than that initial year, a | ||||||
24 | transaction charge rate is proposed to exceed that |
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1 | described in the district plan. | ||||||
2 | (2) The boundaries of a district are changed. | ||||||
3 | (3) There is a change in designation of tourism | ||||||
4 | businesses subject to the transaction charge and any | ||||||
5 | tourism business pays a new or increased transaction | ||||||
6 | charge. | ||||||
7 | (b) Upon the written request from the tourism and | ||||||
8 | convention bureau, the
governmental unit may make any | ||||||
9 | modifications not described in subsection (a) after holding at | ||||||
10 | least one public hearing. | ||||||
11 | (c) Any modification shall be reflected in an updated | ||||||
12 | district plan to be on file and available for inspection with | ||||||
13 | the clerk.
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14 | Section 50. Renewal after expiration.
If a formation | ||||||
15 | ordinance under Section 25 defines a term for the district and | ||||||
16 | the district's term expires, the district may be renewed by | ||||||
17 | creating a new district plan pursuant to Section 15 and | ||||||
18 | following the procedures detailed in Sections 20, 25, and 30.
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19 | Upon expiration when a district is not renewed, any funds | ||||||
20 | remaining shall be used in accordance with the district plan | ||||||
21 | or refunded to the tourism businesses in equal proportion to | ||||||
22 | the amount of transaction charges paid by each tourism | ||||||
23 | business. | ||||||
24 | Section 55. Termination.
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1 | (a) The district shall be terminated by the governing body | ||||||
2 | if written objections are received from tourism businesses | ||||||
3 | that, in the most recently completed fiscal year, paid (or in | ||||||
4 | the case of a district that has not completed a fiscal year | ||||||
5 | following the initial imposition of the transaction charges, | ||||||
6 | would be expected to pay) more than 50% of the transaction | ||||||
7 | charges. Written objections must be signed by the business | ||||||
8 | owner and dated within 30 days after their submission to the | ||||||
9 | clerk. A public hearing shall be held on the written objection | ||||||
10 | within 30 days after the clerk's receipt of the written | ||||||
11 | objection. Written objections may be submitted once per year | ||||||
12 | in the 30 days following the anniversary of district | ||||||
13 | formation. | ||||||
14 | (b) The district may be terminated by the governing body | ||||||
15 | if the governing body finds that there has been a violation of | ||||||
16 | law, malfeasance, or misappropriation of funds. After holding | ||||||
17 | a noticed hearing, the governing body shall notify the tourism | ||||||
18 | and convention bureau to remedy the findings of the governing | ||||||
19 | body within 30 days. Such public hearing shall be held and | ||||||
20 | notice given to the tourism businesses and the tourism and | ||||||
21 | convention bureau not less than 30 days prior to the hearing. | ||||||
22 | If the tourism and convention bureau does not remedy the
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23 | violations within 30 days of notification, or the governing | ||||||
24 | body has not approved a plan to remedy the violation, at the | ||||||
25 | conclusion of a hearing conducted under this Section, the | ||||||
26 | governing body may vote to terminate the district. |
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1 | (c) Upon termination, any funds remaining shall be used in | ||||||
2 | accordance with the district plan or refunded to the tourism | ||||||
3 | businesses in equal proportion to the amount of transaction | ||||||
4 | charges paid by each tourism business.
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5 | Section 60. Contesting validity.
The validity of a | ||||||
6 | transaction charge imposed or a district created under this | ||||||
7 | Law may not be contested in any action or proceeding unless the | ||||||
8 | action or proceeding is commenced within 30 days after the | ||||||
9 | formation ordinance is adopted. Any appeal from a final | ||||||
10 | judgment in an action or proceeding shall be concluded within | ||||||
11 | 30 days after the entry of judgment.
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12 | Section 65. No limitation on home rule.
The powers granted | ||||||
13 | to governmental units in this Law shall not be construed as a | ||||||
14 | limitation on the powers of a home rule unit granted by Article | ||||||
15 | VII of the Illinois Constitution.
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