Bill Text: IL HB0446 | 2017-2018 | 100th General Assembly | Introduced

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Bill Title: Amends the Special Service Area Tax Law in the Property Tax Code. Defines "service provider agency" and "special service area commission". Provides that a list of the names and addresses of the individuals and entities receiving a mailed notice of the public hearing concerning the establishment of a special service area shall be published at the time notice is given and shall be available at the public hearing. Provides that no special service area may be created or enlarged; no special service area tax may be levied, imposed, or increased; and no bonds may be issued in connection with a special service area, unless an authorization petition is filed with the municipal clerk or county clerk. Provides that no member of a special service area commission may be an owner or board member of the service provider agency selected for that special service area. Provides that no business owned by a member of a special service area commission or an employee of the municipality may provide goods or services in connection with the special service area. Provides that at least one member of the special service area commission shall be an owner of homestead property located within the special service area. Provides that special service area commissions may not establish a loan or line of credit in connection with the special service area. Provides that special service area commissions shall submit an audit of the special service area to the corporate authorities of the municipality at least annually. Contains provisions concerning the expiration of special service areas. Preempts home rule powers. Effective immediately.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Failed) 2019-01-08 - Session Sine Die [HB0446 Detail]

Download: Illinois-2017-HB0446-Introduced.html

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100TH GENERAL ASSEMBLY State of Illinois 2017 and 2018 HB0446 Introduced , by Rep. Jeanne M Ives SYNOPSIS AS INTRODUCED:
See Index
Amends the Special Service Area Tax Law in the Property Tax Code. Defines "service provider agency" and "special service area commission". Provides that a list of the names and addresses of the individuals and entities receiving a mailed notice of the public hearing concerning the establishment of a special service area shall be published at the time notice is given and shall be available at the public hearing. Provides that no special service area may be created or enlarged; no special service area tax may be levied, imposed, or increased; and no bonds may be issued in connection with a special service area, unless an authorization petition is filed with the municipal clerk or county clerk. Provides that no member of a special service area commission may be an owner or board member of the service provider agency selected for that special service area. Provides that no business owned by a member of a special service area commission or an employee of the municipality may provide goods or services in connection with the special service area. Provides that at least one member of the special service area commission shall be an owner of homestead property located within the special service area. Provides that special service area commissions may not establish a loan or line of credit in connection with the special service area. Provides that special service area commissions shall submit an audit of the special service area to the corporate authorities of the municipality at least annually. Contains provisions concerning the expiration of special service areas. Preempts home rule powers. Effective immediately.
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FISCAL NOTE ACT MAY APPLY HOME RULE NOTE ACT MAY APPLY HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY
A BILL FOR
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AN ACT concerning revenue.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Property Tax Code is amended by changing
Sections 27-5, 27-25, 27-30, 27-55, 27-100, 27-105, 27-110,
27-115, 27-120, and 27-125 as follows:
(35 ILCS 200/27-5)
Sec. 27-5. Short title; definitions. This Article may be
cited as the Special Service Area Tax Law.
When used in this Article:
"Service Provider Agency" means a local non-profit entity
that enters into a contract with the municipality or county for
the purpose of managing a special service area.
"Special Service Area" means a contiguous area within a
municipality or county in which special governmental services
are provided in addition to those services provided generally
throughout the municipality or county, the cost of the special
services to be paid from revenues collected from taxes levied
or imposed upon property within that area. Territory shall be
considered contiguous for purposes of this Article even though
certain completely surrounded portions of the territory are
excluded from the special service area. A county may create a
special service area within a municipality or municipalities

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when the municipality or municipalities consent to the creation
of the special service area. A municipality may create a
special service area within a municipality and the
unincorporated area of a county or within another municipality
when the county or other municipality consents to the creation
of the special service area.
"Special Service Area Commission" means a local board
established by the corporate authorities of a municipality or
county for the purpose of overseeing a particular special
service area.
"Special Services" means all forms of services pertaining
to the government and affairs of the municipality or county,
including but not limited to weather modification and
improvements permissible under Article 9 of the Illinois
Municipal Code, and contracts for the supply of water as
described in Section 11-124-1 of the Illinois Municipal Code
which may be entered into by the municipality or by the county
on behalf of a county service area.
(Source: P.A. 86-1324; 88-445.)
(35 ILCS 200/27-25)
Sec. 27-25. Form of hearing notice. Taxes may be levied or
imposed by the municipality or county in the special service
area at a rate or amount of tax sufficient to produce revenues
required to provide the special services. Prior to the first
levy of taxes in the special service area, notice shall be

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given and a hearing shall be held under the provisions of
Sections 27-30 and 27-35. For purposes of this Section the
notice shall include:
(a) The time and place of hearing;
(b) The boundaries of the area by legal description
and, where possible, by street location;
(c) The permanent tax index number of each parcel
located within the area;
(d) The nature of the proposed special services to be
provided within the special service area and a statement as
to whether the proposed special services are for new
construction, maintenance, or other purposes;
(d-5) The proposed amount of the tax levy for special
services for the initial year for which taxes will be
levied within the special service area;
(e) A notification that all interested persons,
including all persons owning taxable real property located
within the special service area, will be given an
opportunity to be heard at the hearing regarding the tax
levy and an opportunity to file objections to the amount of
the tax levy if the tax is a tax upon property; and
(f) The maximum rate of taxes to be extended within the
special service area in any year and the maximum number of
years taxes will be levied if a maximum number of years is
to be established; and .
(g) If funds received through the special service area

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are going to be used by a person or entity other than the
municipality or county, then the notice must include a
statement to that effect.
After the first levy of taxes within the special service
area, taxes may continue to be levied in subsequent years
without the requirement of an additional public hearing if the
tax rate does not exceed the rate specified in the notice for
the original public hearing and the taxes are not extended for
a longer period than the number of years specified in the
notice if a number of years is specified. Tax rates may be
increased and the period specified may be extended, if notice
is given and new public hearings are held in accordance with
Sections 27-30 and 27-35.
(Source: P.A. 97-1053, eff. 1-1-13.)
(35 ILCS 200/27-30)
Sec. 27-30. Manner of notice. Prior to or within 60 days
after the adoption of the ordinance proposing the establishment
of a special service area the municipality or county shall fix
a time and a place for a public hearing. The public hearing
shall be held not less than 60 days after the adoption of the
ordinance proposing the establishment of a special service
area. Notice of the hearing shall be given by publication and
mailing, except that notice of a public hearing to propose the
establishment of a special service area for weather
modification purposes may be given by publication only. Notice

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by publication shall be given by publication at least once not
less than 15 days prior to the hearing in a newspaper of
general circulation within the municipality or county. Notice
by mailing shall be given by depositing the notice in the
United States mails addressed to the person or persons in whose
name the general taxes for the last preceding year were paid on
each property lying within the special service area. A notice
shall be mailed not less than 10 days prior to the time set for
the public hearing. In the event taxes for the last preceding
year were not paid, the notice shall be sent to the person last
listed on the tax rolls prior to that year as the owner of the
property. A list of the names and addresses of the individuals
and entities to whom the notice will be sent by mail shall be
published at the time notice is given and shall be available at
the public hearing.
(Source: P.A. 97-1053, eff. 1-1-13.)
(35 ILCS 200/27-55)
Sec. 27-55. Authorization Objection petition.
Notwithstanding any other provision of law, on and after the
effective date of this amendatory Act of the 100th General
Assembly, no special service area may be created or enlarged;
no special service area tax may be levied, imposed, or
increased; and no bonds may be issued for the provision of
special services within the area, unless If a petition signed
by at least 51% of the taxpayers of record of all property

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electors residing within the special service area or and by at
least 51% of the taxpayers owners of record of the land
included within the boundaries of the special service area is
filed with the municipal clerk or county clerk, as the case may
be, authorizing within 60 days following the final adjournment
of the public hearing, objecting to the creation of the special
service district, the enlargement of the area, the levy or
imposition of a tax or the issuance of bonds for the provision
of special services to the area, or to a proposed increase in
the tax rate, as the case may be. The petition must be filed
within 60 days following the final adjournment of the public
hearing. Only one taxpayer of record may sign an authorization
petition for any single property index number within the
proposed special service area. For the purposes of signing the
petition, "taxpayer of record" means either (i) any person in
whose name the general taxes for the last preceding year were
paid, as demonstrated by a copy of the tax bill or
documentation from the assessor or clerk, or (ii) any person in
whose name title is held, as demonstrated by a copy of the last
recorded deed to the property. Any authorized agent may sign a
petition on behalf of an entity, and that person's
certification of his or her authority to sign shall be
presumptive evidence of his or her authority to sign. A
beneficiary of a land trust may sign the petition with respect
to the property held by that land trust, and that person's
certification that he or she is a beneficiary shall be

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presumptive evidence of his or her authorization to sign.
Taxpayers , the district shall not be created or enlarged, or
the tax shall not be levied or imposed nor the rate increased,
or no bonds may be issued. The subject matter of the petition
shall not be proposed relative to any signatories of the
petition within the next 2 years. Each resident of the special
service area registered to vote at the time of the public
hearing held with regard to the special service area shall be
considered an elector. Each person in whose name legal title to
land included within the boundaries of the special service area
is held according to the records of the county in which the
land is located shall be considered an owner of record. Owners
of record shall be determined at the time of the public hearing
held with regard to a special service area. Land owned in the
name of a land trust, corporation, estate or partnership shall
be considered to have a single owner of record.
(Source: P.A. 82-640; 88-455.)
(35 ILCS 200/27-100 new)
Sec. 27-100. Special service area commissions.
(a) Notwithstanding any other provision of law, no member
of a special service area commission may be an owner or board
member of the service provider agency selected for that special
service area.
(b) Notwithstanding any other provision of law, no business
owned by a member of a special service area commission or an

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employee of the municipality may, for valuable consideration,
provide goods or services in connection with the special
service area.
(c) Notwithstanding any other provision of law, with
respect to special service area commissions established on or
after the effective date of this amendatory Act of the 100th
General Assembly, at least one member of the special service
area commission shall be an owner of homestead property, as
defined in Section 15-175, located within the special service
area.
(d) This Section is a limitation under subsection (i) of
Section 6 of Article VII of the Illinois Constitution on the
concurrent exercise by home rule units of powers and functions
exercised by the State.
(35 ILCS 200/27-105 new)
Sec. 27-105. Lines of credit. Special service area
commissions may not establish a loan or line of credit in
connection with the special service area. Service provider
agencies in those municipalities may establish a loan or line
of credit in connection with the special service area; however,
financing under this Section may not be secured by future tax
revenue generated by the special service area. This Section is
a limitation under subsection (i) of Section 6 of Article VII
of the Illinois Constitution on the concurrent exercise by home
rule units of powers and functions exercised by the State.

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(35 ILCS 200/27-110 new)
Sec. 27-110. Special service area moneys used in the next
fiscal year. Notwithstanding any other provision of law, if
there is excess money remaining in a special service area fund
at the end of a fiscal year, then the corporate authorities may
use that excess money to provide special services within the
special service area in the next fiscal year, provided that the
total amount used for purposes other than capital expenditures
may not exceed 25% of the previous fiscal year's budget for the
special service area. This Section is a limitation under
subsection (i) of Section 6 of Article VII of the Illinois
Constitution on the concurrent exercise by home rule units of
powers and functions exercised by the State.
(35 ILCS 200/27-115 new)
Sec. 27-115. Special service area audits. Each special
service area commission shall cause an audit of the funds and
accounts of the special service area to be submitted to the
corporate authorities of the municipality at least annually.
The audit shall be made in accordance with generally accepted
auditing standards. This Section is a limitation under
subsection (i) of Section 6 of Article VII of the Illinois
Constitution on the concurrent exercise by home rule units of
powers and functions exercised by the State.

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(35 ILCS 200/27-120 new)
Sec. 27-120. Terms of special service areas.
Notwithstanding any other provision of law, each special
service area established on or after the effective date of this
amendatory Act of the 100th General Assembly shall expire on
December 31 of the tenth levy year after the special service
area takes effect, unless an earlier date is specified in the
ordinance proposing the establishment of the special service
area. A special service area established on or after the
effective date of this amendatory Act of the 100th General
Assembly may be renewed once for an additional period of not
more than 15 years if a petition proposing the extension signed
by at least 20% of the electors residing within the special
service area and by at least 20% of the owners of record of the
land included within the boundaries of the special service area
is filed with the municipal clerk not less than 60 days prior
to expiration of the special service area. This Section is a
limitation under subsection (i) of Section 6 of Article VII of
the Illinois Constitution on the concurrent exercise by home
rule units of powers and functions exercised by the State.
Section 99. Effective date. This Act takes effect upon
becoming law.
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INDEX
Statutes amended in order of appearance