103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB3679
 
Introduced 2/9/2024, by Sen. Sara Feigenholtz
 
SYNOPSIS AS INTRODUCED:

New Act
 Creates the Business Improvement District Law. Provides for the establishment of business improvement districts by a municipality by ordinance after petition by property owners, creation of a district plan, notice, and hearings. Provides that a business improvement district may impose district charges on property owners whose real properties are located within the business improvement district. Provides that the board of directors of a business improvement district shall administer or implement activities and improvements specified in the district plan unless the board contracts with a district management association to do so. Contains provisions relating to district plans, formation of a district, district boundaries, terms and renewal of districts, amendment to district plans, governance of the district, reports of the board of directors of a business improvement district, contesting the validity of a business improvement district, district plan, or district charge, dissolution, and legislative purpose. Provides that the Act applies only to municipalities having a population exceeding 500,000. Defines terms. Effective immediately.


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A BILL FOR
 
SB3679LRB103 39381 AWJ 69554 b


1 AN ACT concerning local government.

2 Be it enacted by the People of the State of Illinois, 
3represented in the General Assembly:

4 Section 1. Short title. This Act may be cited as the 
5Business Improvement District Law.

6 Section 5. Purpose. The General Assembly finds that it is 
7in the interest of the State of Illinois to promote the 
8economic revitalization and physical maintenance of business 
9districts in order to create jobs, attract new businesses, 
10retain existing businesses, increase public safety, and spur 
11new investments. The General Assembly finds that this purpose 
12may best be accomplished by allowing business improvement 
13districts to fund business-related activities and improvements 
14through the levy of district charges upon the owners of real 
15property that receive benefits from those activities and 
16improvements.

17 Section 7. Applicability. This Act applies only to 
18municipalities having a population exceeding 500,000.

19 Section 10. Definitions. As used in this Act:
20 "Activities" means services provided for the purpose of 
21conferring benefit upon assessed owners of property located 
 
 
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1within a business improvement district, including, but not 
2limited to:
3  (1) promotion of events taking place within the 
4 business improvement district;
5  (2) furnishing of music;
6  (3) marketing and economic development, including 
7 retail retention and recruitment;
8  (4) providing security, sanitation, graffiti removal, 
9 street and sidewalk cleaning, and other services 
10 supplemental to base services; and
11  (5) other services provided for the purpose of 
12 conferring benefit upon assessed owners of property 
13 located within the business improvement district.
14 "Activities" does not include lobbying, as that term is 
15defined in Section 2 of the Lobbyist Registration Act and 
16Chapter 2-156 of the Municipal Code of Chicago.
17 "Base services" means services provided by any public 
18entity, or paid for wholly or in part out of public funds, 
19generally throughout a municipality to real property within 
20the municipality.
21 "Business improvement district" means a contiguous area 
22within a municipality in which activities, improvements, or 
23activities and improvements are provided in addition to base 
24services. Territory shall be considered contiguous for 
25purposes of this Act even though certain completely surrounded 
26portions of the territory are excluded from the business 
 
 
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1improvement district. For purposes of this Act, parcels are 
2within the same contiguous area if they touch or join one 
3another in a reasonably substantial physical sense or if they 
4meet the criteria for annexation to a municipality under 
5Section 7-1-1 of the Illinois Municipal Code. 
6 "Clerk" means the municipal clerk.
7 "District charge" means a charge levied on behalf of a 
8business improvement district for the purpose of acquiring, 
9constructing, installing, or maintaining improvements or 
10providing activities that will confer special benefits upon 
11assessed property owners within the business improvement 
12district. District charges levied for the purpose of 
13conferring special benefits upon assessed property owners 
14within a business improvement district are not taxes for the 
15general benefit of a municipality, even if real property or 
16persons not charged receive incidental or collateral 
17beneficial effects.
18 "District management association" means a private or 
19not-for-profit entity that enters into a contract with a board 
20of directors of a business improvement district to administer 
21or implement activities and improvements specified in the 
22district plan for a business improvement district. A district 
23management association shall not be considered a public entity 
24for any purpose.
25 "District plan" means a proposal for a business 
26improvement district that contains the information described 
 
 
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1in Section 15.
2 "Governing body" means the corporate authorities of a 
3municipality. 
4 "Improvements" means the acquisition, construction, 
5installation, or maintenance of any tangible property provided 
6for the purpose of conferring benefit upon assessed property 
7owners located within a business improvement district.
8 "Property owner" or "owner" means the record owner of fee 
9simple interest in a real property subject to assessment, 
10which will be deemed to be the person or entity that pays 
11property taxes on the real property according to county 
12records, unless another person or entity establishes to the 
13municipality by clear and convincing evidence that they are 
14the record owner of the fee simple interest.
15 "Public entity" means (i) the State or any agency, board, 
16or commission of the State, (ii) any school district, or (iii) 
17any unit of local government.

18 Section 15. District plan. 
19 (a) A business improvement district established under this 
20Act is subject to and governed by a district plan, as may be 
21amended as set forth in Section 60, and filed with the clerk. A 
22district plan shall be prepared by the property owner or 
23owners who submit the written petition to the clerk under 
24Section 30.
25 (b) The district plan shall include, but need not be 
 
 
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1limited to, the following:
2  (1) The name of the business improvement district.
3  (2) A map of the business improvement district in 
4 sufficient detail to allow a property owner to reasonably 
5 determine whether a parcel of real property is located 
6 within the boundaries of the business improvement 
7 district.
8  (3) A description of the boundaries of the business 
9 improvement district in a manner sufficient to identify 
10 the real property included in the business improvement 
11 district. 
12  (4) The initial term of the business improvement 
13 district.
14  (5) A statement identifying the activities and 
15 improvements within the business improvement district that 
16 may be provided from time to time for which property 
17 owners will be charged and that the activities and 
18 improvements that are provided may vary from year to year 
19 and may differ by class.
20  (6) A statement identifying the maximum amount of the 
21 annual district charge to be levied and that the maximum 
22 amount of the annual district charge levied may vary from 
23 year to year.
24  (7) A statement identifying the maximum amount of 
25 total district charges to be levied for the term of the 
26 business improvement district.
 
 
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1  (8) A statement identifying the proposed source or 
2 sources of financing, including the proposed method and 
3 basis of levying an assessment, in sufficient detail to 
4 allow each property owner to calculate (i) the estimated 
5 amount of the district charge to be levied upon the 
6 property owner annually, (ii) the maximum amount of the 
7 district charge that could be levied upon the property 
8 owner annually, and (iii) the total amount of the district 
9 charges that could be levied upon the property owner for 
10 the term of the business improvement district. 
11  (9) Any interest or penalties that may be imposed for 
12 delinquent payment of a district charge.
13  (10) A list of the real property subject to a district 
14 charge, and a statement of any proposed classifications. 
15 The list shall include the permanent tax index number of 
16 each parcel located within the business improvement 
17 district.
18  (11) A statement of the real property classes exempt 
19 from charge, and a list of the real property to be 
20 exempted.
21  (12) A statement identifying the proposed procedures 
22 for renewal, subject to the limitations under Section 55.
23  (13) A statement identifying the district management 
24 association and the district management association's 
25 anticipated liability insurance coverage limits if the 
26 business improvement district will be contracting with a 
 
 
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1 district management association.
2  (14) A statement identifying how unspent revenue 
3 collected from district charges may be allocated, carried 
4 over year to year, or returned to the assessed property 
5 owners at the end of each year by applying the same method 
6 and basis that was used to calculate the district charges 
7 levied throughout the term of the business improvement 
8 district.
9  (15) The manner by which an assessed property owner 
10 may contest the calculation of a specific district charge.
11  (16) A statement identifying the business improvement 
12 district's governance structure. The governance structure 
13 shall include a board of directors, and the statement 
14 shall identify the size of the board, the manner in which 
15 directors are elected or appointed to serve on the board, 
16 the term of the board members, and any other details 
17 required under Section 50 of this Act. 
18  (17) The anticipated annual percentage of total 
19 district charges that will be allocated for administrative 
20 expenses to operate and maintain the business improvement 
21 district. 
22  (18) A statement identifying if a class or classes of 
23 real property exempt from district charges may elect to 
24 have a district charge levied against the property for the 
25 purposes of receiving benefits from the business 
26 improvement district. If the district plan authorizes this 
 
 
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1 elective participation, the district plan must also 
2 identify the process by which the property owner 
3 affirmatively elects to participate, the maximum annual 
4 amount of district charges to be levied against the 
5 property owner, and the maximum amount of total district 
6 charges to be levied against the property owner for the 
7 term of the business improvement district. 
8  (19) Any proposed rules and regulations to be applied 
9 to the business improvement district.

10 Section 20. Assessments and district charges. 
11 (a) Each district plan shall provide for an assessment 
12levied upon property owners owning property within the 
13business improvement district upon which district charges are 
14based, except an assessment may not be levied against a public 
15entity even if the public entity owns property within the 
16business improvement district. Unless the district plan 
17provides for elective participation and the property owner 
18elects to have a district charge assessed and levied upon the 
19property owner, assessments may not be levied upon property 
20owners owning property within the business improvement 
21district that is classified for purposes of taxation under 
22established ordinance by the local county board as residential 
23or exempt from taxation, except that for properties located in 
24Cook County, this only applies to properties granted Class 0 
25and Class 2 classification under the classification system for 
 
 
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1assessment in effect when the assessment is levied. District 
2charges shall be levied at a rate or amount sufficient to 
3produce revenues required to provide the activities and 
4improvements specified in the district plan, except a district 
5charge may not be levied against a single property owner that 
6exceeds 20% of the total district charges assessed in the 
7business improvement district. The revenue from the levy of 
8district charges within a business improvement district may 
9not be used to provide services outside the business 
10improvement district or for any purpose other than the 
11purposes set forth in the ordinance adopting the district 
12plan. The business improvement district is not required to use 
13revenue from the levy of district charges within a business 
14improvement district to provide services to any property 
15wherein a district charge is not levied against the property 
16owner.
17 (b) District charges shall be levied on the basis of the 
18estimated benefit to the real property located within the 
19business improvement district. In determining the assessment, 
20the board of directors of a business improvement district may 
21reasonably classify real property for purposes of determining 
22benefit if so provided in the district plan. The 
23classification may be based on various factors, including, as 
24applicable, square footage, geography, or any other factor 
25reasonably relating to the benefit received. Certain classes 
26may be specified in the district plan as exempted from being 
 
 
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1charged if they would not receive a special benefit from the 
2activities and improvements. District charges need not be 
3imposed on different classes on the same basis or the same 
4rate.
5 (c) District charges levied upon property owners owning 
6property within the business improvement district may be 
7billed and collected as follows:
8  (1) the county collector of the county in which a 
9 business improvement district is located may bill and 
10 collect district charges with the regular property tax 
11 bills of the county if requested by a municipality within 
12 its jurisdiction that has established a business 
13 improvement district; however, no municipality is required 
14 to make this request of its county collector. If the 
15 county collector agrees to bill and collect district 
16 charges with the regular property tax bills of the county, 
17 then the applicable district plan shall be filed with the 
18 county collector and the annual amount due as set forth by 
19 the board of directors of a business improvement district 
20 shall become due in installments at the times property 
21 taxes shall become due in accordance with each regular 
22 property tax bill payable during the year in which the 
23 district charge comes due. The county collector shall 
24 promptly remit the district charges collected to the 
25 municipality; or
26  (2) if the county collector does not agree to bill and 
 
 
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1 collect district charges with the regular property tax 
2 bills of the county or the municipality that has 
3 established the business improvement district declines to 
4 request the county collector to do so, then the 
5 municipality shall bill and collect the district charges, 
6 either directly or through a third party, and the annual 
7 amount due as set forth by the board of directors of the 
8 business improvement district in accordance with the 
9 district plan shall become due in installments on or about 
10 the times property taxes would otherwise become due in 
11 accordance with each regular property tax bill payable 
12 during the year in which the district charge comes due. 
13 The governmental unit shall not bill the business 
14 improvement district for the cost of billing and 
15 collecting the district charges, but may pass on the 
16 actual costs incurred if using a third party to bill and 
17 collect the district charges.
18 (d) District charges shall be payable at the times and in 
19the manner set forth in the applicable bill. Delinquent 
20payments for district charges levied pursuant to this Act may 
21be charged interest and penalties as may be set forth in the 
22district plan.
23 (e) District charges shall promptly, and in no case later 
24than 90 days after collection, be remitted by the municipality 
25to the board of directors of a business improvement district.

 
 
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1 Section 25. Boundaries of business improvement district.
2 (a) The boundaries of a proposed business improvement 
3district may not overlap with the boundaries of another 
4business improvement district or with the boundaries of a 
5special service area established pursuant to the Special 
6Service Area Tax Law.
7 (b) The boundaries of any proposed business improvement 
8district may overlap with the boundaries of a tax increment 
9financing district.

10 Section 30. Proposals to establish a business improvement 
11district. 
12 (a) To propose a business improvement district, a written 
13petition satisfying the requirements of Section 75 shall be 
14filed with the clerk and shall include the name and legal 
15status of the filing party, information specifying where the 
16complete district plan can be obtained, and a summary of the 
17district plan that includes: the boundaries of the proposed 
18business improvement district; the proposed activities and 
19improvements and estimated amount of annual funding required; 
20the method of assessment; the business improvement district's 
21governance structure; and the total amount of the proposed 
22district charges. The information contained in the summary 
23shall be sufficient if it enables a property owner to 
24generally identify the location and extent of the proposed 
25business improvement district, the nature and extent of the 
 
 
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1activities and improvements, the estimated annual district 
2charge that the property owner would pay, and the maximum 
3annual district charge that the property owner would pay.
4 (b) Upon receiving a written petition to establish a 
5business improvement district and concluding that the petition 
6meets the requirements of Section 75, the clerk shall submit 
7the petition to the governing body.

8 Section 35. Resolution of intent to consider establishment 
9of a business improvement district. After receiving a verified 
10petition from the clerk, the governing body shall, within 90 
11days, adopt a resolution of intention to consider the 
12establishment of a business improvement district. The 
13resolution shall state the time and place of a public hearing 
14to be held by the governing body to consider establishment of a 
15business improvement district and shall restate all the 
16information contained in the petition regarding the boundaries 
17of the proposed business improvement district, the proposed 
18activities and improvements, and estimated amount of annual 
19funding required, the method of assessment, the governance 
20structure, and the total amount of the proposed district 
21charges anticipated for the initial term of the business 
22improvement district.

23 Section 40. Establishment. 
24 (a) Within 30 days after the public hearing to consider 
 
 
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1establishment of a business improvement district, the party 
2who filed the district plan with the clerk may modify the 
3district plan, including to satisfy any applicable legal 
4requirements or remedy any deficiencies, prior to the adoption 
5of an ordinance establishing a business improvement district. 
6Any modification to the district plan that changes the source 
7or sources of financing, including the method and basis of 
8levying the district charge or an increase or reduction in the 
9maximum annual amount or maximum total amount of the district 
10charge against one or more properties within the business 
11improvement district, the procedures for renewal, the 
12boundaries of a business improvement district, the business 
13improvement district's board of director's governance 
14structure, the activities and improvements to be provided 
15within the business improvement district, or a change to the 
16filing party must be approved by a written petition that 
17conforms to the petition signature requirements set forth in 
18Section 75. If the district plan is so modified, the governing 
19body shall call an additional public hearing to hear and 
20consider objections to the modified district plan prior to the 
21adoption of an ordinance establishing a business improvement 
22district.
23 (b) If, following all required public hearings, the 
24governing body decides to establish a business improvement 
25district, the governing body shall adopt an ordinance 
26establishing the business improvement district that shall 
 
 
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1include, but is not limited to, all the following information:
2  (1) A detailed description of: the boundaries of the 
3 proposed business improvement district, which may be made 
4 by reference to a plan or map; the proposed activities and 
5 improvements, and an estimated amount of annual funding 
6 required; the method of assessment; the maximum amount of 
7 annual district charges; and the total amount of the 
8 proposed district charges for the initial term of the 
9 business improvement district. The descriptions shall be 
10 sufficient if the descriptions enable a property owner to 
11 generally identify the location and extent of the proposed 
12 business improvement district, the nature and extent of 
13 the activities and improvements, and the maximum annual 
14 district charge that the property owner would pay.
15  (2) The time and place where any public hearing 
16 concerning the establishment of the business improvement 
17 district was held.
18  (3) A statement that the activities and improvements 
19 to be conferred upon property owners will be funded by the 
20 levy of district charges.
21  (4) A finding that each item in the district plan 
22 satisfies all applicable legal requirements and that 
23 establishing the business improvement district is in the 
24 public interest.
25  (5) The adoption of the district plan, as may be 
26 modified pursuant to subsection (a), including each item 
 
 
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1 set forth in Section 15.
2  (6) A statement identifying the entity that will be 
3 responsible for administering district charges, including 
4 the functions of billing, collecting, and enforcement, 
5 pursuant to Section 20.
6  (7) Authorization for the municipality to remit 
7 district charges to the board of directors of a business 
8 improvement district for the provision of activities and 
9 improvement.
10  (8) The deadline and manner for submitting the annual 
11 report required in Section 65.
12 (c) The ordinance establishing the business improvement 
13district may not create additional obligations, burdens, 
14requirements, liabilities, or restrictions for the business 
15improvement district, board of directors of a business 
16improvement district, or, when applicable, district management 
17association other than those that are expressly contemplated 
18by the district plan.

19 Section 45. Activities and improvements. 
20 (a) Upon establishment of a business improvement district, 
21the municipality or county collector may levy and collect the 
22district charge pursuant to Section 20 as allowed by the 
23district plan and the ordinance adopting the district plan.
24 (b) Activities and improvements provided pursuant to this 
25Act shall be provided in addition to base services. The 
 
 
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1appropriate municipality shall continue to provide the same 
2level of base services in any business improvement district as 
3is provided to other real property within the municipality. 
4The business improvement district is not expected or required 
5to supplement any base services, but the board of directors of 
6a business improvement district or the district management 
7association, whichever may be applicable, may cause activities 
8and improvements that supplement any base services within the 
9business improvement district in accordance with the district 
10plan.

11 Section 50. Governance. 
12 (a) The board of directors of a business improvement 
13district shall be established as a not-for-profit corporation 
14subject to all applicable State and federal laws or 
15regulations. 
16 (b) The bylaws of a board of directors of a business 
17improvement district shall provide for voting representation 
18of owners whose real property is located within the business 
19improvement district and may provide that the votes be 
20weighted in proportion to the district charge levied or to be 
21levied upon property owners within the business improvement 
22district, except the total number of votes assigned to one 
23owner may not exceed 20% of the total number of votes which may 
24be cast. 
25 (c) In the initial year of the first term of a business 
 
 
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1improvement district, unless a lower threshold is expressly 
2provided for in the district plan, all serving on the board of 
3directors shall be property owners, their property management 
4agents, or their tenant designees whose real property is 
5located within the business improvement district. After the 
6initial year of the first term of a business improvement 
7district, at least 25% of the members of the board of directors 
8must consist of tenant designees of property owners whose real 
9property is located within the business improvement district. 
10In order to satisfy the 25% tenant designee requirement, the 
11board may increase in size if permitted under the district 
12plan and bylaws of the board of directors pursuant to 
13subsection (b). As used in this subsection, "tenant designee" 
14includes (i) an individual, partnership, corporation, 
15association, joint venture, or other commercial entity that 
16maintains a tenancy agreement with a property owner for real 
17property located within the business improvement district or 
18(ii) a private or not-for-profit entity that represents the 
19interests of an individual partnership, corporation, 
20association, joint venture, or other commercial entity that 
21maintains a tenancy agreement with a property owner for real 
22property located within the business improvement district, and 
23who is required to pay some portion of the district charge 
24assessed against the property owner pursuant to the tenancy 
25agreement or some other written agreement maintained with the 
26property owner. In order for a tenant designee to be eligible 
 
 
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1to serve on the board of directors of a business improvement 
2district, the tenant designee's tenancy agreement with the 
3property owner must cover leased space that constitutes a 
4substantial percentage of the total leasable area within the 
5property owner's property located inside the business 
6improvement district and whose presence substantially 
7contributes to the property's overall economic viability. A 
8tenant designee may be deemed to substantially contribute to 
9the property's overall economic viability based on factors 
10such as leased square footage, revenue contribution, industry 
11prominence, or other considerations relevant to the property's 
12commercial dynamics. The determination of a tenant designee as 
13substantially contributing to the property's overall economic 
14viability shall be at the sole discretion of the property 
15owner. Failure to fill vacancies allocated to a tenant 
16designee do not prevent the board of directors from continuing 
17operations if the board of directors is operating consistent 
18with the bylaws of the board of directors and any applicable 
19State or federal law. 
20 (d) The composition of the board of directors shall be 
21described in the statement identifying the governance 
22structure of the business improvement district in the district 
23plan. If allowed by the district plan, the bylaws of a board of 
24directors of a business improvement district may establish a 
25variable range for the size of the board by prescribing a 
26minimum and maximum number of directors. If a variable range 
 
 
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1is established, unless the district plan otherwise provides, 
2the number of directors may be fixed or changed from time to 
3time, within the minimum and maximum, by the directors without 
4further amendment to the bylaws. 
5 (e) For each business improvement district, the board of 
6directors of the business improvement district may contract 
7with a district management association if so designated in the 
8district plan to administer the operation of and provide for 
9and maintain activities and improvements in and for a business 
10improvement district. The contract may provide for the 
11provision and maintenance of activities and improvements by 
12one or more subcontractors of a district management 
13association.
14 (f) In addition to other powers as are conferred on it by 
15law, the board of directors of a business improvement district 
16may make recommendations to the governing body with respect to 
17any matter involving or relating to the business improvement 
18district.
19 (g) For consideration as it may deem appropriate, the 
20governing body may license or grant to the board of directors 
21of a business improvement district the right to undertake or 
22permit commercial activities or other private uses of the 
23streets or other parts of the business improvement district in 
24which the municipality has any real property interest.

25 Section 55. Term; renewal. 
 
 
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1 (a) The initial term for a business improvement district 
2shall be a maximum of 5 years. Any business improvement 
3district may be renewed one or more times by following the 
4procedures for renewal as provided in the district plan if 
5each property owner that is subject to assessment is notified 
6of a pending renewal. A renewal may not go into effect when, 
7prior to the effective date of the renewal, a written petition 
8seeking termination of the renewal that conforms to the 
9petition signature requirements set forth in Section 75 is 
10delivered to the clerk.
11 (b) Upon each renewal, a business improvement district 
12shall have an additional term not to exceed 10 years. Prior to 
13renewal, the ordinance adopting the district plan may be 
14amended pursuant to Section 60, with the amendments to take 
15effect upon renewal.
16 (c) Upon renewal, any remaining revenues derived from the 
17levy of district charges, or any revenues derived from the 
18sale of assets acquired with the revenues, shall be 
19transferred to the board of directors of the renewed business 
20improvement district. If the renewed business improvement 
21district includes additional real property not included within 
22the prior business improvement district, the remaining 
23revenues shall be spent to benefit only the real property 
24within the boundaries of the prior business improvement 
25district. If the renewed business improvement district does 
26not include real property included in the prior business 
 
 
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1improvement district, the remaining revenues attributable to 
2that real property shall be refunded to the property owners of 
3that real property.

4 Section 60. Amendments. 
5 (a) Only upon the written request of the board of 
6directors of a business improvement district may the governing 
7body amend the ordinance adopting the district plan upon which 
8the establishment or renewal of the business improvement 
9district was based as set forth in this Section.
10 (b) Amendments that provide for any change to the source 
11or sources of financing, including the method and basis of 
12levying the district charge or an increase in the maximum 
13annual district charge or the maximum total district charges 
14for the term of the business improvement district, or that 
15provide for any change to the procedures for renewal may be 
16adopted by the governing body by ordinance if, after a public 
17hearing, the governing body determines that it is in the 
18public interest to authorize the change to the source or 
19sources of financing or to authorize the change to the 
20procedures for renewal.
21 (c) Amendments that provide for a change to the boundaries 
22of a business improvement district may be adopted by the 
23governing body by ordinance if, after a public hearing, the 
24governing body determines that it is in the public interest to 
25authorize the change to the boundaries of the business 
 
 
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1improvement district and, if applicable, that all newly 
2included property will benefit from the activities and 
3improvements provided. The governing body may change the 
4boundaries of a business improvement district by either 
5expanding or reducing the existing boundaries. If the change 
6to the boundaries is an expansion to existing boundaries, the 
7expansion area must be contiguous with an existing boundary 
8and the district charges upon property owners in the expansion 
9area shall comply with the requirements of Section 20. The 
10governing body may consider an expansion to the boundaries of 
11a business improvement district only upon receipt of a written 
12petition of property owners within the proposed expansion area 
13that conforms to the petition signature requirements set forth 
14in Section 75. Any revenues that are unspent at the time of an 
15amendment expanding the boundaries of a business improvement 
16district shall be spent to benefit only the real property 
17within the prior boundaries of the business improvement 
18district. If the change to the boundaries is a reduction to 
19existing boundaries, any revenues that are unspent at the time 
20of the amendment and are associated with real property that is 
21being removed from the business improvement district, then 
22those remaining revenues shall be refunded to the assessed 
23property owners of the real property. Any amendment that 
24changes the boundaries of a business improvement district 
25shall provide an updated map of the business improvement 
26district that reflects the expansion or reduction of its 
 
 
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1boundaries.
2 (d) Notice shall be given and public hearings shall be 
3held in accordance with Sections 80 and 85.
4 (e) An amendment not provided for in subsection (b) or (c) 
5may be adopted by the governing body by ordinance without 
6notice and a public hearing if the governing body determines 
7that the amendment is consistent with the objectives of the 
8district plan and is in the public interest to approve the 
9amendment, but the amendment may not create any additional 
10obligations, burdens, requirements, liabilities, or 
11restrictions for the business improvement district or the 
12board of directors of a business improvement district other 
13than those that are expressly allowed by the district plan.

14 Section 65. Reports. 
15 (a) The board of directors of a business improvement 
16district or the district management association, whichever may 
17be applicable, shall prepare or have prepared a report for 
18each fiscal year, except the first fiscal year, for which 
19district charges are to be levied and collected to pay the 
20costs of activities and improvements. The first report shall 
21be submitted after the first year of operation of the business 
22improvement district.
23 (b) The report shall be submitted to the governing body, 
24and to each property owner subject to a district charge upon 
25request, and shall be made available for public inspection. 
 
 
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1The report shall refer to the business improvement district by 
2name, specify the fiscal year to which the report applies, 
3and, with respect to that fiscal year, shall contain, but is 
4not limited to, all the following information:
5  (1) The activities and improvements provided in the 
6 previous fiscal year. 
7  (2) The cost of the activities and improvements 
8 provided in the previous fiscal year. 
9  (3) Administrative expenses incurred in connection 
10 with the activities and improvements provided in the 
11 previous fiscal year. 
12  (4) All other administrative expenses incurred in the 
13 previous fiscal year not contemplated by paragraph (3). 
14  (5) The amount of any surplus or deficit revenues to 
15 be carried over from the previous fiscal year. 
16  (6) A comparison of the projected budget to the actual 
17 expenditures of the business improvement district for the 
18 previous fiscal year. 
19  (7) Planned activities and improvements and projected 
20 costs and administrative expenses for the upcoming fiscal 
21 year. 
22  (8) When applicable, the annual performance evaluation 
23 of the district management association to be conducted by 
24 the board of directors for the business improvement 
25 district. 
26  (9) Applicable annual milestones and metrics for the 
 
 
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1 purposes of measuring the success of the business 
2 improvement district, including the impacts of the 
3 activities and improvements contemplated by the district 
4 plan on economic activity, labor market, public and 
5 community safety statistics, and property values within 
6 the business improvement district.
7  (10) Clear instructions on how to access any other 
8 publicly available report or filing submitted by the 
9 business improvement district under applicable State or 
10 federal laws or regulations.
11 (c) In addition to the annual reporting requirement, the 
12board of directors of a business improvement district shall 
13notify the governing body of any proposed infrastructure or 
14capital project in excess of $50,000 within a reasonable time. 

15 Section 70. Dissolution. 
16 (a) After a public hearing on the subject of dissolution, 
17the governing body may dissolve by ordinance any business 
18improvement district in either of the following circumstances:
19  (1) If the governing body finds there has been 
20 misappropriation of funds, malfeasance, or a violation of 
21 law in connection with the management of the business 
22 improvement district; or
23  (2) Each year during the term of the business 
24 improvement district, there shall be a 60-day period in 
25 which property owners who paid more than 50% of the total 
 
 
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1 of district charges levied in the prior year may request 
2 dissolution of a business improvement district by a 
3 written petition that conforms to the petition signature 
4 requirements set forth in Section 75. The first period 
5 shall begin 60 days prior to one year after the date of 
6 establishment of the district and shall continue for 60 
7 days. The next 60-day period shall begin 60 days prior to 2 
8 years after the date of the establishment of the district. 
9 Each successive year during the term of the district shall 
10 have a 60-day period beginning 60 days after the 
11 anniversary of the date of the establishment of the 
12 district.
13 (b) The governing body shall adopt a resolution of 
14intention to dissolve the business improvement district prior 
15to a public hearing required by this section. The resolution 
16shall state the reason for the dissolution, shall state the 
17time and place of the public hearing, and shall contain a 
18proposal to dispose of any assets acquired with the revenues 
19of district charges levied on behalf of the business 
20improvement district in accordance with subsection (d). 
21 (c) Notice shall be given and public hearings shall be 
22held in accordance with Sections 80 and 85.
23 (d) Upon the dissolution or expiration without renewal of 
24a district, and after all outstanding debts are paid, any 
25remaining revenues derived from the levy of district charges, 
26including any remaining revenues from district charges 
 
 
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1collected after dissolution, or derived from the sale of 
2assets acquired with these revenues or construction funds, 
3shall be either: (i) refunded to the property owners then 
4located or operating within the business improvement district 
5in which district charges were levied by applying the same 
6method and basis that was used to calculate the district 
7charges levied in the fiscal year in which the district 
8dissolves or expires; or (ii) spent on activities or 
9improvements specified in the district plan under a valid and 
10enforceable contract executed by the board of directors of a 
11business improvement district or the district management 
12association, whichever may be applicable, prior to the 
13dissolution. If the dissolution occurs before district charges 
14are levied for the fiscal year, the method and basis that was 
15used to calculate district charges levied in the immediate 
16prior fiscal year shall be used to calculate the amount of any 
17refund.

18 Section 75. Petition signature requirements. Any petition 
19required by this Act must be signed by property owners in the 
20proposed business improvement district or proposed expanded 
21area of a business improvement district, as the case may be, 
22who cumulatively are expected to pay more than 50% of the total 
23amount of the district charges proposed to be levied. All 
24signatures for a petition to establish or expand a business 
25improvement district must be collected within a period ending 
 
 
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1no more than 120 days from the initiation of the petition, 
2which date shall be specified on the petition.

3 Section 80. Manner of notice. In addition to any notice of 
4a public hearing issued by a governing body, the property 
5owner or owners who submit the written petition to the clerk 
6under Section 30 or, after a business improvement district is 
7established, the board of directors of a business improvement 
8district shall also provide notice of a public hearing 
9required under this Act. The notice of the public hearing 
10shall be given by publication and mailing. When notice by 
11publication is required, it shall be provided in both physical 
12and online form in a newspaper of general circulation within 
13the business improvement district at least once not less than 
1415 days prior to the public hearing. The notice must, in 
15addition, be published on the website of the business 
16improvement district or its district management association, 
17if the district or association has a website. Notice by 
18mailing shall be given by depositing the notice in the United 
19States mail addressed to each property owner subject to a 
20district charge, as well as all members of the board of 
21directors. The notice must, in addition, be electronically 
22mailed if an electronic mailing address is known for each 
23owner subject to a district charge as well as all members of 
24the board of directors. Notice shall be mailed and 
25electronically mailed not less than 14 days prior to the time 
 
 
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1set for the public hearing. The mailed and electronically 
2mailed notice shall enclose or include information allowing a 
3property owner to obtain a copy of any proposed district plan 
4or proposed amended district plan. 

5 Section 85. Public hearings. At a public hearing held 
6pursuant to this Act, any interested person, including all 
7property owners owning real property located within a proposed 
8or existing business improvement district, may file with the 
9clerk written objections to or statements in support of, and 
10may be heard orally, with respect to any matter embodied in the 
11district plan or concerning the management of the business 
12improvement district. The governing body shall hear and 
13consider all statements and objections at the public hearing. 
14The governing body may adjourn a public hearing to another 
15date without further notice other than a motion fixing the 
16time and place the public hearing will reconvene.

17 Section 90. Existing law. This Act provides an alternative 
18method of financing certain activities and improvements. The 
19provisions of this Act do not affect or limit any other 
20provisions of law authorizing or providing for the furnishing 
21of activities or improvements or the raising of revenue for 
22these purposes. Every special service area established 
23pursuant to the Special Service Area Tax Law is unaffected by 
24this Act.

 
 
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1 Section 95. Contesting validity. The validity of a 
2business improvement district created or amended, district 
3plan established, or district charge imposed under this Act 
4may not be contested in any action or proceeding unless the 
5action or proceeding is commenced: (1) within 30 days after 
6the formation ordinance is adopted; (2) with respect to 
7amendments under Section 65, within 30 days after an amendment 
8has been approved; or (3) with respect to district charges 
9imposed under this Act, within 30 days after receipt of the 
10bill containing the district charge. If a party appeals a 
11final judgment, the party filing the appeal shall request 
12discretionary acceleration under Supreme Court Rule 311(b).