HB1384 EngrossedLRB099 04279 HLH 27519 b

1    AN ACT concerning revenue.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Property Tax Code is amended by changing
5Sections 27-5 and 27-25 and by adding Sections 27-100, 27-105,
627-110, 27-115, 27-120, and 27-125 as follows:
7    (35 ILCS 200/27-5)
8    Sec. 27-5. Short title; definitions. This Article may be
9cited as the Special Service Area Tax Law.
10    When used in this Article:
11    "Services contract" means an agreement between a service
12provider agency and a municipality or county for the purpose of
13providing special services in and for a special service area.
14    "Service provider agency" means an entity that enters into
15a services contract with a municipality or county for the
16purpose of providing special services in and for a special
17service area.
18    "Special Service Area" means a contiguous area within a
19municipality or county in which special governmental services
20are provided in addition to those services provided generally
21throughout the municipality or county, the cost of the special
22services to be paid from revenues collected from taxes levied
23or imposed upon property within that area. Territory shall be



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1considered contiguous for purposes of this Article even though
2certain completely surrounded portions of the territory are
3excluded from the special service area. A county may create a
4special service area within a municipality or municipalities
5when the municipality or municipalities consent to the creation
6of the special service area. A municipality may create a
7special service area within a municipality and the
8unincorporated area of a county or within another municipality
9when the county or other municipality consents to the creation
10of the special service area.
11    "Special service area commission" means a local board
12established by the corporate authorities of a municipality or
13county for the purpose of managing a particular special service
15    "Special Services" means all forms of services pertaining
16to the government and affairs of the municipality or county,
17including but not limited to weather modification and
18improvements permissible under Article 9 of the Illinois
19Municipal Code, and contracts for the supply of water as
20described in Section 11-124-1 of the Illinois Municipal Code
21which may be entered into by the municipality or by the county
22on behalf of a county service area.
23(Source: P.A. 86-1324; 88-445.)
24    (35 ILCS 200/27-25)
25    Sec. 27-25. Form of hearing notice. Taxes may be levied or



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1imposed by the municipality or county in the special service
2area at a rate or amount of tax sufficient to produce revenues
3required to provide the special services. Prior to the first
4levy of taxes in the special service area, notice shall be
5given and a hearing shall be held under the provisions of
6Sections 27-30 and 27-35. For purposes of this Section the
7notice shall include:
8        (a) The time and place of hearing;
9        (b) The boundaries of the area by legal description
10    and, where possible, by street location;
11        (c) The permanent tax index number of each parcel
12    located within the area;
13        (d) The nature of the proposed special services to be
14    provided within the special service area and a statement as
15    to whether the proposed special services are for new
16    construction, maintenance, or other purposes;
17        (d-5) The proposed amount of the tax levy for special
18    services for the initial year for which taxes will be
19    levied within the special service area;
20        (e) A notification that all interested persons,
21    including all persons owning taxable real property located
22    within the special service area, will be given an
23    opportunity to be heard at the hearing regarding the tax
24    levy and an opportunity to file objections to the amount of
25    the tax levy if the tax is a tax upon property; and
26        (f) The maximum rate of taxes to be extended within the



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1    special service area in any year and the maximum number of
2    years taxes will be levied if a maximum number of years is
3    to be established; and .
4        (g) If funds received through the special service area
5    are going to be used by a person or entity other than the
6    municipality or county, then a statement to that effect.
7     After the first levy of taxes within the special service
8area, taxes may continue to be levied in subsequent years
9without the requirement of an additional public hearing if the
10tax rate does not exceed the rate specified in the notice for
11the original public hearing and the taxes are not extended for
12a longer period than the number of years specified in the
13notice if a number of years is specified. Tax rates may be
14increased and the period specified may be extended, if notice
15is given and new public hearings are held in accordance with
16Sections 27-30 and 27-35.
17(Source: P.A. 97-1053, eff. 1-1-13.)
18    (35 ILCS 200/27-100 new)
19    Sec. 27-100. Special service area commissions.
20    (a) Notwithstanding any other provision of law, no member
21of a special service area commission may be an executive
22officer, owner, or member of the board of directors of the
23service provider agency selected for a services contract for
24that special service area.
25    (b) Notwithstanding any other provision of law, no business



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1owned by a member of a special service area commission may, for
2valuable consideration, provide goods or services as a
3subcontractor of a service provider agency pursuant to a
4services contract for the special service area that is the
5subject of that special service area commission. No business
6owned by an employee or elected official of a municipality may,
7for valuable consideration, provide goods or services as a
8subcontractor of a service provider agency pursuant to a
9services contract for any special service area located within
10that municipality.
11    (c) At least one membership position for a special service
12area commission in a special service area which contains one or
13more homestead properties, as defined in Section 15-175, shall
14be reserved as a first priority membership position for any
15owner of homestead property located within such special service
17    (d) This Section applies only in municipalities with
181,000,000 or more inhabitants.
19    (35 ILCS 200/27-105 new)
20    Sec. 27-105. Lines of credit. In municipalities with
211,000,000 or more inhabitants, special service area
22commissions may not establish a loan or line of credit in
23connection with the special service area. Service provider
24agencies in those municipalities may establish a loan or line
25of credit in connection with the special service area; however,



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1financing under this Section may not be secured by future tax
2revenue generated by the special service area.
3    (35 ILCS 200/27-110 new)
4    Sec. 27-110. Special service area moneys used in the next
5fiscal year. In municipalities with 1,000,000 or more
6inhabitants, notwithstanding any other provision of law, if
7there is excess money remaining in a special service area fund
8at the end of a fiscal year, then the corporate authorities may
9authorize the use of that excess money to provide special
10services within the special service area in the next fiscal
11year, provided that the total amount used for purposes other
12than capital expenditures may not exceed 25% of the previous
13fiscal year's budget for the special service area.
14    (35 ILCS 200/27-115 new)
15    Sec. 27-115. Special service area audits. In
16municipalities with 1,000,000 or more inhabitants, each
17special service area commission shall cause an audit of the
18funds and accounts of the special service area to be submitted
19to the corporate authorities of the municipality at least
20annually. The audit shall be made in accordance with generally
21accepted auditing standards.
22    (35 ILCS 200/27-120 new)
23    Sec. 27-120. Exclusion of erroneously included property.



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1If a property is determined by the corporate authorities of the
2municipality to be erroneously included in a special service
3area, the corporate authorities of the municipality may
4disconnect that property from the special service area solely
5by municipal action without regard to Section 27-60 or Section
627-65 of this Act. This Section applies only to special service
7areas that (i) are located in whole or in part within a transit
8facility improvement area, as defined in Section 11-74.4-3.3 of
9the Illinois Municipal Code, and (ii) have experienced a
10decrease in the number of privately-owned businesses within the
11special service area since the special service area was
13    (35 ILCS 200/27-125 new)
14    Sec. 27-125. Administrative fees. In municipalities with
151,000,000 or more inhabitants, notwithstanding any other
16provision of law, an annual administrative fee may be charged
17for the administration of a special service area. Such annual
18administrative fee may be derived from the annual tax levy for
19each special service area. Any amount recommended by a special
20service area commission and approved as an administrative
21expense which may be paid to the service provider agency
22pursuant to the budget included in a services contract shall
23not exceed 30% of the annual tax levy for the special service
24area that is the subject of such services contract and is
25separate from any municipal administrative fee.