Rep. Sara Feigenholtz

Filed: 3/31/2016





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2    AMENDMENT NO. ______. Amend House Bill 1384 by replacing
3everything after the enacting clause with the following:
4    "Section 5. The Property Tax Code is amended by changing
5Sections 27-5 and 27-93 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



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1service area.
2    "Special Service Area" means a contiguous area within a
3municipality or county in which special governmental services
4are provided in addition to those services provided generally
5throughout the municipality or county, the cost of the special
6services to be paid from revenues collected from taxes levied
7or imposed upon property within that area. Territory shall be
8considered contiguous for purposes of this Article even though
9certain completely surrounded portions of the territory are
10excluded from the special service area. A county may create a
11special service area within a municipality or municipalities
12when the municipality or municipalities consent to the creation
13of the special service area. A municipality may create a
14special service area within a municipality and the
15unincorporated area of a county or within another municipality
16when the county or other municipality consents to the creation
17of the special service area.
18    "Special service area commission" means a local board
19established by the corporate authorities of a municipality or
20county for the purpose of managing a particular special service
22    "Special Services" means all forms of services pertaining
23to the government and affairs of the municipality or county,
24including but not limited to weather modification and
25improvements permissible under Article 9 of the Illinois
26Municipal Code, and contracts for the supply of water as



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1described in Section 11-124-1 of the Illinois Municipal Code
2which may be entered into by the municipality or by the county
3on behalf of a county service area.
4(Source: P.A. 86-1324; 88-445.)
5    (35 ILCS 200/27-93)
6    Sec. 27-93. Refunds; special service area fund. If the
7corporate authorities determine that excess revenues exist in a
8special service area fund at the end of the life of the special
9service area and if the option to abate a portion of the final
10tax levy for the special service area is no longer available,
11then the excess funds must be refunded to the taxpayers of
12record for all parcels within the special service area, as of
13the date the refund is declared, on a pro rata basis based upon
14each parcel's proportionate share of the total equalized
15assessed valuation of all parcels within the special service
16area. In processing the refund, the county or municipality may
17deduct not more than 5% of the amount declared to be refunded
18to cover its costs and expenses relative to declaring and
19making the refund.
20    Notwithstanding any other provision of law, including, but
21not limited to, this Section, the corporate authorities may
22reappropriate and expend for any municipal purpose all funds
23attributable to special service area tax revenue which remain
24unexpended upon the expiration of a special service area if the
25corporate authorities deem a refund of those unexpended funds



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1to be impracticable.
2(Source: P.A. 92-226, eff. 1-1-02.)
3    (35 ILCS 200/27-100 new)
4    Sec. 27-100. Special service area commissions.
5    (a) Notwithstanding any other provision of law, no member
6of a special service area commission may be an executive
7officer, owner, or member of the board of directors of the
8service provider agency selected for a services contract for
9that special service area.
10    (b) Notwithstanding any other provision of law, no business
11owned by a member of a special service area commission may, for
12valuable consideration, provide goods or services as a
13subcontractor of a service provider agency pursuant to a
14services contract for the special service area that is the
15subject of that special service area commission. No business
16owned by an employee or elected official of a municipality may,
17for valuable consideration, provide goods or services as a
18subcontractor of a service provider agency pursuant to a
19services contract for any special service area located within
20that municipality.
21    (c) At least one membership position for a special service
22area commission in a special service area which contains one or
23more homestead properties, as defined in Section 15-175, shall
24be reserved as a first priority membership position for any
25owner of homestead property located within such special service



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2    (35 ILCS 200/27-105 new)
3    Sec. 27-105. Lines of credit. Special service area
4commissions may not establish loans or lines of credit in
5connection with the special service area. Service provider
6agencies in those municipalities may establish loans or lines
7of credit in connection with the special service area; however,
8financing under this Section may not be secured by future tax
9revenue generated by the special service area.
10    (35 ILCS 200/27-110 new)
11    Sec. 27-110. Special service area moneys used in the next
12fiscal year. Notwithstanding any other provision of law, if
13there is excess money remaining in a special service area fund
14at the end of a fiscal year, then the corporate authorities may
15authorize the use of that excess money to provide special
16services within the special service area in the next fiscal
18    (35 ILCS 200/27-115 new)
19    Sec. 27-115. Special service area audits. Each special
20service area commission shall cause an audit of the funds and
21accounts of the special service area to be submitted to the
22corporate authorities of the municipality at least annually.
23The audit shall be made in accordance with generally accepted



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1auditing standards.
2    (35 ILCS 200/27-120 new)
3    Sec. 27-120. Exclusion of erroneously included property.
4If a property is determined by the corporate authorities of the
5municipality to be erroneously included in a special service
6area, the corporate authorities of the municipality may
7disconnect the property from the special service area by
8adopting an ordinance to that effect without regard to Section
927-60 or Section 27-65 of this Code.
10    (35 ILCS 200/27-125 new)
11    Sec. 27-125. Administrative fees. Notwithstanding any
12other provision of law, each municipality may charge an annual
13administrative fee for such municipality in connection with the
14administration of each special service area within its
15jurisdiction. Such annual administrative fee may be derived
16from the annual tax levy for each special service area. Any
17amount recommended by a special service area commission and
18approved by such municipalities as administrative expenses
19which may be paid to the service provider agency pursuant to
20the budget included in a services contract shall not exceed 20%
21of the annual tax levy for the special service area which is
22the subject of such services contract.".