HB1384ham001 99TH GENERAL ASSEMBLY

Rep. Sara Feigenholtz

Filed: 3/31/2016

09900HB1384ham001 LRB099 04279 HLH 46838 a

AMENDMENT TO HOUSE BILL 1384

AMENDMENT NO. ______. Amend House Bill 1384 by replacing everything after the enacting clause with the following:

"Section 5. The Property Tax Code is amended by changing Sections 27-5 and 27-93 and by adding Sections 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:

"Services contract" means an agreement between a service provider agency and a municipality or county for the purpose of providing special services in and for a special service area.

"Service provider agency" means an entity that enters into a services contract with a municipality or county for the purpose of providing special services in and for 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 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 managing 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 200/27-93)

Sec. 27-93. Refunds; special service area fund. If the corporate authorities determine that excess revenues exist in a special service area fund at the end of the life of the special service area and if the option to abate a portion of the final tax levy for the special service area is no longer available, then the excess funds must be refunded to the taxpayers of record for all parcels within the special service area, as of the date the refund is declared, on a pro rata basis based upon each parcel's proportionate share of the total equalized assessed valuation of all parcels within the special service area. In processing the refund, the county or municipality may deduct not more than 5% of the amount declared to be refunded to cover its costs and expenses relative to declaring and making the refund.

Notwithstanding any other provision of law, including, but not limited to, this Section, the corporate authorities may reappropriate and expend for any municipal purpose all funds attributable to special service area tax revenue which remain unexpended upon the expiration of a special service area if the corporate authorities deem a refund of those unexpended funds to be impracticable.

(Source: P.A. 92-226, eff. 1-1-02.)

(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 executive officer, owner, or member of the board of directors of the service provider agency selected for a services contract for that special service area.

(b) Notwithstanding any other provision of law, no business owned by a member of a special service area commission may, for valuable consideration, provide goods or services as a subcontractor of a service provider agency pursuant to a services contract for the special service area that is the subject of that special service area commission. No business owned by an employee or elected official of a municipality may, for valuable consideration, provide goods or services as a subcontractor of a service provider agency pursuant to a services contract for any special service area located within that municipality.

(c) At least one membership position for a special service area commission in a special service area which contains one or more homestead properties, as defined in Section 15-175, shall be reserved as a first priority membership position for any owner of homestead property located within such special service area.

(35 ILCS 200/27-105 new)

Sec. 27-105. Lines of credit. Special service area commissions may not establish loans or lines of credit in connection with the special service area. Service provider agencies in those municipalities may establish loans or lines 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.

(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 authorize the use of that excess money to provide special services within the special service area in the next fiscal year.

(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.

(35 ILCS 200/27-120 new)

Sec. 27-120. Exclusion of erroneously included property. If a property is determined by the corporate authorities of the municipality to be erroneously included in a special service area, the corporate authorities of the municipality may disconnect the property from the special service area by adopting an ordinance to that effect without regard to Section 27-60 or Section 27-65 of this Code.

(35 ILCS 200/27-125 new)

Sec. 27-125. Administrative fees. Notwithstanding any other provision of law, each municipality may charge an annual administrative fee for such municipality in connection with the administration of each special service area within its jurisdiction. Such annual administrative fee may be derived from the annual tax levy for each special service area. Any amount recommended by a special service area commission and approved by such municipalities as administrative expenses which may be paid to the service provider agency pursuant to the budget included in a services contract shall not exceed 20% of the annual tax levy for the special service area which is the subject of such services contract.".