Rep. Sara Feigenholtz

Filed: 11/14/2016





09900HB1384ham002LRB099 04279 HLH 51583 a


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 27-25 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



09900HB1384ham002- 2 -LRB099 04279 HLH 51583 a

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



09900HB1384ham002- 3 -LRB099 04279 HLH 51583 a

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 200/27-25)
6    Sec. 27-25. Form of hearing notice. Taxes may be levied or
7imposed by the municipality or county in the special service
8area at a rate or amount of tax sufficient to produce revenues
9required to provide the special services. Prior to the first
10levy of taxes in the special service area, notice shall be
11given and a hearing shall be held under the provisions of
12Sections 27-30 and 27-35. For purposes of this Section the
13notice shall include:
14        (a) The time and place of hearing;
15        (b) The boundaries of the area by legal description
16    and, where possible, by street location;
17        (c) The permanent tax index number of each parcel
18    located within the area;
19        (d) The nature of the proposed special services to be
20    provided within the special service area and a statement as
21    to whether the proposed special services are for new
22    construction, maintenance, or other purposes;
23        (d-5) The proposed amount of the tax levy for special
24    services for the initial year for which taxes will be
25    levied within the special service area;



09900HB1384ham002- 4 -LRB099 04279 HLH 51583 a

1        (e) A notification that all interested persons,
2    including all persons owning taxable real property located
3    within the special service area, will be given an
4    opportunity to be heard at the hearing regarding the tax
5    levy and an opportunity to file objections to the amount of
6    the tax levy if the tax is a tax upon property; and
7        (f) The maximum rate of taxes to be extended within the
8    special service area in any year and the maximum number of
9    years taxes will be levied if a maximum number of years is
10    to be established; and .
11        (g) If funds received through the special service area
12    are going to be used by a person or entity other than the
13    municipality or county, then a statement to that effect.
14     After the first levy of taxes within the special service
15area, taxes may continue to be levied in subsequent years
16without the requirement of an additional public hearing if the
17tax rate does not exceed the rate specified in the notice for
18the original public hearing and the taxes are not extended for
19a longer period than the number of years specified in the
20notice if a number of years is specified. Tax rates may be
21increased and the period specified may be extended, if notice
22is given and new public hearings are held in accordance with
23Sections 27-30 and 27-35.
24(Source: P.A. 97-1053, eff. 1-1-13.)
25    (35 ILCS 200/27-100 new)



09900HB1384ham002- 5 -LRB099 04279 HLH 51583 a

1    Sec. 27-100. Special service area commissions.
2    (a) Notwithstanding any other provision of law, no member
3of a special service area commission may be an executive
4officer, owner, or member of the board of directors of the
5service provider agency selected for a services contract for
6that special service area.
7    (b) Notwithstanding any other provision of law, no business
8owned by a member of a special service area commission may, for
9valuable consideration, provide goods or services as a
10subcontractor of a service provider agency pursuant to a
11services contract for the special service area that is the
12subject of that special service area commission. No business
13owned by an employee or elected official of a municipality may,
14for valuable consideration, provide goods or services as a
15subcontractor of a service provider agency pursuant to a
16services contract for any special service area located within
17that municipality.
18    (c) At least one membership position for a special service
19area commission in a special service area which contains one or
20more homestead properties, as defined in Section 15-175, shall
21be reserved as a first priority membership position for any
22owner of homestead property located within such special service
24    (d) This Section applies only in municipalities with
251,000,000 or more inhabitants.



09900HB1384ham002- 6 -LRB099 04279 HLH 51583 a

1    (35 ILCS 200/27-105 new)
2    Sec. 27-105. Lines of credit. In municipalities with
31,000,000 or more inhabitants, special service area
4commissions may not establish a loan or line of credit in
5connection with the special service area. Service provider
6agencies in those municipalities may establish a loan or line
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. In municipalities with 1,000,000 or more
13inhabitants, notwithstanding any other provision of law, if
14there is excess money remaining in a special service area fund
15at the end of a fiscal year, then the corporate authorities may
16authorize the use of that excess money to provide special
17services within the special service area in the next fiscal
18year, provided that the total amount used for purposes other
19than capital expenditures may not exceed 25% of the previous
20fiscal year's budget for the special service area.
21    (35 ILCS 200/27-115 new)
22    Sec. 27-115. Special service area audits. In
23municipalities with 1,000,000 or more inhabitants, each
24special service area commission shall cause an audit of the



09900HB1384ham002- 7 -LRB099 04279 HLH 51583 a

1funds and accounts of the special service area to be submitted
2to the corporate authorities of the municipality at least
3annually. The audit shall be made in accordance with generally
4accepted auditing standards.
5    (35 ILCS 200/27-120 new)
6    Sec. 27-120. Exclusion of erroneously included property.
7If a property is determined by the corporate authorities of the
8municipality to be erroneously included in a special service
9area, the corporate authorities of the municipality may
10disconnect that property from the special service area solely
11by municipal action without regard to Section 27-60 or Section
1227-65 of this Act. This Section applies only to special service
13areas that (i) are located in whole or in part within a transit
14facility improvement area, as defined in Section 11-74.4-3.3 of
15the Illinois Municipal Code, and (ii) have experienced a
16decrease in the number of privately-owned businesses within the
17special service area since the special service area was
19    (35 ILCS 200/27-125 new)
20    Sec. 27-125. Administrative fees. In municipalities with
211,000,000 or more inhabitants, notwithstanding any other
22provision of law, an annual administrative fee may be charged
23for the administration of a special service area. Such annual
24administrative fee may be derived from the annual tax levy for



09900HB1384ham002- 8 -LRB099 04279 HLH 51583 a

1each special service area. Any amount recommended by a special
2service area commission and approved as an administrative
3expense which may be paid to the service provider agency
4pursuant to the budget included in a services contract shall
5not exceed 30% of the annual tax levy for the special service
6area that is the subject of such services contract and is
7separate from any municipal administrative fee.".