Rep. Sara Feigenholtz

Filed: 11/28/2016

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 3337

2    AMENDMENT NO. ______. Amend Senate Bill 3337, AS AMENDED,
3by replacing everything after the enacting clause with the
4following:
 
5    "Section 5. The Property Tax Code is amended by changing
6Sections 27-5 and 27-25 and by adding Sections 27-100, 27-105,
727-110, 27-115, 27-120, and 27-125 as follows:
 
8    (35 ILCS 200/27-5)
9    Sec. 27-5. Short title; definitions. This Article may be
10cited as the Special Service Area Tax Law.
11    When used in this Article:
12    "Services contract" means an agreement between a service
13provider agency and a municipality or county for the purpose of
14providing special services in and for a special service area.
15    "Service provider agency" means an entity that enters into
16a services contract with a municipality or county for the

 

 

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1purpose of providing special services in and for a special
2service area.
3    "Special Service Area" means a contiguous area within a
4municipality or county in which special governmental services
5are provided in addition to those services provided generally
6throughout the municipality or county, the cost of the special
7services to be paid from revenues collected from taxes levied
8or imposed upon property within that area. Territory shall be
9considered contiguous for purposes of this Article even though
10certain completely surrounded portions of the territory are
11excluded from the special service area. A county may create a
12special service area within a municipality or municipalities
13when the municipality or municipalities consent to the creation
14of the special service area. A municipality may create a
15special service area within a municipality and the
16unincorporated area of a county or within another municipality
17when the county or other municipality consents to the creation
18of the special service area.
19    "Special service area commission" means a local board
20established by the corporate authorities of a municipality or
21county for the purpose of managing a particular special service
22area.
23    "Special Services" means all forms of services pertaining
24to the government and affairs of the municipality or county,
25including but not limited to weather modification and
26improvements permissible under Article 9 of the Illinois

 

 

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1Municipal Code, and contracts for the supply of water as
2described in Section 11-124-1 of the Illinois Municipal Code
3which may be entered into by the municipality or by the county
4on behalf of a county service area.
5(Source: P.A. 86-1324; 88-445.)
 
6    (35 ILCS 200/27-25)
7    Sec. 27-25. Form of hearing notice. Taxes may be levied or
8imposed by the municipality or county in the special service
9area at a rate or amount of tax sufficient to produce revenues
10required to provide the special services. Prior to the first
11levy of taxes in the special service area, notice shall be
12given and a hearing shall be held under the provisions of
13Sections 27-30 and 27-35. For purposes of this Section the
14notice shall include:
15        (a) The time and place of hearing;
16        (b) The boundaries of the area by legal description
17    and, where possible, by street location;
18        (c) The permanent tax index number of each parcel
19    located within the area;
20        (d) The nature of the proposed special services to be
21    provided within the special service area and a statement as
22    to whether the proposed special services are for new
23    construction, maintenance, or other purposes;
24        (d-5) The proposed amount of the tax levy for special
25    services for the initial year for which taxes will be

 

 

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

 

 

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1    (35 ILCS 200/27-100 new)
2    Sec. 27-100. Special service area commissions.
3    (a) Notwithstanding any other provision of law, no member
4of a special service area commission may be an executive
5officer, owner, or member of the board of directors of the
6service provider agency selected for a services contract for
7that special service area.
8    (b) Notwithstanding any other provision of law, no business
9owned by a member of a special service area commission may, for
10valuable consideration, provide goods or services as a
11subcontractor of a service provider agency pursuant to a
12services contract for the special service area that is the
13subject of that special service area commission. No business
14owned by an employee or elected official of a municipality may,
15for valuable consideration, provide goods or services as a
16subcontractor of a service provider agency pursuant to a
17services contract for any special service area located within
18that municipality.
19    (c) At least one membership position for a special service
20area commission in a special service area which contains one or
21more homestead properties, as defined in Section 15-175, shall
22be reserved as a first priority membership position for any
23owner of homestead property located within such special service
24area.
 
25    (35 ILCS 200/27-105 new)

 

 

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1    Sec. 27-105. Lines of credit. Special service area
2commissions may not establish a loan or line of credit in
3connection with the special service area. Service provider
4agencies in those municipalities may establish a loan or line
5of credit in connection with the special service area; however,
6financing under this Section may not be secured by future tax
7revenue generated by the special service area.
 
8    (35 ILCS 200/27-110 new)
9    Sec. 27-110. Special service area moneys used in the next
10fiscal year. Notwithstanding any other provision of law, if
11there is excess money remaining in a special service area fund
12at the end of a fiscal year, then the corporate authorities may
13authorize the use of that excess money to provide special
14services within the special service area in the next fiscal
15year, provided that the total amount used for purposes other
16than capital expenditures may not exceed 25% of the previous
17fiscal year's budget for the special service area.
 
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
24auditing standards.
 

 

 

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1    (35 ILCS 200/27-120 new)
2    Sec. 27-120. Exclusion of erroneously included property.
3If a property is determined by the corporate authorities of the
4municipality to be erroneously included in a special service
5area, the corporate authorities of the municipality may
6disconnect that property from the special service area solely
7by municipal action without regard to Section 27-60 or Section
827-65 of this Act.
 
9    (35 ILCS 200/27-125 new)
10    Sec. 27-125. Administrative fees. Notwithstanding any
11other provision of law, an annual administrative fee may be
12charged for the administration of a special service area. Such
13annual administrative fee may be derived from the annual tax
14levy for each special service area. Any amount recommended by a
15special service area commission and approved as an
16administrative expense which may be paid to the service
17provider agency pursuant to the budget included in a services
18contract shall not exceed 30% of the annual tax levy for the
19special service area that is the subject of such services
20contract and is separate from any municipal administrative fee.
 
21    Section 99. Effective date. This Act takes effect upon
22becoming law.".