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91_HB3153
LRB9109175MWgc
1 AN ACT to create the Automobile Dealer and Big Box
2 Retailer Relocation Act.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 1. Short title. This Act may be cited as the
6 Automobile Dealer and Big Box Retailer Relocation Act.
7 Section 5. Definitions. In this Act:
8 "Big box retailer" means a store of greater than 75,000
9 square feet of gross area that will generate occupation or
10 use taxes under the Retailers' Occupation Tax Act and the Use
11 Tax Act.
12 "Department" means the Department of Revenue.
13 "Financial assistance" includes, but is not limited to,
14 any of the following:
15 (1) any appropriation of public funds, including
16 loans, grants, or subsidies or the payment for or
17 construction of parking improvements;
18 (2) any tax incentive, including tax exemptions,
19 rebates, reductions, or moratoria of tax, including any
20 rebate or payment based upon the amount of occupation or
21 use taxes generated from the automobile dealership or big
22 box retailer;
23 (3) the sale or lease of real property at a cost
24 that is less than fair market value; and
25 (4) payment for, forgiveness of, or reduction of
26 fees.
27 "Local agency" means any municipality or county.
28 "Market area" means a geographical area that is described
29 in independent and recognized commercial trade literature,
30 recognized and established business or manufacturing policies
31 or practices, or publications of recognized independent
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1 research organizations as being an area that is large enough
2 to support the location of the specific automobile dealership
3 or the specific big box retailer that is relocating.
4 With respect to an automobile dealership, a "market area"
5 shall not extend further than 40 miles, as measured by the
6 most reasonable route on roads between 2 points, starting
7 from the location from which the automobile dealership is
8 relocating and ending at the location to which the automobile
9 dealership is relocating. With respect to a big box
10 retailer, a "market area" shall not extend further than 25
11 miles, as measured by the most reasonable route on roads
12 between 2 points, starting from the location from which the
13 big box retailer is relocating and ending at the location to
14 which the big box retailer is relocating.
15 "Relocating" means the closing of an automobile
16 dealership or big box retailer in one location and the
17 opening of an automobile dealership or big box retailer in
18 another location within a 365-day period when a person or
19 business entity has an ownership interest in both the
20 automobile dealership or big box retailer that has closed or
21 will close and the one that is opening. "Relocating" does
22 not mean the closing of an automobile dealership or big box
23 retailer because the automobile dealership or big box
24 retailer has been or will be acquired or has been or will be
25 closed as a result of eminent domain.
26 Section 15. Financial assistance prohibited.
27 Notwithstanding any other provision of law, a local agency
28 may not provide any form of financial assistance to an
29 automobile dealership or big box retailer, or a business
30 entity that sells or leases land to an automobile dealership
31 or big box retailer, that is relocating from the territorial
32 jurisdiction of one local agency to the territorial
33 jurisdiction of another local agency but within the same
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1 market area, unless the corporate authorities of the local
2 agency to which the relocation will occur offers a contract
3 to the local agency from which the relocation is occurring
4 pursuant to this Act.
5 Section 20. Report. If the automobile dealership or big
6 box retailer is relocating within the same county, whether in
7 incorporated or unincorporated territory, or to an adjacent
8 county or a municipality within an adjacent county, the local
9 agency proposing to offer financial assistance shall prepare
10 a report that describes the market area for the automobile
11 dealership or big box retailer that is relocating. The
12 report must include the information required to be contained
13 in the ordinance or resolution under Section 35. The report
14 shall refer to and cite the independent literature, trade
15 publications, and recognized and established business
16 policies and practices describing the market area for the
17 automobile dealership or big box retailer that is relocating.
18 The report shall conclude that the relocation is occurring
19 either within the same market area or outside the same market
20 area. The report shall be available to the public not later
21 than 45 days before the date of the public hearing required
22 by Section 30. In addition, the notice of the public hearing
23 and the report shall be mailed to the local agency from which
24 the relocation is occurring.
25 Section 25. Contract.
26 (a) If the report prepared under Section 20 concludes
27 that the automobile dealership or big box retailer is
28 relocating within the same market area, at least 45 days
29 before the required public hearing, the local agency shall
30 notify the local agency from which the relocation is
31 occurring of its intent to give financial assistance and
32 shall send to that local agency a contract that has been
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1 approved by a two-thirds vote of the corporate authorities of
2 the local agency to which the relocation is occurring and
3 that apportions the occupation and use taxes generated from
4 the automobile dealership or big box retailer and
5 distributions from the Local Government Tax Fund and the
6 County and Mass Transit District Fund that are attributable
7 to the automobile dealership or big box retailer after the
8 relocation between the 2 local agencies in the following
9 manner:
10 (1) The annual amount of assistance shall be
11 subtracted from the annual attributable occupation and
12 use taxes and distributions from the Local Government Tax
13 Fund and the County and Mass Transit District Fund.
14 (2) The difference shall be divided equally between
15 the 2 local agencies for the first 10 fiscal years
16 following the relocation; except that the local agency
17 from which the relocation is occurring may not receive
18 more occupation and use taxes and distributions from the
19 Local Government Tax Fund and the County and Mass Transit
20 District Fund than it received from the automobile
21 dealership or big box retailer in the fiscal year before
22 the relocation.
23 (3) After the first 10 fiscal years following the
24 relocation, the contract and the apportionment shall
25 terminate unless the contract is extended by both local
26 agencies.
27 (b) The local agency from which the relocation is
28 occurring has 30 days after receipt of the contract to
29 approve the contract by enacting an ordinance or resolution
30 approved by two-thirds of the corporate authorities of the
31 local agency.
32 Section 30. Public hearing. Before a local agency may
33 give financial assistance to an automobile dealership or big
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1 box retailer that is relocating, the agency shall hold a
2 public hearing. Notice of the time and place of the hearing
3 shall be published in a newspaper of general circulation
4 within the local agency at least once a week for 3 successive
5 weeks before the hearing.
6 Section 35. Resolution or ordinance. The resolution or
7 ordinance approving financial assistance shall:
8 (1) identify the present name and, if different, the
9 former name of the relocating automobile dealership or big
10 box retailer;
11 (2) identify the address, including the local agency,
12 from which the automobile dealership or big box retailer has
13 moved or will move;
14 (3) identify the address, including the local agency, to
15 which the automobile dealership or big box retailer will
16 move; and
17 (4) contain one of the following findings:
18 (A) that the automobile dealership or big box
19 retailer is not relocating within the same market area;
20 or
21 (B) that the automobile dealership or big box
22 retailer is relocating within the same market area but
23 that a contract containing the terms specified in Section
24 25 of this Act has been approved by the corporate
25 authorities of the local agency to which the relocation
26 is occurring and has been offered to the corporate
27 authorities of the local agency from which the relocation
28 has occurred, who have approved the agreement, entered
29 into another agreement acceptable to both local agencies,
30 or have not accepted the proposed contract within the
31 30-day period.
32 These findings shall be final and conclusive as to all
33 persons except the automobile dealership or big box retailer
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1 that is the subject of the findings and the community from
2 which the relocation has occurred, any of whom may bring an
3 action to challenge the findings.
4 Section 40. Financial assistance for public
5 improvements. The provisions of this Act do not apply to
6 financial assistance in the construction of public
7 improvements that serve all or a portion of the jurisdiction
8 of the local agency to which the relocation is occurring and
9 that are not required to be constructed as a condition of
10 approval of the automobile dealership or big box retailer.
11 This Act does not prohibit assistance in the construction of
12 public improvements that are being constructed for a
13 development other than the automobile dealership or big box
14 retailer.
15 Section 45. Rules. The Department shall adopt rules for
16 the implementation of this Act and the apportionment of use
17 and occupation taxes and distributions from the Local
18 Government Tax Fund and the County and Mass Transit District
19 Fund under this Act.
20 Section 50. Department of Revenue; report. On or before
21 January 1, 2004, the Department of Revenue shall report to
22 the General Assembly and the Governor on the implementation
23 of this Act. The report shall identify the reports prepared
24 under Section 20, the contracts offered under Section 25, and
25 the resolutions or ordinances adopted under Section 35 of
26 this Act. The report may include any additional information
27 that the Department finds relevant. The report may also
28 include recommendations for legislative action including, but
29 not limited to, amending or extending the repeal date of this
30 Act.
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1 Section 55. Home rule. A home rule unit may not grant
2 financial assistance to an automobile dealership or big box
3 retailer in a manner that is inconsistent with this Act. This
4 Section is a limitation under subsection (i) of Section 6 of
5 Article VII of the Illinois Constitution on the concurrent
6 exercise by home rule units of powers and functions exercised
7 by the State.
8 Section 60. Repeal. This Act is repealed on January 1,
9 2005.