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92_SB1675
LRB9214996BDmb
1 AN ACT to create the Banking Development District Act.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 1. Short title. This Act may be cited as the
5 Banking Development District Act.
6 Section 5. Banking development district programs. There
7 is hereby created a banking development district program, the
8 purpose of which is to encourage the establishment of
9 branches in geographic locations where there is a
10 demonstrated need for banking services. The State Treasurer
11 shall, in consultation with the Office of Banks and Real
12 Estate, promulgate rules, after public hearing and comment,
13 that set forth the criteria for the establishment of banking
14 development districts. The criteria shall include, but not be
15 limited to, the following:
16 (1) the location, number, and proximity of sites
17 where banking services are available within the district;
18 (2) the identification of consumer needs for
19 banking services within the district;
20 (3) the economic viability and local credit needs
21 of the community within the district;
22 (4) the existing commercial development within the
23 district;
24 (5) the impact additional banking services would
25 have on potential economic development in the district;
26 and
27 (6) any other criteria that the State Treasurer
28 deems appropriate.
29 Section 10. Definitions. For the purposes of this Act,
30 the term "local government" means a county, town, city, or
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1 village.
2 The terms "alteration", "construction", "installation",
3 and "improvement" do not include ordinary maintenance and
4 repairs.
5 Section 15. Application. A local government, in
6 conjunction with a bank, trust company, or national bank, may
7 submit an application to the State Treasurer for the
8 designation of a banking development district. The State
9 Treasurer shall issue a determination on the application
10 within 60 days after receiving the application. If an
11 application is approved, the State Treasurer shall transmit
12 notification of the approval to the applicants, the
13 Commissioner of the Office of Banks and Real Estate, the
14 Governor, the State Comptroller, the Director of Commerce and
15 Community Affairs, the President of the Senate, and the
16 Speaker of the House of Representatives.
17 Section 20. Existing facilities. Notwithstanding any
18 other provision of law, an application may be submitted by a
19 local government in conjunction with a bank, trust company,
20 or national bank that has already opened a branch within the
21 area of the proposed district. In considering the criteria
22 authorized under Section 5, the Treasurer must also take into
23 account the importance and benefits of preserving the banking
24 services offered by the existing branch.
25 Section 25. Banking development districts.
26 (a) Real property that is altered, constructed, or
27 improved for use as a branch of a bank, trust company, or
28 national bank in an area designated as a banking development
29 district by the Treasurer, in accordance with this Act, shall
30 be exempt from general taxes and special assessments by any
31 local government for a period of 10 years as provided in this
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1 Section, if the governing board of the local government,
2 after a public hearing, adopts an ordinance or resolution
3 providing for the exemption.
4 (b) Where the ordinance or resolution has been adopted,
5 the real property that is used to establish a branch of a
6 bank, trust company, or national bank in a banking
7 development district shall be exempt for a period of one year
8 of 50% of the "exemption base", determined under subsection
9 (c) of this Section, and the exemption shall be decreased by
10 5% each year during the additional period. A copy of the
11 ordinance or resolution shall be filed with the State
12 Treasurer and the assessor of the local government who
13 prepares the assessment roll on which the taxes of the
14 county, city, town, village, or school district are levied.
15 (c) The "exemption base" is the increase in assessed
16 value attributable to the alteration, construction,
17 installation, or improvement as determined in the initial
18 year for which application for exemption is made. The
19 following table sets forth the method of computing the tax
20 exemption:
21 Year of exemption Percentage of exemption
22 1 50
23 2 45
24 3 40
25 4 35
26 5 30
27 6 25
28 7 20
29 8 15
30 9 10
31 10 5
32 (d) No exemption may be granted under this Section,
33 unless:
34 (1) the alteration, construction, installation, or
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1 improvement commenced on or after either the date the
2 banking development district was designated by the State
3 Treasurer or, if specified in the ordinance or resolution
4 adopted under subsection (a) of this Section, the
5 effective date of the resolution or ordinance; and
6 (2) the property is located in a banking
7 development district designated by the State Treasurer.
8 (e) The exemption may be granted only upon a written
9 application of the owner of the real property on a form
10 prescribed by the Treasurer. The application must be filed
11 with the assessor of the local government having the power to
12 assess property for taxation on or before the appropriate
13 taxable status date of the local government and no later than
14 one year after the date of completion of the alteration,
15 construction, installation, or improvement.
16 (f) If the assessor is satisfied that the applicant is
17 entitled to an exemption under this Section, the assessor
18 must approve the application and the real property shall be
19 exempt from general taxes and special assessments as provided
20 in this Act commencing with the assessment roll prepared
21 after the taxable status date referred to in subsection (d)
22 of this Section. The assessor must enter the assessed value
23 of any exemption granted under this Section onto the
24 assessment roll containing the real property that is exempt
25 and place the amount of the exemption in a separate column
26 Section 99. Effective date. This Act takes effect upon
27 becoming law.