100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
SB1471

 

Introduced 2/9/2017, by Sen. Michael Connelly

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Amends the Special Service Area Tax Law in the Property Tax Code. Provides that a list of the names and addresses of the individuals and entities receiving a mailed notice of the public hearing concerning the establishment of a special service area shall be published at the time notice is given and shall be available at the public hearing. Provides that the following current provisions are limits on the concurrent exercise of home rule powers: a section providing that no member of a special service area commission may be an owner or board member of the service provider agency selected for that special service area, a section providing that no business owned by a member of a special service area commission or an employee of the municipality may provide goods or services in connection with the special service area, a section providing that at least one member of the special service area commission shall be an owner of homestead property located within the special service area, a section providing that special service area commissions may not establish a loan or line of credit in connection with the special service area, and a section providing that special service area commissions shall submit an audit of the special service area to the corporate authorities of the municipality at least annually. Contains provisions concerning the expiration of special service areas. Effective immediately.


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FISCAL NOTE ACT MAY APPLY
HOME RULE NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB1471LRB100 09257 HLH 19413 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Property Tax Code is amended by changing
5Sections 27-30, 27-55, 27-100, 27-105, 27-110, and 27-115 and
6by adding Section 27-130 as follows:
 
7    (35 ILCS 200/27-30)
8    Sec. 27-30. Manner of notice. Prior to or within 60 days
9after the adoption of the ordinance proposing the establishment
10of a special service area the municipality or county shall fix
11a time and a place for a public hearing. The public hearing
12shall be held not less than 60 days after the adoption of the
13ordinance proposing the establishment of a special service
14area. Notice of the hearing shall be given by publication and
15mailing, except that notice of a public hearing to propose the
16establishment of a special service area for weather
17modification purposes may be given by publication only. Notice
18by publication shall be given by publication at least once not
19less than 15 days prior to the hearing in a newspaper of
20general circulation within the municipality or county. Notice
21by mailing shall be given by depositing the notice in the
22United States mails addressed to the person or persons in whose
23name the general taxes for the last preceding year were paid on

 

 

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1each property lying within the special service area. A notice
2shall be mailed not less than 10 days prior to the time set for
3the public hearing. In the event taxes for the last preceding
4year were not paid, the notice shall be sent to the person last
5listed on the tax rolls prior to that year as the owner of the
6property. A list of the names and addresses of the individuals
7and entities to whom the notice will be sent by mail shall be
8published at the time notice is given and shall be available at
9the public hearing.
10(Source: P.A. 97-1053, eff. 1-1-13.)
 
11    (35 ILCS 200/27-55)
12    Sec. 27-55. Authorization Objection petition.
13Notwithstanding any other provision of law, on and after the
14effective date of this amendatory Act of the 100th General
15Assembly, no special service area may be created or enlarged;
16no special service area tax may be levied, imposed, or
17increased; and no bonds may be issued for the provision of
18special services within the area, unless If a petition signed
19by at least 51% of the taxpayers of record of all property
20electors residing within the special service area or and by at
21least 51% of the taxpayers owners of record of the land
22included within the boundaries of the special service area is
23filed with the municipal clerk or county clerk, as the case may
24be, authorizing within 60 days following the final adjournment
25of the public hearing, objecting to the creation of the special

 

 

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1service district, the enlargement of the area, the levy or
2imposition of a tax or the issuance of bonds for the provision
3of special services to the area, or to a proposed increase in
4the tax rate, as the case may be. The petition must be filed
5within 60 days following the final adjournment of the public
6hearing. Only one taxpayer of record may sign an authorization
7petition for any single property index number within the
8proposed special service area. For the purposes of signing the
9petition, "taxpayer of record" means either (i) any person in
10whose name the general taxes for the last preceding year were
11paid, as demonstrated by a copy of the tax bill or
12documentation from the assessor or clerk, or (ii) any person in
13whose name title is held, as demonstrated by a copy of the last
14recorded deed to the property. Any authorized agent may sign a
15petition on behalf of an entity, and that person's
16certification of his or her authority to sign shall be
17presumptive evidence of his or her authority to sign. A
18beneficiary of a land trust may sign the petition with respect
19to the property held by that land trust, and that person's
20certification that he or she is a beneficiary shall be
21presumptive evidence of his or her authorization to sign.
22Taxpayers , the district shall not be created or enlarged, or
23the tax shall not be levied or imposed nor the rate increased,
24or no bonds may be issued. The subject matter of the petition
25shall not be proposed relative to any signatories of the
26petition within the next 2 years. Each resident of the special

 

 

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1service area registered to vote at the time of the public
2hearing held with regard to the special service area shall be
3considered an elector. Each person in whose name legal title to
4land included within the boundaries of the special service area
5is held according to the records of the county in which the
6land is located shall be considered an owner of record. Owners
7of record shall be determined at the time of the public hearing
8held with regard to a special service area. Land owned in the
9name of a land trust, corporation, estate or partnership shall
10be considered to have a single owner of record.
11(Source: P.A. 82-640; 88-455.)
 
12    (35 ILCS 200/27-100)
13    Sec. 27-100. Special service area commissions.
14    (a) Notwithstanding any other provision of law, no member
15of a special service area commission may be an executive
16officer, owner, or member of the board of directors of the
17service provider agency selected for a services contract for
18that special service area.
19    (b) Notwithstanding any other provision of law, no business
20owned by a member of a special service area commission may, for
21valuable consideration, provide goods or services as a
22subcontractor of a service provider agency pursuant to a
23services contract for the special service area that is the
24subject of that special service area commission. No business
25owned by an employee or elected official of a municipality may,

 

 

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1for valuable consideration, provide goods or services as a
2subcontractor of a service provider agency pursuant to a
3services contract for any special service area located within
4that municipality.
5    (c) At least one membership position for a special service
6area commission in a special service area which contains one or
7more homestead properties, as defined in Section 15-175, shall
8be reserved as a first priority membership position for any
9owner of homestead property located within such special service
10area.
11    (d) A home rule unit may not establish or maintain a
12special service area commission in a manner inconsistent with
13this Section. This Section is a limitation under subsection (i)
14of Section 6 of Article VII of the Illinois Constitution on the
15concurrent exercise by home rule units of powers and functions
16exercised by the State.
17(Source: P.A. 99-930, eff. 1-20-17.)
 
18    (35 ILCS 200/27-105)
19    Sec. 27-105. Lines of credit. Special service area
20commissions may not establish a loan or line of credit in
21connection with the special service area. Service provider
22agencies in those municipalities may establish a loan or line
23of credit in connection with the special service area; however,
24financing under this Section may not be secured by future tax
25revenue generated by the special service area. A home rule unit

 

 

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1may not regulate lines of credit for special service areas in a
2manner inconsistent with this Section. This Section is a
3limitation under subsection (i) of Section 6 of Article VII of
4the Illinois Constitution on the concurrent exercise by home
5rule units of powers and functions exercised by the State.
6(Source: P.A. 99-930, eff. 1-20-17.)
 
7    (35 ILCS 200/27-110)
8    Sec. 27-110. Special service area moneys used in the next
9fiscal year. Notwithstanding any other provision of law, if
10there is excess money remaining in a special service area fund
11at the end of a fiscal year, then the corporate authorities may
12authorize the use of that excess money to provide special
13services within the special service area in the next fiscal
14year, provided that the total amount used for purposes other
15than capital expenditures may not exceed 25% of the previous
16fiscal year's budget for the special service area. A home rule
17unit may not regulate the use of special service area moneys in
18a manner inconsistent with this Section. This Section is a
19limitation under subsection (i) of Section 6 of Article VII of
20the Illinois Constitution on the concurrent exercise by home
21rule units of powers and functions exercised by the State.
22(Source: P.A. 99-930, eff. 1-20-17.)
 
23    (35 ILCS 200/27-115)
24    Sec. 27-115. Special service area audits. Each special

 

 

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1service area commission shall cause an audit of the funds and
2accounts of the special service area to be submitted to the
3corporate authorities of the municipality at least annually.
4The audit shall be made in accordance with generally accepted
5auditing standards. A home rule unit may not regulate special
6service area audits in a manner inconsistent with this Section.
7This Section is a limitation under subsection (i) of Section 6
8of Article VII of the Illinois Constitution on the concurrent
9exercise by home rule units of powers and functions exercised
10by the State.
11(Source: P.A. 99-930, eff. 1-20-17.)
 
12    (35 ILCS 200/27-130 new)
13    Sec. 27-130. Terms of special service areas.
14Notwithstanding any other provision of law, each special
15service area established on or after the effective date of this
16amendatory Act of the 100th General Assembly shall expire on
17December 31 of the tenth levy year after the special service
18area takes effect, unless an earlier date is specified in the
19ordinance proposing the establishment of the special service
20area. A special service area established on or after the
21effective date of this amendatory Act of the 100th General
22Assembly may be renewed once for an additional period of not
23more than 15 years if a petition proposing the extension signed
24by at least 20% of the electors residing within the special
25service area and by at least 20% of the owners of record of the

 

 

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1land included within the boundaries of the special service area
2is filed with the municipal clerk not less than 60 days prior
3to expiration of the special service area. This Section is a
4limitation under subsection (i) of Section 6 of Article VII of
5the Illinois Constitution on the concurrent exercise by home
6rule units of powers and functions exercised by the State.
 
7    Section 99. Effective date. This Act takes effect upon
8becoming law.

 

 

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1 INDEX
2 Statutes amended in order of appearance
3    35 ILCS 200/27-30
4    35 ILCS 200/27-55
5    35 ILCS 200/27-100
6    35 ILCS 200/27-105
7    35 ILCS 200/27-110
8    35 ILCS 200/27-115
9    35 ILCS 200/27-130 new