101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB0304

 

Introduced 1/10/2019, by Rep. David McSweeney

 

SYNOPSIS AS INTRODUCED:
 
65 ILCS 5/11-74.4-7  from Ch. 24, par. 11-74.4-7

    Amends the Tax Increment Allocation Redevelopment Act in the Illinois Municipal Code. Provides that all obligations issued by a non-home rule municipality in connection with the Tax Increment Allocation Redevelopment Act (instead of TIF obligations secured by the full faith and credit of the municipality) are subject to a backdoor referendum. Provides that a petition calling for a referendum on the issuance of those bonds shall be filed within 45 (instead of 30) days after the publication of the ordinance. Makes changes concerning the signature requirement for those petitions. Effective immediately.


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

 

 

A BILL FOR

 

HB0304LRB101 04025 AWJ 49033 b

1    AN ACT concerning local government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Municipal Code is amended by
5changing Section 11-74.4-7 as follows:
 
6    (65 ILCS 5/11-74.4-7)  (from Ch. 24, par. 11-74.4-7)
7    Sec. 11-74.4-7. Obligations secured by the special tax
8allocation fund set forth in Section 11-74.4-8 for the
9redevelopment project area may be issued to provide for
10redevelopment project costs. Such obligations, when so issued,
11shall be retired in the manner provided in the ordinance
12authorizing the issuance of such obligations by the receipts of
13taxes levied as specified in Section 11-74.4-9 against the
14taxable property included in the area, by revenues as specified
15by Section 11-74.4-8a and other revenue designated by the
16municipality. A municipality may in the ordinance pledge all or
17any part of the funds in and to be deposited in the special tax
18allocation fund created pursuant to Section 11-74.4-8 to the
19payment of the redevelopment project costs and obligations. Any
20pledge of funds in the special tax allocation fund shall
21provide for distribution to the taxing districts and to the
22Illinois Department of Revenue of moneys not required, pledged,
23earmarked, or otherwise designated for payment and securing of

 

 

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1the obligations and anticipated redevelopment project costs
2and such excess funds shall be calculated annually and deemed
3to be "surplus" funds. In the event a municipality only applies
4or pledges a portion of the funds in the special tax allocation
5fund for the payment or securing of anticipated redevelopment
6project costs or of obligations, any such funds remaining in
7the special tax allocation fund after complying with the
8requirements of the application or pledge, shall also be
9calculated annually and deemed "surplus" funds. All surplus
10funds in the special tax allocation fund shall be distributed
11annually within 180 days after the close of the municipality's
12fiscal year by being paid by the municipal treasurer to the
13County Collector, to the Department of Revenue and to the
14municipality in direct proportion to the tax incremental
15revenue received as a result of an increase in the equalized
16assessed value of property in the redevelopment project area,
17tax incremental revenue received from the State and tax
18incremental revenue received from the municipality, but not to
19exceed as to each such source the total incremental revenue
20received from that source. The County Collector shall
21thereafter make distribution to the respective taxing
22districts in the same manner and proportion as the most recent
23distribution by the county collector to the affected districts
24of real property taxes from real property in the redevelopment
25project area.
26    Without limiting the foregoing in this Section, the

 

 

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1municipality may in addition to obligations secured by the
2special tax allocation fund pledge for a period not greater
3than the term of the obligations towards payment of such
4obligations any part or any combination of the following: (a)
5net revenues of all or part of any redevelopment project; (b)
6taxes levied and collected on any or all property in the
7municipality; (c) the full faith and credit of the
8municipality; (d) a mortgage on part or all of the
9redevelopment project; (d-5) repayment of bonds issued
10pursuant to subsection (p-130) of Section 19-1 of the School
11Code; or (e) any other taxes or anticipated receipts that the
12municipality may lawfully pledge.
13    Such obligations may be issued in one or more series
14bearing interest at such rate or rates as the corporate
15authorities of the municipality shall determine by ordinance.
16Such obligations shall bear such date or dates, mature at such
17time or times not exceeding 20 years from their respective
18dates, be in such denomination, carry such registration
19privileges, be executed in such manner, be payable in such
20medium of payment at such place or places, contain such
21covenants, terms and conditions, and be subject to redemption
22as such ordinance shall provide. Obligations issued pursuant to
23this Act may be sold at public or private sale at such price as
24shall be determined by the corporate authorities of the
25municipalities. No referendum approval of the electors shall be
26required as a condition to the issuance of obligations pursuant

 

 

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1to this Division except as provided in this Section.
2    In the event the municipality authorizes issuance of
3obligations pursuant to the authority of this Division, secured
4by the full faith and credit of the municipality, which
5obligations are other than obligations which may be issued
6under home rule powers provided by Article VII, Section 6 of
7the Illinois Constitution, or pledges taxes pursuant to (b) or
8(c) of the second paragraph of this section, the ordinance
9authorizing the issuance of such obligations or pledging such
10taxes shall be published within 10 days after such ordinance
11has been passed in one or more newspapers, with general
12circulation within such municipality. The publication of the
13ordinance shall be accompanied by a notice of (1) the specific
14number of voters required to sign a petition requesting the
15question of the issuance of such obligations or pledging taxes
16to be submitted to the electors; (2) the time in which such
17petition must be filed; and (3) the date of the prospective
18referendum. The municipal clerk shall provide a petition form
19to any individual requesting one.
20    If no petition is filed with the municipal clerk, as
21hereinafter provided in this Section, within 45 30 days after
22the publication of the ordinance, the ordinance shall be in
23effect. But, if within that 45 30 day period a petition is
24filed with the municipal clerk, signed by electors in the
25municipality numbering the greater of (i) 7.5% of the 10% or
26more of the number of registered voters in the municipality; or

 

 

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1(ii) the lesser of 200 of the registered voters or 15% of the
2registered voters, asking that the question of issuing
3obligations using full faith and credit of the municipality as
4security for the cost of paying for redevelopment project
5costs, or of pledging taxes for the payment of such
6obligations, or both, be submitted to the electors of the
7municipality, the corporate authorities of the municipality
8shall call a special election in the manner provided by law to
9vote upon that question, or, if a general, State or municipal
10election is to be held within a period of not less than 30 or
11more than 90 days from the date such petition is filed, shall
12submit the question at the next general, State or municipal
13election. If it appears upon the canvass of the election by the
14corporate authorities that a majority of electors voting upon
15the question voted in favor thereof, the ordinance shall be in
16effect, but if a majority of the electors voting upon the
17question are not in favor thereof, the ordinance shall not take
18effect.
19    The ordinance authorizing the obligations may provide that
20the obligations shall contain a recital that they are issued
21pursuant to this Division, which recital shall be conclusive
22evidence of their validity and of the regularity of their
23issuance.
24    In the event the municipality authorizes issuance of
25obligations pursuant to this Section secured by the full faith
26and credit of the municipality, the ordinance authorizing the

 

 

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1obligations may provide for the levy and collection of a direct
2annual tax upon all taxable property within the municipality
3sufficient to pay the principal thereof and interest thereon as
4it matures, which levy may be in addition to and exclusive of
5the maximum of all other taxes authorized to be levied by the
6municipality, which levy, however, shall be abated to the
7extent that monies from other sources are available for payment
8of the obligations and the municipality certifies the amount of
9said monies available to the county clerk.
10    A certified copy of such ordinance shall be filed with the
11county clerk of each county in which any portion of the
12municipality is situated, and shall constitute the authority
13for the extension and collection of the taxes to be deposited
14in the special tax allocation fund.
15    A municipality may also issue its obligations to refund in
16whole or in part, obligations theretofore issued by such
17municipality under the authority of this Act, whether at or
18prior to maturity, provided however, that the last maturity of
19the refunding obligations may not be later than the dates set
20forth under Section 11-74.4-3.5.
21    In the event a municipality issues obligations under home
22rule powers or other legislative authority the proceeds of
23which are pledged to pay for redevelopment project costs, the
24municipality may, if it has followed the procedures in
25conformance with this division, retire said obligations from
26funds in the special tax allocation fund in amounts and in such

 

 

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1manner as if such obligations had been issued pursuant to the
2provisions of this division.
3    All obligations heretofore or hereafter issued pursuant to
4this Act shall not be regarded as indebtedness of the
5municipality issuing such obligations or any other taxing
6district for the purpose of any limitation imposed by law.
7    The referendum changes made by this amendatory Act of the
8101st General Assembly apply only to ordinances adopted on or
9after the effective date of this amendatory Act of the 101st
10General Assembly.
11(Source: P.A. 100-531, eff. 9-22-17.)
 
12    Section 99. Effective date. This Act takes effect upon
13becoming law.