093_SB1172

 
                                     LRB093 11062 SJM 11766 b

 1        AN ACT concerning banking.

 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 program. There is
 7    hereby  created  a  banking development district program, the
 8    purpose of which is to encourage the establishment of banking
 9    branches in geographic locations where there is the  greatest
10    need  for  banking  services.  The  State Treasurer shall, in
11    consultation with the Office of Banks and Real Estate,  adopt
12    rules  in  accordance  with  the Administrative Procedure Act
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. As used in this Act:
30        "Improvement" does not include ordinary  maintenance  and
 
                            -2-      LRB093 11062 SJM 11766 b
 1    repairs.
 2        "Bank"  means  a state bank, national bank, savings bank,
 3    federal savings bank, savings and loan  association,  federal
 4    savings and loan association, credit union, or trust company.
 5        "Local government" means a county if the proposed banking
 6    branch  is in an unincorporated area or a municipality if the
 7    proposed banking branch is in an incorporated area.

 8        Section 15. Application. The governing board of  a  local
 9    government,  in  conjunction  with  a  bank,  may  submit  an
10    application  to  the State Treasurer for the designation of a
11    banking development district. The boundaries of the  proposed
12    banking  development district shall include property on which
13    the bank plans to make improvements to  establish  a  banking
14    branch.  The  application shall include the legal description
15    of the property to be designated.
16        The State Treasurer shall issue a  determination  on  the
17    application  within  60 days after receiving the application.
18    If an application is  approved,  the  State  Treasurer  shall
19    transmit  notification  of  the  approval  and  a copy of all
20    application materials to the applicants, the Commissioner  of
21    the  Office of Banks and Real Estate, the Governor, the State
22    Comptroller, the Director of Commerce and Community  Affairs,
23    the  President  of  the  Senate,  the Speaker of the House of
24    Representatives, and the clerk of the  county  in  which  the
25    property is located.

26        Section  20.  Existing  facilities.  Notwithstanding  any
27    other  provision of law, an application may be submitted by a
28    local government in conjunction with a bank that has  already
29    opened  a branch within the area of the proposed district. In
30    considering the criteria  authorized  under  Section  5,  the
31    State  Treasurer  must  also take into account the importance
32    and benefits of preserving the banking  services  offered  by
 
                            -3-      LRB093 11062 SJM 11766 b
 1    the existing branch.

 2        Section  25.  Abatement under the Property Tax Code. Upon
 3    designation of the banking development district by the  State
 4    Treasurer,  the  property  of a bank located within a banking
 5    development district may be  eligible  for  a  tax  abatement
 6    under Section 18-167 of the Property Tax Code.

 7        Section  905.  The Property Tax Code is amended by adding
 8    Section 18-167 as follows:

 9        (35 ILCS 200/18-167 new)
10        Sec. 18-167. Abatement of taxes in a banking district.
11        (a)  Definitions. For purposes of  this  Section,  "bank"
12    means  that  term  as  defined  in  the  Banking  Development
13    District Act.
14        (b)  Any  taxing  district,  upon  a majority vote of its
15    governing authority, may,  after  the  determination  of  the
16    assessed  valuation  of  its  property, adopt an ordinance or
17    resolution ordering the clerk of the county  or  counties  in
18    which  the  taxing  district is located to abate a portion of
19    the taxing district's taxes on property of  a  bank  that  is
20    used  as  a banking branch in an area designated as a banking
21    development district under the Banking  Development  District
22    Act.  Before ordering the abatement, the taxing district must
23    hold a public hearing regarding the proposed abatement.
24             (1)  The base amount of the abatement shall  be  the
25        taxes arising from the new improvements or the renovation
26        or  rehabilitation  of  existing  improvements  since the
27        designation of the banking development district, based on
28        the equalized assessed  value  attributable  to  the  new
29        improvements  or  the  renovation  or  rehabilitation  of
30        existing  improvements  for  the  first  year  they  were
31        assessed  as  completed as of January 1 of that tax year.
 
                            -4-      LRB093 11062 SJM 11766 b
 1        Taxes attributable to  increases  in  assessment  due  to
 2        ordinary maintenance and repair shall not be abated under
 3        this Section.
 4             A  copy  of  an  abatement  order adopted under this
 5        Section shall be delivered to the county clerk and to the
 6        board of review not later than July 1 of  the  assessment
 7        year  to  be  first  affected  by  the  order.  If  it is
 8        delivered on or after that date, it will first affect the
 9        taxes extended on the assessment of the  following  year.
10        The  board  of  review  shall,  in  the first year of the
11        abatement, notify the bank to be affected and the  taxing
12        district  granting  the  abatement of the list of parcels
13        affected by an  abatement  under  this  Section  and  the
14        assessed  value  attributable  to the new improvements or
15        the renovation or rehabilitation of existing improvements
16        for the first year they were assessed as completed as  of
17        January  1  of that tax year. The affected bank or taxing
18        district may file  a  complaint  regarding  the  list  of
19        parcels  and computation within 15 days after the mailing
20        of the notification, and shall be given an opportunity to
21        be heard. The board of review shall, in the first year of
22        the abatement, upon delivering the  assessment  books  to
23        the county clerk, also deliver a list of parcels affected
24        by an abatement under this Section and the assessed value
25        attributable  to new improvements or to the renovation or
26        rehabilitation of existing  improvements  for  the  first
27        year  they  were assessed as completed as of January 1 of
28        that tax year.
29             The county clerk shall  abate  the  base  amount  as
30        follows:
31               YEAR OF                   PERCENTAGE OF BASE
32              ABATEMENT                    AMOUNT ABATED
33                   1                            50%
34                   2                            45%
 
                            -5-      LRB093 11062 SJM 11766 b
 1                   3                            40%
 2                   4                            35%
 3                   5                            30%
 4                   6                            25%
 5                   7                            20%
 6                   8                            15%
 7                   9                            10%
 8                  10                             5%
 9             (ii)  The  governing  authority of a taxing district
10        may abate the property taxes on a banking branch that was
11        already  in  existence  when  the   banking   development
12        district   was  created  under  the  Banking  Development
13        District Act. The county clerk shall abate the  taxes  in
14        an  amount  that  shall  be  determined  by the governing
15        authority of the taxing district. The abatement shall not
16        exceed a period of 10 years in duration and  50%  of  the
17        taxes attributable to the improvements in amount.
18        (c)  If  property  approved  for  an abatement under this
19    Section ceases to be used as a banking branch, that  property
20    is no longer eligible for abatement of taxes. If an abatement
21    is discontinued under this Section, the taxing district shall
22    notify  the county clerk of the discontinuation in writing no
23    later than July 1 of the assessment year to be first affected
24    by the change. If an abatement  of  taxes  is  again  allowed
25    under  this Section for the same property, the property shall
26    be eligible for  only  that  portion  of  the  abatement  not
27    already used.

28        Section  99.  Effective  date. This Act takes effect upon
29    becoming law.