Full Text of SB2324 102nd General Assembly
SB2324 102ND GENERAL ASSEMBLY |
| | 102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022 SB2324 Introduced 2/26/2021, by Sen. Sara Feigenholtz SYNOPSIS AS INTRODUCED: |
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Creates the Tourism Marketing and Recovery District Law. Provides that a governmental unit (a municipality, county, township, or any combination thereof) may, by ordinance, initiate proceedings to create a tourism marketing and recovery district that would allow a transaction charge to be imposed upon customer transactions entered into by tourism businesses in the district and such charges may be based on revenue, sales, or any other business-related factor deemed appropriate by the governing body. Provides that the transaction charge collected by the governmental unit shall be remitted to a tourism and convention bureau to be used for marketing, promotions, sales efforts, events, and other activities that are reasonably related to the enhancement of tourism. Provides for the creation of a district plan, public hearing requirements, requirements of an ordinance forming a district, annual reports, modification of a district plan, expiration and renewal, termination, and challenges to the validity of the creation of the district or transaction charges. Defines terms.
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| 1 | | AN ACT concerning local government.
| 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 | | Tourism Marketing and Recovery District Law. | 6 | | Section 5. Definitions.
As used in this Law: | 7 | | "Baseline" means to the existing level of services, or | 8 | | funding for services, provided by the governmental unit prior | 9 | | to creation of a district. | 10 | | "Benefit zone" means a zone within a district established | 11 | | by the governing body based upon the degree of benefit derived | 12 | | from the services to be provided within the zone and in which a | 13 | | governing body may impose different transaction charges from | 14 | | other zones relative to the degree of benefit intended to be | 15 | | provided. | 16 | | "Business owner" means any person recognized by the | 17 | | governmental unit as the owner of a tourism business subject | 18 | | to a transaction charge and may include an owner's authorized | 19 | | representative. | 20 | | "Clerk" means the clerk or similar administrative | 21 | | personnel of the governing body. | 22 | | "District" means a tourism marketing and recovery district | 23 | | created pursuant to this Law. |
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| 1 | | "Governing body" means the legislative body of the | 2 | | governmental unit. | 3 | | "Governmental unit" means any municipality, county, or | 4 | | township, or any combination thereof. | 5 | | "Improvement" means the acquisition, construction, | 6 | | installation, or maintenance of any tangible property with an | 7 | | estimated useful life of 5 years or more that is reasonably | 8 | | related to the enhancement of tourism. | 9 | | "Services" means marketing, promotions, sales efforts, | 10 | | events, and other activities that are reasonably related to | 11 | | the enhancement of tourism. | 12 | | "Tourism and convention bureau" means a local tourism and | 13 | | convention bureau that is: (i) either a unit of local | 14 | | government or incorporated as a nonprofit organization; (ii) | 15 | | operating with a paid, full-time staff whose sole purpose is | 16 | | to promote tourism in the designated service area; and (iii) | 17 | | recognized by the Department of Commerce and Economic | 18 | | Opportunity as a certified local tourism and convention bureau | 19 | | entitled to receive State tourism grant funds. | 20 | | "Tourism business" means all business establishments which | 21 | | provide tourism or tourist-related goods or services. | 22 | | "Transaction charge" means a special charge imposed upon | 23 | | customer transactions entered into by tourism businesses in | 24 | | the district and may be based on revenue, sales, or any other | 25 | | business-related factor deemed appropriate by the governing | 26 | | body, including, but not limited to, a fixed rate per occupied |
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| 1 | | hotel room per night.
| 2 | | Section 10. Ordinance of intent to create a district. | 3 | | (a) A governing body may initiate proceedings to create a | 4 | | district by adopting an ordinance expressing its intention to | 5 | | create the district. The ordinance shall include: | 6 | | (1) The name of the district. | 7 | | (2) The boundaries of the district, which need not be | 8 | | contiguous. | 9 | | (3) The type or types of tourism businesses that will | 10 | | pay a transaction charge. | 11 | | (4) The initial and maximum transaction charge rates | 12 | | to be paid by each category of tourism business in | 13 | | sufficient detail for each business owner to estimate the | 14 | | amount of transaction charges each tourism business would | 15 | | pay. | 16 | | (5) If a specific term is proposed, the proposed term | 17 | | of the district. | 18 | | (6) A brief description of the services and | 19 | | improvements proposed to be provided. | 20 | | (7) The time and place of a public hearing on the | 21 | | proposed district. | 22 | | (8) A statement that any tourism business proposed to | 23 | | be subject to a transaction charge has the opportunity to | 24 | | be heard at the hearing regarding the district formation | 25 | | and an opportunity to file objections to the district |
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| 1 | | formation with the clerk at any time prior to the | 2 | | conclusion of the public hearing. | 3 | | (b) A governmental unit may include territory or tourism | 4 | | businesses within the jurisdiction of another governmental | 5 | | unit to the extent that the governing body of the other | 6 | | governmental unit consents. | 7 | | Section 15. District plan. | 8 | | (a) A district plan shall be prepared before the public | 9 | | hearing on the proposed district and include the following: | 10 | | (1) The estimated annual budget. The budget may | 11 | | include specific allocations to expedite the recovery of | 12 | | the tourism industry. | 13 | | (2) The initial and maximum transaction charge rates | 14 | | to be paid by each category of tourism business in | 15 | | sufficient detail for each business owner to estimate the | 16 | | amount of transaction charges each tourism business would | 17 | | pay. | 18 | | (3) A statement that, after the first imposition of a | 19 | | transaction charge within the district, the transaction | 20 | | charge may continue to be imposed in subsequent years | 21 | | without the requirement of an additional public hearing if | 22 | | the transaction charge rate does not exceed the rate | 23 | | specified in the district plan. | 24 | | (4) The frequency and manner of collecting the | 25 | | transaction charges. |
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| 1 | | (5) The manner of contesting the calculation of any | 2 | | specific transaction charge by a specific tourism | 3 | | business. | 4 | | (6) The amount or rate of penalties and interest | 5 | | applicable to delinquent payments, if any, and the method | 6 | | of collection of penalties and interest. | 7 | | (7) The nature of the proposed services and | 8 | | improvements to be provided. | 9 | | (8) The existing baseline and the baseline the | 10 | | governmental unit will continue to provide. | 11 | | (9) A map of the district boundaries, which need not | 12 | | be contiguous nor include every tourism business. | 13 | | (10) The specific categories of tourism businesses | 14 | | that will pay a transaction charge.
| 15 | | (11) A map showing the district boundaries and benefit | 16 | | zones, if any. | 17 | | (12) A list of the tourism businesses to be subject to | 18 | | a transaction charge, including the address of each | 19 | | business. | 20 | | (13) A statement that a tourism business may pass a | 21 | | transaction charge onto customers, and the specific title | 22 | | to be used when the transaction charge is disclosed to the | 23 | | customer. | 24 | | (14) The name and general structure of the tourism and | 25 | | convention bureau. | 26 | | (b) For purposes of transaction charges in a district |
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| 1 | | plan, the governing body may define categories of businesses | 2 | | based upon the degree of benefit each will derive from the | 3 | | services and improvements and may impose a different | 4 | | transaction charge on each category relative to the degree of | 5 | | benefit provided as the governing body may determine. | 6 | | (c) The district plan may also include a statement | 7 | | authorizing the issuance of bonds or other debt instruments in | 8 | | accordance with the provisions of general laws in the amounts | 9 | | and for the periods necessary to finance needed improvements | 10 | | within the proposed tourism and recovery district. | 11 | | Section 20. Public hearing.
| 12 | | (a) The governing body shall hold a public hearing on the | 13 | | proposed district. Notice of the public hearing shall be given | 14 | | by the United States mails addressed to the owner of each | 15 | | tourism business proposed to pay a transaction charge, as | 16 | | shown on the governmental unit's most recent records, and | 17 | | shall include the ordinance regarding the governmental unit's | 18 | | intent to establish the district. Such notice shall be mailed | 19 | | not less than 30 days prior to the public hearing. | 20 | | (b) At the hearing, the governing body shall consider | 21 | | public testimony regarding the proposed district. Any tourism | 22 | | business proposed to be subject to a transaction charge may | 23 | | submit a written objection to the clerk at any time prior to | 24 | | the conclusion of the public hearing. If written objections | 25 | | are received from tourism businesses that would pay more than |
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| 1 | | 50% of the proposed transaction charges in the proposed | 2 | | district, no further proceedings to form the district may be | 3 | | undertaken by the governmental unit for a period of one year. | 4 | | The hearing may be adjourned to another date without further | 5 | | notice other than a motion to be entered upon the minutes | 6 | | fixing the time and place it will reconvene. | 7 | | (c) At the public hearing, the governing body may remove | 8 | | territory or tourism businesses from the district, reduce a | 9 | | transaction charge rate, or make administrative clarifications | 10 | | to the district plan. | 11 | | (d) If, at the conclusion of the public hearing, the clerk | 12 | | determines that all of the written objections submitted do not | 13 | | represent tourism businesses that would pay more than 50% of | 14 | | the proposed transaction charges, the governing body may adopt | 15 | | an ordinance forming the district.
| 16 | | Section 25. Formation ordinance.
If written protests | 17 | | submitted do not represent tourism businesses that would pay | 18 | | more than 50% of the proposed transaction charges, the | 19 | | governing body may adopt an ordinance forming the district. | 20 | | The ordinance shall contain: | 21 | | (1) A statement regarding the date of adoption of the | 22 | | ordinance regarding the governmental unit's intent to | 23 | | establish the district. | 24 | | (2) A reference to the district plan, which shall be | 25 | | on file and available for inspection with the clerk. |
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| 1 | | (3) A determination as to the total amount of any | 2 | | written protests received from tourism businesses to be | 3 | | subject to a transaction charge. | 4 | | (4) The name of the district. | 5 | | (5) The effective date of the transaction charge. | 6 | | (6) If a specific term is intended, the term of the | 7 | | district. | 8 | | (7) The transaction charge rate to be paid by each | 9 | | type of tourism business in sufficient detail for each | 10 | | business owner to estimate the amount of transaction | 11 | | charge their business would pay. | 12 | | (8) If a specific term is proposed, the proposed term | 13 | | of the district. | 14 | | (9) The name of the tourism and convention bureau. | 15 | | (10) Confirmation that no further appropriation action | 16 | | by the governmental unit will be necessary for the ongoing | 17 | | collection from tourism businesses of transaction charges | 18 | | and the remitting of such transaction charges for the | 19 | | benefit of the tourism and convention bureau throughout | 20 | | the term of the district. | 21 | | (11) Authorization for the governmental unit to remit | 22 | | the collected transaction charges to the tourism and | 23 | | convention bureau in exchange for the tourism and | 24 | | convention bureau providing services. | 25 | | Section 30. Business owners; tourism and convention |
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| 1 | | bureaus.
| 2 | | (a) A governmental unit may determine if an owner is a | 3 | | business owner through use of the governmental unit's records, | 4 | | by the business owner's authorized representative, or by any | 5 | | other means. The governmental unit has no obligation to obtain | 6 | | other information as to the ownership of a tourism business | 7 | | and the governmental unit's determination of ownership shall | 8 | | be final and conclusive for purposes of this Law. | 9 | | (b) An tourism and convention bureau shall not be | 10 | | considered a public agency or entity for any purpose. | 11 | | Section 35. Annual report.
Each year, the tourism and | 12 | | convention bureau shall submit a report of activities and | 13 | | expenditures to the governing body. The report shall be | 14 | | submitted no later than 30 days prior to the anniversary of the | 15 | | transaction charge start date. The report shall include: | 16 | | (1) A summary of the activities provided in the | 17 | | current year to date. | 18 | | (2) A summary of the expenditures for the current year | 19 | | to date. | 20 | | (3) The amount of any revenue to be carried over from | 21 | | prior years. | 22 | | (4) A list of the directors and officers of the | 23 | | tourism and convention bureau. | 24 | | (5) A list of the accomplishments attributable to the | 25 | | district.
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| 1 | | Section 40. Transaction charges; collection and | 2 | | remittance.
Transaction charges paid by a tourism business | 3 | | shall be collected by the governmental unit. On a prompt | 4 | | basis, the collected transaction charges shall be remitted by | 5 | | the governmental unit to the tourism and convention bureau in | 6 | | accordance with the district plan and the formation ordinance. | 7 | | During any period that the governmental unit may hold such | 8 | | collected transaction charges, the governmental unit shall at | 9 | | all times maintain the collected transaction charges in a | 10 | | specially-designated fund segregated from other funds; except, | 11 | | for the adoption of the formation ordinance, the governmental | 12 | | unit may provide for the ongoing retention of an amount not to | 13 | | exceed 2% of the total amount of transaction charges collected | 14 | | to defray (in whole or in part) the governmental unit's | 15 | | administrative costs related to the district. | 16 | | Collected transaction charges held by the governmental | 17 | | unit may not be commingled with other governmental unit funds.
| 18 | | Section 45. Modification.
| 19 | | (a) Upon the written request from the tourism and | 20 | | convention bureau, the governmental unit may notice a public | 21 | | hearing under Section 20 on modifications to a district for | 22 | | any of the following modifications: | 23 | | (1) In any year other than that initial year, a | 24 | | transaction charge rate is proposed to exceed that |
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| 1 | | described in the district plan. | 2 | | (2) The boundaries of a district are changed. | 3 | | (3) There is a change in designation of tourism | 4 | | businesses subject to the transaction charge and any | 5 | | tourism business pays a new or increased transaction | 6 | | charge. | 7 | | (b) Upon the written request from the tourism and | 8 | | convention bureau, the
governmental unit may make any | 9 | | modifications not described in subsection (a) after holding at | 10 | | least one public hearing. | 11 | | (c) Any modification shall be reflected in an updated | 12 | | district plan to be on file and available for inspection with | 13 | | the clerk.
| 14 | | Section 50. Renewal after expiration.
If a formation | 15 | | ordinance under Section 25 defines a term for the district and | 16 | | the district's term expires, the district may be renewed by | 17 | | creating a new district plan pursuant to Section 15 and | 18 | | following the procedures detailed in Sections 20, 25, and 30.
| 19 | | Upon expiration when a district is not renewed, any funds | 20 | | remaining shall be used in accordance with the district plan | 21 | | or refunded to the tourism businesses in equal proportion to | 22 | | the amount of transaction charges paid by each tourism | 23 | | business. | 24 | | Section 55. Termination.
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| 1 | | (a) The district shall be terminated by the governing body | 2 | | if written objections are received from tourism businesses | 3 | | that, in the most recently completed fiscal year, paid (or in | 4 | | the case of a district that has not completed a fiscal year | 5 | | following the initial imposition of the transaction charges, | 6 | | would be expected to pay) more than 50% of the transaction | 7 | | charges. Written objections must be signed by the business | 8 | | owner and dated within 30 days after their submission to the | 9 | | clerk. A public hearing shall be held on the written objection | 10 | | within 30 days after the clerk's receipt of the written | 11 | | objection. Written objections may be submitted once per year | 12 | | in the 30 days following the anniversary of district | 13 | | formation. | 14 | | (b) The district may be terminated by the governing body | 15 | | if the governing body finds that there has been a violation of | 16 | | law, malfeasance, or misappropriation of funds. After holding | 17 | | a noticed hearing, the governing body shall notify the tourism | 18 | | and convention bureau to remedy the findings of the governing | 19 | | body within 30 days. Such public hearing shall be held and | 20 | | notice given to the tourism businesses and the tourism and | 21 | | convention bureau not less than 30 days prior to the hearing. | 22 | | If the tourism and convention bureau does not remedy the
| 23 | | violations within 30 days of notification, or the governing | 24 | | body has not approved a plan to remedy the violation, at the | 25 | | conclusion of a hearing conducted under this Section, the | 26 | | governing body may vote to terminate the district. |
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| 1 | | (c) Upon termination, any funds remaining shall be used in | 2 | | accordance with the district plan or refunded to the tourism | 3 | | businesses in equal proportion to the amount of transaction | 4 | | charges paid by each tourism business.
| 5 | | Section 60. Contesting validity.
The validity of a | 6 | | transaction charge imposed or a district created under this | 7 | | Law may not be contested in any action or proceeding unless the | 8 | | action or proceeding is commenced within 30 days after the | 9 | | formation ordinance is adopted. Any appeal from a final | 10 | | judgment in an action or proceeding shall be concluded within | 11 | | 30 days after the entry of judgment.
| 12 | | Section 65. No limitation on home rule.
The powers granted | 13 | | to governmental units in this Law shall not be construed as a | 14 | | limitation on the powers of a home rule unit granted by Article | 15 | | VII of the Illinois Constitution.
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