Illinois 2023-2024 Regular Session

Illinois Senate Bill SB2164 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2164 Introduced 2/10/2023, by Sen. Sara Feigenholtz SYNOPSIS AS INTRODUCED: New Act Creates the Business Improvement District Law. Provides for the establishment of business improvement districts by a county or municipality by ordinance after petition of a percentage of property owners or business owners, creation of a district plan, notice, and hearings. Provides that a business improvement district may impose district charges on property owners whose real properties are located within the business improvement district or on businesses within a business improvement district. Provides that the county or municipality shall contract with a district management association to administer or implement activities and improvements specified in the district plan. Contains provisions relating to district plans, formation of a district, district boundaries, issuance of bonds, terms and renewal of districts, amendment to district plans, governance of the district, reports of a district management association, dissolution, and legislative purpose. Limits the concurrent exercise of home rule powers. Defines terms. Effective 120 days after becoming law. LRB103 30772 AWJ 57256 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2164 Introduced 2/10/2023, by Sen. Sara Feigenholtz SYNOPSIS AS INTRODUCED: New Act New Act Creates the Business Improvement District Law. Provides for the establishment of business improvement districts by a county or municipality by ordinance after petition of a percentage of property owners or business owners, creation of a district plan, notice, and hearings. Provides that a business improvement district may impose district charges on property owners whose real properties are located within the business improvement district or on businesses within a business improvement district. Provides that the county or municipality shall contract with a district management association to administer or implement activities and improvements specified in the district plan. Contains provisions relating to district plans, formation of a district, district boundaries, issuance of bonds, terms and renewal of districts, amendment to district plans, governance of the district, reports of a district management association, dissolution, and legislative purpose. Limits the concurrent exercise of home rule powers. Defines terms. Effective 120 days after becoming law. LRB103 30772 AWJ 57256 b LRB103 30772 AWJ 57256 b A BILL FOR
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2164 Introduced 2/10/2023, by Sen. Sara Feigenholtz SYNOPSIS AS INTRODUCED:
3	3	New Act New Act
4	4	New Act
5	5	Creates the Business Improvement District Law. Provides for the establishment of business improvement districts by a county or municipality by ordinance after petition of a percentage of property owners or business owners, creation of a district plan, notice, and hearings. Provides that a business improvement district may impose district charges on property owners whose real properties are located within the business improvement district or on businesses within a business improvement district. Provides that the county or municipality shall contract with a district management association to administer or implement activities and improvements specified in the district plan. Contains provisions relating to district plans, formation of a district, district boundaries, issuance of bonds, terms and renewal of districts, amendment to district plans, governance of the district, reports of a district management association, dissolution, and legislative purpose. Limits the concurrent exercise of home rule powers. Defines terms. Effective 120 days after becoming law.
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8	8	A BILL FOR
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10	10	SB2164 LRB103 30772 AWJ 57256 b
11	11	1 AN ACT concerning local government.
12	12	2 Be it enacted by the People of the State of Illinois,
13	13	3 represented in the General Assembly:
14	14	4 Section 1. Short title. This Act may be cited as the
15	15	5 Business Improvement District Law.
16	16	6 Section 5. Purpose. The General Assembly finds that it is
17	17	7 in the interest of the State of Illinois to promote the
18	18	8 economic revitalization and physical maintenance of business
19	19	9 districts in order to create jobs, attract new businesses,
20	20	10 retain existing businesses, reduce crime, and spur new
21	21	11 investments. The General Assembly finds that this purpose may
22	22	12 best be accomplished by allowing business improvement
23	23	13 districts to fund business-related activities and improvements
24	24	14 through the levy of district charges upon the owners of real
25	25	15 property that receive benefits from those activities and
26	26	16 improvements.
27	27	17 Section 10. Definitions. As used in this Act:
28	28	18 "Activities" means services provided for the purpose of
29	29	19 conferring benefit upon owners of property located within a
30	30	20 business improvement district, including, but not limited to:
31	31	21 (1) promotion of events taking place within the
32	32	22 business improvement district;
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36	36	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2164 Introduced 2/10/2023, by Sen. Sara Feigenholtz SYNOPSIS AS INTRODUCED:
37	37	New Act New Act
38	38	New Act
39	39	Creates the Business Improvement District Law. Provides for the establishment of business improvement districts by a county or municipality by ordinance after petition of a percentage of property owners or business owners, creation of a district plan, notice, and hearings. Provides that a business improvement district may impose district charges on property owners whose real properties are located within the business improvement district or on businesses within a business improvement district. Provides that the county or municipality shall contract with a district management association to administer or implement activities and improvements specified in the district plan. Contains provisions relating to district plans, formation of a district, district boundaries, issuance of bonds, terms and renewal of districts, amendment to district plans, governance of the district, reports of a district management association, dissolution, and legislative purpose. Limits the concurrent exercise of home rule powers. Defines terms. Effective 120 days after becoming law.
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67	67	1 (2) furnishing of music;
68	68	2 (3) promotion of tourism within the business
69	69	3 improvement district;
70	70	4 (4) marketing and economic development, including
71	71	5 retail retention and recruitment;
72	72	6 (5) providing security, sanitation, graffiti removal,
73	73	7 street and sidewalk cleaning, and other services
74	74	8 supplemental to base services; and
75	75	9 (6) other services provided for the purpose of
76	76	10 conferring benefit upon owners of property located within
77	77	11 the business improvement district.
78	78	12 "Activities" does not include lobbying, as that term is
79	79	13 defined in Section 2 of the Lobbyist Registration Act and
80	80	14 Chapter 2-156 of the Municipal Code of Chicago.
81	81	15 "Base services" means services provided by any public
82	82	16 entity, or paid for wholly or in part out of public funds,
83	83	17 generally throughout a governmental unit to real property
84	84	18 within the governmental unit.
85	85	19 "Business improvement district" means a contiguous area
86	86	20 within a governmental unit in which activities, improvements,
87	87	21 or activities and improvements are provided in addition to
88	88	22 base services. Territory shall be considered contiguous for
89	89	23 purposes of this Act even though certain completely surrounded
90	90	24 portions of the territory are excluded from the business
91	91	25 improvement district. For purposes of this Act, parcels are
92	92	26 within the same contiguous area if they touch or join one
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103	103	1 another in a reasonably substantial physical sense or if they
104	104	2 meet the criteria for annexation to a municipality under
105	105	3 Section 7-1-1 of the Illinois Municipal Code.
106	106	4 "Clerk" means the county clerk or municipal clerk, as the
107	107	5 case may be.
108	108	6 "District charge" means a charge levied on behalf of a
109	109	7 business improvement district for the purpose of acquiring,
110	110	8 constructing, installing, or maintaining improvements or
111	111	9 providing activities that will confer special benefits upon
112	112	10 assessed property owners within the business improvement
113	113	11 district. District charges levied for the purpose of
114	114	12 conferring special benefits upon assessed property owners
115	115	13 within a business improvement district are not taxes for the
116	116	14 general benefit of a governmental unit, even if real property
117	117	15 or persons not charged receive incidental or collateral
118	118	16 beneficial effects.
119	119	17 "District management association" means a private or
120	120	18 not-for-profit entity that enters into a contract with a
121	121	19 governmental unit to administer or implement activities and
122	122	20 improvements specified in the district plan for a business
123	123	21 improvement district. A district management association shall
124	124	22 not be considered a public entity for any purpose.
125	125	23 "District plan" means a proposal for a business
126	126	24 improvement district that contains the information described
127	127	25 in Section 15.
128	128	26 "Downtown area" has the meaning given to that term in
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139	139	1 Section 17-1-1500-A of the Chicago Zoning Ordinance.
140	140	2 "Governing body" means the corporate authorities of a
141	141	3 municipality or a county board or board of county
142	142	4 commissioners, as the case may be.
143	143	5 "Governmental unit" means a county or municipality, as the
144	144	6 case may be.
145	145	7 "Improvements" means the acquisition, construction,
146	146	8 installation, or maintenance of any tangible property provided
147	147	9 for the purpose of conferring benefit upon assessed property
148	148	10 owners located within a business improvement district.
149	149	11 "Property owner" or "owner" means the record owner of fee
150	150	12 simple interest in a real property subject to assessment,
151	151	13 which will be deemed to be the person or entity that pays
152	152	14 property taxes on the real property according to county
153	153	15 records, unless another person or entity establishes to the
154	154	16 governmental unit by clear and convincing evidence that they
155	155	17 are the record owner of the fee simple interest.
156	156	18 "Public entity" means (i) the State or any agency, board,
157	157	19 or commission of the State, (ii) any school district, or (iii)
158	158	20 any unit of local government.
159	159	21 Section 15. District plan.
160	160	22 (a) A business improvement district established under this
161	161	23 Act is subject to and governed by a district plan, as may be
162	162	24 amended as set forth in Section 65, and filed with the clerk.
163	163	25 (b) The district plan shall include, but need not be
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174	174	1 limited to, the following:
175	175	2 (1) The name of the business improvement district.
176	176	3 (2) A map of the business improvement district in
177	177	4 sufficient detail to allow a property owner to reasonably
178	178	5 determine whether a parcel of real property is located
179	179	6 within the boundaries of the business improvement
180	180	7 district.
181	181	8 (3) A description of the boundaries of the business
182	182	9 improvement district in a manner sufficient to identify
183	183	10 the real property included in the business improvement
184	184	11 district.
185	185	12 (4) The initial term of the business improvement
186	186	13 district.
187	187	14 (5) A statement identifying the activities and
188	188	15 improvements within the business improvement district that
189	189	16 may be provided from time to time for which property
190	190	17 owners will be charged and that the activities and
191	191	18 improvements that are provided may vary from year to year
192	192	19 and may differ by class.
193	193	20 (6) A statement identifying the maximum amount of the
194	194	21 annual district charge to be levied and that the maximum
195	195	22 amount of the annual district charge levied may vary from
196	196	23 year to year.
197	197	24 (7) A statement identifying the maximum amount of
198	198	25 total district charges to be levied for the term of the
199	199	26 business improvement district.
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210	210	1 (8) A statement identifying the proposed source or
211	211	2 sources of financing, including the proposed method and
212	212	3 basis of levying an assessment, in sufficient detail to
213	213	4 allow each property owner to calculate (i) the estimated
214	214	5 amount of the district charge to be levied upon the
215	215	6 property owner annually, (ii) the maximum amount of the
216	216	7 district charge that could be levied upon the property
217	217	8 owner annually, and (iii) the total amount of the district
218	218	9 charges that could be levied upon the property owner for
219	219	10 the term of the business improvement district. The
220	220	11 statement shall specify whether bonds may be issued to
221	221	12 finance activities and improvements, and the anticipated
222	222	13 term for the bonds.
223	223	14 (9) Any interest or penalties that may be imposed for
224	224	15 delinquent payment of a district charge.
225	225	16 (10) A list of the real property subject to a district
226	226	17 charge, and a statement of any proposed classifications.
227	227	18 The list shall include the permanent tax index number of
228	228	19 each parcel located within the business improvement
229	229	20 district.
230	230	21 (11) A statement of the real property classes exempt
231	231	22 from charge, and a list of the real property to be
232	232	23 exempted.
233	233	24 (12) A statement identifying the proposed procedures
234	234	25 for renewal, subject to the limitations under Section 60.
235	235	26 (13) A statement identifying the district management
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246	246	1 association, the district management association's
247	247	2 governance structure, and the district management
248	248	3 association's anticipated liability insurance coverage
249	249	4 limits.
250	250	5 (14) A statement identifying how unspent revenue
251	251	6 collected from district charges may be allocated, carried
252	252	7 over year to year, or returned to the property owners at
253	253	8 the end of each year by applying the same method and basis
254	254	9 that was used to calculate the district charges levied
255	255	10 throughout the term of the business improvement district.
256	256	11 (15) The manner by which a property owner may contest
257	257	12 the calculation of a specific district charge.
258	258	13 (16) Any proposed rules and regulations to be applied
259	259	14 to the business improvement district.
260	260	15 Section 20. Assessments and district charges.
261	261	16 (a) Each district plan shall provide for an assessment
262	262	17 levied upon property owners owning property within the
263	263	18 business improvement district upon which district charges are
264	264	19 based. District charges shall be levied at a rate or amount
265	265	20 sufficient to produce revenues required to provide the
266	266	21 activities and improvements specified in the district plan.
267	267	22 The revenue from the levy of district charges within a
268	268	23 business improvement district shall not be used to provide
269	269	24 services outside the business improvement district or for any
270	270	25 purpose other than the purposes set forth in the ordinance
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281	281	1 adopting the district plan.
282	282	2 (b) District charges shall be levied on the basis of the
283	283	3 estimated benefit to the real property located within the
284	284	4 business improvement district. In determining the assessment,
285	285	5 the district management association may reasonably classify
286	286	6 real property for purposes of determining benefit if so
287	287	7 provided in the district plan. The classification may be based
288	288	8 on various factors, including, as applicable, square footage,
289	289	9 geography, or any other factor reasonably relating to the
290	290	10 benefit received. Certain classes may be specified in the
291	291	11 district plan as exempted from being charged if they would not
292	292	12 receive a special benefit from the activities and
293	293	13 improvements. District charges need not be imposed on
294	294	14 different classes on the same basis or the same rate.
295	295	15 (c) District charges levied upon property owners owning
296	296	16 property within the business improvement district may be
297	297	17 billed and collected as follows:
298	298	18 (1) a county that has established a business
299	299	19 improvement district may include district charges in the
300	300	20 regular property tax bills of the county. The county
301	301	21 collector of the county in which a business improvement
302	302	22 district is located may also bill and collect district
303	303	23 charges with the regular property tax bills of the county
304	304	24 if requested by a municipality within its jurisdiction
305	305	25 that has established a business improvement district;
306	306	26 however, no municipality is required to make this request
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317	317	1 of its county collector. If the county collector agrees to
318	318	2 bill and collect district charges with the regular
319	319	3 property tax bills of the county, then the applicable
320	320	4 district plan shall be filed with the county collector and
321	321	5 the annual amount due as set forth by the district
322	322	6 management association shall become due in installments at
323	323	7 the times property taxes shall become due in accordance
324	324	8 with each regular property tax bill payable during the
325	325	9 year in which the assessment comes due; or
326	326	10 (2) if the county collector does not agree to bill and
327	327	11 collect district charges with the regular property tax
328	328	12 bills of the county or the governmental unit that has
329	329	13 established the business improvement district declines to
330	330	14 request the county collector to do so, then the
331	331	15 governmental unit shall bill and collect the assessments,
332	332	16 either directly or through a third party, and the annual
333	333	17 amount due as set forth by the district management
334	334	18 association in accordance with the district plan shall
335	335	19 become due in installments on or about the times property
336	336	20 taxes would otherwise become due in accordance with each
337	337	21 regular property tax bill payable during the year in which
338	338	22 the assessment comes due.
339	339	23 (d) District charges shall be payable at the times and in
340	340	24 the manner set forth in the applicable bill. Delinquent
341	341	25 payments for district charges levied pursuant to this Act may
342	342	26 be charged interest and penalties as may be set forth in the
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353	353	1 district plan.
354	354	2 (e) District charges shall promptly, and in no case later
355	355	3 than 90 days after collection, be remitted by the governmental
356	356	4 unit to the district management association.
357	357	5 Section 25. Boundaries of business improvement district.
358	358	6 (a) The boundaries of a proposed business improvement
359	359	7 district shall not overlap with the boundaries of another
360	360	8 business improvement district or with the boundaries of a
361	361	9 special service area established pursuant to the Special
362	362	10 Service Area Tax Law.
363	363	11 (b) The boundaries of any proposed business improvement
364	364	12 district may overlap with the boundaries of a tax increment
365	365	13 financing district.
366	366	14 (C) A county may establish a business improvement district
367	367	15 within a municipality or municipalities only when the
368	368	16 municipality or municipalities consent to the establishment of
369	369	17 the business improvement district. A municipality may
370	370	18 establish a business improvement district within the
371	371	19 municipality and the unincorporated area of a county or within
372	372	20 another municipality only when the county or other
373	373	21 municipality consents to the establishment of the business
374	374	22 improvement district.
375	375	23 Section 30. Proposals to establish a business improvement
376	376	24 district.
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387	387	1 (a) To propose a business improvement district, a written
388	388	2 petition shall be filed with the clerk and shall include the
389	389	3 name and legal status of the filing party, information
390	390	4 specifying where the complete district plan can be obtained,
391	391	5 and a summary of the district plan that includes: the
392	392	6 boundaries of the proposed business improvement district; the
393	393	7 proposed activities and improvements, and estimated amount of
394	394	8 annual funding required; the method of assessment; and the
395	395	9 total amount of the proposed district charges. The information
396	396	10 contained in the summary shall be sufficient if it enables a
397	397	11 property owner to generally identify the location and extent
398	398	12 of the proposed business improvement district, the nature and
399	399	13 extent of the activities and improvements, the estimated
400	400	14 annual district charge that the property owner would pay, and
401	401	15 the maximum annual district charge that the property owner
402	402	16 would pay.
403	403	17 (b) Upon receiving a written petition to establish a
404	404	18 business improvement district and concluding that the petition
405	405	19 meets the requirements of Section 80, the clerk shall submit
406	406	20 the petition to the governing body.
407	407	21 Section 35. Resolution of intent to consider establishment
408	408	22 of a business improvement district. After receiving a verified
409	409	23 petition from the clerk, the governing body shall adopt a
410	410	24 resolution of intention to consider the establishment of a
411	411	25 business improvement district. The resolution shall state the
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422	422	1 time and place of a public hearing to be held by the governing
423	423	2 body to consider establishment of a business improvement
424	424	3 district and shall restate all the information contained in
425	425	4 the petition regarding the boundaries of the proposed business
426	426	5 improvement district, the proposed activities and
427	427	6 improvements, and estimated amount of annual funding required,
428	428	7 the method of assessment, and the total amount of the proposed
429	429	8 district charges anticipated for the initial term of the
430	430	9 business improvement district.
431	431	10 Section 40. Establishment.
432	432	11 (a) Within 30 days after the public hearing to consider
433	433	12 establishment of a business improvement district, the party
434	434	13 who filed the district plan with the clerk may modify the
435	435	14 district plan, including to satisfy any applicable legal
436	436	15 requirements or remedy any deficiencies, prior to the adoption
437	437	16 of an ordinance establishing a business improvement district.
438	438	17 Any modification to the district plan that changes the source
439	439	18 or sources of financing, including the method and basis of
440	440	19 levying the assessment or an increase or reduction in the
441	441	20 maximum annual amount or maximum total amount of the
442	442	21 assessment against one or more properties within the business
443	443	22 improvement district, the procedures for renewal, the
444	444	23 boundaries of a business improvement district, the district
445	445	24 management association's governance structure, the activities
446	446	25 and improvements to be provided within the business
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457	457	1 improvement district, or a change to the filing party must be
458	458	2 approved by a written petition that conforms to the petition
459	459	3 signature requirements set forth in Section 80. If the
460	460	4 district plan is so modified, the governing body shall call an
461	461	5 additional public hearing to hear and consider objections to
462	462	6 the modified district plan prior to the adoption of an
463	463	7 ordinance establishing a business improvement district.
464	464	8 (b) If, following all required public hearings, the
465	465	9 governing body decides to establish a business improvement
466	466	10 district, the governing body shall adopt an ordinance
467	467	11 establishing the business improvement district that shall
468	468	12 include, but is not limited to, all the following information:
469	469	13 (1) A detailed description of: the boundaries of the
470	470	14 proposed business improvement district, which may be made
471	471	15 by reference to a plan or map; the proposed activities and
472	472	16 improvements, and an estimated amount of annual funding
473	473	17 required; the method of assessment; the maximum amount of
474	474	18 annual district charges; and the total amount of the
475	475	19 proposed district charges for the initial term of the
476	476	20 business improvement district. The descriptions shall be
477	477	21 sufficient if the descriptions enable a property owner to
478	478	22 generally identify the location and extent of the proposed
479	479	23 business improvement district, the nature and extent of
480	480	24 the activities and improvements, and the maximum annual
481	481	25 district charge that the property owner would pay.
482	482	26 (2) The time and place where any public hearing
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493	493	1 concerning the establishment of the business improvement
494	494	2 district was held.
495	495	3 (3) A statement that the activities and improvements
496	496	4 to be conferred upon property owners will be funded by the
497	497	5 levy of district charges.
498	498	6 (4) A statement on whether bonds will be issued.
499	499	7 (5) A finding that each item in the district plan
500	500	8 satisfies all applicable legal requirements and that
501	501	9 establishing the business improvement district is in the
502	502	10 public interest.
503	503	11 (6) The adoption of the district plan, as may be
504	504	12 modified pursuant to subsection (a), including each item
505	505	13 set forth in Section 15.
506	506	14 (7) A statement identifying the entity that will be
507	507	15 responsible for administering district charges, including
508	508	16 the functions of billing, collecting, and enforcement,
509	509	17 pursuant to Section 20.
510	510	18 (8) Authorization for the governmental unit to remit
511	511	19 district charges to the district management association
512	512	20 for the provision of activities and improvement.
513	513	21 (9) The deadline and manner for submitting the annual
514	514	22 report required in Section 70.
515	515	23 Section 45. Activities and improvements.
516	516	24 (a) Upon establishment of a business improvement district,
517	517	25 the governing body may levy and collect the district charge
518	518
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528	528	1 pursuant to Section 20 as allowed by the district plan and the
529	529	2 ordinance adopting the district plan.
530	530	3 (b) Activities and improvements provided pursuant to this
531	531	4 Act shall be provided in addition to base services. The
532	532	5 appropriate governmental unit shall continue to provide the
533	533	6 same level of base services in any business improvement
534	534	7 district as is provided to other real property within the
535	535	8 governmental unit. The district management association shall
536	536	9 not be expected or required to supplement any base services,
537	537	10 but the district management association may supplement any
538	538	11 base services within the business improvement district in
539	539	12 accordance with the district plan.
540	540	13 Section 50. Governance.
541	541	14 (a) For each business improvement district, the
542	542	15 governmental unit shall contract with the district management
543	543	16 association designated in the district plan to administer the
544	544	17 operation of and provide for and maintain activities and
545	545	18 improvements in and for a business improvement district. The
546	546	19 contract may provide for the provision and maintenance of
547	547	20 activities and improvements by one or more subcontractors of a
548	548	21 district management association.
549	549	22 (b) The certificate of incorporation or bylaws of a
550	550	23 district management association shall provide for voting
551	551	24 representation of owners whose real property is located within
552	552	25 the business improvement district, and may provide that the
553	553
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563	563	1 votes be weighted in proportion to the district charge levied
564	564	2 or to be levied upon property owners within the business
565	565	3 improvement district, except in no case shall the total number
566	566	4 of votes assigned to one owner exceed 20% of the total number
567	567	5 of votes which may be cast. Not less than 80% of a district
568	568	6 management association's board of directors shall be composed
569	569	7 of property owners or representatives of property owners
570	570	8 within the business improvement district, and the composition
571	571	9 shall generally be described in the statement identifying the
572	572	10 district management association's governance structure in the
573	573	11 district plan.
574	574	12 (c) In addition to other powers as are conferred on it by
575	575	13 law, the district management association may make
576	576	14 recommendations to the governing body with respect to any
577	577	15 matter involving or relating to the business improvement
578	578	16 district.
579	579	17 (d) For consideration as it may deem appropriate, the
580	580	18 governing body may license or grant to the district management
581	581	19 association the right to undertake or permit commercial
582	582	20 activities or other private uses of the streets or other parts
583	583	21 of the business improvement district in which the governmental
584	584	22 unit has any real property interest.
585	585	23 Section 55. Issuance of bonds. A governmental unit may
586	586	24 issue bonds in the amounts and for the periods necessary to
587	587	25 finance activities and improvements if authorized by the
588	588
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598	598	1 ordinance establishing the business improvement district.
599	599	2 District charges levied in a business district shall be
600	600	3 pledged to secure the bonds and district charges levied in 2 or
601	601	4 more business improvement districts may be pledged to secure a
602	602	5 single bond issue benefiting the business improvement
603	603	6 districts. The district charge shall be levied on a basis that
604	604	7 provides a rational relationship between the amount of the
605	605	8 district charge against each property owner in each business
606	606	9 improvement district and the benefit received. Bonds issued
607	607	10 pursuant to this Act shall not be regarded as indebtedness of
608	608	11 the governmental unit for the purpose of any limitation
609	609	12 imposed by any law. The term of any bonds issued pursuant to
610	610	13 this Act shall be limited to the term of the business
611	611	14 improvement district, including any renewal period. A
612	612	15 governmental unit may set forth additional requirements by
613	613	16 ordinance prior to bond issuance.
614	614	17 Section 60. Term; renewal.
615	615	18 (a) The initial term for a business improvement district
616	616	19 shall be a maximum of 5 years or, if bonds are authorized to be
617	617	20 issued for the business improvement district, until the
618	618	21 maximum maturity of those bonds. Any business improvement
619	619	22 district may be renewed one or more times by following the
620	620	23 procedures for renewal as provided in the district plan if
621	621	24 each property owner that is subject to assessment is notified
622	622	25 of a pending renewal. A renewal shall not go into effect when,
623	623
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626	626
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633	633	1 prior to the effective date of the renewal, a written petition
634	634	2 seeking termination of the renewal that conforms to the
635	635	3 petition signature requirements set forth in Section 80 is
636	636	4 delivered to the clerk.
637	637	5 (b) Upon each renewal, a business improvement district
638	638	6 shall have an additional term not to exceed 15 years, or, if
639	639	7 bonds are authorized to be issued for the business improvement
640	640	8 district, until the maximum maturity of those bonds. Prior to
641	641	9 renewal, the ordinance adopting the district plan may be
642	642	10 amended pursuant to Section 65, with the amendments to take
643	643	11 effect upon renewal.
644	644	12 (c) Upon renewal, any remaining revenues derived from the
645	645	13 levy of district charges, or any revenues derived from the
646	646	14 sale of assets acquired with the revenues, shall be
647	647	15 transferred to the district management association of the
648	648	16 renewed business improvement district. If the renewed business
649	649	17 improvement district includes additional real property not
650	650	18 included within the prior business improvement district, the
651	651	19 remaining revenues shall be spent to benefit only the real
652	652	20 property within the boundaries of the prior business
653	653	21 improvement district. If the renewed business improvement
654	654	22 district does not include real property included in the prior
655	655	23 business improvement district, the remaining revenues
656	656	24 attributable to that real property shall be refunded to the
657	657	25 property owners of that real property.
658	658
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660	660
661	661
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668	668	1 Section 65. Amendments.
669	669	2 (a) Upon the written request of the district management
670	670	3 association, the governing body may amend the ordinance
671	671	4 adopting the district plan upon which the establishment or
672	672	5 renewal of the business improvement district was based as set
673	673	6 forth in this Section.
674	674	7 (b) Amendments that provide for any change to the source
675	675	8 or sources of financing, including the method and basis of
676	676	9 levying the assessment or an increase in the maximum annual
677	677	10 district charge or the maximum total district charges for the
678	678	11 term of the business improvement district, or that provide for
679	679	12 any change to the procedures for renewal may be adopted by the
680	680	13 governing body by ordinance if, after a public hearing, the
681	681	14 governing body determines that it is in the public interest to
682	682	15 authorize the change to the source or sources of financing or
683	683	16 to authorize the change to the procedures for renewal.
684	684	17 (c) Amendments that provide for a change to the boundaries
685	685	18 of a business improvement district may be adopted by the
686	686	19 governing body by ordinance if, after a public hearing, the
687	687	20 governing body determines that it is in the public interest to
688	688	21 authorize the change to the boundaries of the business
689	689	22 improvement district and, if applicable, that all newly
690	690	23 included property will benefit from the activities and
691	691	24 improvements provided. The governing body may change the
692	692	25 boundaries of a business improvement district by either
693	693	26 expanding or reducing the existing boundaries. If the change
694	694
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704	704	1 to the boundaries is an expansion to existing boundaries, the
705	705	2 expansion area must be contiguous with an existing boundary
706	706	3 and the assessments upon property owners in the expansion area
707	707	4 shall be established pursuant to Section 20. The governing
708	708	5 body may consider an expansion to the boundaries of a business
709	709	6 improvement district only upon receipt of a written petition
710	710	7 of property owners within the proposed expansion area that
711	711	8 conforms to the petition signature requirements set forth in
712	712	9 Section 80. Any revenues that are unspent at the time of an
713	713	10 amendment expanding the boundaries of a business improvement
714	714	11 district shall be spent to benefit only the real property
715	715	12 within the prior boundaries of the business improvement
716	716	13 district. If the change to the boundaries is a reduction to
717	717	14 existing boundaries, any revenues that are unspent at the time
718	718	15 of the amendment and are associated with real property that is
719	719	16 being removed from the business improvement district, then
720	720	17 those remaining revenues shall be refunded to the property
721	721	18 owners of the real property. Any amendment that changes the
722	722	19 boundaries of a business improvement district shall provide an
723	723	20 updated map of the business improvement district that reflects
724	724	21 the expansion or reduction of its boundaries.
725	725	22 (d) Notice shall be given and public hearings shall be
726	726	23 held in accordance with Sections 85 and 90.
727	727	24 (e) Amendments not provided for in subsection (b) or (c)
728	728	25 may be adopted by the governing body by ordinance without
729	729	26 notice and a public hearing if the governing body determines
730	730
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740	740	1 that the amendments are consistent with the objectives of the
741	741	2 district plan and are in the public interest to approve the
742	742	3 amendment.
743	743	4 Section 70. Reports.
744	744	5 (a) The district management association shall prepare or
745	745	6 have prepared a report for each fiscal year, except the first
746	746	7 fiscal year, for which district charges are to be levied and
747	747	8 collected to pay the costs of activities and improvements. The
748	748	9 district management association's first report shall be
749	749	10 submitted after the first year of operation of the business
750	750	11 improvement district.
751	751	12 (b) The report shall be submitted to the governing body,
752	752	13 and to each property owner subject to a district charge upon
753	753	14 request, and shall be made available for public inspection.
754	754	15 The report shall refer to the business improvement district by
755	755	16 name, specify the fiscal year to which the report applies,
756	756	17 and, with respect to that fiscal year, shall contain, but is
757	757	18 not limited to, all the following information:
758	758	19 (1) The anticipated activities and improvements to be
759	759	20 provided in that fiscal year.
760	760	21 (2) An estimate of the cost of providing the
761	761	22 anticipated activities and improvements in that fiscal
762	762	23 year.
763	763	24 (3) The estimated amount of any surplus or deficit
764	764	25 revenues to be carried over from a previous fiscal year.
765	765
766	766
767	767
768	768
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775	775	1 (c) In addition to the annual reporting requirement, the
776	776	2 district management association shall notify the governing
777	777	3 body of any proposed infrastructure or capital project in
778	778	4 excess of $50,000 within a reasonable time.
779	779	5 Section 75. Dissolution.
780	780	6 (a) After a public hearing on the subject of dissolution,
781	781	7 the governing body may dissolve by ordinance any business
782	782	8 improvement district in either of the following circumstances:
783	783	9 (1) If the governing body finds there has been
784	784	10 misappropriation of funds, malfeasance, or a violation of
785	785	11 law in connection with the management of the business
786	786	12 improvement district; or
787	787	13 (2) Each year during the term of the business
788	788	14 improvement district, there shall be a 60-day period in
789	789	15 which property owners who paid more than 50% of the total
790	790	16 of district charges levied in the prior year may request
791	791	17 dissolution of a business improvement district by a
792	792	18 written petition that conforms to the petition signature
793	793	19 requirements set forth in Section 80. The first period
794	794	20 shall begin 60 days prior to one year after the date of
795	795	21 establishment of the district and shall continue for 60
796	796	22 days. The next 60-day period shall begin 60 days prior to 2
797	797	23 years after the date of the establishment of the district.
798	798	24 Each successive year during the term of the district shall
799	799	25 have a 60-day period beginning 60 days after the
800	800
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810	810	1 anniversary of the date of the establishment of the
811	811	2 district.
812	812	3 (b) The governing body shall adopt a resolution of
813	813	4 intention to dissolve the business improvement district prior
814	814	5 to a public hearing required by this section. The resolution
815	815	6 shall state the reason for the dissolution, shall state the
816	816	7 time and place of the public hearing, and shall contain a
817	817	8 proposal to dispose of any assets acquired with the revenues
818	818	9 of district charges levied on behalf of the business
819	819	10 improvement district in accordance with subsection (d).
820	820	11 (c) Notice shall be given and public hearings shall be
821	821	12 held in accordance with Sections 85 and 90.
822	822	13 (d) Upon the dissolution or expiration without renewal of
823	823	14 a district, and after all outstanding debts are paid, any
824	824	15 remaining revenues derived from the levy of district charges,
825	825	16 including any remaining revenues from district charges
826	826	17 collected after dissolution, or derived from the sale of
827	827	18 assets acquired with these revenues or from bond reserve or
828	828	19 construction funds, shall be either: (i) refunded to the
829	829	20 property owners then located or operating within the business
830	830	21 improvement district in which district charges were levied by
831	831	22 applying the same method and basis that was used to calculate
832	832	23 the district charges levied in the fiscal year in which the
833	833	24 district dissolves or expires; or (ii) spent on activities or
834	834	25 improvements specified in the district plan under a valid and
835	835	26 enforceable contract executed by the district management
836	836
837	837
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846	846	1 association prior to the dissolution. If the dissolution
847	847	2 occurs before district charges are levied for the fiscal year,
848	848	3 the method and basis that was used to calculate district
849	849	4 charges levied in the immediate prior fiscal year shall be
850	850	5 used to calculate the amount of any refund.
851	851	6 Section 80. Petition signature requirements. Any petition
852	852	7 required by this Act must be signed by property owners in the
853	853	8 proposed business improvement district or proposed expanded
854	854	9 area of a business improvement district, as the case may be,
855	855	10 who cumulatively are expected to pay more than 20% of the total
856	856	11 of the district charges proposed to be levied. However, where
857	857	12 the proposed business improvement district or proposed
858	858	13 expanded area of a business improvement district is located
859	859	14 wholly or in part in the downtown area, then the petition must
860	860	15 be signed by property owners in the proposed business
861	861	16 improvement district or expanded area of a business
862	862	17 improvement district, as the case may be, who are expected to
863	863	18 cumulatively pay more than 50% of the total of the district
864	864	19 charges proposed to be levied. All signatures for a petition
865	865	20 to establish or expand a business improvement district must be
866	866	21 collected within a period ending no more than 120 days from the
867	867	22 initiation of the petition, which date shall be specified on
868	868	23 the petition.
869	869	24 Section 85. Manner of notice. The notice of any public
870	870
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880	880	1 hearing required under this Act shall be given by publication
881	881	2 and mailing. Notice by publication shall be given by
882	882	3 publication at least once not less than 15 days prior to the
883	883	4 public hearing in a newspaper of general circulation within
884	884	5 the governmental unit. Notice by mailing shall be given by
885	885	6 depositing the notice in the United States mail addressed to
886	886	7 each owner subject to a district charge. Notice shall be
887	887	8 mailed not less than 10 days prior to the time set for the
888	888	9 public hearing. The mailed notice shall enclose, or include
889	889	10 information allowing a property owner to obtain, a copy of the
890	890	11 proposed district plan.
891	891	12 Section 90. Public hearings. At a public hearing held
892	892	13 pursuant to this Act, any interested person, including all
893	893	14 property owners owning real property located within a proposed
894	894	15 or existing business improvement district, may file with the
895	895	16 clerk written objections to or statements in support of, and
896	896	17 may be heard orally, with respect to any matter embodied in the
897	897	18 district plan or concerning the management of the business
898	898	19 improvement district. The governing body shall hear and
899	899	20 consider all statements and objections at the public hearing.
900	900	21 The governing body may adjourn a public hearing to another
901	901	22 date without further notice other than a motion fixing the
902	902	23 time and place the public hearing will reconvene.
903	903	24 Section 95. Existing law. This Act provides an alternative
904	904
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914	914	1 method of financing certain activities and improvements. The
915	915	2 provisions of this Act do not affect or limit any other
916	916	3 provisions of law authorizing or providing for the furnishing
917	917	4 of activities or improvements or the raising of revenue for
918	918	5 these purposes. Every special service area established
919	919	6 pursuant to the Special Service Area Tax Law is unaffected by
920	920	7 this Act.
921	921	8 Section 97. Local authority. A governmental unit may not
922	922	9 establish or regulate business improvement districts in a
923	923	10 manner inconsistent with this Act. This section is a denial
924	924	11 and limitation of home rule powers and functions under
925	925	12 subsection (h) of Section 6 of Article VII of the Illinois
926	926	13 Constitution.
927	927	14 Section 99. Effective date. This Act takes effect 120 days
928	928	15 after becoming law.
929	929
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