100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB0342

 

Introduced , 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.


LRB100 04321 AWJ 14327 b

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

 

 

A BILL FOR

 

HB0342LRB100 04321 AWJ 14327 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; or (e) any other taxes or anticipated
10receipts that the municipality may lawfully pledge.
11    Such obligations may be issued in one or more series
12bearing interest at such rate or rates as the corporate
13authorities of the municipality shall determine by ordinance.
14Such obligations shall bear such date or dates, mature at such
15time or times not exceeding 20 years from their respective
16dates, be in such denomination, carry such registration
17privileges, be executed in such manner, be payable in such
18medium of payment at such place or places, contain such
19covenants, terms and conditions, and be subject to redemption
20as such ordinance shall provide. Obligations issued pursuant to
21this Act may be sold at public or private sale at such price as
22shall be determined by the corporate authorities of the
23municipalities. No referendum approval of the electors shall be
24required as a condition to the issuance of obligations pursuant
25to this Division except as provided in this Section.
26    In the event the municipality authorizes issuance of

 

 

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1obligations pursuant to the authority of this Division, secured
2by the full faith and credit of the municipality, which
3obligations are other than obligations which may be issued
4under home rule powers provided by Article VII, Section 6 of
5the Illinois Constitution, or pledges taxes pursuant to (b) or
6(c) of the second paragraph of this section, the ordinance
7authorizing the issuance of such obligations or pledging such
8taxes shall be published within 10 days after such ordinance
9has been passed in one or more newspapers, with general
10circulation within such municipality. The publication of the
11ordinance shall be accompanied by a notice of (1) the specific
12number of voters required to sign a petition requesting the
13question of the issuance of such obligations or pledging taxes
14to be submitted to the electors; (2) the time in which such
15petition must be filed; and (3) the date of the prospective
16referendum. The municipal clerk shall provide a petition form
17to any individual requesting one.
18    If no petition is filed with the municipal clerk, as
19hereinafter provided in this Section, within 45 30 days after
20the publication of the ordinance, the ordinance shall be in
21effect. But, if within that 45 30 day period a petition is
22filed with the municipal clerk, signed by electors in the
23municipality numbering the greater of (i) 7.5% of the 10% or
24more of the number of registered voters in the municipality; or
25(ii) the lesser of 200 of the registered voters or 15% of the
26registered voters, asking that the question of issuing

 

 

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

 

 

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

 

 

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1    All obligations heretofore or hereafter issued pursuant to
2this Act shall not be regarded as indebtedness of the
3municipality issuing such obligations or any other taxing
4district for the purpose of any limitation imposed by law.
5    The referendum changes made by this amendatory Act of the
6100th General Assembly apply only to ordinances adopted on or
7after the effective date of this amendatory Act of the 100th
8General Assembly.
9(Source: P.A. 95-15, eff. 7-16-07; 95-164, eff. 1-1-08; 95-331,
10eff. 8-21-07; 95-346, eff. 8-21-07; 95-459, eff. 8-27-07;
1195-653, eff. 1-1-08; 95-662, eff. 10-11-07; 95-683, eff.
1210-19-07; 95-709, eff. 1-29-08; 95-876, eff. 8-21-08; 95-932,
13eff. 8-26-08; 95-964, eff. 9-23-08; 95-977, eff. 9-22-08;
1495-1028, eff. 8-25-09 (see Section 5 of P.A. 96-717 for the
15effective date of changes made by P.A. 95-1028); 96-328, eff.
168-11-09; 96-1000, eff. 7-2-10.)
 
17    Section 99. Effective date. This Act takes effect upon
18becoming law.