Full Text of SB2101 96th General Assembly
SB2101sam003 96TH GENERAL ASSEMBLY
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Sen. Jacqueline Y. Collins
Filed: 5/17/2009
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| AMENDMENT TO SENATE BILL 2101
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| AMENDMENT NO. ______. Amend Senate Bill 2101 by replacing | 3 |
| everything after the enacting clause with the following:
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| "Section 1. Short title. This Act may be cited as the | 5 |
| Illinois Land Banking Act. | 6 |
| Section 5. Findings. There is a continuing need to | 7 |
| strengthen and revitalize the economy of this State. Vacant and | 8 |
| abandoned properties threaten communities around the State | 9 |
| because those properties diminish property values, enable | 10 |
| crime, and create health hazards. Municipalities are often | 11 |
| unaware of which properties are at risk of becoming vacant and | 12 |
| abandoned. Municipalities have an interest in knowing the | 13 |
| status of the housing stock located in their jurisdictions. | 14 |
| Local governments should be empowered to acquire, develop, | 15 |
| maintain, and dispose of vacant and abandoned properties that | 16 |
| present a threat to communities around the State. |
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| Municipalities lack many of the tools necessary to ensure | 2 |
| adequate property maintenance. Municipalities are unable to | 3 |
| recover the reasonable costs of their property maintenance | 4 |
| activity. | 5 |
| Section 10. Definitions. In this Act: | 6 |
| "Authority" means a land bank authority created by one or | 7 |
| more municipalities pursuant to this Act.
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| "Intergovernmental agreement" means a contractual | 9 |
| agreement between one or more governmental agencies, | 10 |
| including, but not limited to, an agreement to jointly exercise | 11 |
| any power, privilege, or authority that agencies share in | 12 |
| common and that each might exercise separately under this Act.
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| Section 15. Authorization. A municipality or several | 14 |
| municipalities may create a land bank authority with any or all | 15 |
| of the powers and restrictions specified in this Act. In | 16 |
| creating an authority, the municipality or several | 17 |
| municipalities shall provide for all of the following: | 18 |
| (1) The incorporation of the authority as a public | 19 |
| body, corporate and politic.
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| (2) Articles of incorporation for the authority, which | 21 |
| must specify, in addition to any other required provision, | 22 |
| that the purpose of the land bank authority is to stabilize | 23 |
| communities by: | 24 |
| (A) Acquiring property which is (i) vacant or |
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| abandoned and in the foreclosure process, (ii) | 2 |
| nonrevenue generating, or (iii) non-tax producing.
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| (B) Facilitating the reclamation and | 4 |
| rehabilitation of property which is (i) vacant or | 5 |
| abandoned and in the foreclosure process, (ii) | 6 |
| nonrevenue generating, or (iii) non-tax producing. | 7 |
| (C) Holding and managing property which is (i) | 8 |
| vacant or abandoned and in the foreclosure process, | 9 |
| (ii) nonrevenue generating, or (iii) non-tax producing | 10 |
| pending its reclamation or rehabilitation. | 11 |
| (3) The size of the board of directors for the | 12 |
| authority.
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| (4) The qualifications, methods of selection, and | 14 |
| terms of office of the board members.
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| A municipality may alter or dissolve its land bank | 16 |
| authority at anytime. | 17 |
| Section 20. Election of tax remittance. A municipality may | 18 |
| authorize the remittance of a portion of taxes collected on | 19 |
| real property, pursuant to the Property Tax Code, to the | 20 |
| authority that sold or conveyed real property in order to | 21 |
| further the purposes of this Act. The municipality may elect to | 22 |
| have up to 50% of those taxes remitted to the authority for up | 23 |
| to 5 years after the land bank has completed the sale or | 24 |
| conveyance of the property. |
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| Section 25. Board of directors; conflicts of interest. An | 2 |
| authority shall be governed by a board of directors, the board | 3 |
| shall consist of 3 or more directors. The board of directors | 4 |
| shall be composed of an odd number of members. | 5 |
| Notwithstanding any law to the contrary, any public officer | 6 |
| shall be eligible to serve as a board member and the acceptance | 7 |
| of the appointment shall neither terminate nor impair such | 8 |
| public office. For the purposes of this Section, "public | 9 |
| officer" means a person who is elected to a State or local | 10 |
| government office. | 11 |
| Any State or local government employee shall be eligible to | 12 |
| serve as a board member. | 13 |
| The board of the authority shall meet from time to time as | 14 |
| required, and the presence of a majority of the board of | 15 |
| directors shall constitute a quorum. A chairperson shall be | 16 |
| elected from among the members, and he or she shall execute all | 17 |
| deeds, leases, and contracts of the authority when authorized | 18 |
| by the board. The board of the authority shall conduct meetings | 19 |
| in accordance with the Open Meetings Act. Members of the board | 20 |
| must file a written statement of economic interests in | 21 |
| accordance with the Illinois Governmental Ethics Act. The board | 22 |
| of the authority shall require that any member of the board | 23 |
| with a direct or indirect interest in any matter disclose the | 24 |
| member's interest to the board before the board takes any | 25 |
| action on that matter. Members of the board of directors of an | 26 |
| authority shall serve without compensation. |
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| It shall be unlawful for a member of the board, the spouse | 2 |
| of a member of the board, or an immediate family member of a | 3 |
| member of the board to have or acquire a contract or have or | 4 |
| acquire a direct pecuniary interest in a contract with the | 5 |
| authority that relates to the authority. Any such contract | 6 |
| shall be deemed null and void. Such limitations shall remain in | 7 |
| force for one year after the conclusion of the person's term of | 8 |
| office. | 9 |
| If a member of the board, the spouse of a member of the | 10 |
| board, or an immediate family member of a member of the board | 11 |
| is entitled to receive distributable income of a partnership, | 12 |
| association, corporation, or other business entity, then it is | 13 |
| unlawful for that partnership, association, corporation, or | 14 |
| other business entity to have or acquire a contract or a direct | 15 |
| pecuniary interest in a contract with the authority that | 16 |
| relates to the authority. Any such contract shall be deemed | 17 |
| null and void. Such limitations shall remain in force for one | 18 |
| year after the conclusion of the person's term of office. | 19 |
| The board of the authority may establish an additional code | 20 |
| of ethics for its directors, officers, and employees. The board | 21 |
| of the authority may create additional policies and procedures | 22 |
| requiring the disclosure of relationships that may give rise to | 23 |
| a conflict of interest. | 24 |
| Section 30. Powers. A municipality or several | 25 |
| municipalities may grant an authority any or all of the powers |
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| enumerated in this Section, subject to any conditions, | 2 |
| restrictions, or limitations of the municipality, including | 3 |
| the power to: | 4 |
| (a) Acquire property pursuant to Section 35 of this | 5 |
| Act.
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| (b) Extinguish taxes pursuant to Section 40 of this | 7 |
| Act. | 8 |
| (c) Adopt, amend, and repeal bylaws for the regulation | 9 |
| of its affairs and the conduct of its business.
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| (d) Sue and be sued in its own name and plead and be | 11 |
| impleaded, including, but not limited to, defending the | 12 |
| authority in an action to clear title to property conveyed | 13 |
| by the authority.
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| (e) Take any action, provide any notice, or instate any | 15 |
| proceeding required to clear or quiet title to property | 16 |
| held by the authority in order to establish ownership by | 17 |
| and vest title to property in the authority.
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| (f) Be made party to and defend any action or | 19 |
| proceeding concerning title claims against property held | 20 |
| by the authority.
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| (g) Subject to the written approval of the board of | 22 |
| directors and the municipality or several municipalities | 23 |
| that created the authority, borrow money and issue bonds | 24 |
| and notes according to the provisions of this Act.
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| (h) Enter into contracts and other instruments | 26 |
| necessary, incidental, or convenient to the performance of |
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| its duties and the exercise of its powers, including, but | 2 |
| not limited to, intergovernmental agreements, for the | 3 |
| joint exercise of power under this Act. | 4 |
| (i) Enter into contracts for the management of, the | 5 |
| collection of rent from, and the sale of real property held | 6 |
| by an authority. | 7 |
| (j) Enter into contracts with other entities, public or | 8 |
| private, for the provision of all or a portion of the | 9 |
| services necessary for the management and operation of the | 10 |
| authority.
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| (k) Solicit and accept gifts, grants, labor, loans, and | 12 |
| other aid from any person, the federal government, this | 13 |
| State, a political subdivision of this State or any agency | 14 |
| of the federal government, or an intergovernmental entity | 15 |
| created under the laws of this State or participate in any | 16 |
| other way in a program of the federal government, this | 17 |
| State, a political subdivision of this State, or an | 18 |
| intergovernmental entity created under the laws of this | 19 |
| State.
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| (l) Procure insurance against loss in connection with | 21 |
| the property, assets, or activities of the authority.
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| (m) Control, hold, manage, maintain, operate, repair, | 23 |
| lease as lessor, secure, prevent the waste or deterioration | 24 |
| of, demolish, and take all other actions necessary to | 25 |
| preserve the value of the property it holds or owns.
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| (n) Remediate environmental contamination on any |
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| property held by the authority.
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| (o) Fix, charge, and collect rents, fees, and charges | 3 |
| for use of property under the control of the authority or | 4 |
| for services provided by the authority.
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| (p) Grant or acquire a license, easement, or option | 6 |
| with respect to property as the authority determines is | 7 |
| reasonably necessary to achieve the purposes of the Act.
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| (q) Convey, sell, transfer, exchange, lease as lessor, | 9 |
| or otherwise dispose of property, rights, or interests in | 10 |
| property to which the authority holds a legal interest to | 11 |
| any public or private person for value determined by the | 12 |
| authority. | 13 |
| (r) Pay any tax or special assessment due on property | 14 |
| acquired or owned by the authority.
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| (s) Subject to the Public Funds Investment Act, invest | 16 |
| money of the authority, at the discretion of the board of | 17 |
| directors of the authority, in instruments, obligations, | 18 |
| securities, or property determined proper by the board of | 19 |
| directors of the authority, and name and use depositories | 20 |
| for its money. | 21 |
| (t)
Employ its own employees or use employees of the | 22 |
| authorizing municipality or employees of the parties to | 23 |
| intergovernmental agreements.
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| (u) Employ legal and technical experts, other | 25 |
| officers, agents, or employees and pay them from the funds | 26 |
| of the authority and determine the qualifications, duties, |
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| and compensation of those it employs.
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| (v) The board of directors of an authority may delegate | 3 |
| to one or more of its members, officers, agents, or | 4 |
| employees any powers or duties it considers proper.
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| (w) Reimburse members of the board of directors of the | 6 |
| authority for actual and necessary expenses subject to | 7 |
| available appropriations.
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| (x) Contract for goods and services and engage | 9 |
| personnel as necessary and engage the services of private | 10 |
| consultants, managers, legal counsel, engineers, accounts, | 11 |
| and auditors for rendering professional financial | 12 |
| assistance and advice payable out of any money available to | 13 |
| the authority.
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| (y) Prepare the reports or plans the authority | 15 |
| considers necessary to assist it in the exercise of its | 16 |
| powers under this Act and to monitor and evaluate progress | 17 |
| under this Act.
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| The powers granted by this Act are in addition to the | 19 |
| powers granted by any other law, statute, or charter. | 20 |
| The authority may only acquire property within the | 21 |
| jurisdiction of one of the municipalities granting the | 22 |
| authority power under this Act or within the jurisdiction of a | 23 |
| governmental entity pursuant to an intergovernmental agreement | 24 |
| with that governmental entity. Property located outside the | 25 |
| corporate limits of a municipality is not considered within the | 26 |
| jurisdiction of the municipality until annexation is completed |
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| pursuant to Division 7-1 of the Illinois Municipal Code. | 2 |
| An authority shall not exercise the power of eminent | 3 |
| domain. | 4 |
| Section 35. Acquisition of property. An authority may | 5 |
| acquire by gift, devise, transfer, exchange, foreclosure, | 6 |
| purchase, or otherwise on terms and conditions and in a manner | 7 |
| the authority considers proper, real property within the | 8 |
| authority's jurisdiction, or rights or interests in real | 9 |
| property within the authority's jurisdiction. | 10 |
| An authority may acquire by gift, devise, transfer, | 11 |
| exchange, foreclosure, purchase, or otherwise on terms and | 12 |
| conditions and in a manner the authority considers proper, real | 13 |
| property outside of the authority's jurisdiction pursuant to an | 14 |
| intergovernmental agreement, or rights or interests in real | 15 |
| property outside of the authority's jurisdiction pursuant to an | 16 |
| intergovernmental agreement. | 17 |
| An authority may acquire by gift, devise, transfer, | 18 |
| exchange, foreclosure, purchase, or otherwise on terms and | 19 |
| conditions and in a manner the authority considers proper, | 20 |
| personal property, or rights or interests in personal property. | 21 |
| Real property acquired by an authority by purchase may be | 22 |
| by purchase contract, lease purchase agreement, installment | 23 |
| sales contract, land contract, or otherwise. | 24 |
| An authority may hold and own in its name any property | 25 |
| acquired by it or conveyed to it by this State, a foreclosing |
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| governmental unit, a unit of local government, an | 2 |
| intergovernmental entity created under the laws of this State, | 3 |
| or any other public or private person, including, but not | 4 |
| limited to, property without clear title. | 5 |
| All deeds, mortgages, contracts, leases, purchases, or | 6 |
| other agreements regarding property of an authority, including | 7 |
| agreements to acquire or dispose of real property, shall be | 8 |
| approved by and executed in the name of the authority. | 9 |
| An authority shall have the right to purchase properties at | 10 |
| tax sales conducted in accordance with Division 3.5 of Article | 11 |
| 21 of the Property Tax Code. The authority may tender a bid at | 12 |
| a tax sale that is a credit bid, consisting of the obligation | 13 |
| of the authority to satisfy the component parts of the bid by | 14 |
| payments to the respective political subdivisions. | 15 |
| Section 40. Taxes. When a property is acquired by the | 16 |
| authority, the authority shall have the power to extinguish all | 17 |
| outstanding county and city or consolidated government taxes, | 18 |
| including school district taxes, at the time it sells or | 19 |
| otherwise disposes of property. | 20 |
| Property of an authority is public property devoted to an | 21 |
| essential public and governmental function and purpose. Income | 22 |
| of the authority is considered to be for a public and | 23 |
| governmental purpose. The property of the authority and its | 24 |
| income and operation are exempt from all taxes and special | 25 |
| assessments of this State and all units of local government. |
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| Bonds or notes issued by the authority, and the interest on and | 2 |
| income from those bonds and notes, are exempt from all taxation | 3 |
| of this State or a unit of local government. | 4 |
| Section 45. Receipt of taxes. All moneys received by an | 5 |
| authority as payment of taxes, penalties, or interest, or from | 6 |
| the redemption or sale of property subject to a tax lien of any | 7 |
| taxing unit shall be returned to the appropriate local tax | 8 |
| collecting unit in which the property is located. | 9 |
| Section 50. Proceeds. Except as otherwise provided in this | 10 |
| Act, as required by other law, as required under the provisions | 11 |
| of a deed, or as an authority otherwise agrees, any proceeds | 12 |
| received by the authority may be retained by the authority for | 13 |
| the purposes of this Act. | 14 |
| Section 55. Record maintenance. The authority shall | 15 |
| maintain a written inventory of all property held by the | 16 |
| authority. The property shall be inventoried and classified by | 17 |
| the authority according to title status and suitability for | 18 |
| use. The inventory shall be available for public inspection | 19 |
| during regular business hours. | 20 |
| For each property held, the authority shall establish and | 21 |
| maintain itemized records and accounts reflecting all | 22 |
| transactions, expenditures, and revenues relating to all | 23 |
| property held by the authority.
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| Section 99. Effective date. This Act takes effect upon | 2 |
| becoming law.".
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