SB1959 104TH GENERAL ASSEMBLY

LRB104 10529 LNS 20604 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB1959

Introduced 2/6/2025, by Sen. Cristina Castro

SYNOPSIS AS INTRODUCED:

605 ILCS 5/5-907	from Ch. 121, par. 5-907
605 ILCS 5/5-918	from Ch. 121, par. 5-918
605 ILCS 5/5-918.1 new

Amends the Illinois Highway Code. Provides that each unit of local government which imposes or intends to impose impact fees and which has created an Advisory Committee, shall publish the names of the Advisory Committee members names on the public website maintained by the unit of local government, together with a list of the dates and times at which the Advisory Committee has met and provide an electronically accessible copy of the minutes of any such meetings. Removes language providing that if the unit of local government has a planning or zoning commission, the unit of local government may elect to use its planning or zoning commission to serve as the Advisory Committee. Provides that a unit of local government which currently has in effect an impact fee ordinance or resolution shall have not more than 12 months from July 1, 2025 to bring its ordinance or resolution into conformance with the requirements imposed by the Act, except that a home rule unit of local government with a population over 75,000 and located in a county with a population over 600,000 and less than 2,000,000 shall have not more than 18 months from July 1, 2025 to bring that ordinance or resolution into conformance. Provides that any unit of local government which has in effect an impact fee ordinance or resolution on the effective date of the amendatory Act and which has not brought their impact fee ordinance or resolution into compliance by the required date, shall refund all funds previously collected under the impact fee ordinance or resolution together with any interest earned on the same. Effective January 1, 2026.

A BILL FOR

AN ACT concerning transportation.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Highway Code is amended by changing Sections 5-907 and 5-918 and by adding Section 5-918.1 as follows:

(605 ILCS 5/5-907) (from Ch. 121, par. 5-907)

Sec. 5-907. Advisory Committee. A road improvement impact fee advisory committee shall be created by the unit of local government intending to impose impact fees. The Advisory Committee shall consist of not less than 10 members and not more than 20 members. Not less than 40% of the members of the committee shall be representatives of the real estate, development, and building industries and the labor communities and may not be employees or officials of the unit of local government.

(a) The members of the Advisory Committee shall be selected as follows:

(1) The representatives of real estate shall be licensed under the Real Estate License Act of 2000 and shall be designated by the President of the Illinois Association of Realtors from a local Board from the service area or areas of the unit of local government.

(2) The representatives of the development industry shall be designated by the Regional Developers Association.

(3) The representatives of the building industry shall be designated representatives of the Regional Home Builders representing the unit of local government's geographic area as appointed from time to time by that Association's president.

(4) The labor representatives shall be chosen by either the Central Labor Council or the Building and Construction Trades Council having jurisdiction within the unit of local government.

(b) If the unit of local government is a county, at least 30% of the members serving on the commission must be representatives of the municipalities within the county. The municipal representatives shall be selected by a convention of mayors in the county, who shall elect from their membership municipal representatives to serve on the Advisory Committee. The members representing the county shall be appointed by the chief executive officer of the county.

(c) If the unit of local government is a municipality, the non-public representatives shall be appointed by the chief executive officer of the municipality.

(d) Each unit of local government which imposes or intends to impose impact fees and which has created an Advisory Committee, shall publish the names of said Advisory Committee members names on the public website maintained by the unit of local government, together with a list of the dates and times at which the Advisory Committee has met and provide an electronically accessible copy of the minutes of any such meetings.

If the unit of local government has a planning or zoning commission, the unit of local government may elect to use its planning or zoning commission to serve as the Advisory Committee, provided that not less than 40% of the committee members include representatives of the real estate, development, and building industries and the labor communities who are not employees or officials of the unit of local government. A unit of local government may appoint additional members to serve on the planning or zoning commission as ad hoc voting members whenever the planning or zoning commission functions as the Advisory Committee; provided that no less than 40% of the members include representatives of the real estate, development, and building industries and the labor communities.

(Source: P.A. 91-245, eff. 12-31-99.)

(605 ILCS 5/5-918) (from Ch. 121, par. 5-918)

Sec. 5-918. Transition Clauses.

(a) Conformance of Existing Ordinances. A unit of local government which currently has in effect an impact fee ordinance or resolution shall have not more than 12 months from July 1, 2025 26, 1989 to bring its ordinance or resolution into conformance with the requirements imposed by this Act, except that a home rule unit of local government with a population over 75,000 and located in a county with a population over 600,000 and less than 2,000,000 shall have not more than 18 months from July 1, 2025 26, 1989, to bring that ordinance or resolution into conformance. For the purposes of this provision, conformance shall also mean compliance with Section 5-907.

(b) Exemption of Developments Receiving Site Specific Development Approval. No development which has received site specific development approval from a unit of local government within 18 months before the first date of publication by the unit of local government of a notice of public hearing to consider land use assumptions relating to the development of a comprehensive road improvement plan and imposition of impact fees and which has filed for building permits or certificates of occupancy within 18 months of the date of approval of the site specific development plan shall be required to pay impact fees for permits or certificates of occupancy issued within that 18 month period.

This Division shall have no effect on the validity of any existing agreements entered into between a developer and a unit of local government pertaining to fees, exactions or donations made by a developer for the purpose of funding road improvements.

(c) Exception to the Exemption of Developments Receiving Site Specific Development Approval. Nothing in this Section shall require the refund of impact fees previously collected by units of local government in accordance with their ordinances or resolutions, if such ordinances or resolutions were adopted prior to the effective date of this Act and provided that such impact fees are encumbered as provided in Section 5-916.

(Source: P.A. 86-97; 86-1158.)

(605 ILCS 5/5-918.1 new)

Sec. 5-918.1. Refund for noncompliance. Any unit of local government which has in effect an impact fee ordinance or resolution on the effective date of this amendatory Act of the 104th General Assembly and which has not brought their impact fee ordinance or resolution into compliance with this Act by the date provided for in Section 5-918, shall refund all funds previously collected under said impact fee ordinance or resolution together with any interest earned on the same. Any impact fee ordinance or resolution that does not conform with this amendatory Act of the 104th General Assembly by the date provided for in Section 5-918, shall be considered null and void.

Section 99. Effective date. This Act takes effect January 1, 2026.