SB3499 104TH GENERAL ASSEMBLY

LRB104 20619 JDS 34112 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB3499

Introduced 2/5/2026, by Sen. Doris Turner

SYNOPSIS AS INTRODUCED:

New Act
55 ILCS 5/5-1030	from Ch. 34, par. 5-1030

Creates the Capital Area Tourism Authority Act. Establishes the Capital Area Tourism Authority as a political subdivision and unit of local government for the benefit of the general public and for the promotion of business, industry, commerce, and tourism in the City of Springfield, Sangamon County, and the State of Illinois. Provides that, if and only if the Sangamon County Board, by ordinance, imposes a tax under a specified provision of the Counties Code on all hotel operators who engage in business as a hotel operator within a STAR bond district that is established in the territory of the Authority and if the Sangamon County Board also resolves that all of the revenue generated from that tax, as well as all of the tax receipts generated from local sales tax within such a STAR bond district, shall be dedicated to the payment of the project costs for any STAR bond project in such a district and shall be considered pledged STAR revenues under the Statewide Innovation Development and Economy Act, then the Authority may exercise certain economic development powers. Contains provisions concerning the powers and duties of the Authority; the membership of the Board of the Authority; meetings and records of the Board of the Authority; the use of pledged tax revenue; ownership and control of projects financed by the Authority; the investigatory authority of the Board of the Authority; and other matters. Contains legislative findings. Defines terms. Effective immediately.

A BILL FOR

AN ACT concerning local government.

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

Section 1. Short title. This Act may be cited as the Capital Area Tourism Authority Act.

Section 5. Findings; purpose.

(a) The General Assembly finds and declares that:

(1) The City of Springfield is the capital city of the State of Illinois and the home of President Abraham Lincoln.

(2) The City of Springfield and Sangamon County welcome visitors from around the world and are the cornerstone of State government.

(b) The purpose of this Act is to ensure that the City of Springfield has a vibrant hospitality industry that is capable of hosting visitors, legislative advocates, and those doing business with the State.

Section 10. Definitions. In this Act:

"Authority" means the Capital Area Tourism Authority established by this Act.

"Board" means the Board of Trustees of the Authority.

"Hotel operator" has the meaning given in the Hotel Operators' Occupation Tax Act.

"Local sales taxes" has the meaning given in the Statewide Innovation Development and Economy Act.

"Master developer" has the meaning given in the Statewide Innovation Development and Economy Act.

"Project costs" has the meaning given in the Statewide Innovation Development and Economy Act.

"STAR bond district" has the meaning given in the Statewide Innovation Development and Economy Act.

"STAR bond project" has the meaning given in the Statewide Innovation Development and Economy Act.

Section 15. Creation of the Authority. The Capital Area Tourism Authority is hereby created as a political subdivision and unit of local government for the benefit of the general public and the promotion of business, industry, commerce, and tourism in the City of Springfield, Sangamon County, and the State of Illinois. The Authority shall have only those powers described in Section 20 of this Act, and its territorial jurisdiction shall extend over all territory in the City of Springfield that is located within the boundaries of Walnut Street on the west, North Grand Avenue on the north, 11th Street on the east, and South Grand Avenue on the south.

Section 20. Powers and duties of the Authority.

(a) If and only if the Sangamon County Board, by ordinance, imposes a tax under subsection (b-5) of Section 5-1030 of the Counties Code on all hotel operators who engage in business as a hotel operator within any STAR bond district that is established in the territory of the Authority and if the Sangamon County Board also resolves that all of the revenue generated from the tax under subsection (b-5) of Section 5-1030 of the Counties Code, as well as all of the tax receipts generated from local sales taxes within such a STAR bond district, shall be dedicated to the payment of the project costs for any STAR bond project in such a district and shall be considered pledged STAR revenues under the Statewide Innovation Development and Economy Act, then the Authority may exercise the powers set forth in subsection (c), as well as those powers ordinarily authorized by law, body politic, or municipal corporation for a political subdivision, for the purposes described in subsection (b).

(b) The Authority shall use the powers conferred on it under this Section to assist in the development, construction, and acquisition of industrial or commercial projects within its territorial jurisdiction and to promote business, industry, commerce, and tourism within Sangamon County and the State of Illinois.

(c) If and only if the conditions described in subsection (a) are satisfied, then the Authority shall possess all powers of a body politic or municipal corporation necessary and convenient to accomplish the purpose of this Act, including, but not limited to, the power:

(1) to exercise all of the powers afforded to a political subdivision pursuant to Section 5-100 of the Statewide Innovation Development and Economy Act in connection with a STAR bond district, including, but not limited to, establishing a STAR bond district and issuing STAR bonds to finance a STAR bond project;

(2) to enter into loans, contracts, agreements, and mortgages;

(3) to acquire by purchase, donation, or lease; to own, convey, lease, sell, mortgage, or otherwise dispose of interests in and to real or personal property; and to grant or acquire licenses, easements, and options with respect to property;

(4) to sue and be sued;

(5) to employ agents and employees necessary to carry out this Act's purposes;

(6) to have, use, and alter a common seal;

(7) to acquire, own, construct, equip, finance, lease, operate, and maintain grounds, buildings, facilities, property or any portion of a building, facility, or property owned or leased by the Authority to carry out the purposes and duties of this Act and to fix, charge, and collect fees, rents, and charges for the use of any building, facility, property or portion thereof;

(8) to adopt all ordinances, resolutions, by-laws, rules, and regulations necessary or proper to carry into effect the purpose of this Act and the powers granted to the Authority;

(9) to apply for, accept, and expend grants, appropriations, guarantees, donations of property or labor, or any other thing of value;

(10) to exercise the right of eminent domain by condemnation proceedings in the manner provided by the Eminent Domain Act;

(11) to finance, construct, equip, own, operate, and maintain any STAR bond project and to determine and direct the use of the local tax contribution and the State tax contribution for the approved STAR bond projects in the STAR bond district;

(12) to pay or cause to be paid STAR bond project costs and the principal and interest of any revenue bonds issued by the Authority;

(13) to borrow money and to issue revenue bonds, notes, or other evidences of indebtedness as provided for in the Statewide Innovation Development and Economy Act; and

(14) to exercise any and all other powers necessary to effectuate the purposes of this Act.

Section 25. Board members; officers; governance.

(a) The governing and administrative powers of the Authority shall be vested in its Board, which shall consist of 5 members appointed as follows:

(1) 3 members appointed by the Sangamon County Board;

(2) one member appointed by the Springfield City Council; and

(3) one member appointed by the Springfield Metropolitan Exposition and Auditorium Authority.

(b) All persons appointed as members of the Board shall be residents of Sangamon County and shall have recognized ability and experience in one or more of the following areas: economic development, finance, banking, commercial development, small business management, real estate development, community development, organized labor, units of local government, or civic, community, or neighborhood organization.

(c) The Chairperson of the Board shall be selected by a majority vote of the Board.

(d) The Sangamon County Board may remove any member of the Board in case of incompetency, neglect of duty, or malfeasance in office by a simple majority vote.

(e) Members of the Board shall hold office until their respective successors have been appointed. Any member may resign from his or her office. Vacancies shall be filled in the same manner as original appointments.

(f) Members of the Board shall serve without compensation for their services as members but may be reimbursed for all necessary expenses incurred in connection with the performance of their duties as members.

(g) The Board shall hold meetings quarterly or upon the call of the Chairperson of the Board or written notice of 3 members of the Board.

(h) A majority of the appointed members of the Board shall constitute a quorum for the transaction of business, and the Board may not meet or take any action without a quorum present. The affirmative vote of a majority of the members present at a meeting at which a quorum is present shall be necessary for any official act of the Authority.

(i) All members of the Board and employees of the Authority are subject to the Illinois Governmental Ethics Act, in accordance with its terms, and shall submit a statement of economic interests in accordance with Article 4A of the Illinois Governmental Ethics Act. Additionally, each Board member shall disclose to the Board outside sources of income and any business relationships in economic development consulting or lobbying. Reporting shall include the source of income, services provided, and timeline of when services were provided. If the source of income is a firm or organization with multiple clients, the report shall list all of the entities for which the individual provided services.

(j) The Board may appoint an Executive Director who shall have a background in finance, real estate or economic development, or administration. The Executive Director shall hold office at the discretion of the Board. The Executive Director shall be the chief administrative and operational officer of the Authority, shall direct and supervise its administrative affairs and general management, shall perform such other duties as may be prescribed from time to time by the Board, and shall receive compensation fixed by the Board. The Executive Director shall attend all meetings of the Board; however, no action of the Board or the Authority shall be invalid on account of the absence of the Executive Director from a meeting.

Section 30. Open meetings; record disclosure.

(a) The Authority is subject to the Open Meetings Act and the Freedom of Information Act. All rules, regulations, ordinances, resolutions and all proceedings of the Authority and all documents and records in its possession shall be public records, and open to public inspection, except such documents and records as shall be kept or prepared by the Board for use in negotiations, actions, or proceedings to which the Authority is a party.

(b) A contract or agreement entered into by the Authority must be posted on the Authority's website. The Authority shall provide a detailed report of the Authority's financial information on the Authority's website.

Section 35. Limitations. If any of the Authority's powers are exercised within the territorial jurisdiction of any municipality, all ordinances of that municipality shall remain in full force and effect and shall be controlling.

Section 40. Approval of STAR bond districts and STAR bond project.

(a) Notwithstanding any other provision of law, all real property in the territorial jurisdiction of the Authority shall automatically constitute an eligible area for purposes of approving a STAR bond district or STAR bond project in that jurisdiction under the Statewide Innovation Development and Economy Act, and the territorial boundaries of the STAR bond district may be entirely within the corporate limits of the City of Springfield.

(b) Notwithstanding any other provision of law, any number of STAR bond projects may be undertaken in a STAR bond district located in the territorial jurisdiction of the Authority provided that:

(1) each STAR bond project is approved under the Statewide Innovation Development and Economy Act; and

(2) the local tax contribution and the State tax contribution to the STAR bond projects are sufficient, together with other pledged STAR revenues, to support the financing of the STAR bond projects.

(c) Notwithstanding any other provision of law, to the extent that the local tax contribution and the State tax contribution, together with other available funds, aggregate an amount that exceeds those funds required to pay any project costs, including debt service on the STAR bonds issued in connection with the STAR bond project, the Authority may direct such excess local tax contribution and State tax contribution to finance additional STAR bond projects in the same STAR bond district.

Section 45. State tax contribution. Notwithstanding any other provision of law, any State sales tax increment pledged to pay STAR bonds in any STAR bond district located in the territorial jurisdiction of the Authority shall not be limited to 50% of the total project costs in the STAR bond district but rather will cover up to 100% of the total project costs.

Section 50. Master developer. Notwithstanding any other provision of law, the Authority shall own and control any STAR bond project and acreage on which the project is located in any STAR Bond district created in the territorial jurisdiction of the Authority instead of the Master Developer as required in the Statewide Innovation Development and Economy Act. The Master Developer shall not be required to provide equity in such STAR bond project.

Section 55. Reports; commitment notice. The Authority shall annually submit a report of its finances to the Auditor General. The Authority shall annually submit a report of its activities to the Governor and General Assembly.

The Authority shall provide notice to the General Assembly, the Department of Commerce and Economic Opportunity, and the Governor once the Authority enters into a commitment to support the financing of a project. The notice to the General Assembly shall be filed with the Clerk of the House of Representatives and the Secretary of the Senate, in electronic form only, in the manner that the Clerk and the Secretary shall direct.

Section 60. Exemption from taxation. All property of the Authority is exempt from taxation by the State or taxing units of the State.

Section 65. Investigatory authority. The Board may investigate conditions in which it has an interest within the territorial jurisdiction of the Authority, the enforcement of its ordinances, rules and regulations, and the action, conduct, and efficiency of all officers, agents and employees of the Authority. In the conduct of such investigations the Board may hold public hearings on its own motion. Each member of the Board shall have power to administer oaths, and the secretary, by order of the Board, shall issue subpoenas to secure the attendance and testimony of witnesses, and the production of books and papers relevant to such investigations and to any hearing before the Board or any member of the Board.

Any circuit court of this State, upon application of the Board or any Board member, may in its discretion compel the attendance of witnesses, the production of books and papers, and the giving of testimony before the Board or before any Board member or any officers' committee appointed by the Board, by attachment for contempt or otherwise in the same manner as the production of evidence may be compelled before the court.

Section 95. The Counties Code is amended by changing Section 5-1030 as follows:

(55 ILCS 5/5-1030) (from Ch. 34, par. 5-1030)

Sec. 5-1030. Hotel rooms, tax on gross rental receipts.

(a) The corporate authorities of any county may by ordinance impose a tax upon all persons engaged in such county in the business of renting, leasing or letting rooms in a hotel which is not located within a city, village, or incorporated town that imposes a tax under Section 8-3-14 of the Illinois Municipal Code, as defined in "The Hotel Operators' Occupation Tax Act", at a rate not to exceed 5% of the gross rental receipts from such renting, leasing or letting, excluding, however, from gross rental receipts, the proceeds of such renting, leasing or letting to permanent residents of that hotel, and may provide for the administration and enforcement of the tax, and for the collection thereof from the persons subject to the tax, as the corporate authorities determine to be necessary or practicable for the effective administration of the tax.

(b) With the consent of municipalities representing at least 67% of the population of Winnebago County, as determined by the 2010 federal decennial census and as expressed by resolution of the corporate authorities of those municipalities, the county board of Winnebago County may, by ordinance, impose a tax upon all persons engaged in the county in the business of renting, leasing, or letting rooms in a hotel that imposes a tax under Section 8-3-14 of the Illinois Municipal Code, as defined in the Hotel Operators' Occupation Tax Act, at a rate not to exceed 2% of the gross rental receipts from renting, leasing, or letting, excluding, however, from gross rental receipts, the proceeds of the renting, leasing, or letting to permanent residents of that hotel, and may provide for the administration and enforcement of the tax, and for the collection thereof from the persons subject to the tax, as the county board determines to be necessary or practicable for the effective administration of the tax. The tax shall be instituted on a county-wide basis and shall be in addition to any tax imposed by this or any other provision of law. The revenue generated under this subsection shall be accounted for and segregated from all other funds of the county and shall be utilized solely for either: (1) encouraging, supporting, marketing, constructing, or operating, either directly by the county or through other taxing bodies within the county, sports, arts, or other entertainment or tourism facilities or programs for the purpose of promoting tourism, competitiveness, job growth, and for the general health and well-being of the citizens of the county; or (2) payment towards debt services on bonds issued for the purposes set forth in this subsection.

(b-5) The county board of Sangamon County may, by ordinance, impose a tax upon all persons engaged in the county in the business of renting, leasing, or letting rooms in a hotel that imposes a tax under Section 8-3-14 of the Illinois Municipal Code, as defined in the Hotel Operators' Occupation Tax Act, at a rate not to exceed 3% of the gross rental receipts from renting, leasing, or letting, excluding, however, from gross rental receipts, the proceeds of the renting, leasing, or letting to permanent residents of that hotel, and may provide for the administration and enforcement of the tax, and for the collection thereof from the persons subject to the tax, as the county board determines to be necessary or practicable for the effective administration of the tax. The tax shall be instituted on a county-wide basis and shall be in addition to any tax imposed by this or any other provision of law. The revenue generated under this subsection shall be accounted for and segregated from all other funds of the county and shall be used solely for either: (1) encouraging, supporting, marketing, constructing, or operating, either directly by the county or through other taxing bodies within the county, sports, arts, or other entertainment or tourism facilities or programs for the purpose of promoting tourism, competitiveness, job growth, and for the general health and well-being of the citizens of the county; or (2) payment towards debt services on bonds issued for the purposes set forth in this subsection; or (3) the purposes described in the Capital Area Tourism Authority Act.

(c) A Tourism Facility Board shall be established, comprised of a representative from the county and from each municipality that has approved the imposition of the tax under subsection (b) of this Section.

(1) A Board member's vote is weighted based on the municipality's population relative to the population of the county, with the county representing the population within unincorporated areas of the county. Representatives from the Rockford Park District and Rockford Area Convention and Visitors Bureau shall serve as ex-officio members with no voting rights.

(2) The Board must meet not less frequently than once per year to direct the use of revenues collected from the tax imposed under subsection (b) of this Section that are not already directed for use pursuant to an intergovernmental agreement between the county and another entity represented on the Board, including the ex-officio members, and for any other reason the Board deems necessary. Affirmative actions of the Board shall require a weighted vote of Board members representing not less than 67% of the population of the county.

(3) The Board shall not be a separate unit of local government, shall have no paid staff, and members of the Board shall receive no compensation or reimbursement of expenses from proceeds of the tax imposed under subsection (b) of this Section.

(d) Persons subject to any tax imposed pursuant to authority granted by this Section may reimburse themselves for their tax liability for such tax by separately stating such tax as an additional charge, which charge may be stated in combination, in a single amount, with State tax imposed under "The Hotel Operators' Occupation Tax Act".

Nothing in this Section shall be construed to authorize a county to impose a tax upon the privilege of engaging in any business which under the Constitution of the United States may not be made the subject of taxation by this State.

An ordinance or resolution imposing a tax hereunder or effecting a change in the rate thereof shall be effective on the first day of the calendar month next following its passage and required publication.

The amounts collected by any county pursuant to this Section shall be expended to promote tourism; conventions; expositions; theatrical, sports and cultural activities within that county or otherwise to attract nonresident overnight visitors to the county.

Any county may agree with any unit of local government, including any authority defined as a metropolitan exposition, auditorium and office building authority, fair and exposition authority, exposition and auditorium authority, or civic center authority created pursuant to provisions of Illinois law and the territory of which unit of local government or authority is co-extensive with or wholly within such county, to impose and collect for a period not to exceed 40 years, any portion or all of the tax authorized pursuant to this Section and to transmit such tax so collected to such unit of local government or authority. The amount so paid shall be expended by any such unit of local government or authority for the purposes for which such tax is authorized. Any such agreement must be authorized by resolution or ordinance, as the case may be, of such county and unit of local government or authority, and such agreement may provide for the irrevocable imposition and collection of said tax at such rate, or amount as limited by a given rate, as may be agreed upon for the full period of time set forth in such agreement; and such agreement may further provide for any other terms as deemed necessary or advisable by such county and such unit of local government or authority. Any such agreement shall be binding and enforceable by either party to such agreement. Such agreement entered into pursuant to this Section shall not in any event constitute an indebtedness of such county subject to any limitation imposed by statute or otherwise.

(Source: P.A. 103-781, eff. 8-5-24.)

Section 97. Severability. The provisions of this Act are severable under Section 1.31 of the Statute on Statutes.

Section 99. Effective date. This Act takes effect upon becoming law.