HB5195 93RD GENERAL ASSEMBLY

LRB093 18471 SAS 44185 b

93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004
HB5195

Introduced 02/05/04, by Joseph M. Lyons

SYNOPSIS AS INTRODUCED:

New Act
35 ILCS 200/18-167 new

Creates the Banking Development District Act. Provides for the establishment of banking offices and services in underserved locations. Requires the Office of Banks and Real Estate to consult with the Department of Financial Institutions and the Department of Commerce and Economic Opportunity to adopt rules in accordance with the Administrative Procedure Act. Sets forth criteria for the establishment of banking development districts. Amends the Property Tax Code. Creates a new Section concerning the abatement of taxes in a banking district. Effective immediately.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning financial regulation.

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 Banking Development District Act.

Section 5. Banking development district program. There is hereby created a banking development district program, the purpose of which is to encourage the establishment of banking offices in geographic locations where there is the greatest need for banking services. The Office of Banks and Real Estate shall, in consultation with the Department of Financial Institutions and the Department of Commerce and Economic Opportunity, adopt rules in accordance with the Administrative Procedure Act that set forth the criteria for the establishment of banking development districts. The criteria shall include, but not be limited to, the following:

(1) the location, number, and proximity of sites where banking services are available within the district;

(2) the identification of consumer needs for banking services within the district;

(3) the economic viability and local credit needs of the community within the district;

(4) the existing commercial development within the district;

(5) the impact additional banking services would have on potential economic development in the district; and

(6) any other criteria that the Office of Banks and Real Estate deems appropriate.

Section 10. Definitions. As used in this Act:

"Bank" means a state bank, national bank, savings bank, federal savings bank, savings and loan association, federal savings and loan association, credit union, or trust company.

"Banking office" means the main banking premises or a branch of a bank.

"Commissioner" means the Commissioner of Banks and Real Estate.

"Improvement" does not include ordinary maintenance and repairs.

"Local government" means a county if the proposed bank is in an unincorporated area or a municipality if the proposed bank is in an incorporated area.

Section 15. Application. The governing board of a local government, in conjunction with a bank, may submit an application to the Commissioner for the designation of a banking development district. The boundaries of the proposed banking development district shall include property on which the bank plans to make improvements to establish a banking office. The application shall include the legal description of the property to be designated.

The Commissioner shall issue a determination on the application within 60 days after receiving the application. If an application is approved, the Commissioner shall transmit notification of the approval and a copy of all application materials to the applicants, the Director of the Department of Financial Institutions, the Director of the Department of Commerce and Economic Opportunities, the Governor, the State Comptroller, the President of the Senate, the Speaker of the House of Representatives, and the clerk of the county in which the property is located.

Section 20. Existing facilities. Notwithstanding any other provision of law, an application may be submitted by a local government in conjunction with a bank that has already opened a banking office within the area of the proposed district. In considering the criteria authorized under Section 5, the Commissioner must also take into account the importance and benefits of preserving the banking services offered by the existing banking offices.

Section 25. Abatement under the Property Tax Code. Upon designation of the banking development district by the Commissioner, the property of a bank located within a banking development district may be eligible for a tax abatement under Section 18-167 of the Property Tax Code.

Section 905. The Property Tax Code is amended by adding Section 18-167 as follows:

(35 ILCS 200/18-167 new)

Sec. 18-167. Abatement of taxes in a banking district.

(a) Definitions. For purposes of this Section, "bank" and "banking office" shall have the meanings prescribed to them in Section 10 of the Banking Development District Act.

(b) Any taxing district, upon a majority vote of its governing authority, may, after the determination of the assessed valuation of its property, adopt an ordinance or resolution ordering the clerk of the county or counties in which the taxing district is located to abate a portion of the taxing district's taxes on property of a bank that is used as a banking office in an area designated as a banking development district under the Banking Development District Act. Before ordering the abatement, the taxing district must hold a public hearing regarding the proposed abatement.

(i) The base amount of the abatement shall be the taxes arising from the new improvements or the renovation or rehabilitation of existing improvements since the designation of the banking development district, based on the equalized assessed value attributable to the new improvements or the renovation or rehabilitation of existing improvements for the first year they were addressed as completed as of January 1 of that tax year. Taxes attributable to increases in assessment due to ordinary maintenance and repair shall not be abated under this Section.

A copy of an abatement order adopted under this Section shall be delivered to the county clerk and to the board of review not later than July 1 of the assessment year to be first affected by the order. If it is delivered on or after that date, it will first affect the taxes extended on the assessment of the following year. The board of review shall, in the first year of the abatement, notify the bank to be affected and the taxing district granting the abatement of the list of parcels affected by an abatement under this Section and the assessed value attributable to the new improvements or the renovation or rehabilitation of existing improvements for the first year they were assessed as completed as of January 1 of that tax year. The affected bank or taxing district may file a complaint regarding the list of parcels and computation within 15 days after the mailing of the notification, and shall be given an opportunity to be heard. The board of review shall, in the first year of the abatement, upon delivering the assessment books to the county clerk, also deliver a list of parcels affected by an abatement under this Section and the assessed value attributable to new improvements or to the renovation or rehabilitation of existing improvements for the first year they were assessed as completed as of January 1 of that tax year.

The county clerk shall abate the base amount as follows:

(ii) The governing authority of a taxing district may abate the property taxes on a banking office that was already in existence when the banking development district was created under the Banking Development District Act. The county clerk shall abate the taxes in an amount that shall be determined by the governing authority of the taxing district. The abatement shall not exceed a period of 10 years in duration and 50% of the taxes attributable to the improvements in amount.

(c) If property approved for an abatement under this Section ceases to be used as a banking office, that property is no longer eligible for abatement of taxes. If an abatement is discontinued under this Section, the taxing district shall notify the county clerk of the discontinuation in writing no later than July 1 of the assessment year to be first affected by the change. If an abatement of taxes is again allowed under this Section for the same property, the property shall be eligible for only that portion of the abatement not already used.

Section 999. Effective date. This Act takes effect upon becoming law.