Full Text of HB3418 100th General Assembly
HB3418ham001 100TH GENERAL ASSEMBLY | Rep. Sonya M. Harper Filed: 4/25/2017
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| 1 | | AMENDMENT TO HOUSE BILL 3418
| 2 | | AMENDMENT NO. ______. Amend House Bill 3418 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The State Finance Act is amended by adding | 5 | | Section 5.878 to Article 5 as follows: | 6 | | (30 ILCS 105/5.878 new) | 7 | | Sec. 5.878. The Urban Agricultural Zone Fund. | 8 | | Section 10. The Illinois Municipal Code is amended by | 9 | | adding Division 15.4 to Article 11 as follows: | 10 | | (65 ILCS 5/Art. 11 Div. 15.4 heading new) | 11 | | DIVISION 15.4. MUNICIPAL URBAN AGRICULTURAL ZONES | 12 | | (65 ILCS 5/11-15.4-5 new) | 13 | | Sec. 11-15.4-5. Definitions. As used in this Division: |
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| 1 | | "Agricultural product" means an agricultural, | 2 | | horticultural, viticultural, or vegetable product either in | 3 | | its natural or processed state, that has been produced, | 4 | | processed, or otherwise had value added to it in this State. | 5 | | "Agricultural product" includes, but is not limited to, growing | 6 | | of grapes that will be processed into wine; bees; honey; fish | 7 | | or other aquacultural product; planting seed; livestock or | 8 | | livestock product; forestry product; and poultry or poultry | 9 | | product. | 10 | | "Aquaculture" and "aquatic products" have the meanings | 11 | | given to those terms in Section 4 of the Aquaculture | 12 | | Development Act. | 13 | | "Blighted area" means that portion of a municipality within | 14 | | which the corporate authorities of the municipality determines | 15 | | that by reason of age, obsolescence, inadequate or outmoded | 16 | | design, or physical deterioration have become economic and | 17 | | social liabilities, and that these conditions are conducive to | 18 | | ill health, transmission of disease, crime, or inability to pay | 19 | | reasonable taxes. "Blighted area" does not include farmland | 20 | | assessed under Section 10-110 of the Property Tax Code. | 21 | | "Department" means the Department of Agriculture. | 22 | | "Domesticated animal" means cattle; calves; sheep; swine; | 23 | | ratite birds, including, but not limited to, ostrich and emu; | 24 | | llamas; alpaca; buffalo; elk documented as obtained from a | 25 | | legal source and not from the wild; goats; horses and other | 26 | | equines; or rabbits raised in confinement for human |
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| 1 | | consumption. | 2 | | "Grower UAZ" means a type of UAZ: | 3 | | (1) that can either grow produce, raise livestock, or | 4 | | produce other value-added agricultural products; and | 5 | | (2) that does not exceed 50 laying hens, 650 broiler | 6 | | chickens, or 30 domesticated animals. | 7 | | "Livestock" means cattle; calves; sheep; swine; ratite | 8 | | birds including but not limited to ostrich and emu; aquatic | 9 | | products obtained through aquaculture; llamas; alpaca; | 10 | | buffalo; elk documented as obtained from a legal source and not | 11 | | from the wild; goats; horses and other equines; or rabbits | 12 | | raised in confinement for human consumption. | 13 | | "Locally grown" means a product that was grown or raised in | 14 | | the same county or adjoining county in which the UAZ is | 15 | | located. | 16 | | "Meat" means any edible portion of livestock or poultry | 17 | | carcass. | 18 | | "Meat product" means anything containing meat intended for | 19 | | or capable of use for human consumption, which is derived, in | 20 | | whole or in part, from livestock or poultry. | 21 | | "Poultry" means any domesticated bird intended for human | 22 | | consumption. | 23 | | "Processing UAZ" means a type of UAZ: | 24 | | (1) that processes livestock or poultry for human | 25 | | consumption; | 26 | | (2) that meets federal and State processing laws and |
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| 1 | | standards; or | 2 | | (3) that is a qualifying small business approved by the | 3 | | Department. | 4 | | "Public colleges and universities" has the meaning given to | 5 | | that term in Section 5 of the Higher Education Veterans Service | 6 | | Act. | 7 | | "Qualifying small business" means those enterprises which | 8 | | are established within an Urban Agricultural Zone subsequent to | 9 | | its creation, and which meet the definition established for the | 10 | | federal Small Business Administration and set forth in Section | 11 | | 121.301 of Part 121 of Title 13 of the Code of Federal | 12 | | Regulations. | 13 | | "Sales tax amounts" means the amount of taxes paid under | 14 | | the Retailers' Occupation Tax Act, the Use Tax Act, the Service | 15 | | Use Tax Act, the Service Occupation Tax Act, the Municipal | 16 | | Retailers' Occupation Tax Act, and the Municipal Service | 17 | | Occupation Tax Act by retailers and servicemen on transactions | 18 | | at places located in a UAZ. | 19 | | "Urban agricultural zone" or "UAZ" means a zone within a | 20 | | metropolitan statistical area, as defined by the United States | 21 | | Office of Budget and Management, which has one or more of the | 22 | | following entities that is a qualifying small business, and | 23 | | approved by the Department, as follows: | 24 | | (1) any organization or person who grows produce or | 25 | | other agricultural products; | 26 | | (2) any organization or person that raises livestock or |
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| 1 | | poultry; | 2 | | (3) any organization or person who processes livestock | 3 | | or poultry; or | 4 | | (4) any organization that sells at a minimum 75% | 5 | | locally grown food. | 6 | | "Value-added agricultural products" means any product or | 7 | | products that are the result of: | 8 | | (1) using an agricultural product grown in this State | 9 | | to produce a meat or dairy product in this State; | 10 | | (2) a change in the physical state or form of the | 11 | | original agricultural product; | 12 | | (3) an agricultural product grown in this State which | 13 | | has had its value enhanced by special production methods | 14 | | such as organically grown products; or | 15 | | (4) a physical segregation of a commodity or | 16 | | agricultural product grown in this State that enhances its | 17 | | value such as identity preserved marketing systems. | 18 | | "Vending UAZ" means a type of UAZ: | 19 | | (1) that sells produce, meat, or locally grown | 20 | | value-added agricultural products; | 21 | | (2) that is able to accept food stamps under the | 22 | | provisions of the Supplemental Nutrition Assistance | 23 | | Program as a form of payment; and | 24 | | (3) that is a qualifying small business that is | 25 | | approved by the Department for a UAZ vendor license. |
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| 1 | | (65 ILCS 5/11-15.4-10 new) | 2 | | Sec. 11-15.4-10. Urban agricultural zone board. | 3 | | (a) The corporate authorities of a municipality planning to | 4 | | seek designation of an urban agricultural zone shall establish | 5 | | an urban agricultural zone board. There shall be 7 members on | 6 | | the board. One member of the board shall be appointed by the | 7 | | school district or districts located within the area proposed | 8 | | for designation as an urban agricultural zone. Two members of | 9 | | the board shall be appointed by other affected taxing units of | 10 | | local government. The remaining 4 members shall be appointed by | 11 | | the president or mayor of the municipality. The 4 members | 12 | | chosen by the president or mayor shall all be residents of the | 13 | | municipality in which the UAZ is to be located, and at least | 14 | | one of the 4 members shall have experience in or represent an | 15 | | organization associated with sustainable agriculture, urban | 16 | | farming, community gardening, or any of the activities or | 17 | | products authorized by this Division for UAZs. | 18 | | (b) The school district member and the 2 affected taxing | 19 | | unit of local government members shall each have initial terms | 20 | | of 5 years. Of the 4 members appointed by the president or | 21 | | mayor, 2 shall have initial terms of 4 years, and 2 shall have | 22 | | initial terms of 3 years. Thereafter, members shall serve terms | 23 | | of 5 years. Each member shall hold office until a successor has | 24 | | been appointed. All vacancies shall be filled in the same | 25 | | manner as the original appointment. For inefficiency, neglect | 26 | | of duty, or misconduct in office, a member of the board may be |
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| 1 | | removed by the applicable appointing authority. | 2 | | (c) The members of the board annually shall elect a chair | 3 | | from among the members. | 4 | | (d) A majority of the members shall constitute a quorum of | 5 | | the board for the purpose of conducting business and exercising | 6 | | the powers of the board and for all other purposes. Action may | 7 | | be taken by the board upon a vote of a majority of the members | 8 | | present. | 9 | | (e) The role of the board shall be to conduct the | 10 | | activities necessary to advise the corporate authorities of the | 11 | | municipality on the designation of an urban agricultural zone | 12 | | and any other advisory duties as determined by the corporate | 13 | | authorities of the municipality. The role of the board after | 14 | | the designation of an urban agricultural zone shall be review | 15 | | and assessment of zone activities. | 16 | | (65 ILCS 5/11-15.4-15 new) | 17 | | Sec. 11-15.4-15. Application for an urban agricultural | 18 | | zone; review; dissolution. | 19 | | (a) A person or organization may submit to the municipal | 20 | | clerk an application to develop a UAZ in a blighted area. The | 21 | | application shall demonstrate or identify on the application: | 22 | | (1) if the person or organization is a grower UAZ, | 23 | | processing UAZ, vending UAZ, or a combination of all three | 24 | | types of UAZs in which case the person or organization | 25 | | shall meet the requirements of each type of UAZ in order to |
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| 1 | | qualify; | 2 | | (2) the number of jobs to be created; | 3 | | (3) the types of products to be produced; | 4 | | (4) if applying for a vending UAZ, the ability to | 5 | | accept food stamps under the provisions of the Supplemental | 6 | | Nutrition Assistance Program if selling products to | 7 | | consumers; | 8 | | (5) the geographic description of the area that will be | 9 | | included in the UAZ; | 10 | | (6) all taxing units of local government impacted by | 11 | | the proposed UAZ; and | 12 | | (7) the amount of property taxes to be abated, if any, | 13 | | under Section 11-15.4-25, including which taxing units of | 14 | | local government would be impacted by the abatement. | 15 | | (b) A municipality shall review and modify the application | 16 | | as necessary before either approving or denying the request to | 17 | | establish a UAZ. | 18 | | (c) Approval of the UAZ by a municipality shall be reviewed | 19 | | 5 and 10 years after the development of the UAZ. After 25 | 20 | | years, the UAZ shall dissolve. If the municipality finds during | 21 | | its review that the UAZ is not meeting the requirements set out | 22 | | in this Division, the municipality may dissolve the UAZ by | 23 | | ordinance or resolution. | 24 | | (65 ILCS 5/11-15.4-20 new) | 25 | | Sec. 11-15.4-20. Notice and public hearing; urban |
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| 1 | | agricultural zone ordinance. Prior to the adoption of an | 2 | | ordinance designating an urban agricultural zone, the urban | 3 | | agricultural zone board shall fix a time and place for a public | 4 | | hearing and notify each taxing unit of local government located | 5 | | wholly or partially within the boundaries of the proposed urban | 6 | | agricultural zone. The board shall send, by certified mail, a | 7 | | notice of the hearing to all taxing units of local government | 8 | | and shall publish notice of such hearing in a newspaper of | 9 | | general circulation in the area to be affected by the | 10 | | designation at least 20 days prior to the hearing but not more | 11 | | than 30 days prior to the hearing. The notice shall state the | 12 | | time, location, date, and purpose of the hearing. At the public | 13 | | hearing, any interested person or affected taxing unit of local | 14 | | government may file with the board written objections or | 15 | | comments and may be heard orally in respect to, any issues | 16 | | embodied in the notice. The board shall hear and consider all | 17 | | objections, comments, and other evidence presented at the | 18 | | hearing. The hearing may be continued to another date without | 19 | | further notice other than a motion to be entered upon the | 20 | | minutes fixing the time and place of the subsequent hearing. | 21 | | Following the conclusion of the public hearing required | 22 | | under this Section, the corporate authorities of the | 23 | | municipality may adopt an ordinance designating an urban | 24 | | agricultural zone. | 25 | | (65 ILCS 5/11-15.4-25 new) |
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| 1 | | Sec. 11-15.4-25. Taxation of property; water rates and | 2 | | charges. | 3 | | (a) If authorized by the urban agricultural zone ordinance | 4 | | under Section 11-15.4-20, real property located within a UAZ | 5 | | that is used for growing or raising of agricultural products is | 6 | | not subject to assessment or payment of ad valorem taxes on | 7 | | real property imposed by the State or units of local government | 8 | | specified in the ordinance for a period of tax abatement of up | 9 | | to 25 years as specified by ordinance under Section 11-15.4-20 | 10 | | except in an amount not greater than the amount of taxes | 11 | | assessed in the levy year immediately preceding the levy year | 12 | | during which the UAZ was designated. The amounts of the tax | 13 | | assessed used for growing or raising of agricultural products | 14 | | may not be increased during the period stated in the ordinance | 15 | | as long as the real property is used in furtherance of the | 16 | | activities provided under this Division. At the conclusion of | 17 | | the period of abatement provided by the ordinance, the property | 18 | | used for growing or raising of agricultural products shall then | 19 | | be reassessed. If only a portion of real property is used as a | 20 | | UAZ, then only that portion of real property shall be exempt | 21 | | from assessment or payment of ad valorem taxes on the property | 22 | | as provided by this Section. Parcels of property assessed under | 23 | | Section 10-110 of the Property Tax Code are not eligible for | 24 | | the abatement provided in this subsection (a). | 25 | | (b) Any sales tax amounts received from the sale of | 26 | | agricultural products grown or produced and sold in the UAZ |
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| 1 | | shall be deposited in the Urban Agricultural Zone Fund | 2 | | established in Section 11-15.4-30 of this Division. An amount | 3 | | equal to 1% shall be retained by the Director of the Department | 4 | | of Revenue for deposit in the General Revenue Fund to offset | 5 | | the costs of collection. | 6 | | (c) Any entity providing water to the UAZ may authorize a | 7 | | water user who grows or raises agricultural products in the UAZ | 8 | | to (1) pay wholesale water rates, if available, or (2) pay 50% | 9 | | of the standard connection charge. | 10 | | (65 ILCS 5/11-15.4-30 new) | 11 | | Sec. 11-15.4-30. The Urban Agricultural Zone Fund. | 12 | | (a) The Urban Agricultural Zone Fund, a special fund | 13 | | created in the State treasury, shall consist of moneys | 14 | | collected under Section 5-45025 of Article 5 of the Counties | 15 | | Code and Section 11-15.4-25 of this Division. Except as | 16 | | provided for in subsection (b), the Comptroller shall order | 17 | | transferred before the end of each quarter of the fiscal year, | 18 | | and the Treasurer shall transfer, an amount equal to the moneys | 19 | | collected from the municipal UAZs within the previous quarter. | 20 | | (b) A school district or school districts that have a UAZ | 21 | | in their district territory may apply to the Department for | 22 | | money in the fund to be used for the development of curriculum | 23 | | on or the implementation of urban farming practices under the | 24 | | guidance of a public college or university. The funds are to be | 25 | | distributed on a competitive basis within the school district |
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| 1 | | or districts in which the UAZ is located pursuant to rules | 2 | | published by the Department, with special consideration given | 3 | | to the relative number of students eligible for free and | 4 | | reduced-price lunches attending the schools within the | 5 | | district or districts. The Department may designate up to 10% | 6 | | of moneys from quarterly sales tax amounts in the Agricultural | 7 | | Zone Fund to school districts under this subsection (b). The | 8 | | Department shall notify the Comptroller of any moneys awarded | 9 | | to a school district under this subsection (b) no later than 14 | 10 | | days before the end of each quarter and the Comptroller shall | 11 | | reduce the amount ordered transferred to the municipality by | 12 | | that amount. | 13 | | (65 ILCS 5/11-15.4-35 new) | 14 | | Sec. 11-15.4-35. Severability. The provisions of this | 15 | | Division are severable under Section 1.31 of the Statute on | 16 | | Statutes.
| 17 | | Section 99. Effective date. This Act takes effect July 1, | 18 | | 2017.".
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