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Full Text of SB0217  102nd General Assembly

SB0217ham001 102ND GENERAL ASSEMBLY

Rep. Michael J. Zalewski

Filed: 10/26/2021

 

 


 

 


 
10200SB0217ham001LRB102 02726 HLH 30235 a

1
AMENDMENT TO SENATE BILL 217

2    AMENDMENT NO. ______. Amend Senate Bill 217 by replacing
3everything after the enacting clause with the following:
 
4    "Section 3. The Illinois Power Agency Act is amended by
5changing Section 1-130 as follows:
 
6    (20 ILCS 3855/1-130)
7    (Section scheduled to be repealed on January 1, 2022)
8    Sec. 1-130. Home rule preemption.
9    (a) The authorization to impose any new taxes or fees
10specifically related to the generation of electricity by, the
11capacity to generate electricity by, or the emissions into the
12atmosphere by electric generating facilities after the
13effective date of this Act is an exclusive power and function
14of the State. A home rule unit may not levy any new taxes or
15fees specifically related to the generation of electricity by,
16the capacity to generate electricity by, or the emissions into

 

 

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1the atmosphere by electric generating facilities after the
2effective date of this Act. This Section is a denial and
3limitation on home rule powers and functions under subsection
4(g) of Section 6 of Article VII of the Illinois Constitution.
5    (b) This Section is repealed on January 1, 2023 January 1,
62022.
7(Source: P.A. 100-1157, eff. 12-19-18; 101-639, eff. 6-12-20.)
 
8    Section 5. The Property Tax Code is amended by changing
9Sections 15-37 and 21-260 as follows:
 
10    (35 ILCS 200/15-37)
11    Sec. 15-37. Educational trade schools. Property that is
12owned or leased by a non-profit trust fund and used
13exclusively for the purposes of educating and training
14individuals for occupational, trade, and technical careers and
15is certified by the United States Department of Labor as
16registered with the Office of Apprenticeship is exempt.
17(Source: P.A. 102-16, eff. 6-17-21.)
 
18    (35 ILCS 200/21-260)
19    Sec. 21-260. Collector's scavenger sale. Upon the county
20collector's application under Section 21-145, to be known as
21the Scavenger Sale Application, the Court shall enter judgment
22for the general taxes, special taxes, special assessments,
23interest, penalties and costs as are included in the

 

 

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1advertisement and appear to be due thereon after allowing an
2opportunity to object and a hearing upon the objections as
3provided in Section 21-175, and order those properties sold by
4the County Collector at public sale, or by electronic
5automated sale if the collector chooses to conduct an
6electronic automated sale pursuant to Section 21-261, to the
7highest bidder for cash, notwithstanding the bid may be less
8than the full amount of taxes, special taxes, special
9assessments, interest, penalties and costs for which judgment
10has been entered.
11    (a) Conducting the sale; bidding sale - Bidding. All
12properties shall be offered for sale in consecutive order as
13they appear in the delinquent list. The minimum bid for any
14property shall be $250 or one-half of the tax if the total
15liability is less than $500. For in-person scavenger sales,
16the successful bidder shall pay the amount of the minimum bid
17to the County Collector by the end of the business day on which
18the bid was placed. That amount shall be paid in cash, by
19certified or cashier's check, by money order, or, if the
20successful bidder is a governmental unit, by a check issued by
21that governmental unit. For electronic automated scavenger
22sales, the successful bidder shall pay the minimum bid amount
23by the close of the business day on which the bid was placed.
24That amount shall be paid online via ACH debit or by the
25electronic payment method required by the county collector.
26For in-person scavenger sales, if the bid exceeds the minimum

 

 

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1bid, the successful bidder shall pay the balance of the bid to
2the county collector in cash, by certified or cashier's check,
3by money order, or, if the successful bidder is a governmental
4unit, by a check issued by that governmental unit by the close
5of the next business day. For electronic automated scavenger
6sales, the successful bidder shall pay, by the close of the
7next business day, the balance of the bid online via ACH debit
8or by the electronic payment method required by the county
9collector. If the minimum bid is not paid at the time of sale
10or if the balance is not paid by the close of the next business
11day, then the sale is void and the minimum bid, if paid, is
12forfeited to the county general fund. In that event, the
13property shall be reoffered for sale within 30 days of the last
14offering of property in regular order. The collector shall
15make available to the public a list of all properties to be
16included in any reoffering due to the voiding of the original
17sale. The collector is not required to serve or publish any
18other notice of the reoffering of those properties. In the
19event that any of the properties are not sold upon reoffering,
20or are sold for less than the amount of the original voided
21sale, the original bidder who failed to pay the bid amount
22shall remain liable for the unpaid balance of the bid in an
23action under Section 21-240. Liability shall not be reduced
24where the bidder upon reoffering also fails to pay the bid
25amount, and in that event both bidders shall remain liable for
26the unpaid balance of their respective bids. A sale of

 

 

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1properties under this Section shall not be final until
2confirmed by the court.
3    (b) Confirmation of sales. The county collector shall file
4his or her report of sale in the court within 30 days of the
5date of sale of each property. No notice of the county
6collector's application to confirm the sales shall be required
7except as prescribed by rule of the court. Upon confirmation,
8except in cases where the sale becomes void under Section
922-85, or in cases where the order of confirmation is vacated
10by the court, a sale under this Section shall extinguish the in
11rem lien of the general taxes, special taxes and special
12assessments for which judgment has been entered and a
13redemption shall not revive the lien. Confirmation of the sale
14shall in no event affect the owner's personal liability to pay
15the taxes, interest and penalties as provided in this Code or
16prevent institution of a proceeding under Section 21-440 to
17collect any amount that may remain due after the sale.
18    (c) Issuance of tax sale certificates. Upon confirmation
19of the sale, the County Clerk and the County Collector shall
20issue to the purchaser a certificate of purchase in the form
21prescribed by Section 21-250 as near as may be. A certificate
22of purchase shall not be issued to any person who is ineligible
23to bid at the sale or to receive a certificate of purchase
24under Section 21-265.
25    (d) Scavenger Tax Judgment, Sale and Redemption Record;
26sale Record - Sale of parcels not sold. The county collector

 

 

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1shall prepare a Scavenger Tax Judgment, Sale and Redemption
2Record. The county clerk shall write or stamp on the scavenger
3tax judgment, sale, forfeiture and redemption record opposite
4the description of any property offered for sale and not sold,
5or not confirmed for any reason, the words "offered but not
6sold". The properties which are offered for sale under this
7Section and not sold or not confirmed shall be offered for sale
8annually thereafter in the manner provided in this Section
9until sold, except in the case of mineral rights, which after
1010 consecutive years of being offered for sale under this
11Section and not sold or confirmed shall no longer be required
12to be offered for sale. At any time between annual sales the
13County Collector may advertise for sale any properties subject
14to sale under judgments for sale previously entered under this
15Section and not executed for any reason. The advertisement and
16sale shall be regulated by the provisions of this Code as far
17as applicable.
18    (e) Proceeding to tax deed. The owner of the certificate
19of purchase shall give notice as required by Sections 22-5
20through 22-30, and may extend the period of redemption as
21provided by Section 21-385. At any time within 6 months prior
22to expiration of the period of redemption from a sale under
23this Code, the owner of a certificate of purchase may file a
24petition and may obtain a tax deed under Sections 22-30
25through 22-55. Within 30 days from filing of the petition, the
26owner of a certificate must file with the clerk of the circuit

 

 

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1court county clerk the names and addresses of the owners of the
2property and those persons entitled to service of notice at
3their last known addresses. The clerk shall mail notice within
430 days from the date of the filing of addresses with the
5clerk. All proceedings for the issuance of a tax deed and all
6tax deeds for properties sold under this Section shall be
7subject to Sections 22-30 through 22-55. Deeds issued under
8this Section are subject to Section 22-70. This Section shall
9be liberally construed so that the deeds provided for in this
10Section convey merchantable title.
11    (f) Redemptions from scavenger sales. Redemptions may be
12made from sales under this Section in the same manner and upon
13the same terms and conditions as redemptions from sales made
14under the County Collector's annual application for judgment
15and order of sale, except that in lieu of penalty the person
16redeeming shall pay interest as follows if the sale occurs
17before September 9, 1993:
18        (1) If redeemed within the first 2 months from the
19    date of the sale, 3% per month or portion thereof upon the
20    amount for which the property was sold;
21        (2) If redeemed between 2 and 6 months from the date of
22    the sale, 12% of the amount for which the property was
23    sold;
24        (3) If redeemed between 6 and 12 months from the date
25    of the sale, 24% of the amount for which the property was
26    sold;

 

 

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1        (4) If redeemed between 12 and 18 months from the date
2    of the sale, 36% of the amount for which the property was
3    sold;
4        (5) If redeemed between 18 and 24 months from the date
5    of the sale, 48% of the amount for which the property was
6    sold;
7        (6) If redeemed after 24 months from the date of sale,
8    the 48% herein provided together with interest at 6% per
9    year thereafter.
10    If the sale occurs on or after September 9, 1993, the
11person redeeming shall pay interest on that part of the amount
12for which the property was sold equal to or less than the full
13amount of delinquent taxes, special assessments, penalties,
14interest, and costs, included in the judgment and order of
15sale as follows:
16        (1) If redeemed within the first 2 months from the
17    date of the sale, 3% per month upon the amount of taxes,
18    special assessments, penalties, interest, and costs due
19    for each of the first 2 months, or fraction thereof.
20        (2) If redeemed at any time between 2 and 6 months from
21    the date of the sale, 12% of the amount of taxes, special
22    assessments, penalties, interest, and costs due.
23        (3) If redeemed at any time between 6 and 12 months
24    from the date of the sale, 24% of the amount of taxes,
25    special assessments, penalties, interest, and costs due.
26        (4) If redeemed at any time between 12 and 18 months

 

 

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1    from the date of the sale, 36% of the amount of taxes,
2    special assessments, penalties, interest, and costs due.
3        (5) If redeemed at any time between 18 and 24 months
4    from the date of the sale, 48% of the amount of taxes,
5    special assessments, penalties, interest, and costs due.
6        (6) If redeemed after 24 months from the date of sale,
7    the 48% provided for the 24 months together with interest
8    at 6% per annum thereafter on the amount of taxes, special
9    assessments, penalties, interest, and costs due.
10    The person redeeming shall not be required to pay any
11interest on any part of the amount for which the property was
12sold that exceeds the full amount of delinquent taxes, special
13assessments, penalties, interest, and costs included in the
14judgment and order of sale.
15    Notwithstanding any other provision of this Section,
16except for owner-occupied single family residential units
17which are condominium units, cooperative units or dwellings,
18the amount required to be paid for redemption shall also
19include an amount equal to all delinquent taxes on the
20property which taxes were delinquent at the time of sale. The
21delinquent taxes shall be apportioned by the county collector
22among the taxing districts in which the property is situated
23in accordance with law. In the event that all moneys received
24from any sale held under this Section exceed an amount equal to
25all delinquent taxes on the property sold, which taxes were
26delinquent at the time of sale, together with all publication

 

 

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1and other costs associated with the sale, then, upon
2redemption, the County Collector and the County Clerk shall
3apply the excess amount to the cost of redemption.
4    (g) Bidding by county or other taxing districts. Any
5taxing district may bid at a scavenger sale. The county board
6of the county in which properties offered for sale under this
7Section are located may bid as trustee for all taxing
8districts having an interest in the taxes for the nonpayment
9of which the parcels are offered. The County shall apply on the
10bid the unpaid taxes due upon the property and no cash need be
11paid. The County or other taxing district acquiring a tax sale
12certificate shall take all steps necessary to acquire title to
13the property and may manage and operate the property so
14acquired.
15    When a county, or other taxing district within the county,
16is a petitioner for a tax deed, no filing fee shall be required
17on the petition. The county as a tax creditor and as trustee
18for other tax creditors, or other taxing district within the
19county shall not be required to allege and prove that all taxes
20and special assessments which become due and payable after the
21sale to the county have been paid. The county shall not be
22required to pay the subsequently accruing taxes or special
23assessments at any time. Upon the written request of the
24county board or its designee, the county collector shall not
25offer the property for sale at any tax sale subsequent to the
26sale of the property to the county under this Section. The lien

 

 

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1of taxes and special assessments which become due and payable
2after a sale to a county shall merge in the fee title of the
3county, or other taxing district, on the issuance of a deed.
4The County may sell the properties so acquired, or the
5certificate of purchase thereto, and the proceeds of the sale
6shall be distributed to the taxing districts in proportion to
7their respective interests therein. The presiding officer of
8the county board, with the advice and consent of the County
9Board, may appoint some officer or person to attend scavenger
10sales and bid on its behalf.
11    (h) Miscellaneous provisions. In the event that the tract
12of land or lot sold at any such sale is not redeemed within the
13time permitted by law and a tax deed is issued, all moneys that
14may be received from the sale of properties in excess of the
15delinquent taxes, together with all publication and other
16costs associated with the sale, shall, upon petition of any
17interested party to the court that issued the tax deed, be
18distributed by the County Collector pursuant to order of the
19court among the persons having legal or equitable interests in
20the property according to the fair value of their interests in
21the tract or lot. Section 21-415 does not apply to properties
22sold under this Section. Appeals may be taken from the orders
23and judgments entered under this Section as in other civil
24cases. The remedy herein provided is in addition to other
25remedies for the collection of delinquent taxes.
26    (i) The changes to this Section made by Public Act 95-477

 

 

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1this amendatory Act of the 95th General Assembly apply only to
2matters in which a petition for tax deed is filed on or after
3June 1, 2008 (the effective date of Public Act 95-477) this
4amendatory Act of the 95th General Assembly.
5(Source: P.A. 102-519, eff. 8-20-21; 102-528, eff. 1-1-22;
6revised 10-18-21.)
 
7    Section 10. The Illinois Municipal Code is amended by
8changing Section 11-74.4-3 as follows:
 
9    (65 ILCS 5/11-74.4-3)  (from Ch. 24, par. 11-74.4-3)
10    Sec. 11-74.4-3. Definitions. The following terms, wherever
11used or referred to in this Division 74.4 shall have the
12following respective meanings, unless in any case a different
13meaning clearly appears from the context.
14    (a) For any redevelopment project area that has been
15designated pursuant to this Section by an ordinance adopted
16prior to November 1, 1999 (the effective date of Public Act
1791-478), "blighted area" shall have the meaning set forth in
18this Section prior to that date.
19    On and after November 1, 1999, "blighted area" means any
20improved or vacant area within the boundaries of a
21redevelopment project area located within the territorial
22limits of the municipality where:
23        (1) If improved, industrial, commercial, and
24    residential buildings or improvements are detrimental to

 

 

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1    the public safety, health, or welfare because of a
2    combination of 5 or more of the following factors, each of
3    which is (i) present, with that presence documented, to a
4    meaningful extent so that a municipality may reasonably
5    find that the factor is clearly present within the intent
6    of the Act and (ii) reasonably distributed throughout the
7    improved part of the redevelopment project area:
8            (A) Dilapidation. An advanced state of disrepair
9        or neglect of necessary repairs to the primary
10        structural components of buildings or improvements in
11        such a combination that a documented building
12        condition analysis determines that major repair is
13        required or the defects are so serious and so
14        extensive that the buildings must be removed.
15            (B) Obsolescence. The condition or process of
16        falling into disuse. Structures have become ill-suited
17        for the original use.
18            (C) Deterioration. With respect to buildings,
19        defects including, but not limited to, major defects
20        in the secondary building components such as doors,
21        windows, porches, gutters and downspouts, and fascia.
22        With respect to surface improvements, that the
23        condition of roadways, alleys, curbs, gutters,
24        sidewalks, off-street parking, and surface storage
25        areas evidence deterioration, including, but not
26        limited to, surface cracking, crumbling, potholes,

 

 

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1        depressions, loose paving material, and weeds
2        protruding through paved surfaces.
3            (D) Presence of structures below minimum code
4        standards. All structures that do not meet the
5        standards of zoning, subdivision, building, fire, and
6        other governmental codes applicable to property, but
7        not including housing and property maintenance codes.
8            (E) Illegal use of individual structures. The use
9        of structures in violation of applicable federal,
10        State, or local laws, exclusive of those applicable to
11        the presence of structures below minimum code
12        standards.
13            (F) Excessive vacancies. The presence of buildings
14        that are unoccupied or under-utilized and that
15        represent an adverse influence on the area because of
16        the frequency, extent, or duration of the vacancies.
17            (G) Lack of ventilation, light, or sanitary
18        facilities. The absence of adequate ventilation for
19        light or air circulation in spaces or rooms without
20        windows, or that require the removal of dust, odor,
21        gas, smoke, or other noxious airborne materials.
22        Inadequate natural light and ventilation means the
23        absence of skylights or windows for interior spaces or
24        rooms and improper window sizes and amounts by room
25        area to window area ratios. Inadequate sanitary
26        facilities refers to the absence or inadequacy of

 

 

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1        garbage storage and enclosure, bathroom facilities,
2        hot water and kitchens, and structural inadequacies
3        preventing ingress and egress to and from all rooms
4        and units within a building.
5            (H) Inadequate utilities. Underground and overhead
6        utilities such as storm sewers and storm drainage,
7        sanitary sewers, water lines, and gas, telephone, and
8        electrical services that are shown to be inadequate.
9        Inadequate utilities are those that are: (i) of
10        insufficient capacity to serve the uses in the
11        redevelopment project area, (ii) deteriorated,
12        antiquated, obsolete, or in disrepair, or (iii)
13        lacking within the redevelopment project area.
14            (I) Excessive land coverage and overcrowding of
15        structures and community facilities. The
16        over-intensive use of property and the crowding of
17        buildings and accessory facilities onto a site.
18        Examples of problem conditions warranting the
19        designation of an area as one exhibiting excessive
20        land coverage are: (i) the presence of buildings
21        either improperly situated on parcels or located on
22        parcels of inadequate size and shape in relation to
23        present-day standards of development for health and
24        safety and (ii) the presence of multiple buildings on
25        a single parcel. For there to be a finding of excessive
26        land coverage, these parcels must exhibit one or more

 

 

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1        of the following conditions: insufficient provision
2        for light and air within or around buildings,
3        increased threat of spread of fire due to the close
4        proximity of buildings, lack of adequate or proper
5        access to a public right-of-way, lack of reasonably
6        required off-street parking, or inadequate provision
7        for loading and service.
8            (J) Deleterious land use or layout. The existence
9        of incompatible land-use relationships, buildings
10        occupied by inappropriate mixed-uses, or uses
11        considered to be noxious, offensive, or unsuitable for
12        the surrounding area.
13            (K) Environmental clean-up. The proposed
14        redevelopment project area has incurred Illinois
15        Environmental Protection Agency or United States
16        Environmental Protection Agency remediation costs for,
17        or a study conducted by an independent consultant
18        recognized as having expertise in environmental
19        remediation has determined a need for, the clean-up of
20        hazardous waste, hazardous substances, or underground
21        storage tanks required by State or federal law,
22        provided that the remediation costs constitute a
23        material impediment to the development or
24        redevelopment of the redevelopment project area.
25            (L) Lack of community planning. The proposed
26        redevelopment project area was developed prior to or

 

 

10200SB0217ham001- 17 -LRB102 02726 HLH 30235 a

1        without the benefit or guidance of a community plan.
2        This means that the development occurred prior to the
3        adoption by the municipality of a comprehensive or
4        other community plan or that the plan was not followed
5        at the time of the area's development. This factor
6        must be documented by evidence of adverse or
7        incompatible land-use relationships, inadequate street
8        layout, improper subdivision, parcels of inadequate
9        shape and size to meet contemporary development
10        standards, or other evidence demonstrating an absence
11        of effective community planning.
12            (M) The total equalized assessed value of the
13        proposed redevelopment project area has declined for 3
14        of the last 5 calendar years prior to the year in which
15        the redevelopment project area is designated or is
16        increasing at an annual rate that is less than the
17        balance of the municipality for 3 of the last 5
18        calendar years for which information is available or
19        is increasing at an annual rate that is less than the
20        Consumer Price Index for All Urban Consumers published
21        by the United States Department of Labor or successor
22        agency for 3 of the last 5 calendar years prior to the
23        year in which the redevelopment project area is
24        designated.
25        (2) If vacant, the sound growth of the redevelopment
26    project area is impaired by a combination of 2 or more of

 

 

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1    the following factors, each of which is (i) present, with
2    that presence documented, to a meaningful extent so that a
3    municipality may reasonably find that the factor is
4    clearly present within the intent of the Act and (ii)
5    reasonably distributed throughout the vacant part of the
6    redevelopment project area to which it pertains:
7            (A) Obsolete platting of vacant land that results
8        in parcels of limited or narrow size or configurations
9        of parcels of irregular size or shape that would be
10        difficult to develop on a planned basis and in a manner
11        compatible with contemporary standards and
12        requirements, or platting that failed to create
13        rights-of-ways for streets or alleys or that created
14        inadequate right-of-way widths for streets, alleys, or
15        other public rights-of-way or that omitted easements
16        for public utilities.
17            (B) Diversity of ownership of parcels of vacant
18        land sufficient in number to retard or impede the
19        ability to assemble the land for development.
20            (C) Tax and special assessment delinquencies exist
21        or the property has been the subject of tax sales under
22        the Property Tax Code within the last 5 years.
23            (D) Deterioration of structures or site
24        improvements in neighboring areas adjacent to the
25        vacant land.
26            (E) The area has incurred Illinois Environmental

 

 

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1        Protection Agency or United States Environmental
2        Protection Agency remediation costs for, or a study
3        conducted by an independent consultant recognized as
4        having expertise in environmental remediation has
5        determined a need for, the clean-up of hazardous
6        waste, hazardous substances, or underground storage
7        tanks required by State or federal law, provided that
8        the remediation costs constitute a material impediment
9        to the development or redevelopment of the
10        redevelopment project area.
11            (F) The total equalized assessed value of the
12        proposed redevelopment project area has declined for 3
13        of the last 5 calendar years prior to the year in which
14        the redevelopment project area is designated or is
15        increasing at an annual rate that is less than the
16        balance of the municipality for 3 of the last 5
17        calendar years for which information is available or
18        is increasing at an annual rate that is less than the
19        Consumer Price Index for All Urban Consumers published
20        by the United States Department of Labor or successor
21        agency for 3 of the last 5 calendar years prior to the
22        year in which the redevelopment project area is
23        designated.
24        (3) If vacant, the sound growth of the redevelopment
25    project area is impaired by one of the following factors
26    that (i) is present, with that presence documented, to a

 

 

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1    meaningful extent so that a municipality may reasonably
2    find that the factor is clearly present within the intent
3    of the Act and (ii) is reasonably distributed throughout
4    the vacant part of the redevelopment project area to which
5    it pertains:
6            (A) The area consists of one or more unused
7        quarries, mines, or strip mine ponds.
8            (B) The area consists of unused rail yards, rail
9        tracks, or railroad rights-of-way.
10            (C) The area, prior to its designation, is subject
11        to (i) chronic flooding that adversely impacts on real
12        property in the area as certified by a registered
13        professional engineer or appropriate regulatory agency
14        or (ii) surface water that discharges from all or a
15        part of the area and contributes to flooding within
16        the same watershed, but only if the redevelopment
17        project provides for facilities or improvements to
18        contribute to the alleviation of all or part of the
19        flooding.
20            (D) The area consists of an unused or illegal
21        disposal site containing earth, stone, building
22        debris, or similar materials that were removed from
23        construction, demolition, excavation, or dredge sites.
24            (E) Prior to November 1, 1999, the area is not less
25        than 50 nor more than 100 acres and 75% of which is
26        vacant (notwithstanding that the area has been used

 

 

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1        for commercial agricultural purposes within 5 years
2        prior to the designation of the redevelopment project
3        area), and the area meets at least one of the factors
4        itemized in paragraph (1) of this subsection, the area
5        has been designated as a town or village center by
6        ordinance or comprehensive plan adopted prior to
7        January 1, 1982, and the area has not been developed
8        for that designated purpose.
9            (F) The area qualified as a blighted improved area
10        immediately prior to becoming vacant, unless there has
11        been substantial private investment in the immediately
12        surrounding area.
13    (b) For any redevelopment project area that has been
14designated pursuant to this Section by an ordinance adopted
15prior to November 1, 1999 (the effective date of Public Act
1691-478), "conservation area" shall have the meaning set forth
17in this Section prior to that date.
18    On and after November 1, 1999, "conservation area" means
19any improved area within the boundaries of a redevelopment
20project area located within the territorial limits of the
21municipality in which 50% or more of the structures in the area
22have an age of 35 years or more. Such an area is not yet a
23blighted area but because of a combination of 3 or more of the
24following factors is detrimental to the public safety, health,
25morals or welfare and such an area may become a blighted area:
26        (1) Dilapidation. An advanced state of disrepair or

 

 

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1    neglect of necessary repairs to the primary structural
2    components of buildings or improvements in such a
3    combination that a documented building condition analysis
4    determines that major repair is required or the defects
5    are so serious and so extensive that the buildings must be
6    removed.
7        (2) Obsolescence. The condition or process of falling
8    into disuse. Structures have become ill-suited for the
9    original use.
10        (3) Deterioration. With respect to buildings, defects
11    including, but not limited to, major defects in the
12    secondary building components such as doors, windows,
13    porches, gutters and downspouts, and fascia. With respect
14    to surface improvements, that the condition of roadways,
15    alleys, curbs, gutters, sidewalks, off-street parking, and
16    surface storage areas evidence deterioration, including,
17    but not limited to, surface cracking, crumbling, potholes,
18    depressions, loose paving material, and weeds protruding
19    through paved surfaces.
20        (4) Presence of structures below minimum code
21    standards. All structures that do not meet the standards
22    of zoning, subdivision, building, fire, and other
23    governmental codes applicable to property, but not
24    including housing and property maintenance codes.
25        (5) Illegal use of individual structures. The use of
26    structures in violation of applicable federal, State, or

 

 

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1    local laws, exclusive of those applicable to the presence
2    of structures below minimum code standards.
3        (6) Excessive vacancies. The presence of buildings
4    that are unoccupied or under-utilized and that represent
5    an adverse influence on the area because of the frequency,
6    extent, or duration of the vacancies.
7        (7) Lack of ventilation, light, or sanitary
8    facilities. The absence of adequate ventilation for light
9    or air circulation in spaces or rooms without windows, or
10    that require the removal of dust, odor, gas, smoke, or
11    other noxious airborne materials. Inadequate natural light
12    and ventilation means the absence or inadequacy of
13    skylights or windows for interior spaces or rooms and
14    improper window sizes and amounts by room area to window
15    area ratios. Inadequate sanitary facilities refers to the
16    absence or inadequacy of garbage storage and enclosure,
17    bathroom facilities, hot water and kitchens, and
18    structural inadequacies preventing ingress and egress to
19    and from all rooms and units within a building.
20        (8) Inadequate utilities. Underground and overhead
21    utilities such as storm sewers and storm drainage,
22    sanitary sewers, water lines, and gas, telephone, and
23    electrical services that are shown to be inadequate.
24    Inadequate utilities are those that are: (i) of
25    insufficient capacity to serve the uses in the
26    redevelopment project area, (ii) deteriorated, antiquated,

 

 

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1    obsolete, or in disrepair, or (iii) lacking within the
2    redevelopment project area.
3        (9) Excessive land coverage and overcrowding of
4    structures and community facilities. The over-intensive
5    use of property and the crowding of buildings and
6    accessory facilities onto a site. Examples of problem
7    conditions warranting the designation of an area as one
8    exhibiting excessive land coverage are: the presence of
9    buildings either improperly situated on parcels or located
10    on parcels of inadequate size and shape in relation to
11    present-day standards of development for health and safety
12    and the presence of multiple buildings on a single parcel.
13    For there to be a finding of excessive land coverage,
14    these parcels must exhibit one or more of the following
15    conditions: insufficient provision for light and air
16    within or around buildings, increased threat of spread of
17    fire due to the close proximity of buildings, lack of
18    adequate or proper access to a public right-of-way, lack
19    of reasonably required off-street parking, or inadequate
20    provision for loading and service.
21        (10) Deleterious land use or layout. The existence of
22    incompatible land-use relationships, buildings occupied by
23    inappropriate mixed-uses, or uses considered to be
24    noxious, offensive, or unsuitable for the surrounding
25    area.
26        (11) Lack of community planning. The proposed

 

 

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1    redevelopment project area was developed prior to or
2    without the benefit or guidance of a community plan. This
3    means that the development occurred prior to the adoption
4    by the municipality of a comprehensive or other community
5    plan or that the plan was not followed at the time of the
6    area's development. This factor must be documented by
7    evidence of adverse or incompatible land-use
8    relationships, inadequate street layout, improper
9    subdivision, parcels of inadequate shape and size to meet
10    contemporary development standards, or other evidence
11    demonstrating an absence of effective community planning.
12        (12) The area has incurred Illinois Environmental
13    Protection Agency or United States Environmental
14    Protection Agency remediation costs for, or a study
15    conducted by an independent consultant recognized as
16    having expertise in environmental remediation has
17    determined a need for, the clean-up of hazardous waste,
18    hazardous substances, or underground storage tanks
19    required by State or federal law, provided that the
20    remediation costs constitute a material impediment to the
21    development or redevelopment of the redevelopment project
22    area.
23        (13) The total equalized assessed value of the
24    proposed redevelopment project area has declined for 3 of
25    the last 5 calendar years for which information is
26    available or is increasing at an annual rate that is less

 

 

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1    than the balance of the municipality for 3 of the last 5
2    calendar years for which information is available or is
3    increasing at an annual rate that is less than the
4    Consumer Price Index for All Urban Consumers published by
5    the United States Department of Labor or successor agency
6    for 3 of the last 5 calendar years for which information is
7    available.
8    (c) "Industrial park" means an area in a blighted or
9conservation area suitable for use by any manufacturing,
10industrial, research or transportation enterprise, of
11facilities to include but not be limited to factories, mills,
12processing plants, assembly plants, packing plants,
13fabricating plants, industrial distribution centers,
14warehouses, repair overhaul or service facilities, freight
15terminals, research facilities, test facilities or railroad
16facilities.
17    (d) "Industrial park conservation area" means an area
18within the boundaries of a redevelopment project area located
19within the territorial limits of a municipality that is a
20labor surplus municipality or within 1 1/2 miles of the
21territorial limits of a municipality that is a labor surplus
22municipality if the area is annexed to the municipality; which
23area is zoned as industrial no later than at the time the
24municipality by ordinance designates the redevelopment project
25area, and which area includes both vacant land suitable for
26use as an industrial park and a blighted area or conservation

 

 

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1area contiguous to such vacant land.
2    (e) "Labor surplus municipality" means a municipality in
3which, at any time during the 6 months before the municipality
4by ordinance designates an industrial park conservation area,
5the unemployment rate was over 6% and was also 100% or more of
6the national average unemployment rate for that same time as
7published in the United States Department of Labor Bureau of
8Labor Statistics publication entitled "The Employment
9Situation" or its successor publication. For the purpose of
10this subsection, if unemployment rate statistics for the
11municipality are not available, the unemployment rate in the
12municipality shall be deemed to be the same as the
13unemployment rate in the principal county in which the
14municipality is located.
15    (f) "Municipality" shall mean a city, village,
16incorporated town, or a township that is located in the
17unincorporated portion of a county with 3 million or more
18inhabitants, if the county adopted an ordinance that approved
19the township's redevelopment plan.
20    (g) "Initial Sales Tax Amounts" means the amount of taxes
21paid under the Retailers' Occupation Tax Act, Use Tax Act,
22Service Use Tax Act, the Service Occupation Tax Act, the
23Municipal Retailers' Occupation Tax Act, and the Municipal
24Service Occupation Tax Act by retailers and servicemen on
25transactions at places located in a State Sales Tax Boundary
26during the calendar year 1985.

 

 

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1    (g-1) "Revised Initial Sales Tax Amounts" means the amount
2of taxes paid under the Retailers' Occupation Tax Act, Use Tax
3Act, Service Use Tax Act, the Service Occupation Tax Act, the
4Municipal Retailers' Occupation Tax Act, and the Municipal
5Service Occupation Tax Act by retailers and servicemen on
6transactions at places located within the State Sales Tax
7Boundary revised pursuant to Section 11-74.4-8a(9) of this
8Act.
9    (h) "Municipal Sales Tax Increment" means an amount equal
10to the increase in the aggregate amount of taxes paid to a
11municipality from the Local Government Tax Fund arising from
12sales by retailers and servicemen within the redevelopment
13project area or State Sales Tax Boundary, as the case may be,
14for as long as the redevelopment project area or State Sales
15Tax Boundary, as the case may be, exist over and above the
16aggregate amount of taxes as certified by the Illinois
17Department of Revenue and paid under the Municipal Retailers'
18Occupation Tax Act and the Municipal Service Occupation Tax
19Act by retailers and servicemen, on transactions at places of
20business located in the redevelopment project area or State
21Sales Tax Boundary, as the case may be, during the base year
22which shall be the calendar year immediately prior to the year
23in which the municipality adopted tax increment allocation
24financing. For purposes of computing the aggregate amount of
25such taxes for base years occurring prior to 1985, the
26Department of Revenue shall determine the Initial Sales Tax

 

 

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1Amounts for such taxes and deduct therefrom an amount equal to
24% of the aggregate amount of taxes per year for each year the
3base year is prior to 1985, but not to exceed a total deduction
4of 12%. The amount so determined shall be known as the
5"Adjusted Initial Sales Tax Amounts". For purposes of
6determining the Municipal Sales Tax Increment, the Department
7of Revenue shall for each period subtract from the amount paid
8to the municipality from the Local Government Tax Fund arising
9from sales by retailers and servicemen on transactions located
10in the redevelopment project area or the State Sales Tax
11Boundary, as the case may be, the certified Initial Sales Tax
12Amounts, the Adjusted Initial Sales Tax Amounts or the Revised
13Initial Sales Tax Amounts for the Municipal Retailers'
14Occupation Tax Act and the Municipal Service Occupation Tax
15Act. For the State Fiscal Year 1989, this calculation shall be
16made by utilizing the calendar year 1987 to determine the tax
17amounts received. For the State Fiscal Year 1990, this
18calculation shall be made by utilizing the period from January
191, 1988, until September 30, 1988, to determine the tax
20amounts received from retailers and servicemen pursuant to the
21Municipal Retailers' Occupation Tax and the Municipal Service
22Occupation Tax Act, which shall have deducted therefrom
23nine-twelfths of the certified Initial Sales Tax Amounts, the
24Adjusted Initial Sales Tax Amounts or the Revised Initial
25Sales Tax Amounts as appropriate. For the State Fiscal Year
261991, this calculation shall be made by utilizing the period

 

 

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1from October 1, 1988, to June 30, 1989, to determine the tax
2amounts received from retailers and servicemen pursuant to the
3Municipal Retailers' Occupation Tax and the Municipal Service
4Occupation Tax Act which shall have deducted therefrom
5nine-twelfths of the certified Initial Sales Tax Amounts,
6Adjusted Initial Sales Tax Amounts or the Revised Initial
7Sales Tax Amounts as appropriate. For every State Fiscal Year
8thereafter, the applicable period shall be the 12 months
9beginning July 1 and ending June 30 to determine the tax
10amounts received which shall have deducted therefrom the
11certified Initial Sales Tax Amounts, the Adjusted Initial
12Sales Tax Amounts or the Revised Initial Sales Tax Amounts, as
13the case may be.
14    (i) "Net State Sales Tax Increment" means the sum of the
15following: (a) 80% of the first $100,000 of State Sales Tax
16Increment annually generated within a State Sales Tax
17Boundary; (b) 60% of the amount in excess of $100,000 but not
18exceeding $500,000 of State Sales Tax Increment annually
19generated within a State Sales Tax Boundary; and (c) 40% of all
20amounts in excess of $500,000 of State Sales Tax Increment
21annually generated within a State Sales Tax Boundary. If,
22however, a municipality established a tax increment financing
23district in a county with a population in excess of 3,000,000
24before January 1, 1986, and the municipality entered into a
25contract or issued bonds after January 1, 1986, but before
26December 31, 1986, to finance redevelopment project costs

 

 

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1within a State Sales Tax Boundary, then the Net State Sales Tax
2Increment means, for the fiscal years beginning July 1, 1990,
3and July 1, 1991, 100% of the State Sales Tax Increment
4annually generated within a State Sales Tax Boundary; and
5notwithstanding any other provision of this Act, for those
6fiscal years the Department of Revenue shall distribute to
7those municipalities 100% of their Net State Sales Tax
8Increment before any distribution to any other municipality
9and regardless of whether or not those other municipalities
10will receive 100% of their Net State Sales Tax Increment. For
11Fiscal Year 1999, and every year thereafter until the year
122007, for any municipality that has not entered into a
13contract or has not issued bonds prior to June 1, 1988 to
14finance redevelopment project costs within a State Sales Tax
15Boundary, the Net State Sales Tax Increment shall be
16calculated as follows: By multiplying the Net State Sales Tax
17Increment by 90% in the State Fiscal Year 1999; 80% in the
18State Fiscal Year 2000; 70% in the State Fiscal Year 2001; 60%
19in the State Fiscal Year 2002; 50% in the State Fiscal Year
202003; 40% in the State Fiscal Year 2004; 30% in the State
21Fiscal Year 2005; 20% in the State Fiscal Year 2006; and 10% in
22the State Fiscal Year 2007. No payment shall be made for State
23Fiscal Year 2008 and thereafter.
24    Municipalities that issued bonds in connection with a
25redevelopment project in a redevelopment project area within
26the State Sales Tax Boundary prior to July 29, 1991, or that

 

 

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1entered into contracts in connection with a redevelopment
2project in a redevelopment project area before June 1, 1988,
3shall continue to receive their proportional share of the
4Illinois Tax Increment Fund distribution until the date on
5which the redevelopment project is completed or terminated.
6If, however, a municipality that issued bonds in connection
7with a redevelopment project in a redevelopment project area
8within the State Sales Tax Boundary prior to July 29, 1991
9retires the bonds prior to June 30, 2007 or a municipality that
10entered into contracts in connection with a redevelopment
11project in a redevelopment project area before June 1, 1988
12completes the contracts prior to June 30, 2007, then so long as
13the redevelopment project is not completed or is not
14terminated, the Net State Sales Tax Increment shall be
15calculated, beginning on the date on which the bonds are
16retired or the contracts are completed, as follows: By
17multiplying the Net State Sales Tax Increment by 60% in the
18State Fiscal Year 2002; 50% in the State Fiscal Year 2003; 40%
19in the State Fiscal Year 2004; 30% in the State Fiscal Year
202005; 20% in the State Fiscal Year 2006; and 10% in the State
21Fiscal Year 2007. No payment shall be made for State Fiscal
22Year 2008 and thereafter. Refunding of any bonds issued prior
23to July 29, 1991, shall not alter the Net State Sales Tax
24Increment.
25    (j) "State Utility Tax Increment Amount" means an amount
26equal to the aggregate increase in State electric and gas tax

 

 

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1charges imposed on owners and tenants, other than residential
2customers, of properties located within the redevelopment
3project area under Section 9-222 of the Public Utilities Act,
4over and above the aggregate of such charges as certified by
5the Department of Revenue and paid by owners and tenants,
6other than residential customers, of properties within the
7redevelopment project area during the base year, which shall
8be the calendar year immediately prior to the year of the
9adoption of the ordinance authorizing tax increment allocation
10financing.
11    (k) "Net State Utility Tax Increment" means the sum of the
12following: (a) 80% of the first $100,000 of State Utility Tax
13Increment annually generated by a redevelopment project area;
14(b) 60% of the amount in excess of $100,000 but not exceeding
15$500,000 of the State Utility Tax Increment annually generated
16by a redevelopment project area; and (c) 40% of all amounts in
17excess of $500,000 of State Utility Tax Increment annually
18generated by a redevelopment project area. For the State
19Fiscal Year 1999, and every year thereafter until the year
202007, for any municipality that has not entered into a
21contract or has not issued bonds prior to June 1, 1988 to
22finance redevelopment project costs within a redevelopment
23project area, the Net State Utility Tax Increment shall be
24calculated as follows: By multiplying the Net State Utility
25Tax Increment by 90% in the State Fiscal Year 1999; 80% in the
26State Fiscal Year 2000; 70% in the State Fiscal Year 2001; 60%

 

 

10200SB0217ham001- 34 -LRB102 02726 HLH 30235 a

1in the State Fiscal Year 2002; 50% in the State Fiscal Year
22003; 40% in the State Fiscal Year 2004; 30% in the State
3Fiscal Year 2005; 20% in the State Fiscal Year 2006; and 10% in
4the State Fiscal Year 2007. No payment shall be made for the
5State Fiscal Year 2008 and thereafter.
6    Municipalities that issue bonds in connection with the
7redevelopment project during the period from June 1, 1988
8until 3 years after the effective date of this Amendatory Act
9of 1988 shall receive the Net State Utility Tax Increment,
10subject to appropriation, for 15 State Fiscal Years after the
11issuance of such bonds. For the 16th through the 20th State
12Fiscal Years after issuance of the bonds, the Net State
13Utility Tax Increment shall be calculated as follows: By
14multiplying the Net State Utility Tax Increment by 90% in year
1516; 80% in year 17; 70% in year 18; 60% in year 19; and 50% in
16year 20. Refunding of any bonds issued prior to June 1, 1988,
17shall not alter the revised Net State Utility Tax Increment
18payments set forth above.
19    (l) "Obligations" mean bonds, loans, debentures, notes,
20special certificates or other evidence of indebtedness issued
21by the municipality to carry out a redevelopment project or to
22refund outstanding obligations.
23    (m) "Payment in lieu of taxes" means those estimated tax
24revenues from real property in a redevelopment project area
25derived from real property that has been acquired by a
26municipality which according to the redevelopment project or

 

 

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1plan is to be used for a private use which taxing districts
2would have received had a municipality not acquired the real
3property and adopted tax increment allocation financing and
4which would result from levies made after the time of the
5adoption of tax increment allocation financing to the time the
6current equalized value of real property in the redevelopment
7project area exceeds the total initial equalized value of real
8property in said area.
9    (n) "Redevelopment plan" means the comprehensive program
10of the municipality for development or redevelopment intended
11by the payment of redevelopment project costs to reduce or
12eliminate those conditions the existence of which qualified
13the redevelopment project area as a "blighted area" or
14"conservation area" or combination thereof or "industrial park
15conservation area," and thereby to enhance the tax bases of
16the taxing districts which extend into the redevelopment
17project area, provided that, with respect to redevelopment
18project areas described in subsections (p-1) and (p-2),
19"redevelopment plan" means the comprehensive program of the
20affected municipality for the development of qualifying
21transit facilities. On and after November 1, 1999 (the
22effective date of Public Act 91-478), no redevelopment plan
23may be approved or amended that includes the development of
24vacant land (i) with a golf course and related clubhouse and
25other facilities or (ii) designated by federal, State, county,
26or municipal government as public land for outdoor

 

 

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1recreational activities or for nature preserves and used for
2that purpose within 5 years prior to the adoption of the
3redevelopment plan. For the purpose of this subsection,
4"recreational activities" is limited to mean camping and
5hunting. Each redevelopment plan shall set forth in writing
6the program to be undertaken to accomplish the objectives and
7shall include but not be limited to:
8        (A) an itemized list of estimated redevelopment
9    project costs;
10        (B) evidence indicating that the redevelopment project
11    area on the whole has not been subject to growth and
12    development through investment by private enterprise,
13    provided that such evidence shall not be required for any
14    redevelopment project area located within a transit
15    facility improvement area established pursuant to Section
16    11-74.4-3.3;
17        (C) an assessment of any financial impact of the
18    redevelopment project area on or any increased demand for
19    services from any taxing district affected by the plan and
20    any program to address such financial impact or increased
21    demand;
22        (D) the sources of funds to pay costs;
23        (E) the nature and term of the obligations to be
24    issued;
25        (F) the most recent equalized assessed valuation of
26    the redevelopment project area;

 

 

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1        (G) an estimate as to the equalized assessed valuation
2    after redevelopment and the general land uses to apply in
3    the redevelopment project area;
4        (H) a commitment to fair employment practices and an
5    affirmative action plan;
6        (I) if it concerns an industrial park conservation
7    area, the plan shall also include a general description of
8    any proposed developer, user and tenant of any property, a
9    description of the type, structure and general character
10    of the facilities to be developed, a description of the
11    type, class and number of new employees to be employed in
12    the operation of the facilities to be developed; and
13        (J) if property is to be annexed to the municipality,
14    the plan shall include the terms of the annexation
15    agreement.
16    The provisions of items (B) and (C) of this subsection (n)
17shall not apply to a municipality that before March 14, 1994
18(the effective date of Public Act 88-537) had fixed, either by
19its corporate authorities or by a commission designated under
20subsection (k) of Section 11-74.4-4, a time and place for a
21public hearing as required by subsection (a) of Section
2211-74.4-5. No redevelopment plan shall be adopted unless a
23municipality complies with all of the following requirements:
24        (1) The municipality finds that the redevelopment
25    project area on the whole has not been subject to growth
26    and development through investment by private enterprise

 

 

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1    and would not reasonably be anticipated to be developed
2    without the adoption of the redevelopment plan, provided,
3    however, that such a finding shall not be required with
4    respect to any redevelopment project area located within a
5    transit facility improvement area established pursuant to
6    Section 11-74.4-3.3.
7        (2) The municipality finds that the redevelopment plan
8    and project conform to the comprehensive plan for the
9    development of the municipality as a whole, or, for
10    municipalities with a population of 100,000 or more,
11    regardless of when the redevelopment plan and project was
12    adopted, the redevelopment plan and project either: (i)
13    conforms to the strategic economic development or
14    redevelopment plan issued by the designated planning
15    authority of the municipality, or (ii) includes land uses
16    that have been approved by the planning commission of the
17    municipality.
18        (3) The redevelopment plan establishes the estimated
19    dates of completion of the redevelopment project and
20    retirement of obligations issued to finance redevelopment
21    project costs. Those dates may not be later than the dates
22    set forth under Section 11-74.4-3.5.
23        A municipality may by municipal ordinance amend an
24    existing redevelopment plan to conform to this paragraph
25    (3) as amended by Public Act 91-478, which municipal
26    ordinance may be adopted without further hearing or notice

 

 

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1    and without complying with the procedures provided in this
2    Act pertaining to an amendment to or the initial approval
3    of a redevelopment plan and project and designation of a
4    redevelopment project area.
5        (3.5) The municipality finds, in the case of an
6    industrial park conservation area, also that the
7    municipality is a labor surplus municipality and that the
8    implementation of the redevelopment plan will reduce
9    unemployment, create new jobs and by the provision of new
10    facilities enhance the tax base of the taxing districts
11    that extend into the redevelopment project area.
12        (4) If any incremental revenues are being utilized
13    under Section 8(a)(1) or 8(a)(2) of this Act in
14    redevelopment project areas approved by ordinance after
15    January 1, 1986, the municipality finds: (a) that the
16    redevelopment project area would not reasonably be
17    developed without the use of such incremental revenues,
18    and (b) that such incremental revenues will be exclusively
19    utilized for the development of the redevelopment project
20    area.
21        (5) If: (a) the redevelopment plan will not result in
22    displacement of residents from 10 or more inhabited
23    residential units, and the municipality certifies in the
24    plan that such displacement will not result from the plan;
25    or (b) the redevelopment plan is for a redevelopment
26    project area or a qualifying transit facility located

 

 

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1    within a transit facility improvement area established
2    pursuant to Section 11-74.4-3.3, and the applicable
3    project is subject to the process for evaluation of
4    environmental effects under the National Environmental
5    Policy Act of 1969, 42 U.S.C. 4321 et seq., then a housing
6    impact study need not be performed. If, however, the
7    redevelopment plan would result in the displacement of
8    residents from 10 or more inhabited residential units, or
9    if the redevelopment project area contains 75 or more
10    inhabited residential units and no certification is made,
11    then the municipality shall prepare, as part of the
12    separate feasibility report required by subsection (a) of
13    Section 11-74.4-5, a housing impact study.
14        Part I of the housing impact study shall include (i)
15    data as to whether the residential units are single family
16    or multi-family units, (ii) the number and type of rooms
17    within the units, if that information is available, (iii)
18    whether the units are inhabited or uninhabited, as
19    determined not less than 45 days before the date that the
20    ordinance or resolution required by subsection (a) of
21    Section 11-74.4-5 is passed, and (iv) data as to the
22    racial and ethnic composition of the residents in the
23    inhabited residential units. The data requirement as to
24    the racial and ethnic composition of the residents in the
25    inhabited residential units shall be deemed to be fully
26    satisfied by data from the most recent federal census.

 

 

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1        Part II of the housing impact study shall identify the
2    inhabited residential units in the proposed redevelopment
3    project area that are to be or may be removed. If inhabited
4    residential units are to be removed, then the housing
5    impact study shall identify (i) the number and location of
6    those units that will or may be removed, (ii) the
7    municipality's plans for relocation assistance for those
8    residents in the proposed redevelopment project area whose
9    residences are to be removed, (iii) the availability of
10    replacement housing for those residents whose residences
11    are to be removed, and shall identify the type, location,
12    and cost of the housing, and (iv) the type and extent of
13    relocation assistance to be provided.
14        (6) On and after November 1, 1999, the housing impact
15    study required by paragraph (5) shall be incorporated in
16    the redevelopment plan for the redevelopment project area.
17        (7) On and after November 1, 1999, no redevelopment
18    plan shall be adopted, nor an existing plan amended, nor
19    shall residential housing that is occupied by households
20    of low-income and very low-income persons in currently
21    existing redevelopment project areas be removed after
22    November 1, 1999 unless the redevelopment plan provides,
23    with respect to inhabited housing units that are to be
24    removed for households of low-income and very low-income
25    persons, affordable housing and relocation assistance not
26    less than that which would be provided under the federal

 

 

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1    Uniform Relocation Assistance and Real Property
2    Acquisition Policies Act of 1970 and the regulations under
3    that Act, including the eligibility criteria. Affordable
4    housing may be either existing or newly constructed
5    housing. For purposes of this paragraph (7), "low-income
6    households", "very low-income households", and "affordable
7    housing" have the meanings set forth in the Illinois
8    Affordable Housing Act. The municipality shall make a good
9    faith effort to ensure that this affordable housing is
10    located in or near the redevelopment project area within
11    the municipality.
12        (8) On and after November 1, 1999, if, after the
13    adoption of the redevelopment plan for the redevelopment
14    project area, any municipality desires to amend its
15    redevelopment plan to remove more inhabited residential
16    units than specified in its original redevelopment plan,
17    that change shall be made in accordance with the
18    procedures in subsection (c) of Section 11-74.4-5.
19        (9) For redevelopment project areas designated prior
20    to November 1, 1999, the redevelopment plan may be amended
21    without further joint review board meeting or hearing,
22    provided that the municipality shall give notice of any
23    such changes by mail to each affected taxing district and
24    registrant on the interested party registry, to authorize
25    the municipality to expend tax increment revenues for
26    redevelopment project costs defined by paragraphs (5) and

 

 

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1    (7.5), subparagraphs (E) and (F) of paragraph (11), and
2    paragraph (11.5) of subsection (q) of Section 11-74.4-3,
3    so long as the changes do not increase the total estimated
4    redevelopment project costs set out in the redevelopment
5    plan by more than 5% after adjustment for inflation from
6    the date the plan was adopted.
7    (o) "Redevelopment project" means any public and private
8development project in furtherance of the objectives of a
9redevelopment plan. On and after November 1, 1999 (the
10effective date of Public Act 91-478), no redevelopment plan
11may be approved or amended that includes the development of
12vacant land (i) with a golf course and related clubhouse and
13other facilities or (ii) designated by federal, State, county,
14or municipal government as public land for outdoor
15recreational activities or for nature preserves and used for
16that purpose within 5 years prior to the adoption of the
17redevelopment plan. For the purpose of this subsection,
18"recreational activities" is limited to mean camping and
19hunting.
20    (p) "Redevelopment project area" means an area designated
21by the municipality, which is not less in the aggregate than 1
221/2 acres and in respect to which the municipality has made a
23finding that there exist conditions which cause the area to be
24classified as an industrial park conservation area or a
25blighted area or a conservation area, or a combination of both
26blighted areas and conservation areas.

 

 

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1    (p-1) Notwithstanding any provision of this Act to the
2contrary, on and after August 25, 2009 (the effective date of
3Public Act 96-680), a redevelopment project area may include
4areas within a one-half mile radius of an existing or proposed
5Regional Transportation Authority Suburban Transit Access
6Route (STAR Line) station without a finding that the area is
7classified as an industrial park conservation area, a blighted
8area, a conservation area, or a combination thereof, but only
9if the municipality receives unanimous consent from the joint
10review board created to review the proposed redevelopment
11project area.
12    (p-2) Notwithstanding any provision of this Act to the
13contrary, on and after the effective date of this amendatory
14Act of the 99th General Assembly, a redevelopment project area
15may include areas within a transit facility improvement area
16that has been established pursuant to Section 11-74.4-3.3
17without a finding that the area is classified as an industrial
18park conservation area, a blighted area, a conservation area,
19or any combination thereof.
20    (q) "Redevelopment project costs", except for
21redevelopment project areas created pursuant to subsection
22(p-1) or (p-2), means and includes the sum total of all
23reasonable or necessary costs incurred or estimated to be
24incurred, and any such costs incidental to a redevelopment
25plan and a redevelopment project. Such costs include, without
26limitation, the following:

 

 

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1        (1) Costs of studies, surveys, development of plans,
2    and specifications, implementation and administration of
3    the redevelopment plan including but not limited to staff
4    and professional service costs for architectural,
5    engineering, legal, financial, planning or other services,
6    provided however that no charges for professional services
7    may be based on a percentage of the tax increment
8    collected; except that on and after November 1, 1999 (the
9    effective date of Public Act 91-478), no contracts for
10    professional services, excluding architectural and
11    engineering services, may be entered into if the terms of
12    the contract extend beyond a period of 3 years. In
13    addition, "redevelopment project costs" shall not include
14    lobbying expenses. After consultation with the
15    municipality, each tax increment consultant or advisor to
16    a municipality that plans to designate or has designated a
17    redevelopment project area shall inform the municipality
18    in writing of any contracts that the consultant or advisor
19    has entered into with entities or individuals that have
20    received, or are receiving, payments financed by tax
21    increment revenues produced by the redevelopment project
22    area with respect to which the consultant or advisor has
23    performed, or will be performing, service for the
24    municipality. This requirement shall be satisfied by the
25    consultant or advisor before the commencement of services
26    for the municipality and thereafter whenever any other

 

 

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1    contracts with those individuals or entities are executed
2    by the consultant or advisor;
3        (1.5) After July 1, 1999, annual administrative costs
4    shall not include general overhead or administrative costs
5    of the municipality that would still have been incurred by
6    the municipality if the municipality had not designated a
7    redevelopment project area or approved a redevelopment
8    plan;
9        (1.6) The cost of marketing sites within the
10    redevelopment project area to prospective businesses,
11    developers, and investors;
12        (2) Property assembly costs, including but not limited
13    to acquisition of land and other property, real or
14    personal, or rights or interests therein, demolition of
15    buildings, site preparation, site improvements that serve
16    as an engineered barrier addressing ground level or below
17    ground environmental contamination, including, but not
18    limited to parking lots and other concrete or asphalt
19    barriers, and the clearing and grading of land;
20        (3) Costs of rehabilitation, reconstruction or repair
21    or remodeling of existing public or private buildings,
22    fixtures, and leasehold improvements; and the cost of
23    replacing an existing public building if pursuant to the
24    implementation of a redevelopment project the existing
25    public building is to be demolished to use the site for
26    private investment or devoted to a different use requiring

 

 

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1    private investment; including any direct or indirect costs
2    relating to Green Globes or LEED certified construction
3    elements or construction elements with an equivalent
4    certification;
5        (4) Costs of the construction of public works or
6    improvements, including any direct or indirect costs
7    relating to Green Globes or LEED certified construction
8    elements or construction elements with an equivalent
9    certification, except that on and after November 1, 1999,
10    redevelopment project costs shall not include the cost of
11    constructing a new municipal public building principally
12    used to provide offices, storage space, or conference
13    facilities or vehicle storage, maintenance, or repair for
14    administrative, public safety, or public works personnel
15    and that is not intended to replace an existing public
16    building as provided under paragraph (3) of subsection (q)
17    of Section 11-74.4-3 unless either (i) the construction of
18    the new municipal building implements a redevelopment
19    project that was included in a redevelopment plan that was
20    adopted by the municipality prior to November 1, 1999,
21    (ii) the municipality makes a reasonable determination in
22    the redevelopment plan, supported by information that
23    provides the basis for that determination, that the new
24    municipal building is required to meet an increase in the
25    need for public safety purposes anticipated to result from
26    the implementation of the redevelopment plan, or (iii) the

 

 

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1    new municipal public building is for the storage,
2    maintenance, or repair of transit vehicles and is located
3    in a transit facility improvement area that has been
4    established pursuant to Section 11-74.4-3.3;
5        (5) Costs of job training and retraining projects,
6    including the cost of "welfare to work" programs
7    implemented by businesses located within the redevelopment
8    project area;
9        (6) Financing costs, including but not limited to all
10    necessary and incidental expenses related to the issuance
11    of obligations and which may include payment of interest
12    on any obligations issued hereunder including interest
13    accruing during the estimated period of construction of
14    any redevelopment project for which such obligations are
15    issued and for not exceeding 36 months thereafter and
16    including reasonable reserves related thereto;
17        (7) To the extent the municipality by written
18    agreement accepts and approves the same, all or a portion
19    of a taxing district's capital costs resulting from the
20    redevelopment project necessarily incurred or to be
21    incurred within a taxing district in furtherance of the
22    objectives of the redevelopment plan and project;
23        (7.5) For redevelopment project areas designated (or
24    redevelopment project areas amended to add or increase the
25    number of tax-increment-financing assisted housing units)
26    on or after November 1, 1999, an elementary, secondary, or

 

 

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1    unit school district's increased costs attributable to
2    assisted housing units located within the redevelopment
3    project area for which the developer or redeveloper
4    receives financial assistance through an agreement with
5    the municipality or because the municipality incurs the
6    cost of necessary infrastructure improvements within the
7    boundaries of the assisted housing sites necessary for the
8    completion of that housing as authorized by this Act, and
9    which costs shall be paid by the municipality from the
10    Special Tax Allocation Fund when the tax increment revenue
11    is received as a result of the assisted housing units and
12    shall be calculated annually as follows:
13            (A) for foundation districts, excluding any school
14        district in a municipality with a population in excess
15        of 1,000,000, by multiplying the district's increase
16        in attendance resulting from the net increase in new
17        students enrolled in that school district who reside
18        in housing units within the redevelopment project area
19        that have received financial assistance through an
20        agreement with the municipality or because the
21        municipality incurs the cost of necessary
22        infrastructure improvements within the boundaries of
23        the housing sites necessary for the completion of that
24        housing as authorized by this Act since the
25        designation of the redevelopment project area by the
26        most recently available per capita tuition cost as

 

 

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1        defined in Section 10-20.12a of the School Code less
2        any increase in general State aid as defined in
3        Section 18-8.05 of the School Code or evidence-based
4        funding as defined in Section 18-8.15 of the School
5        Code attributable to these added new students subject
6        to the following annual limitations:
7                (i) for unit school districts with a district
8            average 1995-96 Per Capita Tuition Charge of less
9            than $5,900, no more than 25% of the total amount
10            of property tax increment revenue produced by
11            those housing units that have received tax
12            increment finance assistance under this Act;
13                (ii) for elementary school districts with a
14            district average 1995-96 Per Capita Tuition Charge
15            of less than $5,900, no more than 17% of the total
16            amount of property tax increment revenue produced
17            by those housing units that have received tax
18            increment finance assistance under this Act; and
19                (iii) for secondary school districts with a
20            district average 1995-96 Per Capita Tuition Charge
21            of less than $5,900, no more than 8% of the total
22            amount of property tax increment revenue produced
23            by those housing units that have received tax
24            increment finance assistance under this Act.
25            (B) For alternate method districts, flat grant
26        districts, and foundation districts with a district

 

 

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1        average 1995-96 Per Capita Tuition Charge equal to or
2        more than $5,900, excluding any school district with a
3        population in excess of 1,000,000, by multiplying the
4        district's increase in attendance resulting from the
5        net increase in new students enrolled in that school
6        district who reside in housing units within the
7        redevelopment project area that have received
8        financial assistance through an agreement with the
9        municipality or because the municipality incurs the
10        cost of necessary infrastructure improvements within
11        the boundaries of the housing sites necessary for the
12        completion of that housing as authorized by this Act
13        since the designation of the redevelopment project
14        area by the most recently available per capita tuition
15        cost as defined in Section 10-20.12a of the School
16        Code less any increase in general state aid as defined
17        in Section 18-8.05 of the School Code or
18        evidence-based funding as defined in Section 18-8.15
19        of the School Code attributable to these added new
20        students subject to the following annual limitations:
21                (i) for unit school districts, no more than
22            40% of the total amount of property tax increment
23            revenue produced by those housing units that have
24            received tax increment finance assistance under
25            this Act;
26                (ii) for elementary school districts, no more

 

 

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1            than 27% of the total amount of property tax
2            increment revenue produced by those housing units
3            that have received tax increment finance
4            assistance under this Act; and
5                (iii) for secondary school districts, no more
6            than 13% of the total amount of property tax
7            increment revenue produced by those housing units
8            that have received tax increment finance
9            assistance under this Act.
10            (C) For any school district in a municipality with
11        a population in excess of 1,000,000, the following
12        restrictions shall apply to the reimbursement of
13        increased costs under this paragraph (7.5):
14                (i) no increased costs shall be reimbursed
15            unless the school district certifies that each of
16            the schools affected by the assisted housing
17            project is at or over its student capacity;
18                (ii) the amount reimbursable shall be reduced
19            by the value of any land donated to the school
20            district by the municipality or developer, and by
21            the value of any physical improvements made to the
22            schools by the municipality or developer; and
23                (iii) the amount reimbursed may not affect
24            amounts otherwise obligated by the terms of any
25            bonds, notes, or other funding instruments, or the
26            terms of any redevelopment agreement.

 

 

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1        Any school district seeking payment under this
2        paragraph (7.5) shall, after July 1 and before
3        September 30 of each year, provide the municipality
4        with reasonable evidence to support its claim for
5        reimbursement before the municipality shall be
6        required to approve or make the payment to the school
7        district. If the school district fails to provide the
8        information during this period in any year, it shall
9        forfeit any claim to reimbursement for that year.
10        School districts may adopt a resolution waiving the
11        right to all or a portion of the reimbursement
12        otherwise required by this paragraph (7.5). By
13        acceptance of this reimbursement the school district
14        waives the right to directly or indirectly set aside,
15        modify, or contest in any manner the establishment of
16        the redevelopment project area or projects;
17        (7.7) For redevelopment project areas designated (or
18    redevelopment project areas amended to add or increase the
19    number of tax-increment-financing assisted housing units)
20    on or after January 1, 2005 (the effective date of Public
21    Act 93-961), a public library district's increased costs
22    attributable to assisted housing units located within the
23    redevelopment project area for which the developer or
24    redeveloper receives financial assistance through an
25    agreement with the municipality or because the
26    municipality incurs the cost of necessary infrastructure

 

 

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1    improvements within the boundaries of the assisted housing
2    sites necessary for the completion of that housing as
3    authorized by this Act shall be paid to the library
4    district by the municipality from the Special Tax
5    Allocation Fund when the tax increment revenue is received
6    as a result of the assisted housing units. This paragraph
7    (7.7) applies only if (i) the library district is located
8    in a county that is subject to the Property Tax Extension
9    Limitation Law or (ii) the library district is not located
10    in a county that is subject to the Property Tax Extension
11    Limitation Law but the district is prohibited by any other
12    law from increasing its tax levy rate without a prior
13    voter referendum.
14        The amount paid to a library district under this
15    paragraph (7.7) shall be calculated by multiplying (i) the
16    net increase in the number of persons eligible to obtain a
17    library card in that district who reside in housing units
18    within the redevelopment project area that have received
19    financial assistance through an agreement with the
20    municipality or because the municipality incurs the cost
21    of necessary infrastructure improvements within the
22    boundaries of the housing sites necessary for the
23    completion of that housing as authorized by this Act since
24    the designation of the redevelopment project area by (ii)
25    the per-patron cost of providing library services so long
26    as it does not exceed $120. The per-patron cost shall be

 

 

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1    the Total Operating Expenditures Per Capita for the
2    library in the previous fiscal year. The municipality may
3    deduct from the amount that it must pay to a library
4    district under this paragraph any amount that it has
5    voluntarily paid to the library district from the tax
6    increment revenue. The amount paid to a library district
7    under this paragraph (7.7) shall be no more than 2% of the
8    amount produced by the assisted housing units and
9    deposited into the Special Tax Allocation Fund.
10        A library district is not eligible for any payment
11    under this paragraph (7.7) unless the library district has
12    experienced an increase in the number of patrons from the
13    municipality that created the tax-increment-financing
14    district since the designation of the redevelopment
15    project area.
16        Any library district seeking payment under this
17    paragraph (7.7) shall, after July 1 and before September
18    30 of each year, provide the municipality with convincing
19    evidence to support its claim for reimbursement before the
20    municipality shall be required to approve or make the
21    payment to the library district. If the library district
22    fails to provide the information during this period in any
23    year, it shall forfeit any claim to reimbursement for that
24    year. Library districts may adopt a resolution waiving the
25    right to all or a portion of the reimbursement otherwise
26    required by this paragraph (7.7). By acceptance of such

 

 

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1    reimbursement, the library district shall forfeit any
2    right to directly or indirectly set aside, modify, or
3    contest in any manner whatsoever the establishment of the
4    redevelopment project area or projects;
5        (8) Relocation costs to the extent that a municipality
6    determines that relocation costs shall be paid or is
7    required to make payment of relocation costs by federal or
8    State law or in order to satisfy subparagraph (7) of
9    subsection (n);
10        (9) Payment in lieu of taxes;
11        (10) Costs of job training, retraining, advanced
12    vocational education or career education, including but
13    not limited to courses in occupational, semi-technical or
14    technical fields leading directly to employment, incurred
15    by one or more taxing districts, provided that such costs
16    (i) are related to the establishment and maintenance of
17    additional job training, advanced vocational education or
18    career education programs for persons employed or to be
19    employed by employers located in a redevelopment project
20    area; and (ii) when incurred by a taxing district or
21    taxing districts other than the municipality, are set
22    forth in a written agreement by or among the municipality
23    and the taxing district or taxing districts, which
24    agreement describes the program to be undertaken,
25    including but not limited to the number of employees to be
26    trained, a description of the training and services to be

 

 

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1    provided, the number and type of positions available or to
2    be available, itemized costs of the program and sources of
3    funds to pay for the same, and the term of the agreement.
4    Such costs include, specifically, the payment by community
5    college districts of costs pursuant to Sections 3-37,
6    3-38, 3-40 and 3-40.1 of the Public Community College Act
7    and by school districts of costs pursuant to Sections
8    10-22.20a and 10-23.3a of the School Code;
9        (11) Interest cost incurred by a redeveloper related
10    to the construction, renovation or rehabilitation of a
11    redevelopment project provided that:
12            (A) such costs are to be paid directly from the
13        special tax allocation fund established pursuant to
14        this Act;
15            (B) such payments in any one year may not exceed
16        30% of the annual interest costs incurred by the
17        redeveloper with regard to the redevelopment project
18        during that year;
19            (C) if there are not sufficient funds available in
20        the special tax allocation fund to make the payment
21        pursuant to this paragraph (11) then the amounts so
22        due shall accrue and be payable when sufficient funds
23        are available in the special tax allocation fund;
24            (D) the total of such interest payments paid
25        pursuant to this Act may not exceed 30% of the total
26        (i) cost paid or incurred by the redeveloper for the

 

 

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1        redevelopment project plus (ii) redevelopment project
2        costs excluding any property assembly costs and any
3        relocation costs incurred by a municipality pursuant
4        to this Act;
5            (E) the cost limits set forth in subparagraphs (B)
6        and (D) of paragraph (11) shall be modified for the
7        financing of rehabilitated or new housing units for
8        low-income households and very low-income households,
9        as defined in Section 3 of the Illinois Affordable
10        Housing Act. The percentage of 75% shall be
11        substituted for 30% in subparagraphs (B) and (D) of
12        paragraph (11); and
13            (F) instead of the eligible costs provided by
14        subparagraphs (B) and (D) of paragraph (11), as
15        modified by this subparagraph, and notwithstanding any
16        other provisions of this Act to the contrary, the
17        municipality may pay from tax increment revenues up to
18        50% of the cost of construction of new housing units to
19        be occupied by low-income households and very
20        low-income households as defined in Section 3 of the
21        Illinois Affordable Housing Act. The cost of
22        construction of those units may be derived from the
23        proceeds of bonds issued by the municipality under
24        this Act or other constitutional or statutory
25        authority or from other sources of municipal revenue
26        that may be reimbursed from tax increment revenues or

 

 

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1        the proceeds of bonds issued to finance the
2        construction of that housing.
3            The eligible costs provided under this
4        subparagraph (F) of paragraph (11) shall be an
5        eligible cost for the construction, renovation, and
6        rehabilitation of all low and very low-income housing
7        units, as defined in Section 3 of the Illinois
8        Affordable Housing Act, within the redevelopment
9        project area. If the low and very low-income units are
10        part of a residential redevelopment project that
11        includes units not affordable to low and very
12        low-income households, only the low and very
13        low-income units shall be eligible for benefits under
14        this subparagraph (F) of paragraph (11). The standards
15        for maintaining the occupancy by low-income households
16        and very low-income households, as defined in Section
17        3 of the Illinois Affordable Housing Act, of those
18        units constructed with eligible costs made available
19        under the provisions of this subparagraph (F) of
20        paragraph (11) shall be established by guidelines
21        adopted by the municipality. The responsibility for
22        annually documenting the initial occupancy of the
23        units by low-income households and very low-income
24        households, as defined in Section 3 of the Illinois
25        Affordable Housing Act, shall be that of the then
26        current owner of the property. For ownership units,

 

 

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1        the guidelines will provide, at a minimum, for a
2        reasonable recapture of funds, or other appropriate
3        methods designed to preserve the original
4        affordability of the ownership units. For rental
5        units, the guidelines will provide, at a minimum, for
6        the affordability of rent to low and very low-income
7        households. As units become available, they shall be
8        rented to income-eligible tenants. The municipality
9        may modify these guidelines from time to time; the
10        guidelines, however, shall be in effect for as long as
11        tax increment revenue is being used to pay for costs
12        associated with the units or for the retirement of
13        bonds issued to finance the units or for the life of
14        the redevelopment project area, whichever is later;
15        (11.5) If the redevelopment project area is located
16    within a municipality with a population of more than
17    100,000, the cost of day care services for children of
18    employees from low-income families working for businesses
19    located within the redevelopment project area and all or a
20    portion of the cost of operation of day care centers
21    established by redevelopment project area businesses to
22    serve employees from low-income families working in
23    businesses located in the redevelopment project area. For
24    the purposes of this paragraph, "low-income families"
25    means families whose annual income does not exceed 80% of
26    the municipal, county, or regional median income, adjusted

 

 

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1    for family size, as the annual income and municipal,
2    county, or regional median income are determined from time
3    to time by the United States Department of Housing and
4    Urban Development.
5        (12) Costs relating to the development of urban
6    agricultural areas under Division 15.2 of the Illinois
7    Municipal Code.
8        (13) Costs of business interruption or closures. Such
9    costs are payable to businesses located within the
10    redevelopment area that have experienced business
11    interruption or other adverse conditions directly or
12    indirectly attributable to the COVID-19 public health
13    emergency and experienced during a statewide disaster
14    declaration regarding COVID-19. These costs may be
15    reimbursed in the form of grants, subsidies, or loans
16    distributed prior to December 31, 2022.
17        The municipality may establish, by ordinance or
18    resolution, procedures for the payment of such costs,
19    including application procedures, grant or loan
20    agreements, certifications, payment methodologies, and
21    other accountability measures that may be imposed upon
22    participating businesses.
23        As used in this subsection, "costs of business
24    interruption" means either of the following: decreases in
25    revenue caused by closing or limiting access to the
26    business establishment to comply with COVID-19 public

 

 

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1    health emergency prevention directives or to otherwise
2    prevent the spread of COVID-19 within the business
3    establishment; or decreases in revenue caused by decreased
4    customer demand as a result of the COVID-19 public health
5    emergency.
6    Unless explicitly stated herein the cost of construction
7of new privately-owned buildings shall not be an eligible
8redevelopment project cost.
9    After November 1, 1999 (the effective date of Public Act
1091-478), none of the redevelopment project costs enumerated in
11this subsection shall be eligible redevelopment project costs
12if those costs would provide direct financial support to a
13retail entity initiating operations in the redevelopment
14project area while terminating operations at another Illinois
15location within 10 miles of the redevelopment project area but
16outside the boundaries of the redevelopment project area
17municipality. For purposes of this paragraph, termination
18means a closing of a retail operation that is directly related
19to the opening of the same operation or like retail entity
20owned or operated by more than 50% of the original ownership in
21a redevelopment project area, but it does not mean closing an
22operation for reasons beyond the control of the retail entity,
23as documented by the retail entity, subject to a reasonable
24finding by the municipality that the current location
25contained inadequate space, had become economically obsolete,
26or was no longer a viable location for the retailer or

 

 

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1serviceman.
2    No cost shall be a redevelopment project cost in a
3redevelopment project area if used to demolish, remove, or
4substantially modify a historic resource, after August 26,
52008 (the effective date of Public Act 95-934), unless no
6prudent and feasible alternative exists. "Historic resource"
7for the purpose of this paragraph means (i) a place or
8structure that is included or eligible for inclusion on the
9National Register of Historic Places or (ii) a contributing
10structure in a district on the National Register of Historic
11Places. This paragraph does not apply to a place or structure
12for which demolition, removal, or modification is subject to
13review by the preservation agency of a Certified Local
14Government designated as such by the National Park Service of
15the United States Department of the Interior.
16    If a special service area has been established pursuant to
17the Special Service Area Tax Act or Special Service Area Tax
18Law, then any tax increment revenues derived from the tax
19imposed pursuant to the Special Service Area Tax Act or
20Special Service Area Tax Law may be used within the
21redevelopment project area for the purposes permitted by that
22Act or Law as well as the purposes permitted by this Act.
23    (q-1) For redevelopment project areas created pursuant to
24subsection (p-1), redevelopment project costs are limited to
25those costs in paragraph (q) that are related to the existing
26or proposed Regional Transportation Authority Suburban Transit

 

 

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1Access Route (STAR Line) station.
2    (q-2) For a transit facility improvement area established
3prior to, on, or after the effective date of this amendatory
4Act of the 102nd General Assembly: (i) "redevelopment project
5costs" means those costs described in subsection (q) that are
6related to the construction, reconstruction, rehabilitation,
7remodeling, or repair of any existing or proposed transit
8facility, whether that facility is located within or outside
9the boundaries of a redevelopment project area established
10within that transit facility improvement area (and, to the
11extent a redevelopment project cost is described in subsection
12(q) as incurred or estimated to be incurred with respect to a
13redevelopment project area, then it shall apply with respect
14to such transit facility improvement area); and (ii) the
15provisions of Section 11-74.4-8 regarding tax increment
16allocation financing for a redevelopment project area located
17in a transit facility improvement area shall apply only to the
18lots, blocks, tracts and parcels of real property that are
19located within the boundaries of that redevelopment project
20area and not to the lots, blocks, tracts, and parcels of real
21property that are located outside the boundaries of that
22redevelopment project area.
23    (r) "State Sales Tax Boundary" means the redevelopment
24project area or the amended redevelopment project area
25boundaries which are determined pursuant to subsection (9) of
26Section 11-74.4-8a of this Act. The Department of Revenue

 

 

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1shall certify pursuant to subsection (9) of Section 11-74.4-8a
2the appropriate boundaries eligible for the determination of
3State Sales Tax Increment.
4    (s) "State Sales Tax Increment" means an amount equal to
5the increase in the aggregate amount of taxes paid by
6retailers and servicemen, other than retailers and servicemen
7subject to the Public Utilities Act, on transactions at places
8of business located within a State Sales Tax Boundary pursuant
9to the Retailers' Occupation Tax Act, the Use Tax Act, the
10Service Use Tax Act, and the Service Occupation Tax Act,
11except such portion of such increase that is paid into the
12State and Local Sales Tax Reform Fund, the Local Government
13Distributive Fund, the Local Government Tax Fund and the
14County and Mass Transit District Fund, for as long as State
15participation exists, over and above the Initial Sales Tax
16Amounts, Adjusted Initial Sales Tax Amounts or the Revised
17Initial Sales Tax Amounts for such taxes as certified by the
18Department of Revenue and paid under those Acts by retailers
19and servicemen on transactions at places of business located
20within the State Sales Tax Boundary during the base year which
21shall be the calendar year immediately prior to the year in
22which the municipality adopted tax increment allocation
23financing, less 3.0% of such amounts generated under the
24Retailers' Occupation Tax Act, Use Tax Act and Service Use Tax
25Act and the Service Occupation Tax Act, which sum shall be
26appropriated to the Department of Revenue to cover its costs

 

 

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1of administering and enforcing this Section. For purposes of
2computing the aggregate amount of such taxes for base years
3occurring prior to 1985, the Department of Revenue shall
4compute the Initial Sales Tax Amount for such taxes and deduct
5therefrom an amount equal to 4% of the aggregate amount of
6taxes per year for each year the base year is prior to 1985,
7but not to exceed a total deduction of 12%. The amount so
8determined shall be known as the "Adjusted Initial Sales Tax
9Amount". For purposes of determining the State Sales Tax
10Increment the Department of Revenue shall for each period
11subtract from the tax amounts received from retailers and
12servicemen on transactions located in the State Sales Tax
13Boundary, the certified Initial Sales Tax Amounts, Adjusted
14Initial Sales Tax Amounts or Revised Initial Sales Tax Amounts
15for the Retailers' Occupation Tax Act, the Use Tax Act, the
16Service Use Tax Act and the Service Occupation Tax Act. For the
17State Fiscal Year 1989 this calculation shall be made by
18utilizing the calendar year 1987 to determine the tax amounts
19received. For the State Fiscal Year 1990, this calculation
20shall be made by utilizing the period from January 1, 1988,
21until September 30, 1988, to determine the tax amounts
22received from retailers and servicemen, which shall have
23deducted therefrom nine-twelfths of the certified Initial
24Sales Tax Amounts, Adjusted Initial Sales Tax Amounts or the
25Revised Initial Sales Tax Amounts as appropriate. For the
26State Fiscal Year 1991, this calculation shall be made by

 

 

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1utilizing the period from October 1, 1988, until June 30,
21989, to determine the tax amounts received from retailers and
3servicemen, which shall have deducted therefrom nine-twelfths
4of the certified Initial State Sales Tax Amounts, Adjusted
5Initial Sales Tax Amounts or the Revised Initial Sales Tax
6Amounts as appropriate. For every State Fiscal Year
7thereafter, the applicable period shall be the 12 months
8beginning July 1 and ending on June 30, to determine the tax
9amounts received which shall have deducted therefrom the
10certified Initial Sales Tax Amounts, Adjusted Initial Sales
11Tax Amounts or the Revised Initial Sales Tax Amounts.
12Municipalities intending to receive a distribution of State
13Sales Tax Increment must report a list of retailers to the
14Department of Revenue by October 31, 1988 and by July 31, of
15each year thereafter.
16    (t) "Taxing districts" means counties, townships, cities
17and incorporated towns and villages, school, road, park,
18sanitary, mosquito abatement, forest preserve, public health,
19fire protection, river conservancy, tuberculosis sanitarium
20and any other municipal corporations or districts with the
21power to levy taxes.
22    (u) "Taxing districts' capital costs" means those costs of
23taxing districts for capital improvements that are found by
24the municipal corporate authorities to be necessary and
25directly result from the redevelopment project.
26    (v) As used in subsection (a) of Section 11-74.4-3 of this

 

 

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1Act, "vacant land" means any parcel or combination of parcels
2of real property without industrial, commercial, and
3residential buildings which has not been used for commercial
4agricultural purposes within 5 years prior to the designation
5of the redevelopment project area, unless the parcel is
6included in an industrial park conservation area or the parcel
7has been subdivided; provided that if the parcel was part of a
8larger tract that has been divided into 3 or more smaller
9tracts that were accepted for recording during the period from
101950 to 1990, then the parcel shall be deemed to have been
11subdivided, and all proceedings and actions of the
12municipality taken in that connection with respect to any
13previously approved or designated redevelopment project area
14or amended redevelopment project area are hereby validated and
15hereby declared to be legally sufficient for all purposes of
16this Act. For purposes of this Section and only for land
17subject to the subdivision requirements of the Plat Act, land
18is subdivided when the original plat of the proposed
19Redevelopment Project Area or relevant portion thereof has
20been properly certified, acknowledged, approved, and recorded
21or filed in accordance with the Plat Act and a preliminary
22plat, if any, for any subsequent phases of the proposed
23Redevelopment Project Area or relevant portion thereof has
24been properly approved and filed in accordance with the
25applicable ordinance of the municipality.
26    (w) "Annual Total Increment" means the sum of each

 

 

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1municipality's annual Net Sales Tax Increment and each
2municipality's annual Net Utility Tax Increment. The ratio of
3the Annual Total Increment of each municipality to the Annual
4Total Increment for all municipalities, as most recently
5calculated by the Department, shall determine the proportional
6shares of the Illinois Tax Increment Fund to be distributed to
7each municipality.
8    (x) "LEED certified" means any certification level of
9construction elements by a qualified Leadership in Energy and
10Environmental Design Accredited Professional as determined by
11the U.S. Green Building Council.
12    (y) "Green Globes certified" means any certification level
13of construction elements by a qualified Green Globes
14Professional as determined by the Green Building Initiative.
15(Source: P.A. 102-627, eff. 8-27-21.)
 
16    Section 15. The Illinois Banking Act is amended by
17changing Sections 2 and 30 as follows:
 
18    (205 ILCS 5/2)  (from Ch. 17, par. 302)
19    Sec. 2. General definitions. In this Act, unless the
20context otherwise requires, the following words and phrases
21shall have the following meanings:
22    "Accommodation party" shall have the meaning ascribed to
23that term in Section 3-419 of the Uniform Commercial Code.
24    "Action" in the sense of a judicial proceeding includes

 

 

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1recoupments, counterclaims, set-off, and any other proceeding
2in which rights are determined.
3    "Affiliate facility" of a bank means a main banking
4premises or branch of another commonly owned bank. The main
5banking premises or any branch of a bank may be an "affiliate
6facility" with respect to one or more other commonly owned
7banks.
8    "Appropriate federal banking agency" means the Federal
9Deposit Insurance Corporation, the Federal Reserve Bank of
10Chicago, or the Federal Reserve Bank of St. Louis, as
11determined by federal law.
12    "Bank" means any person doing a banking business whether
13subject to the laws of this or any other jurisdiction.
14    A "banking house", "branch", "branch bank" or "branch
15office" shall mean any place of business of a bank at which
16deposits are received, checks paid, or loans made, but shall
17not include any place at which only records thereof are made,
18posted, or kept. A place of business at which deposits are
19received, checks paid, or loans made shall not be deemed to be
20a branch, branch bank, or branch office if the place of
21business is adjacent to and connected with the main banking
22premises, or if it is separated from the main banking premises
23by not more than an alley; provided always that (i) if the
24place of business is separated by an alley from the main
25banking premises there is a connection between the two by
26public or private way or by subterranean or overhead passage,

 

 

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1and (ii) if the place of business is in a building not wholly
2occupied by the bank, the place of business shall not be within
3any office or room in which any other business or service of
4any kind or nature other than the business of the bank is
5conducted or carried on. A place of business at which deposits
6are received, checks paid, or loans made shall not be deemed to
7be a branch, branch bank, or branch office (i) of any bank if
8the place is a terminal established and maintained in
9accordance with paragraph (17) of Section 5 of this Act, or
10(ii) of a commonly owned bank by virtue of transactions
11conducted at that place on behalf of the other commonly owned
12bank under paragraph (23) of Section 5 of this Act if the place
13is an affiliate facility with respect to the other bank.
14    "Branch of an out-of-state bank" means a branch
15established or maintained in Illinois by an out-of-state bank
16as a result of a merger between an Illinois bank and the
17out-of-state bank that occurs on or after May 31, 1997, or any
18branch established by the out-of-state bank following the
19merger.
20    "Bylaws" means the bylaws of a bank that are adopted by the
21bank's board of directors or shareholders for the regulation
22and management of the bank's affairs. If the bank operates as a
23limited liability company, however, "bylaws" means the
24operating agreement of the bank.
25    "Call report fee" means the fee to be paid to the
26Commissioner by each State bank pursuant to paragraph (a) of

 

 

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1subsection (3) of Section 48 of this Act.
2    "Capital" includes the aggregate of outstanding capital
3stock and preferred stock.
4    "Cash flow reserve account" means the account within the
5books and records of the Commissioner of Banks and Real Estate
6used to record funds designated to maintain a reasonable Bank
7and Trust Company Fund operating balance to meet agency
8obligations on a timely basis.
9    "Charter" includes the original charter and all amendments
10thereto and articles of merger or consolidation.
11    "Commissioner" means the Commissioner of Banks and Real
12Estate, except that beginning on April 6, 2009 (the effective
13date of Public Act 95-1047), all references in this Act to the
14Commissioner of Banks and Real Estate are deemed, in
15appropriate contexts, to be references to the Secretary of
16Financial and Professional Regulation.
17    "Commonly owned banks" means 2 or more banks that each
18qualify as a bank subsidiary of the same bank holding company
19pursuant to Section 18 of the Federal Deposit Insurance Act;
20"commonly owned bank" refers to one of a group of commonly
21owned banks but only with respect to one or more of the other
22banks in the same group.
23    "Community" means a city, village, or incorporated town
24and also includes the area served by the banking offices of a
25bank, but need not be limited or expanded to conform to the
26geographic boundaries of units of local government.

 

 

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1    "Company" means a corporation, limited liability company,
2partnership, business trust, association, or similar
3organization and, unless specifically excluded, includes a
4"State bank" and a "bank".
5    "Consolidating bank" means a party to a consolidation.
6    "Consolidation" takes place when 2 or more banks, or a
7trust company and a bank, are extinguished and by the same
8process a new bank is created, taking over the assets and
9assuming the liabilities of the banks or trust company passing
10out of existence.
11    "Continuing bank" means a merging bank, the charter of
12which becomes the charter of the resulting bank.
13    "Converting bank" means a State bank converting to become
14a national bank, or a national bank converting to become a
15State bank.
16    "Converting trust company" means a trust company
17converting to become a State bank.
18    "Court" means a court of competent jurisdiction.
19    "Director" means a member of the board of directors of a
20bank. In the case of a manager-managed limited liability
21company, however, "director" means a manager of the bank and,
22in the case of a member-managed limited liability company,
23"director" means a member of the bank. The term "director"
24does not include an advisory director, honorary director,
25director emeritus, or similar person, unless the person is
26otherwise performing functions similar to those of a member of

 

 

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1the board of directors.
2    "Director of Banking" means the Director of the Division
3of Banking of the Department of Financial and Professional
4Regulation.
5    "Eligible depository institution" means an insured savings
6association that is in default, an insured savings association
7that is in danger of default, a State or national bank that is
8in default or a State or national bank that is in danger of
9default, as those terms are defined in this Section, or a new
10bank as that term defined in Section 11(m) of the Federal
11Deposit Insurance Act or a bridge bank as that term is defined
12in Section 11(n) of the Federal Deposit Insurance Act or a new
13federal savings association authorized under Section
1411(d)(2)(f) of the Federal Deposit Insurance Act.
15    "Fiduciary" means trustee, agent, executor, administrator,
16committee, guardian for a minor or for a person under legal
17disability, receiver, trustee in bankruptcy, assignee for
18creditors, or any holder of similar position of trust.
19    "Financial institution" means a bank, savings bank,
20savings and loan association, credit union, or any licensee
21under the Consumer Installment Loan Act or the Sales Finance
22Agency Act and, for purposes of Section 48.3, any proprietary
23network, funds transfer corporation, or other entity providing
24electronic funds transfer services, or any corporate
25fiduciary, its subsidiaries, affiliates, parent company, or
26contractual service provider that is examined by the

 

 

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1Commissioner. For purposes of Section 5c and subsection (b) of
2Section 13 of this Act, "financial institution" includes any
3proprietary network, funds transfer corporation, or other
4entity providing electronic funds transfer services, and any
5corporate fiduciary.
6    "Foundation" means the Illinois Bank Examiners' Education
7Foundation.
8    "General obligation" means a bond, note, debenture,
9security, or other instrument evidencing an obligation of the
10government entity that is the issuer that is supported by the
11full available resources of the issuer, the principal and
12interest of which is payable in whole or in part by taxation.
13    "Guarantee" means an undertaking or promise to answer for
14payment of another's debt or performance of another's duty,
15liability, or obligation whether "payment guaranteed" or
16"collection guaranteed".
17    "In danger of default" means a State or national bank, a
18federally chartered insured savings association or an Illinois
19state chartered insured savings association with respect to
20which the Commissioner or the appropriate federal banking
21agency has advised the Federal Deposit Insurance Corporation
22that:
23        (1) in the opinion of the Commissioner or the
24    appropriate federal banking agency,
25            (A) the State or national bank or insured savings
26        association is not likely to be able to meet the

 

 

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1        demands of the State or national bank's or savings
2        association's obligations in the normal course of
3        business; and
4            (B) there is no reasonable prospect that the State
5        or national bank or insured savings association will
6        be able to meet those demands or pay those obligations
7        without federal assistance; or
8        (2) in the opinion of the Commissioner or the
9    appropriate federal banking agency,
10            (A) the State or national bank or insured savings
11        association has incurred or is likely to incur losses
12        that will deplete all or substantially all of its
13        capital; and
14            (B) there is no reasonable prospect that the
15        capital of the State or national bank or insured
16        savings association will be replenished without
17        federal assistance.
18    "In default" means, with respect to a State or national
19bank or an insured savings association, any adjudication or
20other official determination by any court of competent
21jurisdiction, the Commissioner, the appropriate federal
22banking agency, or other public authority pursuant to which a
23conservator, receiver, or other legal custodian is appointed
24for a State or national bank or an insured savings
25association.
26    "Insured savings association" means any federal savings

 

 

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1association chartered under Section 5 of the federal Home
2Owners' Loan Act and any State savings association chartered
3under the Illinois Savings and Loan Act of 1985 or a
4predecessor Illinois statute, the deposits of which are
5insured by the Federal Deposit Insurance Corporation. The term
6also includes a savings bank organized or operating under the
7Savings Bank Act.
8    "Insured savings association in recovery" means an insured
9savings association that is not an eligible depository
10institution and that does not meet the minimum capital
11requirements applicable with respect to the insured savings
12association.
13    "Issuer" means for purposes of Section 33 every person who
14shall have issued or proposed to issue any security; except
15that (1) with respect to certificates of deposit, voting trust
16certificates, collateral-trust certificates, and certificates
17of interest or shares in an unincorporated investment trust
18not having a board of directors (or persons performing similar
19functions), "issuer" means the person or persons performing
20the acts and assuming the duties of depositor or manager
21pursuant to the provisions of the trust, agreement, or
22instrument under which the securities are issued; (2) with
23respect to trusts other than those specified in clause (1)
24above, where the trustee is a corporation authorized to accept
25and execute trusts, "issuer" means the entrusters, depositors,
26or creators of the trust and any manager or committee charged

 

 

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1with the general direction of the affairs of the trust
2pursuant to the provisions of the agreement or instrument
3creating the trust; and (3) with respect to equipment trust
4certificates or like securities, "issuer" means the person to
5whom the equipment or property is or is to be leased or
6conditionally sold.
7    "Letter of credit" and "customer" shall have the meanings
8ascribed to those terms in Section 5-102 of the Uniform
9Commercial Code.
10    "Main banking premises" means the location that is
11designated in a bank's charter as its main office.
12    "Maker or obligor" means for purposes of Section 33 the
13issuer of a security, the promisor in a debenture or other debt
14security, or the mortgagor or grantor of a trust deed or
15similar conveyance of a security interest in real or personal
16property.
17    "Merged bank" means a merging bank that is not the
18continuing, resulting, or surviving bank in a consolidation or
19merger.
20    "Merger" includes consolidation.
21    "Merging bank" means a party to a bank merger.
22    "Merging trust company" means a trust company party to a
23merger with a State bank.
24    "Mid-tier bank holding company" means a corporation that
25(a) owns 100% of the issued and outstanding shares of each
26class of stock of a State bank, (b) has no other subsidiaries,

 

 

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1and (c) 100% of the issued and outstanding shares of the
2corporation are owned by a parent bank holding company.
3    "Municipality" means any municipality, political
4subdivision, school district, taxing district, or agency.
5    "National bank" means a national banking association
6located in this State and after May 31, 1997, means a national
7banking association without regard to its location.
8    "Out-of-state bank" means a bank chartered under the laws
9of a state other than Illinois, a territory of the United
10States, or the District of Columbia.
11    "Parent bank holding company" means a corporation that is
12a bank holding company as that term is defined in the Illinois
13Bank Holding Company Act of 1957 and owns 100% of the issued
14and outstanding shares of a mid-tier bank holding company.
15    "Person" means an individual, corporation, limited
16liability company, partnership, joint venture, trust, estate,
17or unincorporated association.
18    "Public agency" means the State of Illinois, the various
19counties, townships, cities, towns, villages, school
20districts, educational service regions, special road
21districts, public water supply districts, fire protection
22districts, drainage districts, levee districts, sewer
23districts, housing authorities, the Illinois Bank Examiners'
24Education Foundation, the Chicago Park District, and all other
25political corporations or subdivisions of the State of
26Illinois, whether now or hereafter created, whether herein

 

 

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1specifically mentioned or not, and shall also include any
2other state or any political corporation or subdivision of
3another state.
4    "Public funds" or "public money" means current operating
5funds, special funds, interest and sinking funds, and funds of
6any kind or character belonging to, in the custody of, or
7subject to the control or regulation of the United States or a
8public agency. "Public funds" or "public money" shall include
9funds held by any of the officers, agents, or employees of the
10United States or of a public agency in the course of their
11official duties and, with respect to public money of the
12United States, shall include Postal Savings funds.
13    "Published" means, unless the context requires otherwise,
14the publishing of the notice or instrument referred to in some
15newspaper of general circulation in the community in which the
16bank is located at least once each week for 3 successive weeks.
17Publishing shall be accomplished by, and at the expense of,
18the bank required to publish. Where publishing is required,
19the bank shall submit to the Commissioner that evidence of the
20publication as the Commissioner shall deem appropriate.
21    "Qualified financial contract" means any security
22contract, commodity contract, forward contract, including spot
23and forward foreign exchange contracts, repurchase agreement,
24swap agreement, and any similar agreement, any option to enter
25into any such agreement, including any combination of the
26foregoing, and any master agreement for such agreements. A

 

 

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1master agreement, together with all supplements thereto, shall
2be treated as one qualified financial contract. The contract,
3option, agreement, or combination of contracts, options, or
4agreements shall be reflected upon the books, accounts, or
5records of the bank, or a party to the contract shall provide
6documentary evidence of such agreement.
7    "Recorded" means the filing or recording of the notice or
8instrument referred to in the office of the Recorder of the
9county wherein the bank is located.
10    "Resulting bank" means the bank resulting from a merger or
11conversion.
12    "Secretary" means the Secretary of Financial and
13Professional Regulation, or a person authorized by the
14Secretary or by this Act to act in the Secretary's stead.
15    "Securities" means stocks, bonds, debentures, notes, or
16other similar obligations.
17    "Special purpose trust company" means a special purpose
18trust company under Article IIA of the Corporate Fiduciary
19Act.
20    "Stand-by letter of credit" means a letter of credit under
21which drafts are payable upon the condition the customer has
22defaulted in performance of a duty, liability, or obligation.
23    "State bank" means any banking corporation that has a
24banking charter issued by the Commissioner under this Act.
25    "State Banking Board" means the State Banking Board of
26Illinois.

 

 

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1    "Subsidiary" with respect to a specified company means a
2company that is controlled by the specified company. For
3purposes of paragraphs (8) and (12) of Section 5 of this Act,
4"control" means the exercise of operational or managerial
5control of a corporation by the bank, either alone or together
6with other affiliates of the bank.
7    "Surplus" means the aggregate of (i) amounts paid in
8excess of the par value of capital stock and preferred stock;
9(ii) amounts contributed other than for capital stock and
10preferred stock and allocated to the surplus account; and
11(iii) amounts transferred from undivided profits.
12    "Tier 1 Capital" and "Tier 2 Capital" have the meanings
13assigned to those terms in regulations promulgated for the
14appropriate federal banking agency of a state bank, as those
15regulations are now or hereafter amended.
16    "Trust company" means a limited liability company or
17corporation incorporated in this State for the purpose of
18accepting and executing trusts.
19    "Undivided profits" means undistributed earnings less
20discretionary transfers to surplus.
21    "Unimpaired capital and unimpaired surplus", for the
22purposes of paragraph (21) of Section 5 and Sections 32, 33,
2334, 35.1, 35.2, and 47 of this Act means the sum of the state
24bank's Tier 1 Capital and Tier 2 Capital plus such other
25shareholder equity as may be included by regulation of the
26Commissioner. Unimpaired capital and unimpaired surplus shall

 

 

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1be calculated on the basis of the date of the last quarterly
2call report filed with the Commissioner preceding the date of
3the transaction for which the calculation is made, provided
4that: (i) when a material event occurs after the date of the
5last quarterly call report filed with the Commissioner that
6reduces or increases the bank's unimpaired capital and
7unimpaired surplus by 10% or more, then the unimpaired capital
8and unimpaired surplus shall be calculated from the date of
9the material event for a transaction conducted after the date
10of the material event; and (ii) if the Commissioner determines
11for safety and soundness reasons that a state bank should
12calculate unimpaired capital and unimpaired surplus more
13frequently than provided by this paragraph, the Commissioner
14may by written notice direct the bank to calculate unimpaired
15capital and unimpaired surplus at a more frequent interval. In
16the case of a state bank newly chartered under Section 13 or a
17state bank resulting from a merger, consolidation, or
18conversion under Sections 21 through 26 for which no preceding
19quarterly call report has been filed with the Commissioner,
20unimpaired capital and unimpaired surplus shall be calculated
21for the first calendar quarter on the basis of the effective
22date of the charter, merger, consolidation, or conversion.
23(Source: P.A. 95-924, eff. 8-26-08; 95-1047, eff. 4-6-09;
2496-1000, eff. 7-2-10; 96-1163, eff. 1-1-11.)
 
25    (205 ILCS 5/30)  (from Ch. 17, par. 337)

 

 

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1    Sec. 30. Conversion; merger with trust company or special
2purpose trust company. Upon approval by the Commissioner a
3trust company having power so to do under the law under which
4it is organized may convert into a state bank or may merge into
5a state bank as prescribed by this Act; except that the action
6by a trust company shall be taken in the manner prescribed by
7and shall be subject to limitations and requirements imposed
8by the law under which it is organized which law shall also
9govern the rights of its dissenting stockholders. The rights
10of dissenting stockholders of a state bank shall be governed
11by Section 29 of this Act. The conversion or merger procedure
12shall be:
13    (1) In the case of a merger, the board of directors of both
14the merging trust company and the merging bank by a majority of
15the entire board in each case shall approve a merger agreement
16which shall contain:
17        (a) The name and location of the merging bank and of
18    the merging trust company and a list of the stockholders
19    of each as of the date of the merger agreement;
20        (b) With respect to the resulting bank (i) its name
21    and place of business; (ii) the amount of capital, surplus
22    and reserve for operating expenses; (iii) the classes and
23    the number of shares of stock and the par value of each
24    share; (iv) the charter which is to be the charter of the
25    resulting bank, together with the amendments to the
26    continuing charter and to the continuing by-laws; and (v)

 

 

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1    a detailed financial statement showing the assets and
2    liabilities after the proposed merger;
3        (c) Provisions governing the manner of converting the
4    shares of the merging bank and of the merging trust
5    company into shares of the resulting bank;
6        (d) A statement that the merger agreement is subject
7    to approval by the Commissioner and by the stockholders of
8    the merging bank and the merging trust company, and that
9    whether approved or disapproved, the parties thereto will
10    pay the Commissioner's expenses of examination;
11        (e) Provisions governing the manner of disposing of
12    the shares of the resulting bank not taken by the
13    dissenting stockholders of the merging trust company; and
14        (f) Such other provisions as the Commissioner may
15    reasonably require to enable him to discharge his duties
16    with respect to the merger.
17    (2) After approval by the board of directors of the
18merging bank and of the merging trust company, the merger
19agreement shall be submitted to the Commissioner for approval
20together with the certified copies of the authorizing
21resolution of each board of directors showing approval by a
22majority of each board.
23    (3) After receipt by the Commissioner of the papers
24specified in subsection (2), he shall approve or disapprove
25the merger agreement. The Commissioner shall not approve the
26agreement unless he shall be of the opinion and finds:

 

 

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1        (a) That the resulting bank meets the requirements of
2    this Act for the formation of a new bank at the proposed
3    place of business of the resulting bank;
4        (b) That the same matters exist in respect of the
5    resulting bank which would have been required under
6    Section 10 of this Act for the organization of a new bank;
7    and
8        (c) That the merger agreement is fair to all persons
9    affected. If the Commissioner disapproves the merger
10    agreement, he shall state his objections in writing and
11    give an opportunity to the merging bank and the merging
12    trust company to obviate such objections.
13    (4) To be effective, if approved by the Commissioner, a
14merger of a bank and a trust company where there is to be a
15resulting bank must be approved by the affirmative vote of the
16holders of at least two-thirds of the outstanding shares of
17stock of the merging bank entitled to vote at a meeting called
18to consider such action, unless holders of preferred stock are
19entitled to vote as a class in respect thereof, in which event
20the proposed merger shall be adopted upon receiving the
21affirmative vote of the holders of at least two-thirds of the
22outstanding shares of each class of shares entitled to vote as
23a class in respect thereof and of the total outstanding shares
24entitled to vote at such meeting and must be approved by the
25stockholders of the merging trust company as provided by the
26Act under which it is organized. The prescribed vote by the

 

 

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1merging bank and the merging trust company shall constitute
2the adoption of the charter and by-laws of the continuing
3bank, including the amendments in the merger agreement, as the
4charter and by-laws of the resulting bank. Written or printed
5notice of the meeting of the stockholders of the merging bank
6shall be given to each stockholder of record entitled to vote
7at such meeting at least thirty days before such meeting and in
8the manner provided in this Act for the giving of notice of
9meetings of stockholders. The notice shall state that
10dissenting stockholders of the merging trust company will be
11entitled to payment of the value of those shares which are
12voted against approval of the merger, if a proper demand is
13made on the resulting bank and the requirements of the Act
14under which the merging trust company is organized are
15satisfied.
16    (5) Unless a later date is specified in the merger
17agreement, the merger shall become effective upon the filing
18with the Commissioner of the executed merger agreement,
19together with copies of the resolutions of the stockholders of
20the merging bank and the merging trust company approving it,
21certified by the president or a vice-president or, the cashier
22and also by the secretary or other officer charged with
23keeping the records. The charter of the merging trust company
24shall thereupon automatically terminate. The Commissioner
25shall thereupon issue to the continuing bank a certificate of
26merger which shall specify the name of the merging trust

 

 

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1company, the name of the continuing bank and the amendments to
2the charter of the continuing bank provided for by the merger
3agreement. Such certificate shall be conclusive evidence of
4the merger and of the correctness of all proceedings therefor
5in all courts and places including the office of the Secretary
6of State, and said certificate shall be recorded.
7    (6) In the case of a conversion, a trust company shall
8apply for a charter by filing with the Commissioner:
9        (a) A certificate signed by its president, or a
10    vice-president, and by a majority of the entire board of
11    directors setting forth the corporate action taken in
12    compliance with the provisions of the Act under which it
13    is organized governing the conversion of a trust company
14    to a bank or governing the merger of a trust company into
15    another corporation;
16        (b) The plan of conversion and the proposed charter
17    approved by the stockholders for the operation of the
18    trust company as a bank. The plan of conversion shall
19    contain (i) the name and location proposed for the
20    converting trust company; (ii) a list of its stockholders
21    as of the date of the stockholders' approval of the plan of
22    conversion; (iii) the amount of its capital, surplus and
23    reserve for operating expenses; (iv) the classes and the
24    number of shares of stock and the par value of each share;
25    (v) the charter which is to be the charter of the resulting
26    bank; and (vi) a detailed financial statement showing the

 

 

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1    assets and liabilities of the converting trust company;
2        (c) A statement that the plan of conversion is subject
3    to approval by the Commissioner and that, whether approved
4    or disapproved, the converting trust company will pay the
5    Commissioner's expenses of examination; and
6        (d) Such other instruments as the Commissioner may
7    reasonably require to enable him to discharge his duties
8    with respect to the conversion.
9    (7) After receipt by the Commissioner of the papers
10specified in subsection (6), he shall approve or disapprove
11the plan of conversion. The Commissioner shall not approve the
12plan of conversion unless he shall be of the opinion and finds:
13        (a) That the resulting bank meets the requirements of
14    this Act for the formation of a new bank at the proposed
15    place of business of the resulting bank;
16        (b) That the same matters exist in respect of the
17    resulting bank which would have been required under
18    Section 10 of this Act for the organization of a new bank;
19    and
20        (c) That the plan of conversion is fair to all persons
21    affected.
22    If the commissioner disapproves the plan of conversion, he
23shall state his objections in writing and give an opportunity
24to the converting trust company to obviate such objections.
25    (8) Unless a later date is specified in the plan of
26conversion, the conversion shall become effective upon the

 

 

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1Commissioner's approval, and the charter proposed in the plan
2of conversion shall constitute the charter of the resulting
3bank. The Commissioner shall issue a certificate of conversion
4which shall specify the name of the converting trust company,
5the name of the resulting bank and the charter provided for by
6said plan of conversion. Such certificate shall be conclusive
7evidence of the conversion and of the correctness of all
8proceedings therefor in all courts and places including the
9office of the Secretary of State, and such certificate shall
10be recorded.
11    (8.5) A special purpose trust company under Article IIA of
12the Corporate Fiduciary Act may merge with a State bank or
13convert to a State bank as if the special purpose trust company
14were a trust company under Article II of the Corporate
15Fiduciary Act, subject to rules adopted by the Department.
16    (9) In the case of either a merger or a conversion under
17this Section 30, the resulting bank shall be considered the
18same business and corporate entity as each merging bank and
19merging trust company or as the converting trust company with
20all the property, rights, powers, duties and obligations of
21each as specified in Section 28 of this Act.
22(Source: P.A. 91-357, eff. 7-29-99.)
 
23    Section 20. The Corporate Fiduciary Act is amended by
24adding Article IIA as follows:
 

 

 

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1    (205 ILCS 620/Art. IIA heading new)
2
ARTICLE IIA. SPECIAL PURPOSE TRUST COMPANY
3
AUTHORITY AND ORGANIZATION

 
4    (205 ILCS 620/2A-1 new)
5    Sec. 2A-1. Special purpose trust company. Any corporation
6that has been or shall be incorporated under the general
7corporation laws of this State for the special purpose of
8providing fiduciary custodial services or providing other like
9or related services as specified by rule, consistent with this
10Article, may be appointed to act as a fiduciary with respect to
11such services and shall be designated a special purpose trust
12company.
 
13    (205 ILCS 620/2A-2 new)
14    Sec. 2A-2. Certificate of authority.
15    (a) It shall not be lawful for any person to engage in the
16activity of a special purpose trust company after the
17effective date of this amendatory Act of the 102nd General
18Assembly without first filing an application for and procuring
19from the Secretary a certificate of authority stating that the
20person has complied with the requirements of this Act and is
21qualified to engage in the activity of a special purpose trust
22company.
23    (b) No natural person or natural persons, firm, or
24partnership, or corporation not having been authorized under

 

 

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1this Act shall transact in the activity of a special purpose
2trust company. A person who violates this Section is guilty of
3a Class A misdemeanor and the Attorney General or State's
4Attorney of the county in which the violation occurs may
5restrain the violation by a complaint for injunctive relief.
6    (c) Any entity that holds a certificate of authority under
7Article II of this Act may engage in the activity of a special
8purpose trust company without applying for or receiving a
9certificate of authority under this Article IIA.
 
10    (205 ILCS 620/2A-3 new)
11    Sec. 2A-3. Rulemaking and organization.
12    (a) The Department shall adopt rules for the
13administration of this Article, including, but not limited to:
14rules for defining statutory terms; applying for a certificate
15of authority; review, investigation, and approval of
16application for certificate of authority; capital
17requirements; merger, change of control, conversion, and
18successor trustee; office location and name; collateralizing
19fiduciary assets; and general corporate powers.
20    (b) Articles V, VI, VII, VIII, and IX of this Act shall
21apply to a special purpose trust company under this Article as
22if the special purpose trust company were a trust company
23authorized under Article II of this Act, subject to any rules
24adopted by the Department.
 

 

 

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1    Section 25. The Blockchain Business Development Act is
2amended by adding Section 11 as follows:
 
3    (205 ILCS 725/11 new)
4    Sec. 11. Digital asset custody rules.
5    (a) As used in this Section, "digital asset" means a
6representation of economic, proprietary, or access rights that
7is stored in a computer readable format.
8    (b) The Department of Financial and Professional
9Regulation, in addition to the authority provided under any
10other law, shall have authority to adopt rules, opinions, or
11interpretive letters regarding the provision of custodial
12services for digital assets by banks chartered under the
13Illinois Banking Act, savings banks chartered under the
14Savings Bank Act, credit unions chartered under the Illinois
15Credit Union Act, and corporate fiduciaries authorized under
16Article II or IIA of the Corporate Fiduciary Act.
 
17    Section 95. No acceleration or delay. Where this Act makes
18changes in a statute that is represented in this Act by text
19that is not yet or no longer in effect (for example, a Section
20represented by multiple versions), the use of that text does
21not accelerate or delay the taking effect of (i) the changes
22made by this Act or (ii) provisions derived from any other
23Public Act.
 

 

 

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1    Section 99. Effective date. This Act takes effect upon
2becoming law.".