Full Text of SB3679 103rd General Assembly
SB3679enr 103RD GENERAL ASSEMBLY | | | SB3679 Enrolled | | LRB103 39381 AWJ 69554 b |
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| 1 | | AN ACT concerning local government. | 2 | | Be it enacted by the People of the State of Illinois, | 3 | | represented in the General Assembly: | 4 | | Section 1. Short title. This Act may be cited as the | 5 | | Business Improvement District Law. | 6 | | Section 5. Purpose. The General Assembly finds that it is | 7 | | in the interest of the State of Illinois to promote the | 8 | | economic revitalization and physical maintenance of business | 9 | | districts in order to create jobs, attract new businesses, | 10 | | retain existing businesses, increase public safety, and spur | 11 | | new investments. The General Assembly finds that this purpose | 12 | | may best be accomplished by allowing business improvement | 13 | | districts to fund business-related activities and improvements | 14 | | through the levy of district charges upon the owners of real | 15 | | property that receive benefits from those activities and | 16 | | improvements. | 17 | | Section 7. Applicability. This Act applies only to | 18 | | municipalities having a population exceeding 500,000. | 19 | | Section 10. Definitions. As used in this Act: | 20 | | "Activities" means services provided for the purpose of | 21 | | conferring benefit upon assessed owners of property located |
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| 1 | | within a business improvement district, including, but not | 2 | | limited to: | 3 | | (1) promotion of events taking place within the | 4 | | business improvement district; | 5 | | (2) furnishing of music; | 6 | | (3) marketing and economic development, including | 7 | | retail retention and recruitment; | 8 | | (4) providing security, sanitation, graffiti removal, | 9 | | street and sidewalk cleaning, and other services | 10 | | supplemental to base services; and | 11 | | (5) other services provided for the purpose of | 12 | | conferring benefit upon assessed owners of property | 13 | | located within the business improvement district. | 14 | | "Activities" does not include lobbying, as that term is | 15 | | defined in Section 2 of the Lobbyist Registration Act and | 16 | | Chapter 2-156 of the Municipal Code of Chicago. | 17 | | "Base services" means services provided by any public | 18 | | entity, or paid for wholly or in part out of public funds, | 19 | | generally throughout a municipality to real property within | 20 | | the municipality. | 21 | | "Business improvement district" means a contiguous area | 22 | | within a municipality in which activities, improvements, or | 23 | | activities and improvements are provided in addition to base | 24 | | services. Territory shall be considered contiguous for | 25 | | purposes of this Act even though certain completely surrounded | 26 | | portions of the territory are excluded from the business |
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| 1 | | improvement district. For purposes of this Act, parcels are | 2 | | within the same contiguous area if they touch or join one | 3 | | another in a reasonably substantial physical sense or if they | 4 | | meet the criteria for annexation to a municipality under | 5 | | Section 7-1-1 of the Illinois Municipal Code. | 6 | | "Clerk" means the municipal clerk. | 7 | | "District charge" means a charge levied on behalf of a | 8 | | business improvement district for the purpose of acquiring, | 9 | | constructing, installing, or maintaining improvements or | 10 | | providing activities that will confer special benefits upon | 11 | | assessed property owners within the business improvement | 12 | | district. District charges levied for the purpose of | 13 | | conferring special benefits upon assessed property owners | 14 | | within a business improvement district are not taxes for the | 15 | | general benefit of a municipality, even if real property or | 16 | | persons not charged receive incidental or collateral | 17 | | beneficial effects. | 18 | | "District management association" means a private or | 19 | | not-for-profit entity that enters into a contract with a board | 20 | | of directors of a business improvement district to administer | 21 | | or implement activities and improvements specified in the | 22 | | district plan for a business improvement district. A district | 23 | | management association shall not be considered a public entity | 24 | | for any purpose. | 25 | | "District plan" means a proposal for a business | 26 | | improvement district that contains the information described |
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| 1 | | in Section 15. | 2 | | "Governing body" means the corporate authorities of a | 3 | | municipality. | 4 | | "Improvements" means the acquisition, construction, | 5 | | installation, or maintenance of any tangible property provided | 6 | | for the purpose of conferring benefit upon assessed property | 7 | | owners located within a business improvement district. | 8 | | "Property owner" or "owner" means the record owner of fee | 9 | | simple interest in a real property subject to assessment, | 10 | | which will be deemed to be the person or entity that pays | 11 | | property taxes on the real property according to county | 12 | | records, unless another person or entity establishes to the | 13 | | municipality by clear and convincing evidence that they are | 14 | | the record owner of the fee simple interest. | 15 | | "Public entity" means (i) the State or any agency, board, | 16 | | or commission of the State, (ii) any school district, or (iii) | 17 | | any unit of local government. | 18 | | Section 15. District plan. | 19 | | (a) A business improvement district established under this | 20 | | Act is subject to and governed by a district plan, as may be | 21 | | amended as set forth in Section 60, and filed with the clerk. A | 22 | | district plan shall be prepared by the property owner or | 23 | | owners who submit the written petition to the clerk under | 24 | | Section 30. | 25 | | (b) The district plan shall include, but need not be |
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| 1 | | limited to, the following: | 2 | | (1) The name of the business improvement district. | 3 | | (2) A map of the business improvement district in | 4 | | sufficient detail to allow a property owner to reasonably | 5 | | determine whether a parcel of real property is located | 6 | | within the boundaries of the business improvement | 7 | | district. | 8 | | (3) A description of the boundaries of the business | 9 | | improvement district in a manner sufficient to identify | 10 | | the real property included in the business improvement | 11 | | district. | 12 | | (4) The initial term of the business improvement | 13 | | district. | 14 | | (5) A statement identifying the activities and | 15 | | improvements within the business improvement district that | 16 | | may be provided from time to time for which property | 17 | | owners will be charged and that the activities and | 18 | | improvements that are provided may vary from year to year | 19 | | and may differ by class. | 20 | | (6) A statement identifying the maximum amount of the | 21 | | annual district charge to be levied and that the maximum | 22 | | amount of the annual district charge levied may vary from | 23 | | year to year. | 24 | | (7) A statement identifying the maximum amount of | 25 | | total district charges to be levied for the term of the | 26 | | business improvement district. |
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| 1 | | (8) A statement identifying the proposed source or | 2 | | sources of financing, including the proposed method and | 3 | | basis of levying an assessment, in sufficient detail to | 4 | | allow each property owner to calculate (i) the estimated | 5 | | amount of the district charge to be levied upon the | 6 | | property owner annually, (ii) the maximum amount of the | 7 | | district charge that could be levied upon the property | 8 | | owner annually, and (iii) the total amount of the district | 9 | | charges that could be levied upon the property owner for | 10 | | the term of the business improvement district. | 11 | | (9) Any interest or penalties that may be imposed for | 12 | | delinquent payment of a district charge. | 13 | | (10) A list of the real property subject to a district | 14 | | charge, and a statement of any proposed classifications. | 15 | | The list shall include the permanent tax index number of | 16 | | each parcel located within the business improvement | 17 | | district. | 18 | | (11) A statement of the real property classes exempt | 19 | | from charge, and a list of the real property to be | 20 | | exempted. | 21 | | (12) A statement identifying the proposed procedures | 22 | | for renewal, subject to the limitations under Section 55. | 23 | | (13) A statement identifying the district management | 24 | | association and the district management association's | 25 | | anticipated liability insurance coverage limits if the | 26 | | business improvement district will be contracting with a |
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| 1 | | district management association. | 2 | | (14) A statement identifying how unspent revenue | 3 | | collected from district charges may be allocated, carried | 4 | | over year to year, or returned to the assessed property | 5 | | owners at the end of each year by applying the same method | 6 | | and basis that was used to calculate the district charges | 7 | | levied throughout the term of the business improvement | 8 | | district. | 9 | | (15) The manner by which an assessed property owner | 10 | | may contest the calculation of a specific district charge. | 11 | | (16) A statement identifying the business improvement | 12 | | district's governance structure. The governance structure | 13 | | shall include a board of directors, and the statement | 14 | | shall identify the size of the board, the manner in which | 15 | | directors are elected or appointed to serve on the board, | 16 | | the term of the board members, and any other details | 17 | | required under Section 50 of this Act. | 18 | | (17) The anticipated annual percentage of total | 19 | | district charges that will be allocated for administrative | 20 | | expenses to operate and maintain the business improvement | 21 | | district. | 22 | | (18) A statement identifying if a class or classes of | 23 | | real property exempt from district charges may elect to | 24 | | have a district charge levied against the property for the | 25 | | purposes of receiving benefits from the business | 26 | | improvement district. If the district plan authorizes this |
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| 1 | | elective participation, the district plan must also | 2 | | identify the process by which the property owner | 3 | | affirmatively elects to participate, the maximum annual | 4 | | amount of district charges to be levied against the | 5 | | property owner, and the maximum amount of total district | 6 | | charges to be levied against the property owner for the | 7 | | term of the business improvement district. | 8 | | (19) Any proposed rules and regulations to be applied | 9 | | to the business improvement district. | 10 | | Section 20. Assessments and district charges. | 11 | | (a) Each district plan shall provide for an assessment | 12 | | levied upon property owners owning property within the | 13 | | business improvement district upon which district charges are | 14 | | based, except an assessment may not be levied against a public | 15 | | entity even if the public entity owns property within the | 16 | | business improvement district. Unless the district plan | 17 | | provides for elective participation and the property owner | 18 | | elects to have a district charge assessed and levied upon the | 19 | | property owner, assessments may not be levied upon property | 20 | | owners owning property within the business improvement | 21 | | district that is classified for purposes of taxation under | 22 | | established ordinance by the local county board as residential | 23 | | or exempt from taxation, except that for properties located in | 24 | | Cook County, this only applies to properties granted Class 0 | 25 | | and Class 2 classification under the classification system for |
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| 1 | | assessment in effect when the assessment is levied. District | 2 | | charges shall be levied at a rate or amount sufficient to | 3 | | produce revenues required to provide the activities and | 4 | | improvements specified in the district plan, except a district | 5 | | charge may not be levied against a single property owner that | 6 | | exceeds 20% of the total district charges assessed in the | 7 | | business improvement district. The revenue from the levy of | 8 | | district charges within a business improvement district may | 9 | | not be used to provide services outside the business | 10 | | improvement district or for any purpose other than the | 11 | | purposes set forth in the ordinance adopting the district | 12 | | plan. The business improvement district is not required to use | 13 | | revenue from the levy of district charges within a business | 14 | | improvement district to provide services to any property | 15 | | wherein a district charge is not levied against the property | 16 | | owner. | 17 | | (b) District charges shall be levied on the basis of the | 18 | | estimated benefit to the real property located within the | 19 | | business improvement district. In determining the assessment, | 20 | | the board of directors of a business improvement district may | 21 | | reasonably classify real property for purposes of determining | 22 | | benefit if so provided in the district plan. The | 23 | | classification may be based on various factors, including, as | 24 | | applicable, square footage, geography, or any other factor | 25 | | reasonably relating to the benefit received. Certain classes | 26 | | may be specified in the district plan as exempted from being |
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| 1 | | charged if they would not receive a special benefit from the | 2 | | activities and improvements. District charges need not be | 3 | | imposed on different classes on the same basis or the same | 4 | | rate. | 5 | | (c) District charges levied upon property owners owning | 6 | | property within the business improvement district may be | 7 | | billed and collected as follows: | 8 | | (1) the county collector of the county in which a | 9 | | business improvement district is located may bill and | 10 | | collect district charges with the regular property tax | 11 | | bills of the county if requested by a municipality within | 12 | | its jurisdiction that has established a business | 13 | | improvement district; however, no municipality is required | 14 | | to make this request of its county collector. If the | 15 | | county collector agrees to bill and collect district | 16 | | charges with the regular property tax bills of the county, | 17 | | then the applicable district plan shall be filed with the | 18 | | county collector and the annual amount due as set forth by | 19 | | the board of directors of a business improvement district | 20 | | shall become due in installments at the times property | 21 | | taxes shall become due in accordance with each regular | 22 | | property tax bill payable during the year in which the | 23 | | district charge comes due. The county collector shall | 24 | | promptly remit the district charges collected to the | 25 | | municipality; or | 26 | | (2) if the county collector does not agree to bill and |
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| 1 | | collect district charges with the regular property tax | 2 | | bills of the county or the municipality that has | 3 | | established the business improvement district declines to | 4 | | request the county collector to do so, then the | 5 | | municipality shall bill and collect the district charges, | 6 | | either directly or through a third party, and the annual | 7 | | amount due as set forth by the board of directors of the | 8 | | business improvement district in accordance with the | 9 | | district plan shall become due in installments on or about | 10 | | the times property taxes would otherwise become due in | 11 | | accordance with each regular property tax bill payable | 12 | | during the year in which the district charge comes due. | 13 | | The governmental unit shall not bill the business | 14 | | improvement district for the cost of billing and | 15 | | collecting the district charges, but may pass on the | 16 | | actual costs incurred if using a third party to bill and | 17 | | collect the district charges. | 18 | | (d) District charges shall be payable at the times and in | 19 | | the manner set forth in the applicable bill. Delinquent | 20 | | payments for district charges levied pursuant to this Act may | 21 | | be charged interest and penalties as may be set forth in the | 22 | | district plan. | 23 | | (e) District charges shall promptly, and in no case later | 24 | | than 90 days after collection, be remitted by the municipality | 25 | | to the board of directors of a business improvement district. |
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| 1 | | Section 25. Boundaries of business improvement district. | 2 | | (a) The boundaries of a proposed business improvement | 3 | | district may not overlap with the boundaries of another | 4 | | business improvement district or with the boundaries of a | 5 | | special service area established pursuant to the Special | 6 | | Service Area Tax Law. | 7 | | (b) The boundaries of any proposed business improvement | 8 | | district may overlap with the boundaries of a tax increment | 9 | | financing district. | 10 | | Section 30. Proposals to establish a business improvement | 11 | | district. | 12 | | (a) To propose a business improvement district, a written | 13 | | petition satisfying the requirements of Section 75 shall be | 14 | | filed with the clerk and shall include the name and legal | 15 | | status of the filing party, information specifying where the | 16 | | complete district plan can be obtained, and a summary of the | 17 | | district plan that includes: the boundaries of the proposed | 18 | | business improvement district; the proposed activities and | 19 | | improvements and estimated amount of annual funding required; | 20 | | the method of assessment; the business improvement district's | 21 | | governance structure; and the total amount of the proposed | 22 | | district charges. The information contained in the summary | 23 | | shall be sufficient if it enables a property owner to | 24 | | generally identify the location and extent of the proposed | 25 | | business improvement district, the nature and extent of the |
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| 1 | | activities and improvements, the estimated annual district | 2 | | charge that the property owner would pay, and the maximum | 3 | | annual district charge that the property owner would pay. | 4 | | (b) Upon receiving a written petition to establish a | 5 | | business improvement district and concluding that the petition | 6 | | meets the requirements of Section 75, the clerk shall submit | 7 | | the petition to the governing body. | 8 | | Section 35. Resolution of intent to consider establishment | 9 | | of a business improvement district. After receiving a verified | 10 | | petition from the clerk, the governing body shall, within 90 | 11 | | days, adopt a resolution of intention to consider the | 12 | | establishment of a business improvement district. The | 13 | | resolution shall state the time and place of a public hearing | 14 | | to be held by the governing body to consider establishment of a | 15 | | business improvement district and shall restate all the | 16 | | information contained in the petition regarding the boundaries | 17 | | of the proposed business improvement district, the proposed | 18 | | activities and improvements, and estimated amount of annual | 19 | | funding required, the method of assessment, the governance | 20 | | structure, and the total amount of the proposed district | 21 | | charges anticipated for the initial term of the business | 22 | | improvement district. | 23 | | Section 40. Establishment. | 24 | | (a) Within 30 days after the public hearing to consider |
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| 1 | | establishment of a business improvement district, the party | 2 | | who filed the district plan with the clerk may modify the | 3 | | district plan, including to satisfy any applicable legal | 4 | | requirements or remedy any deficiencies, prior to the adoption | 5 | | of an ordinance establishing a business improvement district. | 6 | | Any modification to the district plan that changes the source | 7 | | or sources of financing, including the method and basis of | 8 | | levying the district charge or an increase or reduction in the | 9 | | maximum annual amount or maximum total amount of the district | 10 | | charge against one or more properties within the business | 11 | | improvement district, the procedures for renewal, the | 12 | | boundaries of a business improvement district, the business | 13 | | improvement district's board of director's governance | 14 | | structure, the activities and improvements to be provided | 15 | | within the business improvement district, or a change to the | 16 | | filing party must be approved by a written petition that | 17 | | conforms to the petition signature requirements set forth in | 18 | | Section 75. If the district plan is so modified, the governing | 19 | | body shall call an additional public hearing to hear and | 20 | | consider objections to the modified district plan prior to the | 21 | | adoption of an ordinance establishing a business improvement | 22 | | district. | 23 | | (b) If, following all required public hearings, the | 24 | | governing body decides to establish a business improvement | 25 | | district, the governing body shall adopt an ordinance | 26 | | establishing the business improvement district that shall |
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| 1 | | include, but is not limited to, all the following information: | 2 | | (1) A detailed description of: the boundaries of the | 3 | | proposed business improvement district, which may be made | 4 | | by reference to a plan or map; the proposed activities and | 5 | | improvements, and an estimated amount of annual funding | 6 | | required; the method of assessment; the maximum amount of | 7 | | annual district charges; and the total amount of the | 8 | | proposed district charges for the initial term of the | 9 | | business improvement district. The descriptions shall be | 10 | | sufficient if the descriptions enable a property owner to | 11 | | generally identify the location and extent of the proposed | 12 | | business improvement district, the nature and extent of | 13 | | the activities and improvements, and the maximum annual | 14 | | district charge that the property owner would pay. | 15 | | (2) The time and place where any public hearing | 16 | | concerning the establishment of the business improvement | 17 | | district was held. | 18 | | (3) A statement that the activities and improvements | 19 | | to be conferred upon property owners will be funded by the | 20 | | levy of district charges. | 21 | | (4) A finding that each item in the district plan | 22 | | satisfies all applicable legal requirements and that | 23 | | establishing the business improvement district is in the | 24 | | public interest. | 25 | | (5) The adoption of the district plan, as may be | 26 | | modified pursuant to subsection (a), including each item |
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| 1 | | set forth in Section 15. | 2 | | (6) A statement identifying the entity that will be | 3 | | responsible for administering district charges, including | 4 | | the functions of billing, collecting, and enforcement, | 5 | | pursuant to Section 20. | 6 | | (7) Authorization for the municipality to remit | 7 | | district charges to the board of directors of a business | 8 | | improvement district for the provision of activities and | 9 | | improvement. | 10 | | (8) The deadline and manner for submitting the annual | 11 | | report required in Section 65. | 12 | | (c) The ordinance establishing the business improvement | 13 | | district may not create additional obligations, burdens, | 14 | | requirements, liabilities, or restrictions for the business | 15 | | improvement district, board of directors of a business | 16 | | improvement district, or, when applicable, district management | 17 | | association other than those that are expressly contemplated | 18 | | by the district plan. | 19 | | Section 45. Activities and improvements. | 20 | | (a) Upon establishment of a business improvement district, | 21 | | the municipality or county collector may levy and collect the | 22 | | district charge pursuant to Section 20 as allowed by the | 23 | | district plan and the ordinance adopting the district plan. | 24 | | (b) Activities and improvements provided pursuant to this | 25 | | Act shall be provided in addition to base services. The |
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| 1 | | appropriate municipality shall continue to provide the same | 2 | | level of base services in any business improvement district as | 3 | | is provided to other real property within the municipality. | 4 | | The business improvement district is not expected or required | 5 | | to supplement any base services, but the board of directors of | 6 | | a business improvement district or the district management | 7 | | association, whichever may be applicable, may cause activities | 8 | | and improvements that supplement any base services within the | 9 | | business improvement district in accordance with the district | 10 | | plan. | 11 | | Section 50. Governance. | 12 | | (a) The board of directors of a business improvement | 13 | | district shall be established as a not-for-profit corporation | 14 | | subject to all applicable State and federal laws or | 15 | | regulations. | 16 | | (b) The bylaws of a board of directors of a business | 17 | | improvement district shall provide for voting representation | 18 | | of owners whose real property is located within the business | 19 | | improvement district and may provide that the votes be | 20 | | weighted in proportion to the district charge levied or to be | 21 | | levied upon property owners within the business improvement | 22 | | district, except the total number of votes assigned to one | 23 | | owner may not exceed 20% of the total number of votes which may | 24 | | be cast. | 25 | | (c) In the initial year of the first term of a business |
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| 1 | | improvement district, unless a lower threshold is expressly | 2 | | provided for in the district plan, all serving on the board of | 3 | | directors shall be property owners, their property management | 4 | | agents, or their tenant designees whose real property is | 5 | | located within the business improvement district. After the | 6 | | initial year of the first term of a business improvement | 7 | | district, at least 25% of the members of the board of directors | 8 | | must consist of tenant designees of property owners whose real | 9 | | property is located within the business improvement district. | 10 | | In order to satisfy the 25% tenant designee requirement, the | 11 | | board may increase in size if permitted under the district | 12 | | plan and bylaws of the board of directors pursuant to | 13 | | subsection (b). As used in this subsection, "tenant designee" | 14 | | includes (i) an individual, partnership, corporation, | 15 | | association, joint venture, or other commercial entity that | 16 | | maintains a tenancy agreement with a property owner for real | 17 | | property located within the business improvement district or | 18 | | (ii) a private or not-for-profit entity that represents the | 19 | | interests of an individual partnership, corporation, | 20 | | association, joint venture, or other commercial entity that | 21 | | maintains a tenancy agreement with a property owner for real | 22 | | property located within the business improvement district, and | 23 | | who is required to pay some portion of the district charge | 24 | | assessed against the property owner pursuant to the tenancy | 25 | | agreement or some other written agreement maintained with the | 26 | | property owner. In order for a tenant designee to be eligible |
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| 1 | | to serve on the board of directors of a business improvement | 2 | | district, the tenant designee's tenancy agreement with the | 3 | | property owner must cover leased space that constitutes a | 4 | | substantial percentage of the total leasable area within the | 5 | | property owner's property located inside the business | 6 | | improvement district and whose presence substantially | 7 | | contributes to the property's overall economic viability. A | 8 | | tenant designee may be deemed to substantially contribute to | 9 | | the property's overall economic viability based on factors | 10 | | such as leased square footage, revenue contribution, industry | 11 | | prominence, or other considerations relevant to the property's | 12 | | commercial dynamics. The determination of a tenant designee as | 13 | | substantially contributing to the property's overall economic | 14 | | viability shall be at the sole discretion of the property | 15 | | owner. Failure to fill vacancies allocated to a tenant | 16 | | designee do not prevent the board of directors from continuing | 17 | | operations if the board of directors is operating consistent | 18 | | with the bylaws of the board of directors and any applicable | 19 | | State or federal law. | 20 | | (d) The composition of the board of directors shall be | 21 | | described in the statement identifying the governance | 22 | | structure of the business improvement district in the district | 23 | | plan. If allowed by the district plan, the bylaws of a board of | 24 | | directors of a business improvement district may establish a | 25 | | variable range for the size of the board by prescribing a | 26 | | minimum and maximum number of directors. If a variable range |
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| 1 | | is established, unless the district plan otherwise provides, | 2 | | the number of directors may be fixed or changed from time to | 3 | | time, within the minimum and maximum, by the directors without | 4 | | further amendment to the bylaws. | 5 | | (e) For each business improvement district, the board of | 6 | | directors of the business improvement district may contract | 7 | | with a district management association if so designated in the | 8 | | district plan to administer the operation of and provide for | 9 | | and maintain activities and improvements in and for a business | 10 | | improvement district. The contract may provide for the | 11 | | provision and maintenance of activities and improvements by | 12 | | one or more subcontractors of a district management | 13 | | association. | 14 | | (f) In addition to other powers as are conferred on it by | 15 | | law, the board of directors of a business improvement district | 16 | | may make recommendations to the governing body with respect to | 17 | | any matter involving or relating to the business improvement | 18 | | district. | 19 | | (g) For consideration as it may deem appropriate, the | 20 | | governing body may license or grant to the board of directors | 21 | | of a business improvement district the right to undertake or | 22 | | permit commercial activities or other private uses of the | 23 | | streets or other parts of the business improvement district in | 24 | | which the municipality has any real property interest. | 25 | | Section 55. Term; renewal. |
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| 1 | | (a) The initial term for a business improvement district | 2 | | shall be a maximum of 5 years. Any business improvement | 3 | | district may be renewed one or more times by following the | 4 | | procedures for renewal as provided in the district plan if | 5 | | each property owner that is subject to assessment is notified | 6 | | of a pending renewal. A renewal may not go into effect when, | 7 | | prior to the effective date of the renewal, a written petition | 8 | | seeking termination of the renewal that conforms to the | 9 | | petition signature requirements set forth in Section 75 is | 10 | | delivered to the clerk. | 11 | | (b) Upon each renewal, a business improvement district | 12 | | shall have an additional term not to exceed 10 years. Prior to | 13 | | renewal, the ordinance adopting the district plan may be | 14 | | amended pursuant to Section 60, with the amendments to take | 15 | | effect upon renewal. | 16 | | (c) Upon renewal, any remaining revenues derived from the | 17 | | levy of district charges, or any revenues derived from the | 18 | | sale of assets acquired with the revenues, shall be | 19 | | transferred to the board of directors of the renewed business | 20 | | improvement district. If the renewed business improvement | 21 | | district includes additional real property not included within | 22 | | the prior business improvement district, the remaining | 23 | | revenues shall be spent to benefit only the real property | 24 | | within the boundaries of the prior business improvement | 25 | | district. If the renewed business improvement district does | 26 | | not include real property included in the prior business |
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| 1 | | improvement district, the remaining revenues attributable to | 2 | | that real property shall be refunded to the property owners of | 3 | | that real property. | 4 | | Section 60. Amendments. | 5 | | (a) Only upon the written request of the board of | 6 | | directors of a business improvement district may the governing | 7 | | body amend the ordinance adopting the district plan upon which | 8 | | the establishment or renewal of the business improvement | 9 | | district was based as set forth in this Section. | 10 | | (b) Amendments that provide for any change to the source | 11 | | or sources of financing, including the method and basis of | 12 | | levying the district charge or an increase in the maximum | 13 | | annual district charge or the maximum total district charges | 14 | | for the term of the business improvement district, or that | 15 | | provide for any change to the procedures for renewal may be | 16 | | adopted by the governing body by ordinance if, after a public | 17 | | hearing, the governing body determines that it is in the | 18 | | public interest to authorize the change to the source or | 19 | | sources of financing or to authorize the change to the | 20 | | procedures for renewal. | 21 | | (c) Amendments that provide for a change to the boundaries | 22 | | of a business improvement district may be adopted by the | 23 | | governing body by ordinance if, after a public hearing, the | 24 | | governing body determines that it is in the public interest to | 25 | | authorize the change to the boundaries of the business |
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| 1 | | improvement district and, if applicable, that all newly | 2 | | included property will benefit from the activities and | 3 | | improvements provided. The governing body may change the | 4 | | boundaries of a business improvement district by either | 5 | | expanding or reducing the existing boundaries. If the change | 6 | | to the boundaries is an expansion to existing boundaries, the | 7 | | expansion area must be contiguous with an existing boundary | 8 | | and the district charges upon property owners in the expansion | 9 | | area shall comply with the requirements of Section 20. The | 10 | | governing body may consider an expansion to the boundaries of | 11 | | a business improvement district only upon receipt of a written | 12 | | petition of property owners within the proposed expansion area | 13 | | that conforms to the petition signature requirements set forth | 14 | | in Section 75. Any revenues that are unspent at the time of an | 15 | | amendment expanding the boundaries of a business improvement | 16 | | district shall be spent to benefit only the real property | 17 | | within the prior boundaries of the business improvement | 18 | | district. If the change to the boundaries is a reduction to | 19 | | existing boundaries, any revenues that are unspent at the time | 20 | | of the amendment and are associated with real property that is | 21 | | being removed from the business improvement district, then | 22 | | those remaining revenues shall be refunded to the assessed | 23 | | property owners of the real property. Any amendment that | 24 | | changes the boundaries of a business improvement district | 25 | | shall provide an updated map of the business improvement | 26 | | district that reflects the expansion or reduction of its |
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| 1 | | boundaries. | 2 | | (d) Notice shall be given and public hearings shall be | 3 | | held in accordance with Sections 80 and 85. | 4 | | (e) An amendment not provided for in subsection (b) or (c) | 5 | | may be adopted by the governing body by ordinance without | 6 | | notice and a public hearing if the governing body determines | 7 | | that the amendment is consistent with the objectives of the | 8 | | district plan and is in the public interest to approve the | 9 | | amendment, but the amendment may not create any additional | 10 | | obligations, burdens, requirements, liabilities, or | 11 | | restrictions for the business improvement district or the | 12 | | board of directors of a business improvement district other | 13 | | than those that are expressly allowed by the district plan. | 14 | | Section 65. Reports. | 15 | | (a) The board of directors of a business improvement | 16 | | district or the district management association, whichever may | 17 | | be applicable, shall prepare or have prepared a report for | 18 | | each fiscal year, except the first fiscal year, for which | 19 | | district charges are to be levied and collected to pay the | 20 | | costs of activities and improvements. The first report shall | 21 | | be submitted after the first year of operation of the business | 22 | | improvement district. | 23 | | (b) The report shall be submitted to the governing body, | 24 | | and to each property owner subject to a district charge upon | 25 | | request, and shall be made available for public inspection. |
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| 1 | | The report shall refer to the business improvement district by | 2 | | name, specify the fiscal year to which the report applies, | 3 | | and, with respect to that fiscal year, shall contain, but is | 4 | | not limited to, all the following information: | 5 | | (1) The activities and improvements provided in the | 6 | | previous fiscal year. | 7 | | (2) The cost of the activities and improvements | 8 | | provided in the previous fiscal year. | 9 | | (3) Administrative expenses incurred in connection | 10 | | with the activities and improvements provided in the | 11 | | previous fiscal year. | 12 | | (4) All other administrative expenses incurred in the | 13 | | previous fiscal year not contemplated by paragraph (3). | 14 | | (5) The amount of any surplus or deficit revenues to | 15 | | be carried over from the previous fiscal year. | 16 | | (6) A comparison of the projected budget to the actual | 17 | | expenditures of the business improvement district for the | 18 | | previous fiscal year. | 19 | | (7) Planned activities and improvements and projected | 20 | | costs and administrative expenses for the upcoming fiscal | 21 | | year. | 22 | | (8) When applicable, the annual performance evaluation | 23 | | of the district management association to be conducted by | 24 | | the board of directors for the business improvement | 25 | | district. | 26 | | (9) Applicable annual milestones and metrics for the |
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| 1 | | purposes of measuring the success of the business | 2 | | improvement district, including the impacts of the | 3 | | activities and improvements contemplated by the district | 4 | | plan on economic activity, labor market, public and | 5 | | community safety statistics, and property values within | 6 | | the business improvement district. | 7 | | (10) Clear instructions on how to access any other | 8 | | publicly available report or filing submitted by the | 9 | | business improvement district under applicable State or | 10 | | federal laws or regulations. | 11 | | (c) In addition to the annual reporting requirement, the | 12 | | board of directors of a business improvement district shall | 13 | | notify the governing body of any proposed infrastructure or | 14 | | capital project in excess of $50,000 within a reasonable time. | 15 | | Section 70. Dissolution. | 16 | | (a) After a public hearing on the subject of dissolution, | 17 | | the governing body may dissolve by ordinance any business | 18 | | improvement district in either of the following circumstances: | 19 | | (1) If the governing body finds there has been | 20 | | misappropriation of funds, malfeasance, or a violation of | 21 | | law in connection with the management of the business | 22 | | improvement district; or | 23 | | (2) Each year during the term of the business | 24 | | improvement district, there shall be a 60-day period in | 25 | | which property owners who paid more than 50% of the total |
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| 1 | | of district charges levied in the prior year may request | 2 | | dissolution of a business improvement district by a | 3 | | written petition that conforms to the petition signature | 4 | | requirements set forth in Section 75. The first period | 5 | | shall begin 60 days prior to one year after the date of | 6 | | establishment of the district and shall continue for 60 | 7 | | days. The next 60-day period shall begin 60 days prior to 2 | 8 | | years after the date of the establishment of the district. | 9 | | Each successive year during the term of the district shall | 10 | | have a 60-day period beginning 60 days after the | 11 | | anniversary of the date of the establishment of the | 12 | | district. | 13 | | (b) The governing body shall adopt a resolution of | 14 | | intention to dissolve the business improvement district prior | 15 | | to a public hearing required by this section. The resolution | 16 | | shall state the reason for the dissolution, shall state the | 17 | | time and place of the public hearing, and shall contain a | 18 | | proposal to dispose of any assets acquired with the revenues | 19 | | of district charges levied on behalf of the business | 20 | | improvement district in accordance with subsection (d). | 21 | | (c) Notice shall be given and public hearings shall be | 22 | | held in accordance with Sections 80 and 85. | 23 | | (d) Upon the dissolution or expiration without renewal of | 24 | | a district, and after all outstanding debts are paid, any | 25 | | remaining revenues derived from the levy of district charges, | 26 | | including any remaining revenues from district charges |
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| 1 | | collected after dissolution, or derived from the sale of | 2 | | assets acquired with these revenues or construction funds, | 3 | | shall be either: (i) refunded to the property owners then | 4 | | located or operating within the business improvement district | 5 | | in which district charges were levied by applying the same | 6 | | method and basis that was used to calculate the district | 7 | | charges levied in the fiscal year in which the district | 8 | | dissolves or expires; or (ii) spent on activities or | 9 | | improvements specified in the district plan under a valid and | 10 | | enforceable contract executed by the board of directors of a | 11 | | business improvement district or the district management | 12 | | association, whichever may be applicable, prior to the | 13 | | dissolution. If the dissolution occurs before district charges | 14 | | are levied for the fiscal year, the method and basis that was | 15 | | used to calculate district charges levied in the immediate | 16 | | prior fiscal year shall be used to calculate the amount of any | 17 | | refund. | 18 | | Section 75. Petition signature requirements. Any petition | 19 | | required by this Act must be signed by property owners in the | 20 | | proposed business improvement district or proposed expanded | 21 | | area of a business improvement district, as the case may be, | 22 | | who cumulatively are expected to pay more than 50% of the total | 23 | | amount of the district charges proposed to be levied. All | 24 | | signatures for a petition to establish or expand a business | 25 | | improvement district must be collected within a period ending |
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| 1 | | no more than 120 days from the initiation of the petition, | 2 | | which date shall be specified on the petition. | 3 | | Section 80. Manner of notice. In addition to any notice of | 4 | | a public hearing issued by a governing body, the property | 5 | | owner or owners who submit the written petition to the clerk | 6 | | under Section 30 or, after a business improvement district is | 7 | | established, the board of directors of a business improvement | 8 | | district shall also provide notice of a public hearing | 9 | | required under this Act. The notice of the public hearing | 10 | | shall be given by publication and mailing. When notice by | 11 | | publication is required, it shall be provided in both physical | 12 | | and online form in a newspaper of general circulation within | 13 | | the business improvement district at least once not less than | 14 | | 15 days prior to the public hearing. The notice must, in | 15 | | addition, be published on the website of the business | 16 | | improvement district or its district management association, | 17 | | if the district or association has a website. Notice by | 18 | | mailing shall be given by depositing the notice in the United | 19 | | States mail addressed to each property owner subject to a | 20 | | district charge, as well as all members of the board of | 21 | | directors. The notice must, in addition, be electronically | 22 | | mailed if an electronic mailing address is known for each | 23 | | owner subject to a district charge as well as all members of | 24 | | the board of directors. Notice shall be mailed and | 25 | | electronically mailed not less than 14 days prior to the time |
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| 1 | | set for the public hearing. The mailed and electronically | 2 | | mailed notice shall enclose or include information allowing a | 3 | | property owner to obtain a copy of any proposed district plan | 4 | | or proposed amended district plan. | 5 | | Section 85. Public hearings. At a public hearing held | 6 | | pursuant to this Act, any interested person, including all | 7 | | property owners owning real property located within a proposed | 8 | | or existing business improvement district, may file with the | 9 | | clerk written objections to or statements in support of, and | 10 | | may be heard orally, with respect to any matter embodied in the | 11 | | district plan or concerning the management of the business | 12 | | improvement district. The governing body shall hear and | 13 | | consider all statements and objections at the public hearing. | 14 | | The governing body may adjourn a public hearing to another | 15 | | date without further notice other than a motion fixing the | 16 | | time and place the public hearing will reconvene. | 17 | | Section 90. Existing law. This Act provides an alternative | 18 | | method of financing certain activities and improvements. The | 19 | | provisions of this Act do not affect or limit any other | 20 | | provisions of law authorizing or providing for the furnishing | 21 | | of activities or improvements or the raising of revenue for | 22 | | these purposes. Every special service area established | 23 | | pursuant to the Special Service Area Tax Law is unaffected by | 24 | | this Act. |
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| 1 | | Section 95. Contesting validity. The validity of a | 2 | | business improvement district created or amended, district | 3 | | plan established, or district charge imposed under this Act | 4 | | may not be contested in any action or proceeding unless the | 5 | | action or proceeding is commenced: (1) within 30 days after | 6 | | the formation ordinance is adopted; (2) with respect to | 7 | | amendments under Section 60, within 30 days after an amendment | 8 | | has been approved; or (3) with respect to district charges | 9 | | imposed under this Act, within 30 days after receipt of the | 10 | | bill containing the district charge. If a party appeals a | 11 | | final judgment, the party filing the appeal shall request | 12 | | discretionary acceleration under Supreme Court Rule 311(b). | 13 | | Section 999. Effective date. This Act takes effect upon | 14 | | becoming law. |
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