State of Illinois
90th General Assembly
Legislation

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[ House Amendment 002 ]

90_HB0524enr

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          Amends the Illinois Enterprise Zone Act, the Property Tax
      Code, and the  Illinois  Municipal  Code.  Provides  that  if
      property  is  located  in a redevelopment project area and an
      enterprise zone, then the enterprise zone  abatement of taxes
      shall not  be  available  on  the  property  located  in  the
      redevelopment  project area, except that business enterprises
      or individuals shall be entitled  to  the  abatement  on  new
      improvements  or the renovation or rehabilitation of existing
      improvements  if  the  business  enterprise   or   individual
      establishes  that  before  the  date  of  the adoption of tax
      increment financing (i) the new improvement,  rehabilitation,
      or   renovation   was   committed   to   locate   within  the
      redevelopment project  area,  (ii)  substantial  and  binding
      financial  obligations  were  made  towards the construction,
      renovation, or rehabilitation of the improvements, and  (iii)
      those  commitments  and  obligations  were made in reasonable
      reliance on the abatement of taxes that are applicable to the
      construction,   renovation,   or   rehabilitation   of    the
      improvements.  Requires a notice, published in a newspaper of
      general circulation within the municipality, that states that
      the property shall not be eligible for the abatement of taxes
      for  enterprise  zone  property unless certain conditions are
      met. Provides that if a municipality determines that property
      that  lies  within  a  State  Sales  Tax  Boundary   has   an
      improvement,  rehabilitation,  or renovation that is entitled
      to a property tax  abatement,  then  that  property  and  the
      improvements,   rehabilitations,   or  renovations  shall  be
      removed  from  any  State  Sales   Tax   Boundary   and   the
      municipality  that  made  the  determination shall notify the
      Department of  Revenue  within  30  days.  Amends  the  State
      Mandates Act to require implementation without reimbursement.
      Makes provisions severable. Effective July 1, 1997.
                                                     LRB9001031DNcc
HB0524 Enrolled                                LRB9001031DNcc
 1        AN ACT concerning districts.
 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:
 4        Section 5.  The Illinois Enterprise Zone Act  is  amended
 5    by changing Section 5.4 and adding Section 5.4.1 as follows:
 6        (20 ILCS 655/5.4) (from Ch. 67 1/2, par. 609)
 7        Sec.  5.4.   Amendment  and Decertification of Enterprise
 8    Zones.  (a)  The  terms  of  a  certified   enterprise   zone
 9    designating ordinance may be amended to
10        (i)  alter the boundaries of the Enterprise Zone, or
11        (ii)  expand,  limit or repeal tax incentives or benefits
12    provided in the ordinance, or
13        (iii)  alter the termination date of the zone, or
14        (iv)  make technical corrections in the  enterprise  zone
15    designating  ordinance;  but  such  amendment  shall  not  be
16    effective unless the Department issues an amended certificate
17    for  the  Enterprise  Zone, approving the amended designating
18    ordinance. Upon the adoption of  any  ordinance  amending  or
19    repealing   the   terms   of   a  certified  enterprise  zone
20    designating  ordinance,  the  municipality  or  county  shall
21    promptly file with the Department an application for approval
22    thereof, containing substantially  the  same  information  as
23    required  for  an  application  under  Section 5.1 insofar as
24    material to the proposed changes. The municipality or  county
25    must  hold  a  public  hearing  on  the  proposed  changes as
26    specified in Section 5 and, if the amendment is to effectuate
27    the limitation of tax abatements under  Section  5.4.1,  then
28    the  public  notice  of the hearing shall state that property
29    that is in both  the  enterprise  zone  and  a  redevelopment
30    project  area may not receive tax abatements unless within 60
31    days after the adoption of the amendment to  the  designating
HB0524 Enrolled             -2-                LRB9001031DNcc
 1    ordinance  the  municipality  has determined that eligibility
 2    for tax abatements has been established, or
 3        (v)  include  an  area  within  another  municipality  or
 4    county as part of the designated enterprise zone provided the
 5    requirements of Section 4 are complied with, or.
 6        (vi)  effectuate the limitation of tax  abatements  under
 7    Section 5.4.1.
 8        (b)  The   Department   shall  approve  or  disapprove  a
 9    proposed amendment to a certified enterprise zone  within  90
10    days  of its receipt of the application from the municipality
11    or county. The Department may not approve changes in  a  Zone
12    which  are  not  in  conformity  with  this  Act,  as  now or
13    hereafter amended, or with  other  applicable  laws.  If  the
14    Department  issues  an  amended certificate for an Enterprise
15    Zone, the amended certificate, together with the amended zone
16    designating  ordinance,  shall   be   filed,   recorded   and
17    transmitted as provided in Section 5.3.
18        (c)  An  Enterprise  Zone  may  be  decertified  by joint
19    action of  the  Department  and  the  designating  county  or
20    municipality in accordance with this Section. The designating
21    county  or  municipality  shall  conduct  at least one public
22    hearing within the zone prior to its adoption of an ordinance
23    of de-designation. The mayor of the designating  municipality
24    or the chairman of the county board of the designating county
25    shall  execute  a  joint  decertification  agreement with the
26    Department. A decertification of an Enterprise Zone shall not
27    become effective until at least 6 months after the  execution
28    of the decertification agreement, which shall be filed in the
29    office of the Secretary of State.
30        (d)  An  Enterprise  Zone may be decertified for cause by
31    the Department in accordance  with  this  Section.  Prior  to
32    decertification:  (1)  the  Department shall notify the chief
33    elected official of the designating county or municipality in
34    writing of the specific deficiencies which provide cause  for
HB0524 Enrolled             -3-                LRB9001031DNcc
 1    decertification;   (2)  the   Department   shall   place  the
 2    designating county or municipality on probationary status for
 3    at least 6 months during which time corrective action may  be
 4    achieved  in the enterprise zone by the designating county or
 5    municipality; and, (3) the Department shall conduct at  least
 6    one public hearing within the zone. If such corrective action
 7    is   not   achieved   during  the  probationary  period,  the
 8    Department shall issue an amended certificate signed  by  the
 9    Director  of the Department decertifying the enterprise zone,
10    which certificate  shall  be  filed  in  the  office  of  the
11    Secretary   of   State.  A  certified  copy  of  the  amended
12    enterprise zone certificate, or a duplicate original thereof,
13    shall be recorded in the office of recorder of the county  in
14    which  the enterprise zone lies, and shall be provided to the
15    chief  elected  official  of  the   designating   county   or
16    municipality. Decertification of an Enterprise Zone shall not
17    become effective until 60 days after the date of filing.
18        (e)  In  the  event of a decertification, or an amendment
19    reducing the length of the term or the area of an  Enterprise
20    Zone  or the adoption of an ordinance reducing or eliminating
21    tax benefits in an Enterprise Zone, all  benefits  previously
22    extended  within the Zone pursuant to this Act or pursuant to
23    any other Illinois law providing benefits specifically to  or
24    within  Enterprise  Zones  shall  remain  in  effect  for the
25    original stated term of the Enterprise Zone, with respect  to
26    business enterprises within the Zone on the effective date of
27    such  decertification  or  amendment,  and  with  respect  to
28    individuals  participating  in urban homestead programs under
29    this Act.
30        (f)  Except as otherwise provided in Section 5.4.1,  with
31    respect to business enterprises (or expansions thereof) which
32    are  proposed  or under development within a Zone at the time
33    of a decertification or an amendment reducing the  length  of
34    the  term  of  the  Zone, or excluding from the Zone area the
HB0524 Enrolled             -4-                LRB9001031DNcc
 1    site of the proposed enterprise, or an ordinance reducing  or
 2    eliminating  tax benefits in a Zone, such business enterprise
 3    shall be  entitled  to  the  benefits  previously  applicable
 4    within  the Zone for the original stated term of the Zone, if
 5    the business enterprise establishes:
 6        (i)  that the proposed business enterprise  or  expansion
 7    has been committed to be located within the Zone;
 8        (ii)  that  substantial and binding financial obligations
 9    have been made towards the development  of  such  enterprise;
10    and
11        (iii)  that such commitments have been made in reasonable
12    reliance on the benefits and programs which were to have been
13    applicable to the enterprise by reason of the Zone, including
14    in  the  case  of a reduction in term of a zone, the original
15    length of the term.
16        In declaratory judgment actions under this paragraph, the
17    Department and the designating municipality or  county  shall
18    be necessary parties defendant.
19    (Source: P.A. 86-820.)
20        (20 ILCS 655/5.4.1 new)
21        Sec. 5.4.1.  Adoption of Tax Increment Financing.
22        (a)  If  (i) a redevelopment project area is, will be, or
23    has been created by a municipality under   Division  74.4  of
24    the  Illinois  Municipal Code, (ii) the redevelopment project
25    area contains property that is located in an enterprise zone,
26    (iii) the municipality adopts an amendment to the  enterprise
27    zone  designating  ordinance  pursuant to Section 5.4 of this
28    Act  specifically  concerning  the  abatement  of  taxes   on
29    property  located within a redevelopment project area created
30    pursuant to Division 74.4 of the Illinois Municipal Code, and
31    (iv) the Department certifies the ordinance  amendment,  then
32    the  property that is located in both the enterprise zone and
33    the redevelopment project area shall not be eligible for  the
HB0524 Enrolled             -5-                LRB9001031DNcc
 1    abatement  of  taxes under Section 18-170 of the Property Tax
 2    Code.
 3        No  business  enterprise  or  expansion  or   individual,
 4    however,  that has constructed a new improvement or renovated
 5    or rehabilitated an existing improvement and has received  an
 6    abatement  on  the  improvement  under  Section 18-170 of the
 7    Property Tax Code shall  be  denied  any  benefit  previously
 8    extended  within the zone pursuant to this Act or pursuant to
 9    any other Illinois law providing benefits specifically to  or
10    within enterprise zones. Moreover, if the business enterprise
11    or individual presents evidence to the municipality within 30
12    days  after  the adoption by the municipality of an amendment
13    to the designating ordinance the sufficiency of  which  shall
14    be  determined  by findings of the corporate authorities made
15    within 30 days  of  the  receipt  of  such  evidence  by  the
16    municipality,  that  before  the  date  of  the notice of the
17    public hearing provided by  the  municipality  regarding  the
18    amendment  to  the  designating  ordinance  (i)  the business
19    enterprise  or  expansion  or  individual  was  committed  to
20    locate within  the  enterprise  zone,  (ii)  substantial  and
21    binding   financial   obligations   were   made  towards  the
22    development of the enterprise, and (iii) those    commitments
23    were made in reasonable reliance on the benefits and programs
24    that  were  applicable  to  the  enterprise  or individual by
25    reason  of  the  enterprise  zone,  then  the  enterprise  or
26    expansion or individual  shall  not  be  denied  any  benefit
27    previously  extended  within the zone pursuant to this Act or
28    pursuant  to  any  other  Illinois  law  providing   benefits
29    specifically to or within enterprise zones.
30        (b)  This  Section applies to all property located within
31    both a  redevelopment project  area  adopted  under  Division
32    74.4  of  the  Illinois Municipal Code and an enterprise zone
33    even if the redevelopment  project  area  or  the  enterprise
34    zone   was  adopted  before  the  effective    date  of  this
HB0524 Enrolled             -6-                LRB9001031DNcc
 1    amendatory Act of 1997.
 2        (c)  After July 1, 1997, if (i) a  redevelopment  project
 3    area  is created by a municipality under Division 74.4 of the
 4    Illinois Municipal Code and (ii)  the  redevelopment  project
 5    area contains property that is located in an enterprise zone,
 6    the  municipality  must  adopt  an amendment to the certified
 7    enterprise zone designating ordinance under Section 5.4  that
 8    property  that is located in both the enterprise zone and the
 9    redevelopment project area shall  not  be  eligible  for  any
10    abatement  of  taxes under Section 18-170 of the Property Tax
11    Code for new improvements or the renovation or rehabilitation
12    of existing improvements.
13        (d)  In declaratory judgment actions under this  Section,
14    the  Department    and  the designating municipality shall be
15    necessary parties defendant.
16        Section 10.  The Property Tax Code is amended by changing
17    Section 18-170 as follows:
18        (35 ILCS 200/18-170)
19        Sec. 18-170.  Enterprise zone abatement.  In addition  to
20    the authority to abate taxes under Section 18-165, any taxing
21    district,  upon  a  majority vote of its governing authority,
22    may order the county clerk to abate any portion of its  taxes
23    on   property,  or  any  class  thereof,  located  within  an
24    Enterprise Zone created under the  Illinois  Enterprise  Zone
25    Act,  and  upon  which  either  new  improvements  have  been
26    constructed  or  existing improvements have been renovated or
27    rehabilitated after December 7, 1982. However, any  abatement
28    of   taxes   on  any  parcel  shall  not  exceed  the  amount
29    attributable to the construction of the improvements and  the
30    renovation  or rehabilitation of existing improvements on the
31    parcel.  In the case of property within a redevelopment  area
32    created under the Tax Increment Allocation Redevelopment Act,
HB0524 Enrolled             -7-                LRB9001031DNcc
 1    the abatement shall not apply unless a business enterprise or
 2    individual  with  regard  to new improvements or renovated or
 3    rehabilitated  improvements  has  met  the  requirements   of
 4    Section  5.4.1 of the Illinois Enterprise Zone Act exceed the
 5    amount of taxes allocable  to  the  taxing  district.  If  an
 6    abatement  is discontinued under this Section, a municipality
 7    shall notify the county clerk and  the  board  of  review  or
 8    board of appeals of the change in writing not later than July
 9    1  of the assessment year to be first affected by the change.
10    However, within a county economic  development  project  area
11    created  under  the  County Economic Development Project Area
12    Property Tax Allocation Act, any municipality or county which
13    has adopted tax increment allocation financing under the  Tax
14    Increment Allocation Redevelopment Act or the County Economic
15    Development  Project  Area  Tax  Increment Allocation Act may
16    abate any portion of its taxes as provided in  this  Section.
17    Any   other   taxing  district  within  the  county  economic
18    development project area may order any portion or all of  its
19    taxes  abated as provided above if the county or municipality
20    which created the  tax  increment  district  has  agreed,  in
21    writing, to the abatement.
22        A  copy  of an abatement order adopted under this Section
23    shall be delivered to the county clerk and to  the  board  of
24    review  or  board  of  appeals  not  later than July 1 of the
25    assessment year to be first affected by the order. If  it  is
26    delivered  on  or  after  that date, it will first affect the
27    taxes extended on the assessment of the following year.   The
28    board  of  review  or  board  of appeals shall, each time the
29    assessment books are delivered  to  the  county  clerk,  also
30    deliver  a  list  of parcels affected by an abatement and the
31    assessed value attributable to new  improvements  or  to  the
32    renovation or rehabilitation of existing improvements.
33    (Source:  P.A.  88-455;  89-126,  eff.  7-11-95; 89-671, eff.
34    8-14-96.)
HB0524 Enrolled             -8-                LRB9001031DNcc
 1        Section 15.  The Illinois Municipal Code  is  amended  by
 2    changing   Sections  11-74.4-4,  11-74.4-8,  11-74.4-8a,  and
 3    11-74.6-15 and adding Section 11-74.4-8c as follows:
 4        (65 ILCS 5/11-74.4-4) (from Ch. 24, par. 11-74.4-4)
 5        Sec.   11-74.4-4.   Municipal    powers    and    duties;
 6    redevelopment project areas. A municipality may:
 7        (a)  By ordinance introduced in the governing body of the
 8    municipality  within 14 to 90 days from the completion of the
 9    hearing specified in Section 11-74.4-5 approve  redevelopment
10    plans and redevelopment projects, and designate redevelopment
11    project areas pursuant to notice and hearing required by this
12    Act.   No  redevelopment  project  area  shall  be designated
13    unless  a  plan  and  project  are  approved  prior  to   the
14    designation  of  such  area  and such area shall include only
15    those contiguous parcels of real  property  and  improvements
16    thereon substantially benefited by the proposed redevelopment
17    project improvements.
18        (b)  Make  and  enter  into  all  contracts  necessary or
19    incidental to  the  implementation  and  furtherance  of  its
20    redevelopment plan and project.
21        (c)  Within  a  redevelopment  project  area,  acquire by
22    purchase, donation, lease or  eminent  domain;  own,  convey,
23    lease,  mortgage  or dispose of land and other property, real
24    or personal, or rights or interests  therein,  and  grant  or
25    acquire licenses, easements and options with respect thereto,
26    all  in  the  manner  and  at  such  price  the  municipality
27    determines  is reasonably necessary to achieve the objectives
28    of the redevelopment plan and project.  No conveyance, lease,
29    mortgage, disposition of land or other property, or agreement
30    relating to the development of the  property  shall  be  made
31    except  upon  the  adoption  of an ordinance by the corporate
32    authorities of the municipality. Furthermore, no  conveyance,
33    lease,  mortgage,  or  other disposition of land or agreement
HB0524 Enrolled             -9-                LRB9001031DNcc
 1    relating to the development of property shall be made without
 2    making public disclosure of the terms of the disposition  and
 3    all bids and proposals made in response to the municipality's
 4    request.    The   procedures  for  obtaining  such  bids  and
 5    proposals shall provide reasonable opportunity for any person
 6    to submit alternative proposals or bids.
 7        (d)  Within a redevelopment project area, clear any  area
 8    by  demolition  or  removal  of  any  existing  buildings and
 9    structures.
10        (e)  Within a redevelopment  project  area,  renovate  or
11    rehabilitate or construct any structure or building.
12        (f)  Install,  repair, construct, reconstruct or relocate
13    streets, utilities and site  improvements  essential  to  the
14    preparation  of  the redevelopment area for use in accordance
15    with a redevelopment plan.
16        (g)  Within a redevelopment project area, fix, charge and
17    collect fees, rents and charges for the use of  any  building
18    or  property  owned  or  leased by it or any part thereof, or
19    facility therein.
20        (h)  Accept grants, guarantees and donations of property,
21    labor, or other things of value  from  a  public  or  private
22    source for use within a project redevelopment area.
23        (i)  Acquire  and  construct  public  facilities within a
24    redevelopment project area.
25        (j)  Incur project redevelopment costs.
26        (k)  Create a commission of not less than 5 or more  than
27    15  persons  to be appointed by the mayor or president of the
28    municipality  with  the  consent  of  the  majority  of   the
29    governing board of the municipality.  Members of a commission
30    appointed  after the effective date of this amendatory Act of
31    1987 shall be appointed for initial terms of 1, 2, 3, 4 and 5
32    years, respectively, in such numbers as to provide  that  the
33    terms  of  not more than 1/3 of all such members shall expire
34    in any one year.  Their successors shall be appointed  for  a
HB0524 Enrolled             -10-               LRB9001031DNcc
 1    term  of 5 years.  The commission, subject to approval of the
 2    corporate authorities may exercise the powers  enumerated  in
 3    this  Section.  The  commission  shall also have the power to
 4    hold the public hearings required by this division  and  make
 5    recommendations  to  the corporate authorities concerning the
 6    adoption of redevelopment plans, redevelopment  projects  and
 7    designation of redevelopment project areas.
 8        (l)  Make  payment  in lieu of taxes or a portion thereof
 9    to taxing districts.  If payments  in  lieu  of  taxes  or  a
10    portion  thereof are made to taxing districts, those payments
11    shall be made to all districts within a project redevelopment
12    area  on  a  basis  which  is  proportional  to  the  current
13    collections of revenue which each  taxing  district  receives
14    from real property in the redevelopment project area.
15        (m)  Exercise  any  and  all  other  powers  necessary to
16    effectuate the purposes of this Act.
17        (n)  If any member of the corporate authority,  a  member
18    of  a commission established pursuant to Section 11-74.4-4(k)
19    of this Act, or an employee or consultant of the municipality
20    involved in the planning and preparation of  a  redevelopment
21    plan, or project for a redevelopment project area or proposed
22    redevelopment   project   area,   as   defined   in  Sections
23    11-74.4-3(i) through (k) of this Act,  owns  or  controls  an
24    interest, direct or indirect, in any property included in any
25    redevelopment area, or proposed redevelopment area, he or she
26    shall  disclose  the  same  in  writing  to  the clerk of the
27    municipality, and shall also so disclose the dates and  terms
28    and conditions of any disposition of any such interest, which
29    disclosures   shall   be   acknowledged   by   the  corporate
30    authorities  and  entered  upon  the  minute  books  of   the
31    corporate  authorities.   If  an  individual  holds  such  an
32    interest  then that individual shall refrain from any further
33    official involvement in regard to  such  redevelopment  plan,
34    project or area, from voting on any matter pertaining to such
HB0524 Enrolled             -11-               LRB9001031DNcc
 1    redevelopment  plan,  project  or area, or communicating with
 2    other members concerning corporate authorities, commission or
 3    employees  concerning   any   matter   pertaining   to   said
 4    redevelopment  plan,  project  or area.  Furthermore, no such
 5    member or employee shall acquire of any interest  direct,  or
 6    indirect, in any property in a redevelopment area or proposed
 7    redevelopment  area  after either (a) such individual obtains
 8    knowledge of such plan, project or area or (b)  first  public
 9    notice  of  such  plan,  project  or area pursuant to Section
10    11-74.4-6 of this Division, whichever occurs first.
11        (o)  Create a Tax Increment Economic Development Advisory
12    Committee to be appointed by the Mayor or  President  of  the
13    municipality   with  the  consent  of  the  majority  of  the
14    governing board of the municipality,  the  members  of  which
15    Committee  shall be appointed for initial terms of 1, 2, 3, 4
16    and 5 years respectively, in such numbers as to provide  that
17    the  terms  of  not  more  than 1/3 of all such members shall
18    expire in any one year.  Their successors shall be  appointed
19    for  a term of 5 years.  The Committee shall have none of the
20    powers enumerated in this Section.  The Committee shall serve
21    in an advisory capacity only.  The Committee may  advise  the
22    governing  Board  of  the  municipality  and  other municipal
23    officials  regarding  development  issues  and  opportunities
24    within the redevelopment project area or the area within  the
25    State  Sales Tax Boundary. The Committee may also promote and
26    publicize  development  opportunities  in  the  redevelopment
27    project area or the area within the State Sales Tax Boundary.
28        (p)  Municipalities may  jointly  undertake  and  perform
29    redevelopment  plans  and projects and utilize the provisions
30    of  the  Act  wherever  they  have  contiguous  redevelopment
31    project areas  or  they  determine  to  adopt  tax  increment
32    financing  with respect to a redevelopment project area which
33    includes contiguous real property within  the  boundaries  of
34    the  municipalities,  and in doing so, they may, by agreement
HB0524 Enrolled             -12-               LRB9001031DNcc
 1    between  municipalities,  issue  obligations,  separately  or
 2    jointly, and expend  revenues  received  under  the  Act  for
 3    eligible  expenses  anywhere  within contiguous redevelopment
 4    project areas or as otherwise permitted in the Act.
 5        (q)  Utilize  revenues,  other  than  State   sales   tax
 6    increment   revenues,   received  under  this  Act  from  one
 7    redevelopment project area  for  eligible  costs  in  another
 8    redevelopment  project  area that is either contiguous to, or
 9    is separated  only  by  a  public  right  of  way  from,  the
10    redevelopment  project  area  from  which  the  revenues  are
11    received.  Utilize  tax increment revenues for eligible costs
12    that are received from a redevelopment project  area  created
13    under  the  Industrial  Jobs  Recovery  Law  that  is  either
14    contiguous  to, or is separated only by a public right of way
15    from, the redevelopment project area created under  this  Act
16    which  initially  receives these revenues.  Utilize revenues,
17    other  than  State   sales   tax   increment   revenues,   by
18    transferring  or  loaning  such  revenues  to a redevelopment
19    project area created under the Industrial Jobs  Recovery  Law
20    that  is  either contiguous to, or separated only by a public
21    right  of  way  from  the  redevelopment  project  area  that
22    initially produced and received those revenues.
23        (r)  If no redevelopment project has been initiated in  a
24    redevelopment  project area within 7 years after the area was
25    designated   by   ordinance   under   subsection   (a),   the
26    municipality shall adopt an ordinance  repealing  the  area's
27    designation   as  a  redevelopment  project  area;  provided,
28    however, that if an area received its designation more than 3
29    years before the effective date of  this  amendatory  Act  of
30    1994 and no redevelopment project has been initiated within 4
31    years  after  the  effective  date  of this amendatory Act of
32    1994, the municipality shall adopt an ordinance repealing its
33    designation as a redevelopment project area. Initiation of  a
34    redevelopment  project  shall be evidenced by either a signed
HB0524 Enrolled             -13-               LRB9001031DNcc
 1    redevelopment   agreement   or   expenditures   on   eligible
 2    redevelopment project costs associated with  a  redevelopment
 3    project.
 4    (Source: P.A. 87-875; 88-537; 88-688, eff. 1-24-95.)
 5        (65 ILCS 5/11-74.4-8) (from Ch. 24, par. 11-74.4-8)
 6        Sec.   11-74.4-8.   A  municipality  may  not  adopt  tax
 7    increment financing in a redevelopment project area after the
 8    effective date of this  amendatory  Act  of  1997  that  will
 9    encompass an area that is currently included in an enterprise
10    zone  created  under  the Illinois Enterprise Zone Act unless
11    that municipality, pursuant to Section 5.4  of  the  Illinois
12    Enterprise  Zone  Act, amends the enterprise zone designating
13    ordinance to limit the  eligibility  for  tax  abatements  as
14    provided  in  Section  5.4.1  of the Illinois Enterprise Zone
15    Act.  A municipality, at the  time  a  redevelopment  project
16    area  is  designated,  may  adopt  tax  increment  allocation
17    financing  by  passing  an  ordinance  providing  that the ad
18    valorem taxes, if any, arising from the levies  upon  taxable
19    real  property  in  such redevelopment project area by taxing
20    districts and tax rates determined in the manner provided  in
21    paragraph  (c)  of  Section  11-74.4-9  each  year  after the
22    effective date of the ordinance until  redevelopment  project
23    costs  and  all municipal obligations financing redevelopment
24    project costs incurred under this  Division  have  been  paid
25    shall be divided as follows:
26        (a)  That  portion of taxes levied upon each taxable lot,
27    block, tract or parcel of real property which is attributable
28    to the lower of the current equalized assessed value  or  the
29    initial  equalized  assessed  value of each such taxable lot,
30    block, tract or parcel of real property in the  redevelopment
31    project  area  shall be allocated to and when collected shall
32    be paid by the county collector to  the  respective  affected
33    taxing districts in the manner required by law in the absence
HB0524 Enrolled             -14-               LRB9001031DNcc
 1    of the adoption of tax increment allocation financing.
 2        (b)  That  portion,  if  any,  of  such  taxes  which  is
 3    attributable   to  the  increase  in  the  current  equalized
 4    assessed valuation of  each  taxable  lot,  block,  tract  or
 5    parcel  of  real  property  in the redevelopment project area
 6    over and above the initial equalized assessed value  of  each
 7    property  in  the project area shall be allocated to and when
 8    collected shall be paid to the municipal treasurer who  shall
 9    deposit said taxes into a special fund called the special tax
10    allocation fund of the municipality for the purpose of paying
11    redevelopment  project  costs and obligations incurred in the
12    payment thereof. In any county with a population of 3,000,000
13    or more that has adopted a  procedure  for  collecting  taxes
14    that  provides  for  one  or  more of the installments of the
15    taxes to be billed and collected on an estimated  basis,  the
16    municipal  treasurer shall be paid for deposit in the special
17    tax allocation fund  of  the  municipality,  from  the  taxes
18    collected  from  estimated  bills  issued for property in the
19    redevelopment project area, the difference between the amount
20    actually collected from each taxable lot,  block,  tract,  or
21    parcel of real property within the redevelopment project area
22    and  an  amount  determined  by multiplying the rate at which
23    taxes were last extended  against  the  taxable  lot,  block,
24    track,  or  parcel of real property in the manner provided in
25    subsection (c) of Section 11-74.4-9 by the initial  equalized
26    assessed  value  of  the  property  divided  by the number of
27    installments in  which  real  estate  taxes  are  billed  and
28    collected  within  the county, provided each of the following
29    conditions are met:
30             (1)  The  total  equalized  assessed  value  of  the
31        redevelopment project area as  last  determined  was  not
32        less  than  175%  of the total initial equalized assessed
33        value.
34             (2)  Not  more  than  50%  of  the  total  equalized
HB0524 Enrolled             -15-               LRB9001031DNcc
 1        assessed value of the redevelopment project area as  last
 2        determined   is  attributable  to  a  piece  of  property
 3        assigned a single real estate index number.
 4             (3)  The municipal clerk has certified to the county
 5        clerk that the municipality has issued its obligations to
 6        which there has been  pledged  the  incremental  property
 7        taxes  of  the redevelopment project area or taxes levied
 8        and collected on any or all property in the  municipality
 9        or  the  full faith and credit of the municipality to pay
10        or  secure  payment  for  all  or  a   portion   of   the
11        redevelopment  project  costs. The certification shall be
12        filed  annually  no  later  than  September  1  for   the
13        estimated  taxes to be distributed in the following year;
14        however, for the year 1992  the  certification  shall  be
15        made at any time on or before March 31, 1992.
16             (4)  The  municipality  has  not  requested that the
17        total initial equalized assessed value of  real  property
18        be  adjusted  as  provided  in  subsection (b) of Section
19        11-74.4-9.
20        It  is  the  intent  of  this  Division  that  after  the
21    effective  date  of   this   amendatory   Act   of   1988   a
22    municipality's  own  ad  valorem  tax  arising from levies on
23    taxable real property be included  in  the  determination  of
24    incremental  revenue  in the manner provided in paragraph (c)
25    of Section 11-74.4-9. If the  municipality  does  not  extend
26    such  a  tax, it shall annually deposit in the municipality's
27    Special Tax Increment Fund an amount  equal  to  10%  of  the
28    total  contributions  to  the  fund  from  all  other  taxing
29    districts  in  that year.  The annual 10% deposit required by
30    this paragraph shall be  limited  to  the  actual  amount  of
31    municipally  produced  incremental  tax revenues available to
32    the municipality from taxpayers located in the  redevelopment
33    project  area  in  that  year  if:  (a) the plan for the area
34    restricts the use of the  property  primarily  to  industrial
HB0524 Enrolled             -16-               LRB9001031DNcc
 1    purposes, (b) the municipality establishing the redevelopment
 2    project  area is a home-rule community with a 1990 population
 3    of between 25,000 and 50,000, (c) the municipality is  wholly
 4    located  within  a  county  with  a  1990  population of over
 5    750,000  and  (d)  the   redevelopment   project   area   was
 6    established  by the municipality prior to June 1, 1990.  This
 7    payment shall be in lieu of  a  contribution  of  ad  valorem
 8    taxes  on  real  property.  If  no  such payment is made, any
 9    redevelopment project  area  of  the  municipality  shall  be
10    dissolved.
11        If  a  municipality  has adopted tax increment allocation
12    financing  by  ordinance  and  the  County  Clerk  thereafter
13    certifies the "total  initial  equalized  assessed  value  as
14    adjusted"   of   the   taxable   real  property  within  such
15    redevelopment  project  area  in  the  manner   provided   in
16    paragraph  (b) of Section 11-74.4-9, each year after the date
17    of the certification of the total initial equalized  assessed
18    value  as  adjusted until redevelopment project costs and all
19    municipal obligations financing redevelopment  project  costs
20    have been paid the ad valorem taxes, if any, arising from the
21    levies  upon  the taxable real property in such redevelopment
22    project area by taxing districts and tax rates determined  in
23    the  manner  provided  in  paragraph (c) of Section 11-74.4-9
24    shall be divided as follows:
25             (1)  That portion of  the  taxes  levied  upon  each
26        taxable  lot,  block,  tract  or  parcel of real property
27        which  is  attributable  to  the  lower  of  the  current
28        equalized assessed value or "current  equalized  assessed
29        value  as  adjusted"  or  the  initial equalized assessed
30        value of each such taxable lot, block, tract,  or  parcel
31        of  real  property  existing  at  the  time tax increment
32        financing was adopted, minus the total current  homestead
33        exemptions  provided by Sections 15-170 and 15-175 of the
34        Property Tax Code in the redevelopment project area shall
HB0524 Enrolled             -17-               LRB9001031DNcc
 1        be allocated to and when collected shall be paid  by  the
 2        county   collector  to  the  respective  affected  taxing
 3        districts in the manner required by law in the absence of
 4        the adoption of tax increment allocation financing.
 5             (2)  That portion, if any, of such  taxes  which  is
 6        attributable  to  the  increase  in the current equalized
 7        assessed valuation of each taxable lot, block, tract,  or
 8        parcel  of  real  property  in  the redevelopment project
 9        area, over and above the initial equalized assessed value
10        of each property  existing  at  the  time  tax  increment
11        financing  was adopted, minus the total current homestead
12        exemptions pertaining to each piece of property  provided
13        by Sections 15-170 and 15-175 of the Property Tax Code in
14        the redevelopment project area, shall be allocated to and
15        when  collected shall be paid to the municipal Treasurer,
16        who shall deposit said taxes into a special  fund  called
17        the  special  tax allocation fund of the municipality for
18        the purpose of paying  redevelopment  project  costs  and
19        obligations incurred in the payment thereof.
20        The municipality may pledge in the ordinance the funds in
21    and  to  be  deposited in the special tax allocation fund for
22    the payment of such costs and obligations.  No  part  of  the
23    current  equalized assessed valuation of each property in the
24    redevelopment project area attributable to any increase above
25    the total initial equalized  assessed  value,  or  the  total
26    initial   equalized  assessed  value  as  adjusted,  of  such
27    properties shall be used in  calculating  the  general  State
28    school  aid  formula,  provided  for  in  Section 18-8 of the
29    School Code, until such time  as  all  redevelopment  project
30    costs have been paid as provided for in this Section.
31        Whenever  a  municipality issues bonds for the purpose of
32    financing redevelopment project costs, such municipality  may
33    provide  by ordinance for the appointment of a trustee, which
34    may be any trust  company  within  the  State,  and  for  the
HB0524 Enrolled             -18-               LRB9001031DNcc
 1    establishment  of  such funds or accounts to be maintained by
 2    such trustee as the  municipality  shall  deem  necessary  to
 3    provide  for  the security and payment of the bonds.  If such
 4    municipality provides for the appointment of a trustee,  such
 5    trustee  shall  be  considered  the  assignee of any payments
 6    assigned by the municipality pursuant to such  ordinance  and
 7    this  Section.   Any amounts paid to such trustee as assignee
 8    shall be deposited  in  the  funds  or  accounts  established
 9    pursuant  to  such trust agreement, and shall be held by such
10    trustee in trust for the benefit of the holders of the bonds,
11    and such holders shall have a lien on and a security interest
12    in such funds  or  accounts  so  long  as  the  bonds  remain
13    outstanding  and  unpaid.  Upon  retirement of the bonds, the
14    trustee shall  pay  over  any  excess  amounts  held  to  the
15    municipality for deposit in the special tax allocation fund.
16        When such redevelopment projects costs, including without
17    limitation  all municipal obligations financing redevelopment
18    project costs incurred under this Division, have  been  paid,
19    all   surplus   funds  then  remaining  in  the  special  tax
20    allocation fund shall be distributed by  being  paid  by  the
21    municipal   treasurer  to  the  Department  of  Revenue,  the
22    municipality  and  the  county  collector;   first   to   the
23    Department   of   Revenue  and  the  municipality  in  direct
24    proportion to the tax incremental revenue received  from  the
25    State  and  the  municipality,  but  not  to exceed the total
26    incremental  revenue  received  from   the   State   or   the
27    municipality   less   any   annual  surplus  distribution  of
28    incremental revenue previously made; with any remaining funds
29    to be paid to the  County  Collector  who  shall  immediately
30    thereafter  pay  said  funds  to  the taxing districts in the
31    redevelopment project area in the same manner and  proportion
32    as  the  most  recent distribution by the county collector to
33    the affected districts  of  real  property  taxes  from  real
34    property in the redevelopment project area.
HB0524 Enrolled             -19-               LRB9001031DNcc
 1        Upon  the  payment  of  all  redevelopment project costs,
 2    retirement of obligations and the distribution of any  excess
 3    monies pursuant to this Section, the municipality shall adopt
 4    an  ordinance  dissolving the special tax allocation fund for
 5    the  redevelopment   project   area   and   terminating   the
 6    designation   of   the   redevelopment   project  area  as  a
 7    redevelopment  project  area.   If  a  municipality   extends
 8    estimated  dates of completion of a redevelopment project and
 9    retirement of obligations to finance a redevelopment project,
10    as allowed by this amendatory Act  of  1993,  that  extension
11    shall  not  extend  the  property  tax  increment  allocation
12    financing  authorized  by this Section.  Thereafter the rates
13    of the taxing districts shall be extended and  taxes  levied,
14    collected  and  distributed  in  the manner applicable in the
15    absence  of  the  adoption  of   tax   increment   allocation
16    financing.
17        Nothing  in  this Section shall be construed as relieving
18    property in  such  redevelopment  project  areas  from  being
19    assessed as provided in the Property Tax Code or as relieving
20    owners  of such property from paying a uniform rate of taxes,
21    as required by  Section  4  of  Article  9  of  the  Illinois
22    Constitution.
23    (Source: P.A. 87-813; 87-872; 87-1272; 88-670, eff. 12-2-94.)
24        (65 ILCS 5/11-74.4-8a) (from Ch. 24, par. 11-74.4-8a)
25        Sec.  11-74.4-8a.  (1) Until June 1, 1988, a municipality
26    which has adopted tax increment allocation financing prior to
27    January  1,  1987,  may  by  ordinance  (1)   authorize   the
28    Department  of Revenue, subject to appropriation, to annually
29    certify and cause to be paid from the Illinois Tax  Increment
30    Fund  to  such municipality for deposit in the municipality's
31    special tax allocation fund an amount equal to the Net  State
32    Sales  Tax  Increment  and  (2)  authorize  the Department of
HB0524 Enrolled             -20-               LRB9001031DNcc
 1    Revenue to annually notify the municipality of the amount  of
 2    the Municipal Sales Tax Increment which shall be deposited by
 3    the municipality in the municipality's special tax allocation
 4    fund.   Provided   that  for  purposes  of  this  Section  no
 5    amendments  adding  additional  area  to  the   redevelopment
 6    project  area which has been certified as the State Sales Tax
 7    Boundary shall be taken into account if such  amendments  are
 8    adopted  by  the  municipality  after  January 1, 1987. If an
 9    amendment is adopted which decreases  the  area  of  a  State
10    Sales  Tax  Boundary,  the municipality shall update the list
11    required by subsection (3)(a) of this Section. The Retailers'
12    Occupation  Tax  liability,  Use   Tax   liability,   Service
13    Occupation  Tax  liability  and Service Use Tax liability for
14    retailers and servicemen located within the disconnected area
15    shall be excluded from the base from which tax increments are
16    calculated  and  the  revenue  from  any  such  retailer   or
17    serviceman  shall  not be included in calculating incremental
18    revenue payable to the municipality. A municipality  adopting
19    an  ordinance under this subsection (1) of this Section for a
20    redevelopment project area which  is  certified  as  a  State
21    Sales Tax Boundary shall not be entitled to payments of State
22    taxes authorized under subsection (2) of this Section for the
23    same  redevelopment  project  area.  Nothing  herein shall be
24    construed to prevent a municipality from receiving payment of
25    State taxes authorized under subsection (2) of  this  Section
26    for  a  separate  redevelopment  project  area  that does not
27    overlap  in  any  way  with  the  State  Sales  Tax  Boundary
28    receiving payments of State taxes pursuant to subsection  (1)
29    of this Section.
30        A  certified copy of such ordinance shall be submitted by
31    the municipality to the Department of Commerce and  Community
32    Affairs  and the Department of Revenue not later than 30 days
33    after the effective date of the ordinance.   Upon  submission
34    of  the  ordinances, and the information required pursuant to
HB0524 Enrolled             -21-               LRB9001031DNcc
 1    subsection 3 of this Section, the Department of Revenue shall
 2    promptly determine the amount of such taxes  paid  under  the
 3    Retailers'  Occupation  Tax Act, Use Tax Act, Service Use Tax
 4    Act, the Service Occupation Tax Act, the Municipal Retailers'
 5    Occupation Tax Act and the Municipal Service  Occupation  Tax
 6    Act  by  retailers  and  servicemen on transactions at places
 7    located in the redevelopment project  area  during  the  base
 8    year,  and shall certify all the foregoing "initial sales tax
 9    amounts" to the municipality within 60 days of submission  of
10    the list required of subsection (3)(a) of this Section.
11        If  a  retailer  or  serviceman  with a place of business
12    located within a redevelopment project area also has  one  or
13    more  other  places  of  business within the municipality but
14    outside the  redevelopment  project  area,  the  retailer  or
15    serviceman  shall, upon request of the Department of Revenue,
16    certify to the Department of Revenue the amount of taxes paid
17    pursuant to the Retailers' Occupation Tax Act, the  Municipal
18    Retailers' Occupation Tax Act, the Service Occupation Tax Act
19    and the Municipal Service Occupation Tax Act at each place of
20    business  which  is  located within the redevelopment project
21    area in the manner and for the periods of time  requested  by
22    the Department of Revenue.
23        When  the  municipality  determines  that a portion of an
24    increase in the aggregate amount of taxes paid  by  retailers
25    and  servicemen  under the Retailers' Occupation Tax Act, Use
26    Tax Act, Service Use Tax Act, or the Service  Occupation  Tax
27    Act  is  the  result  of  a retailer or serviceman initiating
28    retail or service operations  in  the  redevelopment  project
29    area   by  such  retailer  or  serviceman  with  a  resulting
30    termination of retail or service operations by such  retailer
31    or serviceman at another location in Illinois in the standard
32    metropolitan  statistical  area  of  such  municipality,  the
33    Department  of  Revenue  shall be notified that the retailers
34    occupation  tax  liability,  use   tax   liability,   service
HB0524 Enrolled             -22-               LRB9001031DNcc
 1    occupation  tax  liability, or service use tax liability from
 2    such retailer's or serviceman's terminated operation shall be
 3    included in the base Initial Sales Tax Amounts from which the
 4    State Sales Tax Increment is calculated for purposes of State
 5    payments to the affected municipality; provided, however, for
 6    purposes of this paragraph "termination" shall mean a closing
 7    of a retail or service operation which is directly related to
 8    the opening of the same retail  or  service  operation  in  a
 9    redevelopment  project  area which is included within a State
10    Sales Tax Boundary,  but  it  shall  not  include  retail  or
11    service  operations  closed for reasons beyond the control of
12    the retailer or serviceman, as determined by the  Department.
13    If  the  municipality  makes the determination referred to in
14    the prior paragraph and notifies the Department  and  if  the
15    relocation  is  from  a location within the municipality, the
16    Department, at the request of the municipality, shall  adjust
17    the  certified  aggregate amount of taxes that constitute the
18    Municipal  Sales  Tax  Increment  paid   by   retailers   and
19    servicemen  on  transactions  at  places  of business located
20    within the State Sales Tax  Boundary  during  the  base  year
21    using  the  same  procedures  as  are  employed  to  make the
22    adjustment referred to in the prior paragraph.  The  adjusted
23    Municipal  Sales  Tax  Increment calculated by the Department
24    shall be sufficient to satisfy the requirements of subsection
25    (1) of this Section.
26        When a  municipality  which  has  adopted  tax  increment
27    allocation financing in 1986 determines that a portion of the
28    aggregate  amount  of  taxes paid by retailers and servicemen
29    under the Retailers Occupation Tax Act, Use Tax Act,  Service
30    Use  Tax  Act,  or  Service Occupation Tax Act, the Municipal
31    Retailers' Occupation  Tax  Act  and  the  Municipal  Service
32    Occupation  Tax  Act,  includes  revenue  of  a  retailer  or
33    serviceman which terminated retailer or service operations in
34    1986,  prior  to  the  adoption  of  tax increment allocation
HB0524 Enrolled             -23-               LRB9001031DNcc
 1    financing, the Department of Revenue  shall  be  notified  by
 2    such   municipality   that   the  retailers'  occupation  tax
 3    liability,  use  tax  liability,   service   occupation   tax
 4    liability  or service use tax liability, from such retailer's
 5    or serviceman's terminated operations shall be excluded  from
 6    the  Initial  Sales  Tax  Amounts for such taxes. The revenue
 7    from any such retailer or serviceman which is  excluded  from
 8    the  base year under this paragraph, shall not be included in
 9    calculating  incremental  revenues  if   such   retailer   or
10    serviceman  reestablishes  such business in the redevelopment
11    project area.
12        For State fiscal year 1992,  the  Department  of  Revenue
13    shall   budget,  and  the  Illinois  General  Assembly  shall
14    appropriate from the Illinois Tax Increment Fund in the State
15    treasury, an amount not to exceed $18,000,000 to pay to  each
16    eligible  municipality  the  Net State Sales Tax Increment to
17    which such municipality is entitled.
18        Beginning  on  January  1,  1993,   each   municipality's
19    proportional  share  of the Illinois Tax Increment Fund shall
20    be determined by  adding  the  annual  Net  State  Sales  Tax
21    Increment  and  the  annual  Net  Utility  Tax  Increment  to
22    determine the Annual Total Increment. The ratio of the Annual
23    Total  Increment  of  each  municipality  to the Annual Total
24    Increment for all municipalities, as most recently calculated
25    by the Department, shall determine the proportional shares of
26    the Illinois Tax Increment Fund to  be  distributed  to  each
27    municipality.
28        Beginning in October, 1993, and each January, April, July
29    and  October  thereafter,  the  Department  of  Revenue shall
30    certify to the Treasurer  and  the  Comptroller  the  amounts
31    payable  quarter  annually  during  the  fiscal  year to each
32    municipality  under  this  Section.  The  Comptroller   shall
33    promptly  then draw warrants, ordering the State Treasurer to
34    pay such amounts from the Illinois Tax Increment Fund in  the
HB0524 Enrolled             -24-               LRB9001031DNcc
 1    State treasury.
 2        The  Department of Revenue shall utilize the same periods
 3    established for determining  State  Sales  Tax  Increment  to
 4    determine  the  Municipal  Sales  Tax  Increment for the area
 5    within a State Sales Tax Boundary and certify such amounts to
 6    such municipal treasurer who shall transfer such  amounts  to
 7    the special tax allocation fund.
 8        The  provisions  of  this  subsection (1) do not apply to
 9    additional  municipal  retailers'   occupation   or   service
10    occupation  taxes  imposed by municipalities using their home
11    rule  powers  or  imposed  pursuant  to  Sections   8-11-1.3,
12    8-11-1.4  and  8-11-1.5 of this Act. A municipality shall not
13    receive  from  the  State  any  share  of  the  Illinois  Tax
14    Increment Fund unless  such  municipality  deposits  all  its
15    Municipal  Sales Tax Increment and the local incremental real
16    property  tax  revenues,  as  provided   herein,   into   the
17    appropriate  special  tax  allocation  fund.  A  municipality
18    located  within  an economic development project area created
19    under the County Economic  Development Project Area  Property
20    Tax  Allocation  Act  which  has  abated  any  portion of its
21    property taxes which otherwise would have been  deposited  in
22    its  special  tax  allocation fund shall not receive from the
23    State the Net Sales Tax Increment.
24        (2)  A  municipality  which  has  adopted  tax  increment
25    allocation financing with regard to  an  industrial  park  or
26    industrial  park conservation area, prior to January 1, 1988,
27    may by ordinance  authorize  the  Department  of  Revenue  to
28    annually certify and pay from the Illinois Tax Increment Fund
29    to  such  municipality  for  deposit  in  the  municipality's
30    special  tax allocation fund an amount equal to the Net State
31    Utility Tax Increment. Provided that  for  purposes  of  this
32    Section   no   amendments   adding  additional  area  to  the
33    redevelopment project area shall be  taken  into  account  if
34    such amendments are adopted by the municipality after January
HB0524 Enrolled             -25-               LRB9001031DNcc
 1    1,  1988.  Municipalities  adopting  an  ordinance under this
 2    subsection (2) of this Section for  a  redevelopment  project
 3    area  shall  not  be  entitled  to  payment  of  State  taxes
 4    authorized  under subsection (1) of this Section for the same
 5    redevelopment project area which is within a State Sales  Tax
 6    Boundary.  Nothing  herein  shall  be  construed to prevent a
 7    municipality from receiving payment of State taxes authorized
 8    under  subsection  (1)  of  this  Section  for   a   separate
 9    redevelopment  project area within a State Sales Tax Boundary
10    that does not overlap  in  any  way  with  the  redevelopment
11    project  area  receiving  payments of State taxes pursuant to
12    subsection (2) of this Section.
13        A certified copy of such ordinance shall be submitted  to
14    the  Department  of  Commerce  and  Community Affairs and the
15    Department of Revenue  not  later  than  30  days  after  the
16    effective date of the ordinance.
17        When  a  municipality  determines  that  a  portion of an
18    increase in the aggregate amount of taxes paid by  industrial
19    or  commercial  facilities under the Public Utilities Act, is
20    the result of an industrial or commercial facility initiating
21    operations in the redevelopment project area with a resulting
22    termination  of  such  operations  by  such   industrial   or
23    commercial  facility  at  another  location  in Illinois, the
24    Department of Revenue shall be notified by such  municipality
25    that such industrial or commercial facility's liability under
26    the Public Utility Tax Act shall be included in the base from
27    which  tax  increments  are  calculated for purposes of State
28    payments to the affected municipality.
29        After receipt of the calculations by the  public  utility
30    as required by subsection (4) of this Section, the Department
31    of  Revenue  shall  annually  budget and the Illinois General
32    Assembly shall annually appropriate from the General  Revenue
33    Fund  through State Fiscal Year 1989, and thereafter from the
34    Illinois Tax Increment Fund, an amount sufficient to  pay  to
HB0524 Enrolled             -26-               LRB9001031DNcc
 1    each  eligible municipality the amount of incremental revenue
 2    attributable to State electric and gas taxes as reflected  by
 3    the  charges  imposed on persons in the project area to which
 4    such municipality is  entitled  by  comparing  the  preceding
 5    calendar  year  with  the  base  year  as  determined by this
 6    Section.  Beginning on January 1, 1993,  each  municipality's
 7    proportional  share  of the Illinois Tax Increment Fund shall
 8    be determined by adding the  annual  Net  State  Utility  Tax
 9    Increment  and  the  annual  Net  Utility  Tax  Increment  to
10    determine the Annual Total Increment. The ratio of the Annual
11    Total  Increment  of  each  municipality  to the Annual Total
12    Increment for all municipalities, as most recently calculated
13    by the Department, shall determine the proportional shares of
14    the Illinois Tax Increment Fund to  be  distributed  to  each
15    municipality.
16        A  municipality  shall  not  receive  any  share  of  the
17    Illinois  Tax  Increment  Fund  from  the  State  unless such
18    municipality imposes the maximum municipal charges authorized
19    pursuant to Section 9-221 of the  Public  Utilities  Act  and
20    deposits  all  municipal  utility tax incremental revenues as
21    certified by the public utilities, and all local real  estate
22    tax   increments   into   such   municipality's  special  tax
23    allocation fund.
24        (3)  Within 30 days after the adoption of  the  ordinance
25    required  by  either subsection (1) or subsection (2) of this
26    Section, the municipality shall transmit to the Department of
27    Commerce and Community Affairs and the Department of  Revenue
28    the following:
29             (a)  if   applicable,   a   certified  copy  of  the
30        ordinance required by subsection  (1)  accompanied  by  a
31        complete  list  of  street  names and the range of street
32        numbers of each street located within  the  redevelopment
33        project area for which payments are to be made under this
34        Section  in  both the base year and in the year preceding
HB0524 Enrolled             -27-               LRB9001031DNcc
 1        the payment year; and the addresses of persons registered
 2        with the Department of Revenue; and, the name under which
 3        each such retailer or  serviceman  conducts  business  at
 4        that  address,  if different from the corporate name; and
 5        the Illinois Business Tax Number of each such person (The
 6        municipality shall update this list in  the  event  of  a
 7        revision  of  the  redevelopment  project  area,  or  the
 8        opening  or  closing or name change of any street or part
 9        thereof in the redevelopment  project  area,  or  if  the
10        Department  of  Revenue  informs  the  municipality of an
11        addition or deletion  pursuant  to  the  monthly  updates
12        given by the Department.);
13             (b)  if   applicable,   a   certified  copy  of  the
14        ordinance required by subsection  (2)  accompanied  by  a
15        complete list of street names and range of street numbers
16        of  each  street located within the redevelopment project
17        area, the utility customers in the project area, and  the
18        utilities serving the redevelopment project areas;
19             (c)  certified  copies  of  the ordinances approving
20        the redevelopment plan and designating the  redevelopment
21        project area;
22             (d)  a copy of the redevelopment plan as approved by
23        the municipality;
24             (e)  an   opinion   of   legal   counsel   that  the
25        municipality had complied with the requirements  of  this
26        Act; and
27             (f)  a  certification by the chief executive officer
28        of the municipality that with regard to  a  redevelopment
29        project  area:  (1) the municipality has committed all of
30        the municipal tax increment created pursuant to this  Act
31        for  deposit  in the special tax allocation fund, (2) the
32        redevelopment projects  described  in  the  redevelopment
33        plan  would  not  be  completed  without the use of State
34        incremental  revenues  pursuant  to  this  Act,  (3)  the
HB0524 Enrolled             -28-               LRB9001031DNcc
 1        municipality  will  pursue  the  implementation  of   the
 2        redevelopment  plan  in  an  expeditious  manner, (4) the
 3        incremental revenues created  pursuant  to  this  Section
 4        will  be  exclusively utilized for the development of the
 5        redevelopment project area, and (5) the increased revenue
 6        created  pursuant  to  this   Section   shall   be   used
 7        exclusively to pay redevelopment project costs as defined
 8        in this Act.
 9        (4)  The  Department  of  Revenue  upon  receipt  of  the
10    information  set  forth  in  paragraph  (b) of subsection (3)
11    shall immediately forward such  information  to  each  public
12    utility  furnishing  natural  gas or electricity to buildings
13    within the redevelopment project area.  Upon receipt of  such
14    information, each public utility shall promptly:
15             (a)  provide  to  the  Department of Revenue and the
16        municipality separate lists of the names and addresses of
17        persons within the redevelopment project  area  receiving
18        natural  gas  or  electricity  from  such public utility.
19        Such list shall be updated as  necessary  by  the  public
20        utility.  Each  month thereafter the public utility shall
21        furnish the Department of Revenue  and  the  municipality
22        with  an  itemized listing of charges imposed pursuant to
23        Sections 9-221 and 9-222 of the Public Utilities  Act  on
24        persons within the redevelopment project area.
25             (b)  determine   the   amount   of  charges  imposed
26        pursuant to  Sections  9-221  and  9-222  of  the  Public
27        Utilities  Act  on  persons  in the redevelopment project
28        area during the base year, both as a result of  municipal
29        taxes  on  electricity  and  gas and as a result of State
30        taxes on electricity and gas  and  certify  such  amounts
31        both  to  the municipality and the Department of Revenue;
32        and
33             (c)  determine  the  amount   of   charges   imposed
34        pursuant  to  Sections  9-221  and  9-222  of  the Public
HB0524 Enrolled             -29-               LRB9001031DNcc
 1        Utilities Act on persons  in  the  redevelopment  project
 2        area  on  a monthly basis during the base year, both as a
 3        result of State and municipal taxes  on  electricity  and
 4        gas  and  certify  such  separate  amounts  both  to  the
 5        municipality and the Department of Revenue.
 6        After  the  determinations are made in paragraphs (b) and
 7    (c), the public utility shall monthly during the existence of
 8    the redevelopment  project  area  notify  the  Department  of
 9    Revenue  and the municipality of any increase in charges over
10    the base year determinations made pursuant to paragraphs  (b)
11    and (c).
12        (5)  The  payments authorized under this Section shall be
13    deposited by the  municipal  treasurer  in  the  special  tax
14    allocation  fund  of  the  municipality, which for accounting
15    purposes shall identify  the  sources  of  each  payment  as:
16    municipal  receipts  from  the  State  retailers  occupation,
17    service  occupation, use and service use taxes; and municipal
18    public utility taxes charged to customers  under  the  Public
19    Utilities  Act  and  State  public  utility  taxes charged to
20    customers under the Public Utilities Act.
21        (6)  Any municipality receiving payments authorized under
22    this Section for  any  redevelopment  project  area  or  area
23    within  a  State  Sales  Tax Boundary within the municipality
24    shall submit to the Department of Revenue and to  the  taxing
25    districts  which are sent the notice required by Section 6 of
26    this Act annually within 180 days after  the  close  of  each
27    municipal  fiscal  year  the  following  information  for the
28    immediately preceding fiscal year:
29             (a)  Any amendments to the redevelopment  plan,  the
30        redevelopment  project  area,  or  the  State  Sales  Tax
31        Boundary.
32             (b)  Audited financial statements of the special tax
33        allocation fund.
34             (c)  Certification of the Chief Executive Officer of
HB0524 Enrolled             -30-               LRB9001031DNcc
 1        the  municipality that the municipality has complied with
 2        all of the requirements of this Act during the  preceding
 3        fiscal year.
 4             (d)  An   opinion   of   legal   counsel   that  the
 5        municipality is in compliance with this Act.
 6             (e)  An analysis of the special tax allocation  fund
 7        which sets forth:
 8                  (1)  the  balance in the special tax allocation
 9             fund at the beginning of the fiscal year;
10                  (2)  all amounts deposited in the  special  tax
11             allocation fund by source;
12                  (3)  all  expenditures  from  the  special  tax
13             allocation   fund   by   category   of   permissible
14             redevelopment project cost; and
15                  (4)  the  balance in the special tax allocation
16             fund at the end  of  the  fiscal  year  including  a
17             breakdown  of  that  balance  by source. Such ending
18             balance shall be designated as surplus if it is  not
19             required for anticipated redevelopment project costs
20             or  to  pay  debt service on bonds issued to finance
21             redevelopment project costs, as set forth in Section
22             11-74.4-7 hereof.
23             (f)  A description of all property purchased by  the
24        municipality   within   the  redevelopment  project  area
25        including
26                  1.  Street address
27                  2.  Approximate size or description of property
28                  3.  Purchase price
29                  4.  Seller of property.
30             (g)  A  statement  setting  forth   all   activities
31        undertaken  in  furtherance  of  the  objectives  of  the
32        redevelopment plan, including:
33                  1.  Any  project  implemented  in the preceding
34             fiscal year
HB0524 Enrolled             -31-               LRB9001031DNcc
 1                  2.  A   description   of   the    redevelopment
 2             activities undertaken
 3                  3.  A  description  of  any  agreements entered
 4             into  by  the  municipality  with  regard   to   the
 5             disposition  or redevelopment of any property within
 6             the redevelopment project area or  the  area  within
 7             the State Sales Tax Boundary.
 8             (h)  With  regard  to  any obligations issued by the
 9        municipality:
10                  1.  copies of bond ordinances or resolutions
11                  2.  copies of any official statements
12                  3.  an analysis prepared by  financial  advisor
13             or underwriter setting forth: (a) nature and term of
14             obligation; and (b) projected debt service including
15             required reserves and debt coverage.
16             (i)  A  certified  audit report reviewing compliance
17        with this statute  performed  by  an  independent  public
18        accountant certified and licensed by the authority of the
19        State  of  Illinois.   The financial portion of the audit
20        must be conducted in accordance with Standards for Audits
21        of Governmental Organizations, Programs, Activities,  and
22        Functions  adopted  by  the  Comptroller  General  of the
23        United States (1981), as amended.  The audit report shall
24        contain a letter from the  independent  certified  public
25        accountant  indicating  compliance  or noncompliance with
26        the requirements of subsection (q) of Section  11-74.4-3.
27        If  the  audit  indicates  that  expenditures  are not in
28        compliance with the law, the Department of Revenue  shall
29        withhold  State  sales and utility tax increment payments
30        to the municipality until compliance  has  been  reached,
31        and  an  amount  equal to the ineligible expenditures has
32        been returned to the Special Tax Allocation Fund.
33        (6.1)  After July 29, 1988, any funds which have not been
34    designated for use in a specific development project  in  the
HB0524 Enrolled             -32-               LRB9001031DNcc
 1    annual report shall be designated as surplus. No funds may be
 2    held  in  the  Special  Tax  Allocation Fund for more than 36
 3    months from the date of receipt unless the money is  required
 4    for   payment   of   contractual   obligations  for  specific
 5    development project costs. If held for more than 36 months in
 6    violation of the preceding  sentence,  such  funds  shall  be
 7    designated  as  surplus. Any funds designated as surplus must
 8    first be used for early redemption of any  bond  obligations.
 9    Any  funds designated as surplus which are not disposed of as
10    otherwise provided in this paragraph, shall be distributed as
11    surplus as provided in Section 11-74.4-7.
12        (7)  Any appropriation made pursuant to this Section  for
13    the  1987 State fiscal year shall not exceed the amount of $7
14    million and for the 1988 State fiscal year the amount of  $10
15    million.   The  amount  which  shall  be  distributed to each
16    municipality shall be the incremental revenue to  which  each
17    municipality  is  entitled as calculated by the Department of
18    Revenue, unless the requests of the municipality  exceed  the
19    appropriation,  then  the  amount  to which each municipality
20    shall be entitled shall be prorated among the  municipalities
21    in  the  same  proportion  as  the  increment  to  which  the
22    municipality  would  be entitled bears to the total increment
23    which all municipalities would receive in the absence of this
24    limitation, provided that  no  municipality  may  receive  an
25    amount  in  excess  of 15% of the appropriation. For the 1987
26    Net State Sales Tax Increment payable in Fiscal Year 1989, no
27    municipality shall  receive  more  than  7.5%  of  the  total
28    appropriation;   provided,   however,   that   any   of   the
29    appropriation  remaining  after  such  distribution  shall be
30    prorated among municipalities on the basis of their pro  rata
31    share  of  the total increment. Beginning on January 1, 1993,
32    each municipality's proportional share of  the  Illinois  Tax
33    Increment  Fund  shall be determined by adding the annual Net
34    State Sales Tax Increment and  the  annual  Net  Utility  Tax
HB0524 Enrolled             -33-               LRB9001031DNcc
 1    Increment  to determine the Annual Total Increment. The ratio
 2    of the Annual Total Increment of  each  municipality  to  the
 3    Annual  Total  Increment  for  all  municipalities,  as  most
 4    recently  calculated  by  the Department, shall determine the
 5    proportional shares of the Illinois Tax Increment Fund to  be
 6    distributed to each municipality.
 7        (7.1)  No  distribution  of Net State Sales Tax Increment
 8    to a municipality for  an  area  within  a  State  Sales  Tax
 9    Boundary  shall  exceed  in  any  State Fiscal Year an amount
10    equal  to  3  times  the  sum  of  the  Municipal  Sales  Tax
11    Increment, the real property tax increment  and  deposits  of
12    funds  from other sources, excluding state and federal funds,
13    as certified by the  city  treasurer  to  the  Department  of
14    Revenue  for an area within a State Sales Tax Boundary. After
15    July 29, 1988, for those  municipalities  which  issue  bonds
16    between  June  1,  1988  and  3  years  from July 29, 1988 to
17    finance redevelopment projects within the  area  in  a  State
18    Sales  Tax  Boundary, the distribution of Net State Sales Tax
19    Increment during the 16th through 20th years from the date of
20    issuance of the bonds shall not exceed in  any  State  Fiscal
21    Year  an  amount  equal  to  2 times the sum of the Municipal
22    Sales Tax Increment, the  real  property  tax  increment  and
23    deposits  of  funds  from  other sources, excluding State and
24    federal funds.
25        (8)  Any person who knowingly files or causes to be filed
26    false information for the purpose of increasing the amount of
27    any  State  tax  incremental  revenue  commits  a   Class   A
28    misdemeanor.
29        (9)  The   following  procedures  shall  be  followed  to
30    determine whether municipalities have complied with  the  Act
31    for the purpose of receiving distributions after July 1, 1989
32    pursuant to subsection (1) of this Section 11-74.4-8a.
33             (a)  The  Department  of  Revenue  shall  conduct  a
34        preliminary review of the redevelopment project areas and
HB0524 Enrolled             -34-               LRB9001031DNcc
 1        redevelopment  plans  pertaining  to those municipalities
 2        receiving payments from the State pursuant to  subsection
 3        (1)  of  Section  8a  of  this  Act  for  the  purpose of
 4        determining compliance with the following standards:
 5                  (1)  For any municipality with a population  of
 6             more  than  12,000  as  determined  by the 1980 U.S.
 7             Census:  (a) the redevelopment project area,  or  in
 8             the  case  of a municipality which has more than one
 9             redevelopment project area, each such area, must  be
10             contiguous and the total of all such areas shall not
11             comprise  more  than  25%  of  the  area  within the
12             municipal  boundaries  nor  more  than  20%  of  the
13             equalized assessed value of  the  municipality;  (b)
14             the   aggregate   amount   of   1985  taxes  in  the
15             redevelopment project area, or  in  the  case  of  a
16             municipality  which  has more than one redevelopment
17             project area, the total of all such areas, shall  be
18             not  more than 25% of the total base year taxes paid
19             by  retailers  and  servicemen  on  transactions  at
20             places of business located within  the  municipality
21             under the Retailers' Occupation Tax Act, the Use Tax
22             Act,  the  Service  Use  Tax  Act,  and  the Service
23             Occupation Tax Act.    Redevelopment  project  areas
24             created  prior  to 1986 are not subject to the above
25             standards if their boundaries were  not  amended  in
26             1986.
27                  (2)  For  any municipality with a population of
28             12,000 or  less  as  determined  by  the  1980  U.S.
29             Census:   (a)  the redevelopment project area, or in
30             the case of a municipality which has more  than  one
31             redevelopment  project area, each such area, must be
32             contiguous and the total of all such areas shall not
33             comprise more  than  35%  of  the  area  within  the
34             municipal  boundaries  nor  more  than  30%  of  the
HB0524 Enrolled             -35-               LRB9001031DNcc
 1             equalized  assessed  value  of the municipality; (b)
 2             the  aggregate  amount  of   1985   taxes   in   the
 3             redevelopment  project  area,  or  in  the case of a
 4             municipality which has more than  one  redevelopment
 5             project area, the total of all such areas, shall not
 6             be  more  than 35% of the total base year taxes paid
 7             by  retailers  and  servicemen  on  transactions  at
 8             places of business located within  the  municipality
 9             under the Retailers' Occupation Tax Act, the Use Tax
10             Act,  the  Service  Use  Tax  Act,  and  the Service
11             Occupation Tax  Act.   Redevelopment  project  areas
12             created  prior  to 1986 are not subject to the above
13             standards if their boundaries were  not  amended  in
14             1986.
15                  (3)  Such    preliminary    review    of    the
16             redevelopment   project  areas  applying  the  above
17             standards shall be completed by  November  1,  1988,
18             and  on  or  before November 1, 1988, the Department
19             shall notify each municipality  by  certified  mail,
20             return   receipt   requested  that  either  (1)  the
21             Department requires  additional  time  in  which  to
22             complete   its   preliminary   review;  or  (2)  the
23             Department is issuing either (a)  a  Certificate  of
24             Eligibility  or  (b)  a  Notice  of  Review.  If the
25             Department notifies a municipality that it  requires
26             additional   time   to   complete   its  preliminary
27             investigation, it  shall  complete  its  preliminary
28             investigation no later than February 1, 1989, and by
29             February  1,  1989  shall issue to each municipality
30             either (a) a Certificate of  Eligibility  or  (b)  a
31             Notice  of  Review. A redevelopment project area for
32             which a Certificate of Eligibility has  been  issued
33             shall be deemed a "State Sales Tax Boundary."
34                  (4)  The Department of Revenue shall also issue
HB0524 Enrolled             -36-               LRB9001031DNcc
 1             a  Notice of Review if the Department has received a
 2             request by November 1, 1988 to conduct such a review
 3             from taxpayers in  the  municipality,  local  taxing
 4             districts  located  in the municipality or the State
 5             of Illinois, or if the  redevelopment  project  area
 6             has  more  than  5  retailers  and has had growth in
 7             State sales  tax  revenue  of  more  than  15%  from
 8             calendar year 1985 to 1986.
 9             (b)  For  those municipalities receiving a Notice of
10        Review, the Department will conduct  a  secondary  review
11        consisting  of:  (i)  application  of the above standards
12        contained  in  subsection   (9)(a)(1)(a)   and   (b)   or
13        (9)(a)(2)(a)   and  (b),  and  (ii)  the  definitions  of
14        blighted and conservation area provided  for  in  Section
15        11-74.4-3.   Such  secondary review shall be completed by
16        July 1, 1989.
17             Upon  completion  of  the  secondary   review,   the
18        Department will issue (a) a Certificate of Eligibility or
19        (b) a Preliminary Notice of Deficiency.  Any municipality
20        receiving  a  Preliminary  Notice of Deficiency may amend
21        its redevelopment project area to meet the standards  and
22        definitions set forth in this paragraph (b). This amended
23        redevelopment  project area shall become the "State Sales
24        Tax Boundary" for purposes of determining the State Sales
25        Tax Increment.
26             (c)  If the municipality advises the  Department  of
27        its  intent  to comply with the requirements of paragraph
28        (b) of this subsection outlined in the Preliminary Notice
29        of Deficiency, within 120 days of receiving  such  notice
30        from   the  Department,  the  municipality  shall  submit
31        documentation to the Department of  the  actions  it  has
32        taken  to  cure  any deficiencies.  Thereafter, within 30
33        days of the receipt of the documentation, the  Department
34        shall  either  issue  a  Certificate  of Eligibility or a
HB0524 Enrolled             -37-               LRB9001031DNcc
 1        Final Notice of Deficiency.  If the municipality fails to
 2        advise the Department of its intent to comply or fails to
 3        submit   adequate   documentation   of   such   cure   of
 4        deficiencies the Department shall issue a Final Notice of
 5        Deficiency  that  provides  that  the   municipality   is
 6        ineligible  for  payment  of  the  Net  State  Sales  Tax
 7        Increment.
 8             (d)  If  the Department issues a final determination
 9        of ineligibility, the municipality  shall  have  30  days
10        from  the receipt of determination to protest and request
11        a hearing. Such hearing shall be conducted in  accordance
12        with  Sections  10-25,  10-35,  10-40,  and  10-50 of the
13        Illinois  Administrative  Procedure  Act.  The   decision
14        following  the  hearing  shall be subject to review under
15        the Administrative Review Law.
16             (e)  Any Certificate of Eligibility issued  pursuant
17        to  this  subsection 9 shall be binding only on the State
18        for the purposes of establishing municipal eligibility to
19        receive  revenue  pursuant  to  subsection  (1)  of  this
20        Section 11-74.4-8a.
21             (f)  It is the intent of this  subsection  that  the
22        periods of time to cure deficiencies shall be in addition
23        to  all  other periods of time permitted by this Section,
24        regardless of the date by  which  plans  were  originally
25        required  to  be  adopted.   To  cure  said deficiencies,
26        however, the municipality shall be required to follow the
27        procedures and requirements pertaining to amendments,  as
28        provided in Sections 11-74.4-5 and 11-74.4-6 of this Act.
29        (10)  If a municipality adopts a State Sales Tax Boundary
30    in  accordance  with the provisions of subsection (9) of this
31    Section, such boundaries shall subsequently  be  utilized  to
32    determine Revised Initial Sales Tax Amounts and the Net State
33    Sales  Tax  Increment;  provided,  however, that such revised
34    State Sales Tax Boundary shall not have any effect  upon  the
HB0524 Enrolled             -38-               LRB9001031DNcc
 1    boundary  of  the  redevelopment project area established for
 2    the purposes of determining the  ad  valorem  taxes  on  real
 3    property pursuant to Sections 11-74.4-7 and 11-74.4-8 of this
 4    Act  nor  upon  the municipality's authority to implement the
 5    redevelopment plan for that redevelopment project area.   For
 6    any redevelopment project area with a smaller State Sales Tax
 7    Boundary within its area, the municipality may annually elect
 8    to   deposit  the  Municipal  Sales  Tax  Increment  for  the
 9    redevelopment project area in the special tax allocation fund
10    and shall certify the  amount  to  the  Department  prior  to
11    receipt   of   the   Net  State  Sales  Tax  Increment.   Any
12    municipality required by subsection (9) to establish a  State
13    Sales  Tax  Boundary  for  one  or  more of its redevelopment
14    project areas shall submit all necessary information required
15    by the Department concerning such boundary and the  retailers
16    therein,  by  October  1,  1989,  after  complying  with  the
17    procedures  for amendment set forth in Sections 11-74.4-5 and
18    11-74.4-6  of  this  Act.   Net  State  Sales  Tax  Increment
19    produced within the State Sales Tax Boundary shall  be  spent
20    only  within that area. However expenditures of all municipal
21    property tax increment and municipal sales tax increment in a
22    redevelopment project area  are  not  required  to  be  spent
23    within  the  smaller  State  Sales  Tax  Boundary within such
24    redevelopment project area.
25        (11)  The Department of Revenue shall have the  authority
26    to  issue rules and regulations for purposes of this Section.
27    and regulations for purposes of this Section.
28        (12)  If, under Section 5.4.1 of the Illinois  Enterprise
29    Zone  Act,  a municipality determines that property that lies
30    within  a  State  Sales  Tax  Boundary  has  an  improvement,
31    rehabilitation, or renovation that is entitled to a  property
32    tax   abatement,   then   that   property   along   with  any
33    improvements,  rehabilitation,  or   renovations   shall   be
34    immediately  removed  from any State Sales Tax Boundary.  The
HB0524 Enrolled             -39-               LRB9001031DNcc
 1    municipality that made the  determination  shall  notify  the
 2    Department of Revenue within 30 days after the determination.
 3    Once  a property is removed from the State Sales Tax Boundary
 4    because  of  the  existence  of  a  property  tax   abatement
 5    resulting  from  an enterprise zone, then that property shall
 6    not be permitted  to  be  amended  into  a  State  Sales  Tax
 7    Boundary.
 8    (Source: P.A. 87-14; 87-1258; 87-1272; 88-45.)
 9        (65 ILCS 5/11-74.4-8c new)
10        Sec.  11-74.4-8c.   Enterprise  zone  abatements.   If  a
11    redevelopment  project  area is or has been established under
12    Section 11-74.4-4 on or before the  effective  date  of  this
13    amendatory  Act  of  1997  and the redevelopment project area
14    contains  property that is located within an enterprise  zone
15    established  under the Illinois Enterprise Zone Act, then the
16    property that is located in both  the  redevelopment  project
17    area  and  the  enterprise zone shall not be eligible for the
18    abatement of taxes under Section 18-170 of the  Property  Tax
19    Code  if  the  requirements of  Section 5.4.1 of the Illinois
20    Enterprise Zone Act are satisfied. If an abatement is limited
21    under Section 5.4.1 of the Illinois Enterprise  Zone  Act,  a
22    municipality  shall  notify the county clerk and the board of
23    review or board of appeals of the change in writing not later
24    than July 1 of the assessment year to be  first  affected  by
25    the change.
26        (65 ILCS 5/11-74.6-15)
27        Sec.   11-74.6-15.  Municipal   Powers   and  Duties.   A
28    municipality may:
29        (a)  By ordinance introduced in the governing body of the
30    municipality within 14 to 90 days from the final  adjournment
31    of  the  hearing  specified  in  Section  11-74.6-22, approve
32    redevelopment plans and redevelopment projects, and designate
HB0524 Enrolled             -40-               LRB9001031DNcc
 1    redevelopment planning areas and redevelopment project  areas
 2    pursuant  to  notice  and  hearing  required by this Act.  No
 3    redevelopment planning area  or  redevelopment  project  area
 4    shall  be  designated  unless a plan and project are approved
 5    before the designation of the area and the area shall include
 6    only those parcels of real property and improvements on those
 7    parcels substantially benefited by the proposed redevelopment
 8    project improvements.
 9        (b)  Make and  enter  into  all  contracts  necessary  or
10    incidental  to  the  implementation  and  furtherance  of its
11    redevelopment plan and project.
12        (c)  Within a  redevelopment  project  area,  acquire  by
13    purchase,  donation,  lease  or  eminent domain; own, convey,
14    lease, mortgage or dispose of land and other  property,  real
15    or  personal,  or  rights  or interests therein, and grant or
16    acquire licenses, easements and options with respect to  that
17    property,  all  in  the  manner  and  at  a  price  that  the
18    municipality  determines  is  reasonably necessary to achieve
19    the objectives of the  redevelopment  plan  and  project.  No
20    conveyance,  lease,  mortgage,  disposition  of land or other
21    property, or agreement relating to  the  development  of  the
22    property  shall  be made or executed except pursuant to prior
23    official  action  of  the  corporate   authorities   of   the
24    municipality.   No  conveyance,  lease,  mortgage,  or  other
25    disposition  of  land,  and  no  agreement  relating  to  the
26    development  of property, shall be made without making public
27    disclosure of the terms and the disposition of all  bids  and
28    proposals   submitted   to  the  municipality  in  connection
29    therewith.   The  procedures  for  obtaining  the  bids   and
30    proposals shall provide reasonable opportunity for any person
31    to submit alternative proposals or bids.
32        (d)  Within  a redevelopment project area, clear any area
33    by  demolition  or  removal  of   any   existing   buildings,
34    structures, fixtures, utilities or improvements, and to clear
HB0524 Enrolled             -41-               LRB9001031DNcc
 1    and grade land.
 2        (e)  Within  a  redevelopment  project  area, renovate or
 3    rehabilitate or construct any structure or building.
 4        (f)  Within or  without  a  redevelopment  project  area,
 5    install,  repair, construct, reconstruct or relocate streets,
 6    utilities and site improvements essential to the  preparation
 7    of  the  redevelopment  area  for  use  in  accordance with a
 8    redevelopment plan.
 9        (g)  Within a redevelopment project area, fix, charge and
10    collect fees, rents and charges for the use  of  all  or  any
11    part of any building or property owned or leased by it.
12        (h)  Issue obligations as provided in this Act.
13        (i)  Accept grants, guarantees and donations of property,
14    labor,  or  other  things  of  value from a public or private
15    source for use within a project redevelopment area.
16        (j)  Acquire and construct  public  facilities  within  a
17    redevelopment project area.
18        (k)  Incur, pay or cause to be paid redevelopment project
19    costs.  Any  payments  to  be  made  by  the  municipality to
20    redevelopers   or   other   nongovernmental    persons    for
21    redevelopment  project  costs incurred by such redeveloper or
22    other nongovernmental person shall be made only  pursuant  to
23    the  prior  official action of the municipality evidencing an
24    intent to pay or cause to be paid such redevelopment  project
25    costs.  A  municipality  is not required to obtain any right,
26    title or interest in any real or personal property  in  order
27    to  pay  redevelopment  project  costs  associated  with such
28    property.  The  municipality  shall  adopt  such   accounting
29    procedures  as  may  be  necessary  to  determine  that  such
30    redevelopment project costs are properly paid.
31        (l)  Create  a commission of not less than 5 or more than
32    15 persons to be appointed by the mayor or president  of  the
33    municipality   with  the  consent  of  the  majority  of  the
34    governing board of the municipality.  Members of a commission
HB0524 Enrolled             -42-               LRB9001031DNcc
 1    appointed after the effective  date  of  this  Law  shall  be
 2    appointed  for  initial  terms  of  1,  2,  3, 4 and 5 years,
 3    respectively, in numbers so that the terms of not  more  than
 4    1/3  of all members expire in any one year.  Their successors
 5    shall be appointed for a term of 5  years.   The  commission,
 6    subject  to  approval  of  the  corporate  authorities of the
 7    municipality, may exercise  the  powers  enumerated  in  this
 8    Section. The commission shall also have the power to hold the
 9    public hearings required by this Act and make recommendations
10    to  the  corporate  authorities  concerning  the  adoption of
11    redevelopment plans, redevelopment projects  and  designation
12    of redevelopment project areas.
13        (m)  Make  payment  in  lieu  of all or a portion of real
14    property taxes due to taxing districts. If payments  in  lieu
15    of  all  or  a portion of taxes are made to taxing districts,
16    those payments shall  be  made  to  all  districts  within  a
17    redevelopment project area on a basis that is proportional to
18    the  current collection of revenue which each taxing district
19    receives from real  property  in  the  redevelopment  project
20    area.
21        (n)  Exercise  any  and  all  other  powers  necessary to
22    effectuate the purposes of this Act.
23        (o)  In conjunction with other municipalities,  undertake
24    and  perform redevelopment plans and projects and utilize the
25    provisions  of  the  Act  wherever   they   have   contiguous
26    redevelopment  project  areas  or they determine to adopt tax
27    increment   allocation   financing   with   respect   to    a
28    redevelopment  project  area  that  includes  contiguous real
29    property within the boundaries of the municipalities, and, by
30    agreement  between  participating  municipalities,  to  issue
31    obligations,  separately  or  jointly,  and  expend  revenues
32    received under this Act for eligible expenses anywhere within
33    contiguous  redevelopment  project  areas  or  as   otherwise
34    permitted in the Act.
HB0524 Enrolled             -43-               LRB9001031DNcc
 1        (p)  Create   an   Industrial   Jobs   Recovery  Advisory
 2    Committee of not more than 15 members to be appointed by  the
 3    mayor  or  president  of the municipality with the consent of
 4    the majority of the governing board of the municipality.  The
 5    members of that Committee  shall  be  appointed  for  initial
 6    terms  of  1, 2, and 3 years respectively, in numbers so that
 7    the terms of not more than 1/3 of all members expire  in  any
 8    one  year.  Their successors shall be appointed for a term of
 9    3 years.   The  Committee  shall  have  none  of  the  powers
10    enumerated  in this Section.  The Committee shall serve in an
11    advisory  capacity  only.   The  Committee  may  advise   the
12    governing  board  of  the  municipality  and  other municipal
13    officials  regarding  development  issues  and  opportunities
14    within the redevelopment project area. The Committee may also
15    promote  and  publicize  development  opportunities  in   the
16    redevelopment project area.
17        (q)  If a redevelopment project has not been initiated in
18    a  redevelopment  project  area within 5 years after the area
19    was  designated  by  ordinance  under  subsection  (a),   the
20    municipality  shall  adopt  an ordinance repealing the area's
21    designation as a redevelopment project area.  Initiation of a
22    redevelopment project shall be evidenced by either  a  signed
23    redevelopment   agreement   or   expenditures   on   eligible
24    redevelopment  project  costs associated with a redevelopment
25    project.
26        (r)  Within a redevelopment planning  area,  transfer  or
27    loan  tax  increment  revenues from one redevelopment project
28    area to another redevelopment project area for expenditure on
29    eligible costs in the receiving area.
30        (s)  Use   tax   increment   revenue   produced   in    a
31    redevelopment   project   area  created  under  this  Law  by
32    transferring or loaning  such  revenues  to  a  redevelopment
33    project  area  created  under  the  Tax  Increment Allocation
34    Redevelopment Act that is either contiguous to, or  separated
HB0524 Enrolled             -44-               LRB9001031DNcc
 1    only by a public right of way from, the redevelopment project
 2    area that initially produced and received those revenues.
 3    (Source: P.A. 88-537.)
 4        Section  90.  The State Mandates Act is amended by adding
 5    Section 8.21 as follows:
 6        (30 ILCS 805/8.21 new)
 7        Sec. 8.21. Exempt mandate.   Notwithstanding  Sections  6
 8    and  8 of this Act, no reimbursement by the State is required
 9    for  the  implementation  of  any  mandate  created  by  this
10    amendatory Act of 1997.
11        Section 95.  Severability.  The provisions  of  this  Act
12    are severable under Section 1.31 of the Statute on Statutes.
13        Section  99.   Effective  date.  This Act takes effect on
14    July 1, 1997.

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