State of Illinois
92nd General Assembly
Legislation

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[ Introduced ][ Senate Amendment 001 ]


92_SB2301sam002

 










                                           LRB9215443SMdvam01

 1                    AMENDMENT TO SENATE BILL 2301

 2        AMENDMENT NO.     .  Amend Senate Bill 2301, AS  AMENDED,
 3    by replacing the title with the following:
 4        "AN ACT concerning banking."; and

 5    by  replacing  everything  after the enacting clause with the
 6    following:

 7        "Section 1. Short title. This act may  be  cited  as  the
 8    Banking Development District Act.

 9        Section 5. Banking development district program. There is
10    hereby  created  a  banking development district program, the
11    purpose of which is to encourage the establishment of banking
12    branches  in  geographic   locations   where   there   is   a
13    demonstrated  need  for banking services. The State Treasurer
14    shall, in consultation with the  Office  of  Banks  and  Real
15    Estate,  adopt  rules  in  accordance with the Administrative
16    Procedure  Act  that  set  forth   the   criteria   for   the
17    establishment  of banking development districts. The criteria
18    shall include, but not be limited to, the following:
19             (1)  the location, number, and  proximity  of  sites
20        where banking services are available within the district;
21             (2)  the   identification   of  consumer  needs  for
 
                            -2-            LRB9215443SMdvam01
 1        banking services within the district;
 2             (3)  the economic viability and local  credit  needs
 3        of the community within the district;
 4             (4)  the  existing commercial development within the
 5        district;
 6             (5)  the impact additional  banking  services  would
 7        have  on  potential economic development in the district;
 8        and
 9             (6)  any other criteria  that  the  State  Treasurer
10        deems appropriate.

11        Section 10. Definitions. As used in this Act:
12        "Improvement"  does  not include ordinary maintenance and
13    repairs.
14        "Bank" means a state bank, national bank,  savings  bank,
15    federal  savings  bank, savings and loan association, federal
16    savings and loan association, or trust company.
17        "Local government" means a county if the proposed banking
18    branch is in an unincorporated area or a municipality if  the
19    proposed banking branch is in an incorporated area.

20        Section  15.  Application. The governing board of a local
21    government,  in  conjunction  with  a  bank,  may  submit  an
22    application to the State Treasurer for the designation  of  a
23    banking  development district. The boundaries of the proposed
24    banking development district shall include property on  which
25    the  bank  plans  to make improvements to establish a banking
26    branch. The application shall include the  legal  description
27    of the property to be designated.
28        The  State  Treasurer  shall issue a determination on the
29    application within 60 days after receiving  the  application.
30    If  an  application  is  approved,  the State Treasurer shall
31    transmit notification of the  approval  and  a  copy  of  all
32    application  materials to the applicants, the Commissioner of
 
                            -3-            LRB9215443SMdvam01
 1    the Office of Banks and Real Estate, the Governor, the  State
 2    Comptroller,  the Director of Commerce and Community Affairs,
 3    the President of the Senate, the  Speaker  of  the  House  of
 4    Representatives,  and  the  clerk  of the county in which the
 5    property is located.

 6        Section  20.  Existing  facilities.  Notwithstanding  any
 7    other provision of law, an application may be submitted by  a
 8    local  government in conjunction with a bank that has already
 9    opened a branch within the area of the proposed district.  In
10    considering  the  criteria  authorized  under  Section 5, the
11    State Treasurer must also take into  account  the  importance
12    and  benefits  of  preserving the banking services offered by
13    the existing branch.

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

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

21        (35 ILCS 200/18-167 new)
22        Sec. 18-167. Abatement of taxes in a banking district.
23        (a)  Definitions.  For  purposes  of this Section, "bank"
24    means  that  term  as  defined  in  the  Banking  Development
25    District Act.
26        (b)  Any taxing district, upon a  majority  vote  of  its
27    governing  authority,  may,  after  the  determination of the
28    assessed valuation of its property,  adopt  an  ordinance  or
29    resolution  ordering  the  clerk of the county or counties in
30    which the taxing district is located to abate  a  portion  of
 
                            -4-            LRB9215443SMdvam01
 1    the  taxing  district's  taxes  on property of a bank that is
 2    used as a banking branch in an area designated as  a  banking
 3    development  district  under the Banking Development District
 4    Act. Before ordering the abatement, the taxing district  must
 5    hold a public hearing regarding the proposed abatement.
 6             (1)  The  base  amount of the abatement shall be the
 7        taxes arising from the new improvements or the renovation
 8        or rehabilitation  of  existing  improvements  since  the
 9        designation of the banking development district, based on
10        the  equalized  assessed  value  attributable  to the new
11        improvements  or  the  renovation  or  rehabilitation  of
12        existing  improvements  for  the  first  year  they  were
13        assessed as completed as of January 1 of that  tax  year.
14        Taxes  attributable  to  increases  in  assessment due to
15        ordinary maintenance and repair shall not be abated under
16        this Section.
17             A copy of an  abatement  order  adopted  under  this
18        Section shall be delivered to the county clerk and to the
19        board  of  review not later than July 1 of the assessment
20        year to  be  first  affected  by  the  order.  If  it  is
21        delivered on or after that date, it will first affect the
22        taxes  extended  on the assessment of the following year.
23        The board of review shall,  in  the  first  year  of  the
24        abatement,  notify the bank to be affected and the taxing
25        district granting the abatement of the  list  of  parcels
26        affected  by  an  abatement  under  this  Section and the
27        assessed value attributable to the  new  improvements  or
28        the renovation or rehabilitation of existing improvements
29        for  the first year they were assessed as completed as of
30        January 1 of that tax year. The affected bank  or  taxing
31        district  may  file  a  complaint  regarding  the list of
32        parcels and computation within 15 days after the  mailing
33        of the notification, and shall be given an opportunity to
34        be heard. The board of review shall, in the first year of
 
                            -5-            LRB9215443SMdvam01
 1        the  abatement,  upon  delivering the assessment books to
 2        the county clerk, also deliver a list of parcels affected
 3        by an abatement under this Section and the assessed value
 4        attributable to new improvements or to the renovation  or
 5        rehabilitation  of  existing  improvements  for the first
 6        year they were assessed as completed as of January  1  of
 7        that tax year.
 8             The  county  clerk  shall  abate  the base amount as
 9        follows:
10               YEAR OF                   PERCENTAGE OF BASE
11              ABATEMENT                    AMOUNT ABATED
12                   1                            50%
13                   2                            45%
14                   3                            40%
15                   4                            35%
16                   5                            30%
17                   6                            25%
18                   7                            20%
19                   8                            15%
20                   9                            10%
21                  10                             5%
22             (ii)  The governing authority of a  taxing  district
23        may abate the property taxes on a banking branch that was
24        already   in   existence  when  the  banking  development
25        district  was  created  under  the  Banking   Development
26        District  Act.  The county clerk shall abate the taxes in
27        an amount that  shall  be  determined  by  the  governing
28        authority of the taxing district. The abatement shall not
29        exceed  a  period  of 10 years in duration and 50% of the
30        taxes attributable to the improvements in amount.
31        (c)  If property approved for  an  abatement  under  this
32    Section  ceases to be used as a banking branch, that property
33    is no longer eligible for abatement of taxes. If an abatement
34    is discontinued under this Section, the taxing district shall
 
                            -6-            LRB9215443SMdvam01
 1    notify the county clerk of the discontinuation in writing  no
 2    later than July 1 of the assessment year to be first affected
 3    by  the  change.  If  an  abatement of taxes is again allowed
 4    under this Section for the same property, the property  shall
 5    be  eligible  for  only  that  portion  of  the abatement not
 6    already used.

 7        Section 99. Effective date. This Act  takes  effect  upon
 8    becoming law.".

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