Public Act 0646 103RD GENERAL ASSEMBLY

 


 
Public Act 103-0646
 
SB3679 EnrolledLRB103 39381 AWJ 69554 b

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