Bill
SB 2053
Lowers the Local Tourism Fund grant local-match to 25% from higher phased levels starting FY2026, easing access for smaller tourism bureaus.
Sponsor: Sen. Sara Feigenholtz (primary)
Subject: Local tourism grant matching requirements; hotel-operators tax distribution; related statutory edits
Note on record inconsistencies
- The provided bill text and synopsis address changes to tourism grant matching requirements and hotel-operators tax distribution.
- The header lists the bill as "Died In Committee" (and gives an introduction date of March 7, 2025). However, the legislative-action log included in the materials contains many later entries showing committee and floor action, signatures, and an effective date — creating contradictory status records. This summary focuses on the bill text and stated policy changes; readers should verify current enactment/status in the official legislative database.
Purpose / intent
- Reduce the required local match for Local Tourism Fund grants awarded by the Illinois Department of Commerce and Economic Opportunity (DCEO) beginning in Fiscal Year 2026, and make related adjustments to distribution authority under the Hotel Operators' Occupation Tax Act and the Illinois Sports Facilities Authority Act.
Key provisions
- Amends 20 ILCS 605/605-705 (DCEO Law) — grants to local tourism and convention bureaus:
- Changes the statutory required local matching share for grants from the Local Tourism Fund. Under current law (as recited in the bill), matching requirements were phased: 25% (FY2021–24), 30% (FY2025), and then 40% (FY2026) or 50% in subsequent years (text is partly duplicative). The bill expressly requires that in Fiscal Year 2026 and thereafter, any bureau receiving a grant that requires matching funds must provide matching funds equal to no less than 25% of the grant amount — reducing the long-term match obligation compared with the pre-amendment schedule.
- Retains other program rules (eligibility, allocation formulas, department reservation of up to 3% for administration, and historic set-asides referenced in existing law).
- Amends the Hotel Operators' Occupation Tax Act (35 ILCS 145/6) and the Illinois Sports Facilities Authority Act:
- Modifies provisions governing returns and allocation/distribution of hotel-operator occupation tax revenues. (The provided text of Section 6 is truncated; the bill indicates changes to the distribution of moneys collected under those Acts.)
Who is affected
- Local tourism and convention bureaus that apply for and receive Local Tourism Fund grants (particularly bureaus in municipalities/counties that levy hotel-motel taxes).
- Municipalities and counties that support bureaus with local hotel-motel taxes.
- DCEO (administration of grant program and rulemaking).
- Hotel operators and entities receiving allocations under the Hotel Operators' Occupation Tax Act and the Illinois Sports Facilities Authority (potentially affecting local revenue flows).
Procedural / timing notes
- The bill text includes an "effective immediately" clause, but the action log included with the materials also lists a later effective date (9/1/2025) and multiple post-introduction legislative actions. Because the status record is inconsistent, confirm the bill’s final status and effective date with the Illinois General Assembly’s official site or legislative clerk.
Potential impact
- Lowers the ongoing local matching burden for tourism-grant recipients (from the higher phased match to 25%), likely making state tourism grants more accessible to smaller or resource-constrained local bureaus and potentially increasing use of Local Tourism Fund grants.
- Changes to hotel-operator tax allocation could shift local/state revenue distributions; specific fiscal impacts depend on the exact allocation language (not fully present in the truncated text).
Related bill: HB 4439 (companion)
Compiled from official sources — confirm details with the bill’s official record.
Sign in to ask a question.
