97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB4958

 

Introduced 2/3/2012, by Rep. Frank J. Mautino

 

SYNOPSIS AS INTRODUCED:
 
New Act
20 ILCS 655/5.5  from Ch. 67 1/2, par. 609.1

    Creates the Illinois Titanium Powdered Metals Development Act. Creates the Illinois Titanium Powdered Metals Development Advisory Committee within the Department of Commerce and Economic Opportunity. Sets forth the membership of the Committee, including the Director of Commerce and Economic Opportunity and members appointed by the Governor and each of the legislative leaders. Sets forth the powers and duties of the Committee, including assisting with the growth and development of the titanium powdered metals industry within Illinois and the creation of a consortium or center that conducts, coordinates, and supports titanium powdered metals research, promotion, and marketing activities in the State. Requires the Committee to prepare and submit an annual report to the Governor and the General Assembly. Contains other provisions. Amends the Illinois Enterprise Zone Act. Provides that businesses that (i) intend to make minimum investment of $3,000,000 in titanium powdered metals manufacturing which will be placed in service in qualified property and (ii) intend to create or retain a minimum of 15 full-time equivalent jobs in titanium powdered metals manufacturing at a location in Illinois are considered high impact businesses. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB4958LRB097 19173 HLH 64415 b

1    AN ACT concerning State government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Short title. This Act may be cited as the
5Illinois Titanium Powdered Metals Development Act.
 
6    Section 5. Purpose. The purpose of this Act is to assist in
7the development of the titanium powdered metals industry in
8Illinois. The industry is growing but under the current
9economic climate and conditions needs state assistance to
10further promote and develop itself. The State's assistance will
11help the industry to grow, stabilize, and create jobs. The
12production of Titanium powder is an energy efficient process
13that reduces the use of energy. Titanium powder, when used in
14manufacturing processes, helps to create energy efficient
15products. Furthermore, the State's assistance will help
16provide additional needed resources to existing and new
17research programs while also giving the industry the ability to
18partner with Illinois' world class higher educational
19institutions. This will enable Illinois' titanium powdered
20metals industry to become a world class leader.
 
21    Section 10. Definition. As used in this Act, "titanium
22powdered metals" means a powdered metalworking process through

 

 

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1solid-state reduction, atomization, electrolysis, or chemical
2processing whereby the final product has been manufactured
3using at least 50% titanium tetrachloride (TiCL4).
4    "Department" means the Department of Commerce and Economic
5Opportunity.
6    "Director" means the Director of Commerce and Economic
7Opportunity.
 
8    Section 15. Creation of the Advisory Committee. The
9Illinois Titanium Powdered Metals Development Advisory
10Committee is hereby created within the Department of Commerce
11and Economic Opportunity. The Advisory Committee shall be
12composed of the following voting members: the Director of
13Commerce and Economic Opportunity, who shall be Chairman of the
14Advisory Committee, and 4 members of the General Assembly (one
15each appointed by the President of the Senate, the Senate
16Minority Leader, the Speaker of the House of Representatives,
17and the House Minority Leader). Members appointed by a
18legislative leader shall serve for the duration of the General
19Assembly for which he or she is appointed, so long as the
20member remains a member of that General Assembly.
21    The Advisory Committee shall meet at the call of the
22Chairman. At any time, the majority of the Advisory Committee
23may petition the Chairman for a meeting of the Committee. Three
24members of the Advisory Committee shall constitute a quorum.
 

 

 

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1    Section 20. Powers and duties of the Advisory Committee.
2The Advisory Committee shall have the following powers and
3duties:
4        (1) to develop an annual agenda to assist the growth
5    and development of the titanium powdered metals industry
6    within Illinois that may include, but is not limited to,
7    research, marketing, and promotional methodologies
8    conducted for the purpose of increasing the use of titanium
9    powdered metals produced, used, or transported by Illinois
10    companies with an emphasis on the following areas:
11    maintaining and increasing employment of Illinois workers
12    in the titanium powdered metals industry, titanium
13    powdered metals preparation and characterization,
14    marketing, public awareness and education, and
15    environmental impacts;
16        (2) to support and coordinate titanium powdered metals
17    research, marketing, and promotion in Illinois;
18        (3) to make direct loans or grants to companies in
19    Illinois that produce, manufacture, or substantially use
20    titanium powdered metals for the promotion, research,
21    manufacture, infrastructure, and research and development
22    of titanium powdered metals, including engineering, legal,
23    or design qualified experts, and for any other purpose in
24    fulfillment of this Act;
25        (4) to seek the assistance, help, and expertise of the
26    staff of the Department as the Advisory Committee deems

 

 

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1    necessary to accomplish its goals under this Act;
2        (5) to cooperate to the fullest extent possible with
3    State and federal agencies and departments, independent
4    organizations, and other interested groups, public and
5    private, for the purposes of promoting Illinois titanium
6    powdered metal resources;
7        (6) to focus on (i) existing titanium powdered metals
8    research, marketing, and promotion efforts, (ii) ways to
9    make use of existing facilities in Illinois or other
10    institutions carrying out research, marketing, and
11    promotion of titanium powdered metals, and (iii) make
12    maximum use of the facilities available in Illinois,
13    including universities and colleges located within the
14    State;
15        (7) to create a consortium that conducts, coordinates,
16    and supports titanium powdered metals research, promotion,
17    and marketing activities in the State of Illinois;
18    programmatic activities of the consortium or center shall
19    be subject to approval by the Advisory Committee and shall
20    be consistent with the purposes of this Section;
21        (8) to adopt, amend, or repeal rules, regulations, and
22    bylaws governing the Advisory Committee's organization and
23    conduct of business;
24        (9) to search for, accept, and expend gifts or grants
25    in any form from any public agency or any other source;
26        (10) to publish, from time to time, the results of

 

 

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1    titanium powdered metals research, marketing, and
2    promotion projects supported by the Advisory Committee.
 
3    Section 25. Other functions of the Advisory Committee. The
4Advisory Committee shall also:
5        (1) create and maintain current and accurate records on
6    all markets for and actual uses of titanium powdered metals
7    processed, used, or transported in Illinois and ways of
8    making those records available to the public upon request;
9        (2) identify all current and anticipated future
10    technical, economic, institutional, market, environmental,
11    regulatory, and other impediments to the use of titanium
12    powdered metals and the titanium powdered metal industry in
13    Illinois;
14        (3) identify alternative plans or actions that would
15    maintain or increase the use of titanium powdered metals
16    and the titanium powdered metal industry in Illinois;
17        (4) develop strategies and policies to promote
18    responsible uses of titanium powdered metals and the
19    titanium powdered industry in Illinois.
 
20    Section 60. The Illinois Enterprise Zone Act is amended by
21changing Section 5.5 as follows:
 
22    (20 ILCS 655/5.5)   (from Ch. 67 1/2, par. 609.1)
23    Sec. 5.5. High Impact Business.

 

 

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1    (a) In order to respond to unique opportunities to assist
2in the encouragement, development, growth and expansion of the
3private sector through large scale investment and development
4projects, the Department is authorized to receive and approve
5applications for the designation of "High Impact Businesses" in
6Illinois subject to the following conditions:
7        (1) such applications may be submitted at any time
8    during the year;
9        (2) such business is not located, at the time of
10    designation, in an enterprise zone designated pursuant to
11    this Act;
12        (3) the business intends to do one or more of the
13    following:
14            (A) the business intends to make a minimum
15        investment of $12,000,000 which will be placed in
16        service in qualified property and intends to create 500
17        full-time equivalent jobs at a designated location in
18        Illinois or intends to make a minimum investment of
19        $30,000,000 which will be placed in service in
20        qualified property and intends to retain 1,500
21        full-time jobs at a designated location in Illinois.
22        The business must certify in writing that the
23        investments would not be placed in service in qualified
24        property and the job creation or job retention would
25        not occur without the tax credits and exemptions set
26        forth in subsection (b) of this Section. The terms

 

 

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1        "placed in service" and "qualified property" have the
2        same meanings as described in subsection (h) of Section
3        201 of the Illinois Income Tax Act; or
4            (B) the business intends to establish a new
5        electric generating facility at a designated location
6        in Illinois. "New electric generating facility", for
7        purposes of this Section, means a newly-constructed
8        electric generation plant or a newly-constructed
9        generation capacity expansion at an existing electric
10        generation plant, including the transmission lines and
11        associated equipment that transfers electricity from
12        points of supply to points of delivery, and for which
13        such new foundation construction commenced not sooner
14        than July 1, 2001. Such facility shall be designed to
15        provide baseload electric generation and shall operate
16        on a continuous basis throughout the year; and (i)
17        shall have an aggregate rated generating capacity of at
18        least 1,000 megawatts for all new units at one site if
19        it uses natural gas as its primary fuel and foundation
20        construction of the facility is commenced on or before
21        December 31, 2004, or shall have an aggregate rated
22        generating capacity of at least 400 megawatts for all
23        new units at one site if it uses coal or gases derived
24        from coal as its primary fuel and shall support the
25        creation of at least 150 new Illinois coal mining jobs,
26        or (ii) shall be funded through a federal Department of

 

 

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1        Energy grant before December 31, 2010 and shall support
2        the creation of Illinois coal-mining jobs, or (iii)
3        shall use coal gasification or integrated
4        gasification-combined cycle units that generate
5        electricity or chemicals, or both, and shall support
6        the creation of Illinois coal-mining jobs. The
7        business must certify in writing that the investments
8        necessary to establish a new electric generating
9        facility would not be placed in service and the job
10        creation in the case of a coal-fueled plant would not
11        occur without the tax credits and exemptions set forth
12        in subsection (b-5) of this Section. The term "placed
13        in service" has the same meaning as described in
14        subsection (h) of Section 201 of the Illinois Income
15        Tax Act; or
16            (B-5) the business intends to establish a new
17        gasification facility at a designated location in
18        Illinois. As used in this Section, "new gasification
19        facility" means a newly constructed coal gasification
20        facility that generates chemical feedstocks or
21        transportation fuels derived from coal (which may
22        include, but are not limited to, methane, methanol, and
23        nitrogen fertilizer), that supports the creation or
24        retention of Illinois coal-mining jobs, and that
25        qualifies for financial assistance from the Department
26        before December 31, 2010. A new gasification facility

 

 

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1        does not include a pilot project located within
2        Jefferson County or within a county adjacent to
3        Jefferson County for synthetic natural gas from coal;
4        or
5            (C) the business intends to establish production
6        operations at a new coal mine, re-establish production
7        operations at a closed coal mine, or expand production
8        at an existing coal mine at a designated location in
9        Illinois not sooner than July 1, 2001; provided that
10        the production operations result in the creation of 150
11        new Illinois coal mining jobs as described in
12        subdivision (a)(3)(B) of this Section, and further
13        provided that the coal extracted from such mine is
14        utilized as the predominant source for a new electric
15        generating facility. The business must certify in
16        writing that the investments necessary to establish a
17        new, expanded, or reopened coal mine would not be
18        placed in service and the job creation would not occur
19        without the tax credits and exemptions set forth in
20        subsection (b-5) of this Section. The term "placed in
21        service" has the same meaning as described in
22        subsection (h) of Section 201 of the Illinois Income
23        Tax Act; or
24            (D) the business intends to construct new
25        transmission facilities or upgrade existing
26        transmission facilities at designated locations in

 

 

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1        Illinois, for which construction commenced not sooner
2        than July 1, 2001. For the purposes of this Section,
3        "transmission facilities" means transmission lines
4        with a voltage rating of 115 kilovolts or above,
5        including associated equipment, that transfer
6        electricity from points of supply to points of delivery
7        and that transmit a majority of the electricity
8        generated by a new electric generating facility
9        designated as a High Impact Business in accordance with
10        this Section. The business must certify in writing that
11        the investments necessary to construct new
12        transmission facilities or upgrade existing
13        transmission facilities would not be placed in service
14        without the tax credits and exemptions set forth in
15        subsection (b-5) of this Section. The term "placed in
16        service" has the same meaning as described in
17        subsection (h) of Section 201 of the Illinois Income
18        Tax Act; or
19            (E) the business intends to establish a new wind
20        power facility at a designated location in Illinois.
21        For purposes of this Section, "new wind power facility"
22        means a newly constructed electric generation
23        facility, or a newly constructed expansion of an
24        existing electric generation facility, placed in
25        service on or after July 1, 2009, that generates
26        electricity using wind energy devices, and such

 

 

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1        facility shall be deemed to include all associated
2        transmission lines, substations, and other equipment
3        related to the generation of electricity from wind
4        energy devices. For purposes of this Section, "wind
5        energy device" means any device, with a nameplate
6        capacity of at least 0.5 megawatts, that is used in the
7        process of converting kinetic energy from the wind to
8        generate electricity; or and
9            (F) the business intends to make a minimum
10        investment of $3,000,000 in titanium powdered metals
11        manufacturing which will be placed in service in
12        qualified property and intends to create or retain a
13        minimum of 15 full-time equivalent jobs in titanium
14        powdered metals manufacturing at a location in
15        Illinois; the business must certify in writing that the
16        investments would not be placed in service in qualified
17        property and the job creation or job retention would
18        not occur without the tax credits and exemptions set
19        forth in subsection (b) of this Section. The terms
20        "placed in service" and "qualified property" have the
21        same meanings as described in subsection (h) of Section
22        201 of the Illinois Income Tax Act; and
23        (4) no later than 90 days after an application is
24    submitted, the Department shall notify the applicant of the
25    Department's determination of the qualification of the
26    proposed High Impact Business under this Section.

 

 

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1    (b) Businesses designated as High Impact Businesses
2pursuant to subdivision (a)(3)(A) of this Section shall qualify
3for the credits and exemptions described in the following Acts:
4Section 9-222 and Section 9-222.1A of the Public Utilities Act,
5subsection (h) of Section 201 of the Illinois Income Tax Act,
6and Section 1d of the Retailers' Occupation Tax Act; provided
7that these credits and exemptions described in these Acts shall
8not be authorized until the minimum investments set forth in
9subdivision (a)(3)(A) of this Section have been placed in
10service in qualified properties and, in the case of the
11exemptions described in the Public Utilities Act and Section 1d
12of the Retailers' Occupation Tax Act, the minimum full-time
13equivalent jobs or full-time jobs set forth in subdivision
14(a)(3)(A) of this Section have been created or retained.
15Businesses designated as High Impact Businesses under this
16Section shall also qualify for the exemption described in
17Section 5l of the Retailers' Occupation Tax Act. The credit
18provided in subsection (h) of Section 201 of the Illinois
19Income Tax Act shall be applicable to investments in qualified
20property as set forth in subdivision (a)(3)(A) of this Section.
21    (b-5) Businesses designated as High Impact Businesses
22pursuant to subdivisions (a)(3)(B), (a)(3)(B-5), (a)(3)(C),
23and (a)(3)(D) of this Section shall qualify for the credits and
24exemptions described in the following Acts: Section 51 of the
25Retailers' Occupation Tax Act, Section 9-222 and Section
269-222.1A of the Public Utilities Act, and subsection (h) of

 

 

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1Section 201 of the Illinois Income Tax Act; however, the
2credits and exemptions authorized under Section 9-222 and
3Section 9-222.1A of the Public Utilities Act, and subsection
4(h) of Section 201 of the Illinois Income Tax Act shall not be
5authorized until the new electric generating facility, the new
6gasification facility, the new transmission facility, or the
7new, expanded, or reopened coal mine is operational, except
8that a new electric generating facility whose primary fuel
9source is natural gas is eligible only for the exemption under
10Section 5l of the Retailers' Occupation Tax Act.
11    (b-6) Businesses designated as High Impact Businesses
12pursuant to subdivision (a)(3)(E) of this Section shall qualify
13for the exemptions described in Section 5l of the Retailers'
14Occupation Tax Act; any business so designated as a High Impact
15Business being, for purposes of this Section, a "Wind Energy
16Business".
17    (c) High Impact Businesses located in federally designated
18foreign trade zones or sub-zones are also eligible for
19additional credits, exemptions and deductions as described in
20the following Acts: Section 9-221 and Section 9-222.1 of the
21Public Utilities Act; and subsection (g) of Section 201, and
22Section 203 of the Illinois Income Tax Act.
23    (d) Except for businesses contemplated under subdivision
24(a)(3)(E) of this Section, existing Illinois businesses which
25apply for designation as a High Impact Business must provide
26the Department with the prospective plan for which 1,500

 

 

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1full-time jobs would be eliminated in the event that the
2business is not designated.
3    (e) Except for new wind power facilities contemplated under
4subdivision (a)(3)(E) of this Section, new proposed facilities
5which apply for designation as High Impact Business must
6provide the Department with proof of alternative non-Illinois
7sites which would receive the proposed investment and job
8creation in the event that the business is not designated as a
9High Impact Business.
10    (f) Except for businesses contemplated under subdivision
11(a)(3)(E) of this Section, in the event that a business is
12designated a High Impact Business and it is later determined
13after reasonable notice and an opportunity for a hearing as
14provided under the Illinois Administrative Procedure Act, that
15the business would have placed in service in qualified property
16the investments and created or retained the requisite number of
17jobs without the benefits of the High Impact Business
18designation, the Department shall be required to immediately
19revoke the designation and notify the Director of the
20Department of Revenue who shall begin proceedings to recover
21all wrongfully exempted State taxes with interest. The business
22shall also be ineligible for all State funded Department
23programs for a period of 10 years.
24    (g) The Department shall revoke a High Impact Business
25designation if the participating business fails to comply with
26the terms and conditions of the designation. However, the

 

 

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1penalties for new wind power facilities or Wind Energy
2Businesses for failure to comply with any of the terms or
3conditions of the Illinois Prevailing Wage Act shall be only
4those penalties identified in the Illinois Prevailing Wage Act,
5and the Department shall not revoke a High Impact Business
6designation as a result of the failure to comply with any of
7the terms or conditions of the Illinois Prevailing Wage Act in
8relation to a new wind power facility or a Wind Energy
9Business.
10    (h) Prior to designating a business, the Department shall
11provide the members of the General Assembly and Commission on
12Government Forecasting and Accountability with a report
13setting forth the terms and conditions of the designation and
14guarantees that have been received by the Department in
15relation to the proposed business being designated.
16(Source: P.A. 95-18, eff. 7-30-07; 96-28, eff. 7-1-09.)
 
17    Section 99. Effective date. This Act takes effect upon
18becoming law.