Rep. John E. Bradley

Filed: 5/30/2013

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 20

2    AMENDMENT NO. ______. Amend Senate Bill 20, AS AMENDED, by
3replacing everything after the enacting clause with the
4following:
 
5
"ARTICLE 1.
6
SHORT TITLE

 
7    Section 1-1. Short title. This Act may be cited as the
8Economic Development Act of 2013.
 
9
ARTICLE 2.
10
PUBLIC-PRIVATE AGREEMENTS FOR THE SOUTH SUBURBAN AIRPORT ACT

 
11    Section 2-1. Short title. This Article may be cited as the
12Public-Private Agreements for the South Suburban Airport Act.
13References in this Article to "this Act" mean this Article.
 

 

 

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1    Section 2-5. Legislative findings.
2    (a) Providing facilities for air travel to and from the
3State of Illinois through the South Suburban Airport is
4essential for the health and welfare of the people of the State
5of Illinois and economic development of the State of Illinois.
6    (b) Airport development has significant regional impacts
7with regard to economic development, public infrastructure
8requirements, traffic, noise, and other concerns.
9    (c) The South Suburban Airport will promote development and
10investment in the State of Illinois and serve as a critical
11transportation hub in the region.
12    (d) Existing requirements of procurement and financing of
13airports by the Department impose limitations on the methods by
14which airports may be developed and operated within the State.
15    (e) Public-private agreements between the State of
16Illinois and one or more private entities to develop, finance,
17construct, manage, operate, maintain, or any combination
18thereof, the South Suburban Airport have the potential of
19maximizing value and benefit to the People of the State of
20Illinois and the public at large.
21    (f) Public-private agreements may enable the South
22Suburban Airport to be developed, financed, constructed,
23managed, operated, and maintained in an entrepreneurial and
24business-like manner.
25    (g) In the event that the State of Illinois enters into one
26or more public-private agreements to develop, finance,

 

 

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1construct, manage, operate, or maintain the South Suburban
2Airport, the private parties to the agreements should be
3accountable to the People of Illinois through a comprehensive
4system of oversight, regulation, auditing, and reporting.
5    (h) It is the intent of this Act to use Illinois design
6professionals, construction companies, and workers to the
7greatest extent permitted by law by offering them the right to
8compete for this work.
9    (i) It is the intent of this Act for the Department to
10collaborate with affected municipalities, counties, citizens,
11elected officials, interest groups, and other stakeholders to
12foster economic development around the South Suburban Airport
13and the region, and to insure that the communities near the
14South Suburban Airport have an ongoing opportunity to provide
15input on the development and operation the South Suburban
16Airport.
 
17    Section 2-10. Definitions. As used in this Act:
18    "Agreement" means a public-private agreement.
19    "Airport" means a facility for all types of air service,
20including, without limitation, landing fields, taxiways,
21aprons, runways, runway clear areas, heliports, hangars,
22aircraft service facilities, approaches, navigational aids,
23air traffic control facilities, terminals, inspection
24facilities, security facilities, parking, internal transit
25facilities, fueling facilities, cargo handling facilities,

 

 

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1concessions, rapid transit and roadway access, land and
2interests in land, public waters, submerged land under public
3waters and reclaimed land located on previously submerged land
4under public waters, and all other property and appurtenances
5necessary or useful for development, ownership, and operation
6of any such facilities. "Airport" includes commercial or
7industrial facilities related to the functioning of the airport
8or to providing services to users of the airport.
9    "Contractor" means a person that has been selected to enter
10or has entered into a public-private agreement with the
11Department on behalf of the State for the development,
12financing, construction, management, or operation of the South
13Suburban Airport under this Act.
14    "Department" means the Illinois Department of
15Transportation.
16    "Inaugural airport" means all airport facilities,
17equipment, property, and appurtenances necessary or useful to
18the development and operation of the South Suburban Airport
19that are constructed, developed, installed, or acquired as of
20the commencement of public operations of the South Suburban
21Airport.
22    "Inaugural airport boundary" means the property limits of
23the inaugural airport as determined by the Department, as may
24be adjusted and reconfigured from time to time.
25    "Maintain" or "maintenance" includes ordinary maintenance,
26repair, rehabilitation, capital maintenance, maintenance

 

 

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1replacement, and any other categories of maintenance that may
2be designated by the Department.
3    "Metropolitan planning organization" means a metropolitan
4planning organization designated under 23 U.S.C. Section 134.
5    "Offeror" means a person that responds to a request for
6proposals under this Act.
7    "Operate" or "operation" means to do one or more of the
8following: maintain, improve, equip, modify, or otherwise
9operate.
10    "Person" means any individual, firm, association, joint
11venture, partnership, estate, trust, syndicate, fiduciary,
12corporation, or any other legal entity, group, or combination
13thereof.
14    "Public-private agreement" means an agreement or contract
15between the Department on behalf of the State and all
16schedules, exhibits, and attachments thereto, entered into
17pursuant to a competitive request for proposals process
18governed by this Act, for the development, financing,
19construction, management, or operation of the South Suburban
20Airport under this Act.
21    "Revenues" means all revenues, including any combination
22of, but not limited to: income; user fees; earnings; interest;
23lease payments; allocations; moneys from the federal
24government, the State, and units of local government, including
25but not limited to federal, State, and local appropriations,
26grants, loans, lines of credit, and credit guarantees; bond

 

 

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1proceeds; equity investments; service payments; or other
2receipts arising out of or in connection with the financing,
3development, construction, management, or operation of the
4South Suburban Airport.
5    "State" means the State of Illinois.
6    "Secretary" means the Secretary of the Illinois Department
7of Transportation.
8    "South Suburban Airport" means the airport to be developed
9on a site located in Will County and approved by the Federal
10Aviation Administration in the Record of Decision for Tier 1:
11FAA Site Approval And Land Acquisition By The State Of
12Illinois, Proposed South Suburban Airport, Will County,
13Illinois, dated July 2002, and all property within the
14inaugural airport boundary and the ultimate airport boundary.
15    "Ultimate airport boundary" means the development and
16property limits of the South Suburban Airport beyond the
17inaugural airport boundary as determined by the Department, as
18may be adjusted and reconfigured from time to time.
19    "Unit of local government" has the meaning ascribed to that
20term in Article VII, Section 1 of the Constitution of the State
21of Illinois, and, for purposes of this Act, includes school
22districts.
23    "User fees" means the rates, fees, or other charges imposed
24by the State or the contractor for use of all or a portion of
25the South Suburban Airport under a public-private agreement.
 

 

 

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1    Section 2-15. General airport powers.
2    (a) The Department has the power to plan, develop, secure
3permits, licenses, and approvals for, acquire, develop,
4construct, equip, own, and operate the South Suburban Airport.
5The Department also has the power to own, operate, acquire
6facilities for, construct, improve, repair, maintain,
7renovate, and expand the South Suburban Airport, including any
8facilities located on the site of the South Suburban Airport
9for use by any individual or entity other than the Department.
10The development of the South Suburban Airport shall also
11include all land, highways, waterways, mass transit
12facilities, and other infrastructure that, in the
13determination of the Department, are necessary or appropriate
14in connection with the development or operation of the South
15Suburban Airport. The development of the South Suburban Airport
16also includes acquisition and development of any land or
17facilities for (i) relocation of persons, including providing
18replacement housing or facilities for persons and entities
19displaced by that development, (ii) protecting or reclaiming
20the environment with respect to the South Suburban Airport,
21(iii) providing substitute or replacement property or
22facilities, including without limitation, for areas of
23recreation, conservation, open space, and wetlands, (iv)
24providing navigational aids, or (v) utilities to serve the
25airport, whether or not located on the site of the South
26Suburban Airport.

 

 

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1    (b) The Department shall have the authority to undertake
2and complete all ongoing projects related to the South Suburban
3Airport, including the South Suburban Airport Master Plan, and
4assisting the Federal Aviation Administration in preparing and
5approving the Environmental Impact Statement and Record of
6Decision.
7    (c) The Department has the power to enter into all
8contracts useful for carrying out its purposes and powers,
9including, without limitation, public-private agreements
10pursuant to the provisions of this Act; leases of any of its
11property or facilities, use agreements with airlines or other
12airport users relating to the South Suburban Airport,
13agreements with South Suburban Airport concessionaires, and
14franchise agreements for use of or access to South Suburban
15Airport facilities.
16    (d) The Department has the power to apply to the proper
17authorities of the United States, the State of Illinois, and
18other governmental entities, as permitted or authorized by
19applicable law, to obtain any licenses, approvals, or permits
20reasonably necessary to achieve the purposes of this Act. All
21applications to the Federal Aviation Administration, or any
22successor agency, shall be made by the Department.
23    (e) The Department may take all steps consistent with
24applicable laws to maximize funding for the costs of the South
25Suburban Airport from grants by the Federal Aviation
26Administration or any successor agency, or any other federal

 

 

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1governmental agency.
2    (f) The Department has the power to apply to the proper
3authorities of the United States pursuant to appropriate law
4for permission to establish, operate, maintain, and lease
5foreign trade zones and sub-zones within the areas of the South
6Suburban Airport and to establish, operate, maintain, and lease
7foreign trade zones and sub-zones.
8    (g) The Department may publicize, advertise, and promote
9the activities of the South Suburban Airport, including, to
10make known the advantages, facilities, resources, products,
11attractions, and attributes of the South Suburban Airport.
12    (h) The Department may, at any time, acquire any land, any
13interests in land, other property, and interests in property
14needed for the South Suburban Airport or necessary to carry out
15the Department's powers and functions under this Act, including
16by exercise of the power of eminent domain pursuant to Section
172-100 of this Act. The Department shall also have the power to
18dispose of any such lands, interests, and property upon terms
19it deems appropriate.
20    (i) The Department may adopt any reasonable rules for the
21administration of this Act in accordance with the Illinois
22Administrative Procedure Act.
 
23    Section 2-20. Public-private agreement authorized.
24    (a) Notwithstanding any provision of law to the contrary,
25the Department may, on behalf of the State, and pursuant to a

 

 

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1competitive request for proposals process governed by Section
22-30 of this Act, enter into one or more public-private
3agreements with one or more contractors to develop, finance,
4construct, manage, operate, or maintain, or any combination
5thereof, the South Suburban Airport. Pursuant to those
6agreements, the contractors may receive the right to certain
7revenues including user fees in consideration of the payment of
8moneys to the State for that right.
9    (b) Before taking any action in connection with the
10development, financing, operation, or maintenance of the South
11Suburban Airport that is not authorized by an interim agreement
12under Section 2-40 of this Act, a contractor shall enter into a
13public-private agreement.
14    (c) The term of a public-private agreement, including all
15extensions, shall be no more than 75 years.
16    (d) The term of a public-private agreement may be extended,
17but only if the extension is specifically authorized by the
18General Assembly by law.
 
19    Section 2-25. Prequalification to enter into
20public-private agreements. The Department may establish a
21process for prequalification of offerors. If the Department
22creates a prequalification process, it shall: (i) provide a
23public notice of the prequalification at least 30 days before
24the date on which applications are due; (ii) set forth
25requirements and evaluation criteria in order to become

 

 

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1prequalified; (iii) determine which offerors that have
2submitted prequalification applications, if any, meet the
3requirements and evaluation criteria; and (iv) allow only those
4offerors that have been prequalified to respond to the request
5for proposals.
 
6    Section 2-30. Request for proposals process to enter into
7public-private agreements.
8    (a) Notwithstanding any provisions of the Illinois
9Procurement Code, the Department, on behalf of the State, shall
10select a contractor through a competitive request for proposals
11process governed by Section 2-30 of this Act. The Department
12will consult with the chief procurement officer for
13construction or construction-related activities designated
14pursuant to clause (2) Section 1-15.15 of the Illinois
15Procurement Code on the competitive request for proposals
16process, and the Secretary will determine, in consultation with
17the chief procurement officer, which procedures to adopt and
18apply to the competitive request for proposal process in order
19to ensure an open, transparent, and efficient process that
20accomplishes the purposes of this Act.
21    (b) The competitive request for proposals process shall, at
22a minimum, solicit statements of qualification and proposals
23from offerors.
24    (c) The competitive request for proposals process shall, at
25a minimum, take into account the following criteria:

 

 

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1        (1) the offeror's plans for the South Suburban Airport
2    project;
3        (2) the offeror's current and past business practices;
4        (3) the offeror's poor or inadequate past performance
5    in developing, financing, constructing, managing, or
6    operating airports or other public assets;
7        (4) the offeror's ability to meet the utilization goals
8    for business enterprises established in the Business
9    Enterprise for Minorities, Females, and Persons with
10    Disabilities Act;
11        (5) the offeror's ability to comply with Section 2-105
12    of the Illinois Human Rights Act; and
13        (6) the offeror's plans to comply with the Business
14    Enterprise for Minorities, Females, and Persons with
15    Disabilities Act and Section 2-105 of the Illinois Human
16    Rights Act.
17    (d) The Department shall retain the services of an advisor
18or advisors with significant experience in the development,
19financing, construction, management, or operation of public
20assets to assist in the preparation of the request for
21proposals.
22    (e) The Department shall not include terms in the request
23for proposals that provide an advantage, whether directly or
24indirectly, to any contractor presently providing goods,
25services, or equipment to the Department.
26    (f) The Department shall select one or more offerors as

 

 

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1finalists. The Department shall submit the offeror's
2statements of qualification and proposals to the Commission on
3Government Forecasting and Accountability and the Procurement
4Policy Board, which shall, within 30 days after the submission,
5complete a review of the statements of qualification and
6proposals and, jointly or separately, report on, at a minimum,
7the satisfaction of the criteria contained in the request for
8proposals, the qualifications of the offerors, and the value of
9the proposals to the State. The Department shall not select an
10offeror as the contractor for the South Suburban Airport
11project until it has received and considered the findings of
12the Commission on Government Forecasting and Accountability
13and the Procurement Policy Board as set forth in their
14respective reports.
15    (g) Before awarding a public-private agreement to an
16offeror, the Department shall schedule and hold a public
17hearing or hearings on the proposed public-private agreement
18and publish notice of the hearing or hearings at least 7 days
19before the hearing. The notice shall include the following:
20        (1) the date, time, and place of the hearing and the
21    address of the Department;
22        (2) the subject matter of the hearing;
23        (3) a description of the agreement that may be awarded;
24        and
25        (4) the recommendation that has been made to select an
26        offeror as the contractor for the South Suburban

 

 

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1        Airport project.
2    At the hearing, the Department shall allow the public to be
3heard on the subject of the hearing.
4    (h) After the procedures required in this Section have been
5completed, the Department shall make a determination as to
6whether the offeror should be designated as the contractor for
7the South Suburban Airport project and shall submit the
8decision to the Governor and to the Governor's Office of
9Management and Budget. After review of the Department's
10determination, the Governor may accept or reject the
11determination. If the Governor accepts the determination of the
12Department, the Governor shall designate the offeror for the
13South Suburban Airport project.
 
14    Section 2-35. Provisions of the public-private agreement.
15    (a) The public-private agreement shall include all of the
16following:
17        (1) the term of the public-private agreement that is
18    consistent with Section 2-20 of this Act;
19        (2) the powers, duties, responsibilities, obligations,
20    and functions of the Department and the contractor;
21        (3) compensation or payments to the Department;
22        (4) compensation or payments to the contractor;
23        (5) a provision specifying that the Department has:
24            (A) ready access to information regarding the
25        contractor's powers, duties, responsibilities,

 

 

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1        obligations, and functions under the public-private
2        agreement;
3            (B) the right to demand and receive information
4        from the contractor concerning any aspect of the
5        contractor's powers, duties, responsibilities,
6        obligations, and functions under the public-private
7        agreement; and
8            (C) the authority to direct or countermand
9        decisions by the contractor at any time;
10        (6) a provision imposing an affirmative duty on the
11    contractor to provide the Department with any information
12    the Department reasonably would want to know or would need
13    to know to enable the Department to exercise its powers,
14    carry out its duties, responsibilities, and obligations,
15    and perform its functions under this Act or the
16    public-private agreement or as otherwise required by law;
17        (7) a provision requiring the contractor to provide the
18    Department with advance written notice of any decision that
19    bears significantly on the public interest so the
20    Department has a reasonable opportunity to evaluate and
21    countermand that decision under this Section;
22        (8) a requirement that the Department monitor and
23    oversee the contractor's practices and take action that the
24    Department considers appropriate to ensure that the
25    contractor is in compliance with the terms of the
26    public-private agreement;

 

 

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1        (9) the authority of the Department to enter into
2    contracts with third parties pursuant to Section 2-65 of
3    this Act;
4        (10) a provision governing the contractor's authority
5    to negotiate and execute subcontracts with third parties;
6        (11) the authority of the contractor to impose user
7    fees and the amounts of those fees;
8        (12) a provision governing the deposit and allocation
9    of revenues including user fees;
10        (13) a provision governing rights to real and personal
11    property of the State, the Department, the contractor, and
12    other third parties;
13        (14) a provision stating that the contractor shall,
14    pursuant to Section 2-85 of this Act, pay the costs of an
15    independent audit if the construction costs under the
16    contract exceed $50,000,000;
17        (15) a provision regarding the implementation and
18    delivery of a comprehensive system of internal audits;
19        (16) a provision regarding the implementation and
20    delivery of reports, which shall include a requirement that
21    the contractor file with the Department, at least on an
22    annual basis, financial statements containing information
23    required by generally accepted accounting principles
24    (GAAP);
25        (17) procedural requirements for obtaining the prior
26    approval of the Department when rights that are the subject

 

 

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1    of the agreement, including, but not limited to development
2    rights, construction rights, property rights, and rights
3    to certain revenues, are sold, assigned, transferred, or
4    pledged as collateral to secure financing or for any other
5    reason;
6        (18) grounds for termination of the agreement by the
7    Department or the contractor and a restatement of the
8    Department's rights under Section 2-45 of this Act;
9        (19) a requirement that the contractor enter into a
10    project labor agreement under Section 2-120 of this Act;
11        (20) a provision stating that construction contractors
12    shall comply with Section 2-120 of this Act;
13        (21) timelines, deadlines, and scheduling;
14        (22) review of plans, including development,
15    financing, construction, management, operations, or
16    maintenance plans, by the Department;
17        (23) a provision regarding inspections by the
18    Department, including inspections of construction work and
19    improvements;
20        (24) rights and remedies of the Department in the event
21    that the contractor defaults or otherwise fails to comply
22    with the terms of the public-private agreement;
23        (25) a code of ethics for the contractor's officers and
24    employees; and
25        (26) procedures for amendment to the agreement.
26    (b) The public-private agreement may include any or all of

 

 

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1the following:
2        (1) a provision regarding the extension of the
3    agreement that is consistent with Section 2-20 of this Act;
4        (2) provisions leasing to the contractor all or any
5    portion of the South Suburban Airport, provided that the
6    lease may not extend beyond the term of the public-private
7    agreement.
8        (3) cash reserves requirements;
9        (4) delivery of performance and payment bonds or other
10    performance security in a form and amount that is
11    satisfactory to the Department;
12        (5) maintenance of public liability insurance;
13        (6) maintenance of self-insurance;
14        (7) provisions governing grants and loans, pursuant to
15    which the Department may agree to make grants or loans for
16    the development, financing, construction, management, or
17    operation of the South Suburban Airport project from time
18    to time from amounts received from the federal government
19    or any agency or instrumentality of the federal government
20    or from any State or local agency;
21        (8) reimbursements to the Department for work
22    performed and goods, services, and equipment provided by
23    the Department;
24        (9) provisions allowing the Department to submit any
25    contractual disputes with the contractor relating to the
26    public-private agreement to non-binding alternative

 

 

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1    dispute resolution proceedings; and
2        (10) any other terms, conditions, and provisions
3    acceptable to the Department that the Department deems
4    necessary and proper and in the public interest.
 
5    Section 2-40. Interim agreements.
6    (a) Prior to or in connection with the negotiation of the
7public-private agreement, the Department may enter into an
8interim agreement with the contractor.
9    (b) The interim agreement may not authorize the contractor
10to perform construction work prior to the execution of the
11public-private agreement.
12    (c) The interim agreement may include any or all of the
13following:
14        (1) timelines, deadlines, and scheduling;
15        (2) compensation including the payment of costs and
16    fees in the event the Department terminates the interim
17    agreement or declines to proceed with negotiation of the
18    public-private agreement;
19        (3) a provision governing the contractor's authority
20    to commence activities related to the South Suburban
21    Airport project including, but not limited, to project
22    planning, advance property acquisition, design and
23    engineering, environmental analysis and mitigation,
24    surveying, conducting studies including revenue and
25    transportation studies, and ascertaining the availability

 

 

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1    of financing;
2        (4) procurement procedures;
3        (5) a provision governing rights to real and personal
4    property of the State, the Department, the contractor, and
5    other third parties;
6        (6) all other terms, conditions, and provisions
7    acceptable to the Department that the Department deems
8    necessary and proper and in the public interest.
9    (d) The Department may enter into one or more interim
10agreements with one or more contractors if the Department
11determines in writing that it is in the public interest to do
12so.
 
13    Section 2-45. Termination of the public-private agreement.
14The Department may terminate a public-private agreement or
15interim agreement entered into by the Department under Section
162-40 of this Act if the contractor or any executive employee of
17the contractor is found guilty of any criminal offense related
18to the conduct of its business or the regulation thereof in any
19jurisdiction. For purposes of this Section, an "executive
20employee" is the President, Chairman, Chief Executive Officer,
21or Chief Financial Officer; any employee with executive
22decision-making authority over the long-term or day-to-day
23affairs of the contractor; or any employee whose compensation
24or evaluation is determined in whole or in part by the award of
25the public-private agreement.
 

 

 

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1    Section 2-50. Public-private agreement proceeds. After the
2payment of all transaction costs, including payments for legal,
3accounting, financial, consultation, and other professional
4services, all moneys received by the State as compensation for
5the public-private agreement shall be deposited into the South
6Suburban Airport Improvement Fund, which is hereby created as a
7special fund in the State treasury. Expenditures may be made
8from the South Suburban Airport Improvement Fund only in the
9manner as appropriated by the General Assembly by law.
 
10    Section 2-55. User fees. No user fees may be imposed by the
11contractor except as set forth in the public-private agreement.
 
12    Section 2-60. Selection of professional design firms.
13Notwithstanding any provision of law to the contrary, the
14selection of professional design firms by the Department for
15South Suburban Airport projects, other than the selection of a
16contractor for a public-private agreement or interim
17agreement, shall comply with the Architectural, Engineering,
18and Land Surveying Qualifications Based Selection Act.
 
19    Section 2-65. Other contracts. Except as otherwise
20provided in a public-private agreement entered into pursuant to
21this Act, the Department may, pursuant to the Illinois
22Procurement Code and its rules, award contracts for goods,

 

 

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1services, or equipment, or lease all or any portion of the
2South Suburban Airport.
 
3    Section 2-70. Planning for the South Suburban Airport
4project. The South Suburban Airport project shall be subject to
5all applicable planning requirements otherwise required by
6law, including land use planning, regional planning,
7transportation planning, and environmental compliance
8requirements.
 
9    Section 2-75. Illinois Department of Transportation
10reporting requirements and information requests.
11    (a) The Department shall submit written progress reports to
12the Procurement Policy Board and the General Assembly on the
13South Suburban Airport project. These progress reports shall be
14provided quarterly prior to the commencement of the
15construction of the South Suburban Airport, and shall be
16provided monthly thereafter until construction is complete.
17The reports shall include the status of any public-private
18agreements or other contracting and any ongoing or completed
19studies. The Procurement Policy Board may determine the format
20for the written progress reports.
21    (b) Upon request, the Department shall appear and testify
22before the Procurement Policy Board and produce information
23requested by the Procurement Policy Board.
24    (c) At least 30 days prior to the beginning of the

 

 

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1Department's fiscal year, the Department shall prepare an
2annual written progress report on the South Suburban Airport
3project. The report shall include the status of any
4public-private agreements or other contracting and any ongoing
5or completed studies. The report shall be delivered to the
6Procurement Policy Board and each county, municipality, and
7metropolitan planning organization whose territory includes or
8lies within 5 miles from the ultimate airport boundary.
 
9    Section 2-80. Illinois Department of Transportation
10publication requirements.
11    (a) The Department shall publish a notice of the execution
12of the public-private agreement on its website and in a
13newspaper of general circulation within the county or counties
14whose territory includes or lies within 5 miles of the ultimate
15airport boundary.
16    (b) The Department shall publish the full text of the
17public-private agreement on its website.
 
18    Section 2-85. Independent audits. If the public-private
19agreement provides for the construction of all or part of the
20South Suburban Airport project and the estimated construction
21costs under the public-private agreement exceed $50,000,000,
22the Department shall also require the contractor to pay the
23costs for an independent audit of any and all cost estimates
24associated with the public-private agreement as well as a

 

 

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1review of all public costs and potential liabilities to which
2taxpayers could be exposed (including improvements to other
3transportation facilities that may be needed as a result of the
4public-private agreement, failure by the contractor to
5reimburse the Department for services provided, and potential
6risk and liability in the event of default on the agreement or
7default on other types of financing). The independent audit
8shall be conducted by an independent consultant selected by the
9Department.
 
10    Section 2-90. Establishment of planning boundaries.
11    (a) The Department shall establish and provide public
12notice of the approximate location of the inaugural airport
13boundary and the ultimate airport boundary to inform the public
14and prevent costly and conflicting development of the land
15involved. The Department shall hold a public hearing when it
16desires to formally provide public notice of the approximate
17locations of the inaugural airport boundary and the ultimate
18airport boundary. The hearing shall be held in Will County and
19notice of the hearing shall be published in a newspaper or
20newspapers of general circulation in Will County. Any
21interested person or his representative shall be heard. The
22Department shall evaluate the testimony given at the hearing.
23The Department shall make a survey and prepare maps showing the
24location of the inaugural airport boundary and the ultimate
25airport boundary. The maps shall show the property lines and

 

 

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1owners of record of all land within the inaugural airport
2boundary and the ultimate airport boundary and all other
3pertinent information. Approval of the maps with any changes
4resulting from the hearing shall be indicated in the record of
5the hearing and a notice of the approval and a copy of the maps
6shall be filed in the office of the recorder for Will County.
7Public notice of the approval and filing shall be given in
8newspapers of general circulation in Will County and shall be
9served by registered mail within 60 days thereafter on all
10owners of record of the land needed for future additions.
11    (b) The Department may approve changes in the maps of the
12inaugural airport boundary and the ultimate airport boundary
13from time to time. The changes shall be filed and notice given
14in the manner provided for the original maps. After the maps
15are filed and notice thereof given to the owners of record of
16the land needed for future additions, no one shall incur
17development costs or place improvements in, upon, or under the
18land involved, nor rebuild, alter, or add to any existing
19structure without first giving 60 days notice by registered
20mail to the Department. This prohibition shall not apply to any
21normal or emergency repairs to existing structures. The
22Department has 45 days after receipt of that notice to inform
23the owner of the Department's intention to acquire the land
24involved. After informing the owner, the Department shall have
25120 days to acquire the land by purchase or to initiate action
26to acquire the land through the exercise of the right of

 

 

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1eminent domain. When the land is acquired by the State no
2compensation shall be allowed for any construction,
3alteration, or addition in violation of this Section unless the
4Department has failed to acquire the land by purchase or has
5abandoned an eminent domain proceeding initiated under the
6provisions of this paragraph. Any land needed for modifications
7to the inaugural airport boundary or the ultimate airport
8boundary may be acquired at any time by the State. The time of
9determination of the value of the property to be taken under
10this Section for additions to the South Suburban Airport shall
11be the date of the actual taking, if the property is acquired
12by purchase, or the date of the filing of a complaint for
13condemnation or as established by Section 10-5-60 of the
14Eminent Domain Act, if the property is acquired through the
15exercise of the right of eminent domain, rather than the date
16when the maps of the of the inaugural airport boundary or the
17ultimate airport boundary were filed of record.
 
18    Section 2-95. Relocation. The Department has the power to
19provide for the relocation of all persons and entities
20displaced by the development of the South Suburban Airport.
21Except when federal funds are available for the payment of
22direct financial assistance to persons displaced by the
23acquisition of their real property, the Department shall pay to
24displaced persons reimbursement for their reasonable
25relocation costs, determined in the same manner as under the

 

 

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1federal Uniform Relocation Assistance and Real Property
2Acquisition Policies Act of 1970, and as implemented by rules
3adopted under that Act.
 
4    Section 2-100. Property acquisition.
5    (a) In addition to any other powers the Department may have
6under Sections 72 and 74 of the Illinois Aeronautics Act or any
7other applicable law, and notwithstanding any other law to the
8contrary, the Department may acquire by gift, grant, lease,
9purchase, condemnation, or otherwise, any right, title, or
10interest in any private property, property held in the name of
11or belonging to any public body or unit of government, or any
12property devoted to a public use, or any other rights or
13easements, including any property, rights, or easements owned
14by the State, units of local government, or school districts,
15including forest preserve districts, for purposes related to
16the South Suburban Airport. The powers given to the Department
17under this Section include the power to acquire, by
18condemnation or otherwise, any property used for cemetery
19purposes within or outside of inaugural airport boundary, and
20to require that the cemetery be removed to a different
21location. The powers given to the Department under this Section
22include the power to condemn or otherwise acquire, and to
23convey, substitute property when the Department reasonably
24determines that monetary compensation will not be sufficient or
25practical just compensation for property acquired by the

 

 

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1Department in connection with the South Suburban Airport. The
2acquisition of substitute property is declared to be for public
3use. The powers given by this Section to the Department to
4condemn property include the power of condemnation by
5quick-take under Article 20 of the Eminent Domain Act. Property
6acquired under this Section includes property that the
7Department reasonably determines will be necessary for future
8use, regardless of whether final regulatory or funding
9decisions have been made; provided, however, that quick-take of
10such property is subject to Section 25-5-45 of the Eminent
11Domain Act.
12    (b) With respect to any land acquired or sought to be
13acquired by the Department by condemnation for the South
14Suburban Airport pursuant to the powers granted by Section 72
15or 74 of the Aeronautics Act, the phrase "within the limitation
16of available appropriations" shall be deemed to require that
17the Department have, on the date of filing the condemnation
18complaint, unexpended appropriations equal to the amount of the
19Department's most recent offer to purchase the property.
20    (c) No property owned by the Department may be subject to
21taking by condemnation or otherwise by any unit of local
22government, any other airport authority, or by any agency,
23instrumentality, or political subdivision of the State.
 
24    Section 2-105. Rights of the Illinois Department of
25Transportation upon expiration or termination of the

 

 

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1agreement.
2    (a) Upon the termination or expiration of the
3public-private agreement, including a termination for default,
4the Department shall have the right to take over the South
5Suburban Airport project and to succeed to all of the right,
6title, and interest in the South Suburban Airport project,
7subject to any liens on revenues previously granted by the
8contractor to any person providing financing for the South
9Suburban Airport project.
10    (b) If the Department elects to take over the South
11Suburban Airport project as provided in subsection (a) of this
12Section, the Department may, without limitation, do the
13following:
14        (1) develop, finance, construct, maintain, or operate
15    the project, including through another public-private
16    agreement entered into in accordance with this Act; or
17        (2) impose, collect, retain, and use user fees, if any,
18    for the project.
19    (c) If the Department elects to take over the South
20Suburban Airport project as provided in subsection (a) of this
21Section, the Department may, without limitation, use the
22revenues, if any, for any lawful purpose, including to:
23        (1) make payments to individuals or entities in
24    connection with any financing of the South Suburban Airport
25    project;
26        (2) permit a contractor or third party to receive some

 

 

09800SB0020ham002- 30 -LRB098 04192 HLH 46677 a

1    or all of the revenues under the public-private agreement
2    entered into under this Act;
3        (3) pay development costs of the South Suburban
4    Airport;
5        (4) pay current operation costs of the South Suburban
6    Airport; and
7        (5) pay the contractor for any compensation or payment
8    owing upon termination.
9    (d) All real property acquired as a part of the South
10Suburban Airport shall be held in the name of the State of
11Illinois upon termination of the South Suburban Airport
12project.
13    (e) The full faith and credit of the State or any political
14subdivision of the State or the Department is not pledged to
15secure any financing of the contractor by the election to take
16over the South Suburban Airport project. Assumption of
17development, operation, or both, of the South Suburban Airport
18project does not obligate the State or any political
19subdivision of the State or the Department to pay any
20obligation of the contractor.
 
21    Section 2-110. Standards for the South Suburban Airport
22project. The plans and specifications for the South Suburban
23Airport project shall comply with the following:
24            (1) the Department's standards for other projects
25        of a similar nature or as otherwise provided in the

 

 

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1        public-private agreement;
2            (2) the Professional Engineering Practice Act of
3        1989, the Structural Engineering Practice Act of 1989,
4        the Illinois Architecture Practice Act of 1989, and the
5        Illinois Professional Land Surveyor Act of 1989; and
6            (3) any other applicable State or federal
7        standards.
 
8    Section 2-115. Financial arrangements.
9    (a) The Department may apply for, execute, or endorse
10applications submitted by contractors and other third parties
11to obtain federal, State, or local credit assistance to
12develop, finance, maintain, or operate the South Suburban
13Airport project.
14    (b) The Department may take any action to obtain federal,
15State, or local assistance for the South Suburban Airport
16project that serves the public purpose of this Act and may
17enter into any contracts required to receive the federal
18assistance. The Department may determine that it serves the
19public purpose of this Act for all or any portion of the costs
20of the South Suburban Airport project to be paid, directly or
21indirectly, from the proceeds of a grant or loan, line of
22credit, or loan guarantee made by a local, State, or federal
23government or any agency or instrumentality of a local, State,
24or federal government. This assistance may include, but not be
25limited to, federal credit assistance under the Transportation

 

 

09800SB0020ham002- 32 -LRB098 04192 HLH 46677 a

1Infrastructure Finance and Innovation Act (TIFIA).
2    (c) The Department may agree to make grants or loans for
3the development, financing, construction, management,
4operation , or maintenance of the South Suburban Airport
5project from time to time, from amounts received from the
6federal, State, or local government or any agency or
7instrumentality of the federal, State, or local government.
8    (d) Any financing of the South Suburban Airport project may
9be in the amounts and subject to the terms and conditions
10contained in the public-private agreement.
11    (e) For the purpose of financing the South Suburban Airport
12project, the contractor and the Department may do the
13following:
14        (1) propose to use any and all revenues that may be
15    available to them;
16        (2) enter into grant agreements;
17        (3) access any other funds available to the Department;
18    and
19        (4) accept grants from any public or private agency or
20    entity.
21    (f) For the purpose of financing the South Suburban Airport
22project, public funds may be used, mixed, and aggregated with
23funds provided by or on behalf of the contractor or other
24private entities.
25    (g) For the purpose of financing the South Suburban Airport
26project, the Department is authorized to apply for, execute, or

 

 

09800SB0020ham002- 33 -LRB098 04192 HLH 46677 a

1endorse applications for an allocation of tax-exempt bond
2financing authorization provided by Section 142(m) of the
3United States Internal Revenue Code, as well as financing
4available under any other federal law or program.
5    (h) Any bonds, debt, other securities, or other financing
6issued or incurred by the contractor for the purposes of this
7Act shall not be deemed to constitute a debt of the State or
8any political subdivision of the State or a pledge of the faith
9and credit of the State or any political subdivision of the
10State.
 
11    Section 2-120. Labor.
12    (a) The public-private agreement shall require the
13contractor to enter into a project labor agreement.
14    (b) The public-private agreement shall require all
15construction contractors to comply with the requirements of
16Section 30-22 of the Illinois Procurement Code as they apply to
17responsible bidders and to present satisfactory evidence of
18that compliance to the Department, unless the South Suburban
19Airport project is federally funded and the application of
20those requirements would jeopardize the receipt or use of
21federal funds in support of the South Suburban Airport project.
 
22    Section 2-125. Law enforcement.
23    (a) All law enforcement officers of the State and of each
24affected local jurisdiction have the same powers and

 

 

09800SB0020ham002- 34 -LRB098 04192 HLH 46677 a

1jurisdiction within the boundaries of the South Suburban
2Airport as they have in their respective areas of jurisdiction.
3    (b) Law enforcement officers shall have access to the South
4Suburban Airport at any time for the purpose of exercising the
5law enforcement officers' powers and jurisdiction.
 
6    Section 2-130. Term of agreement; reversion of property to
7the Department.
8    (a) The Department shall terminate the contractor's
9authority and duties under the public-private agreement on the
10date set forth in the public-private agreement.
11    (b) Upon termination of the public-private agreement, the
12authority and duties of the contractor under this Act cease,
13except for those duties and obligations that extend beyond the
14termination, as set forth in the public-private agreement, and
15all interests in the South Suburban Airport shall revert to the
16Department.
 
17    Section 2-135. Additional powers of the Department with
18respect to the South Suburban Airport.
19    (a) The Department may exercise any powers provided under
20this Act in participation or cooperation with any governmental
21entity and enter into any contracts to facilitate that
22participation or cooperation. The Department shall cooperate
23with other governmental entities under this Act.
24    (b) The Department may make and enter into all contracts

 

 

09800SB0020ham002- 35 -LRB098 04192 HLH 46677 a

1and agreements necessary or incidental to the performance of
2the Department's duties and the execution of the Department's
3powers under this Act. Except as otherwise required by law,
4these contracts or agreements are not subject to any approvals
5other than the approval of the Department, Governor, or federal
6agencies and may contain any terms that are considered
7reasonable by the Department and not in conflict with any
8provisions of this Act or other statutes, rules, or laws.
9    (c) The Department may pay the costs incurred under the
10public-private agreement entered into under this Act from any
11funds available to the Department for the purpose of the South
12Suburban Airport under this Act or any other statute.
13    (d) The Department and other State agencies shall not take
14any action that would impair the public-private agreement
15entered into under this Act, except as provided by law.
16    (e) The Department may enter into an agreement between and
17among the contractor, the Department, and the Department of
18State Police concerning the provision of law enforcement
19assistance with respect to the South Suburban Airport under
20this Act.
21    (f) The Department is authorized to enter into arrangements
22with the Illinois State Police related to costs incurred in
23providing law enforcement assistance under this Act.
 
24    Section 2-140. Prohibited local action; home rule. A unit
25of local government, including a home rule unit, may not take

 

 

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1any action that would have the effect of impairing the
2development, construction management operation, or maintenance
3of the South Suburban Airport pursuant to the public-private
4agreement authorized under this Act. This Section is a denial
5and limitation of home rule powers and functions under
6subsection (h) of Section 6 of Article VII of the Illinois
7Constitution.
 
8    Section 2-145. Powers liberally construed. The powers
9conferred by this Act shall be liberally construed in order to
10accomplish their purposes and shall be in addition and
11supplemental to the powers conferred to the Department by any
12other law. If any other law or rule is inconsistent with this
13Act, this Act is controlling as to the authority of the
14Department and any public-private agreement entered into under
15this Act.
 
16    Section 2-150. Full and complete authority. This Act
17contains full and complete authority for (i) agreements and
18leases with private entities to carry out the activities
19described in this Act and (ii) the Department to take any and
20all actions authorized by this Act. Notwithstanding any
21provision of any other law to the contrary, no procedure,
22proceedings, publications, notices, consents, approvals,
23orders, or acts by the Department or any other State or local
24agency or official are required to enter into an agreement or

 

 

09800SB0020ham002- 37 -LRB098 04192 HLH 46677 a

1lease.
 
2    Section 2-155. Prior actions. Nothing in this Act shall be
3deemed to invalidate any actions previously taken or commenced
4by the Department prior to the adoption of this Act that relate
5to the development of the South Suburban Airport or any
6acquisition of property related thereto.
 
7
ARTICLE 3.
8
BROWNFIELDS REDEVELOPMENT AND INTERMODAL PROMOTION ACT

 
9    Section 3-1. Short title. This Article may be cited as the
10Brownfields Redevelopment and Intermodal Promotion Act.
11References in this Article to "this Act" mean this Article.
 
12    Section 3-5. Findings. The General Assembly has determined
13that it is in the interest of the State of Illinois to
14facilitate remediation and productive re-use of brownfield
15sites located within specified areas and communities in
16Illinois; to capitalize on current trends in international
17trade routes by encouraging the redevelopment of brownfield
18sites located near existing freight assets into scattered site
19logistics parks and related facilities and businesses; and
20furthermore that it is in the interest of the State to
21encourage the hiring of minority and other historically
22disadvantaged individuals in new businesses or facilities

 

 

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1developed with State assistance, and especially to encourage
2the hiring of individuals who reside in high-unemployment
3communities where such businesses or facilities are developed.
 
4    Section 3-10. Definitions. As used in this Act:
5    "Affected Municipality" means a municipality whose
6boundaries are partially or completely within the Brownfields
7Redevelopment Zone and where an Eligible Project will take
8place.
9    "Developer Agreement" means the agreement between an
10eligible developer or eligible employer and the Department
11under this Act.
12    "Brownfield" means real property, the expansion,
13redevelopment, or reuse of which may be complicated by the
14presence or potential presence of a hazardous substance,
15pollutant, or contaminant; for the purposes of this Act, a
16property will be considered a brownfield if a prospective
17purchaser seeking financing from a private financial
18institution is required by that institution to conduct a Phase
19I Environmental Site Assessment (ESA), as defined by ASTM
20Standard E-1527-05 ("Standard Practice for Environmental Site
21Assessments: Phase 1 Environmental Site Assessment Process").
22    "Department" means the Department of Commerce and Economic
23Opportunity.
24    "Director" means the Director of the Department of Commerce
25and Economic Opportunity.

 

 

09800SB0020ham002- 39 -LRB098 04192 HLH 46677 a

1    "Eligible Developer" means an individual, partnership,
2corporation, or other entity, currently and actively engaged in
3the development of logistics, warehousing, distribution, or
4light manufacturing facilities in North America, including the
5Managing Partner of the South Suburban Brownfields
6Redevelopment Zone, that owns, options, or otherwise directly
7controls a parcel of land that is included in a South Suburban
8Brownfields Redevelopment Zone Project.
9    "Eligible employer" means an individual, partnership,
10corporation, or other entity that employs or will employ
11full-time employees at finished facilities on property that is
12within the South Suburban Brownfields Redevelopment Zone.
13    "Employment goal" means the goal of achieving a minimum
14percentage of labor hours to be performed by employees who are
15a member of a minority group and who reside in one of the
16municipalities containing property that is part of the South
17Suburban Brownfields Redevelopment Zone.
18    "Full-time employee" means an individual who is employed
19for consideration for at least 35 hours each week or who
20renders any other standard of service generally accepted by
21industry custom or practice as full-time employment. An
22individual for whom a W-2 is issued by a Professional Employer
23Organization is a full-time employee if employed in the service
24of the eligible employer for consideration for at least 35
25hours each week or who renders any other standard of service
26generally accepted by industry custom or practice as full-time

 

 

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1employment.
2    "Eligible Project" means those projects described in
3Section 3-35 of this Act.
4    "Incremental income tax" means the total amount withheld
5from the compensation of new employees under Article 7 of the
6Illinois Income Tax Act arising from employment by an eligible
7employer.
8    "Infrastructure" means roads and streets, bridges,
9sidewalks, street lights, water and sewer line extensions or
10improvements, storm water drainage and retention facilities,
11gas and electric utility line extensions or improvements, and
12rail improvements including signalization and siding
13construction or repair, on publicly owned land or other public
14improvements that are essential to the development of a
15Redevelopment Zone Project.
16    "Intermodal" means a type of international freight system
17that permits transshipping among sea, highway, rail and air
18modes of transportation through use of ANSI/International
19Organization for Standardization containers, line haul assets,
20and handling equipment.
21    "Intermodal terminal" means an integrated facility where
22trailers and containers are transferred between intermodal
23railcars and highway carriers, including domestic and
24international container shipments; or an integrated facility
25where dry or liquid bulk and packaged commodities are
26transferred between conventional railroad freight cars and

 

 

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1highway carriers.
2    "Managing Partner" means a representative of Cook County
3appointed by the President of the Board of Commissioners of
4Cook County or a duly created instrumentality of the County
5which enters into an agreement with the Department as described
6in subsection (c) of Section 3-30 of this Act regarding the
7overall management and use of Increment Funds and which is
8authorized by the County to undertake, or to enter into
9Development agreements with third parties to undertake,
10activities necessary for the redevelopment of parcels
11designated under this Act as part of a South Suburban
12Brownfields Redevelopment Zone. For the purposes of this
13definition, a "duly created instrumentality of the county" is a
14company that:
15        (1) is licensed to conduct business in the State of
16    Illinois;
17        (2) has (i) executed industrial developments of the
18    type described as "eligible projects" in Section 3-35 and
19    duly met all of its financial obligations entailed in those
20    projects and (ii) managed each of the types of tasks
21    described in Section 3-45 of this Act as "eligible
22    activities", performing those activities with results that
23    met or exceeded the objectives of the project, or otherwise
24    possesses the business experience described in this item
25    (2);
26        (3) is selected through a competitive Request for

 

 

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1    Proposals process conducted according to rules and
2    standards generally applicable to the selection of
3    professional service contractors by the government of Cook
4    County.
5    "Minority" means a person who is a citizen or lawful
6permanent resident of the United States and who is:
7        (i) African American, meaning a person whose origins
8    are in any of the Black racial groups of Africa, and who
9    has historically and consistently identified himself or
10    herself as being such a person;
11        (ii) Hispanic American or Latino American, meaning a
12    person whose origins are in Mexico, Central or South
13    America, or any of the Spanish speaking islands of the
14    Caribbean (for example Cuba and Puerto Rico), regardless of
15    race, and who has historically and consistently identified
16    himself or herself as being such a person;
17        (iii) Asian or Pacific Islander American, meaning a
18    person whose origins are in any of the original peoples of
19    the Far East, Southeast Asia, the islands of the Pacific or
20    the Northern Marianas, or the Indian Subcontinent, and who
21    has historically and consistently identified himself or
22    herself as being such a person; or
23        (iv) Native American, meaning a person having origins
24    in any of the original peoples of North America, and who
25    maintain tribal affiliation or demonstrate at least
26    one-quarter descent from such groups, and who has

 

 

09800SB0020ham002- 43 -LRB098 04192 HLH 46677 a

1    historically and consistently identified himself or
2    herself as being such a person.
3    "New employee" means a full-time employee first employed by
4an eligible employer for a project that is the subject of an
5agreement between the Managing Partner and an eligible
6developer or eligible employer and who is hired after the
7eligible developer enters into the agreement, but does not
8include:
9        (1) an employee of the eligible employer who performs a
10    job that (i) existed for at least 6 months before the
11    employee was hired and (ii) was previously performed by
12    another employee;
13        (2) an employee of the eligible employer who was
14    previously employed in Illinois by a related member of the
15    eligible employer and whose employment was shifted to the
16    eligible employer after the eligible employer entered into
17    the agreement; or
18        (3) a child, grandchild, parent, or spouse, other than
19    a spouse who is legally separated from the individual, of
20    any individual who has a direct or an indirect ownership
21    interest of at least 5% in the profits, capital, or value
22    of the eligible employer.
23    Notwithstanding item (2) of this definition, an employee
24may be considered a new employee under the agreement if the
25employee performs a job that was previously performed by an
26employee who was: (i) treated under the agreement as a new

 

 

09800SB0020ham002- 44 -LRB098 04192 HLH 46677 a

1employee and (ii) promoted by the eligible employer to another
2job.
3    "Professional Employer Organization" means an employee
4leasing company, as defined in Section 206.1(A)(2) of the
5Unemployment Insurance Act.
6    "Related member" means a person or entity that, with
7respect to the eligible employer during any portion of the
8taxable year, is any one of the following:
9        (1) an individual stockholder, if the stockholder and
10    the members of the stockholder's family (as defined in
11    Section 318 of the Internal Revenue Code) own directly,
12    indirectly, beneficially, or constructively, in the
13    aggregate, at least 50% of the value of the eligible
14    employer's outstanding stock;
15        (2) a partnership, estate, or trust and any partner or
16    beneficiary, if the partnership, estate, or trust, and its
17    partners or beneficiaries own directly, indirectly,
18    beneficially, or constructively, in the aggregate, at
19    least 50% of the profits, capital, stock, or value of the
20    eligible employer;
21        (3) a corporation, and any party related to the
22    corporation in a manner that would require an attribution
23    of stock from the corporation to the party or from the
24    party to the corporation under the attribution rules of
25    Section 318 of the Internal Revenue Code, if the taxpayer
26    owns directly, indirectly, beneficially, or constructively

 

 

09800SB0020ham002- 45 -LRB098 04192 HLH 46677 a

1    at least 50% of the value of the corporation's outstanding
2    stock;
3        (4) a corporation and any party related to that
4    corporation in a manner that would require an attribution
5    of stock from the corporation to the party or from the
6    party to the corporation under the attribution rules of
7    Section 318 of the Internal Revenue Code, if the
8    corporation and all such related parties own in the
9    aggregate at least 50% of the profits, capital, stock, or
10    value of the eligible employer; or
11        (5) a person to or from whom there is attribution of
12    stock ownership in accordance with Section 1563(e) of the
13    Internal Revenue Code, except, for purposes of determining
14    whether a person is a related member under this definition,
15    20% shall be substituted for 5% wherever 5% appears in
16    Section 1563(e) of the Internal Revenue Code.
17    "South Suburban Brownfields Advisory Council" or "Advisory
18Council" means a body comprised of representatives of Affected
19Municipalities, along with experts appointed by the President
20of the Cook County Board of Commissioners and the Governor of
21Illinois, created to guide development within the South
22Suburban Brownfields Redevelopment Zone.
23    "South Suburban Brownfields Redevelopment Zone Project" or
24"Project" means an Eligible Project, as described in Section
253-35, to coordinate the redevelopment and re-use of industrial
26sites within the South Suburban Brownfields Redevelopment Zone

 

 

09800SB0020ham002- 46 -LRB098 04192 HLH 46677 a

1in southern Cook County.
2    "South Suburban Brownfields Redevelopment Zone",
3"Brownfields Redevelopment Zone" or "Zone" means the area fully
4encompassing all properties, acreage, and structures,
5including sites that conform to the Environmental Protection
6Agency definition of Brownfield Industrial Sites, that are
7zoned for industrial uses by the applicable local zoning agency
8and which are located within the following South Suburban Cook
9County municipalities that surround the Canadian National and
10Union Pacific intermodal freight terminals in Harvey and
11Dolton, Illinois respectively: Dixmoor, Dolton, East
12Hazelcrest, Harvey, Hazelcrest, Homewood, Markham, Phoenix,
13Posen, Riverdale, South Holland and Thornton. The South
14Suburban Brownfields Advisory Council shall advise the
15Managing Partner in regard to the selection of Projects. The
16composition of the Advisory Council is determined as set forth
17in subsection (a) of Section 3-30 of this Act.
 
18    Section 3-15. South Suburban Brownfields Redevelopment
19Zone Fund. The South Suburban Brownfields Redevelopment Zone
20Fund is created as a special fund in the State treasury. Upon
21certification of the Department of Revenue following review of
22the amounts contained in the quarter-annual report required
23under paragraph 4 of Section 3-50 of this Act and subject to
24the limits set forth in Section 3-25 of this Act, the
25Comptroller shall order transferred and the Treasurer shall

 

 

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1transfer from the General Revenue Fund to the South Suburban
2Brownfields Redevelopment Fund an amount equal to the
3incremental income tax for the previous month attributable to
4new employees at finished facilities on property that was
5redeveloped as part of the South Suburban Brownfields
6Redevelopment Zone. These revenues may be used to pay the
7Managing Partner for its administrative expenses pursuant to
8Section 3-45 of this Act or to reimburse Eligible Developers or
9Eligible Employers for the cost of the activities detailed
10under Section 3-45 of this Act for Projects being undertaken
11within the South Suburban Brownfields Redevelopment Zone.
 
12    Section 3-20. South Suburban Brownfields Redevelopment
13Fund; eligible projects. In State fiscal years 2015 through
142021, all moneys in the South Suburban Brownfields
15Redevelopment Zone Fund shall be held solely to fund eligible
16projects undertaken pursuant to the provisions of Section 3-35
17of this Act and performed either directly by the Cook County
18through a development agreement with the Department, by an
19entity designated by Cook County through a development
20agreement with the Department to perform specific tasks, or by
21an Eligible Developer or an Eligible Employer through a
22development agreement. All Eligible Projects are subject to
23review and approval by the Managing Partner and by the
24Department. The life span of the Fund may be extended past 2026
25by law.
 

 

 

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1    Section 3-25. Limitation on amounts for eligible projects.
2The total amount of tax increment to be transferred to the
3South Suburban Increment Fund shall not exceed $3,000,000 in
4each State fiscal year. Any increment generated in a given
5State fiscal year in excess of $3,000,000 shall be retained by
6the State. Any revenues in the South Suburban Brownfields
7Redevelopment Fund not used in a given fiscal year may be
8rolled over into subsequent fiscal years. Use of the Fund to
9pay or reimburse eligible expenses shall not preclude the
10receipt of benefits from any Enterprise Zone, Tax Increment
11Finance District, property tax abatement program, or other
12business development program of a federal, State, or local
13economic development program that may be available to the
14project, and any brownfield site included in an agreement with
15an eligible developer or eligible employer shall remain fully
16eligible for all State and Federal tax incentives and grants
17specifically related to brownfield remediation.
 
18    Section 3-30. Managing Partner; Advisory Council;
19responsibilities.
20    (a) The Managing Partner shall report its recommendations
21to the Advisory Council. The Advisory Council consists of two
22members appointed by the Governor of the State of Illinois, two
23members appointed by the President of the Cook County Board of
24Commissioners and five members selected by the Affected

 

 

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1Municipalities to represent them. All members shall serve for a
2term of 3 years. Upon expiration of each member's term, a
3successor shall be appointed for a term of 3 years. Vacancies
4on the Advisory Council shall be filled in the same manner as
5the original appointments and any members so appointed shall
6serve during the remainder of the term for which the vacancy
7occurred. The appointments shall be made within 90 days of the
8effective date of this Act. Five members shall constitute a
9quorum. The Council shall elect a Chairperson amongst its
10members by simple majority vote. Members shall serve without
11compensation and accurate minutes shall be kept of all meetings
12of the Advisory Council. The Advisory Council shall meet no
13less frequently than quarterly and a meeting may be called by
14the Chairperson or any four members of the Board. The
15relationship between the Managing Partner and the Advisory
16Council shall be set forth in an agreement among the parties.
17    (b) The Managing Partner is responsible for ensuring that,
18in consultation with the Advisory Board, the acreage designated
19as part of the Zone is redeveloped to simultaneously maximize
20the following:
21        (1) Protection and improvement of the natural
22    environment and the remediation of brownfield industrial
23    property within the Brownfield Redevelopment Zone.
24        (2) Restoration of industrially zoned land to its best
25    and highest use, defined here as the highest possible
26    number of new jobs in logistics or manufacturing operations

 

 

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1    and the highest levels of new business revenues.
2        (3) Employment of local low and moderate income
3    residents of the Zone and minority residents of the Zone
4    and contracting with local minority-owned firms, to the
5    extent consistent with Cook County policies and existing
6    law.
7    (c) In order to fulfill the responsibilities set forth in
8subsection (b) of this Section, the Managing Partner has the
9following powers and duties, which shall collectively comprise
10its program administration tasks:
11        (1) Create, gain approval from the Director for, and
12    regularly update, a master plan for the redevelopment of
13    properties and the use of the Fund, for review by the
14    Advisory Board and the Director, including the following
15    elements:
16            (A) An explanation of how the features of the
17        master plan allow the Managing Partner to fulfill the
18        broad responsibility outlined in this Section.
19            (B) The tasks that the Managing Partner will
20        undertake, directly or through assistance in the
21        negotiation of development agreements with eligible
22        developers or eligible employers, to acquire,
23        assemble, remediate, prepare for development,
24        redevelop, or market parcels that are part of the Zone.
25            (C) The criteria by which the Managing Partner will
26        evaluate and select from among potential eligible

 

 

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1        projects to carry out its basic responsibilities as
2        outlined in this Section, including criteria that will
3        fulfill the following programmatic goals: (i) at least
4        30% of labor hours must be performed by members of
5        minority groups who reside in the municipalities where
6        the Zone operates, and (ii) at least 20% of the dollar
7        value of contracts and subcontracts must be held by
8        minority-owned firms that are based in the
9        municipalities where the Zone operates.
10            (D) Methods the Managing Partner employed to
11        receive and incorporate input on the master plan from a
12        broad range of residents and stakeholders within the
13        municipalities where the Zone operates, and methods it
14        will employ to publicize the master plan so that it is
15        constantly available for public review.
16            (E) Documentation of the master plan's consistency
17        with the applicable metropolitan planning
18        organization's current regional comprehensive plan and
19        regional Transportation Improvement Plan (TIP), and
20        with the current State Transportation Improvement Plan
21        (STIP).
22        (2) Develop and maintain a current database or set of
23    databases with detailed information including:
24            (A) All industrially zoned real estate properties
25        that are part of the Zone, including information
26        concerning each property's ownership; current or

 

 

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1        delinquent tax status; proximity to major elements of
2        freight infrastructure; status as a potential or
3        designated brownfield; and any other information to
4        support the marketing and redevelopment of properties
5        that are part of the Zone.
6            (B) All major elements of infrastructure that
7        serve the properties that are part of the Zone,
8        including the capacity and state of repair of rail
9        lines and spurs, roadways, water, sewage, and power
10        systems.
11            (C) Names of minority-owned contracting firms that
12        are based in municipalities containing property that
13        is included in the Zone and wish to be hired by
14        eligible developers or eligible employers, including
15        the qualifications and contact information for these
16        contractors.
17            (D) Names of individuals who are residents of
18        municipalities containing property that is part of the
19        Zone and are members of a minority group, who wish to
20        be employed by eligible developers or eligible
21        employers, including the qualifications and contact
22        information for these residents.
23        (3) Execute its master plan through a series of
24    eligible activities as outlined in Section 3-45 of this
25    Act, governed by agreements.
26        (4) Evaluate project proposals to determine their

 

 

09800SB0020ham002- 53 -LRB098 04192 HLH 46677 a

1    appropriateness and priority for funding based on the
2    evaluation criteria defined in the master plan.
3        (5) Negotiate and monitor agreements with Affected
4    Municipalities, eligible developers and eligible
5    employers.
6        (6) Maintain records of activities and financial
7    transactions including regular reports to the Department
8    and an annual certified public audit.
9        (7) Publish and make publicly available an annual
10    report detailing local minority hiring and contracting
11    that has resulted from the use of revenues in the Fund, to
12    include the following: (A) the total number of labor hours
13    performed by new employees who work at finished facilities
14    located on property that is part of the Zone and who (i)
15    are members of a minority group, and (ii) reside in one of
16    the municipalities containing property that is part of the
17    Zone; (B) the total number of labor hours performed by all
18    new employees who work at finished facilities located on
19    property that is part of the Zone; (C) the total dollar
20    value of contracted or subcontracted services reimbursed
21    with revenues from the Fund and that were performed by
22    firms that are (i) minority-owned, and (ii) based in one of
23    the municipalities containing property that is part of the
24    Zone; (D) the total dollar value of contracted or
25    subcontracted services reimbursed with revenues from the
26    Fund; and (E) an explanation of concrete steps that will be

 

 

09800SB0020ham002- 54 -LRB098 04192 HLH 46677 a

1    taken if these values do not meet the programmatic goals
2    that (i) at least 30% of labor hours must be performed by
3    members of local minority groups, and (ii) at least 20% of
4    the dollar value of contracts and subcontracts must be held
5    by local minority-owned firms.
6        (8) Report to the Director quarterly on the progress of
7    executing the master plan and eligible activities.
8    (d) The Department shall manage and allocate all South
9Suburban Brownfields Redevelopment Fund revenues subject to
10the Director's finding that funds are being used to execute the
11master plan for redevelopment of properties that are part of
12the Zone.
13    The Managing Partner may, at its discretion, contract with
14an entity of its choosing to support these program
15administration tasks.
 
16    Section 3-35. Eligible projects. Funds may be used only for
17projects that are necessary for the establishment of a facility
18classified under the current edition of the Urban Land
19Institute's "Guide to Classifying Industrial Property" in one
20of the following primary categories: warehouse distribution,
21manufacturing (light or metal fabrication), or freight
22forwarding; where the secondary categories under warehouse
23distribution include regional, bulk, and rack-supported
24warehouses as well as both heavy and refrigerated distribution
25facilities; and where the secondary categories under

 

 

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1manufacturing include parts assembly or packaging plants, food
2processing plants, and metal working plants that fashion
3complete products or components of machinery, transportation
4equipment, appliances, or construction elements and where the
5secondary category under freight forwarding includes truck
6terminals. Projects must adhere to applicable local and
7regional zoning regulations. Projects may consist of new
8construction or expansion of existing facilities so long as the
9expansion results in the creation of new jobs. Projects must
10consist of a set of activities undertaken as part of an
11agreement to bring back into productive use a brownfield
12property that is part of the Zone, including activities defined
13as eligible purposes of funds in Section 3-45 of this Act.
 
14    Section 3-40. Prohibited projects. Funds shall not be used
15to support projects that create the following types of
16permanent facilities and structures:
17    (i) any type or kind of processing, handing, or sorting
18facility for any kind of municipal or private liquid or solid
19waste;
20    (ii) any type or kind of intermodal or multimodal transfer
21station for any kind of municipal or private liquid or solid
22waste; or
23    (iii) container storage yards that are not part of a larger
24facility whose primary function is the maintenance, repair, and
25rebuilding of transportation equipment including intermodal

 

 

09800SB0020ham002- 56 -LRB098 04192 HLH 46677 a

1containers and trailers, container chassis, mechanical lift
2equipment, hosting tractors, and over-the-road tractors.
3    Temporary or short-term processing or transfer facilities
4specifically used as part of an approved environmental
5remediation plan for a specific site or parcel under an
6agreement are permitted.
 
7    Section 3-45. Eligible activities. Funds held in the South
8Suburban Brownfields Redevelopment Fund may be expended for the
9following purposes:
10        (1) Payment of costs undertaken directly by the
11    Managing Partner or reimbursement of costs incurred by an
12    eligible developer or eligible employer as part of the
13    execution of an agreement, any of which services may be
14    subcontracted out to third parties for the following
15    activities:
16            (A) environmental site assessments, site
17        investigations, remediation action plans, and
18        remediation of brownfield sites located on property
19        where any portion of an eligible project is taking
20        place;
21            (B) land acquisition and site assembly, site
22        development plans; and demolition of derelict or
23        outdated structures.
24            (C) recruiting and training of individuals who are
25        both (i) members of a minority group, and (ii) residing

 

 

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1        in one of the municipalities containing property that
2        is part of the Zone, for employment in logistics or
3        light manufacturing, such as through pre-employment
4        services, pre-apprenticeship training, apprenticeship
5        training, and skills training; expenditures for these
6        recruiting or training activities shall not exceed 20%
7        of the total dollars transferred to the South Suburban
8        Increment Fund in any fiscal year or 15% of the total
9        dollars transferred to this Fund during the entire
10        period of the Fund's existence.
11        (2) Payment of the costs of repairing or upgrading
12    public infrastructure on publicly owned land within the
13    Zone, including rights of way, provided such
14    infrastructure is on public property that is either
15    included within the Brownfields Redevelopment Zone or
16    which is essential to the development of a Project.
17    In agreements with for-profit eligible developers and
18employers governing redevelopment of privately held land,
19reimbursements must first and foremost prioritize the
20activities described in item (A).
21        (3) Program administration costs. The Managing Partner
22    may request up to a total of 15% of amounts in the Fund
23    over the course of the fiscal year to support its
24    responsibilities in that fiscal year or in prior years as
25    detailed in Section 3-30 of this Act. The Managing Partner
26    must find additional funds for any program administration

 

 

09800SB0020ham002- 58 -LRB098 04192 HLH 46677 a

1    costs not covered by the 15%. Subject to the Department's
2    approval, the Managing Partner may impose a reasonable fee
3    upon eligible developers and eligible employers who submit
4    proposals, for purposes of processing these applications
5    and performing such due diligence as may be necessary to
6    assess overall feasibility of the proposed projects and
7    their consistency with the development objectives of this
8    Act and the Zone Master Plan as discussed in Section 3-30
9    of this Act. Those fees may not exceed 2% of the dollar
10    amount requested from the Fund for the proposed project,
11    and the Managing Partner may use these fees to support
12    program administration. The income to the Managing Partner
13    generated by those fees shall be counted as part of the 15%
14    of total transfers to the Fund permitted for the Managing
15    Partner's compensation.
 
16    Section 3-50. Agreements with Eligible Developers and
17Affected Municipalities. Prior to the expenditure of any
18amounts from the Fund (except for administration costs of the
19Managing Partner which may be requested periodically), the
20Department and the Affected Municipality shall enter into an
21agreement which has been recommended by the Managing Partner
22with an Eligible Developer or Eligible Employer who is seeking
23reimbursement under this Act. The agreement must contain all of
24the following:
25        (1) A detailed description of the project that is the

 

 

09800SB0020ham002- 59 -LRB098 04192 HLH 46677 a

1    subject of the agreement, including the location of the
2    project, the expected number of jobs to be created by the
3    project, and a list of the costs incurred or to be incurred
4    by the eligible developer or employer for eligible
5    activities, excluding any amounts that are to be funded
6    through other public sources.
7        (2) A requirement that the eligible developer or
8    eligible employer maintain operations at the project
9    location, stated as a minimum number of years not to exceed
10    10 years.
11        (3) A specific method for determining the number of new
12    employees attributable to the project.
13        (4) A requirement that the eligible developer or
14    eligible employer report on a quarterly basis to the
15    Managing Partner, the Department, and the Department of
16    Revenue the number of new employees and the incremental
17    income tax withheld in connection with the new employees.
18        (5) A provision authorizing the Department to verify
19    with the Department of Revenue the amounts reported under
20    paragraph (4) and to report this information to the
21    Managing Partner.
22        (6) A provision authorizing the Department of Revenue
23    to audit the information reported under paragraph (4).
24        (7) A plan for how the eligible developer or eligible
25    employer will encourage local low and moderate income and
26    minority hiring and minority contracting, including

 

 

09800SB0020ham002- 60 -LRB098 04192 HLH 46677 a

1    specific employment and contracting goals; plans for
2    recruiting, training, and retaining local minority
3    employees; plans for identifying and soliciting bids from
4    local minority-owned firms for contracted or subcontracted
5    services; a list of two or more community organizations
6    that it plans to work with to achieve those goals and
7    plans; and a specific method for determining and reporting
8    on the fulfillment of local minority and low and moderate
9    income hiring and minority contracting goals.
10        (8) A commitment from the eligible developer or
11    eligible employer to work with the City-County Office of
12    Workforce Employment and to consider referrals of trained
13    workers from such Office on a timely and non-discriminatory
14    basis.
15        (9) Documentation that any road improvements that are
16    part of the agreement are consistent with the current
17    regional Transportation Improvement Plan (TIP) and the
18    State Transportation Improvement Plan (STIP).
19        (10) Evidence of approval of the Eligible Project by
20    the Affected Municipality or Municipalities following such
21    public hearings and public notice as may be required by
22    Illinois law in regard to such Eligible Projects.
 
23    Section 3-55. Rules. The Department and the Department of
24Revenue may promulgate rules necessary to implement this Act.
 

 

 

09800SB0020ham002- 61 -LRB098 04192 HLH 46677 a

1
ARTICLE 4.
2
SOUTH SUBURBAN AIRPORT AMENDATORY PROVISIONS

 
3    Section 4-5. The Department of Transportation Law of the
4Civil Administrative Code of Illinois is amended by changing
5Section 2705-220 as follows:
 
6    (20 ILCS 2705/2705-220)
7    Sec. 2705-220. Public private partnerships for
8transportation. The Department may exercise all powers granted
9to it under the Public Private Agreements for the Illiana
10Expressway Act and the Public-Private Agreements for the South
11Suburban Airport Act.
12(Source: P.A. 96-913, eff. 6-9-10.)
 
13    Section 4-10. The Archaeological and Paleontological
14Resources Protection Act is amended by adding Section 1.75 as
15follows:
 
16    (20 ILCS 3435/1.75 new)
17    Sec. 1.75. South Suburban Airport. The Illinois Department
18of Transportation, and any person acting on its behalf under a
19public-private agreement entered into in accordance with the
20Public-Private Agreements for the South Suburban Airport Act,
21is exempt from the permit requirements of this Act, provided
22that the Illinois Department of Transportation, or any such

 

 

09800SB0020ham002- 62 -LRB098 04192 HLH 46677 a

1person, takes reasonable steps to comply with the provisions of
2this Act so long as compliance does not interfere with the
3design, development, operation, or maintenance of the South
4Suburban Airport or the exercise of their powers under the
5Public-Private Agreements for the South Suburban Airport Act.
 
6    Section 4-15. The Human Skeletal Remains Protection Act is
7amended by adding Section 4.75 as follows:
 
8    (20 ILCS 3440/4.75 new)
9    Sec. 4.75. South Suburban Airport. The Illinois Department
10of Transportation, and any person acting on its behalf under a
11public-private agreement entered into in accordance with the
12Public-Private Agreements for the South Suburban Airport Act,
13is exempt from the permit requirements of this Act, provided
14that the Illinois Department of Transportation, or any such
15person, takes reasonable steps to comply with the provisions of
16this Act so long as compliance does not interfere with the
17design, development, operation, or maintenance of the South
18Suburban Airport or the exercise of their powers under the
19Public-Private Agreements for the South Suburban Airport Act.
 
20    Section 4-20. The Illinois Finance Authority Act is amended
21by adding Section 825-106.5 as follows:
 
22    (20 ILCS 3501/825-106.5 new)

 

 

09800SB0020ham002- 63 -LRB098 04192 HLH 46677 a

1    Sec. 825-106.5. South Suburban Airport financing. For the
2purpose of financing the South Suburban Airport under the
3Public-Private Agreements for the South Suburban Airport Act,
4the Authority is authorized to apply for an allocation of
5tax-exempt bond financing authorization provided by Section
6142(m) of the United States Internal Revenue Code, as well as
7financing available under any other federal law or program.
 
8    Section 4-25. The State Finance Act is amended by adding
9Section 5.826 as follows:
 
10    (30 ILCS 105/5.826 new)
11    Sec. 5.826. The South Suburban Airport Improvement Fund.
 
12    Section 4-30. The Public Construction Bond Act is amended
13by changing Section 1.5 as follows:
 
14    (30 ILCS 550/1.5)
15    Sec. 1.5. Public private agreements. This Act applies to
16any public private agreement entered into under the Public
17Private Agreements for the Illiana Expressway Act or the
18Public-Private Agreements for the South Suburban Airport Act.
19(Source: P.A. 96-913, eff. 6-9-10.)
 
20    Section 4-35. The Employment of Illinois Workers on Public
21Works Act is amended by changing Section 2.5 as follows:
 

 

 

09800SB0020ham002- 64 -LRB098 04192 HLH 46677 a

1    (30 ILCS 570/2.5)
2    Sec. 2.5. Public private agreements. This Act applies to
3any public private agreement entered into under the Public
4Private Agreements for the Illiana Expressway Act and the
5Public-Private Agreements for the South Suburban Airport Act.
6(Source: P.A. 96-913, eff. 6-9-10.)
 
7    Section 4-40. The Business Enterprise for Minorities,
8Females, and Persons with Disabilities Act is amended by
9changing Section 2.5 as follows:
 
10    (30 ILCS 575/2.5)
11    (Section scheduled to be repealed on June 30, 2016)
12    Sec. 2.5. Public private agreements. This Act applies to
13any public private agreement entered into under the Public
14Private Agreements for the Illiana Expressway Act and the
15Public-Private Agreements for the South Suburban Airport Act.
16(Source: P.A. 96-913, eff. 6-9-10.)
 
17    Section 4-45. The Retailers' Occupation Tax Act is amended
18by adding Section 1s as follows:
 
19    (35 ILCS 120/1s new)
20    Sec. 1s. Building materials exemption; South Suburban
21Airport public-private partnership.

 

 

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1    (a) Each retailer that makes a qualified sale of building
2materials to be incorporated into the South Suburban Airport as
3defined in the Public-Private Agreements for the South Suburban
4Airport Act, by remodeling, rehabilitating, or new
5construction, may deduct receipts from those sales when
6calculating the tax imposed by this Act.
7    (b) As used in this Section, "qualified sale" means a sale
8of building materials that will be incorporated into the South
9Suburban Airport for which a Certificate of Eligibility for
10Sales Tax Exemption has been issued by the Illinois Department
11of Transportation, which has authority over the project.
12    (c) To document the exemption allowed under this Section,
13the retailer must obtain from the purchaser a copy of the
14Certificate of Eligibility for Sales Tax Exemption issued by
15the Illinois Department of Transportation, which has
16jurisdiction over the project into which the building materials
17will be incorporated is located. The Certificate of Eligibility
18for Sales Tax Exemption must contain all of the following:
19        (1) statement that the project identified in the
20    Certificate meets all the requirements of the Illinois
21    Department of Transportation;
22        (2) the location or address of the project; and
23        (3) the signature of the Secretary of the Illinois
24    Department of Transportation, which has authority over the
25    South Suburban Airport or the Secretary's delegate.
26    (d) In addition to meeting the requirements of subsection

 

 

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1(c) of this Act, the retailer must obtain a certificate from
2the purchaser that contains all of the following:
3        (1) a statement that the building materials are being
4    purchased for incorporation into the South Suburban
5    Airport in accordance with the Public-Private Agreements
6    for the South Suburban Airport Act;
7        (2) the location or address of the project into which
8    the building materials will be incorporated;
9        (3) the name of the project;
10        (4) a description of the building materials being
11    purchased; and
12        (5) the purchaser's signature and date of purchase.
13    (e) This Section is exempt from Section 2-70 of this Act.
 
14    Section 4-50. The Property Tax Code is amended by changing
15Section 15-55 as follows:
 
16    (35 ILCS 200/15-55)
17    Sec. 15-55. State property.
18    (a) All property belonging to the State of Illinois is
19exempt. However, the State agency holding title shall file the
20certificate of ownership and use required by Section 15-10,
21together with a copy of any written lease or agreement, in
22effect on March 30 of the assessment year, concerning parcels
23of 1 acre or more, or an explanation of the terms of any oral
24agreement under which the property is leased, subleased or

 

 

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1rented.
2    The leased property shall be assessed to the lessee and the
3taxes thereon extended and billed to the lessee, and collected
4in the same manner as for property which is not exempt. The
5lessee shall be liable for the taxes and no lien shall attach
6to the property of the State.
7    For the purposes of this Section, the word "leases"
8includes licenses, franchises, operating agreements and other
9arrangements under which private individuals, associations or
10corporations are granted the right to use property of the
11Illinois State Toll Highway Authority and includes all property
12of the Authority used by others without regard to the size of
13the leased parcel.
14    (b) However, all property of every kind belonging to the
15State of Illinois, which is or may hereafter be leased to the
16Illinois Prairie Path Corporation, shall be exempt from all
17assessments, taxation or collection, despite the making of any
18such lease, if it is used for:
19        (1) conservation, nature trail or any other
20    charitable, scientific, educational or recreational
21    purposes with public benefit, including the preserving and
22    aiding in the preservation of natural areas, objects,
23    flora, fauna or biotic communities;
24        (2) the establishment of footpaths, trails and other
25    protected areas;
26        (3) the conservation of the proper use of natural

 

 

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1    resources or the promotion of the study of plant and animal
2    communities and of other phases of ecology, natural history
3    and conservation;
4        (4) the promotion of education in the fields of nature,
5    preservation and conservation; or
6        (5) similar public recreational activities conducted
7    by the Illinois Prairie Path Corporation.
8    No lien shall attach to the property of the State. No tax
9liability shall become the obligation of or be enforceable
10against Illinois Prairie Path Corporation.
11    (c) If the State sells the James R. Thompson Center or the
12Elgin Mental Health Center and surrounding land located at 750
13S. State Street, Elgin, Illinois, as provided in subdivision
14(a)(2) of Section 7.4 of the State Property Control Act, to
15another entity whose property is not exempt and immediately
16thereafter enters into a leaseback or other agreement that
17directly or indirectly gives the State a right to use, control,
18and possess the property, that portion of the property leased
19and occupied exclusively by the State shall remain exempt under
20this Section. For the property to remain exempt under this
21subsection (c), the State must retain an option to purchase the
22property at a future date or, within the limitations period for
23reverters, the property must revert back to the State.
24    If the property has been conveyed as described in this
25subsection (c), the property is no longer exempt pursuant to
26this Section as of the date when:

 

 

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1        (1) the right of the State to use, control, and possess
2    the property has been terminated; or
3        (2) the State no longer has an option to purchase or
4    otherwise acquire the property and there is no provision
5    for a reverter of the property to the State within the
6    limitations period for reverters.
7    Pursuant to Sections 15-15 and 15-20 of this Code, the
8State shall notify the chief county assessment officer of any
9transaction under this subsection (c). The chief county
10assessment officer shall determine initial and continuing
11compliance with the requirements of this Section for tax
12exemption. Failure to notify the chief county assessment
13officer of a transaction under this subsection (c) or to
14otherwise comply with the requirements of Sections 15-15 and
1515-20 of this Code shall, in the discretion of the chief county
16assessment officer, constitute cause to terminate the
17exemption, notwithstanding any other provision of this Code.
18    (c-1) If the Illinois State Toll Highway Authority sells
19the Illinois State Toll Highway Authority headquarters
20building and surrounding land, located at 2700 Ogden Avenue,
21Downers Grove, Illinois as provided in subdivision (a)(2) of
22Section 7.5 of the State Property Control Act, to another
23entity whose property is not exempt and immediately thereafter
24enters into a leaseback or other agreement that directly or
25indirectly gives the State or the Illinois State Toll Highway
26Authority a right to use, control, and possess the property,

 

 

09800SB0020ham002- 70 -LRB098 04192 HLH 46677 a

1that portion of the property leased and occupied exclusively by
2the State or the Authority shall remain exempt under this
3Section. For the property to remain exempt under this
4subsection (c), the Authority must retain an option to purchase
5the property at a future date or, within the limitations period
6for reverters, the property must revert back to the Authority.
7    If the property has been conveyed as described in this
8subsection (c), the property is no longer exempt pursuant to
9this Section as of the date when:
10        (1) the right of the State or the Authority to use,
11    control, and possess the property has been terminated; or
12        (2) the Authority no longer has an option to purchase
13    or otherwise acquire the property and there is no provision
14    for a reverter of the property to the Authority within the
15    limitations period for reverters.
16    Pursuant to Sections 15-15 and 15-20 of this Code, the
17Authority shall notify the chief county assessment officer of
18any transaction under this subsection (c). The chief county
19assessment officer shall determine initial and continuing
20compliance with the requirements of this Section for tax
21exemption. Failure to notify the chief county assessment
22officer of a transaction under this subsection (c) or to
23otherwise comply with the requirements of Sections 15-15 and
2415-20 of this Code shall, in the discretion of the chief county
25assessment officer, constitute cause to terminate the
26exemption, notwithstanding any other provision of this Code.

 

 

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1    (d) The fair market rent of each parcel of real property in
2Will County owned by the State of Illinois for the purpose of
3developing an airport by the Department of Transportation shall
4include the assessed value of leasehold tax. The lessee of each
5parcel of real property in Will County owned by the State of
6Illinois for the purpose of developing an airport by the
7Department of Transportation shall not be liable for the taxes
8thereon. In order for the State to compensate taxing districts
9for the leasehold tax under this paragraph the Will County
10Supervisor of Assessments shall certify, in writing, to the
11Department of Transportation, the amount of leasehold taxes
12extended for the 2002 property tax year for each such exempt
13parcel. The Department of Transportation shall pay to the Will
14County Treasurer, from the Tax Recovery Fund, on or before July
151 of each year, the amount of leasehold taxes for each such
16exempt parcel as certified by the Will County Supervisor of
17Assessments. The tax compensation shall terminate on December
1831, 2020. It is the duty of the Department of Transportation to
19file with the Office of the Will County Supervisor of
20Assessments an affidavit stating the termination date for
21rental of each such parcel due to airport construction. The
22affidavit shall include the property identification number for
23each such parcel. In no instance shall tax compensation for
24property owned by the State be deemed delinquent or bear
25interest. In no instance shall a lien attach to the property of
26the State. In no instance shall the State be required to pay

 

 

09800SB0020ham002- 72 -LRB098 04192 HLH 46677 a

1leasehold tax compensation in excess of the Tax Recovery Fund's
2balance.
3    (e) Public Act 81-1026 applies to all leases or agreements
4entered into or renewed on or after September 24, 1979.
5    (f) Notwithstanding anything to the contrary in this Code,
6all property owned by the State that is the Illiana Expressway,
7as defined in the Public Private Agreements for the Illiana
8Expressway Act, and that is used for transportation purposes
9and that is leased for those purposes to another entity whose
10property is not exempt shall remain exempt, and any leasehold
11interest in the property shall not be subject to taxation under
12Section 9-195 of this Act.
13    (g) Notwithstanding anything to the contrary in this
14Section, all property owned by the State or the Illinois State
15Toll Highway Authority that is defined as a transportation
16project under the Public-Private Partnerships for
17Transportation Act and that is used for transportation purposes
18and that is leased for those purposes to another entity whose
19property is not exempt shall remain exempt, and any leasehold
20interest in the property shall not be subject to taxation under
21Section 9-195 of this Act.
22    (h) Notwithstanding anything to the contrary in this Code,
23all property owned by the State that is the South Suburban
24Airport, as defined in the Public-Private Agreements for the
25South Suburban Airport Act, and that is used for airport
26purposes and that is leased for those purposes to another

 

 

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1entity whose property is not exempt shall remain exempt, and
2any leasehold interest in the property shall not be subject to
3taxation under Section 9-195 of this Act.
4(Source: P.A. 96-192, eff. 8-10-09; 96-913, eff. 6-9-10;
597-502, eff. 8-23-11.)
 
6    Section 4-55. The Foreign Trade Zones Act is amended by
7changing Section 1 as follows:
 
8    (50 ILCS 40/1)  (from Ch. 24, par. 1361)
9    Sec. 1. Each of the following units of state or local
10government and public or private corporations shall have the
11power to apply to proper authorities of the United States of
12America pursuant to appropriate law for the right to establish,
13operate, maintain and lease foreign trade zones and sub-zones
14within its corporate limits or within limits established
15pursuant to agreement with proper authorities of the United
16States of America, as the case may be, and to establish,
17operate, maintain and lease such foreign trade zones and
18sub-zones:
19    (a) The City of East St. Louis.
20    (b) The Bi-State Authority, Lawrenceville - Vincennes
21Airport.
22    (c) The Waukegan Port district.
23    (d) The Illinois Valley Regional Port District.
24    (e) The Economic Development Council, Inc. located in the

 

 

09800SB0020ham002- 74 -LRB098 04192 HLH 46677 a

1area of the United States Customs Port of Entry for Peoria,
2pursuant to authorization granted by the county boards in the
3geographic area served by the proposed foreign trade zone.
4    (f) The Greater Rockford Airport Authority.
5    (f-5) The Illinois Department of Transportation, with
6respect to the South Suburban Airport.
7    (g) After the effective date of this amendatory Act of
81984, any county, city, village or town within the State or a
9public or private corporation authorized or licensed to do
10business in the State or any combination thereof may apply to
11the Foreign Trade Zones Board, United States Department of
12Commerce, for the right to establish, operate and maintain a
13foreign trade zone and sub-zones. For the purposes of this
14Section, such foreign trade zone or sub-zones may be
15incorporated outside the corporate boundaries or be made up of
16areas from adjoining counties or states.
17    (h) No foreign trade zone may be established within 50
18miles of an existing zone situated in a county with 3,000,000
19or more inhabitants or within 35 miles of an existing zone
20situated in a county with less than 3,000,000 inhabitants, such
21zones having been created pursuant to this Act without the
22permission of the authorities which established the existing
23zone.
24(Source: P.A. 85-471.)
 
25    Section 4-60. The Downstate Forest Preserve District Act is

 

 

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1amended by changing Section 5e as follows:
 
2    (70 ILCS 805/5e)  (from Ch. 96 1/2, par. 6308e)
3    Sec. 5e. Property owned by a forest preserve district and
4property in which a forest preserve district is the grantee of
5a conservation easement or the grantee of a conservation right
6as defined in Section 1(a) of the Real Property Conservation
7Rights Act shall not be subject to eminent domain or
8condemnation proceedings, except as otherwise provided in
9Section 15 of the O'Hare Modernization Act and Section 2-100 of
10the Public-Private Agreements for the South Suburban Airport
11Act.
12(Source: P.A. 95-111, eff. 8-13-07.)
 
13    Section 4-65. The Vital Records Act is amended by changing
14Section 21 as follows:
 
15    (410 ILCS 535/21)  (from Ch. 111 1/2, par. 73-21)
16    Sec. 21. (1) The funeral director or person acting as such
17who first assumes custody of a dead body or fetus shall make a
18written report to the registrar of the district in which death
19occurred or in which the body or fetus was found within 24
20hours after taking custody of the body or fetus on a form
21prescribed and furnished by the State Registrar and in
22accordance with the rules promulgated by the State Registrar.
23Except as specified in paragraph (2) of this Section, the

 

 

09800SB0020ham002- 76 -LRB098 04192 HLH 46677 a

1written report shall serve as a permit to transport, bury or
2entomb the body or fetus within this State, provided that the
3funeral director or person acting as such shall certify that
4the physician in charge of the patient's care for the illness
5or condition which resulted in death has been contacted and has
6affirmatively stated that he will sign the medical certificate
7of death or the fetal death certificate. If a funeral director
8fails to file written reports under this Section in a timely
9manner, the local registrar may suspend the funeral director's
10privilege of filing written reports by mail. In a county with a
11population greater than 3,000,000, if a funeral director or
12person acting as such inters or entombs a dead body without
13having previously certified that the physician in charge of the
14patient's care for the illness or condition that resulted in
15death has been contacted and has affirmatively stated that he
16or she will sign the medical certificate of death, then that
17funeral director or person acting as such is responsible for
18payment of the specific costs incurred by the county medical
19examiner in disinterring and reinterring or reentombing the
20dead body.
21    (2) The written report as specified in paragraph (1) of
22this Section shall not serve as a permit to:
23        (a) Remove body or fetus from this State;
24        (b) Cremate the body or fetus; or
25        (c) Make disposal of any body or fetus in any manner
26    when death is subject to the coroner's or medical

 

 

09800SB0020ham002- 77 -LRB098 04192 HLH 46677 a

1    examiner's investigation.
2    (3) In accordance with the provisions of paragraph (2) of
3this Section the funeral director or person acting as such who
4first assumes custody of a dead body or fetus shall obtain a
5permit for disposition of such dead human body prior to final
6disposition or removal from the State of the body or fetus.
7Such permit shall be issued by the registrar of the district
8where death occurred or the body or fetus was found. No such
9permit shall be issued until a properly completed certificate
10of death has been filed with the registrar. The registrar shall
11insure the issuance of a permit for disposition within an
12expedited period of time to accommodate Sunday or holiday
13burials of decedents whose time of death and religious tenets
14or beliefs necessitate Sunday or holiday burials.
15    (4) A permit which accompanies a dead body or fetus brought
16into this State shall be authority for final disposition of the
17body or fetus in this State, except in municipalities where
18local ordinance requires the issuance of a local permit prior
19to disposition.
20    (5) A permit for disposition of a dead human body shall be
21required prior to disinterment of a dead body or fetus, and
22when the disinterred body is to be shipped by a common carrier.
23Such permit shall be issued to a licensed funeral director or
24person acting as such, upon proper application, by the local
25registrar of the district in which disinterment is to be made.
26In the case of disinterment, proper application shall include a

 

 

09800SB0020ham002- 78 -LRB098 04192 HLH 46677 a

1statement providing the name and address of any surviving
2spouse of the deceased, or, if none, any surviving children of
3the deceased, or if no surviving spouse or children, a parent,
4brother, or sister of the deceased. The application shall
5indicate whether the applicant is one of these parties and, if
6so, whether the applicant is a surviving spouse or a surviving
7child. Prior to the issuance of a permit for disinterment, the
8local registrar shall, by certified mail, notify the surviving
9spouse, unless he or she is the applicant, or if there is no
10surviving spouse, all surviving children except for the
11applicant, of the application for the permit. The person or
12persons notified shall have 30 days from the mailing of the
13notice to object by obtaining an injunction enjoining the
14issuance of the permit. After the 30-day period has expired,
15the local registrar shall issue the permit unless he or she has
16been enjoined from doing so or there are other statutory
17grounds for refusal. The notice to the spouse or surviving
18children shall inform the person or persons being notified of
19the right to seek an injunction within 30 days. Notwithstanding
20any other provision of this subsection (5), a court may order
21issuance of a permit for disinterment without notice or prior
22to the expiration of the 30-day period where the petition is
23made by an agency of any governmental unit and good cause is
24shown for disinterment without notice or for the early order.
25Nothing in this subsection (5) limits the authority of the City
26of Chicago to acquire property or otherwise exercise its powers

 

 

09800SB0020ham002- 79 -LRB098 04192 HLH 46677 a

1under the O'Hare Modernization Act or requires that City, or
2any person acting on behalf of that City, to obtain a permit
3under this subsection (5) when exercising powers under the
4O'Hare Modernization Act. The Illinois Department of
5Transportation, and any person acting on its behalf under a
6public-private agreement entered into in accordance with the
7Public-Private Agreements for the South Suburban Airport Act,
8is exempt from this subsection (5), provided that the Illinois
9Department of Transportation, or any such person, takes
10reasonable steps to comply with the provisions of this
11subsection (5) so long as compliance does not interfere with
12the design, development, operation, or maintenance of the South
13Suburban Airport or the exercise of their powers under the
14Public-Private Agreements for the South Suburban Airport Act.
15(Source: P.A. 93-450, eff. 8-6-03.)
 
16    Section 4-70. The Eminent Domain Act is amended by changing
17Section 10-5-10 and by adding Sections 15-5-47 and 25-5-45 as
18follows:
 
19    (735 ILCS 30/10-5-10)  (was 735 ILCS 5/7-102)
20    Sec. 10-5-10. Parties.
21    (a) When the right (i) to take private property for public
22use, without the owner's consent, (ii) to construct or maintain
23any public road, railroad, plankroad, turnpike road, canal, or
24other public work or improvement, or (iii) to damage property

 

 

09800SB0020ham002- 80 -LRB098 04192 HLH 46677 a

1not actually taken has been or is conferred by general law or
2special charter upon any corporate or municipal authority,
3public body, officer or agent, person, commissioner, or
4corporation and when (i) the compensation to be paid for or in
5respect of the property sought to be appropriated or damaged
6for the purposes mentioned cannot be agreed upon by the parties
7interested, (ii) the owner of the property is incapable of
8consenting, (iii) the owner's name or residence is unknown, or
9(iv) the owner is a nonresident of the State, then the party
10authorized to take or damage the property so required, or to
11construct, operate, and maintain any public road, railroad,
12plankroad, turnpike road, canal, or other public work or
13improvement, may apply to the circuit court of the county where
14the property or any part of the property is situated, by filing
15with the clerk a complaint. The complaint shall set forth, by
16reference, (i) the complainant's authority in the premises,
17(ii) the purpose for which the property is sought to be taken
18or damaged, (iii) a description of the property, and (iv) the
19names of all persons interested in the property as owners or
20otherwise, as appearing of record, if known, or if not known
21stating that fact; and shall pray the court to cause the
22compensation to be paid to the owner to be assessed.
23    (b) If it appears that any person not in being, upon coming
24into being, is, or may become or may claim to be, entitled to
25any interest in the property sought to be appropriated or
26damaged, the court shall appoint some competent and

 

 

09800SB0020ham002- 81 -LRB098 04192 HLH 46677 a

1disinterested person as guardian ad litem to appear for and
2represent that interest in the proceeding and to defend the
3proceeding on behalf of the person not in being. Any judgment
4entered in the proceeding shall be as effectual for all
5purposes as though the person was in being and was a party to
6the proceeding.
7    (c) If the proceeding seeks to affect the property of
8persons under guardianship, the guardians shall be made parties
9defendant.
10    (d) Any interested persons whose names are unknown may be
11made parties defendant by the same descriptions and in the same
12manner as provided in other civil cases.
13    (e) When the property to be taken or damaged is a common
14element of property subject to a declaration of condominium
15ownership, pursuant to the Condominium Property Act, or of a
16common interest community, the complaint shall name the unit
17owners' association in lieu of naming the individual unit
18owners and lienholders on individual units. Unit owners,
19mortgagees, and other lienholders may intervene as parties
20defendant. For the purposes of this Section, "common interest
21community" has the same meaning as set forth in subsection (c)
22of Section 9-102 of the Code of Civil Procedure. "Unit owners'
23association" or "association" shall refer to both the
24definition contained in Section 2 of the Condominium Property
25Act and subsection (c) of Section 9-102 of the Code of Civil
26Procedure.

 

 

09800SB0020ham002- 82 -LRB098 04192 HLH 46677 a

1    (f) When the property is sought to be taken or damaged by
2the State for the purposes of establishing, operating, or
3maintaining any State house or State charitable or other
4institutions or improvements, the complaint shall be signed by
5the Governor, or the Governor's designee, or as otherwise
6provided by law.
7    (g) No property, except property described in Section 3 of
8the Sports Stadium Act, property to be acquired in furtherance
9of actions under Article 11, Divisions 124, 126, 128, 130, 135,
10136, and 139, of the Illinois Municipal Code, property to be
11acquired in furtherance of actions under Section 3.1 of the
12Intergovernmental Cooperation Act, property to be acquired
13that is a water system or waterworks pursuant to the home rule
14powers of a unit of local government, and property described as
15Site B in Section 2 of the Metropolitan Pier and Exposition
16Authority Act, and property that may be taken as provided in
17the Public-Private Agreements for the South Suburban Airport
18Act belonging to a railroad or other public utility subject to
19the jurisdiction of the Illinois Commerce Commission may be
20taken or damaged, pursuant to the provisions of this Act,
21without the prior approval of the Illinois Commerce Commission.
22(Source: P.A. 94-1055, eff. 1-1-07; incorporates P.A. 94-1007,
23eff. 1-1-07; 95-331, eff. 8-21-07.)
 
24    (735 ILCS 30/15-5-47 new)
25    Sec. 15-5-47. Eminent domain powers in new Acts. The

 

 

09800SB0020ham002- 83 -LRB098 04192 HLH 46677 a

1following provisions of law may include express grants of the
2power to acquire property by condemnation or eminent domain:
 
3    Public-Private Agreements for the South Suburban Airport Act;
4    Department of Transportation; for South Suburban Airport
5    purposes.
 
6    (735 ILCS 30/25-5-45 new)
7    Sec. 25-5-45. Quick-take; South Suburban Airport.
8Quick-take proceedings under Article 20 may be used by the
9Department of Transportation for the purpose of development of
10the South Suburban Airport within the boundaries designated on
11the map filed with the Secretary of State on May 28, 2013 and
12known as file number 98-GA-D01.
 
13    Section 4-75. The Religious Freedom Restoration Act is
14amended by changing Section 30 as follows:
 
15    (775 ILCS 35/30)
16    Sec. 30. O'Hare Modernization and South Suburban Airport.
17Nothing in this Act limits the authority of the City of Chicago
18to exercise its powers under the O'Hare Modernization Act, or
19the Department of Transportation to exercise its powers under
20the Public-Private Agreements for the South Suburban Airport
21Act, for the purposes of relocation of cemeteries or the graves
22located therein.

 

 

09800SB0020ham002- 84 -LRB098 04192 HLH 46677 a

1(Source: P.A. 93-450, eff. 8-6-03.)
 
2
ARTICLE 5.
3
AMENDATORY PROVISIONS

 
4    Section 5-5. The Illinois Enterprise Zone Act is amended by
5changing Sections 4.1, 5.2, 5.2.1, 5.3, 5.5, 8.1, and 8.2 as
6follows:
 
7    (20 ILCS 655/4.1)
8    Sec. 4.1. Department recommendations.
9    (a) For all applications that qualify under Section 4 of
10this Act, the Department shall issue recommendations by
11assigning a score to each applicant. The scores will be
12determined by the Department, based on the extent to which an
13applicant meets the criteria points under subsection (f) of
14Section 4 of this Act. Scores will be determined using the
15following scoring system:
16        (1) Up to 50 points for the extent to which the
17    applicant meets or exceeds the criteria in item (1) of
18    subsection (f) of Section 4 of this Act, with points
19    awarded according to the severity of the unemployment.
20        (2) Up to 50 points for the extent to which the
21    applicant meets or exceeds the criteria in item (2) of
22    subsection (f) of Section 4 of this Act, with points
23    awarded in accordance with the number of jobs created and

 

 

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1    the aggregate amount of investment promised.
2        (3) Up to 40 points for the extent to which the
3    applicant meets or exceeds the criteria in item (3) of
4    subsection (f) of Section 4 of this Act, with points
5    awarded in accordance with the severity of the unemployment
6    rate according to the latest federal decennial census.
7        (4) Up to 30 points for the extent to which the
8    applicant meets or exceeds the criteria in item (4) of
9    subsection (f) of Section 4 of this Act, with points
10    awarded in accordance with the severity of the
11    environmental impact of the abandoned coal mine,
12    brownfield, or federal disaster area.
13        (5) Up to 50 points for the extent to which the
14    applicant meets or exceeds the criteria in item (5) of
15    subsection (f) of Section 4 of this Act, with points
16    awarded in accordance with the severity of the applicable
17    facility closures or downsizing.
18        (6) Up to 40 points for the extent to which the
19    applicant meets or exceeds the criteria in item (6) of
20    subsection (f) of Section 4 of this Act, with points
21    awarded in accordance with the severity and extent of the
22    high floor vacancy or deterioration.
23        (7) Up to 30 points for the extent to which the
24    applicant meets or exceeds the criteria in item (7) of
25    subsection (f) of Section 4 of this Act, with points
26    awarded in accordance with the extent to which the

 

 

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1    application addresses a plan to improve the State and local
2    government tax base.
3        (8) Up to 50 points for the extent to which the
4    applicant meets or exceeds the criteria in item (8) of
5    subsection (f) of Section 4 of this Act, with points
6    awarded in accordance with the existence of significant
7    public infrastructure.
8        (9) Up to 40 points for the extent to which the
9    applicant meets or exceeds the criteria in item (9) of
10    subsection (f) of Section 4 of this Act, with points
11    awarded in accordance with the extent to which educational
12    programs exist for career preparation.
13        (10) Up to 40 points for the extent to which the
14    applicant meets or exceeds the criteria in item (10) of
15    subsection (f) of Section 4 of this Act, with points
16    awarded according to the severity of the change in
17    equalized assessed valuation.
18    (b) After assigning a score for each of the individual
19criteria using the point system as described in subsection (a),
20the Department shall then take the sum of the scores for each
21applicant and assign a final score. The Department shall then
22submit this information to the Board, as required in subsection
23(c) of Section 5.2, as its recommendation.
24(Source: P.A. 97-905, eff. 8-7-12.)
 
25    (20 ILCS 655/5.2)  (from Ch. 67 1/2, par. 607)

 

 

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1    Sec. 5.2. Department Review of Enterprise Zone
2Applications.
3    (a) All applications which are to be considered and acted
4upon by the Department during a calendar year must be received
5by the Department no later than December 31 of the preceding
6calendar year.
7    Any application received after December 31 of any calendar
8year shall be held by the Department for consideration and
9action during the following calendar year.
10    Each enterprise zone application shall include a specific
11definition of the applicant's local labor market area.
12    (a-5) The Department shall, no later than July March 31,
132013, develop an application process for an enterprise zone
14application. The Department has emergency rulemaking authority
15for the purpose of application development only until 12 9
16months after the effective date of this amendatory Act of the
1797th General Assembly.
18    (b) Upon receipt of an application from a county or
19municipality the Department shall review the application to
20determine whether the designated area qualifies as an
21enterprise zone under Section 4 of this Act.
22    (c) No later than June 30, the Department shall notify all
23applicant municipalities and counties of the Department's
24determination of the qualification of their respective
25designated enterprise zone areas, and shall send qualifying
26applications, including the applicant's scores for items (1)

 

 

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1through (10) of subsection (a) of Section 4.1 and the
2applicant's final score under that Section, to the Board for
3the Board's consideration, along with supporting documentation
4of the basis for the Department's decision.
5    (d) If any such designated area is found to be qualified to
6be an enterprise zone by the Department under subsection (c) of
7this Section, the Department shall, no later than July 15, send
8a letter of notification to each member of the General Assembly
9whose legislative district or representative district contains
10all or part of the designated area and publish a notice in at
11least one newspaper of general circulation within the proposed
12zone area to notify the general public of the application and
13their opportunity to comment. Such notice shall include a
14description of the area and a brief summary of the application
15and shall indicate locations where the applicant has provided
16copies of the application for public inspection. The notice
17shall also indicate appropriate procedures for the filing of
18written comments from zone residents, business, civic and other
19organizations and property owners to the Department.
20    (e) (Blank).
21    (f) (Blank).
22    (g) (Blank).
23    (h) (Blank).
24(Source: P.A. 97-905, eff. 8-7-12.)
 
25    (20 ILCS 655/5.2.1)

 

 

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1    Sec. 5.2.1. Enterprise Zone Board.
2    (a) An Enterprise Zone Board is hereby created within the
3Department.
4    (b) The Board shall consist of the following 5 members:
5        (1) the Director of Commerce and Economic Opportunity,
6    or his or her designee, who shall serve as chairperson;
7        (2) the Director of Revenue, or his or her designee;
8    and
9        (3) three members appointed by the Governor, with the
10    advice and consent of the Senate.
11    Board members shall serve without compensation but may be
12reimbursed for necessary expenses incurred in the performance
13of their duties.
14    (c) Each member appointed under item (3) of subsection (b)
15shall have at least 5 years of experience in business, economic
16development, or site location. Of the members appointed under
17item (3) of subsection (b): one member shall reside in Cook
18County; one member shall reside in DuPage, Kane, Lake, McHenry,
19or Will County; and one member shall reside in a county other
20than Cook, DuPage, Kane, Lake, McHenry, or Will.
21    (d) Of the initial members appointed under item (3) of
22subsection (b): one member shall serve for a term of 2 years;
23one member shall serve for a term of 3 years; and one member
24shall serve for a term of 4 years. Thereafter, all members
25appointed under item (3) of subsection (b) shall serve for
26terms of 4 years. Members appointed under item (3) of

 

 

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1subsection (b) may be reappointed. The Governor may remove a
2member appointed under item (3) of subsection (b) for
3incompetence, neglect of duty, or malfeasance in office.
4    (e) By September 30, 2015 2014, and September 30 of each
5year thereafter, all applications filed by December 31 of the
6preceding calendar year and deemed qualified by the Department
7shall be approved or denied by the Board. If such application
8is not approved by September 30, the application shall be
9considered denied. If an application is denied, the Board shall
10inform the applicant of the specific reasons for the denial.
11    (f) A majority of the Board will determine whether an
12application is approved or denied. The Board is not, at any
13time, required to designate an enterprise zone.
14    (g) In determining which designated areas shall be approved
15and certified as enterprise zones, the Board shall give
16preference to the extent to which the area meets the criteria
17set forth in Section 4.
18(Source: P.A. 97-905, eff. 8-7-12.)
 
19    (20 ILCS 655/5.3)  (from Ch. 67 1/2, par. 608)
20    Sec. 5.3. Certification of Enterprise Zones; Effective
21date.
22    (a) Certification of Board-approved designated Enterprise
23Zones shall be made by the Department by certification of the
24designating ordinance. The Department shall promptly issue a
25certificate for each Enterprise Zone upon approval by the

 

 

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1Board. The certificate shall be signed by the Director of the
2Department, shall make specific reference to the designating
3ordinance, which shall be attached thereto, and shall be filed
4in the office of the Secretary of State. A certified copy of
5the Enterprise Zone Certificate, or a duplicate original
6thereof, shall be recorded in the office of recorder of deeds
7of the county in which the Enterprise Zone lies.
8    (b) An Enterprise Zone shall be effective on January 1 of
9the first calendar year after Department certification. The
10Department shall transmit a copy of the certification to the
11Department of Revenue, and to the designating municipality or
12county.
13    Upon certification of an Enterprise Zone, the terms and
14provisions of the designating ordinance shall be in effect, and
15may not be amended or repealed except in accordance with
16Section 5.4.
17    (c) With the exception of Enterprise Zones scheduled to
18expire before December 31, 2018, an Enterprise Zone designated
19before the effective date of this amendatory Act of the 97th
20General Assembly shall be in effect for 30 calendar years, or
21for a lesser number of years specified in the certified
22designating ordinance. Notwithstanding the foregoing, any
23Enterprise Zone in existence on the effective date of this
24amendatory Act of the 98th General Assembly that has a term of
2520 calendar years may be extended for an additional 10 calendar
26years upon amendment of the designating ordinance by the

 

 

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1designating municipality or county and submission of the
2ordinance to the Department. The amended ordinance must be
3properly recorded in the Office of Recorder of Deeds of each
4county in which the Enterprise Zone lies. Each Enterprise Zone
5in existence on the effective date of this amendatory Act of
6the 97th General Assembly that is scheduled to expire before
7July 1, 2016 may will have its termination date extended until
8July 1, 2016 upon amendment of the designating ordinance by the
9designating municipality or county extending the termination
10date to July 1, 2016 and submission of the ordinance to the
11Department. The amended ordinance must be properly recorded in
12the Office of Recorder of Deeds of each county in which the
13Enterprise Zone lies. An Enterprise Zone designated on or after
14the effective date of this amendatory Act of the 97th General
15Assembly shall be in effect for a term of 15 calendar years, or
16for a lesser number of years specified in the certified
17designating ordinance. An enterprise zone designated on or
18after the effective date of this amendatory Act of the 97th
19General Assembly shall be subject to review by the Board after
2013 years for an additional 10-year designation beginning on the
21expiration date of the enterprise zone. During the review
22process, the Board shall consider the costs incurred by the
23State and units of local government as a result of tax benefits
24received by the enterprise zone. Enterprise Zones shall
25terminate at midnight of December 31 of the final calendar year
26of the certified term, except as provided in Section 5.4.

 

 

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1    (d) No more than 12 Enterprise Zones may be certified by
2the Department in calendar year 1984, no more than 12
3Enterprise Zones may be certified by the Department in calendar
4year 1985, no more than 13 Enterprise Zones may be certified by
5the Department in calendar year 1986, no more than 15
6Enterprise Zones may be certified by the Department in calendar
7year 1987, and no more than 20 Enterprise Zones may be
8certified by the Department in calendar year 1990. In other
9calendar years, no more than 13 Enterprise Zones may be
10certified by the Department. The Department may also designate
11up to 8 additional Enterprise Zones outside the regular
12application cycle if warranted by the extreme economic
13circumstances as determined by the Department. The Department
14may also designate one additional Enterprise Zone outside the
15regular application cycle if an aircraft manufacturer agrees to
16locate an aircraft manufacturing facility in the proposed
17Enterprise Zone. Notwithstanding any other provision of this
18Act, no more than 89 Enterprise Zones may be certified by the
19Department for the 10 calendar years commencing with 1983. The
207 additional Enterprise Zones authorized by Public Act 86-15
21shall not lie within municipalities or unincorporated areas of
22counties that abut or are contiguous to Enterprise Zones
23certified pursuant to this Section prior to June 30, 1989. The
247 additional Enterprise Zones (excluding the additional
25Enterprise Zone which may be designated outside the regular
26application cycle) authorized by Public Act 86-1030 shall not

 

 

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1lie within municipalities or unincorporated areas of counties
2that abut or are contiguous to Enterprise Zones certified
3pursuant to this Section prior to February 28, 1990. Beginning
4in calendar year 2004 and until December 31, 2008, one
5additional enterprise zone may be certified by the Department.
6In any calendar year, the Department may not certify more than
73 Zones located within the same municipality. The Department
8may certify Enterprise Zones in each of the 10 calendar years
9commencing with 1983. The Department may not certify more than
10a total of 18 Enterprise Zones located within the same county
11(whether within municipalities or within unincorporated
12territory) for the 10 calendar years commencing with 1983.
13Thereafter, the Department may not certify any additional
14Enterprise Zones, but may amend and rescind certifications of
15existing Enterprise Zones in accordance with Section 5.4.
16    (e) Notwithstanding any other provision of law, if (i) the
17county board of any county in which a current military base is
18located, in part or in whole, or in which a military base that
19has been closed within 20 years of the effective date of this
20amendatory Act of 1998 is located, in part or in whole, adopts
21a designating ordinance in accordance with Section 5 of this
22Act to designate the military base in that county as an
23enterprise zone and (ii) the property otherwise meets the
24qualifications for an enterprise zone as prescribed in Section
254 of this Act, then the Department may certify the designating
26ordinance or ordinances, as the case may be.

 

 

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1    (f) Applications for Enterprise Zones that are scheduled to
2expire in 2016, 2017, or 2018, including Enterprise Zones that
3have been extended until 2016 by this amendatory Act of the
497th General Assembly, shall be submitted to the Department no
5later than December 31, 2014 the date established by the
6Department by rule pursuant to Section 5.2. At that time, the
7Zone becomes available for either the previously designated
8area or a different area to compete for designation. No
9preference for designation as a Zone will be given to the
10previously designated area.
11    For Enterprise Zones that are scheduled to expire on or
12after January 1, 2017 2019, an application process shall begin
132 years prior to the year in which the Zone expires. At that
14time, the Zone becomes available for either the previously
15designated area or a different area to compete for designation.
16No preference for designation as a Zone will be given to the
17previously designated area.
18    Each Enterprise Zone that reapplies for certification but
19does not receive a new certification shall expire on its
20scheduled termination date.
21(Source: P.A. 97-905, eff. 8-7-12.)
 
22    (20 ILCS 655/5.5)   (from Ch. 67 1/2, par. 609.1)
23    Sec. 5.5. High Impact Business.
24    (a) In order to respond to unique opportunities to assist
25in the encouragement, development, growth and expansion of the

 

 

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

 

 

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1        201 of the Illinois Income Tax Act; or
2            (B) the business intends to establish a new
3        electric generating facility at a designated location
4        in Illinois. "New electric generating facility", for
5        purposes of this Section, means a newly-constructed
6        electric generation plant or a newly-constructed
7        generation capacity expansion at an existing electric
8        generation plant, including the transmission lines and
9        associated equipment that transfers electricity from
10        points of supply to points of delivery, and for which
11        such new foundation construction commenced not sooner
12        than July 1, 2001. Such facility shall be designed to
13        provide baseload electric generation and shall operate
14        on a continuous basis throughout the year; and (i)
15        shall have an aggregate rated generating capacity of at
16        least 1,000 megawatts for all new units at one site if
17        it uses natural gas as its primary fuel and foundation
18        construction of the facility is commenced on or before
19        December 31, 2004, or shall have an aggregate rated
20        generating capacity of at least 400 megawatts for all
21        new units at one site if it uses coal or gases derived
22        from coal as its primary fuel and shall support the
23        creation of at least 150 new Illinois coal mining jobs,
24        or (ii) shall be funded through a federal Department of
25        Energy grant before December 31, 2010 and shall support
26        the creation of Illinois coal-mining jobs, or (iii)

 

 

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

 

 

09800SB0020ham002- 99 -LRB098 04192 HLH 46677 a

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

 

 

09800SB0020ham002- 100 -LRB098 04192 HLH 46677 a

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

 

 

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1        related to the generation of electricity from wind
2        energy devices. For purposes of this Section, "wind
3        energy device" means any device, with a nameplate
4        capacity of at least 0.5 megawatts, that is used in the
5        process of converting kinetic energy from the wind to
6        generate electricity; or and
7            (F) the business commits to (i) make a minimum
8        investment of $500,000,000, which will be placed in
9        service in a qualified property, (ii) create 125
10        full-time equivalent jobs at a designated location in
11        Illinois, (iii) establish a fertilizer plant at a
12        designated location in Illinois that complies with the
13        set-back standards as described in Table 1: Initial
14        Isolation and Protective Action Distances in the 2012
15        Emergency Response Guidebook published by the United
16        States Department of Transportation, (iv) pay a
17        prevailing wage for employees at that location who are
18        engaged in construction activities, and (v) secure an
19        appropriate level of general liability insurance to
20        protect against catastrophic failure of the fertilizer
21        plant or any of its constituent systems; in addition,
22        the business must agree to enter into a construction
23        project labor agreement including provisions
24        establishing wages, benefits, and other compensation
25        for employees performing work under the project labor
26        agreement at that location; for the purposes of this

 

 

09800SB0020ham002- 102 -LRB098 04192 HLH 46677 a

1        Section, "fertilizer plant" means a newly constructed
2        or upgraded plant utilizing gas used in the production
3        of anhydrous ammonia and downstream nitrogen
4        fertilizer products for resale; for the purposes of
5        this Section, "prevailing wage" means the hourly cash
6        wages plus fringe benefits for training and
7        apprenticeship programs approved by the U.S.
8        Department of Labor, Bureau of Apprenticeship and
9        Training, health and welfare, insurance, vacations and
10        pensions paid generally, in the locality in which the
11        work is being performed, to employees engaged in work
12        of a similar character on public works; this paragraph
13        (F) applies only to businesses that submit an
14        application to the Department within 60 days after the
15        effective date of this amendatory Act of the 98th
16        General Assembly; and
17        (4) no later than 90 days after an application is
18    submitted, the Department shall notify the applicant of the
19    Department's determination of the qualification of the
20    proposed High Impact Business under this Section.
21    (b) Businesses designated as High Impact Businesses
22pursuant to subdivision (a)(3)(A) of this Section shall qualify
23for the credits and exemptions described in the following Acts:
24Section 9-222 and Section 9-222.1A of the Public Utilities Act,
25subsection (h) of Section 201 of the Illinois Income Tax Act,
26and Section 1d of the Retailers' Occupation Tax Act; provided

 

 

09800SB0020ham002- 103 -LRB098 04192 HLH 46677 a

1that these credits and exemptions described in these Acts shall
2not be authorized until the minimum investments set forth in
3subdivision (a)(3)(A) of this Section have been placed in
4service in qualified properties and, in the case of the
5exemptions described in the Public Utilities Act and Section 1d
6of the Retailers' Occupation Tax Act, the minimum full-time
7equivalent jobs or full-time retained jobs set forth in
8subdivision (a)(3)(A) of this Section have been created or
9retained. Businesses designated as High Impact Businesses
10under this Section shall also qualify for the exemption
11described in Section 5l of the Retailers' Occupation Tax Act.
12The credit provided in subsection (h) of Section 201 of the
13Illinois Income Tax Act shall be applicable to investments in
14qualified property as set forth in subdivision (a)(3)(A) of
15this Section.
16    (b-5) Businesses designated as High Impact Businesses
17pursuant to subdivisions (a)(3)(B), (a)(3)(B-5), (a)(3)(C),
18and (a)(3)(D) of this Section shall qualify for the credits and
19exemptions described in the following Acts: Section 51 of the
20Retailers' Occupation Tax Act, Section 9-222 and Section
219-222.1A of the Public Utilities Act, and subsection (h) of
22Section 201 of the Illinois Income Tax Act; however, the
23credits and exemptions authorized under Section 9-222 and
24Section 9-222.1A of the Public Utilities Act, and subsection
25(h) of Section 201 of the Illinois Income Tax Act shall not be
26authorized until the new electric generating facility, the new

 

 

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

 

 

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

 

 

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1designation as a result of the failure to comply with any of
2the terms or conditions of the Illinois Prevailing Wage Act in
3relation to a new wind power facility or a Wind Energy
4Business.
5    (h) Prior to designating a business, the Department shall
6provide the members of the General Assembly and Commission on
7Government Forecasting and Accountability with a report
8setting forth the terms and conditions of the designation and
9guarantees that have been received by the Department in
10relation to the proposed business being designated.
11(Source: P.A. 96-28, eff. 7-1-09; 97-905, eff. 8-7-12.)
 
12    (20 ILCS 655/8.1)
13    Sec. 8.1. Accounting.
14    (a) Any business receiving tax incentives due to its
15location within an Enterprise Zone or its designation as a High
16Impact Business must annually report to the Department of
17Revenue information reasonably required by the Department of
18Revenue to enable the Department to verify and calculate the
19total Enterprise Zone or High Impact Business tax benefits for
20property taxes and taxes imposed by the State that are received
21by the business, broken down by incentive category and
22enterprise zone, if applicable, annually to the Department of
23Revenue. Reports will be due no later than May 31 March 30 of
24each year and shall cover the previous calendar year. The first
25report will be for the 2012 calendar year and will be due no

 

 

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1later than May 31, 2013 March 30, 2013. Failure to report data
2may shall result in ineligibility to receive incentives. To the
3extent that a business receiving tax incentives has obtained an
4Enterprise Zone Building Materials Exemption Certificate or a
5High Impact Business Building Materials Exemption Certificate,
6that business is required to report those building materials
7exemption benefits only under subsection (a-5) of this Section.
8No additional reporting for those building materials exemption
9benefits is required under this subsection (a). The Department,
10in consultation with the Department of Revenue, is authorized
11to adopt rules governing ineligibility to receive exemptions,
12including the length of ineligibility. Factors to be considered
13in determining whether a business is ineligible shall include,
14but are not limited to, prior compliance with the reporting
15requirements, cooperation in discontinuing and correcting
16violations, the extent of the violation, and whether the
17violation was willful or inadvertent For the first offense, a
18business shall be given 60 days to comply.
19    (a-5) Each contractor or other entity that has been issued
20an Enterprise Zone Building Materials Exemption Certificate
21under Section 5k of the Retailers' Occupation Tax Act or a High
22Impact Business Building Materials Exemption Certificate under
23Section 5l of the Retailers' Occupation Tax Act shall annually
24report to the Department of Revenue the total value of the
25Enterprise Zone or High Impact Business building materials
26exemption from State taxes. Reports shall contain information

 

 

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1reasonably required by the Department of Revenue to enable it
2to verify and calculate the total tax benefits for taxes
3imposed by the State, and shall be broken down by Enterprise
4Zone. Reports are due no later than May 31 of each year and
5shall cover the previous calendar year. The first report will
6be for the 2013 calendar year and will be due no later than May
731, 2014. Failure to report data may result in revocation of
8the Enterprise Zone Building Materials Exemption Certificate
9or High Impact Business Building Materials Exemption
10Certificate issued to the contractor or other entity.
11    The Department of Revenue is authorized to adopt rules
12governing revocation determinations, including the length of
13revocation. Factors to be considered in revocations shall
14include, but are not limited to, prior compliance with the
15reporting requirements, cooperation in discontinuing and
16correcting violations, and whether the certificate was used
17unlawfully during the preceding year.
18    (b) Each person required to file a return under the Gas
19Revenue Tax Act, the Gas Use Tax Act, the Electricity Excise
20Tax Act, or the Telecommunications Excise Tax Act shall file,
21on or before May 31 March 30 of each year, a report with the
22Department of Revenue, in the manner and form required by the
23Department of Revenue, containing information reasonably
24required by the Department of Revenue to enable the Department
25of Revenue to calculate itemizing the amount of the deduction
26for taxes imposed by the State that is taken under each Act,

 

 

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1respectively, due to the location of a business in an
2Enterprise Zone or its designation as a High Impact Business.
3The report shall be itemized by business and the business
4location address.
5    (c) Employers shall report their job creation, retention,
6and capital investment numbers within the zone annually to the
7administrator, which will compile the information and report it
8to the Department of Revenue no later than May 31 March 30 of
9each calendar year. High Impact Businesses shall report their
10job creation, retention, and capital investment numbers
11directly to the Department of Revenue no later than May 31
12March 30 of each year.
13    (d) The Department of Revenue will aggregate and collect
14the tax, job, and capital investment data by Enterprise Zone
15and High Impact Business and report this information, formatted
16to exclude company-specific proprietary information, to the
17Department and the Board by August May 1, 2013, and by August
18May 1 of every calendar year thereafter. The Department will
19include this information in their required reports under
20Section 6 of this Act. The Board shall consider this
21information during the reviews required under subsection (d-5)
22of Section 5.4 of this Act and subsection (c) of Section 5.3 of
23this Act.
24    (e) The Department of Revenue, in its discretion, may
25require that the reports filed under this Section be submitted
26electronically.

 

 

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1    (f) The Department of Revenue shall have the authority to
2adopt rules as are reasonable and necessary to implement the
3provisions of this Section.
4(Source: P.A. 97-905, eff. 8-7-12.)
 
5    (20 ILCS 655/8.2)
6    Sec. 8.2. Zone Administrator.
7    (a) Each Zone Administrator designated under Section 8 of
8this Act shall post a copy of the boundaries of the Enterprise
9Zone on its official Internet website and shall provide an
10electronic copy to the Department. The Department shall post
11each copy of the boundaries of an Enterprise Zone that it
12receives from a Zone Administrator on its official Internet
13website.
14    (b) The Zone Administrator shall collect and aggregate the
15following information:
16        (1) the estimated cost of each building project, broken
17    down into labor and materials; and
18        (2) within 60 days after the end of the project, the
19    estimated cost of each building project, broken down into
20    labor and materials.
21    (c) By April 1 of each year, each Zone Administrator shall
22file a copy of its fee schedule with the Department, and the
23Department shall post the fee schedule on its website review
24and approve the fee schedule. Zone Administrators shall charge
25no more than 0.5% of the cost of building materials of the

 

 

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1project associated with the specific Enterprise Zone, with a
2maximum fee of no more than $50,000.
3(Source: P.A. 97-905, eff. 8-7-12.)
 
4    Section 5-10. The Corporate Accountability for Tax
5Expenditures Act is amended by changing Section 25 as follows:
 
6    (20 ILCS 715/25)
7    Sec. 25. Recapture.
8    (a) All development assistance agreements shall contain,
9at a minimum, the following recapture provisions:
10        (1) The recipient must (i) make the level of capital
11    investment in the economic development project specified
12    in the development assistance agreement; (ii) create or
13    retain, or both, the requisite number of jobs, paying not
14    less than specified wages for the created and retained
15    jobs, within and for the duration of the time period
16    specified in the legislation authorizing, or the
17    administrative rules implementing, the development
18    assistance programs and the development assistance
19    agreement.
20        (2) If the recipient fails to create or retain the
21    requisite number of jobs within and for the time period
22    specified, in the legislation authorizing, or the
23    administrative rules implementing, the development
24    assistance programs and the development assistance

 

 

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1    agreement, the recipient shall be deemed to no longer
2    qualify for the State economic assistance and the
3    applicable recapture provisions shall take effect.
4        (3) If the recipient receives State economic
5    assistance in the form of a High Impact Business
6    designation pursuant to Section 5.5 of the Illinois
7    Enterprise Zone Act and the business receives the benefit
8    of the exemption authorized under Section 5l of the
9    Retailers' Occupation Tax Act (for the sale of building
10    materials incorporated into a High Impact Business
11    location) or the utility tax exemption authorized under
12    Section 9-222.1A of the Public Utilities Act and the
13    recipient fails to create or retain the requisite number of
14    jobs, as determined by the legislation authorizing the
15    development assistance programs or the administrative
16    rules implementing such legislation, or both, within the
17    requisite period of time, the recipient shall be required
18    to pay to the State the full amount of both the State tax
19    exemption and the utility tax exemption that it received as
20    a result of the High Impact Business designation.
21        (4) If the recipient receives a grant or loan pursuant
22    to the Large Business Development Program, the Business
23    Development Public Infrastructure Program, or the
24    Industrial Training Program and the recipient fails to
25    create or retain the requisite number of jobs for the
26    requisite time period, as provided in the legislation

 

 

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1    authorizing the development assistance programs or the
2    administrative rules implementing such legislation, or
3    both, or in the development assistance agreement, the
4    recipient shall be required to repay to the State a pro
5    rata amount of the grant; that amount shall reflect the
6    percentage of the deficiency between the requisite number
7    of jobs to be created or retained by the recipient and the
8    actual number of such jobs in existence as of the date the
9    Department determines the recipient is in breach of the job
10    creation or retention covenants contained in the
11    development assistance agreement. If the recipient of
12    development assistance under the Large Business
13    Development Program, the Business Development Public
14    Infrastructure Program, or the Industrial Training Program
15    ceases operations at the specific project site, during the
16    5-year period commencing on the date of assistance, the
17    recipient shall be required to repay the entire amount of
18    the grant or to accelerate repayment of the loan back to
19    the State.
20        (5) If the recipient receives a tax credit under the
21    Economic Development for a Growing Economy tax credit
22    program, the development assistance agreement must provide
23    that (i) if the number of new or retained employees falls
24    below the requisite number set forth in the development
25    assistance agreement, the allowance of the credit shall be
26    automatically suspended until the number of new and

 

 

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1    retained employees equals or exceeds the requisite number
2    in the development assistance agreement; (ii) if the
3    recipient discontinues operations at the specific project
4    site during the 5-year period after the beginning of the
5    first tax year for which the Department issues a tax credit
6    certificate, the recipient shall forfeit all credits taken
7    by the recipient during such 5-year period; and (iii) in
8    the event of a revocation or suspension of the credit, the
9    Department shall contact the Director of Revenue to
10    initiate proceedings against the recipient to recover
11    wrongfully exempted Illinois State income taxes and the
12    recipient shall promptly repay to the Department of Revenue
13    any wrongfully exempted Illinois State income taxes. The
14    forfeited amount of credits shall be deemed assessed on the
15    date the Department contacts the Department of Revenue and
16    the recipient shall promptly repay to the Department of
17    Revenue any wrongfully exempted Illinois State income
18    taxes.
19    (b) The Director may elect to waive enforcement of any
20contractual provision arising out of the development
21assistance agreement required by this Act based on a finding
22that the waiver is necessary to avert an imminent and
23demonstrable hardship to the recipient that may result in such
24recipient's insolvency or discharge of workers. If a waiver is
25granted, the recipient must agree to a contractual
26modification, including recapture provisions, to the

 

 

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1development assistance agreement. The existence of any waiver
2granted pursuant to this subsection (b) (c), the date of the
3granting of such waiver, and a brief summary of the reasons
4supporting the granting of such waiver shall be disclosed
5consistent with the provisions of Section 25 of this Act.
6    (b-5) The Department shall post, on its website, (i) the
7identity of each recipient from whom amounts were recaptured
8under this Section on or after the effective date of this
9amendatory Act of the 97th General Assembly, (ii) the date of
10the recapture, (iii) a summary of the reasons supporting the
11recapture, and (iv) the amount recaptured from those
12recipients.
13    (c) Beginning June 1, 2004, the Department shall annually
14compile a report on the outcomes and effectiveness of recapture
15provisions by program, including but not limited to: (i) the
16total number of companies that receive development assistance
17as defined in this Act; (ii) the total number of recipients in
18violation of development agreements with the Department; (iii)
19the total number of completed recapture efforts; (iv) the total
20number of recapture efforts initiated; and (v) the number of
21waivers granted. This report shall be disclosed consistent with
22the provisions of Section 20 of this Act.
23    (d) For the purposes of this Act, recapture provisions do
24not include the Illinois Department of Transportation Economic
25Development Program, any grants under the Industrial Training
26Program that are not given as an incentive to a recipient

 

 

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1business organization, or any successor programs as described
2in the term "development assistance" in Section 5 of this Act.
3(Source: P.A. 97-2, eff. 5-6-11; 97-721, eff. 6-29-12; revised
410-10-12.)
 
5    Section 5-20. The State Finance Act is amended by adding
6Section 5.827 and 5.829 as follows:
 
7    (30 ILCS 105/5.827 new)
8    Sec. 5.827. The South Suburban Brownfields Redevelopment
9Fund.
 
10    (30 ILCS 105/5.829 new)
11    Sec. 5.829. The Riverfront Development Fund.
 
12    Section 5-25. The Project Labor Agreements Act is amended
13by changing Section 10 as follows:
 
14    (30 ILCS 571/10)
15    Sec. 10. Public works projects. On a project-by-project
16basis, a State department, agency, authority, board, or
17instrumentality that is under the control of the Governor shall
18include a project labor agreement on a public works project
19when that department, agency, authority, board, or
20instrumentality has determined that the agreement advances the
21State's interests of cost, efficiency, quality, safety,

 

 

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1timeliness, skilled labor force, labor stability, or the
2State's policy to advance minority-owned and women-owned
3businesses and minority and female employment. For purposes of
4this Act, any corrective action performed pursuant to Title XVI
5of the Environmental Protection Act for which payment from the
6Underground Storage Tank Fund is requested shall be considered
7a public works project.
8(Source: P.A. 97-199, eff. 7-27-11.)
 
9    Section 5-30. The Illinois Income Tax Act is amended by
10changing Section 201 as follows:
 
11    (35 ILCS 5/201)  (from Ch. 120, par. 2-201)
12    Sec. 201. Tax Imposed.
13    (a) In general. A tax measured by net income is hereby
14imposed on every individual, corporation, trust and estate for
15each taxable year ending after July 31, 1969 on the privilege
16of earning or receiving income in or as a resident of this
17State. Such tax shall be in addition to all other occupation or
18privilege taxes imposed by this State or by any municipal
19corporation or political subdivision thereof.
20    (b) Rates. The tax imposed by subsection (a) of this
21Section shall be determined as follows, except as adjusted by
22subsection (d-1):
23        (1) In the case of an individual, trust or estate, for
24    taxable years ending prior to July 1, 1989, an amount equal

 

 

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1    to 2 1/2% of the taxpayer's net income for the taxable
2    year.
3        (2) In the case of an individual, trust or estate, for
4    taxable years beginning prior to July 1, 1989 and ending
5    after June 30, 1989, an amount equal to the sum of (i) 2
6    1/2% of the taxpayer's net income for the period prior to
7    July 1, 1989, as calculated under Section 202.3, and (ii)
8    3% of the taxpayer's net income for the period after June
9    30, 1989, as calculated under Section 202.3.
10        (3) In the case of an individual, trust or estate, for
11    taxable years beginning after June 30, 1989, and ending
12    prior to January 1, 2011, an amount equal to 3% of the
13    taxpayer's net income for the taxable year.
14        (4) In the case of an individual, trust, or estate, for
15    taxable years beginning prior to January 1, 2011, and
16    ending after December 31, 2010, an amount equal to the sum
17    of (i) 3% of the taxpayer's net income for the period prior
18    to January 1, 2011, as calculated under Section 202.5, and
19    (ii) 5% of the taxpayer's net income for the period after
20    December 31, 2010, as calculated under Section 202.5.
21        (5) In the case of an individual, trust, or estate, for
22    taxable years beginning on or after January 1, 2011, and
23    ending prior to January 1, 2015, an amount equal to 5% of
24    the taxpayer's net income for the taxable year.
25        (5.1) In the case of an individual, trust, or estate,
26    for taxable years beginning prior to January 1, 2015, and

 

 

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1    ending after December 31, 2014, an amount equal to the sum
2    of (i) 5% of the taxpayer's net income for the period prior
3    to January 1, 2015, as calculated under Section 202.5, and
4    (ii) 3.75% of the taxpayer's net income for the period
5    after December 31, 2014, as calculated under Section 202.5.
6        (5.2) In the case of an individual, trust, or estate,
7    for taxable years beginning on or after January 1, 2015,
8    and ending prior to January 1, 2025, an amount equal to
9    3.75% of the taxpayer's net income for the taxable year.
10        (5.3) In the case of an individual, trust, or estate,
11    for taxable years beginning prior to January 1, 2025, and
12    ending after December 31, 2024, an amount equal to the sum
13    of (i) 3.75% of the taxpayer's net income for the period
14    prior to January 1, 2025, as calculated under Section
15    202.5, and (ii) 3.25% of the taxpayer's net income for the
16    period after December 31, 2024, as calculated under Section
17    202.5.
18        (5.4) In the case of an individual, trust, or estate,
19    for taxable years beginning on or after January 1, 2025, an
20    amount equal to 3.25% of the taxpayer's net income for the
21    taxable year.
22        (6) In the case of a corporation, for taxable years
23    ending prior to July 1, 1989, an amount equal to 4% of the
24    taxpayer's net income for the taxable year.
25        (7) In the case of a corporation, for taxable years
26    beginning prior to July 1, 1989 and ending after June 30,

 

 

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1    1989, an amount equal to the sum of (i) 4% of the
2    taxpayer's net income for the period prior to July 1, 1989,
3    as calculated under Section 202.3, and (ii) 4.8% of the
4    taxpayer's net income for the period after June 30, 1989,
5    as calculated under Section 202.3.
6        (8) In the case of a corporation, for taxable years
7    beginning after June 30, 1989, and ending prior to January
8    1, 2011, an amount equal to 4.8% of the taxpayer's net
9    income for the taxable year.
10        (9) In the case of a corporation, for taxable years
11    beginning prior to January 1, 2011, and ending after
12    December 31, 2010, an amount equal to the sum of (i) 4.8%
13    of the taxpayer's net income for the period prior to
14    January 1, 2011, as calculated under Section 202.5, and
15    (ii) 7% of the taxpayer's net income for the period after
16    December 31, 2010, as calculated under Section 202.5.
17        (10) In the case of a corporation, for taxable years
18    beginning on or after January 1, 2011, and ending prior to
19    January 1, 2015, an amount equal to 7% of the taxpayer's
20    net income for the taxable year.
21        (11) In the case of a corporation, for taxable years
22    beginning prior to January 1, 2015, and ending after
23    December 31, 2014, an amount equal to the sum of (i) 7% of
24    the taxpayer's net income for the period prior to January
25    1, 2015, as calculated under Section 202.5, and (ii) 5.25%
26    of the taxpayer's net income for the period after December

 

 

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1    31, 2014, as calculated under Section 202.5.
2        (12) In the case of a corporation, for taxable years
3    beginning on or after January 1, 2015, and ending prior to
4    January 1, 2025, an amount equal to 5.25% of the taxpayer's
5    net income for the taxable year.
6        (13) In the case of a corporation, for taxable years
7    beginning prior to January 1, 2025, and ending after
8    December 31, 2024, an amount equal to the sum of (i) 5.25%
9    of the taxpayer's net income for the period prior to
10    January 1, 2025, as calculated under Section 202.5, and
11    (ii) 4.8% of the taxpayer's net income for the period after
12    December 31, 2024, as calculated under Section 202.5.
13        (14) In the case of a corporation, for taxable years
14    beginning on or after January 1, 2025, an amount equal to
15    4.8% of the taxpayer's net income for the taxable year.
16    The rates under this subsection (b) are subject to the
17provisions of Section 201.5.
18    (c) Personal Property Tax Replacement Income Tax.
19Beginning on July 1, 1979 and thereafter, in addition to such
20income tax, there is also hereby imposed the Personal Property
21Tax Replacement Income Tax measured by net income on every
22corporation (including Subchapter S corporations), partnership
23and trust, for each taxable year ending after June 30, 1979.
24Such taxes are imposed on the privilege of earning or receiving
25income in or as a resident of this State. The Personal Property
26Tax Replacement Income Tax shall be in addition to the income

 

 

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1tax imposed by subsections (a) and (b) of this Section and in
2addition to all other occupation or privilege taxes imposed by
3this State or by any municipal corporation or political
4subdivision thereof.
5    (d) Additional Personal Property Tax Replacement Income
6Tax Rates. The personal property tax replacement income tax
7imposed by this subsection and subsection (c) of this Section
8in the case of a corporation, other than a Subchapter S
9corporation and except as adjusted by subsection (d-1), shall
10be an additional amount equal to 2.85% of such taxpayer's net
11income for the taxable year, except that beginning on January
121, 1981, and thereafter, the rate of 2.85% specified in this
13subsection shall be reduced to 2.5%, and in the case of a
14partnership, trust or a Subchapter S corporation shall be an
15additional amount equal to 1.5% of such taxpayer's net income
16for the taxable year.
17    (d-1) Rate reduction for certain foreign insurers. In the
18case of a foreign insurer, as defined by Section 35A-5 of the
19Illinois Insurance Code, whose state or country of domicile
20imposes on insurers domiciled in Illinois a retaliatory tax
21(excluding any insurer whose premiums from reinsurance assumed
22are 50% or more of its total insurance premiums as determined
23under paragraph (2) of subsection (b) of Section 304, except
24that for purposes of this determination premiums from
25reinsurance do not include premiums from inter-affiliate
26reinsurance arrangements), beginning with taxable years ending

 

 

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1on or after December 31, 1999, the sum of the rates of tax
2imposed by subsections (b) and (d) shall be reduced (but not
3increased) to the rate at which the total amount of tax imposed
4under this Act, net of all credits allowed under this Act,
5shall equal (i) the total amount of tax that would be imposed
6on the foreign insurer's net income allocable to Illinois for
7the taxable year by such foreign insurer's state or country of
8domicile if that net income were subject to all income taxes
9and taxes measured by net income imposed by such foreign
10insurer's state or country of domicile, net of all credits
11allowed or (ii) a rate of zero if no such tax is imposed on such
12income by the foreign insurer's state of domicile. For the
13purposes of this subsection (d-1), an inter-affiliate includes
14a mutual insurer under common management.
15        (1) For the purposes of subsection (d-1), in no event
16    shall the sum of the rates of tax imposed by subsections
17    (b) and (d) be reduced below the rate at which the sum of:
18            (A) the total amount of tax imposed on such foreign
19        insurer under this Act for a taxable year, net of all
20        credits allowed under this Act, plus
21            (B) the privilege tax imposed by Section 409 of the
22        Illinois Insurance Code, the fire insurance company
23        tax imposed by Section 12 of the Fire Investigation
24        Act, and the fire department taxes imposed under
25        Section 11-10-1 of the Illinois Municipal Code,
26    equals 1.25% for taxable years ending prior to December 31,

 

 

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1    2003, or 1.75% for taxable years ending on or after
2    December 31, 2003, of the net taxable premiums written for
3    the taxable year, as described by subsection (1) of Section
4    409 of the Illinois Insurance Code. This paragraph will in
5    no event increase the rates imposed under subsections (b)
6    and (d).
7        (2) Any reduction in the rates of tax imposed by this
8    subsection shall be applied first against the rates imposed
9    by subsection (b) and only after the tax imposed by
10    subsection (a) net of all credits allowed under this
11    Section other than the credit allowed under subsection (i)
12    has been reduced to zero, against the rates imposed by
13    subsection (d).
14    This subsection (d-1) is exempt from the provisions of
15Section 250.
16    (e) Investment credit. A taxpayer shall be allowed a credit
17against the Personal Property Tax Replacement Income Tax for
18investment in qualified property.
19        (1) A taxpayer shall be allowed a credit equal to .5%
20    of the basis of qualified property placed in service during
21    the taxable year, provided such property is placed in
22    service on or after July 1, 1984. There shall be allowed an
23    additional credit equal to .5% of the basis of qualified
24    property placed in service during the taxable year,
25    provided such property is placed in service on or after
26    July 1, 1986, and the taxpayer's base employment within

 

 

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1    Illinois has increased by 1% or more over the preceding
2    year as determined by the taxpayer's employment records
3    filed with the Illinois Department of Employment Security.
4    Taxpayers who are new to Illinois shall be deemed to have
5    met the 1% growth in base employment for the first year in
6    which they file employment records with the Illinois
7    Department of Employment Security. The provisions added to
8    this Section by Public Act 85-1200 (and restored by Public
9    Act 87-895) shall be construed as declaratory of existing
10    law and not as a new enactment. If, in any year, the
11    increase in base employment within Illinois over the
12    preceding year is less than 1%, the additional credit shall
13    be limited to that percentage times a fraction, the
14    numerator of which is .5% and the denominator of which is
15    1%, but shall not exceed .5%. The investment credit shall
16    not be allowed to the extent that it would reduce a
17    taxpayer's liability in any tax year below zero, nor may
18    any credit for qualified property be allowed for any year
19    other than the year in which the property was placed in
20    service in Illinois. For tax years ending on or after
21    December 31, 1987, and on or before December 31, 1988, the
22    credit shall be allowed for the tax year in which the
23    property is placed in service, or, if the amount of the
24    credit exceeds the tax liability for that year, whether it
25    exceeds the original liability or the liability as later
26    amended, such excess may be carried forward and applied to

 

 

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1    the tax liability of the 5 taxable years following the
2    excess credit years if the taxpayer (i) makes investments
3    which cause the creation of a minimum of 2,000 full-time
4    equivalent jobs in Illinois, (ii) is located in an
5    enterprise zone established pursuant to the Illinois
6    Enterprise Zone Act and (iii) is certified by the
7    Department of Commerce and Community Affairs (now
8    Department of Commerce and Economic Opportunity) as
9    complying with the requirements specified in clause (i) and
10    (ii) by July 1, 1986. The Department of Commerce and
11    Community Affairs (now Department of Commerce and Economic
12    Opportunity) shall notify the Department of Revenue of all
13    such certifications immediately. For tax years ending
14    after December 31, 1988, the credit shall be allowed for
15    the tax year in which the property is placed in service,
16    or, if the amount of the credit exceeds the tax liability
17    for that year, whether it exceeds the original liability or
18    the liability as later amended, such excess may be carried
19    forward and applied to the tax liability of the 5 taxable
20    years following the excess credit years. The credit shall
21    be applied to the earliest year for which there is a
22    liability. If there is credit from more than one tax year
23    that is available to offset a liability, earlier credit
24    shall be applied first.
25        (2) The term "qualified property" means property
26    which:

 

 

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1            (A) is tangible, whether new or used, including
2        buildings and structural components of buildings and
3        signs that are real property, but not including land or
4        improvements to real property that are not a structural
5        component of a building such as landscaping, sewer
6        lines, local access roads, fencing, parking lots, and
7        other appurtenances;
8            (B) is depreciable pursuant to Section 167 of the
9        Internal Revenue Code, except that "3-year property"
10        as defined in Section 168(c)(2)(A) of that Code is not
11        eligible for the credit provided by this subsection
12        (e);
13            (C) is acquired by purchase as defined in Section
14        179(d) of the Internal Revenue Code;
15            (D) is used in Illinois by a taxpayer who is
16        primarily engaged in manufacturing, or in mining coal
17        or fluorite, or in retailing, or was placed in service
18        on or after July 1, 2006 in a River Edge Redevelopment
19        Zone established pursuant to the River Edge
20        Redevelopment Zone Act; and
21            (E) has not previously been used in Illinois in
22        such a manner and by such a person as would qualify for
23        the credit provided by this subsection (e) or
24        subsection (f).
25        (3) For purposes of this subsection (e),
26    "manufacturing" means the material staging and production

 

 

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1    of tangible personal property by procedures commonly
2    regarded as manufacturing, processing, fabrication, or
3    assembling which changes some existing material into new
4    shapes, new qualities, or new combinations. For purposes of
5    this subsection (e) the term "mining" shall have the same
6    meaning as the term "mining" in Section 613(c) of the
7    Internal Revenue Code. For purposes of this subsection (e),
8    the term "retailing" means the sale of tangible personal
9    property for use or consumption and not for resale, or
10    services rendered in conjunction with the sale of tangible
11    personal property for use or consumption and not for
12    resale. For purposes of this subsection (e), "tangible
13    personal property" has the same meaning as when that term
14    is used in the Retailers' Occupation Tax Act, and, for
15    taxable years ending after December 31, 2008, does not
16    include the generation, transmission, or distribution of
17    electricity.
18        (4) The basis of qualified property shall be the basis
19    used to compute the depreciation deduction for federal
20    income tax purposes.
21        (5) If the basis of the property for federal income tax
22    depreciation purposes is increased after it has been placed
23    in service in Illinois by the taxpayer, the amount of such
24    increase shall be deemed property placed in service on the
25    date of such increase in basis.
26        (6) The term "placed in service" shall have the same

 

 

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1    meaning as under Section 46 of the Internal Revenue Code.
2        (7) If during any taxable year, any property ceases to
3    be qualified property in the hands of the taxpayer within
4    48 months after being placed in service, or the situs of
5    any qualified property is moved outside Illinois within 48
6    months after being placed in service, the Personal Property
7    Tax Replacement Income Tax for such taxable year shall be
8    increased. Such increase shall be determined by (i)
9    recomputing the investment credit which would have been
10    allowed for the year in which credit for such property was
11    originally allowed by eliminating such property from such
12    computation and, (ii) subtracting such recomputed credit
13    from the amount of credit previously allowed. For the
14    purposes of this paragraph (7), a reduction of the basis of
15    qualified property resulting from a redetermination of the
16    purchase price shall be deemed a disposition of qualified
17    property to the extent of such reduction.
18        (8) Unless the investment credit is extended by law,
19    the basis of qualified property shall not include costs
20    incurred after December 31, 2018, except for costs incurred
21    pursuant to a binding contract entered into on or before
22    December 31, 2018.
23        (9) Each taxable year ending before December 31, 2000,
24    a partnership may elect to pass through to its partners the
25    credits to which the partnership is entitled under this
26    subsection (e) for the taxable year. A partner may use the

 

 

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1    credit allocated to him or her under this paragraph only
2    against the tax imposed in subsections (c) and (d) of this
3    Section. If the partnership makes that election, those
4    credits shall be allocated among the partners in the
5    partnership in accordance with the rules set forth in
6    Section 704(b) of the Internal Revenue Code, and the rules
7    promulgated under that Section, and the allocated amount of
8    the credits shall be allowed to the partners for that
9    taxable year. The partnership shall make this election on
10    its Personal Property Tax Replacement Income Tax return for
11    that taxable year. The election to pass through the credits
12    shall be irrevocable.
13        For taxable years ending on or after December 31, 2000,
14    a partner that qualifies its partnership for a subtraction
15    under subparagraph (I) of paragraph (2) of subsection (d)
16    of Section 203 or a shareholder that qualifies a Subchapter
17    S corporation for a subtraction under subparagraph (S) of
18    paragraph (2) of subsection (b) of Section 203 shall be
19    allowed a credit under this subsection (e) equal to its
20    share of the credit earned under this subsection (e) during
21    the taxable year by the partnership or Subchapter S
22    corporation, determined in accordance with the
23    determination of income and distributive share of income
24    under Sections 702 and 704 and Subchapter S of the Internal
25    Revenue Code. This paragraph is exempt from the provisions
26    of Section 250.

 

 

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1    (f) Investment credit; Enterprise Zone; River Edge
2Redevelopment Zone.
3        (1) A taxpayer shall be allowed a credit against the
4    tax imposed by subsections (a) and (b) of this Section for
5    investment in qualified property which is placed in service
6    in an Enterprise Zone created pursuant to the Illinois
7    Enterprise Zone Act or, for property placed in service on
8    or after July 1, 2006, a River Edge Redevelopment Zone
9    established pursuant to the River Edge Redevelopment Zone
10    Act. For partners, shareholders of Subchapter S
11    corporations, and owners of limited liability companies,
12    if the liability company is treated as a partnership for
13    purposes of federal and State income taxation, there shall
14    be allowed a credit under this subsection (f) to be
15    determined in accordance with the determination of income
16    and distributive share of income under Sections 702 and 704
17    and Subchapter S of the Internal Revenue Code. The credit
18    shall be .5% of the basis for such property. The credit
19    shall be available only in the taxable year in which the
20    property is placed in service in the Enterprise Zone or
21    River Edge Redevelopment Zone and shall not be allowed to
22    the extent that it would reduce a taxpayer's liability for
23    the tax imposed by subsections (a) and (b) of this Section
24    to below zero. For tax years ending on or after December
25    31, 1985, the credit shall be allowed for the tax year in
26    which the property is placed in service, or, if the amount

 

 

09800SB0020ham002- 132 -LRB098 04192 HLH 46677 a

1    of the credit exceeds the tax liability for that year,
2    whether it exceeds the original liability or the liability
3    as later amended, such excess may be carried forward and
4    applied to the tax liability of the 5 taxable years
5    following the excess credit year. The credit shall be
6    applied to the earliest year for which there is a
7    liability. If there is credit from more than one tax year
8    that is available to offset a liability, the credit
9    accruing first in time shall be applied first.
10        (2) The term qualified property means property which:
11            (A) is tangible, whether new or used, including
12        buildings and structural components of buildings;
13            (B) is depreciable pursuant to Section 167 of the
14        Internal Revenue Code, except that "3-year property"
15        as defined in Section 168(c)(2)(A) of that Code is not
16        eligible for the credit provided by this subsection
17        (f);
18            (C) is acquired by purchase as defined in Section
19        179(d) of the Internal Revenue Code;
20            (D) is used in the Enterprise Zone or River Edge
21        Redevelopment Zone by the taxpayer; and
22            (E) has not been previously used in Illinois in
23        such a manner and by such a person as would qualify for
24        the credit provided by this subsection (f) or
25        subsection (e).
26        (3) The basis of qualified property shall be the basis

 

 

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1    used to compute the depreciation deduction for federal
2    income tax purposes.
3        (4) If the basis of the property for federal income tax
4    depreciation purposes is increased after it has been placed
5    in service in the Enterprise Zone or River Edge
6    Redevelopment Zone by the taxpayer, the amount of such
7    increase shall be deemed property placed in service on the
8    date of such increase in basis.
9        (5) The term "placed in service" shall have the same
10    meaning as under Section 46 of the Internal Revenue Code.
11        (6) If during any taxable year, any property ceases to
12    be qualified property in the hands of the taxpayer within
13    48 months after being placed in service, or the situs of
14    any qualified property is moved outside the Enterprise Zone
15    or River Edge Redevelopment Zone within 48 months after
16    being placed in service, the tax imposed under subsections
17    (a) and (b) of this Section for such taxable year shall be
18    increased. Such increase shall be determined by (i)
19    recomputing the investment credit which would have been
20    allowed for the year in which credit for such property was
21    originally allowed by eliminating such property from such
22    computation, and (ii) subtracting such recomputed credit
23    from the amount of credit previously allowed. For the
24    purposes of this paragraph (6), a reduction of the basis of
25    qualified property resulting from a redetermination of the
26    purchase price shall be deemed a disposition of qualified

 

 

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1    property to the extent of such reduction.
2        (7) There shall be allowed an additional credit equal
3    to 0.5% of the basis of qualified property placed in
4    service during the taxable year in a River Edge
5    Redevelopment Zone, provided such property is placed in
6    service on or after July 1, 2006, and the taxpayer's base
7    employment within Illinois has increased by 1% or more over
8    the preceding year as determined by the taxpayer's
9    employment records filed with the Illinois Department of
10    Employment Security. Taxpayers who are new to Illinois
11    shall be deemed to have met the 1% growth in base
12    employment for the first year in which they file employment
13    records with the Illinois Department of Employment
14    Security. If, in any year, the increase in base employment
15    within Illinois over the preceding year is less than 1%,
16    the additional credit shall be limited to that percentage
17    times a fraction, the numerator of which is 0.5% and the
18    denominator of which is 1%, but shall not exceed 0.5%.
19    (g) (Blank). Jobs Tax Credit; River Edge Redevelopment Zone
20and Foreign Trade Zone or Sub-Zone.
21        (1) A taxpayer conducting a trade or business, for
22    taxable years ending on or after December 31, 2006, in a
23    River Edge Redevelopment Zone or conducting a trade or
24    business in a federally designated Foreign Trade Zone or
25    Sub-Zone shall be allowed a credit against the tax imposed
26    by subsections (a) and (b) of this Section in the amount of

 

 

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1    $500 per eligible employee hired to work in the zone during
2    the taxable year.
3        (2) To qualify for the credit:
4            (A) the taxpayer must hire 5 or more eligible
5        employees to work in a River Edge Redevelopment Zone or
6        federally designated Foreign Trade Zone or Sub-Zone
7        during the taxable year;
8            (B) the taxpayer's total employment within the
9        River Edge Redevelopment Zone or federally designated
10        Foreign Trade Zone or Sub-Zone must increase by 5 or
11        more full-time employees beyond the total employed in
12        that zone at the end of the previous tax year for which
13        a jobs tax credit under this Section was taken, or
14        beyond the total employed by the taxpayer as of
15        December 31, 1985, whichever is later; and
16            (C) the eligible employees must be employed 180
17        consecutive days in order to be deemed hired for
18        purposes of this subsection.
19        (3) An "eligible employee" means an employee who is:
20            (A) Certified by the Department of Commerce and
21        Economic Opportunity as "eligible for services"
22        pursuant to regulations promulgated in accordance with
23        Title II of the Job Training Partnership Act, Training
24        Services for the Disadvantaged or Title III of the Job
25        Training Partnership Act, Employment and Training
26        Assistance for Dislocated Workers Program.

 

 

09800SB0020ham002- 136 -LRB098 04192 HLH 46677 a

1            (B) Hired after the River Edge Redevelopment Zone
2        or federally designated Foreign Trade Zone or Sub-Zone
3        was designated or the trade or business was located in
4        that zone, whichever is later.
5            (C) Employed in the River Edge Redevelopment Zone
6        or Foreign Trade Zone or Sub-Zone. An employee is
7        employed in a federally designated Foreign Trade Zone
8        or Sub-Zone if his services are rendered there or it is
9        the base of operations for the services performed.
10            (D) A full-time employee working 30 or more hours
11        per week.
12        (4) For tax years ending on or after December 31, 1985
13    and prior to December 31, 1988, the credit shall be allowed
14    for the tax year in which the eligible employees are hired.
15    For tax years ending on or after December 31, 1988, the
16    credit shall be allowed for the tax year immediately
17    following the tax year in which the eligible employees are
18    hired. If the amount of the credit exceeds the tax
19    liability for that year, whether it exceeds the original
20    liability or the liability as later amended, such excess
21    may be carried forward and applied to the tax liability of
22    the 5 taxable years following the excess credit year. The
23    credit shall be applied to the earliest year for which
24    there is a liability. If there is credit from more than one
25    tax year that is available to offset a liability, earlier
26    credit shall be applied first.

 

 

09800SB0020ham002- 137 -LRB098 04192 HLH 46677 a

1        (5) The Department of Revenue shall promulgate such
2    rules and regulations as may be deemed necessary to carry
3    out the purposes of this subsection (g).
4        (6) The credit shall be available for eligible
5    employees hired on or after January 1, 1986.
6    (h) Investment credit; High Impact Business.
7        (1) Subject to subsections (b) and (b-5) of Section 5.5
8    of the Illinois Enterprise Zone Act, a taxpayer shall be
9    allowed a credit against the tax imposed by subsections (a)
10    and (b) of this Section for investment in qualified
11    property which is placed in service by a Department of
12    Commerce and Economic Opportunity designated High Impact
13    Business. The credit shall be .5% of the basis for such
14    property. The credit shall not be available (i) until the
15    minimum investments in qualified property set forth in
16    subdivision (a)(3)(A) of Section 5.5 of the Illinois
17    Enterprise Zone Act have been satisfied or (ii) until the
18    time authorized in subsection (b-5) of the Illinois
19    Enterprise Zone Act for entities designated as High Impact
20    Businesses under subdivisions (a)(3)(B), (a)(3)(C), and
21    (a)(3)(D) of Section 5.5 of the Illinois Enterprise Zone
22    Act, and shall not be allowed to the extent that it would
23    reduce a taxpayer's liability for the tax imposed by
24    subsections (a) and (b) of this Section to below zero. The
25    credit applicable to such investments shall be taken in the
26    taxable year in which such investments have been completed.

 

 

09800SB0020ham002- 138 -LRB098 04192 HLH 46677 a

1    The credit for additional investments beyond the minimum
2    investment by a designated high impact business authorized
3    under subdivision (a)(3)(A) of Section 5.5 of the Illinois
4    Enterprise Zone Act shall be available only in the taxable
5    year in which the property is placed in service and shall
6    not be allowed to the extent that it would reduce a
7    taxpayer's liability for the tax imposed by subsections (a)
8    and (b) of this Section to below zero. For tax years ending
9    on or after December 31, 1987, the credit shall be allowed
10    for the tax year in which the property is placed in
11    service, or, if the amount of the credit exceeds the tax
12    liability for that year, whether it exceeds the original
13    liability or the liability as later amended, such excess
14    may be carried forward and applied to the tax liability of
15    the 5 taxable years following the excess credit year. The
16    credit shall be applied to the earliest year for which
17    there is a liability. If there is credit from more than one
18    tax year that is available to offset a liability, the
19    credit accruing first in time shall be applied first.
20        Changes made in this subdivision (h)(1) by Public Act
21    88-670 restore changes made by Public Act 85-1182 and
22    reflect existing law.
23        (2) The term qualified property means property which:
24            (A) is tangible, whether new or used, including
25        buildings and structural components of buildings;
26            (B) is depreciable pursuant to Section 167 of the

 

 

09800SB0020ham002- 139 -LRB098 04192 HLH 46677 a

1        Internal Revenue Code, except that "3-year property"
2        as defined in Section 168(c)(2)(A) of that Code is not
3        eligible for the credit provided by this subsection
4        (h);
5            (C) is acquired by purchase as defined in Section
6        179(d) of the Internal Revenue Code; and
7            (D) is not eligible for the Enterprise Zone
8        Investment Credit provided by subsection (f) of this
9        Section.
10        (3) The basis of qualified property shall be the basis
11    used to compute the depreciation deduction for federal
12    income tax purposes.
13        (4) If the basis of the property for federal income tax
14    depreciation purposes is increased after it has been placed
15    in service in a federally designated Foreign Trade Zone or
16    Sub-Zone located in Illinois by the taxpayer, the amount of
17    such increase shall be deemed property placed in service on
18    the date of such increase in basis.
19        (5) The term "placed in service" shall have the same
20    meaning as under Section 46 of the Internal Revenue Code.
21        (6) If during any taxable year ending on or before
22    December 31, 1996, any property ceases to be qualified
23    property in the hands of the taxpayer within 48 months
24    after being placed in service, or the situs of any
25    qualified property is moved outside Illinois within 48
26    months after being placed in service, the tax imposed under

 

 

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1    subsections (a) and (b) of this Section for such taxable
2    year shall be increased. Such increase shall be determined
3    by (i) recomputing the investment credit which would have
4    been allowed for the year in which credit for such property
5    was originally allowed by eliminating such property from
6    such computation, and (ii) subtracting such recomputed
7    credit from the amount of credit previously allowed. For
8    the purposes of this paragraph (6), a reduction of the
9    basis of qualified property resulting from a
10    redetermination of the purchase price shall be deemed a
11    disposition of qualified property to the extent of such
12    reduction.
13        (7) Beginning with tax years ending after December 31,
14    1996, if a taxpayer qualifies for the credit under this
15    subsection (h) and thereby is granted a tax abatement and
16    the taxpayer relocates its entire facility in violation of
17    the explicit terms and length of the contract under Section
18    18-183 of the Property Tax Code, the tax imposed under
19    subsections (a) and (b) of this Section shall be increased
20    for the taxable year in which the taxpayer relocated its
21    facility by an amount equal to the amount of credit
22    received by the taxpayer under this subsection (h).
23    (i) Credit for Personal Property Tax Replacement Income
24Tax. For tax years ending prior to December 31, 2003, a credit
25shall be allowed against the tax imposed by subsections (a) and
26(b) of this Section for the tax imposed by subsections (c) and

 

 

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1(d) of this Section. This credit shall be computed by
2multiplying the tax imposed by subsections (c) and (d) of this
3Section by a fraction, the numerator of which is base income
4allocable to Illinois and the denominator of which is Illinois
5base income, and further multiplying the product by the tax
6rate imposed by subsections (a) and (b) of this Section.
7    Any credit earned on or after December 31, 1986 under this
8subsection which is unused in the year the credit is computed
9because it exceeds the tax liability imposed by subsections (a)
10and (b) for that year (whether it exceeds the original
11liability or the liability as later amended) may be carried
12forward and applied to the tax liability imposed by subsections
13(a) and (b) of the 5 taxable years following the excess credit
14year, provided that no credit may be carried forward to any
15year ending on or after December 31, 2003. This credit shall be
16applied first to the earliest year for which there is a
17liability. If there is a credit under this subsection from more
18than one tax year that is available to offset a liability the
19earliest credit arising under this subsection shall be applied
20first.
21    If, during any taxable year ending on or after December 31,
221986, the tax imposed by subsections (c) and (d) of this
23Section for which a taxpayer has claimed a credit under this
24subsection (i) is reduced, the amount of credit for such tax
25shall also be reduced. Such reduction shall be determined by
26recomputing the credit to take into account the reduced tax

 

 

09800SB0020ham002- 142 -LRB098 04192 HLH 46677 a

1imposed by subsections (c) and (d). If any portion of the
2reduced amount of credit has been carried to a different
3taxable year, an amended return shall be filed for such taxable
4year to reduce the amount of credit claimed.
5    (j) Training expense credit. Beginning with tax years
6ending on or after December 31, 1986 and prior to December 31,
72003, a taxpayer shall be allowed a credit against the tax
8imposed by subsections (a) and (b) under this Section for all
9amounts paid or accrued, on behalf of all persons employed by
10the taxpayer in Illinois or Illinois residents employed outside
11of Illinois by a taxpayer, for educational or vocational
12training in semi-technical or technical fields or semi-skilled
13or skilled fields, which were deducted from gross income in the
14computation of taxable income. The credit against the tax
15imposed by subsections (a) and (b) shall be 1.6% of such
16training expenses. For partners, shareholders of subchapter S
17corporations, and owners of limited liability companies, if the
18liability company is treated as a partnership for purposes of
19federal and State income taxation, there shall be allowed a
20credit under this subsection (j) to be determined in accordance
21with the determination of income and distributive share of
22income under Sections 702 and 704 and subchapter S of the
23Internal Revenue Code.
24    Any credit allowed under this subsection which is unused in
25the year the credit is earned may be carried forward to each of
26the 5 taxable years following the year for which the credit is

 

 

09800SB0020ham002- 143 -LRB098 04192 HLH 46677 a

1first computed until it is used. This credit shall be applied
2first to the earliest year for which there is a liability. If
3there is a credit under this subsection from more than one tax
4year that is available to offset a liability the earliest
5credit arising under this subsection shall be applied first. No
6carryforward credit may be claimed in any tax year ending on or
7after December 31, 2003.
8    (k) Research and development credit. For tax years ending
9after July 1, 1990 and prior to December 31, 2003, and
10beginning again for tax years ending on or after December 31,
112004, and ending prior to January 1, 2016, a taxpayer shall be
12allowed a credit against the tax imposed by subsections (a) and
13(b) of this Section for increasing research activities in this
14State. The credit allowed against the tax imposed by
15subsections (a) and (b) shall be equal to 6 1/2% of the
16qualifying expenditures for increasing research activities in
17this State. For partners, shareholders of subchapter S
18corporations, and owners of limited liability companies, if the
19liability company is treated as a partnership for purposes of
20federal and State income taxation, there shall be allowed a
21credit under this subsection to be determined in accordance
22with the determination of income and distributive share of
23income under Sections 702 and 704 and subchapter S of the
24Internal Revenue Code.
25    For purposes of this subsection, "qualifying expenditures"
26means the qualifying expenditures as defined for the federal

 

 

09800SB0020ham002- 144 -LRB098 04192 HLH 46677 a

1credit for increasing research activities which would be
2allowable under Section 41 of the Internal Revenue Code and
3which are conducted in this State, "qualifying expenditures for
4increasing research activities in this State" means the excess
5of qualifying expenditures for the taxable year in which
6incurred over qualifying expenditures for the base period,
7"qualifying expenditures for the base period" means the average
8of the qualifying expenditures for each year in the base
9period, and "base period" means the 3 taxable years immediately
10preceding the taxable year for which the determination is being
11made.
12    Any credit in excess of the tax liability for the taxable
13year may be carried forward. A taxpayer may elect to have the
14unused credit shown on its final completed return carried over
15as a credit against the tax liability for the following 5
16taxable years or until it has been fully used, whichever occurs
17first; provided that no credit earned in a tax year ending
18prior to December 31, 2003 may be carried forward to any year
19ending on or after December 31, 2003.
20    If an unused credit is carried forward to a given year from
212 or more earlier years, that credit arising in the earliest
22year will be applied first against the tax liability for the
23given year. If a tax liability for the given year still
24remains, the credit from the next earliest year will then be
25applied, and so on, until all credits have been used or no tax
26liability for the given year remains. Any remaining unused

 

 

09800SB0020ham002- 145 -LRB098 04192 HLH 46677 a

1credit or credits then will be carried forward to the next
2following year in which a tax liability is incurred, except
3that no credit can be carried forward to a year which is more
4than 5 years after the year in which the expense for which the
5credit is given was incurred.
6    No inference shall be drawn from this amendatory Act of the
791st General Assembly in construing this Section for taxable
8years beginning before January 1, 1999.
9    (l) Environmental Remediation Tax Credit.
10        (i) For tax years ending after December 31, 1997 and on
11    or before December 31, 2001, a taxpayer shall be allowed a
12    credit against the tax imposed by subsections (a) and (b)
13    of this Section for certain amounts paid for unreimbursed
14    eligible remediation costs, as specified in this
15    subsection. For purposes of this Section, "unreimbursed
16    eligible remediation costs" means costs approved by the
17    Illinois Environmental Protection Agency ("Agency") under
18    Section 58.14 of the Environmental Protection Act that were
19    paid in performing environmental remediation at a site for
20    which a No Further Remediation Letter was issued by the
21    Agency and recorded under Section 58.10 of the
22    Environmental Protection Act. The credit must be claimed
23    for the taxable year in which Agency approval of the
24    eligible remediation costs is granted. The credit is not
25    available to any taxpayer if the taxpayer or any related
26    party caused or contributed to, in any material respect, a

 

 

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1    release of regulated substances on, in, or under the site
2    that was identified and addressed by the remedial action
3    pursuant to the Site Remediation Program of the
4    Environmental Protection Act. After the Pollution Control
5    Board rules are adopted pursuant to the Illinois
6    Administrative Procedure Act for the administration and
7    enforcement of Section 58.9 of the Environmental
8    Protection Act, determinations as to credit availability
9    for purposes of this Section shall be made consistent with
10    those rules. For purposes of this Section, "taxpayer"
11    includes a person whose tax attributes the taxpayer has
12    succeeded to under Section 381 of the Internal Revenue Code
13    and "related party" includes the persons disallowed a
14    deduction for losses by paragraphs (b), (c), and (f)(1) of
15    Section 267 of the Internal Revenue Code by virtue of being
16    a related taxpayer, as well as any of its partners. The
17    credit allowed against the tax imposed by subsections (a)
18    and (b) shall be equal to 25% of the unreimbursed eligible
19    remediation costs in excess of $100,000 per site, except
20    that the $100,000 threshold shall not apply to any site
21    contained in an enterprise zone as determined by the
22    Department of Commerce and Community Affairs (now
23    Department of Commerce and Economic Opportunity). The
24    total credit allowed shall not exceed $40,000 per year with
25    a maximum total of $150,000 per site. For partners and
26    shareholders of subchapter S corporations, there shall be

 

 

09800SB0020ham002- 147 -LRB098 04192 HLH 46677 a

1    allowed a credit under this subsection to be determined in
2    accordance with the determination of income and
3    distributive share of income under Sections 702 and 704 and
4    subchapter S of the Internal Revenue Code.
5        (ii) A credit allowed under this subsection that is
6    unused in the year the credit is earned may be carried
7    forward to each of the 5 taxable years following the year
8    for which the credit is first earned until it is used. The
9    term "unused credit" does not include any amounts of
10    unreimbursed eligible remediation costs in excess of the
11    maximum credit per site authorized under paragraph (i).
12    This credit shall be applied first to the earliest year for
13    which there is a liability. If there is a credit under this
14    subsection from more than one tax year that is available to
15    offset a liability, the earliest credit arising under this
16    subsection shall be applied first. A credit allowed under
17    this subsection may be sold to a buyer as part of a sale of
18    all or part of the remediation site for which the credit
19    was granted. The purchaser of a remediation site and the
20    tax credit shall succeed to the unused credit and remaining
21    carry-forward period of the seller. To perfect the
22    transfer, the assignor shall record the transfer in the
23    chain of title for the site and provide written notice to
24    the Director of the Illinois Department of Revenue of the
25    assignor's intent to sell the remediation site and the
26    amount of the tax credit to be transferred as a portion of

 

 

09800SB0020ham002- 148 -LRB098 04192 HLH 46677 a

1    the sale. In no event may a credit be transferred to any
2    taxpayer if the taxpayer or a related party would not be
3    eligible under the provisions of subsection (i).
4        (iii) For purposes of this Section, the term "site"
5    shall have the same meaning as under Section 58.2 of the
6    Environmental Protection Act.
7    (m) Education expense credit. Beginning with tax years
8ending after December 31, 1999, a taxpayer who is the custodian
9of one or more qualifying pupils shall be allowed a credit
10against the tax imposed by subsections (a) and (b) of this
11Section for qualified education expenses incurred on behalf of
12the qualifying pupils. The credit shall be equal to 25% of
13qualified education expenses, but in no event may the total
14credit under this subsection claimed by a family that is the
15custodian of qualifying pupils exceed $500. In no event shall a
16credit under this subsection reduce the taxpayer's liability
17under this Act to less than zero. This subsection is exempt
18from the provisions of Section 250 of this Act.
19    For purposes of this subsection:
20    "Qualifying pupils" means individuals who (i) are
21residents of the State of Illinois, (ii) are under the age of
2221 at the close of the school year for which a credit is
23sought, and (iii) during the school year for which a credit is
24sought were full-time pupils enrolled in a kindergarten through
25twelfth grade education program at any school, as defined in
26this subsection.

 

 

09800SB0020ham002- 149 -LRB098 04192 HLH 46677 a

1    "Qualified education expense" means the amount incurred on
2behalf of a qualifying pupil in excess of $250 for tuition,
3book fees, and lab fees at the school in which the pupil is
4enrolled during the regular school year.
5    "School" means any public or nonpublic elementary or
6secondary school in Illinois that is in compliance with Title
7VI of the Civil Rights Act of 1964 and attendance at which
8satisfies the requirements of Section 26-1 of the School Code,
9except that nothing shall be construed to require a child to
10attend any particular public or nonpublic school to qualify for
11the credit under this Section.
12    "Custodian" means, with respect to qualifying pupils, an
13Illinois resident who is a parent, the parents, a legal
14guardian, or the legal guardians of the qualifying pupils.
15    (n) River Edge Redevelopment Zone site remediation tax
16credit.
17        (i) For tax years ending on or after December 31, 2006,
18    a taxpayer shall be allowed a credit against the tax
19    imposed by subsections (a) and (b) of this Section for
20    certain amounts paid for unreimbursed eligible remediation
21    costs, as specified in this subsection. For purposes of
22    this Section, "unreimbursed eligible remediation costs"
23    means costs approved by the Illinois Environmental
24    Protection Agency ("Agency") under Section 58.14a of the
25    Environmental Protection Act that were paid in performing
26    environmental remediation at a site within a River Edge

 

 

09800SB0020ham002- 150 -LRB098 04192 HLH 46677 a

1    Redevelopment Zone for which a No Further Remediation
2    Letter was issued by the Agency and recorded under Section
3    58.10 of the Environmental Protection Act. The credit must
4    be claimed for the taxable year in which Agency approval of
5    the eligible remediation costs is granted. The credit is
6    not available to any taxpayer if the taxpayer or any
7    related party caused or contributed to, in any material
8    respect, a release of regulated substances on, in, or under
9    the site that was identified and addressed by the remedial
10    action pursuant to the Site Remediation Program of the
11    Environmental Protection Act. Determinations as to credit
12    availability for purposes of this Section shall be made
13    consistent with rules adopted by the Pollution Control
14    Board pursuant to the Illinois Administrative Procedure
15    Act for the administration and enforcement of Section 58.9
16    of the Environmental Protection Act. For purposes of this
17    Section, "taxpayer" includes a person whose tax attributes
18    the taxpayer has succeeded to under Section 381 of the
19    Internal Revenue Code and "related party" includes the
20    persons disallowed a deduction for losses by paragraphs
21    (b), (c), and (f)(1) of Section 267 of the Internal Revenue
22    Code by virtue of being a related taxpayer, as well as any
23    of its partners. The credit allowed against the tax imposed
24    by subsections (a) and (b) shall be equal to 25% of the
25    unreimbursed eligible remediation costs in excess of
26    $100,000 per site.

 

 

09800SB0020ham002- 151 -LRB098 04192 HLH 46677 a

1        (ii) A credit allowed under this subsection that is
2    unused in the year the credit is earned may be carried
3    forward to each of the 5 taxable years following the year
4    for which the credit is first earned until it is used. This
5    credit shall be applied first to the earliest year for
6    which there is a liability. If there is a credit under this
7    subsection from more than one tax year that is available to
8    offset a liability, the earliest credit arising under this
9    subsection shall be applied first. A credit allowed under
10    this subsection may be sold to a buyer as part of a sale of
11    all or part of the remediation site for which the credit
12    was granted. The purchaser of a remediation site and the
13    tax credit shall succeed to the unused credit and remaining
14    carry-forward period of the seller. To perfect the
15    transfer, the assignor shall record the transfer in the
16    chain of title for the site and provide written notice to
17    the Director of the Illinois Department of Revenue of the
18    assignor's intent to sell the remediation site and the
19    amount of the tax credit to be transferred as a portion of
20    the sale. In no event may a credit be transferred to any
21    taxpayer if the taxpayer or a related party would not be
22    eligible under the provisions of subsection (i).
23        (iii) For purposes of this Section, the term "site"
24    shall have the same meaning as under Section 58.2 of the
25    Environmental Protection Act.
26(Source: P.A. 96-115, eff. 7-31-09; 96-116, eff. 7-31-09;

 

 

09800SB0020ham002- 152 -LRB098 04192 HLH 46677 a

196-937, eff. 6-23-10; 96-1000, eff. 7-2-10; 96-1496, eff.
21-13-11; 97-2, eff. 5-6-11; 97-636, eff. 6-1-12; 97-905, eff.
38-7-12.)
 
4    Section 5-33. The Use Tax Act is amended by changing
5Section 9 as follows:
 
6    (35 ILCS 105/9)  (from Ch. 120, par. 439.9)
7    Sec. 9. Except as to motor vehicles, watercraft, aircraft,
8and trailers that are required to be registered with an agency
9of this State, each retailer required or authorized to collect
10the tax imposed by this Act shall pay to the Department the
11amount of such tax (except as otherwise provided) at the time
12when he is required to file his return for the period during
13which such tax was collected, less a discount of 2.1% prior to
14January 1, 1990, and 1.75% on and after January 1, 1990, or $5
15per calendar year, whichever is greater, which is allowed to
16reimburse the retailer for expenses incurred in collecting the
17tax, keeping records, preparing and filing returns, remitting
18the tax and supplying data to the Department on request. In the
19case of retailers who report and pay the tax on a transaction
20by transaction basis, as provided in this Section, such
21discount shall be taken with each such tax remittance instead
22of when such retailer files his periodic return. A retailer
23need not remit that part of any tax collected by him to the
24extent that he is required to remit and does remit the tax

 

 

09800SB0020ham002- 153 -LRB098 04192 HLH 46677 a

1imposed by the Retailers' Occupation Tax Act, with respect to
2the sale of the same property.
3    Where such tangible personal property is sold under a
4conditional sales contract, or under any other form of sale
5wherein the payment of the principal sum, or a part thereof, is
6extended beyond the close of the period for which the return is
7filed, the retailer, in collecting the tax (except as to motor
8vehicles, watercraft, aircraft, and trailers that are required
9to be registered with an agency of this State), may collect for
10each tax return period, only the tax applicable to that part of
11the selling price actually received during such tax return
12period.
13    Except as provided in this Section, on or before the
14twentieth day of each calendar month, such retailer shall file
15a return for the preceding calendar month. Such return shall be
16filed on forms prescribed by the Department and shall furnish
17such information as the Department may reasonably require.
18    The Department may require returns to be filed on a
19quarterly basis. If so required, a return for each calendar
20quarter shall be filed on or before the twentieth day of the
21calendar month following the end of such calendar quarter. The
22taxpayer shall also file a return with the Department for each
23of the first two months of each calendar quarter, on or before
24the twentieth day of the following calendar month, stating:
25        1. The name of the seller;
26        2. The address of the principal place of business from

 

 

09800SB0020ham002- 154 -LRB098 04192 HLH 46677 a

1    which he engages in the business of selling tangible
2    personal property at retail in this State;
3        3. The total amount of taxable receipts received by him
4    during the preceding calendar month from sales of tangible
5    personal property by him during such preceding calendar
6    month, including receipts from charge and time sales, but
7    less all deductions allowed by law;
8        4. The amount of credit provided in Section 2d of this
9    Act;
10        5. The amount of tax due;
11        5-5. The signature of the taxpayer; and
12        6. Such other reasonable information as the Department
13    may require.
14    If a taxpayer fails to sign a return within 30 days after
15the proper notice and demand for signature by the Department,
16the return shall be considered valid and any amount shown to be
17due on the return shall be deemed assessed.
18    Beginning October 1, 1993, a taxpayer who has an average
19monthly tax liability of $150,000 or more shall make all
20payments required by rules of the Department by electronic
21funds transfer. Beginning October 1, 1994, a taxpayer who has
22an average monthly tax liability of $100,000 or more shall make
23all payments required by rules of the Department by electronic
24funds transfer. Beginning October 1, 1995, a taxpayer who has
25an average monthly tax liability of $50,000 or more shall make
26all payments required by rules of the Department by electronic

 

 

09800SB0020ham002- 155 -LRB098 04192 HLH 46677 a

1funds transfer. Beginning October 1, 2000, a taxpayer who has
2an annual tax liability of $200,000 or more shall make all
3payments required by rules of the Department by electronic
4funds transfer. The term "annual tax liability" shall be the
5sum of the taxpayer's liabilities under this Act, and under all
6other State and local occupation and use tax laws administered
7by the Department, for the immediately preceding calendar year.
8The term "average monthly tax liability" means the sum of the
9taxpayer's liabilities under this Act, and under all other
10State and local occupation and use tax laws administered by the
11Department, for the immediately preceding calendar year
12divided by 12. Beginning on October 1, 2002, a taxpayer who has
13a tax liability in the amount set forth in subsection (b) of
14Section 2505-210 of the Department of Revenue Law shall make
15all payments required by rules of the Department by electronic
16funds transfer.
17    Before August 1 of each year beginning in 1993, the
18Department shall notify all taxpayers required to make payments
19by electronic funds transfer. All taxpayers required to make
20payments by electronic funds transfer shall make those payments
21for a minimum of one year beginning on October 1.
22    Any taxpayer not required to make payments by electronic
23funds transfer may make payments by electronic funds transfer
24with the permission of the Department.
25    All taxpayers required to make payment by electronic funds
26transfer and any taxpayers authorized to voluntarily make

 

 

09800SB0020ham002- 156 -LRB098 04192 HLH 46677 a

1payments by electronic funds transfer shall make those payments
2in the manner authorized by the Department.
3    The Department shall adopt such rules as are necessary to
4effectuate a program of electronic funds transfer and the
5requirements of this Section.
6    Before October 1, 2000, if the taxpayer's average monthly
7tax liability to the Department under this Act, the Retailers'
8Occupation Tax Act, the Service Occupation Tax Act, the Service
9Use Tax Act was $10,000 or more during the preceding 4 complete
10calendar quarters, he shall file a return with the Department
11each month by the 20th day of the month next following the
12month during which such tax liability is incurred and shall
13make payments to the Department on or before the 7th, 15th,
1422nd and last day of the month during which such liability is
15incurred. On and after October 1, 2000, if the taxpayer's
16average monthly tax liability to the Department under this Act,
17the Retailers' Occupation Tax Act, the Service Occupation Tax
18Act, and the Service Use Tax Act was $20,000 or more during the
19preceding 4 complete calendar quarters, he shall file a return
20with the Department each month by the 20th day of the month
21next following the month during which such tax liability is
22incurred and shall make payment to the Department on or before
23the 7th, 15th, 22nd and last day of the month during which such
24liability is incurred. If the month during which such tax
25liability is incurred began prior to January 1, 1985, each
26payment shall be in an amount equal to 1/4 of the taxpayer's

 

 

09800SB0020ham002- 157 -LRB098 04192 HLH 46677 a

1actual liability for the month or an amount set by the
2Department not to exceed 1/4 of the average monthly liability
3of the taxpayer to the Department for the preceding 4 complete
4calendar quarters (excluding the month of highest liability and
5the month of lowest liability in such 4 quarter period). If the
6month during which such tax liability is incurred begins on or
7after January 1, 1985, and prior to January 1, 1987, each
8payment shall be in an amount equal to 22.5% of the taxpayer's
9actual liability for the month or 27.5% of the taxpayer's
10liability for the same calendar month of the preceding year. If
11the month during which such tax liability is incurred begins on
12or after January 1, 1987, and prior to January 1, 1988, each
13payment shall be in an amount equal to 22.5% of the taxpayer's
14actual liability for the month or 26.25% of the taxpayer's
15liability for the same calendar month of the preceding year. If
16the month during which such tax liability is incurred begins on
17or after January 1, 1988, and prior to January 1, 1989, or
18begins on or after January 1, 1996, each payment shall be in an
19amount equal to 22.5% of the taxpayer's actual liability for
20the month or 25% of the taxpayer's liability for the same
21calendar month of the preceding year. If the month during which
22such tax liability is incurred begins on or after January 1,
231989, and prior to January 1, 1996, each payment shall be in an
24amount equal to 22.5% of the taxpayer's actual liability for
25the month or 25% of the taxpayer's liability for the same
26calendar month of the preceding year or 100% of the taxpayer's

 

 

09800SB0020ham002- 158 -LRB098 04192 HLH 46677 a

1actual liability for the quarter monthly reporting period. The
2amount of such quarter monthly payments shall be credited
3against the final tax liability of the taxpayer's return for
4that month. Before October 1, 2000, once applicable, the
5requirement of the making of quarter monthly payments to the
6Department shall continue until such taxpayer's average
7monthly liability to the Department during the preceding 4
8complete calendar quarters (excluding the month of highest
9liability and the month of lowest liability) is less than
10$9,000, or until such taxpayer's average monthly liability to
11the Department as computed for each calendar quarter of the 4
12preceding complete calendar quarter period is less than
13$10,000. However, if a taxpayer can show the Department that a
14substantial change in the taxpayer's business has occurred
15which causes the taxpayer to anticipate that his average
16monthly tax liability for the reasonably foreseeable future
17will fall below the $10,000 threshold stated above, then such
18taxpayer may petition the Department for change in such
19taxpayer's reporting status. On and after October 1, 2000, once
20applicable, the requirement of the making of quarter monthly
21payments to the Department shall continue until such taxpayer's
22average monthly liability to the Department during the
23preceding 4 complete calendar quarters (excluding the month of
24highest liability and the month of lowest liability) is less
25than $19,000 or until such taxpayer's average monthly liability
26to the Department as computed for each calendar quarter of the

 

 

09800SB0020ham002- 159 -LRB098 04192 HLH 46677 a

14 preceding complete calendar quarter period is less than
2$20,000. However, if a taxpayer can show the Department that a
3substantial change in the taxpayer's business has occurred
4which causes the taxpayer to anticipate that his average
5monthly tax liability for the reasonably foreseeable future
6will fall below the $20,000 threshold stated above, then such
7taxpayer may petition the Department for a change in such
8taxpayer's reporting status. The Department shall change such
9taxpayer's reporting status unless it finds that such change is
10seasonal in nature and not likely to be long term. If any such
11quarter monthly payment is not paid at the time or in the
12amount required by this Section, then the taxpayer shall be
13liable for penalties and interest on the difference between the
14minimum amount due and the amount of such quarter monthly
15payment actually and timely paid, except insofar as the
16taxpayer has previously made payments for that month to the
17Department in excess of the minimum payments previously due as
18provided in this Section. The Department shall make reasonable
19rules and regulations to govern the quarter monthly payment
20amount and quarter monthly payment dates for taxpayers who file
21on other than a calendar monthly basis.
22    If any such payment provided for in this Section exceeds
23the taxpayer's liabilities under this Act, the Retailers'
24Occupation Tax Act, the Service Occupation Tax Act and the
25Service Use Tax Act, as shown by an original monthly return,
26the Department shall issue to the taxpayer a credit memorandum

 

 

09800SB0020ham002- 160 -LRB098 04192 HLH 46677 a

1no later than 30 days after the date of payment, which
2memorandum may be submitted by the taxpayer to the Department
3in payment of tax liability subsequently to be remitted by the
4taxpayer to the Department or be assigned by the taxpayer to a
5similar taxpayer under this Act, the Retailers' Occupation Tax
6Act, the Service Occupation Tax Act or the Service Use Tax Act,
7in accordance with reasonable rules and regulations to be
8prescribed by the Department, except that if such excess
9payment is shown on an original monthly return and is made
10after December 31, 1986, no credit memorandum shall be issued,
11unless requested by the taxpayer. If no such request is made,
12the taxpayer may credit such excess payment against tax
13liability subsequently to be remitted by the taxpayer to the
14Department under this Act, the Retailers' Occupation Tax Act,
15the Service Occupation Tax Act or the Service Use Tax Act, in
16accordance with reasonable rules and regulations prescribed by
17the Department. If the Department subsequently determines that
18all or any part of the credit taken was not actually due to the
19taxpayer, the taxpayer's 2.1% or 1.75% vendor's discount shall
20be reduced by 2.1% or 1.75% of the difference between the
21credit taken and that actually due, and the taxpayer shall be
22liable for penalties and interest on such difference.
23    If the retailer is otherwise required to file a monthly
24return and if the retailer's average monthly tax liability to
25the Department does not exceed $200, the Department may
26authorize his returns to be filed on a quarter annual basis,

 

 

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1with the return for January, February, and March of a given
2year being due by April 20 of such year; with the return for
3April, May and June of a given year being due by July 20 of such
4year; with the return for July, August and September of a given
5year being due by October 20 of such year, and with the return
6for October, November and December of a given year being due by
7January 20 of the following year.
8    If the retailer is otherwise required to file a monthly or
9quarterly return and if the retailer's average monthly tax
10liability to the Department does not exceed $50, the Department
11may authorize his returns to be filed on an annual basis, with
12the return for a given year being due by January 20 of the
13following year.
14    Such quarter annual and annual returns, as to form and
15substance, shall be subject to the same requirements as monthly
16returns.
17    Notwithstanding any other provision in this Act concerning
18the time within which a retailer may file his return, in the
19case of any retailer who ceases to engage in a kind of business
20which makes him responsible for filing returns under this Act,
21such retailer shall file a final return under this Act with the
22Department not more than one month after discontinuing such
23business.
24    In addition, with respect to motor vehicles, watercraft,
25aircraft, and trailers that are required to be registered with
26an agency of this State, every retailer selling this kind of

 

 

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1tangible personal property shall file, with the Department,
2upon a form to be prescribed and supplied by the Department, a
3separate return for each such item of tangible personal
4property which the retailer sells, except that if, in the same
5transaction, (i) a retailer of aircraft, watercraft, motor
6vehicles or trailers transfers more than one aircraft,
7watercraft, motor vehicle or trailer to another aircraft,
8watercraft, motor vehicle or trailer retailer for the purpose
9of resale or (ii) a retailer of aircraft, watercraft, motor
10vehicles, or trailers transfers more than one aircraft,
11watercraft, motor vehicle, or trailer to a purchaser for use as
12a qualifying rolling stock as provided in Section 3-55 of this
13Act, then that seller may report the transfer of all the
14aircraft, watercraft, motor vehicles or trailers involved in
15that transaction to the Department on the same uniform
16invoice-transaction reporting return form. For purposes of
17this Section, "watercraft" means a Class 2, Class 3, or Class 4
18watercraft as defined in Section 3-2 of the Boat Registration
19and Safety Act, a personal watercraft, or any boat equipped
20with an inboard motor.
21    The transaction reporting return in the case of motor
22vehicles or trailers that are required to be registered with an
23agency of this State, shall be the same document as the Uniform
24Invoice referred to in Section 5-402 of the Illinois Vehicle
25Code and must show the name and address of the seller; the name
26and address of the purchaser; the amount of the selling price

 

 

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1including the amount allowed by the retailer for traded-in
2property, if any; the amount allowed by the retailer for the
3traded-in tangible personal property, if any, to the extent to
4which Section 2 of this Act allows an exemption for the value
5of traded-in property; the balance payable after deducting such
6trade-in allowance from the total selling price; the amount of
7tax due from the retailer with respect to such transaction; the
8amount of tax collected from the purchaser by the retailer on
9such transaction (or satisfactory evidence that such tax is not
10due in that particular instance, if that is claimed to be the
11fact); the place and date of the sale; a sufficient
12identification of the property sold; such other information as
13is required in Section 5-402 of the Illinois Vehicle Code, and
14such other information as the Department may reasonably
15require.
16    The transaction reporting return in the case of watercraft
17and aircraft must show the name and address of the seller; the
18name and address of the purchaser; the amount of the selling
19price including the amount allowed by the retailer for
20traded-in property, if any; the amount allowed by the retailer
21for the traded-in tangible personal property, if any, to the
22extent to which Section 2 of this Act allows an exemption for
23the value of traded-in property; the balance payable after
24deducting such trade-in allowance from the total selling price;
25the amount of tax due from the retailer with respect to such
26transaction; the amount of tax collected from the purchaser by

 

 

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1the retailer on such transaction (or satisfactory evidence that
2such tax is not due in that particular instance, if that is
3claimed to be the fact); the place and date of the sale, a
4sufficient identification of the property sold, and such other
5information as the Department may reasonably require.
6    Such transaction reporting return shall be filed not later
7than 20 days after the date of delivery of the item that is
8being sold, but may be filed by the retailer at any time sooner
9than that if he chooses to do so. The transaction reporting
10return and tax remittance or proof of exemption from the tax
11that is imposed by this Act may be transmitted to the
12Department by way of the State agency with which, or State
13officer with whom, the tangible personal property must be
14titled or registered (if titling or registration is required)
15if the Department and such agency or State officer determine
16that this procedure will expedite the processing of
17applications for title or registration.
18    With each such transaction reporting return, the retailer
19shall remit the proper amount of tax due (or shall submit
20satisfactory evidence that the sale is not taxable if that is
21the case), to the Department or its agents, whereupon the
22Department shall issue, in the purchaser's name, a tax receipt
23(or a certificate of exemption if the Department is satisfied
24that the particular sale is tax exempt) which such purchaser
25may submit to the agency with which, or State officer with
26whom, he must title or register the tangible personal property

 

 

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1that is involved (if titling or registration is required) in
2support of such purchaser's application for an Illinois
3certificate or other evidence of title or registration to such
4tangible personal property.
5    No retailer's failure or refusal to remit tax under this
6Act precludes a user, who has paid the proper tax to the
7retailer, from obtaining his certificate of title or other
8evidence of title or registration (if titling or registration
9is required) upon satisfying the Department that such user has
10paid the proper tax (if tax is due) to the retailer. The
11Department shall adopt appropriate rules to carry out the
12mandate of this paragraph.
13    If the user who would otherwise pay tax to the retailer
14wants the transaction reporting return filed and the payment of
15tax or proof of exemption made to the Department before the
16retailer is willing to take these actions and such user has not
17paid the tax to the retailer, such user may certify to the fact
18of such delay by the retailer, and may (upon the Department
19being satisfied of the truth of such certification) transmit
20the information required by the transaction reporting return
21and the remittance for tax or proof of exemption directly to
22the Department and obtain his tax receipt or exemption
23determination, in which event the transaction reporting return
24and tax remittance (if a tax payment was required) shall be
25credited by the Department to the proper retailer's account
26with the Department, but without the 2.1% or 1.75% discount

 

 

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1provided for in this Section being allowed. When the user pays
2the tax directly to the Department, he shall pay the tax in the
3same amount and in the same form in which it would be remitted
4if the tax had been remitted to the Department by the retailer.
5    Where a retailer collects the tax with respect to the
6selling price of tangible personal property which he sells and
7the purchaser thereafter returns such tangible personal
8property and the retailer refunds the selling price thereof to
9the purchaser, such retailer shall also refund, to the
10purchaser, the tax so collected from the purchaser. When filing
11his return for the period in which he refunds such tax to the
12purchaser, the retailer may deduct the amount of the tax so
13refunded by him to the purchaser from any other use tax which
14such retailer may be required to pay or remit to the
15Department, as shown by such return, if the amount of the tax
16to be deducted was previously remitted to the Department by
17such retailer. If the retailer has not previously remitted the
18amount of such tax to the Department, he is entitled to no
19deduction under this Act upon refunding such tax to the
20purchaser.
21    Any retailer filing a return under this Section shall also
22include (for the purpose of paying tax thereon) the total tax
23covered by such return upon the selling price of tangible
24personal property purchased by him at retail from a retailer,
25but as to which the tax imposed by this Act was not collected
26from the retailer filing such return, and such retailer shall

 

 

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1remit the amount of such tax to the Department when filing such
2return.
3    If experience indicates such action to be practicable, the
4Department may prescribe and furnish a combination or joint
5return which will enable retailers, who are required to file
6returns hereunder and also under the Retailers' Occupation Tax
7Act, to furnish all the return information required by both
8Acts on the one form.
9    Where the retailer has more than one business registered
10with the Department under separate registration under this Act,
11such retailer may not file each return that is due as a single
12return covering all such registered businesses, but shall file
13separate returns for each such registered business.
14    Beginning January 1, 1990, each month the Department shall
15pay into the State and Local Sales Tax Reform Fund, a special
16fund in the State Treasury which is hereby created, the net
17revenue realized for the preceding month from the 1% tax on
18sales of food for human consumption which is to be consumed off
19the premises where it is sold (other than alcoholic beverages,
20soft drinks and food which has been prepared for immediate
21consumption) and prescription and nonprescription medicines,
22drugs, medical appliances and insulin, urine testing
23materials, syringes and needles used by diabetics.
24    Beginning January 1, 1990, each month the Department shall
25pay into the County and Mass Transit District Fund 4% of the
26net revenue realized for the preceding month from the 6.25%

 

 

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1general rate on the selling price of tangible personal property
2which is purchased outside Illinois at retail from a retailer
3and which is titled or registered by an agency of this State's
4government.
5    Beginning January 1, 1990, each month the Department shall
6pay into the State and Local Sales Tax Reform Fund, a special
7fund in the State Treasury, 20% of the net revenue realized for
8the preceding month from the 6.25% general rate on the selling
9price of tangible personal property, other than tangible
10personal property which is purchased outside Illinois at retail
11from a retailer and which is titled or registered by an agency
12of this State's government.
13    Beginning August 1, 2000, each month the Department shall
14pay into the State and Local Sales Tax Reform Fund 100% of the
15net revenue realized for the preceding month from the 1.25%
16rate on the selling price of motor fuel and gasohol. Beginning
17September 1, 2010, each month the Department shall pay into the
18State and Local Sales Tax Reform Fund 100% of the net revenue
19realized for the preceding month from the 1.25% rate on the
20selling price of sales tax holiday items.
21    Beginning January 1, 1990, each month the Department shall
22pay into the Local Government Tax Fund 16% of the net revenue
23realized for the preceding month from the 6.25% general rate on
24the selling price of tangible personal property which is
25purchased outside Illinois at retail from a retailer and which
26is titled or registered by an agency of this State's

 

 

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1government.
2    Beginning October 1, 2009, each month the Department shall
3pay into the Capital Projects Fund an amount that is equal to
4an amount estimated by the Department to represent 80% of the
5net revenue realized for the preceding month from the sale of
6candy, grooming and hygiene products, and soft drinks that had
7been taxed at a rate of 1% prior to September 1, 2009 but that
8is now taxed at 6.25%.
9    Beginning July 1, 2011, each month the Department shall pay
10into the Clean Air Act (CAA) Permit Fund 80% of the net revenue
11realized for the preceding month from the 6.25% general rate on
12the selling price of sorbents used in Illinois in the process
13of sorbent injection as used to comply with the Environmental
14Protection Act or the federal Clean Air Act, but the total
15payment into the Clean Air Act (CAA) Permit Fund under this Act
16and the Retailers' Occupation Tax Act shall not exceed
17$2,000,000 in any fiscal year.
18    Beginning July 1, 2013, each month the Department shall pay
19into the Underground Storage Tank Fund from the proceeds
20collected under this Act, the Service Use Tax Act, the Service
21Occupation Tax Act, and the Retailers' Occupation Tax Act an
22amount equal to the average monthly deficit in the Underground
23Storage Tank Fund during the prior year, as certified annually
24by the Illinois Environmental Protection Agency, but the total
25payment into the Underground Storage Tank Fund under this Act,
26the Service Use Tax Act, the Service Occupation Tax Act, and

 

 

09800SB0020ham002- 170 -LRB098 04192 HLH 46677 a

1the Retailers' Occupation Tax Act shall not exceed $18,000,000
2in any State fiscal year. As used in this paragraph, the
3"average monthly deficit" shall be equal to the difference
4between the average monthly claims for payment by the fund and
5the average monthly revenues deposited into the fund, excluding
6payments made pursuant to this paragraph.
7    Of the remainder of the moneys received by the Department
8pursuant to this Act, (a) 1.75% thereof shall be paid into the
9Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
10and after July 1, 1989, 3.8% thereof shall be paid into the
11Build Illinois Fund; provided, however, that if in any fiscal
12year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
13may be, of the moneys received by the Department and required
14to be paid into the Build Illinois Fund pursuant to Section 3
15of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
16Act, Section 9 of the Service Use Tax Act, and Section 9 of the
17Service Occupation Tax Act, such Acts being hereinafter called
18the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
19may be, of moneys being hereinafter called the "Tax Act
20Amount", and (2) the amount transferred to the Build Illinois
21Fund from the State and Local Sales Tax Reform Fund shall be
22less than the Annual Specified Amount (as defined in Section 3
23of the Retailers' Occupation Tax Act), an amount equal to the
24difference shall be immediately paid into the Build Illinois
25Fund from other moneys received by the Department pursuant to
26the Tax Acts; and further provided, that if on the last

 

 

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1business day of any month the sum of (1) the Tax Act Amount
2required to be deposited into the Build Illinois Bond Account
3in the Build Illinois Fund during such month and (2) the amount
4transferred during such month to the Build Illinois Fund from
5the State and Local Sales Tax Reform Fund shall have been less
6than 1/12 of the Annual Specified Amount, an amount equal to
7the difference shall be immediately paid into the Build
8Illinois Fund from other moneys received by the Department
9pursuant to the Tax Acts; and, further provided, that in no
10event shall the payments required under the preceding proviso
11result in aggregate payments into the Build Illinois Fund
12pursuant to this clause (b) for any fiscal year in excess of
13the greater of (i) the Tax Act Amount or (ii) the Annual
14Specified Amount for such fiscal year; and, further provided,
15that the amounts payable into the Build Illinois Fund under
16this clause (b) shall be payable only until such time as the
17aggregate amount on deposit under each trust indenture securing
18Bonds issued and outstanding pursuant to the Build Illinois
19Bond Act is sufficient, taking into account any future
20investment income, to fully provide, in accordance with such
21indenture, for the defeasance of or the payment of the
22principal of, premium, if any, and interest on the Bonds
23secured by such indenture and on any Bonds expected to be
24issued thereafter and all fees and costs payable with respect
25thereto, all as certified by the Director of the Bureau of the
26Budget (now Governor's Office of Management and Budget). If on

 

 

09800SB0020ham002- 172 -LRB098 04192 HLH 46677 a

1the last business day of any month in which Bonds are
2outstanding pursuant to the Build Illinois Bond Act, the
3aggregate of the moneys deposited in the Build Illinois Bond
4Account in the Build Illinois Fund in such month shall be less
5than the amount required to be transferred in such month from
6the Build Illinois Bond Account to the Build Illinois Bond
7Retirement and Interest Fund pursuant to Section 13 of the
8Build Illinois Bond Act, an amount equal to such deficiency
9shall be immediately paid from other moneys received by the
10Department pursuant to the Tax Acts to the Build Illinois Fund;
11provided, however, that any amounts paid to the Build Illinois
12Fund in any fiscal year pursuant to this sentence shall be
13deemed to constitute payments pursuant to clause (b) of the
14preceding sentence and shall reduce the amount otherwise
15payable for such fiscal year pursuant to clause (b) of the
16preceding sentence. The moneys received by the Department
17pursuant to this Act and required to be deposited into the
18Build Illinois Fund are subject to the pledge, claim and charge
19set forth in Section 12 of the Build Illinois Bond Act.
20    Subject to payment of amounts into the Build Illinois Fund
21as provided in the preceding paragraph or in any amendment
22thereto hereafter enacted, the following specified monthly
23installment of the amount requested in the certificate of the
24Chairman of the Metropolitan Pier and Exposition Authority
25provided under Section 8.25f of the State Finance Act, but not
26in excess of the sums designated as "Total Deposit", shall be

 

 

09800SB0020ham002- 173 -LRB098 04192 HLH 46677 a

1deposited in the aggregate from collections under Section 9 of
2the Use Tax Act, Section 9 of the Service Use Tax Act, Section
39 of the Service Occupation Tax Act, and Section 3 of the
4Retailers' Occupation Tax Act into the McCormick Place
5Expansion Project Fund in the specified fiscal years.
6Fiscal YearTotal Deposit
71993         $0
81994 53,000,000
91995 58,000,000
101996 61,000,000
111997 64,000,000
121998 68,000,000
131999 71,000,000
142000 75,000,000
152001 80,000,000
162002 93,000,000
172003 99,000,000
182004103,000,000
192005108,000,000
202006113,000,000
212007119,000,000
222008126,000,000
232009132,000,000
242010139,000,000
252011146,000,000
262012153,000,000

 

 

09800SB0020ham002- 174 -LRB098 04192 HLH 46677 a

12013161,000,000
22014170,000,000
32015179,000,000
42016189,000,000
52017199,000,000
62018210,000,000
72019221,000,000
82020233,000,000
92021246,000,000
102022260,000,000
112023275,000,000
122024 275,000,000
132025 275,000,000
142026 279,000,000
152027 292,000,000
162028 307,000,000
172029 322,000,000
182030 338,000,000
192031 350,000,000
202032 350,000,000
21and
22each fiscal year
23thereafter that bonds
24are outstanding under
25Section 13.2 of the
26Metropolitan Pier and

 

 

09800SB0020ham002- 175 -LRB098 04192 HLH 46677 a

1Exposition Authority Act,
2but not after fiscal year 2060.
3    Beginning July 20, 1993 and in each month of each fiscal
4year thereafter, one-eighth of the amount requested in the
5certificate of the Chairman of the Metropolitan Pier and
6Exposition Authority for that fiscal year, less the amount
7deposited into the McCormick Place Expansion Project Fund by
8the State Treasurer in the respective month under subsection
9(g) of Section 13 of the Metropolitan Pier and Exposition
10Authority Act, plus cumulative deficiencies in the deposits
11required under this Section for previous months and years,
12shall be deposited into the McCormick Place Expansion Project
13Fund, until the full amount requested for the fiscal year, but
14not in excess of the amount specified above as "Total Deposit",
15has been deposited.
16    Subject to payment of amounts into the Build Illinois Fund
17and the McCormick Place Expansion Project Fund pursuant to the
18preceding paragraphs or in any amendments thereto hereafter
19enacted, beginning July 1, 1993, the Department shall each
20month pay into the Illinois Tax Increment Fund 0.27% of 80% of
21the net revenue realized for the preceding month from the 6.25%
22general rate on the selling price of tangible personal
23property.
24    Subject to payment of amounts into the Build Illinois Fund
25and the McCormick Place Expansion Project Fund pursuant to the
26preceding paragraphs or in any amendments thereto hereafter

 

 

09800SB0020ham002- 176 -LRB098 04192 HLH 46677 a

1enacted, beginning with the receipt of the first report of
2taxes paid by an eligible business and continuing for a 25-year
3period, the Department shall each month pay into the Energy
4Infrastructure Fund 80% of the net revenue realized from the
56.25% general rate on the selling price of Illinois-mined coal
6that was sold to an eligible business. For purposes of this
7paragraph, the term "eligible business" means a new electric
8generating facility certified pursuant to Section 605-332 of
9the Department of Commerce and Economic Opportunity Law of the
10Civil Administrative Code of Illinois.
11    Of the remainder of the moneys received by the Department
12pursuant to this Act, 75% thereof shall be paid into the State
13Treasury and 25% shall be reserved in a special account and
14used only for the transfer to the Common School Fund as part of
15the monthly transfer from the General Revenue Fund in
16accordance with Section 8a of the State Finance Act.
17    As soon as possible after the first day of each month, upon
18certification of the Department of Revenue, the Comptroller
19shall order transferred and the Treasurer shall transfer from
20the General Revenue Fund to the Motor Fuel Tax Fund an amount
21equal to 1.7% of 80% of the net revenue realized under this Act
22for the second preceding month. Beginning April 1, 2000, this
23transfer is no longer required and shall not be made.
24    Net revenue realized for a month shall be the revenue
25collected by the State pursuant to this Act, less the amount
26paid out during that month as refunds to taxpayers for

 

 

09800SB0020ham002- 177 -LRB098 04192 HLH 46677 a

1overpayment of liability.
2    For greater simplicity of administration, manufacturers,
3importers and wholesalers whose products are sold at retail in
4Illinois by numerous retailers, and who wish to do so, may
5assume the responsibility for accounting and paying to the
6Department all tax accruing under this Act with respect to such
7sales, if the retailers who are affected do not make written
8objection to the Department to this arrangement.
9(Source: P.A. 96-34, eff. 7-13-09; 96-38, eff. 7-13-09; 96-898,
10eff. 5-27-10; 96-1012, eff. 7-7-10; 97-95, eff. 7-12-11;
1197-333, eff. 8-12-11.)
 
12    Section 5-35. The Service Use Tax Act is amended by
13changing Section 9 as follows:
 
14    (35 ILCS 110/9)  (from Ch. 120, par. 439.39)
15    Sec. 9. Each serviceman required or authorized to collect
16the tax herein imposed shall pay to the Department the amount
17of such tax (except as otherwise provided) at the time when he
18is required to file his return for the period during which such
19tax was collected, less a discount of 2.1% prior to January 1,
201990 and 1.75% on and after January 1, 1990, or $5 per calendar
21year, whichever is greater, which is allowed to reimburse the
22serviceman for expenses incurred in collecting the tax, keeping
23records, preparing and filing returns, remitting the tax and
24supplying data to the Department on request. A serviceman need

 

 

09800SB0020ham002- 178 -LRB098 04192 HLH 46677 a

1not remit that part of any tax collected by him to the extent
2that he is required to pay and does pay the tax imposed by the
3Service Occupation Tax Act with respect to his sale of service
4involving the incidental transfer by him of the same property.
5    Except as provided hereinafter in this Section, on or
6before the twentieth day of each calendar month, such
7serviceman shall file a return for the preceding calendar month
8in accordance with reasonable Rules and Regulations to be
9promulgated by the Department. Such return shall be filed on a
10form prescribed by the Department and shall contain such
11information as the Department may reasonably require.
12    The Department may require returns to be filed on a
13quarterly basis. If so required, a return for each calendar
14quarter shall be filed on or before the twentieth day of the
15calendar month following the end of such calendar quarter. The
16taxpayer shall also file a return with the Department for each
17of the first two months of each calendar quarter, on or before
18the twentieth day of the following calendar month, stating:
19        1. The name of the seller;
20        2. The address of the principal place of business from
21    which he engages in business as a serviceman in this State;
22        3. The total amount of taxable receipts received by him
23    during the preceding calendar month, including receipts
24    from charge and time sales, but less all deductions allowed
25    by law;
26        4. The amount of credit provided in Section 2d of this

 

 

09800SB0020ham002- 179 -LRB098 04192 HLH 46677 a

1    Act;
2        5. The amount of tax due;
3        5-5. The signature of the taxpayer; and
4        6. Such other reasonable information as the Department
5    may require.
6    If a taxpayer fails to sign a return within 30 days after
7the proper notice and demand for signature by the Department,
8the return shall be considered valid and any amount shown to be
9due on the return shall be deemed assessed.
10    Beginning October 1, 1993, a taxpayer who has an average
11monthly tax liability of $150,000 or more shall make all
12payments required by rules of the Department by electronic
13funds transfer. Beginning October 1, 1994, a taxpayer who has
14an average monthly tax liability of $100,000 or more shall make
15all payments required by rules of the Department by electronic
16funds transfer. Beginning October 1, 1995, a taxpayer who has
17an average monthly tax liability of $50,000 or more shall make
18all payments required by rules of the Department by electronic
19funds transfer. Beginning October 1, 2000, a taxpayer who has
20an annual tax liability of $200,000 or more shall make all
21payments required by rules of the Department by electronic
22funds transfer. The term "annual tax liability" shall be the
23sum of the taxpayer's liabilities under this Act, and under all
24other State and local occupation and use tax laws administered
25by the Department, for the immediately preceding calendar year.
26The term "average monthly tax liability" means the sum of the

 

 

09800SB0020ham002- 180 -LRB098 04192 HLH 46677 a

1taxpayer's liabilities under this Act, and under all other
2State and local occupation and use tax laws administered by the
3Department, for the immediately preceding calendar year
4divided by 12. Beginning on October 1, 2002, a taxpayer who has
5a tax liability in the amount set forth in subsection (b) of
6Section 2505-210 of the Department of Revenue Law shall make
7all payments required by rules of the Department by electronic
8funds transfer.
9    Before August 1 of each year beginning in 1993, the
10Department shall notify all taxpayers required to make payments
11by electronic funds transfer. All taxpayers required to make
12payments by electronic funds transfer shall make those payments
13for a minimum of one year beginning on October 1.
14    Any taxpayer not required to make payments by electronic
15funds transfer may make payments by electronic funds transfer
16with the permission of the Department.
17    All taxpayers required to make payment by electronic funds
18transfer and any taxpayers authorized to voluntarily make
19payments by electronic funds transfer shall make those payments
20in the manner authorized by the Department.
21    The Department shall adopt such rules as are necessary to
22effectuate a program of electronic funds transfer and the
23requirements of this Section.
24    If the serviceman is otherwise required to file a monthly
25return and if the serviceman's average monthly tax liability to
26the Department does not exceed $200, the Department may

 

 

09800SB0020ham002- 181 -LRB098 04192 HLH 46677 a

1authorize his returns to be filed on a quarter annual basis,
2with the return for January, February and March of a given year
3being due by April 20 of such year; with the return for April,
4May and June of a given year being due by July 20 of such year;
5with the return for July, August and September of a given year
6being due by October 20 of such year, and with the return for
7October, November and December of a given year being due by
8January 20 of the following year.
9    If the serviceman is otherwise required to file a monthly
10or quarterly return and if the serviceman's average monthly tax
11liability to the Department does not exceed $50, the Department
12may authorize his returns to be filed on an annual basis, with
13the return for a given year being due by January 20 of the
14following year.
15    Such quarter annual and annual returns, as to form and
16substance, shall be subject to the same requirements as monthly
17returns.
18    Notwithstanding any other provision in this Act concerning
19the time within which a serviceman may file his return, in the
20case of any serviceman who ceases to engage in a kind of
21business which makes him responsible for filing returns under
22this Act, such serviceman shall file a final return under this
23Act with the Department not more than 1 month after
24discontinuing such business.
25    Where a serviceman collects the tax with respect to the
26selling price of property which he sells and the purchaser

 

 

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1thereafter returns such property and the serviceman refunds the
2selling price thereof to the purchaser, such serviceman shall
3also refund, to the purchaser, the tax so collected from the
4purchaser. When filing his return for the period in which he
5refunds such tax to the purchaser, the serviceman may deduct
6the amount of the tax so refunded by him to the purchaser from
7any other Service Use Tax, Service Occupation Tax, retailers'
8occupation tax or use tax which such serviceman may be required
9to pay or remit to the Department, as shown by such return,
10provided that the amount of the tax to be deducted shall
11previously have been remitted to the Department by such
12serviceman. If the serviceman shall not previously have
13remitted the amount of such tax to the Department, he shall be
14entitled to no deduction hereunder upon refunding such tax to
15the purchaser.
16    Any serviceman filing a return hereunder shall also include
17the total tax upon the selling price of tangible personal
18property purchased for use by him as an incident to a sale of
19service, and such serviceman shall remit the amount of such tax
20to the Department when filing such return.
21    If experience indicates such action to be practicable, the
22Department may prescribe and furnish a combination or joint
23return which will enable servicemen, who are required to file
24returns hereunder and also under the Service Occupation Tax
25Act, to furnish all the return information required by both
26Acts on the one form.

 

 

09800SB0020ham002- 183 -LRB098 04192 HLH 46677 a

1    Where the serviceman has more than one business registered
2with the Department under separate registration hereunder,
3such serviceman shall not file each return that is due as a
4single return covering all such registered businesses, but
5shall file separate returns for each such registered business.
6    Beginning January 1, 1990, each month the Department shall
7pay into the State and Local Tax Reform Fund, a special fund in
8the State Treasury, the net revenue realized for the preceding
9month from the 1% tax on sales of food for human consumption
10which is to be consumed off the premises where it is sold
11(other than alcoholic beverages, soft drinks and food which has
12been prepared for immediate consumption) and prescription and
13nonprescription medicines, drugs, medical appliances and
14insulin, urine testing materials, syringes and needles used by
15diabetics.
16    Beginning January 1, 1990, each month the Department shall
17pay into the State and Local Sales Tax Reform Fund 20% of the
18net revenue realized for the preceding month from the 6.25%
19general rate on transfers of tangible personal property, other
20than tangible personal property which is purchased outside
21Illinois at retail from a retailer and which is titled or
22registered by an agency of this State's government.
23    Beginning August 1, 2000, each month the Department shall
24pay into the State and Local Sales Tax Reform Fund 100% of the
25net revenue realized for the preceding month from the 1.25%
26rate on the selling price of motor fuel and gasohol.

 

 

09800SB0020ham002- 184 -LRB098 04192 HLH 46677 a

1    Beginning October 1, 2009, each month the Department shall
2pay into the Capital Projects Fund an amount that is equal to
3an amount estimated by the Department to represent 80% of the
4net revenue realized for the preceding month from the sale of
5candy, grooming and hygiene products, and soft drinks that had
6been taxed at a rate of 1% prior to September 1, 2009 but that
7is now taxed at 6.25%.
8    Beginning July 1, 2013, each month the Department shall pay
9into the Underground Storage Tank Fund from the proceeds
10collected under this Act, the Use Tax Act, the Service
11Occupation Tax Act, and the Retailers' Occupation Tax Act an
12amount equal to the average monthly deficit in the Underground
13Storage Tank Fund during the prior year, as certified annually
14by the Illinois Environmental Protection Agency, but the total
15payment into the Underground Storage Tank Fund under this Act,
16the Use Tax Act, the Service Occupation Tax Act, and the
17Retailers' Occupation Tax Act shall not exceed $18,000,000 in
18any State fiscal year. As used in this paragraph, the "average
19monthly deficit" shall be equal to the difference between the
20average monthly claims for payment by the fund and the average
21monthly revenues deposited into the fund, excluding payments
22made pursuant to this paragraph.
23    Of the remainder of the moneys received by the Department
24pursuant to this Act, (a) 1.75% thereof shall be paid into the
25Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
26and after July 1, 1989, 3.8% thereof shall be paid into the

 

 

09800SB0020ham002- 185 -LRB098 04192 HLH 46677 a

1Build Illinois Fund; provided, however, that if in any fiscal
2year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
3may be, of the moneys received by the Department and required
4to be paid into the Build Illinois Fund pursuant to Section 3
5of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
6Act, Section 9 of the Service Use Tax Act, and Section 9 of the
7Service Occupation Tax Act, such Acts being hereinafter called
8the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
9may be, of moneys being hereinafter called the "Tax Act
10Amount", and (2) the amount transferred to the Build Illinois
11Fund from the State and Local Sales Tax Reform Fund shall be
12less than the Annual Specified Amount (as defined in Section 3
13of the Retailers' Occupation Tax Act), an amount equal to the
14difference shall be immediately paid into the Build Illinois
15Fund from other moneys received by the Department pursuant to
16the Tax Acts; and further provided, that if on the last
17business day of any month the sum of (1) the Tax Act Amount
18required to be deposited into the Build Illinois Bond Account
19in the Build Illinois Fund during such month and (2) the amount
20transferred during such month to the Build Illinois Fund from
21the State and Local Sales Tax Reform Fund shall have been less
22than 1/12 of the Annual Specified Amount, an amount equal to
23the difference shall be immediately paid into the Build
24Illinois Fund from other moneys received by the Department
25pursuant to the Tax Acts; and, further provided, that in no
26event shall the payments required under the preceding proviso

 

 

09800SB0020ham002- 186 -LRB098 04192 HLH 46677 a

1result in aggregate payments into the Build Illinois Fund
2pursuant to this clause (b) for any fiscal year in excess of
3the greater of (i) the Tax Act Amount or (ii) the Annual
4Specified Amount for such fiscal year; and, further provided,
5that the amounts payable into the Build Illinois Fund under
6this clause (b) shall be payable only until such time as the
7aggregate amount on deposit under each trust indenture securing
8Bonds issued and outstanding pursuant to the Build Illinois
9Bond Act is sufficient, taking into account any future
10investment income, to fully provide, in accordance with such
11indenture, for the defeasance of or the payment of the
12principal of, premium, if any, and interest on the Bonds
13secured by such indenture and on any Bonds expected to be
14issued thereafter and all fees and costs payable with respect
15thereto, all as certified by the Director of the Bureau of the
16Budget (now Governor's Office of Management and Budget). If on
17the last business day of any month in which Bonds are
18outstanding pursuant to the Build Illinois Bond Act, the
19aggregate of the moneys deposited in the Build Illinois Bond
20Account in the Build Illinois Fund in such month shall be less
21than the amount required to be transferred in such month from
22the Build Illinois Bond Account to the Build Illinois Bond
23Retirement and Interest Fund pursuant to Section 13 of the
24Build Illinois Bond Act, an amount equal to such deficiency
25shall be immediately paid from other moneys received by the
26Department pursuant to the Tax Acts to the Build Illinois Fund;

 

 

09800SB0020ham002- 187 -LRB098 04192 HLH 46677 a

1provided, however, that any amounts paid to the Build Illinois
2Fund in any fiscal year pursuant to this sentence shall be
3deemed to constitute payments pursuant to clause (b) of the
4preceding sentence and shall reduce the amount otherwise
5payable for such fiscal year pursuant to clause (b) of the
6preceding sentence. The moneys received by the Department
7pursuant to this Act and required to be deposited into the
8Build Illinois Fund are subject to the pledge, claim and charge
9set forth in Section 12 of the Build Illinois Bond Act.
10    Subject to payment of amounts into the Build Illinois Fund
11as provided in the preceding paragraph or in any amendment
12thereto hereafter enacted, the following specified monthly
13installment of the amount requested in the certificate of the
14Chairman of the Metropolitan Pier and Exposition Authority
15provided under Section 8.25f of the State Finance Act, but not
16in excess of the sums designated as "Total Deposit", shall be
17deposited in the aggregate from collections under Section 9 of
18the Use Tax Act, Section 9 of the Service Use Tax Act, Section
199 of the Service Occupation Tax Act, and Section 3 of the
20Retailers' Occupation Tax Act into the McCormick Place
21Expansion Project Fund in the specified fiscal years.
22Fiscal YearTotal Deposit
231993         $0
241994 53,000,000
251995 58,000,000

 

 

09800SB0020ham002- 188 -LRB098 04192 HLH 46677 a

11996 61,000,000
21997 64,000,000
31998 68,000,000
41999 71,000,000
52000 75,000,000
62001 80,000,000
72002 93,000,000
82003 99,000,000
92004103,000,000
102005108,000,000
112006113,000,000
122007119,000,000
132008126,000,000
142009132,000,000
152010139,000,000
162011146,000,000
172012153,000,000
182013161,000,000
192014170,000,000
202015179,000,000
212016189,000,000
222017199,000,000
232018210,000,000
242019221,000,000
252020233,000,000
262021246,000,000

 

 

09800SB0020ham002- 189 -LRB098 04192 HLH 46677 a

12022260,000,000
22023275,000,000
32024 275,000,000
42025 275,000,000
52026 279,000,000
62027 292,000,000
72028 307,000,000
82029 322,000,000
92030 338,000,000
102031 350,000,000
112032 350,000,000
12and
13each fiscal year
14thereafter that bonds
15are outstanding under
16Section 13.2 of the
17Metropolitan Pier and
18Exposition Authority Act,
19but not after fiscal year 2060.
20    Beginning July 20, 1993 and in each month of each fiscal
21year thereafter, one-eighth of the amount requested in the
22certificate of the Chairman of the Metropolitan Pier and
23Exposition Authority for that fiscal year, less the amount
24deposited into the McCormick Place Expansion Project Fund by
25the State Treasurer in the respective month under subsection
26(g) of Section 13 of the Metropolitan Pier and Exposition

 

 

09800SB0020ham002- 190 -LRB098 04192 HLH 46677 a

1Authority Act, plus cumulative deficiencies in the deposits
2required under this Section for previous months and years,
3shall be deposited into the McCormick Place Expansion Project
4Fund, until the full amount requested for the fiscal year, but
5not in excess of the amount specified above as "Total Deposit",
6has been deposited.
7    Subject to payment of amounts into the Build Illinois Fund
8and the McCormick Place Expansion Project Fund pursuant to the
9preceding paragraphs or in any amendments thereto hereafter
10enacted, beginning July 1, 1993, the Department shall each
11month pay into the Illinois Tax Increment Fund 0.27% of 80% of
12the net revenue realized for the preceding month from the 6.25%
13general rate on the selling price of tangible personal
14property.
15    Subject to payment of amounts into the Build Illinois Fund
16and the McCormick Place Expansion Project Fund pursuant to the
17preceding paragraphs or in any amendments thereto hereafter
18enacted, beginning with the receipt of the first report of
19taxes paid by an eligible business and continuing for a 25-year
20period, the Department shall each month pay into the Energy
21Infrastructure Fund 80% of the net revenue realized from the
226.25% general rate on the selling price of Illinois-mined coal
23that was sold to an eligible business. For purposes of this
24paragraph, the term "eligible business" means a new electric
25generating facility certified pursuant to Section 605-332 of
26the Department of Commerce and Economic Opportunity Law of the

 

 

09800SB0020ham002- 191 -LRB098 04192 HLH 46677 a

1Civil Administrative Code of Illinois.
2    All remaining moneys received by the Department pursuant to
3this Act shall be paid into the General Revenue Fund of the
4State Treasury.
5    As soon as possible after the first day of each month, upon
6certification of the Department of Revenue, the Comptroller
7shall order transferred and the Treasurer shall transfer from
8the General Revenue Fund to the Motor Fuel Tax Fund an amount
9equal to 1.7% of 80% of the net revenue realized under this Act
10for the second preceding month. Beginning April 1, 2000, this
11transfer is no longer required and shall not be made.
12    Net revenue realized for a month shall be the revenue
13collected by the State pursuant to this Act, less the amount
14paid out during that month as refunds to taxpayers for
15overpayment of liability.
16(Source: P.A. 96-34, eff. 7-13-09; 96-38, eff. 7-13-09; 96-898,
17eff. 5-27-10.)
 
18    Section 5-37. The Service Occupation Tax Act is amended by
19changing Section 9 as follows:
 
20    (35 ILCS 115/9)  (from Ch. 120, par. 439.109)
21    Sec. 9. Each serviceman required or authorized to collect
22the tax herein imposed shall pay to the Department the amount
23of such tax at the time when he is required to file his return
24for the period during which such tax was collectible, less a

 

 

09800SB0020ham002- 192 -LRB098 04192 HLH 46677 a

1discount of 2.1% prior to January 1, 1990, and 1.75% on and
2after January 1, 1990, or $5 per calendar year, whichever is
3greater, which is allowed to reimburse the serviceman for
4expenses incurred in collecting the tax, keeping records,
5preparing and filing returns, remitting the tax and supplying
6data to the Department on request.
7    Where such tangible personal property is sold under a
8conditional sales contract, or under any other form of sale
9wherein the payment of the principal sum, or a part thereof, is
10extended beyond the close of the period for which the return is
11filed, the serviceman, in collecting the tax may collect, for
12each tax return period, only the tax applicable to the part of
13the selling price actually received during such tax return
14period.
15    Except as provided hereinafter in this Section, on or
16before the twentieth day of each calendar month, such
17serviceman shall file a return for the preceding calendar month
18in accordance with reasonable rules and regulations to be
19promulgated by the Department of Revenue. Such return shall be
20filed on a form prescribed by the Department and shall contain
21such information as the Department may reasonably require.
22    The Department may require returns to be filed on a
23quarterly basis. If so required, a return for each calendar
24quarter shall be filed on or before the twentieth day of the
25calendar month following the end of such calendar quarter. The
26taxpayer shall also file a return with the Department for each

 

 

09800SB0020ham002- 193 -LRB098 04192 HLH 46677 a

1of the first two months of each calendar quarter, on or before
2the twentieth day of the following calendar month, stating:
3        1. The name of the seller;
4        2. The address of the principal place of business from
5    which he engages in business as a serviceman in this State;
6        3. The total amount of taxable receipts received by him
7    during the preceding calendar month, including receipts
8    from charge and time sales, but less all deductions allowed
9    by law;
10        4. The amount of credit provided in Section 2d of this
11    Act;
12        5. The amount of tax due;
13        5-5. The signature of the taxpayer; and
14        6. Such other reasonable information as the Department
15    may require.
16    If a taxpayer fails to sign a return within 30 days after
17the proper notice and demand for signature by the Department,
18the return shall be considered valid and any amount shown to be
19due on the return shall be deemed assessed.
20    Prior to October 1, 2003, and on and after September 1,
212004 a serviceman may accept a Manufacturer's Purchase Credit
22certification from a purchaser in satisfaction of Service Use
23Tax as provided in Section 3-70 of the Service Use Tax Act if
24the purchaser provides the appropriate documentation as
25required by Section 3-70 of the Service Use Tax Act. A
26Manufacturer's Purchase Credit certification, accepted prior

 

 

09800SB0020ham002- 194 -LRB098 04192 HLH 46677 a

1to October 1, 2003 or on or after September 1, 2004 by a
2serviceman as provided in Section 3-70 of the Service Use Tax
3Act, may be used by that serviceman to satisfy Service
4Occupation Tax liability in the amount claimed in the
5certification, not to exceed 6.25% of the receipts subject to
6tax from a qualifying purchase. A Manufacturer's Purchase
7Credit reported on any original or amended return filed under
8this Act after October 20, 2003 for reporting periods prior to
9September 1, 2004 shall be disallowed. Manufacturer's Purchase
10Credit reported on annual returns due on or after January 1,
112005 will be disallowed for periods prior to September 1, 2004.
12No Manufacturer's Purchase Credit may be used after September
1330, 2003 through August 31, 2004 to satisfy any tax liability
14imposed under this Act, including any audit liability.
15    If the serviceman's average monthly tax liability to the
16Department does not exceed $200, the Department may authorize
17his returns to be filed on a quarter annual basis, with the
18return for January, February and March of a given year being
19due by April 20 of such year; with the return for April, May
20and June of a given year being due by July 20 of such year; with
21the return for July, August and September of a given year being
22due by October 20 of such year, and with the return for
23October, November and December of a given year being due by
24January 20 of the following year.
25    If the serviceman's average monthly tax liability to the
26Department does not exceed $50, the Department may authorize

 

 

09800SB0020ham002- 195 -LRB098 04192 HLH 46677 a

1his returns to be filed on an annual basis, with the return for
2a given year being due by January 20 of the following year.
3    Such quarter annual and annual returns, as to form and
4substance, shall be subject to the same requirements as monthly
5returns.
6    Notwithstanding any other provision in this Act concerning
7the time within which a serviceman may file his return, in the
8case of any serviceman who ceases to engage in a kind of
9business which makes him responsible for filing returns under
10this Act, such serviceman shall file a final return under this
11Act with the Department not more than 1 month after
12discontinuing such business.
13    Beginning October 1, 1993, a taxpayer who has an average
14monthly tax liability of $150,000 or more shall make all
15payments required by rules of the Department by electronic
16funds transfer. Beginning October 1, 1994, a taxpayer who has
17an average monthly tax liability of $100,000 or more shall make
18all payments required by rules of the Department by electronic
19funds transfer. Beginning October 1, 1995, a taxpayer who has
20an average monthly tax liability of $50,000 or more shall make
21all payments required by rules of the Department by electronic
22funds transfer. Beginning October 1, 2000, a taxpayer who has
23an annual tax liability of $200,000 or more shall make all
24payments required by rules of the Department by electronic
25funds transfer. The term "annual tax liability" shall be the
26sum of the taxpayer's liabilities under this Act, and under all

 

 

09800SB0020ham002- 196 -LRB098 04192 HLH 46677 a

1other State and local occupation and use tax laws administered
2by the Department, for the immediately preceding calendar year.
3The term "average monthly tax liability" means the sum of the
4taxpayer's liabilities under this Act, and under all other
5State and local occupation and use tax laws administered by the
6Department, for the immediately preceding calendar year
7divided by 12. Beginning on October 1, 2002, a taxpayer who has
8a tax liability in the amount set forth in subsection (b) of
9Section 2505-210 of the Department of Revenue Law shall make
10all payments required by rules of the Department by electronic
11funds transfer.
12    Before August 1 of each year beginning in 1993, the
13Department shall notify all taxpayers required to make payments
14by electronic funds transfer. All taxpayers required to make
15payments by electronic funds transfer shall make those payments
16for a minimum of one year beginning on October 1.
17    Any taxpayer not required to make payments by electronic
18funds transfer may make payments by electronic funds transfer
19with the permission of the Department.
20    All taxpayers required to make payment by electronic funds
21transfer and any taxpayers authorized to voluntarily make
22payments by electronic funds transfer shall make those payments
23in the manner authorized by the Department.
24    The Department shall adopt such rules as are necessary to
25effectuate a program of electronic funds transfer and the
26requirements of this Section.

 

 

09800SB0020ham002- 197 -LRB098 04192 HLH 46677 a

1    Where a serviceman collects the tax with respect to the
2selling price of tangible personal property which he sells and
3the purchaser thereafter returns such tangible personal
4property and the serviceman refunds the selling price thereof
5to the purchaser, such serviceman shall also refund, to the
6purchaser, the tax so collected from the purchaser. When filing
7his return for the period in which he refunds such tax to the
8purchaser, the serviceman may deduct the amount of the tax so
9refunded by him to the purchaser from any other Service
10Occupation Tax, Service Use Tax, Retailers' Occupation Tax or
11Use Tax which such serviceman may be required to pay or remit
12to the Department, as shown by such return, provided that the
13amount of the tax to be deducted shall previously have been
14remitted to the Department by such serviceman. If the
15serviceman shall not previously have remitted the amount of
16such tax to the Department, he shall be entitled to no
17deduction hereunder upon refunding such tax to the purchaser.
18    If experience indicates such action to be practicable, the
19Department may prescribe and furnish a combination or joint
20return which will enable servicemen, who are required to file
21returns hereunder and also under the Retailers' Occupation Tax
22Act, the Use Tax Act or the Service Use Tax Act, to furnish all
23the return information required by all said Acts on the one
24form.
25    Where the serviceman has more than one business registered
26with the Department under separate registrations hereunder,

 

 

09800SB0020ham002- 198 -LRB098 04192 HLH 46677 a

1such serviceman shall file separate returns for each registered
2business.
3    Beginning January 1, 1990, each month the Department shall
4pay into the Local Government Tax Fund the revenue realized for
5the preceding month from the 1% tax on sales of food for human
6consumption which is to be consumed off the premises where it
7is sold (other than alcoholic beverages, soft drinks and food
8which has been prepared for immediate consumption) and
9prescription and nonprescription medicines, drugs, medical
10appliances and insulin, urine testing materials, syringes and
11needles used by diabetics.
12    Beginning January 1, 1990, each month the Department shall
13pay into the County and Mass Transit District Fund 4% of the
14revenue realized for the preceding month from the 6.25% general
15rate.
16    Beginning August 1, 2000, each month the Department shall
17pay into the County and Mass Transit District Fund 20% of the
18net revenue realized for the preceding month from the 1.25%
19rate on the selling price of motor fuel and gasohol.
20    Beginning January 1, 1990, each month the Department shall
21pay into the Local Government Tax Fund 16% of the revenue
22realized for the preceding month from the 6.25% general rate on
23transfers of tangible personal property.
24    Beginning August 1, 2000, each month the Department shall
25pay into the Local Government Tax Fund 80% of the net revenue
26realized for the preceding month from the 1.25% rate on the

 

 

09800SB0020ham002- 199 -LRB098 04192 HLH 46677 a

1selling price of motor fuel and gasohol.
2    Beginning October 1, 2009, each month the Department shall
3pay into the Capital Projects Fund an amount that is equal to
4an amount estimated by the Department to represent 80% of the
5net revenue realized for the preceding month from the sale of
6candy, grooming and hygiene products, and soft drinks that had
7been taxed at a rate of 1% prior to September 1, 2009 but that
8is now taxed at 6.25%.
9    Beginning July 1, 2013, each month the Department shall pay
10into the Underground Storage Tank Fund from the proceeds
11collected under this Act, the Use Tax Act, the Service Use Tax
12Act, and the Retailers' Occupation Tax Act an amount equal to
13the average monthly deficit in the Underground Storage Tank
14Fund during the prior year, as certified annually by the
15Illinois Environmental Protection Agency, but the total
16payment into the Underground Storage Tank Fund under this Act,
17the Use Tax Act, the Service Use Tax Act, and the Retailers'
18Occupation Tax Act shall not exceed $18,000,000 in any State
19fiscal year. As used in this paragraph, the "average monthly
20deficit" shall be equal to the difference between the average
21monthly claims for payment by the fund and the average monthly
22revenues deposited into the fund, excluding payments made
23pursuant to this paragraph.
24    Of the remainder of the moneys received by the Department
25pursuant to this Act, (a) 1.75% thereof shall be paid into the
26Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on

 

 

09800SB0020ham002- 200 -LRB098 04192 HLH 46677 a

1and after July 1, 1989, 3.8% thereof shall be paid into the
2Build Illinois Fund; provided, however, that if in any fiscal
3year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
4may be, of the moneys received by the Department and required
5to be paid into the Build Illinois Fund pursuant to Section 3
6of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
7Act, Section 9 of the Service Use Tax Act, and Section 9 of the
8Service Occupation Tax Act, such Acts being hereinafter called
9the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
10may be, of moneys being hereinafter called the "Tax Act
11Amount", and (2) the amount transferred to the Build Illinois
12Fund from the State and Local Sales Tax Reform Fund shall be
13less than the Annual Specified Amount (as defined in Section 3
14of the Retailers' Occupation Tax Act), an amount equal to the
15difference shall be immediately paid into the Build Illinois
16Fund from other moneys received by the Department pursuant to
17the Tax Acts; and further provided, that if on the last
18business day of any month the sum of (1) the Tax Act Amount
19required to be deposited into the Build Illinois Account in the
20Build Illinois Fund during such month and (2) the amount
21transferred during such month to the Build Illinois Fund from
22the State and Local Sales Tax Reform Fund shall have been less
23than 1/12 of the Annual Specified Amount, an amount equal to
24the difference shall be immediately paid into the Build
25Illinois Fund from other moneys received by the Department
26pursuant to the Tax Acts; and, further provided, that in no

 

 

09800SB0020ham002- 201 -LRB098 04192 HLH 46677 a

1event shall the payments required under the preceding proviso
2result in aggregate payments into the Build Illinois Fund
3pursuant to this clause (b) for any fiscal year in excess of
4the greater of (i) the Tax Act Amount or (ii) the Annual
5Specified Amount for such fiscal year; and, further provided,
6that the amounts payable into the Build Illinois Fund under
7this clause (b) shall be payable only until such time as the
8aggregate amount on deposit under each trust indenture securing
9Bonds issued and outstanding pursuant to the Build Illinois
10Bond Act is sufficient, taking into account any future
11investment income, to fully provide, in accordance with such
12indenture, for the defeasance of or the payment of the
13principal of, premium, if any, and interest on the Bonds
14secured by such indenture and on any Bonds expected to be
15issued thereafter and all fees and costs payable with respect
16thereto, all as certified by the Director of the Bureau of the
17Budget (now Governor's Office of Management and Budget). If on
18the last business day of any month in which Bonds are
19outstanding pursuant to the Build Illinois Bond Act, the
20aggregate of the moneys deposited in the Build Illinois Bond
21Account in the Build Illinois Fund in such month shall be less
22than the amount required to be transferred in such month from
23the Build Illinois Bond Account to the Build Illinois Bond
24Retirement and Interest Fund pursuant to Section 13 of the
25Build Illinois Bond Act, an amount equal to such deficiency
26shall be immediately paid from other moneys received by the

 

 

09800SB0020ham002- 202 -LRB098 04192 HLH 46677 a

1Department pursuant to the Tax Acts to the Build Illinois Fund;
2provided, however, that any amounts paid to the Build Illinois
3Fund in any fiscal year pursuant to this sentence shall be
4deemed to constitute payments pursuant to clause (b) of the
5preceding sentence and shall reduce the amount otherwise
6payable for such fiscal year pursuant to clause (b) of the
7preceding sentence. The moneys received by the Department
8pursuant to this Act and required to be deposited into the
9Build Illinois Fund are subject to the pledge, claim and charge
10set forth in Section 12 of the Build Illinois Bond Act.
11    Subject to payment of amounts into the Build Illinois Fund
12as provided in the preceding paragraph or in any amendment
13thereto hereafter enacted, the following specified monthly
14installment of the amount requested in the certificate of the
15Chairman of the Metropolitan Pier and Exposition Authority
16provided under Section 8.25f of the State Finance Act, but not
17in excess of the sums designated as "Total Deposit", shall be
18deposited in the aggregate from collections under Section 9 of
19the Use Tax Act, Section 9 of the Service Use Tax Act, Section
209 of the Service Occupation Tax Act, and Section 3 of the
21Retailers' Occupation Tax Act into the McCormick Place
22Expansion Project Fund in the specified fiscal years.
23Fiscal YearTotal Deposit
241993         $0
251994 53,000,000

 

 

09800SB0020ham002- 203 -LRB098 04192 HLH 46677 a

11995 58,000,000
21996 61,000,000
31997 64,000,000
41998 68,000,000
51999 71,000,000
62000 75,000,000
72001 80,000,000
82002 93,000,000
92003 99,000,000
102004103,000,000
112005108,000,000
122006113,000,000
132007119,000,000
142008126,000,000
152009132,000,000
162010139,000,000
172011146,000,000
182012153,000,000
192013161,000,000
202014170,000,000
212015179,000,000
222016189,000,000
232017199,000,000
242018210,000,000
252019221,000,000
262020233,000,000

 

 

09800SB0020ham002- 204 -LRB098 04192 HLH 46677 a

12021246,000,000
22022260,000,000
32023275,000,000
42024 275,000,000
52025 275,000,000
62026 279,000,000
72027 292,000,000
82028 307,000,000
92029 322,000,000
102030 338,000,000
112031 350,000,000
122032 350,000,000
13and
14each fiscal year
15thereafter that bonds
16are outstanding under
17Section 13.2 of the
18Metropolitan Pier and
19Exposition Authority Act,
20but not after fiscal year 2060.
21    Beginning July 20, 1993 and in each month of each fiscal
22year thereafter, one-eighth of the amount requested in the
23certificate of the Chairman of the Metropolitan Pier and
24Exposition Authority for that fiscal year, less the amount
25deposited into the McCormick Place Expansion Project Fund by
26the State Treasurer in the respective month under subsection

 

 

09800SB0020ham002- 205 -LRB098 04192 HLH 46677 a

1(g) of Section 13 of the Metropolitan Pier and Exposition
2Authority Act, plus cumulative deficiencies in the deposits
3required under this Section for previous months and years,
4shall be deposited into the McCormick Place Expansion Project
5Fund, until the full amount requested for the fiscal year, but
6not in excess of the amount specified above as "Total Deposit",
7has been deposited.
8    Subject to payment of amounts into the Build Illinois Fund
9and the McCormick Place Expansion Project Fund pursuant to the
10preceding paragraphs or in any amendments thereto hereafter
11enacted, beginning July 1, 1993, the Department shall each
12month pay into the Illinois Tax Increment Fund 0.27% of 80% of
13the net revenue realized for the preceding month from the 6.25%
14general rate on the selling price of tangible personal
15property.
16    Subject to payment of amounts into the Build Illinois Fund
17and the McCormick Place Expansion Project Fund pursuant to the
18preceding paragraphs or in any amendments thereto hereafter
19enacted, beginning with the receipt of the first report of
20taxes paid by an eligible business and continuing for a 25-year
21period, the Department shall each month pay into the Energy
22Infrastructure Fund 80% of the net revenue realized from the
236.25% general rate on the selling price of Illinois-mined coal
24that was sold to an eligible business. For purposes of this
25paragraph, the term "eligible business" means a new electric
26generating facility certified pursuant to Section 605-332 of

 

 

09800SB0020ham002- 206 -LRB098 04192 HLH 46677 a

1the Department of Commerce and Economic Opportunity Law of the
2Civil Administrative Code of Illinois.
3    Remaining moneys received by the Department pursuant to
4this Act shall be paid into the General Revenue Fund of the
5State Treasury.
6    The Department may, upon separate written notice to a
7taxpayer, require the taxpayer to prepare and file with the
8Department on a form prescribed by the Department within not
9less than 60 days after receipt of the notice an annual
10information return for the tax year specified in the notice.
11Such annual return to the Department shall include a statement
12of gross receipts as shown by the taxpayer's last Federal
13income tax return. If the total receipts of the business as
14reported in the Federal income tax return do not agree with the
15gross receipts reported to the Department of Revenue for the
16same period, the taxpayer shall attach to his annual return a
17schedule showing a reconciliation of the 2 amounts and the
18reasons for the difference. The taxpayer's annual return to the
19Department shall also disclose the cost of goods sold by the
20taxpayer during the year covered by such return, opening and
21closing inventories of such goods for such year, cost of goods
22used from stock or taken from stock and given away by the
23taxpayer during such year, pay roll information of the
24taxpayer's business during such year and any additional
25reasonable information which the Department deems would be
26helpful in determining the accuracy of the monthly, quarterly

 

 

09800SB0020ham002- 207 -LRB098 04192 HLH 46677 a

1or annual returns filed by such taxpayer as hereinbefore
2provided for in this Section.
3    If the annual information return required by this Section
4is not filed when and as required, the taxpayer shall be liable
5as follows:
6        (i) Until January 1, 1994, the taxpayer shall be liable
7    for a penalty equal to 1/6 of 1% of the tax due from such
8    taxpayer under this Act during the period to be covered by
9    the annual return for each month or fraction of a month
10    until such return is filed as required, the penalty to be
11    assessed and collected in the same manner as any other
12    penalty provided for in this Act.
13        (ii) On and after January 1, 1994, the taxpayer shall
14    be liable for a penalty as described in Section 3-4 of the
15    Uniform Penalty and Interest Act.
16    The chief executive officer, proprietor, owner or highest
17ranking manager shall sign the annual return to certify the
18accuracy of the information contained therein. Any person who
19willfully signs the annual return containing false or
20inaccurate information shall be guilty of perjury and punished
21accordingly. The annual return form prescribed by the
22Department shall include a warning that the person signing the
23return may be liable for perjury.
24    The foregoing portion of this Section concerning the filing
25of an annual information return shall not apply to a serviceman
26who is not required to file an income tax return with the

 

 

09800SB0020ham002- 208 -LRB098 04192 HLH 46677 a

1United States Government.
2    As soon as possible after the first day of each month, upon
3certification of the Department of Revenue, the Comptroller
4shall order transferred and the Treasurer shall transfer from
5the General Revenue Fund to the Motor Fuel Tax Fund an amount
6equal to 1.7% of 80% of the net revenue realized under this Act
7for the second preceding month. Beginning April 1, 2000, this
8transfer is no longer required and shall not be made.
9    Net revenue realized for a month shall be the revenue
10collected by the State pursuant to this Act, less the amount
11paid out during that month as refunds to taxpayers for
12overpayment of liability.
13    For greater simplicity of administration, it shall be
14permissible for manufacturers, importers and wholesalers whose
15products are sold by numerous servicemen in Illinois, and who
16wish to do so, to assume the responsibility for accounting and
17paying to the Department all tax accruing under this Act with
18respect to such sales, if the servicemen who are affected do
19not make written objection to the Department to this
20arrangement.
21(Source: P.A. 96-34, eff. 7-13-09; 96-38, eff. 7-13-09; 96-898,
22eff. 5-27-10.)
 
23    Section 5-40. The Retailers' Occupation Tax Act is amended
24by changing Sections 2-54, 3, 5k, 5l, and 9 as follows:
 

 

 

09800SB0020ham002- 209 -LRB098 04192 HLH 46677 a

1    (35 ILCS 120/2-54)
2    Sec. 2-54. Building materials exemption; River Edge
3Redevelopment Zones.
4    (a) Each retailer that makes a qualified sale of building
5materials to be incorporated into real estate within a River
6Edge Redevelopment Zone in accordance with the River Edge
7Redevelopment Zone Act by remodeling, rehabilitating, or new
8construction may deduct receipts from those sales when
9calculating the tax imposed by this Act. For purposes of this
10Section, "qualified sale" means a sale of building materials
11that will be incorporated into real estate as part of an
12industrial or commercial project for which a Certificate of
13Eligibility for Sales Tax Exemption has been issued by the
14corporate authorities of the municipality in which the building
15project is located.
16    (b) Before July 1, 2013, to To document the exemption
17allowed under this Section, the retailer must obtain from the
18purchaser a copy of the Certificate of Eligibility for Sales
19Tax Exemption issued by the corporate authorities of the
20municipality in which the real estate into which the building
21materials will be incorporated is located. The Certificate of
22Eligibility for Sales Tax Exemption must contain all of the
23following:
24        (1) A statement that the commercial or industrial
25    project identified in the Certificate meets all the
26    requirements of the jurisdiction in which the project is

 

 

09800SB0020ham002- 210 -LRB098 04192 HLH 46677 a

1    located.
2        (2) The location or address of the building project.
3        (3) The signature of the chief executive officer of the
4    municipality in which the building project is located, or
5    the chief executive officer's delegate.
6    (c) Before July 1, 2013, in In addition, the retailer must
7obtain a certificate from the purchaser that contains all of
8the following:
9        (1) A statement that the building materials are being
10    purchased for incorporation into real estate located in a
11    River Edge Redevelopment Zone included in a redevelopment
12    project area in accordance with River Edge Redevelopment
13    Zone Act.
14        (2) The location or address of the real estate into
15    which the building materials will be incorporated.
16        (3) The name of the River Edge Redevelopment Zone in
17    which that real estate is located.
18        (4) A description of the building materials being
19    purchased.
20        (5) The purchaser's signature and date of purchase.
21    (d) On and after July 1, 2013, to document the exemption
22allowed under this Section the retailer must obtain from the
23purchaser the purchaser's River Edge Building Materials
24Exemption Certificate number issued by the Department. A
25construction contractor or other entity shall not make tax-free
26purchases unless it has an active Exemption Certificate issued

 

 

09800SB0020ham002- 211 -LRB098 04192 HLH 46677 a

1by the Department at the time of purchase.
2    Upon request from the corporate authorities of the
3municipality in which the building project is located, the
4Department shall issue a River Edge Building Materials
5Exemption Certificate for each construction contractor or
6other entity identified by the corporate authorities of the
7municipality in which the building project is located. The
8Department shall make the Exemption Certificates available to
9the corporate authorities of the municipality in which the
10building project is located and each construction contractor or
11other entity. The request for River Edge Building Materials
12Exemption Certificates from the corporate authorities of the
13municipality in which the building project is located to the
14Department must include the following information:
15        (1) the name and address of the construction contractor
16    or other entity;
17        (2) the name and number of the River Edge Redevelopment
18    Zone in which the building project is located;
19        (3) the name and location or address of the building
20    project in the River Edge Redevelopment Zone;
21        (4) the estimated amount of the exemption for each
22    construction contractor or other entity for which a request
23    for Exemption Certificate is made, based on a stated
24    estimated average tax rate and the percentage of the
25    contract that consists of materials;
26        (5) the period of time over which supplies for the

 

 

09800SB0020ham002- 212 -LRB098 04192 HLH 46677 a

1    project are expected to be purchased; and
2        (6) other reasonable information as the Department may
3    require, including but not limited to FEIN numbers, to
4    determine if the contractor or other entity, or any
5    partner, or a corporate officer, and in the case of a
6    limited liability company, any manager or member, of the
7    construction contractor or other entity, is or has been the
8    owner, a partner, a corporate officer, and in the case of a
9    limited liability company, a manager or member, of a person
10    that is in default for moneys due to the Department under
11    this Act or any other tax or fee Act administered by the
12    Department.
13    The Department shall issue the River Edge Building
14Materials Exemption Certificates within 3 business days after
15receipt of request from the corporate authorities of the
16municipality in which the building project is located. This
17requirement does not apply in circumstances where the
18Department, for reasonable cause, is unable to issue the
19Exemption Certificate within 3 business days. The Department
20may refuse to issue an Exemption Certificate if the owner, any
21partner, or a corporate officer, and in the case of a limited
22liability company, any manager or member, of the construction
23contractor or other entity is or has been the owner, a partner,
24a corporate officer, and in the case of a limited liability
25company, a manager or member, of a person that is in default
26for moneys due to the Department under this Act or any other

 

 

09800SB0020ham002- 213 -LRB098 04192 HLH 46677 a

1tax or fee Act administered by the Department. The River Edge
2Building Materials Exemption Certificate shall contain
3language stating that, if the construction contractor or other
4entity who is issued the Exemption Certificate makes a
5tax-exempt purchase as described in this Section that is not
6eligible for exemption under this Section, or allows another
7person to make a tax-exempt purchase, as described in this
8Section, that is not eligible for exemption under this Section,
9then, in addition to any tax or other penalty imposed, the
10construction contractor or other entity is subject to a penalty
11equal to the tax that would have been paid by the retailer
12under this Act as well as any applicable local retailers'
13occupation tax on the purchase that is not eligible for the
14exemption.
15    The Department, in its discretion, may require that the
16request for River Edge Building Materials Exemption
17Certificates be submitted electronically. The Department may,
18in its discretion, issue the Exemption Certificates
19electronically. The River Edge Building Materials Exemption
20Certificate number shall be designed in such a way that the
21Department can identify from the unique number on the Exemption
22Certificate issued to a given construction contractor or other
23entity, the name of the River Edge Redevelopment Zone in which
24the building project is located, the project for which the
25Exemption Certificate is issued, and the construction
26contractor or other entity to whom the Exemption Certificate is

 

 

09800SB0020ham002- 214 -LRB098 04192 HLH 46677 a

1issued. The Exemption Certificate shall contain an expiration
2date, which shall be no more than 2 years after the date of
3issuance. At the request of the corporate authorities of the
4municipality in which the building project is located, the
5Department may renew an Exemption Certificate. After the
6Department issues Exemption Certificates for a given River Edge
7building project, the corporate authorities of the
8municipality in which the building project is located may
9notify the Department of additional construction contractors
10or other entities eligible for a River Edge Building Materials
11Exemption Certificate. Upon notification by the corporate
12authorities of the municipality in which the building project
13is located, and subject to the other provisions of this
14subsection (d), the Department shall issue a River Edge
15