HB0385 94TH GENERAL ASSEMBLY

LRB094 06731 MKM 36830 b

94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
HB0385

Introduced 1/25/2005, by Rep. William B. Black

SYNOPSIS AS INTRODUCED:

220 ILCS 5/9-222.1

from Ch. 111 2/3, par. 9-222.1

Amends the Public Utilities Act. Authorizes the Department of Commerce and Economic Opportunity to establish by rule certain criteria for the certification of an exemption from certain additional charges added to the utility bills of a business enterprise that is located within an area designated by a county or a municipality as an enterprise zone under the Illinois Enterprise Zone Act or located in a federally-designated Foreign Trade Zone or Sub-Zone. Provides that any business enterprise that previously qualified for and received the exemption, but that was denied the exemption upon re-application, shall receive no more than one further exemption and shall only receive the exemption if it makes the level of capital investment or creates the number of full-time equivalent jobs expressly specified by the Department of Commerce and Economic Opportunity. Effective immediately.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning utilities.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Public Utilities Act is amended by changing Section 9-222.1 as follows:

(220 ILCS 5/9-222.1) (from Ch. 111 2/3, par. 9-222.1)

Sec. 9-222.1. Business enterprises located in enterprise zones; exemption from additional charges.

(a) Except as otherwise provided in subsection (b), a A business enterprise which is located within an area designated by a county or municipality as an enterprise zone pursuant to the Illinois Enterprise Zone Act or located in a federally designated Foreign Trade Zone or Sub-Zone shall be exempt from the additional charges added to the business enterprise's utility bills as a pass-on of municipal and State utility taxes under Sections 9-221 and 9-222 of this Act, to the extent such charges are exempted by ordinance adopted in accordance with paragraph (e) of Section 8-11-2 of the Illinois Municipal Code in the case of municipal utility taxes, and to the extent such charges are exempted by the percentage specified by the Department of Commerce and Economic Opportunity Community Affairs in the case of State utility taxes, provided such business enterprise meets the following criteria:

(1) it either (i) makes investments which cause the creation of a minimum of 200 full-time equivalent jobs in Illinois; (ii) makes investments of at least $175,000,000 which cause the creation of a minimum of 150 full-time equivalent jobs in Illinois; or (iii) makes investments which cause the retention of a minimum of 1,000 full-time jobs in Illinois; and

(2) it is either (i) located in an Enterprise Zone established pursuant to the Illinois Enterprise Zone Act or (ii) it is located in a federally designated Foreign Trade Zone or Sub-Zone and is designated a High Impact Business by the Department of Commerce and Economic Opportunity Community Affairs; and

(3) it is certified by the Department of Commerce and Economic Opportunity Community Affairs as complying with the requirements specified in clauses (1) and (2) of this subsection Section.

(b) A business enterprise that does not meet the criteria in subsection (a), but that is located within an area designated by a county or municipality as an enterprise zone pursuant to the Illinois Enterprise Zone Act or located in a federally-designated Foreign Trade Zone or Sub-Zone shall be exempt from the additional charges added to the business enterprise's utility bills as a pass-on of municipal and State utility taxes under Sections 9-221 and 9-222 of this Act, to the extent that those charges are exempted by ordinance adopted in accordance with paragraph (e) of Section 8-11-2 of the Illinois Municipal Code in the case of municipal utility taxes, and to the extent those charges are exempted by the percentage specified by the Department of Commerce and Economic Opportunity in the case of State utility taxes, provided that the business enterprise meets the following criteria:

(1) it either (i) makes investments that cause the creation or retention of a minimum number of full-time equivalent jobs in Illinois, as expressly specified by the Department; or (ii) makes capital investments at a minimum level, as expressly specified by the Department of Commerce and Economic Opportunity; and

(2) it is either (i) located in an Enterprise Zone established pursuant to the Illinois Enterprise Zone Act or (ii) it is located in a federally designated Foreign Trade Zone or Sub-Zone and is designated a High Impact Business by the Department of Commerce and Economic Opportunity; and

(3) it is certified by the Department of Commerce and Economic Opportunity as complying with the requirements specified in clauses (1) and (2) of this subsection.

The amount of the exemption under this subsection may be pro rated in accordance with the value of the economic impact of the business enterprise's job creation or capital investments on the enterprise zone.

(c) Notwithstanding any other provision of law to the contrary, if a business enterprise that previously qualified for and received an exemption under this Section is denied an exemption upon re-application, it shall receive no more than one further exemption. This exemption shall only be certified by the Department of Commerce and Economic Opportunity and awarded to the business enterprise if the business enterprise makes the level of capital investment or creates the number of full-time equivalent jobs as expressly specified by the Department of Commerce and Economic Opportunity.

(d) The Department of Commerce and Economic Opportunity Community Affairs shall determine the period during which such exemption from the charges imposed under Section 9-222 is in effect which shall not exceed 30 years or the certified term of the enterprise zone, whichever period is shorter.

(e) The Department of Commerce and Economic Opportunity Community Affairs shall have the power to promulgate rules and regulations to carry out the provisions of this Section including procedures for complying with the requirements specified in subsections (a) and (b) clauses (1) and (2) of this Section and procedures for applying for the exemptions authorized under this Section; to define the amounts and types of eligible investments which business enterprises must make in order to receive State utility tax exemptions pursuant to Sections 9-222 and 9-222.1 of this Act; to approve such utility tax exemptions for business enterprises whose investments are not yet placed in service; and to require that business enterprises granted tax exemptions repay the exempted tax should the business enterprise fail to comply with the terms and conditions of the certification. However, no business enterprise shall be required, as a condition for certification under subsection (a) or (b) under clause (3) of this Section, to attest that its decision to invest under clause (1) of subsection (a) or (b) this Section and to locate under clause (2) of subsection (a) and (b) this Section is predicated upon the availability of the exemptions authorized by this Section.

A business enterprise shall be exempt, in whole or in part, from the pass-on charges of municipal utility taxes imposed under Section 9-221, only if it meets the criteria specified in subsections (a) or (b) clauses (1) through (3) of this Section and the municipality has adopted an ordinance authorizing the exemption under paragraph (e) of Section 8-11-2 of the Illinois Municipal Code. Upon certification of the business enterprises by the Department of Commerce and Economic Opportunity Community Affairs, the Department of Commerce and Economic Opportunity Community Affairs shall notify the Department of Revenue of such certification. The Department of Revenue shall notify the public utilities of the exemption status of business enterprises from the pass-on charges of State and municipal utility taxes. Such exemption status shall be effective within 3 months after certification of the business enterprise.

(Source: P.A. 91-567, eff. 8-14-99; 92-777, eff. 1-1-03; revised 12-6-03.)

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