HB5811 96TH GENERAL ASSEMBLY

LRB096 18498 JDS 33879 b

96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
HB5811

Introduced 2/10/2010, by Rep. William B. Black - Mike Bost - John D. Cavaletto - Roger L. Eddy

SYNOPSIS AS INTRODUCED:

New Act

Creates the Employ Illinois Job Renewal Act. Requires the Department of Commerce and Economic Opportunity to develop application procedures to certify certain areas in the State as Job Renewal Zones. Sets forth the qualifications for certification as a Job Renewal Zone. Sets forth tax incentives for businesses located inside Job Renewal Zones. Requires the Department to certify all Job Renewal Zones by July 1, 2012 and provides that all zones expire on June 30, 2023. Requires the Department to report to the General Assembly and Governor no later than January 1, 2022 concerning the program. Effective immediately.

FISCAL NOTE ACT MAY APPLY

HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning economic development.

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

Section 1. Short title. This Act may be cited as the Employ Illinois Job Renewal Act.

Section 5. Definitions. As used in this Act:

"Department" means the Department of Commerce and Economic Opportunity.

"Local government entity" means a county or a municipality.

Section 10. Qualifications for Job Renewal Zones. A local government entity is qualified to become a Job Renewal Zone if:

(1) it has no more than 200,000 residents according to the latest data available from the U.S. Census Bureau; and

(2) it has experienced unemployment rates over the last 5 years that are higher than at least 75% of all Illinois local government entities.

Section 15. Certification of Job Renewal Zones by the Department.

(a) The Department must develop an application for Job Renewal Zone certification, contact local government entities that may qualify as a Job Renewal Zone under Section 10, and inform those entities of their potential qualification. In determining those local government entities to be certified, in addition to characteristics mentioned in subsection (b), the Department must certify an equal amount of zones in the various regions of the State. The Department shall designate Job Renewal Zones in a manner that maximizes their effect equally in regions of the State. The Department may not designate more than 10 Job Renewal Zones in the State.

(b) In considering applications for Job Renewal Zone certification, the Department must consider all of the following factors:

(1) The degree to which the applicant local government entity has experienced population decline or equalized assessed property value decline or stagnant growth at greater levels than other local government entities that are eligible for Job Renewal Zone certification.

(2) The poverty of residents of the local government entity applicant relative to other local government entities that are eligible for Job Renewal Zone certification.

(3) The degree to which school districts within the jurisdiction of the local government entity applying for certification have experienced decline or stagnation in student enrollment having detrimental effects on the schools' State education funding at levels greater than other local government entities that are eligible for certification.

(4) Whether the applicant local government entity has developed a strategic development plan that will guide the redevelopment of its community or county in a manner that benefits all residents of the applicant local government entity.

(5) Any other relevant factors determined by the Department.

Section 20. Taxes on businesses in Job Renewal Zones.

(a) All businesses located in a Job Renewal Zone, in addition to any other benefits and incentives that may be offered at the discretion of the Department or the local government entity creating the Job Renewal Zone as is provided under the Enterprise Zone Act, shall qualify, upon certification by the Department, for exemptions from the following taxes:

(1) taxes imposed under subsections (a) and (b) of Section 201 of the Illinois Income Tax Act; and

(2) the State's portion of the State use or occupation taxes.

(b) Any business located in a Job Renewal Zone from which the Department has determined at least 51% of its products or services are exported outside of the State shall automatically qualify for EDGE job creation assistance, as provided under the Economic Development for a Growing Economy Tax Credit Act (35 ILCS 10).

Section 30. Deadline for zone certification; expiration.

(a) The Department must set a deadline for its receipt of applications for all zone certifications. The Department must certify all Job Renewal Zones by July 1, 2012.

(b) All Job Renewal Zones expire on June 30, 2023.

Section 35. Report required; extension of program.

(a) By January 1, 2022, the Department must prepare a report to the Governor and the General Assembly detailing the effects of the Job Renewal program on the local government entities. The report must include, without limitation, information concerning:

(1) employment growth and unemployment decline;

(2) population change;

(3) changes in poverty rates;

(4) changes in per capita income of the residents of the zone;

(5) changes in the equalized assessed value of property within the zone;

(6) changes in the cost of providing services to zone residents borne by the local government entity where the zone is located;

(7) changes in revenues collected by the local government entity in which the zone is located; and

(8) changes in the cost of housing in the zone.

(b) If the General Assembly extends the expiration date of this program, the Department shall consider the progress of economic development of each zone then designated and surrounding areas when deciding whether the current 10 Job Renewal Zones will be re-extended.

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