101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB3707

 

Introduced , by Rep. Mark L. Walker

 

SYNOPSIS AS INTRODUCED:
 
20 ILCS 655/3  from Ch. 67 1/2, par. 603
20 ILCS 655/4  from Ch. 67 1/2, par. 604
20 ILCS 655/4.1
20 ILCS 655/5.1  from Ch. 67 1/2, par. 606
20 ILCS 655/5.2  from Ch. 67 1/2, par. 607
20 ILCS 655/5.3  from Ch. 67 1/2, par. 608
20 ILCS 655/5.4  from Ch. 67 1/2, par. 609
20 ILCS 655/8.1

    Amends the Illinois Enterprise Zone Act. In a Section concerning eligibility for an Enterprise Zone based on the local labor market area, provides that the Department of Commerce and Economic Opportunity may consider information released in the most recent American Community Survey (currently, the federal decennial census only). Provides that the Department of Commerce and Economic Opportunity may award partial points if the applicant demonstrates specific job creation and investment below specified thresholds. Contains provisions concerning provisional certification and provisional decertification. Provides that, for Enterprise Zones that are scheduled to expire on or after January 1, 2022, an application process shall begin 5 years prior to the year in which the Zone expires. Provides that the Department of Commerce and Economic Opportunity may consider written comments or any other information regarding a pending Enterprise Zone application submitted after the deadline and received prior to the decision on all pending applications. Makes changes concerning the total number of Enterprise Zones that may be certified. Effective immediately.


LRB101 10001 HLH 55103 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB3707LRB101 10001 HLH 55103 b

1    AN ACT concerning State government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Enterprise Zone Act is amended by
5changing Sections 3, 4, 4.1, 5.1, 5.2, 5.3, 5.4, and 8.1 as
6follows:
 
7    (20 ILCS 655/3)  (from Ch. 67 1/2, par. 603)
8    Sec. 3. Definitions. As used in this Act, the following
9words shall have the meanings ascribed to them, unless the
10context otherwise requires:
11    (a) "Department" means the Department of Commerce and
12Economic Opportunity.
13    (b) "Enterprise Zone" means an area of the State certified
14by the Department as an Enterprise Zone pursuant to this Act.
15    (c) "Depressed Area" means an area in which pervasive
16poverty, unemployment and economic distress exist.
17    (d) "Designated Zone Organization" means an association or
18entity: (1) the members of which are substantially all
19residents of the Enterprise Zone; (2) the board of directors of
20which is elected by the members of the organization; (3) which
21satisfies the criteria set forth in Section 501(c) (3) or
22501(c) (4) of the Internal Revenue Code; and (4) which exists
23primarily for the purpose of performing within such area or

 

 

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1zone for the benefit of the residents and businesses thereof
2any of the functions set forth in Section 8 of this Act.
3    (e) "Agency" means each officer, board, commission and
4agency created by the Constitution, in the executive branch of
5State government, other than the State Board of Elections; each
6officer, department, board, commission, agency, institution,
7authority, university, body politic and corporate of the State;
8and each administrative unit or corporate outgrowth of the
9State government which is created by or pursuant to statute,
10other than units of local government and their officers, school
11districts and boards of election commissioners; each
12administrative unit or corporate outgrowth of the above and as
13may be created by executive order of the Governor. No entity
14shall be considered an "agency" for the purposes of this Act
15unless authorized by law to make rules or regulations.
16    (f) "Rule" means each agency statement of general
17applicability that implements, applies, interprets or
18prescribes law or policy, but does not include (i) statements
19concerning only the internal management of an agency and not
20affecting private rights or procedures available to persons or
21entities outside the agency, (ii) intra-agency memoranda, or
22(iii) the prescription of standardized forms.
23    (g) "Board" means the Enterprise Zone Board created in
24Section 5.2.1.
25    (h) "Local labor market area" means an economically
26integrated area within which individuals can reside and find

 

 

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1employment within a reasonable distance or can readily change
2jobs without changing their place of residence.
3    (i) "Full-time equivalent job" means a job in which the new
4employee works for the recipient or for a corporation under
5contract to the recipient at a rate of at least 35 hours per
6week. A recipient who employs labor or services at a specific
7site or facility under contract with another may declare one
8full-time, permanent job for every 1,820 man hours worked per
9year under that contract. Vacations, paid holidays, and sick
10time are included in this computation. Overtime is not
11considered a part of regular hours.
12    (j) "Full-time retained job" means any employee defined as
13having a full-time or full-time equivalent job preserved at a
14specific facility or site, the continuance of which is
15threatened by a specific and demonstrable threat, which shall
16be specified in the application for development assistance. A
17recipient who employs labor or services at a specific site or
18facility under contract with another may declare one retained
19employee per year for every 1,750 man hours worked per year
20under that contract, even if different individuals perform
21on-site labor or services.
22(Source: P.A. 97-905, eff. 8-7-12; 98-463, eff. 8-16-13.)
 
23    (20 ILCS 655/4)  (from Ch. 67 1/2, par. 604)
24    Sec. 4. Qualifications for enterprise zones.
25    (1) An area is qualified to become an enterprise zone

 

 

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1which:
2        (a) is a contiguous area, provided that a zone area may
3    exclude wholly surrounded territory within its boundaries;
4        (b) comprises a minimum of one-half square mile and not
5    more than 12 square miles, or 15 square miles if the zone
6    is located within the jurisdiction of 4 or more counties or
7    municipalities, in total area, exclusive of lakes and
8    waterways; however, in such cases where the enterprise zone
9    is a joint effort of three or more units of government, or
10    two or more units of government if situated in a township
11    which is divided by a municipality of 1,000,000 or more
12    inhabitants, and where the certification has been in effect
13    at least one year, the total area shall comprise a minimum
14    of one-half square mile and not more than thirteen square
15    miles in total area exclusive of lakes and waterways;
16        (c) (blank);
17        (d) (blank);
18        (e) is (1) entirely within a municipality or (2)
19    entirely within the unincorporated areas of a county,
20    except where reasonable need is established for such zone
21    to cover portions of more than one municipality or county
22    or (3) both comprises (i) all or part of a municipality and
23    (ii) an unincorporated area of a county; and
24        (f) meets 3 or more of the following criteria:
25            (1) all or part of the local labor market area has
26        had an annual average unemployment rate of at least

 

 

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1        120% of the State's annual average unemployment rate
2        for the most recent calendar year or the most recent
3        fiscal year as reported by the Department of Employment
4        Security;
5            (2) designation will result in the development of
6        substantial employment opportunities by creating or
7        retaining a minimum aggregate of 1,000 full-time
8        equivalent jobs due to an aggregate investment of
9        $100,000,000 or more, and will help alleviate the
10        effects of poverty and unemployment within the local
11        labor market area;
12            (3) at least one of the following applies to the
13        local labor market area: (A) all or part of the local
14        labor market area has a poverty rate of at least 20%
15        according to the latest federal decennial census, the
16        most recent American Community Survey released by the
17        U.S. Census Bureau, or other appropriate data source
18        produced by the U.S. Census Bureau; (B) 50% or more of
19        children in the local labor market area are eligible to
20        participate in the federal free lunch or reduced-price
21        meals program according to reported statistics from
22        the State Board of Education, or 20% or more households
23        in the local labor market area receive food stamps or
24        assistance under the Supplemental Nutrition Assistance
25        Program ("SNAP") according to the latest federal
26        decennial census or other data from the U.S. Census

 

 

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1        Bureau;
2            (4) an abandoned coal mine, a brownfield (as
3        defined in Section 58.2 of the Environmental
4        Protection Act), or an inactive nuclear-powered
5        nuclear powered electrical generation facility where
6        spent nuclear fuel is stored on-site is located in the
7        proposed zone area, or all or a portion of the proposed
8        zone was declared a federal disaster area in the 3
9        years preceding the date of application;
10            (5) the local labor market area contains a presence
11        of large employers that have downsized over the years,
12        the labor market area has experienced plant closures in
13        the 5 years prior to the date of application affecting
14        more than 50 workers, or the local labor market area
15        has experienced State or federal facility closures in
16        the 5 years prior to the date of application affecting
17        more than 50 workers;
18            (6) based on data from Multiple Listing Service
19        information or other suitable sources, the local labor
20        market area contains a high floor vacancy rate of
21        industrial or commercial properties, vacant or
22        demolished commercial and industrial structures are
23        prevalent in the local labor market area, or industrial
24        structures in the local labor market area are not used
25        because of age, deterioration, relocation of the
26        former occupants, or cessation of operation;

 

 

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1            (7) the applicant demonstrates a substantial plan
2        for using the designation to improve the State and
3        local government tax base, including income, sales,
4        and property taxes, including a plan for disposal of
5        publicly-owned real property by the methods described
6        in Section 10 of this Act;
7            (8) significant public infrastructure is present
8        in the local labor market area in addition to a plan
9        for infrastructure development and improvement;
10            (9) high schools or community colleges located
11        within the local labor market area are engaged in ACT
12        Work Keys, Manufacturing Skills Standard
13        Certification, or other industry-based credentials
14        that prepare students for careers;
15            (10) (blank); or the change in equalized assessed
16        valuation of industrial and/or commercial properties
17        in the 5 years prior to the date of application is
18        equal to or less than 50% of the State average change
19        in equalized assessed valuation for industrial and/or
20        commercial properties, as applicable, for the same
21        period of time; or
22            (11) the applicant demonstrates a substantial plan
23        for using the designation to encourage: (i)
24        participation by businesses owned by minorities,
25        women, and persons with disabilities, as those terms
26        are defined in the Business Enterprise for Minorities,

 

 

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1        Women, and Persons with Disabilities Act; and (ii) the
2        hiring of minorities, women, and persons with
3        disabilities.
4    As provided in Section 10-5.3 of the River Edge
5Redevelopment Zone Act, upon the expiration of the term of each
6River Edge Redevelopment Zone in existence on August 7, 2012
7(the effective date of Public Act 97-905) this amendatory Act
8of the 97th General Assembly, that River Edge Redevelopment
9Zone will become available for its previous designee or a new
10applicant to compete for designation as an enterprise zone. No
11preference for designation will be given to the previous
12designee of the zone.
13    (2) Any criteria established by the Department or by law
14which utilize the rate of unemployment for a particular area
15shall provide that all persons who are not presently employed
16and have exhausted all unemployment benefits shall be
17considered unemployed, whether or not such persons are actively
18seeking employment.
19(Source: P.A. 100-838, eff. 8-13-18; 100-1149, eff. 12-14-18;
20revised 1-3-19.)
 
21    (20 ILCS 655/4.1)
22    Sec. 4.1. Department recommendations.
23    (a) For all applications that qualify under Section 4 of
24this Act, the Department shall issue recommendations by
25assigning a score to each applicant. The scores will be

 

 

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1determined by the Department, based on the extent to which an
2applicant meets the criteria points under subsection (f) of
3Section 4 of this Act. Scores will be determined using the
4following scoring system:
5        (1) Up to 50 points for the extent to which the
6    applicant meets or exceeds the criteria in item (1) of
7    subsection (f) of Section 4 of this Act, with points
8    awarded according to the severity of the unemployment.
9        (2) Up to 50 points for the extent to which the
10    applicant meets or exceeds the criteria in item (2) of
11    subsection (f) of Section 4 of this Act, with points
12    awarded in accordance with the number of jobs created and
13    the aggregate amount of investment promised. The
14    Department may award partial points on a pro rata basis
15    under this paragraph (2) if the applicant demonstrates
16    specific job creation and investment below the thresholds
17    set forth in paragraph (2) of subsection (f) of Section 4.
18        (3) Up to 40 points for the extent to which the
19    applicant meets or exceeds the criteria in item (3) of
20    subsection (f) of Section 4 of this Act, with points
21    awarded in accordance with the severity of the unemployment
22    rate according to the latest federal decennial census.
23        (4) Up to 30 points for the extent to which the
24    applicant meets or exceeds the criteria in item (4) of
25    subsection (f) of Section 4 of this Act, with points
26    awarded in accordance with the severity of the

 

 

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1    environmental impact of the abandoned coal mine,
2    brownfield, or federal disaster area.
3        (5) Up to 50 points for the extent to which the
4    applicant meets or exceeds the criteria in item (5) of
5    subsection (f) of Section 4 of this Act, with points
6    awarded in accordance with the severity of the applicable
7    facility closures or downsizing.
8        (6) Up to 40 points for the extent to which the
9    applicant meets or exceeds the criteria in item (6) of
10    subsection (f) of Section 4 of this Act, with points
11    awarded in accordance with the severity and extent of the
12    high floor vacancy or deterioration.
13        (7) Up to 30 points for the extent to which the
14    applicant meets or exceeds the criteria in item (7) of
15    subsection (f) of Section 4 of this Act, with points
16    awarded in accordance with the extent to which the
17    application addresses a plan to improve the State and local
18    government tax base, including a plan for disposal of
19    publicly-owned real property.
20        (8) Up to 50 points for the extent to which the
21    applicant meets or exceeds the criteria in item (8) of
22    subsection (f) of Section 4 of this Act, with points
23    awarded in accordance with the existence of significant
24    public infrastructure.
25        (9) Up to 40 points for the extent to which the
26    applicant meets or exceeds the criteria in item (9) of

 

 

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1    subsection (f) of Section 4 of this Act, with points
2    awarded in accordance with the extent to which educational
3    programs exist for career preparation.
4        (10) (Blank). Up to 40 points for the extent to which
5    the applicant meets or exceeds the criteria in item (10) of
6    subsection (f) of Section 4 of this Act, with points
7    awarded according to the severity of the change in
8    equalized assessed valuation.
9        (11) Up to 40 points for the extent to which the
10    applicant meets or exceeds the criteria in item (11) of
11    subsection (f) of Section 4 of this Act.
12        (12) In awarding points under paragraphs (1) through
13    (9), the Department may adjust the scoring for applicants
14    that are located entirely within a county with a population
15    of less than 300,000 if the Department finds that the
16    designation will help to alleviate the effects of poverty
17    and unemployment within the proposed Enterprise Zone.
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. 100-838, eff. 8-13-18.)
 
25    (20 ILCS 655/5.1)  (from Ch. 67 1/2, par. 606)

 

 

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1    Sec. 5.1. Application to Department.
2    (a) A county or municipality which has adopted an ordinance
3designating an area as an enterprise zone shall make written
4application to the Department to have such proposed enterprise
5zone certified by the Department as an Enterprise Zone. The
6application shall include:
7        (i) a certified copy of the ordinance designating the
8    proposed zone;
9        (ii) a map of the proposed enterprise zone, showing
10    existing streets and highways;
11        (iii) an analysis, and any appropriate supporting
12    documents and statistics, demonstrating that the proposed
13    zone area is qualified in accordance with Section 4;
14        (iv) a statement detailing any tax, grant, and other
15    financial incentives or benefits, and any programs, to be
16    provided by the municipality or county to business
17    enterprises within the zone, other than those provided in
18    the designating ordinance, which are not to be provided
19    throughout the municipality or county;
20        (v) a statement setting forth the economic development
21    and planning objectives for the zone;
22        (vi) a statement describing the functions, programs,
23    and services to be performed by designated zone
24    organizations within the zone;
25        (vii) an estimate of the economic impact of the zone,
26    considering all of the tax incentives, financial benefits

 

 

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1    and programs contemplated, upon the revenues of the
2    municipality or county;
3        (viii) a transcript of all public hearings on the zone;
4        (ix) in the case of a joint application, a statement
5    detailing the need for a zone covering portions of more
6    than one municipality or county and a description of the
7    agreement between joint applicants; and
8        (x) such additional information as the Department by
9    regulation may require.
10    (b) The Department may provide for provisional
11certification of substantially complete applications pending
12the receipt of any of the items identified in subsection (a) of
13this Section or any additional information requested by the
14Department.
15(Source: P.A. 82-1019.)
 
16    (20 ILCS 655/5.2)  (from Ch. 67 1/2, par. 607)
17    Sec. 5.2. Department Review of Enterprise Zone
18Applications.
19    (a) All applications which are to be considered and acted
20upon by the Department during a calendar year must be received
21by the Department no later than December 31 of the preceding
22calendar year.
23    Any application received after December 31 of any calendar
24year shall be held by the Department for consideration and
25action during the following calendar year.

 

 

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1    Each enterprise zone application shall include a specific
2definition of the applicant's local labor market area.
3    (a-5) The Department shall, no later than July 31, 2013,
4develop an application process for an enterprise zone
5application. The Department has emergency rulemaking authority
6for the purpose of application development only until 12 months
7after the effective date of this amendatory Act of the 97th
8General Assembly.
9    (b) Upon receipt of an application from a county or
10municipality the Department shall review the application to
11determine whether the designated area qualifies as an
12enterprise zone under Section 4 of this Act.
13    (c) No later than June 30, the Department shall notify all
14applicant municipalities and counties of the Department's
15determination of the qualification of their respective
16designated enterprise zone areas, and shall send qualifying
17applications, including the applicant's scores for each of the
18items set forth in items (1) through (10) of subsection (a) of
19Section 4.1 and the applicant's final score under that Section,
20to the Board for the Board's consideration, along with
21supporting documentation of the basis for the Department's
22decision.
23    (d) If any such designated area is found to be qualified to
24be an enterprise zone by the Department under subsection (c) of
25this Section, the Department shall, no later than July 15, send
26a letter of notification to each member of the General Assembly

 

 

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1whose legislative district or representative district contains
2all or part of the designated area and publish a notice in at
3least one newspaper of general circulation within the proposed
4zone area to notify the general public of the application and
5their opportunity to comment. Such notice shall include a
6description of the area and a brief summary of the application
7and shall indicate locations where the applicant has provided
8copies of the application for public inspection. The notice
9shall also indicate appropriate procedures for the filing of
10written comments from zone residents, business, civic and other
11organizations and property owners to the Department. The
12Department and the Board may consider written comments
13submitted pursuant to this Section or any other information
14regarding a pending enterprise zone application submitted
15after the deadline for enterprise zone application and received
16prior to the Board's decision on all pending applications.
17    (e) (Blank).
18    (f) (Blank).
19    (g) (Blank).
20    (h) (Blank).
21(Source: P.A. 97-905, eff. 8-7-12; 98-109, eff. 7-25-13.)
 
22    (20 ILCS 655/5.3)  (from Ch. 67 1/2, par. 608)
23    Sec. 5.3. Certification of Enterprise Zones; effective
24date.
25    (a) Certification of Board-approved designated Enterprise

 

 

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1Zones shall be made by the Department by certification of the
2designating ordinance. The Department shall promptly issue a
3certificate for each Enterprise Zone upon approval by the
4Board. The certificate shall be signed by the Director of the
5Department, shall make specific reference to the designating
6ordinance, which shall be attached thereto, and shall be filed
7in the office of the Secretary of State. A certified copy of
8the Enterprise Zone Certificate, or a duplicate original
9thereof, shall be recorded in the office of recorder of deeds
10of the county in which the Enterprise Zone lies.
11    (b) An Enterprise Zone certified prior to January 1, 2016
12or on or after January 1, 2017 shall be effective on January 1
13of the first calendar year after Department certification. An
14Enterprise Zone certified on or after January 1, 2016 and on or
15before December 31, 2016 shall be effective on the date of the
16Department's certification. The Department shall transmit a
17copy of the certification to the Department of Revenue, and to
18the designating municipality or county.
19    Upon certification of an Enterprise Zone, the terms and
20provisions of the designating ordinance shall be in effect, and
21may not be amended or repealed except in accordance with
22Section 5.4.
23    (c) With the exception of Enterprise Zones scheduled to
24expire before December 31, 2018, an Enterprise Zone designated
25before the effective date of this amendatory Act of the 97th
26General Assembly shall be in effect for 30 calendar years, or

 

 

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1for a lesser number of years specified in the certified
2designating ordinance. Notwithstanding the foregoing, any
3Enterprise Zone in existence on the effective date of this
4amendatory Act of the 98th General Assembly that has a term of
520 calendar years may be extended for an additional 10 calendar
6years upon amendment of the designating ordinance by the
7designating municipality or county and submission of the
8ordinance to the Department. The amended ordinance must be
9properly recorded in the Office of Recorder of Deeds of each
10county in which the Enterprise Zone lies. Each Enterprise Zone
11in existence on the effective date of this amendatory Act of
12the 97th General Assembly that is scheduled to expire before
13July 1, 2016 may have its termination date extended until July
141, 2016 upon amendment of the designating ordinance by the
15designating municipality or county extending the termination
16date to July 1, 2016 and submission of the ordinance to the
17Department. The amended ordinance must be properly recorded in
18the Office of Recorder of Deeds of each county in which the
19Enterprise Zone lies. An Enterprise Zone designated on or after
20the effective date of this amendatory Act of the 97th General
21Assembly shall be in effect for a term of 15 calendar years, or
22for a lesser number of years specified in the certified
23designating ordinance. An enterprise zone designated on or
24after the effective date of this amendatory Act of the 97th
25General Assembly shall be subject to review by the Board after
2613 years for an additional 10-year designation beginning on the

 

 

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1expiration date of the enterprise zone. During the review
2process, the Board shall consider the costs incurred by the
3State and units of local government as a result of tax benefits
4received by the enterprise zone as well as whether the Zone has
5substantially implemented the plans and achieved the goals set
6forth in its original application, including satisfaction of
7the investment and job creation or retention information
8provided by the Applicant with respect to paragraph (f) of
9subsection (1) of Section 4 of the Act. Enterprise Zones shall
10terminate at midnight of December 31 of the final calendar year
11of the certified term, except as provided in Section 5.4.
12    (d) Except for Enterprise Zones authorized under
13subsection (f), Zones that become available for designation
14pursuant to Section 10-5.3 of the River Edge Redevelopment Zone
15Act, or those designated pursuant to another statutory
16authority providing for the creation of Enterprise Zones, no No
17more than a total of 97 12 Enterprise Zones may be certified by
18the Department and in existence in any calendar year 1984, no
19more than 12 Enterprise Zones may be certified by the
20Department in calendar year 1985, no more than 13 Enterprise
21Zones may be certified by the Department in calendar year 1986,
22no more than 15 Enterprise Zones may be certified by the
23Department in calendar year 1987, and no more than 20
24Enterprise Zones may be certified by the Department in calendar
25year 1990. In other calendar years, no more than 13 Enterprise
26Zones may be certified by the Department. The Department may

 

 

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1also designate up to 8 additional Enterprise Zones outside the
2regular application cycle if warranted by the extreme economic
3circumstances as determined by the Department. The Department
4may also designate one additional Enterprise Zone outside the
5regular application cycle if an aircraft manufacturer agrees to
6locate an aircraft manufacturing facility in the proposed
7Enterprise Zone. Notwithstanding any other provision of this
8Act, no more than 89 Enterprise Zones may be certified by the
9Department for the 10 calendar years commencing with 1983. The
107 additional Enterprise Zones authorized by Public Act 86-15
11shall not lie within municipalities or unincorporated areas of
12counties that abut or are contiguous to Enterprise Zones
13certified pursuant to this Section prior to June 30, 1989. The
147 additional Enterprise Zones (excluding the additional
15Enterprise Zone which may be designated outside the regular
16application cycle) authorized by Public Act 86-1030 shall not
17lie within municipalities or unincorporated areas of counties
18that abut or are contiguous to Enterprise Zones certified
19pursuant to this Section prior to February 28, 1990. Beginning
20in calendar year 2004 and until December 31, 2008, one
21additional enterprise zone may be certified by the Department.
22In any calendar year, the Department may not certify more than
233 Zones located within the same municipality. The Department
24may certify Enterprise Zones in each of the 10 calendar years
25commencing with 1983. The Department may not certify more than
26a total of 18 Enterprise Zones located within the same county

 

 

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1(whether within municipalities or within unincorporated
2territory) for the 10 calendar years commencing with 1983.
3Thereafter, the Department may not certify any additional
4Enterprise Zones, but may amend and rescind certifications of
5existing Enterprise Zones in accordance with Section 5.4.
6Beginning in calendar year 2019 and for any year in which there
7are at least 4 Zones available for designation, at least 25% of
8Zones available for designation in a given calendar year must
9be awarded to Zones located in counties with populations of
10less than 300,000 unless there are no applicants from such
11locations for that calendar year.
12    (e) Notwithstanding any other provision of law, if (i) the
13county board of any county in which a current military base is
14located, in part or in whole, or in which a military base that
15has been closed within 20 years of the effective date of this
16amendatory Act of 1998 is located, in part or in whole, adopts
17a designating ordinance in accordance with Section 5 of this
18Act to designate the military base in that county as an
19enterprise zone and (ii) the property otherwise meets the
20qualifications for an enterprise zone as prescribed in Section
214 of this Act, then the Department may certify the designating
22ordinance or ordinances, as the case may be.
23    (f) Applications for Enterprise Zones that are scheduled to
24expire in 2016, including Enterprise Zones that have been
25extended until 2016 by this amendatory Act of the 97th General
26Assembly, shall be submitted to the Department no later than

 

 

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1December 31, 2014. At that time, the Zone becomes available for
2either the previously designated area or a different area to
3compete for designation. No preference for designation as a
4Zone will be given to the previously designated area.
5    For Enterprise Zones that are scheduled to expire on or
6after January 1, 2017 and prior to January 1, 2022, an
7application process shall begin 2 years prior to the year in
8which the Zone expires. At that time, the Zone becomes
9available for either the previously designated area or a
10different area to compete for designation. For Enterprise Zones
11that are scheduled to expire on or after January 1, 2022, an
12application process shall begin 5 years prior to the year in
13which the Zone expires. At that time, the Zone becomes
14available for either the previously designated area or a
15different area to compete for designation. No preference for
16designation as a Zone will be given to the previously
17designated 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. 98-109, eff. 7-25-13; 99-615, eff. 7-22-16.)
 
22    (20 ILCS 655/5.4)  (from Ch. 67 1/2, par. 609)
23    Sec. 5.4. Amendment and Decertification of Enterprise
24Zones.
25    (a) The terms of a certified enterprise zone designating

 

 

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1ordinance may be amended to
2        (i) alter the boundaries of the Enterprise Zone, or
3        (ii) expand, limit or repeal tax incentives or benefits
4    provided in the ordinance, or
5        (iii) alter the termination date of the zone, or
6        (iv) make technical corrections in the enterprise zone
7    designating ordinance; but such amendment shall not be
8    effective unless the Department issues an amended
9    certificate for the Enterprise Zone, approving the amended
10    designating ordinance. Upon the adoption of any ordinance
11    amending or repealing the terms of a certified enterprise
12    zone designating ordinance, the municipality or county
13    shall promptly file with the Department an application for
14    approval thereof, containing substantially the same
15    information as required for an application under Section
16    5.1 insofar as material to the proposed changes. The
17    municipality or county must hold a public hearing on the
18    proposed changes as specified in Section 5 and, if the
19    amendment is to effectuate the limitation of tax abatements
20    under Section 5.4.1, then the public notice of the hearing
21    shall state that property that is in both the enterprise
22    zone and a redevelopment project area may not receive tax
23    abatements unless within 60 days after the adoption of the
24    amendment to the designating ordinance the municipality
25    has determined that eligibility for tax abatements has been
26    established,

 

 

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1        (v) include an area within another municipality or
2    county as part of the designated enterprise zone provided
3    the requirements of Section 4 are complied with, or
4        (vi) effectuate the limitation of tax abatements under
5    Section 5.4.1.
6    (b) The Department shall approve or disapprove a proposed
7amendment to a certified enterprise zone within 90 days of its
8receipt of the application from the municipality or county. The
9Department may not approve changes in a Zone which are not in
10conformity with this Act, as now or hereafter amended, or with
11other applicable laws. If the Department issues an amended
12certificate for an Enterprise Zone, the amended certificate,
13together with the amended zone designating ordinance, shall be
14filed, recorded and transmitted as provided in Section 5.3.
15    (c) An Enterprise Zone may be decertified by joint action
16of the Department and the designating county or municipality in
17accordance with this Section. The designating county or
18municipality shall conduct at least one public hearing within
19the zone prior to its adoption of an ordinance of
20de-designation. The mayor of the designating municipality or
21the chairman of the county board of the designating county
22shall execute a joint decertification agreement with the
23Department. A decertification of an Enterprise Zone shall not
24become effective until at least 6 months after the execution of
25the decertification agreement, which shall be filed in the
26office of the Secretary of State.

 

 

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1    (d) An Enterprise Zone may be decertified for cause by the
2Department in accordance with this Section. Prior to
3decertification: (1) the Department shall notify the chief
4elected official of the designating county or municipality in
5writing of the specific deficiencies which provide cause for
6decertification; (2) the Department shall place the
7designating county or municipality on probationary status for
8at least 6 months during which time corrective action may be
9achieved in the enterprise zone by the designating county or
10municipality; and, (3) the Department shall conduct at least
11one public hearing within the zone. If such corrective action
12is not achieved during the probationary period, the Department
13shall issue an amended certificate signed by the Director of
14the Department decertifying the enterprise zone, which
15certificate shall be filed in the office of the Secretary of
16State. A certified copy of the amended enterprise zone
17certificate, or a duplicate original thereof, shall be recorded
18in the office of recorder of the county in which the enterprise
19zone lies, and shall be provided to the chief elected official
20of the designating county or municipality. Decertification of
21an Enterprise Zone shall not become effective until 60 days
22after the date of filing.
23    (d-1) The Department shall provisionally decertify any
24Enterprise Zone that fails to report any capital investment,
25job creation or retention, or State tax expenditures for 3
26consecutive calendar years. Prior to provisional

 

 

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1decertification: (1) the Department shall notify the chief
2elected official of the designating county or municipality in
3writing of the specific deficiencies which provide cause for
4decertification; (2) the Department shall place the
5designating county or municipality on probationary status for
6at least 6 months during which time corrective action may be
7achieved in the Enterprise Zone by the designating county or
8municipality; and (3) the Department shall conduct at least one
9public hearing within the Zone. If such corrective action is
10not achieved during the probationary period, the Department
11shall issue an amended certificate signed by the Director of
12the Department provisionally decertifying the Enterprise Zone
13as of the scheduled termination date of the then-current
14designation. In the event that the provisionally-decertified
15Zone was approved and designated after the 101st General
16Assembly and has been in existence for less than 15 years, such
17Zone shall not be eligible for an additional 10-year
18designation after the expiration date of the original Zone set
19forth in subsection (c) of Section 5.3. Further, if such
20corrective action is not achieved during the probationary
21period provided for in this Section, following such
22probationary period the Zone becomes available for a different
23area to compete for designation.
24    (e) In the event of a decertification, provisional
25decertification, or an amendment reducing the length of the
26term or the area of an Enterprise Zone or the adoption of an

 

 

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1ordinance reducing or eliminating tax benefits in an Enterprise
2Zone, all benefits previously extended within the Zone pursuant
3to this Act or pursuant to any other Illinois law providing
4benefits specifically to or within Enterprise Zones shall
5remain in effect for the original stated term of the Enterprise
6Zone, with respect to business enterprises within the Zone on
7the effective date of such decertification, provisional
8decertification, or amendment, and with respect to individuals
9participating in urban homestead programs under this Act.
10    (f) Except as otherwise provided in Section 5.4.1, with
11respect to business enterprises (or expansions thereof) which
12are proposed or under development within a Zone at the time of
13a decertification or an amendment reducing the length of the
14term of the Zone, or excluding from the Zone area the site of
15the proposed enterprise, or an ordinance reducing or
16eliminating tax benefits in a Zone, such business enterprise
17shall be entitled to the benefits previously applicable within
18the Zone for the original stated term of the Zone, if the
19business enterprise establishes:
20        (i) that the proposed business enterprise or expansion
21    has been committed to be located within the Zone;
22        (ii) that substantial and binding financial
23    obligations have been made towards the development of such
24    enterprise; and
25        (iii) that such commitments have been made in
26    reasonable reliance on the benefits and programs which were

 

 

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1    to have been applicable to the enterprise by reason of the
2    Zone, including in the case of a reduction in term of a
3    zone, the original length of the term.
4    In declaratory judgment actions under this paragraph, the
5Department and the designating municipality or county shall be
6necessary parties defendant.
7(Source: P.A. 90-258, eff. 7-30-97.)
 
8    (20 ILCS 655/8.1)
9    Sec. 8.1. Accounting.
10    (a) Any business receiving tax incentives due to its
11location within an Enterprise Zone or its designation as a High
12Impact Business must annually report to the Department of
13Revenue information reasonably required by the Department of
14Revenue to enable the Department to verify and calculate the
15total Enterprise Zone or High Impact Business tax benefits for
16property taxes and taxes imposed by the State that are received
17by the business, broken down by incentive category and
18enterprise zone, if applicable. Reports will be due no later
19than May 31 of each year and shall cover the previous calendar
20year. The first report will be for the 2012 calendar year and
21will be due no later than May 31, 2013. Failure to report data
22may result in ineligibility to receive incentives. To the
23extent that a business receiving tax incentives has obtained an
24Enterprise Zone Building Materials Exemption Certificate or a
25High Impact Business Building Materials Exemption Certificate,

 

 

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1that business is required to report those building materials
2exemption benefits only under subsection (a-5) of this Section.
3No additional reporting for those building materials exemption
4benefits is required under this subsection (a). In addition, if
5the Department determines that 80% or more of the businesses
6receiving tax incentives because of their location within a
7particular Enterprise Zone failed to submit the information
8required under this subsection (a) to the Department in any
9calendar year, then the Enterprise Zone may be decertified by
10the Department. The Department, in consultation with the
11Department of Revenue, is authorized to adopt rules governing
12ineligibility to receive exemptions, including the length of
13ineligibility. Factors to be considered in determining whether
14a business is ineligible shall include, but are not limited to,
15prior compliance with the reporting requirements, cooperation
16in discontinuing and correcting violations, the extent of the
17violation, and whether the violation was willful or
18inadvertent.
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

 

 

HB3707- 29 -LRB101 10001 HLH 55103 b

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 of each year, a report with the Department
22of Revenue, in the manner and form required by the Department
23of Revenue, containing information reasonably required by the
24Department of Revenue to enable the Department of Revenue to
25calculate the amount of the deduction for taxes imposed by the
26State that is taken under each Act, respectively, due to the

 

 

HB3707- 30 -LRB101 10001 HLH 55103 b

1location of a business in an Enterprise Zone or its designation
2as a High Impact Business. The report shall be itemized by
3business and the business location address.
4    (c) Employers shall report their job creation, retention,
5and capital investment numbers within the zone annually to the
6Department of Revenue no later than May 31 of each calendar
7year. High Impact Businesses shall report their job creation,
8retention, and capital investment numbers to the Department of
9Revenue no later than May 31 of each year. With respect to job
10creation or retention, employers and High Impact Businesses
11shall use best efforts to submit diversity information related
12to the gender and ethnicity of such employees.
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 1, 2013, and by August 1 of
18every calendar year thereafter. The Department will include
19this information in their required reports under Section 6 of
20this Act. The Board shall consider this information during the
21reviews required under subsection (d-5) of Section 5.4 of this
22Act and subsection (c) of Section 5.3 of this Act.
23    (e) The Department of Revenue, in its discretion, may
24require that the reports filed under this Section be submitted
25electronically.
26    (f) The Department of Revenue shall have the authority to

 

 

HB3707- 31 -LRB101 10001 HLH 55103 b

1adopt rules as are reasonable and necessary to implement the
2provisions of this Section.
3(Source: P.A. 97-905, eff. 8-7-12; 98-109, eff. 7-25-13.)
 
4    Section 99. Effective date. This Act takes effect January
51, 2020.