Sen. Elgie R. Sims, Jr.
Filed: 4/5/2019
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1 | AMENDMENT TO SENATE BILL 1591
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2 | AMENDMENT NO. ______. Amend Senate Bill 1591 by replacing | ||||||
3 | everything from line 4 on page 1 through line 24 on page 5 with | ||||||
4 | the following:
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5 | "Section 3. The Department of Commerce and Economic | ||||||
6 | Opportunity Law of the
Civil Administrative Code of Illinois is | ||||||
7 | amended by adding Section 605-1025 as follows: | ||||||
8 | (20 ILCS 605/605-1025 new) | ||||||
9 | Sec. 605-1025. Data center investment. | ||||||
10 | (a) The Department shall issue certificates of exemption | ||||||
11 | from the Retailers' Occupation Tax Act, the Use Tax Act, the | ||||||
12 | Service Use Tax Act, and the Service Occupation Tax Act, all | ||||||
13 | locally-imposed retailers' occupation taxes administered and | ||||||
14 | collected by the Department, the Chicago non-titled Use Tax, | ||||||
15 | and the Electricity Excise Tax Act to qualifying Illinois data | ||||||
16 | centers. |
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1 | (b) For purposes of this Section: | ||||||
2 | "Data center" means a building or a series of buildings | ||||||
3 | that is rehabilitated or constructed to house working | ||||||
4 | servers in one physical location or several sites. | ||||||
5 | "Qualifying Illinois data center" means a new or | ||||||
6 | existing data center that: | ||||||
7 | (1) is located in the State of Illinois; | ||||||
8 | (2) in the case of an existing data center, made a | ||||||
9 | capital investment of at least $250,000,000 | ||||||
10 | collectively by the data center operator and the | ||||||
11 | tenants of all of its data centers over the 60-month | ||||||
12 | period immediately prior to January 1, 2020 or | ||||||
13 | committed to make a capital investment of at least | ||||||
14 | $250,000,000 over a 60-month period commencing before | ||||||
15 | January 1, 2020 and ending after January 1, 2020; or | ||||||
16 | (3) in the case of a new data center, makes a | ||||||
17 | capital investment of at least $250,000,000 over a | ||||||
18 | 60-month period; and | ||||||
19 | (4) in the case of both existing and new data | ||||||
20 | centers, results in the creation of at least 20 | ||||||
21 | full-time or full-time equivalent new jobs over a | ||||||
22 | period of 60 months by the data center operator and the | ||||||
23 | tenants of the data center, collectively, associated | ||||||
24 | with the operation or maintenance of the data center; | ||||||
25 | those jobs must have a total compensation equal to or | ||||||
26 | greater than 120% of the median wage paid to full-time |
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1 | employees in the county where the data center is | ||||||
2 | located, as determined by the U.S. Bureau of Labor | ||||||
3 | Statistics; and | ||||||
4 | (5) is carbon neutral or attains certification | ||||||
5 | under one or more of the following green building | ||||||
6 | standards: | ||||||
7 | (A) BREEAM for New Construction or BREEAM | ||||||
8 | In-Use; | ||||||
9 | (B) ENERGY STAR; | ||||||
10 | (C) Envision; | ||||||
11 | (D) ISO 50001-energy management; | ||||||
12 | (E) LEED for Building Design and Construction | ||||||
13 | or LEED for Operations and Maintenance; | ||||||
14 | (F) Green Globes for New Construction or Green | ||||||
15 | Globes for Existing Buildings; | ||||||
16 | (G) UL 3223; or | ||||||
17 | (H) an equivalent program approved by the | ||||||
18 | Department of Commerce and Economic Opportunity. | ||||||
19 | "Full-time equivalent job" means a job in which the new | ||||||
20 | employee works for the owner, operator, contractor, or | ||||||
21 | tenant of a data center or for a corporation under contract | ||||||
22 | with the owner, operator or tenant of a data center at a | ||||||
23 | rate of at least 35 hours per week. An owner, operator or | ||||||
24 | tenant who employs labor or services at a specific site or | ||||||
25 | facility under contract with another may declare one | ||||||
26 | full-time, permanent job for every 1,820 man hours worked |
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1 | per year under that contract. Vacations, paid holidays, and | ||||||
2 | sick time are included in this computation. Overtime is not | ||||||
3 | considered a part of regular hours. | ||||||
4 | "Qualified tangible personal property" means: | ||||||
5 | electrical systems and equipment; climate control and | ||||||
6 | chilling equipment and systems; mechanical systems and | ||||||
7 | equipment; monitoring and secure systems; emergency | ||||||
8 | generators; hardware; computers; servers; data storage | ||||||
9 | devices; network connectivity equipment; racks; cabinets; | ||||||
10 | telecommunications cabling infrastructure; raised floor | ||||||
11 | systems; peripheral components or systems; software; | ||||||
12 | mechanical, electrical, or plumbing systems; battery | ||||||
13 | systems; cooling systems and towers; temperature control | ||||||
14 | systems; other cabling; and other data center | ||||||
15 | infrastructure equipment and systems necessary to operate | ||||||
16 | qualified tangible personal property, including fixtures; | ||||||
17 | and component parts of any of the foregoing, including | ||||||
18 | installation, maintenance, repair, refurbishment, and | ||||||
19 | replacement of qualified tangible personal property to | ||||||
20 | generate, transform, transmit, distribute, or manage | ||||||
21 | electricity necessary to operate qualified tangible | ||||||
22 | personal property; and all other tangible personal | ||||||
23 | property that is essential to the operations of a computer | ||||||
24 | data center. "Qualified tangible personal property" also | ||||||
25 | includes building materials physically incorporated in to | ||||||
26 | the qualifying data center. |
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1 | To document the exemption allowed under this Section, the | ||||||
2 | retailer must obtain from the purchaser a copy of the | ||||||
3 | certificate of eligibility issued by the Department. | ||||||
4 | (c) New and existing data centers seeking a certificate of | ||||||
5 | exemption for new or existing facilities shall apply to the | ||||||
6 | Department in the manner specified by the Department. The | ||||||
7 | Department and any data center seeking the exemption, including | ||||||
8 | a data center operator on behalf of itself and its tenants, | ||||||
9 | must enter into a memorandum of understanding that at a minimum | ||||||
10 | provides: | ||||||
11 | (1) the details for determining the amount of capital | ||||||
12 | investment to be made; | ||||||
13 | (2) the number of new jobs created; | ||||||
14 | (3) the timeline for achieving the capital investment | ||||||
15 | and new job goals; | ||||||
16 | (4) the repayment obligation should those goals not be | ||||||
17 | achieved and any conditions under which repayment by the | ||||||
18 | qualifying data center or data center tenant claiming the | ||||||
19 | exemption will be required;
and | ||||||
20 | (5) other provisions as deemed necessary by the | ||||||
21 | Department. | ||||||
22 | (d) Beginning July 1, 2021, and each year thereafter, the | ||||||
23 | Department shall annually report to the Governor and the | ||||||
24 | General Assembly on the outcomes and effectiveness of this | ||||||
25 | amendatory Act of the 101st General Assembly that shall include | ||||||
26 | the following: |
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1 | (1) the name of each recipient business; | ||||||
2 | (2) the location of the project; | ||||||
3 | (3) the estimated value of the credit; | ||||||
4 | (4) the number of new jobs and, if applicable, retained | ||||||
5 | jobs pledged as a result of the project; and | ||||||
6 | (5) whether or not the project is located in an | ||||||
7 | underserved area. | ||||||
8 | (e) New and existing data centers seeking a certificate of | ||||||
9 | exemption related to the rehabilitation or construction of data | ||||||
10 | centers in the State shall require the contractor and all | ||||||
11 | subcontractors to comply with the requirements of Section 30-22 | ||||||
12 | of the Illinois Procurement Code as they apply to responsible | ||||||
13 | bidders and to present satisfactory evidence of that compliance | ||||||
14 | to the Department. | ||||||
15 | (f) New and existing data centers seeking a certificate of | ||||||
16 | exemption for the rehabilitation or construction of data | ||||||
17 | centers in the State shall require the contractor to enter into | ||||||
18 | a project labor agreement approved by the Department. "; and
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19 | on page 23, line 16, by replacing " Department " with " Department | ||||||
20 | of Commerce and Economic Opportunity "; and | ||||||
21 | on page 24, line 1, by replacing " Department " with " Department | ||||||
22 | of Commerce and Economic Opportunity "; and | ||||||
23 | on page 24, by replacing lines 3 and 4 with the following: |
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1 | " Section 605-1025 of the Department of Commerce and Economic | ||||||
2 | Opportunity Law of the
Civil Administrative Code of Illinois. "; | ||||||
3 | and | ||||||
4 | on page 25, line 9, by replacing " Department " with " Department | ||||||
5 | of Commerce and Economic Opportunity "; and | ||||||
6 | on page 40, line 9, by replacing " Department " with " Department | ||||||
7 | of Commerce and Economic Opportunity "; and | ||||||
8 | on page 40, line 20, by replacing " Department " with " Department | ||||||
9 | of Commerce and Economic Opportunity "; and | ||||||
10 | on page 40, by replacing lines 22 and 23 with the following: | ||||||
11 | " Section 605-1025 of the Department of Commerce and Economic | ||||||
12 | Opportunity Law of the
Civil Administrative Code of Illinois. "; | ||||||
13 | and | ||||||
14 | on page 42, line 2, by replacing " Department " with " Department | ||||||
15 | of Commerce and Economic Opportunity "; and | ||||||
16 | on page 55, line 15, by replacing " Department " with " Department | ||||||
17 | of Commerce and Economic Opportunity "; and | ||||||
18 | on page 55, line 26, by replacing " Department " with " Department | ||||||
19 | of Commerce and Economic Opportunity "; and |
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1 | on page 56, by replacing lines 2 and 3 with the following: | ||||||
2 | " Section 605-1025 of the Department of Commerce and Economic | ||||||
3 | Opportunity Law of the
Civil Administrative Code of Illinois. "; | ||||||
4 | and | ||||||
5 | on page 57, line 8, by replacing " Department " with " Department | ||||||
6 | of Commerce and Economic Opportunity "; and | ||||||
7 | on page 78, line 17, by replacing " Department " with " Department | ||||||
8 | of Commerce and Economic Opportunity "; and | ||||||
9 | on page 79, line 3, by replacing " Department " with " Department | ||||||
10 | of Commerce and Economic Opportunity "; and | ||||||
11 | on page 79, by replacing lines 5 and 6 with the following: | ||||||
12 | " Section 605-1025 of the Department of Commerce and Economic | ||||||
13 | Opportunity Law of the
Civil Administrative Code of Illinois. "; | ||||||
14 | and | ||||||
15 | on page 80, line 12, by replacing " Department " with " Department | ||||||
16 | of Commerce and Economic Opportunity ".
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