Sen. James F. Clayborne, Jr.
Filed: 3/15/2010
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1 | AMENDMENT TO SENATE BILL 352
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2 | AMENDMENT NO. ______. Amend Senate Bill 352 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | "Section 5. The River Edge Redevelopment Zone Act is | ||||||
5 | amended by adding Section 10-15 as follows: | ||||||
6 | (65 ILCS 115/10-15 new) | ||||||
7 | Sec. 10-15. Riverfront Development Fund. | ||||||
8 | (a) Purpose. The General Assembly has determined that it is | ||||||
9 | in the interest of the State of Illinois to promote development | ||||||
10 | that will protect, promote, and improve the riverfront areas of | ||||||
11 | a financially distressed city designated under the Financially | ||||||
12 | Distressed City Law. | ||||||
13 | (b) Definitions. As used in this Section: | ||||||
14 | "Agreement" means the agreement between an eligible | ||||||
15 | employer and the Department under the provisions of | ||||||
16 | subsection (f) of this Section. |
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1 | "Department" means the Department of Commerce and | ||||||
2 | Economic Opportunity. | ||||||
3 | "Director" means the Director of Commerce and Economic | ||||||
4 | Opportunity. | ||||||
5 | "Eligible developer" means an individual, partnership, | ||||||
6 | corporation, or other entity that develops within a river | ||||||
7 | edge redevelopment zone that is located within a | ||||||
8 | municipality designated as a financially distressed city. | ||||||
9 | "Eligible employer" means an individual, partnership, | ||||||
10 | corporation, or other entity that employs full-time | ||||||
11 | employees within a river edge redevelopment zone that is | ||||||
12 | located within a municipality designated as a financially | ||||||
13 | distressed city. | ||||||
14 | "Full-time employee" means an individual who is | ||||||
15 | employed for consideration for at least 35 hours each week | ||||||
16 | or who renders any other standard of service generally | ||||||
17 | accepted by industry custom or practice as full-time | ||||||
18 | employment. An individual for whom a W-2 is issued by a | ||||||
19 | Professional Employer Organization (PEO) is a full-time | ||||||
20 | employee if employed in the service of the eligible | ||||||
21 | employer for consideration for at least 35 hours each week | ||||||
22 | or who renders any other standard of service generally | ||||||
23 | accepted by industry custom or practice as full-time | ||||||
24 | employment. | ||||||
25 | "Incremental income tax" means the total amount | ||||||
26 | withheld from the compensation of new employees under |
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1 | Article 7 of the Illinois Income Tax Act arising from | ||||||
2 | employment by an eligible employer. | ||||||
3 | "Infrastructure" means roads, access roads, streets, | ||||||
4 | bridges, sidewalks, water and sewer line extensions, water | ||||||
5 | distribution and purification facilities, waste disposal | ||||||
6 | systems, sewage treatment facilities, stormwater drainage | ||||||
7 | and retention facilities, gas and electric utility line | ||||||
8 | extensions, or other improvements that are essential to the | ||||||
9 | development of the project that is the subject of an | ||||||
10 | agreement. | ||||||
11 | "New employee" means a full-time employee first | ||||||
12 | employed by an eligible employer in the project that is the | ||||||
13 | subject of an agreement between the Department and an | ||||||
14 | eligible developer and who is hired after the eligible | ||||||
15 | developer enters into the agreement, but does not include: | ||||||
16 | (1) an employee of the eligible employer who | ||||||
17 | performs a job that (i) existed for at least 6 months | ||||||
18 | before the employee was hired and (ii) was previously | ||||||
19 | performed by another employee; | ||||||
20 | (2) an employee of the eligible employer who was | ||||||
21 | previously employed in Illinois by a related member of | ||||||
22 | the eligible employer and whose employment was shifted | ||||||
23 | to the eligible employer after the eligible employer | ||||||
24 | entered into the agreement; or | ||||||
25 | (3) a child, grandchild, parent, or spouse, other | ||||||
26 | than a spouse who is legally separated from the |
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1 | individual, of any individual who has a direct or an | ||||||
2 | indirect ownership interest of at least 5% in the | ||||||
3 | profits, capital, or value of the eligible employer. | ||||||
4 | Notwithstanding item (2) of this definition, an | ||||||
5 | employee may be considered a new employee under the | ||||||
6 | agreement if the employee performs a job that was | ||||||
7 | previously performed by an employee who was: | ||||||
8 | (A) treated under the agreement as a new employee; | ||||||
9 | and | ||||||
10 | (B) promoted by the eligible employer to another | ||||||
11 | job. | ||||||
12 | "Professional Employer Organization" (PEO) means an | ||||||
13 | employee leasing company, as defined in Section | ||||||
14 | 206.1(A)(2) of the Illinois Unemployment Insurance Act. | ||||||
15 | "Related member" means a person or entity that, with | ||||||
16 | respect to the eligible employer during any portion of the | ||||||
17 | taxable year, is any one of the following: | ||||||
18 | (1) an individual stockholder, if the stockholder | ||||||
19 | and the members of the stockholder's family (as defined | ||||||
20 | in Section 318 of the Internal Revenue Code) own | ||||||
21 | directly, indirectly, beneficially, or constructively, | ||||||
22 | in the aggregate, at least 50% of the value of the | ||||||
23 | eligible employer's outstanding stock; | ||||||
24 | (2) a partnership, estate, or trust and any partner | ||||||
25 | or beneficiary, if the partnership, estate, or trust, | ||||||
26 | and its partners or beneficiaries own directly, |
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1 | indirectly, or beneficially, or constructively, in the | ||||||
2 | aggregate, at least 50% of the profits, capital, stock, | ||||||
3 | or value of the eligible employer; | ||||||
4 | (3) a corporation, and any party related to the | ||||||
5 | corporation in a manner that would require an | ||||||
6 | attribution of stock from the corporation to the party | ||||||
7 | or from the party to the corporation under the | ||||||
8 | attribution rules of Section 318 of the Internal | ||||||
9 | Revenue Code, if the taxpayer owns directly, | ||||||
10 | indirectly, beneficially, or constructively at least | ||||||
11 | 50% of the value of the corporation's outstanding | ||||||
12 | stock; | ||||||
13 | (4) a corporation and any party related to that | ||||||
14 | corporation in a manner that would require an | ||||||
15 | attribution of stock from the corporation to the party | ||||||
16 | or from the party to the corporation under the | ||||||
17 | attribution rules of Section 318 of the Internal | ||||||
18 | Revenue Code, if the corporation and all such related | ||||||
19 | parties own in the aggregate at least 50% of the | ||||||
20 | profits, capital, stock, or value of the eligible | ||||||
21 | employer; or | ||||||
22 | (5) a person to or from whom there is attribution | ||||||
23 | of stock ownership in accordance with Section 1563(e) | ||||||
24 | of the Internal Revenue Code, except, for purposes of | ||||||
25 | determining whether a person is a related member under | ||||||
26 | this definition, 20% shall be substituted for 5% |
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1 | wherever 5% appears in Section 1563(e) of the Internal | ||||||
2 | Revenue Code. | ||||||
3 | (c) The Riverfront Development Fund. The Riverfront | ||||||
4 | Development Fund is created as a special fund in the State | ||||||
5 | treasury. As soon as possible after the first day of each | ||||||
6 | month, upon certification of the Department of Revenue, the | ||||||
7 | Comptroller shall order transferred and the Treasurer shall | ||||||
8 | transfer from the General Revenue Fund to the Riverfront | ||||||
9 | Development Fund an amount equal to the incremental income tax | ||||||
10 | for the previous month attributable to a project that is the | ||||||
11 | subject of an agreement. | ||||||
12 | (d) Grants from the Riverfront Development Fund. In State | ||||||
13 | fiscal years 2011 through 2020, all moneys in the Riverfront | ||||||
14 | Development Fund, held solely for the benefit of eligible | ||||||
15 | developers, shall be appropriated to the Department to make | ||||||
16 | infrastructure grants to eligible developers pursuant to | ||||||
17 | agreements. | ||||||
18 | (e) Limitation on grant amounts. The total amount of a | ||||||
19 | grant to an eligible developer shall not exceed the lesser of: | ||||||
20 | (1) $3,000,000 in each State fiscal year; or | ||||||
21 | (2) the total amount of infrastructure costs incurred | ||||||
22 | by the eligible developer with respect to a project that is | ||||||
23 | the subject of an agreement. | ||||||
24 | No eligible developer shall receive moneys that are | ||||||
25 | attributable to a project that is not the subject of the | ||||||
26 | developer's agreement with the Department. |
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1 | (f) Agreements with applicants. The Department shall enter | ||||||
2 | into an agreement with an eligible developer who is entitled to | ||||||
3 | grants under this Section. The agreement must include all of | ||||||
4 | the following: | ||||||
5 | (1) A detailed description of the project that is the | ||||||
6 | subject of the agreement, including the location of the | ||||||
7 | project, the number of jobs created by the project, and | ||||||
8 | project costs. For purposes of this subsection, "project | ||||||
9 | costs" includes the costs of the project incurred or to be | ||||||
10 | incurred by the eligible developer, including | ||||||
11 | infrastructure costs, but excludes the value of State or | ||||||
12 | local incentives, including tax increment financing and | ||||||
13 | deductions, credits, or exemptions afforded to an employer | ||||||
14 | located in an enterprise zone. | ||||||
15 | (2) A requirement that the eligible developer shall | ||||||
16 | maintain operations at the project location, stated as a | ||||||
17 | minimum number of years not to exceed 10 years. | ||||||
18 | (3) A specific method for determining the number of new | ||||||
19 | employees attributable to the project. | ||||||
20 | (4) A requirement that the eligible developer shall | ||||||
21 | report monthly to the Department and the Department of | ||||||
22 | Revenue the number of new employees and the incremental | ||||||
23 | income tax withheld in connection with the new employees. | ||||||
24 | (5) A requirement that the Department is authorized to | ||||||
25 | verify with the Department of Revenue the amounts reported | ||||||
26 | under paragraph (4). |
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1 | Section 10. The State Finance Act is amended by adding | ||||||
2 | Section 5.756 as follows: | ||||||
3 | (30 ILCS 105/5.756 new) | ||||||
4 | Sec. 5.756. The Riverfront Development Fund.
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5 | Section 99. Effective date. This Act takes effect upon | ||||||
6 | becoming law.".
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