Illinois General Assembly - Full Text of HB5185
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Full Text of HB5185  102nd General Assembly

HB5185eng 102ND GENERAL ASSEMBLY

  
  
  

 


 
HB5185 EngrossedLRB102 24773 RJF 34015 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 Department of Commerce and Economic
5Opportunity Law of the Civil Administrative Code of Illinois
6is amended by changing Sections 605-300, 605-615, and 605-680
7as follows:
 
8    (20 ILCS 605/605-300)  (was 20 ILCS 605/46.2)
9    Sec. 605-300. Economic and business development plans;
10Illinois Business Development Council. (a) Economic
11development plans. The Department shall develop a strategic
12economic development plan for the State by July 1, 2014. By no
13later than July 1, 2015, and by July 1 annually thereafter, the
14Department shall make modifications to the plan as
15modifications are warranted by changes in economic conditions
16or by other factors, including changes in policy. In addition
17to the annual modification, the plan shall be reviewed and
18redeveloped in full every 5 years. In the development of the
19annual economic development plan, the Department shall consult
20with representatives of the private sector, other State
21agencies, academic institutions, local economic development
22organizations, local governments, and not-for-profit
23organizations. The annual economic development plan shall set

 

 

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1specific, measurable, attainable, relevant, and time-sensitive
2goals and shall include a focus on areas of high unemployment
3or poverty.
4    The term "economic development" shall be construed broadly
5by the Department and may include, but is not limited to, job
6creation, job retention, tax base enhancements, development of
7human capital, workforce productivity, critical
8infrastructure, regional competitiveness, social inclusion,
9standard of living, environmental sustainability, energy
10independence, quality of life, the effective use of financial
11incentives, the utilization of public private partnerships
12where appropriate, and other metrics determined by the
13Department.
14    The plan shall be based on relevant economic data, focus
15on economic development as prescribed by this Section, and
16emphasize strategies to retain and create jobs.
17    The plan shall identify and develop specific strategies
18for utilizing the assets of regions within the State defined
19as counties and municipalities or other political subdivisions
20in close geographical proximity that share common economic
21traits such as commuting zones, labor market areas, or other
22economically integrated characteristics.
23    If the plan includes strategies that have a fiscal impact
24on the Department or any other agency, the plan shall include a
25detailed description of the estimated fiscal impact of such
26strategies.

 

 

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1    Prior to publishing the plan in its final form, the
2Department shall allow for a reasonable time for public input.
3    The Department shall transmit copies of the economic
4development plan to the Governor and the General Assembly no
5later than July 1, 2014, and by July 1 annually thereafter. The
6plan and its corresponding modifications shall be published
7and made available to the public in both paper and electronic
8media, on the Department's website, and by any other method
9that the Department deems appropriate.
10    The Department shall annually submit legislation to
11implement the strategic economic development plan or
12modifications to the strategic economic development plan to
13the Governor, the President and Minority Leader of the Senate,
14and the Speaker and the Minority Leader of the House of
15Representatives. The legislation shall be in the form of one
16or more substantive bills drafted by the Legislative Reference
17Bureau.
18    (b) Business development plans; Illinois Business
19Development Council.
20        (1) There is created the Illinois Business Development
21    Council, hereinafter referred to as the Council. The
22    Council shall consist of the Director, who shall serve as
23    co-chairperson, and 12 voting members who shall be
24    appointed by the Governor with the advice and consent of
25    the Senate.
26            (A) The voting members of the Council shall

 

 

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1        include one representative from each of the following
2        businesses and groups: small business, coal,
3        healthcare, large manufacturing, small or specialized
4        manufacturing, agriculture, high technology or applied
5        science, local economic development entities, private
6        sector organized labor, a local or state business
7        association or chamber of commerce.
8            (B) There shall be 2 at-large voting members who
9        reside within areas of high unemployment within
10        counties or municipalities that have had an annual
11        average unemployment rate of at least 120% of the
12        State's annual average unemployment rate as reported
13        by the Department of Employment Security for the 5
14        years preceding the date of appointment.
15        (2) All appointments shall be made in a geographically
16    diverse manner.
17        (3) For the initial appointments to the Council, 6
18    voting members shall be appointed to serve a 2-year term
19    and 6 voting members shall be appointed to serve a 4-year
20    term. Thereafter, all appointments shall be for terms of 4
21    years. The initial term of voting members shall commence
22    on the first Wednesday in February 2014. Thereafter, the
23    terms of voting members shall commence on the first
24    Wednesday in February, except in the case of an
25    appointment to fill a vacancy. Vacancies occurring among
26    the members shall be filled in the same manner as the

 

 

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1    original appointment for the remainder of the unexpired
2    term. For a vacancy occurring when the Senate is not in
3    session, the Governor may make a temporary appointment
4    until the next meeting of the Senate when a person shall be
5    nominated to fill the office, and, upon confirmation by
6    the Senate, he or she shall hold office during the
7    remainder of the term. A vacancy in membership does not
8    impair the ability of a quorum to exercise all rights and
9    perform all duties of the Council. A member is eligible
10    for reappointment.
11        (4) Members shall serve without compensation, but may
12    be reimbursed for necessary expenses incurred in the
13    performance of their duties from funds appropriated for
14    that purpose.
15        (5) In addition, the following shall serve as ex
16    officio, non-voting members of the Council in order to
17    provide specialized advice and support to the Council: the
18    Secretary of Transportation, or his or her designee; the
19    Director of Employment Security, or his or her designee;
20    the Executive Director of the Illinois Finance Authority,
21    or his or her designee; the Director of Agriculture, or
22    his or her designee; the Director of Revenue, or his or her
23    designee; the Director of Labor, or his or her designee;
24    and the Director of the Environmental Protection Agency,
25    or his or her designee. Ex officio members shall provide
26    staff and technical assistance to the Council when

 

 

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1    appropriate.
2        (6) In addition to the Director, the voting members
3    shall elect a co-chairperson.
4        (7) The Council shall meet at least twice annually and
5    at such other times as the co-chairpersons or any 5 voting
6    members consider necessary. Seven voting members shall
7    constitute a quorum of the Council.
8        (8) The Department shall provide staff assistance to
9    the Council.
10        (9) The Council shall provide the Department relevant
11    information in a timely manner pursuant to its duties as
12    enumerated in this Section that can be used by the
13    Department to enhance the State's strategic economic
14    development plan.
15        (10) The Council shall:
16            (A) Develop an overall strategic business
17        development plan for the State of Illinois and update
18        the plan at least annually; that plan shall include,
19        without limitation, (i) an assessment of the economic
20        development practices of states that border Illinois
21        and (ii) recommendations for best practices with
22        respect to economic development, business incentives,
23        business attraction, and business retention for
24        counties in Illinois that border at least one other
25        state.
26            (B) Develop business marketing plans for the State

 

 

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1        of Illinois to effectively solicit new company
2        investment and existing business expansion. Insofar as
3        allowed under the Illinois Procurement Code, and
4        subject to appropriations made by the General Assembly
5        for such purposes, the Council may assist the
6        Department in the procurement of outside vendors to
7        carry out such marketing plans.
8            (C) Seek input from local economic development
9        officials to develop specific strategies to
10        effectively link State and local business development
11        and marketing efforts focusing on areas of high
12        unemployment or poverty.
13            (D) Provide the Department with advice on
14        strategic business development and business marketing
15        for the State of Illinois.
16            (E) Provide the Department research and recommend
17        best practices for developing investment tools for
18        business attraction and retention.
19(Source: P.A. 98-397, eff. 8-16-13; 98-756, eff. 7-16-14;
2098-888, eff. 8-15-14.)
 
21    (20 ILCS 605/605-615)  (was 20 ILCS 605/46.19e)
22    Sec. 605-615. Assistance with exports. The Department
23shall have the following duties and responsibilities in regard
24to the Civil Administrative Code of Illinois:
25    (1) To establish or cosponsor mentoring conferences,

 

 

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1utilizing experienced manufacturing exporters, to explain and
2provide information to prospective export manufacturers and
3businesses concerning the process of exporting to both
4domestic and international opportunities.
5    (2) To provide technical assistance to prospective export
6manufacturers and businesses seeking to establish domestic and
7international export opportunities.
8    (3) To coordinate with the Department's Small Business
9Development Centers to link buyers with prospective export
10manufacturers and businesses.
11    (4) To promote, both domestically and abroad, products
12made in Illinois in order to inform consumers and buyers of
13their high quality standards and craftsmanship.
14    (5) To provide technical assistance toward establishment
15of export trade corporations in the private sector.
16    (6) To develop an electronic data base to compile
17information on international trade and investment activities
18in Illinois companies, provide access to research and business
19opportunities through external data bases, and connect this
20data base through international communication systems with
21appropriate domestic and worldwide networks users.
22    (7) To collect and distribute to foreign commercial
23libraries directories, catalogs, brochures, and other
24information of value to foreign businesses considering doing
25business in this State.
26    (8) To establish an export finance awareness program to

 

 

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1provide information to banking organizations about methods
2used by banks to provide financing for businesses engaged in
3exporting and about other State and federal programs to
4promote and expedite export financing.
5    (9) To undertake a survey of Illinois' businesses to
6identify exportable products and the businesses interested in
7exporting.
8(Source: P.A. 91-239, eff. 1-1-00; 91-357, eff. 7-29-99;
992-16, eff. 6-28-01.)
 
10    (20 ILCS 605/605-680)
11    Sec. 605-680. Illinois goods and services website.
12    (a) The Department, in consultation with the Department of
13Innovation and Technology, must establish and maintain an
14Internet website devoted to the marketing of Illinois goods
15and services by linking potential purchasers with producers of
16goods and services who are located in the State.
17    (b) The Department must, subject to appropriation,
18advertise the website to encourage inclusion of producers on
19the website and to encourage the use of the website by
20potential purchasers.
21(Source: P.A. 100-611, eff. 7-20-18.)
 
22    (20 ILCS 605/605-550 rep.)
23    (20 ILCS 605/605-1040 rep.)
24    Section 10. The Department of Commerce and Economic

 

 

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1Opportunity Law of the Civil Administrative Code of Illinois
2is amended by repealing Sections 605-550 and 605-1040.
 
3    Section 15. The Illinois Main Street Act is amended by
4changing Sections 15, 20, 25, and 30 as follows:
 
5    (20 ILCS 720/15)
6    Sec. 15. Illinois Main Street Program. The Illinois Main
7Street Program is created, subject to appropriation, within
8the Department. In order to implement the Illinois Main Street
9Program, the Department may shall do all of the following:
10        (1) Provide assistance to municipalities designated as
11    Main Street Communities, municipalities interested in
12    becoming designated through the program, and businesses,
13    property owners, organizations, and municipalities
14    undertaking a comprehensive downtown or neighborhood
15    commercial district revitalization initiative and
16    management strategy. Assistance may include, but is not
17    limited to, initial site evaluations and assessments,
18    training for local programs, training for local program
19    staff, site visits and assessments by technical
20    specialists, local program design assistance and
21    evaluation, and continued local program on-site
22    assistance.
23        (2) To the extent funds are made available, provide
24    financial assistance to municipalities or local

 

 

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1    organizations to assist in initial downtown or
2    neighborhood commercial district revitalization program
3    specialized training, specific project feasibility
4    studies, market studies, and design assistance.
5        (3) Operate the Illinois Main Street Program in
6    accordance with the plan developed by the Department.
7        (4) Consider other factors the Department deems
8    necessary for the implementation of this Act.
9(Source: P.A. 97-573, eff. 8-25-11.)
 
10    (20 ILCS 720/20)
11    Sec. 20. Main Street Community designation.
12    (a) The Department may shall adopt criteria for the
13designation of a Main Street Community. In establishing the
14criteria, the Department shall consider all of the following:
15        (1) The degree of interest and commitment to
16    comprehensive downtown or neighborhood commercial district
17    revitalization and, where applicable, historic
18    preservation by both the public and private sectors.
19        (2) The evidence of potential private sector
20    investment in the downtown or neighborhood commercial
21    district.
22        (3) Where applicable, a downtown or neighborhood
23    commercial district with sufficient historic fabric to
24    become a foundation for an enhanced community image.
25        (4) The capacity of the organization to undertake a

 

 

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1    comprehensive program and the financial commitment to
2    implement a long-term downtown or neighborhood commercial
3    district revitalization program that includes a commitment
4    to employ a professional program manager.
5        (5) The National Main Street Center's criteria for
6    designating official main street municipalities.
7        (6) Other factors the Department deems necessary for
8    the designation of a local program.
9    (b) Illinois Main Street shall designate local downtown or
10neighborhood commercial district revitalization programs and
11official local main street programs.
12    (c) The Department must approve all local downtown or
13neighborhood commercial district revitalization program
14boundaries. The boundaries of a local downtown or neighborhood
15commercial district revitalization program are typically
16defined using the pedestrian core of a traditional commercial
17district.
18(Source: P.A. 97-573, eff. 8-25-11.)
 
19    (20 ILCS 720/25)
20    Sec. 25. Illinois Main Street Plan. The Department may
21shall, in consultation with the Lieutenant Governor, develop a
22plan for the Illinois Main Street Program. The plan shall
23describe:
24        (1) the objectives and strategies of the Illinois Main
25    Street Program;

 

 

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1        (2) how the Illinois Main Street Program will be
2    coordinated with existing federal, state, local, and
3    private sector business development and historic
4    preservation efforts;
5        (3) the means by which private investment will be
6    solicited and employed;
7        (4) the methods of selecting and providing assistance
8    to participating local programs; and
9        (5) a means to solicit private contributions for State
10    and local operations of the Illinois Main Street Program.
11(Source: P.A. 97-573, eff. 8-25-11.)
 
12    (20 ILCS 720/30)
13    Sec. 30. Role of the Lieutenant Governor. The Lieutenant
14Governor shall, subject to appropriation, be the Ambassador of
15the Illinois Main Street Program. The Department shall,
16subject to appropriation, advise and consult with the
17Lieutenant Governor on the activities of the Illinois Main
18Street Program. The Lieutenant Governor, with the assistance
19of the Department, shall, subject to appropriation, promote
20and encourage the success of the Illinois Main Street Program.
21(Source: P.A. 97-573, eff. 8-25-11.)
 
22    Section 20. The Outdoor Recreation Resources Act is
23amended by changing Sections 2 and 2a as follows:
 

 

 

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1    (20 ILCS 860/2)  (from Ch. 105, par. 532)
2    Sec. 2. The Department of Natural Resources is authorized
3to have prepared, with the Department of Commerce and Economic
4Opportunity, and to maintain and keep up-to-date a
5comprehensive plan for the development of the outdoor
6recreation resources of the State.
7(Source: P.A. 94-793, eff. 5-19-06.)
 
8    (20 ILCS 860/2a)  (from Ch. 105, par. 532a)
9    Sec. 2a. The Department of Natural Resources is authorized
10to have prepared with the Department of Commerce and Economic
11Opportunity and to maintain and keep up to date a
12comprehensive plan for the preservation of the historically
13significant properties and interests of the State.
14(Source: P.A. 100-695, eff. 8-3-18; 101-81, eff. 7-12-19.)
 
15    (20 ILCS 3953/15 rep.)
16    (20 ILCS 3953/20 rep.)
17    Section 25. The Government Buildings Energy Cost Reduction
18Act of 1991 is amended by repealing Sections 15 and 20.
 
19    Section 30. The Eliminate the Digital Divide Law is
20amended by changing Section 5-30 as follows:
 
21    (30 ILCS 780/5-30)
22    Sec. 5-30. Community Technology Center Grant Program.

 

 

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1    (a) Subject to appropriation, the Department shall
2administer the Community Technology Center Grant Program under
3which the Department shall make grants in accordance with this
4Article for planning, establishment, administration, and
5expansion of Community Technology Centers and for assisting
6public hospitals, libraries, and park districts in eliminating
7the digital divide. The purposes of the grants shall include,
8but not be limited to, volunteer recruitment and management,
9training and instruction, infrastructure, and related goods
10and services, including case management, administration,
11personal information management, and outcome-tracking tools
12and software for the purposes of reporting to the Department
13and for enabling participation in digital government and
14consumer services programs, for Community Technology Centers
15and public hospitals, libraries, and park districts. No
16Community Technology Center may receive a grant of more than
17$75,000 under this Section in a particular fiscal year.
18    (b) Public hospitals, libraries, park districts, and State
19educational agencies, local educational agencies, institutions
20of higher education, senior citizen homes, and other public
21and private nonprofit or for-profit agencies and organizations
22are eligible to receive grants under this Program, provided
23that a local educational agency or public or private
24educational agency or organization must, in order to be
25eligible to receive grants under this Program, provide
26computer access and educational services using information

 

 

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1technology to the public at one or more of its educational
2buildings or facilities at least 12 hours each week. A group of
3eligible entities is also eligible to receive a grant if the
4group follows the procedures for group applications in 34 CFR
575.127-129 of the Education Department General Administrative
6Regulations.
7    To be eligible to apply for a grant, a Community
8Technology Center must serve a community in which not less
9than 40% of the students are eligible for a free or reduced
10price lunch under the national school lunch program or in
11which not less than 30% of the students are eligible for a free
12lunch under the national school lunch program; however, if
13funding is insufficient to approve all grant applications for
14a particular fiscal year, the Department may impose a higher
15minimum percentage threshold for that fiscal year.
16Determinations of communities and determinations of the
17percentage of students in a community who are eligible for a
18free or reduced price lunch under the national school lunch
19program shall be in accordance with rules adopted by the
20Department.
21    Any entities that have received a Community Technology
22Center grant under the federal Community Technology Centers
23Program are also eligible to apply for grants under this
24Program.
25    The Department shall provide assistance to Community
26Technology Centers in making those determinations for purposes

 

 

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1of applying for grants.
2    The Department shall encourage Community Technology
3Centers to participate in public and private computer hardware
4equipment recycling initiatives that provide computers at
5reduced or no cost to low-income families, including programs
6authorized by the State Property Control Act. On an annual
7basis, the Department must provide the Director of Central
8Management Services with a list of Community Technology
9Centers that have applied to the Department for funding as
10potential recipients of surplus State-owned computer hardware
11equipment under programs authorized by the State Property
12Control Act.
13    (c) Grant applications shall be submitted to the
14Department on a schedule of one or more deadlines established
15by the Department by rule.
16    (d) The Department shall adopt rules setting forth the
17required form and contents of grant applications.
18    (e) (Blank). There is created the Digital Divide
19Elimination Advisory Committee. The advisory committee shall
20consist of 7 members appointed one each by the Governor, the
21President of the Senate, the Senate Minority Leader, the
22Speaker of the House, and the House Minority Leader, and 2
23appointed by the Director of Commerce and Economic
24Opportunity, one of whom shall be a representative of the
25telecommunications industry and one of whom shall represent
26community technology centers. The members of the advisory

 

 

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1committee shall receive no compensation for their services as
2members of the advisory committee but may be reimbursed for
3their actual expenses incurred in serving on the advisory
4committee. The Digital Divide Elimination Advisory Committee
5shall advise the Department in establishing criteria and
6priorities for identifying recipients of grants under this
7Act. The advisory committee shall obtain advice from the
8technology industry regarding current technological standards.
9The advisory committee shall seek any available federal
10funding.
11    (f) (Blank). There is created the Digital Divide
12Elimination Working Group. The Working Group shall consist of
13the Director of Commerce and Economic Opportunity, or his or
14her designee, the Director of Central Management Services, or
15his or her designee, and the Executive Director of the
16Illinois Commerce Commission, or his or her designee. The
17Director of Commerce and Economic Opportunity, or his or her
18designee, shall serve as chair of the Working Group. The
19Working Group shall consult with the members of the Digital
20Divide Elimination Advisory Committee and may consult with
21various groups including, but not limited to,
22telecommunications providers, telecommunications-related
23technology producers and service providers, community
24technology providers, community and consumer organizations,
25businesses and business organizations, and federal government
26agencies.

 

 

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1    (g) Duties of the Digital Divide Elimination Working Group
2include all of the following:
3        (1) Undertaking a thorough review of grant programs
4    available through the federal government, local agencies,
5    telecommunications providers, and business and charitable
6    entities for the purpose of identifying appropriate
7    sources of revenues for the Digital Divide Elimination
8    Fund and attempting to update available grants on a
9    regular basis.
10        (2) Researching and cataloging programs designed to
11    advance digital literacy and computer access that are
12    available through the federal government, local agencies,
13    telecommunications providers, and business and charitable
14    entities and attempting to update available programs on a
15    regular basis.
16        (3) Presenting the information compiled from items (1)
17    and (2) to the Department of Commerce and Economic
18    Opportunity, which shall serve as a single point of
19    contact for applying for funding for the Digital Divide
20    Elimination Fund and for distributing information to the
21    public regarding all programs designed to advance digital
22    literacy and computer access.
23(Source: P.A. 94-734, eff. 4-28-06; 95-740, eff. 1-1-09.)
 
24    Section 35. The Illinois Income Tax Act is amended by
25changing Section 220 as follows:
 

 

 

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1    (35 ILCS 5/220)
2    Sec. 220. Angel investment credit.
3    (a) As used in this Section:
4    "Applicant" means a corporation, partnership, limited
5liability company, or a natural person that makes an
6investment in a qualified new business venture. The term
7"applicant" does not include (i) a corporation, partnership,
8limited liability company, or a natural person who has a
9direct or indirect ownership interest of at least 51% in the
10profits, capital, or value of the qualified new business
11venture receiving the investment or (ii) a related member.
12    "Claimant" means an applicant certified by the Department
13who files a claim for a credit under this Section.
14    "Department" means the Department of Commerce and Economic
15Opportunity.
16    "Investment" means money (or its equivalent) given to a
17qualified new business venture, at a risk of loss, in
18consideration for an equity interest of the qualified new
19business venture. The Department may adopt rules to permit
20certain forms of contingent equity investments to be
21considered eligible for a tax credit under this Section.
22    "Qualified new business venture" means a business that is
23registered with the Department under this Section.
24    "Related member" means a person that, with respect to the
25applicant, is any one of the following:

 

 

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1        (1) An individual, if the individual and the members
2    of the individual's family (as defined in Section 318 of
3    the Internal Revenue Code) own directly, indirectly,
4    beneficially, or constructively, in the aggregate, at
5    least 50% of the value of the outstanding profits,
6    capital, stock, or other ownership interest in the
7    qualified new business venture that is the recipient of
8    the applicant's investment.
9        (2) A partnership, estate, or trust and any partner or
10    beneficiary, if the partnership, estate, or trust and its
11    partners or beneficiaries own directly, indirectly,
12    beneficially, or constructively, in the aggregate, at
13    least 50% of the profits, capital, stock, or other
14    ownership interest in the qualified new business venture
15    that is the recipient of the applicant's investment.
16        (3) A corporation, and any party related to the
17    corporation in a manner that would require an attribution
18    of stock from the corporation under the attribution rules
19    of Section 318 of the Internal Revenue Code, if the
20    applicant and any other related member own, in the
21    aggregate, directly, indirectly, beneficially, or
22    constructively, at least 50% of the value of the
23    outstanding stock of the qualified new business venture
24    that is the recipient of the applicant's investment.
25        (4) A corporation and any party related to that
26    corporation in a manner that would require an attribution

 

 

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1    of stock from the corporation to the party or from the
2    party to the corporation under the attribution rules of
3    Section 318 of the Internal Revenue Code, if the
4    corporation and all such related parties own, in the
5    aggregate, at least 50% of the profits, capital, stock, or
6    other ownership interest in the qualified new business
7    venture that is the recipient of the applicant's
8    investment.
9        (5) A person to or from whom there is attribution of
10    ownership of stock in the qualified new business venture
11    that is the recipient of the applicant's investment in
12    accordance with Section 1563(e) of the Internal Revenue
13    Code, except that for purposes of determining whether a
14    person is a related member under this paragraph, "20%"
15    shall be substituted for "5%" whenever "5%" appears in
16    Section 1563(e) of the Internal Revenue Code.
17    (b) For taxable years beginning after December 31, 2010,
18and ending on or before December 31, 2026, subject to the
19limitations provided in this Section, a claimant may claim, as
20a credit against the tax imposed under subsections (a) and (b)
21of Section 201 of this Act, an amount equal to 25% of the
22claimant's investment made directly in a qualified new
23business venture. In order for an investment in a qualified
24new business venture to be eligible for tax credits, the
25business must have applied for and received certification
26under subsection (e) for the taxable year in which the

 

 

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1investment was made prior to the date on which the investment
2was made. The credit under this Section may not exceed the
3taxpayer's Illinois income tax liability for the taxable year.
4If the amount of the credit exceeds the tax liability for the
5year, the excess may be carried forward and applied to the tax
6liability of the 5 taxable years following the excess credit
7year. The credit shall be applied to the earliest year for
8which there is a tax liability. If there are credits from more
9than one tax year that are available to offset a liability, the
10earlier credit shall be applied first. In the case of a
11partnership or Subchapter S Corporation, the credit is allowed
12to the partners or shareholders in accordance with the
13determination of income and distributive share of income under
14Sections 702 and 704 and Subchapter S of the Internal Revenue
15Code.
16    (c) The minimum amount an applicant must invest in any
17single qualified new business venture in order to be eligible
18for a credit under this Section is $10,000. The maximum amount
19of an applicant's total investment made in any single
20qualified new business venture that may be used as the basis
21for a credit under this Section is $2,000,000.
22    (d) The Department shall implement a program to certify an
23applicant for an angel investment credit. Upon satisfactory
24review, the Department shall issue a tax credit certificate
25stating the amount of the tax credit to which the applicant is
26entitled. The Department shall annually certify that: (i) each

 

 

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1qualified new business venture that receives an angel
2investment after January 1, 2018 under this Section has
3maintained a minimum employment threshold, as defined by rule,
4in the State (and continues to maintain a minimum employment
5threshold in the State for a period of no less than 3 years
6from the issue date of the last tax credit certificate issued
7by the Department with respect to such business pursuant to
8this Section); and (ii) the claimant's investment has been
9made and remains, except in the event of a qualifying
10liquidity event, in the qualified new business venture for no
11less than 3 years.
12    If an investment for which a claimant is allowed a credit
13under subsection (b) is held by the claimant for less than 3
14years, other than as a result of a permitted sale of the
15investment to person who is not a related member, the claimant
16shall pay to the Department of Revenue, in the manner
17prescribed by the Department of Revenue, the aggregate amount
18of the disqualified credits that the claimant received related
19to the subject investment.
20    If the Department determines that a qualified new business
21venture failed to maintain a minimum employment threshold in
22the State through the date which is 3 years from the issue date
23of the last tax credit certificate issued by the Department
24with respect to the subject business pursuant to this Section,
25the claimant or claimants shall pay to the Department of
26Revenue, in the manner prescribed by the Department of

 

 

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1Revenue, the aggregate amount of the disqualified credits that
2claimant or claimants received related to investments in that
3business.
4    (e) The Department shall implement a program to register
5qualified new business ventures for purposes of this Section.
6A business desiring registration under this Section shall be
7required to submit a full and complete application to the
8Department. A submitted application shall be effective only
9for the taxable year in which it is submitted, and a business
10desiring registration under this Section shall be required to
11submit a separate application in and for each taxable year for
12which the business desires registration. Further, if at any
13time prior to the acceptance of an application for
14registration under this Section by the Department one or more
15events occurs which makes the information provided in that
16application materially false or incomplete (in whole or in
17part), the business shall promptly notify the Department of
18the same. Any failure of a business to promptly provide the
19foregoing information to the Department may, at the discretion
20of the Department, result in a revocation of a previously
21approved application for that business, or disqualification of
22the business from future registration under this Section, or
23both. The Department may register the business only if all of
24the following conditions are satisfied:
25        (1) it has its principal place of business in this
26    State;

 

 

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1        (2) at least 51% of the employees employed by the
2    business are employed in this State;
3        (3) the business has the potential for increasing jobs
4    in this State, increasing capital investment in this
5    State, or both, as determined by the Department, and
6    either of the following apply:
7            (A) it is principally engaged in innovation in any
8        of the following: manufacturing; biotechnology;
9        nanotechnology; communications; agricultural
10        sciences; clean energy creation or storage technology;
11        processing or assembling products, including medical
12        devices, pharmaceuticals, computer software, computer
13        hardware, semiconductors, other innovative technology
14        products, or other products that are produced using
15        manufacturing methods that are enabled by applying
16        proprietary technology; or providing services that are
17        enabled by applying proprietary technology; or
18            (B) it is undertaking pre-commercialization
19        activity related to proprietary technology that
20        includes conducting research, developing a new product
21        or business process, or developing a service that is
22        principally reliant on applying proprietary
23        technology;
24        (4) it is not principally engaged in real estate
25    development, insurance, banking, lending, lobbying,
26    political consulting, professional services provided by

 

 

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1    attorneys, accountants, business consultants, physicians,
2    or health care consultants, wholesale or retail trade,
3    leisure, hospitality, transportation, or construction,
4    except construction of power production plants that derive
5    energy from a renewable energy resource, as defined in
6    Section 1 of the Illinois Power Agency Act;
7        (5) at the time it is first certified:
8            (A) it has fewer than 100 employees;
9            (B) it has been in operation in Illinois for not
10        more than 10 consecutive years prior to the year of
11        certification; and
12            (C) it has received not more than $10,000,000 in
13        aggregate investments;
14        (5.1) it agrees to maintain a minimum employment
15    threshold in the State of Illinois prior to the date which
16    is 3 years from the issue date of the last tax credit
17    certificate issued by the Department with respect to that
18    business pursuant to this Section;
19        (6) (blank); and
20        (7) it has received not more than $4,000,000 in
21    investments that qualified for tax credits under this
22    Section.
23    (f) The Department, in consultation with the Department of
24Revenue, shall adopt rules to administer this Section. The
25aggregate amount of the tax credits that may be claimed under
26this Section for investments made in qualified new business

 

 

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1ventures shall be limited at $10,000,000 per calendar year, of
2which $500,000 shall be reserved for investments made in
3qualified new business ventures which are minority-owned
4businesses, women-owned businesses, or businesses owned by a
5person with a disability (as those terms are used and defined
6in the Business Enterprise for Minorities, Women, and Persons
7with Disabilities Act), and an additional $500,000 shall be
8reserved for investments made in qualified new business
9ventures with their principal place of business in counties
10with a population of not more than 250,000. The foregoing
11annual allowable amounts shall be allocated by the Department,
12on a per calendar quarter basis and prior to the commencement
13of each calendar year, in such proportion as determined by the
14Department, provided that: (i) the amount initially allocated
15by the Department for any one calendar quarter shall not
16exceed 35% of the total allowable amount; (ii) any portion of
17the allocated allowable amount remaining unused as of the end
18of any of the first 3 calendar quarters of a given calendar
19year shall be rolled into, and added to, the total allocated
20amount for the next available calendar quarter; and (iii) the
21reservation of tax credits for investments in minority-owned
22businesses, women-owned businesses, businesses owned by a
23person with a disability, and in businesses in counties with a
24population of not more than 250,000 is limited to the first 3
25calendar quarters of a given calendar year, after which they
26may be claimed by investors in any qualified new business

 

 

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1venture.
2    (g) A claimant may not sell or otherwise transfer a credit
3awarded under this Section to another person.
4    (h) On or before March 1 of each year, the Department shall
5report to the Governor and to the General Assembly on the tax
6credit certificates awarded under this Section for the prior
7calendar year.
8        (1) This report must include, for each tax credit
9    certificate awarded:
10            (A) the name of the claimant and the amount of
11        credit awarded or allocated to that claimant;
12            (B) the name and address (including the county) of
13        the qualified new business venture that received the
14        investment giving rise to the credit, the North
15        American Industry Classification System (NAICS) code
16        applicable to that qualified new business venture, and
17        the number of employees of the qualified new business
18        venture; and
19            (C) the date of approval by the Department of each
20        claimant's tax credit certificate.
21        (2) The report must also include:
22            (A) the total number of applicants and the total
23        number of claimants, including the amount of each tax
24        credit certificate awarded to a claimant under this
25        Section in the prior calendar year;
26            (B) the total number of applications from

 

 

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1        businesses seeking registration under this Section,
2        the total number of new qualified business ventures
3        registered by the Department, and the aggregate amount
4        of investment upon which tax credit certificates were
5        issued in the prior calendar year; and
6            (C) the total amount of tax credit certificates
7        sought by applicants, the amount of each tax credit
8        certificate issued to a claimant, the aggregate amount
9        of all tax credit certificates issued in the prior
10        calendar year and the aggregate amount of tax credit
11        certificates issued as authorized under this Section
12        for all calendar years.
13    (i) For each business seeking registration under this
14Section after December 31, 2016, the Department shall require
15the business to include in its application the North American
16Industry Classification System (NAICS) code applicable to the
17business and the number of employees of the business at the
18time of application. Each business registered by the
19Department as a qualified new business venture that receives
20an investment giving rise to the issuance of a tax credit
21certificate pursuant to this Section shall, for each of the 3
22years following the issue date of the last tax credit
23certificate issued by the Department with respect to such
24business pursuant to this Section, report to the Department
25the following:
26        (1) the number of employees and the location at which

 

 

HB5185 Engrossed- 31 -LRB102 24773 RJF 34015 b

1    those employees are employed, both as of the end of each
2    year;
3        (2) the amount of additional new capital investment
4    raised as of the end of each year, if any; and
5        (3) the terms of any liquidity event occurring during
6    such year; for the purposes of this Section, a "liquidity
7    event" means any event that would be considered an exit
8    for an illiquid investment, including any event that
9    allows the equity holders of the business (or any material
10    portion thereof) to cash out some or all of their
11    respective equity interests.
12(Source: P.A. 101-81, eff. 7-12-19; 102-16, eff. 6-17-21.)
 
13    Section 40. The Film Production Services Tax Credit Act of
142008 is amended by changing Section 45 as follows:
 
15    (35 ILCS 16/45)
16    Sec. 45. Evaluation of tax credit program; reports to the
17General Assembly.
18    (a) The Department shall evaluate the tax credit program.
19The evaluation must include an assessment of the effectiveness
20of the program in creating and retaining new jobs in Illinois
21and of the revenue impact of the program, and may include a
22review of the practices and experiences of other states or
23nations with similar programs. Upon completion of this
24evaluation, the Department shall determine the overall success

 

 

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1of the program, and may make a recommendation to extend,
2modify, or not extend the program based on this evaluation.
3    (b) At the end of each fiscal quarter, the Department must
4submit to the General Assembly a report that includes, without
5limitation, the following information:
6        (1) the economic impact of the tax credit program,
7    including the number of jobs created and retained,
8    including whether the job positions are above-the-line,
9    below-the-line, or extras entry level, management,
10    talent-related, vendor-related, or production-related;
11        (2) the amount of film production spending brought to
12    Illinois, including the amount of spending and type of
13    Illinois vendors hired in connection with an accredited
14    production; and
15        (3) an overall picture of whether the human
16    infrastructure of the motion picture industry in Illinois
17    reflects the geographical, racial and ethnic, gender, and
18    income-level diversity of the State of Illinois.
19    (c) At the end of each fiscal year, the Department must
20submit to the General Assembly a report that includes the
21following information:
22        (1) an identification of each vendor that provided
23    goods or services that were included in an accredited
24    production's Illinois production spending, provided that
25    the accredited production's Illinois production spending
26    attributable to that vendor exceeds, in the aggregate,

 

 

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1    $10,000 or 10% of the accredited production's Illinois
2    production spending, whichever is less;
3        (2) the amount paid to each identified vendor by the
4    accredited production;
5        (3) for each identified vendor, a statement as to
6    whether the vendor is a minority-owned business or a
7    women-owned business, as defined under Section 2 of the
8    Business Enterprise for Minorities, Women, and Persons
9    with Disabilities Act, based on the best efforts of an
10    accredited production; and
11        (4) a description of any steps taken by the Department
12    to encourage accredited productions to use vendors who are
13    a minority-owned business or a women-owned business.
14(Source: P.A. 100-391, eff. 8-25-17; 100-603, eff. 7-13-18;
15101-81, eff. 7-12-19.)
 
16    Section 45. The Southwestern Illinois Metropolitan and
17Regional Planning Act is amended by changing Section 35 as
18follows:
 
19    (70 ILCS 1710/35)  (from Ch. 85, par. 1185)
20    Sec. 35. At the close of each fiscal year, the Commission
21shall prepare a complete report of its receipts and
22expenditures during the fiscal year. A copy of this report
23shall be filed with the Governor and with the treasurer of each
24county included in the Metropolitan and Regional Counties

 

 

HB5185 Engrossed- 34 -LRB102 24773 RJF 34015 b

1Area. In addition, on or before December 31 of each even
2numbered year, the Commission shall prepare jointly with the
3Department of Commerce and Economic Opportunity, a report of
4its activities during the biennium indicating how its funds
5were expended, indicating the amount of the appropriation
6requested for the next biennium and explaining how the
7appropriation will be utilized to carry out its
8responsibilities. A copy of this report shall be filed with
9the Governor, the Senate and the House of Representatives.
10(Source: P.A. 94-793, eff. 5-19-06.)
 
11    Section 50. The Illinois Groundwater Protection Act is
12amended by changing Section 4 as follows:
 
13    (415 ILCS 55/4)  (from Ch. 111 1/2, par. 7454)
14    Sec. 4. (a) There shall be established within State
15government an interagency committee which shall be known as
16the Interagency Coordinating Committee on Groundwater. The
17Committee shall be composed of the Director, or his designee,
18of the following agencies:
19        (1) The Illinois Environmental Protection Agency, who
20    shall chair the Committee.
21        (2) The Illinois Department of Natural Resources.
22        (3) The Illinois Department of Public Health.
23        (4) The Office of Mines and Minerals within the
24    Department of Natural Resources.

 

 

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1        (5) The Office of the State Fire Marshal.
2        (6) The Division of Water Resources of the Department
3    of Natural Resources.
4        (7) The Illinois Department of Agriculture.
5        (8) The Illinois Emergency Management Agency.
6        (9) The Illinois Department of Nuclear Safety.
7        (10) The Illinois Department of Commerce and Economic
8    Opportunity.
9    (b) The Committee shall meet not less than twice each
10calendar year and shall:
11        (1) Review and coordinate the State's policy on
12    groundwater protection.
13        (2) Review and evaluate State laws, regulations and
14    procedures that relate to groundwater protection.
15        (3) Review and evaluate the status of the State's
16    efforts to improve the quality of the groundwater and of
17    the State enforcement efforts for protection of the
18    groundwater and make recommendations on improving the
19    State efforts to protect the groundwater.
20        (4) Recommend procedures for better coordination among
21    State groundwater programs and with local programs related
22    to groundwater protection.
23        (5) Review and recommend procedures to coordinate the
24    State's response to specific incidents of groundwater
25    pollution and coordinate dissemination of information
26    between agencies responsible for the State's response.

 

 

HB5185 Engrossed- 36 -LRB102 24773 RJF 34015 b

1        (6) Make recommendations for and prioritize the
2    State's groundwater research needs.
3        (7) Review, coordinate and evaluate groundwater data
4    collection and analysis.
5        (8) Beginning on January 1, 1990, report biennially to
6    the Governor and the General Assembly on groundwater
7    quality, quantity, and the State's enforcement efforts.
8    (c) The Chairman of the Committee shall propose a
9groundwater protection regulatory agenda for consideration by
10the Committee and the Council. The principal purpose of the
11agenda shall be to systematically consider the groundwater
12protection aspects of relevant federal and State regulatory
13programs and to identify any areas where improvements may be
14warranted. To the extent feasible, the agenda may also serve
15to facilitate a more uniform and coordinated approach toward
16protection of groundwaters in Illinois. Upon adoption of the
17final agenda by the Committee, the Chairman of the Committee
18shall assign a lead agency and any support agencies to prepare
19a regulatory assessment report for each item on the agenda.
20Each regulatory assessment report shall specify the nature of
21the groundwater protection provisions being implemented and
22shall evaluate the results achieved therefrom. Special
23attention shall be given to any preventive measures being
24utilized for protection of groundwaters. The reports shall be
25completed in a timely manner. After review and consideration
26by the Committee, the reports shall become the basis for

 

 

HB5185 Engrossed- 37 -LRB102 24773 RJF 34015 b

1recommending further legislative or regulatory action.
2    (d) No later than January 1, 1992, the Interagency
3Coordinating Committee on Groundwater shall provide a
4comprehensive status report to the Governor and the General
5Assembly concerning implementation of this Act.
6    (e) The Committee shall consider findings and
7recommendations that are provided by the Council, and respond
8in writing regarding such matters. The Chairman of the
9Committee shall designate a liaison person to serve as a
10facilitator of communications with the Council.
11(Source: P.A. 94-793, eff. 5-19-06.)
 
12    Section 99. Effective date. This Act takes effect upon
13becoming law.