Illinois General Assembly - Full Text of HB5440
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Full Text of HB5440  97th General Assembly




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1    AN ACT concerning revenue.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Business Location Efficiency Incentive Act
5is amended by adding Section 21 as follows:
6    (35 ILCS 11/21 new)
7    Sec. 21. Continuation of Act; validation.
8    (a) The General Assembly finds and declares that:
9        (1) Public Act 97-636, which takes effect on June 1,
10    2012, changed the repeal date set for the Business Location
11    Efficiency Incentive Act from December 31, 2011 to December
12    31, 2016.
13        (2) The Statute on Statutes sets forth general rules on
14    the repeal of statutes and the construction of multiple
15    amendments, but Section 1 of that Act also states that
16    these rules will not be observed when the result would be
17    "inconsistent with the manifest intent of the General
18    Assembly or repugnant to the context of the statute".
19        (3) This amendatory Act of the 97th General Assembly
20    manifests the intention of the General Assembly to extend
21    the repeal of the Business Location Efficiency Incentive
22    Act and have the Business Location Efficiency Incentive Act
23    continue in effect until December 31, 2016.



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1        (4) The Business Location Efficiency Incentive Act was
2    originally enacted to protect, promote, and preserve the
3    general welfare. Any construction of this Act that results
4    in the repeal of this Act on December 31, 2011 would be
5    inconsistent with the manifest intent of the General
6    Assembly and repugnant to the context of the Business
7    Location Efficiency Incentive Act.
8    (b) It is hereby declared to have been the intent of the
9General Assembly that the Business Location Efficiency
10Incentive Act not be subject to repeal on December 31, 2011.
11    (c) The Business Location Efficiency Incentive Act shall be
12deemed to have been in continuous effect since January 1, 2007
13(the effective date of Public Act 94-966), and it shall
14continue to be in effect henceforward until it is otherwise
15lawfully repealed. All previously enacted amendments to the Act
16taking effect on or after December 31, 2011, are hereby
18    (d) All actions taken in reliance on or pursuant to the
19Business Location Efficiency Incentive Act by the Department of
20Revenue, the Department of Commerce and Economic Opportunity,
21or any other person or entity are hereby validated.
22    (e) In order to ensure the continuing effectiveness of the
23Business Location Efficiency Incentive Act, it is set forth in
24full and re-enacted by this amendatory Act of the 97th General
25Assembly. This re-enactment is intended as a continuation of
26the Act. It is not intended to supersede any amendment to the



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1Act that is enacted by the 97th General Assembly.
2    (f) The Business Location Efficiency Incentive Act applies
3to all claims, civil actions, and proceedings pending on or
4filed on or before the effective date of this Act.
5    Section 10. The Business Location Efficiency Incentive Act
6is re-enacted as follows:
7    (35 ILCS 11/Act title)
8An Act concerning business incentives.
9    (35 ILCS 11/1)
10    (Section scheduled to be repealed on December 31, 2011)
11    Sec. 1. Short title. This Act may be cited as the Business
12Location Efficiency Incentive Act.
13(Source: P.A. 94-966, eff. 1-1-07.)
14    (35 ILCS 11/5)
15    (Section scheduled to be repealed on December 31, 2011)
16    Sec. 5. Definitions. In this Act:
17    "Location efficient" means a project that maximizes the use
18of existing investments in infrastructure, avoids or minimizes
19additional government expenditures for new infrastructure, and
20has nearby housing affordable to the permanent workforce of the
21project or has accessible and affordable mass transit or its
22equivalent or some combination of both.



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1    "Location efficiency report" means a report that is
2prepared by an applicant for increased State economic
3development assistance under Section 10 and follows this Act
4and any related Department guidelines, and that describes the
5existence of (i) affordable workforce housing or (ii)
6accessible and affordable mass transit or its equivalent.
7    "Employee housing or transportation remediation plan"
8means a plan to increase affordable housing or transportation
9options, or both, for employees earning up to the median annual
10salary of the workforce at the project. The plan may include,
11but is not limited to, an employer-financed or assisted housing
12program that can be supplemented by State or federal grants,
13shuttle services between the place of employment and existing
14transit stops or other reasonably accessible places,
15facilitation of employee carpooling, or similar services.
16     "Accessible and affordable mass transit" means access to
17transit stops with regular and frequent service within one mile
18from the project site and pedestrian access to transit stops.
19    "Affordable workforce housing" means owner-occupied or
20rental housing that costs, based on current census data for the
21municipality where the project is located or any municipality
22within 3 miles of the municipality where the project is
23located, no more than 35% of the median salary at the project
24site, exclusive of the highest 10% of the site's salaries. If
25the project is located in an unincorporated area, "affordable
26workforce housing" means no more than 35% of the median salary



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1at the project site, excluding the highest 10% of the site's
2salaries, based on the median cost of rental or of
3owner-occupied housing in the county where the unincorporated
4area is located.
5    "Department" means the Department of Commerce and Economic
6Opportunity (DCEO) or its successor agency.
7    "Applicant" means a company or its representative that
8negotiates or applies for economic development assistance from
10    "Economic development assistance" means State tax credits
11and tax exemptions given as an incentive to an eligible company
12after certification by DCEO under the Economic Development for
13a Growing Economy Tax Credit Act (EDGE).
14    "Existence of infrastructure" means the existence within
151,500 feet of the proposed site of roads, sewers, sidewalks,
16and other utilities and a description of the investments or
17improvements, if any, that an applicant expects State or local
18government to make to that infrastructure.
19(Source: P.A. 94-966, eff. 1-1-07.)
20    (35 ILCS 11/10)
21    (Section scheduled to be repealed on December 31, 2011)
22    Sec. 10. Economic development assistance awards.
23    (a) An applicant that also wants to be considered for
24increased economic development assistance under this Act shall
25submit a location efficiency report.



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1    (b) DCEO may give an applicant an increased tax credit or
2extension if the applicant's location efficiency report
3demonstrates that the applicant is seeking assistance for a
4project to be located in an area that satisfies this Act's
5standards for affordable workforce housing or affordable and
6accessible mass transit. If the Department determines from the
7location efficiency report that the applicant is seeking
8assistance in an area that is not location efficient, the
9Department may award an increase in State economic development
10assistance if an applicant (i) submits, and the Department
11accepts, an applicant's employee housing and transportation
12remediation plan or (ii) creates jobs in a labor surplus area
13as defined by the Department of Employment Security at the end
14of each calendar year.
15    (c) Applicants locating or expanding at location-efficient
16sites, with approved location efficiency plans, or creating
17jobs in labor surplus areas may receive (i) up to 10% more than
18the maximum allowable tax credits for which they are eligible
19under the Economic Development for a Growing Economy Tax Credit
20Act (EDGE), but not to equal or exceed 100% of the applicant's
21tax liability, or (ii) such other adjustment of those tax
22credits, including but not limited to extensions, as the
23Department deems appropriate.
24    (d) The Department may provide technical assistance to
25employers requesting assistance in developing an appropriate
26employee housing or transportation plan.



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1(Source: P.A. 94-966, eff. 1-1-07.)
2    (35 ILCS 11/15)
3    (Section scheduled to be repealed on December 31, 2011)
4    Sec. 15. Summaries; progress reports.
5    (a) DCEO shall include summaries of the initial employee
6housing or transportation plans for each assisted project in
7the annual compilation and publication of project progress
8reports required under subsection (d) of Section 20 of the
9Corporate Accountability for Tax Expenditures Act. Companies
10that fail to do so or that make inadequate progress shall have
11their increased tax credit or extension eliminated. Applicants
12and submitted data are subject to all disclosure, reporting,
13and recapture provisions set forth in Public Act 93-552.
14    (b) By June 1, 2008 and by June 1 of each year thereafter
15through 2011, the Department shall include, when appropriate,
16data on the outcomes or status of approved employee housing or
17transportation plans in the project progress reports required
18under the Corporate Accountability for Tax Expenditure Act.
19(Source: P.A. 94-966, eff. 1-1-07.)
20    (35 ILCS 11/20)
21    (Section scheduled to be repealed on December 31, 2011)
22    Sec. 20. Duration of incentives; report to General
24    (a) Any multi-year incentive awarded under this Act shall



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1continue for the time period called for in the agreement with
2the Department and shall not be altered by the repeal of this
4    (b) By January 1, 2011, the Department shall submit to the
5Speaker of the House of Representatives and the President of
6the Senate, for assignment to the appropriate committees, a
7report on the incentives awarded under this Act and the
8Department's activities, findings, and recommendations with
9respect to this Act and its extension, amendment, or repeal.
10The report, when acted upon by those committees, shall be
11distributed to each member of the General Assembly.
12(Source: P.A. 94-966, eff. 1-1-07.)
13    (35 ILCS 11/25)
14    (Section scheduled to be repealed on December 31, 2011)
15    Sec. 25. Repeal. This Act is repealed on December 31, 2016.
16(Source: P.A. 97-636, eff. 6-1-12.)
17    (35 ILCS 11/99)
18    (Section scheduled to be repealed on December 31, 2011)
19    Sec. 99. Effective date. This Act takes effect January 1,
21(Source: P.A. 94-966, eff. 1-1-07.)
22    Section 99. Effective date. This Act takes effect upon
23becoming law.