093_HB0621sam001











                                     LRB093 05844 BDD 20044 a

 1                     AMENDMENT TO HOUSE BILL 621

 2        AMENDMENT NO.     .  Amend House Bill  621  by  replacing
 3    everything after the enacting clause with the following:

 4        "Section  5.  The  Department  of  Commerce  and Economic
 5    Opportunity Law of the Civil Administrative Code of  Illinois
 6    is amended by changing Section 605-332 as follows:

 7        (20 ILCS 605/605-332)
 8        Sec.  605-332.  Financial assistance to energy generation
 9    facilities.
10        (a)  As used in this Section:
11        "New    electric    generating    facility"    means    a
12    newly-constructed  electric  generation  plant  or  a   newly
13    constructed  generation  capacity  expansion  at  an existing
14    facility, including the  transmission  lines  and  associated
15    equipment that transfers electricity from points of supply to
16    points  of  delivery,  and  for which foundation construction
17    commenced not sooner than July 1, 2001, which is designed  to
18    provide   baseload   electric   generation   operating  on  a
19    continuous basis throughout the year; and:
20             (1)  which  has  an   aggregate   rated   generating
21        capacity  of  at least 400 megawatts for all new units at
22        one site, uses coal or gases derived  from  coal  as  its
 
                            -2-      LRB093 05844 BDD 20044 a
 1        primary  fuel  source,  and  supports  the creation of at
 2        least 150 new Illinois coal mining jobs;
 3             (2)  uses   coal    gasification    or    integrated
 4        gasification-combined    cycle    units   that   generate
 5        electricity or chemicals, or both, and that supports  the
 6        creation of Illinois coal-mining jobs;
 7             (3)  is  a public utility that is owned and operated
 8        by any political subdivision or municipal corporation  or
 9        that  is  owned  by such an entity and is operated by any
10        lessee or any operating agent of  that  entity  and  that
11        supports the creation of Illinois coal-mining jobs;
12             (4)  is  owned  in  whole  or in part by an electric
13        cooperative, as defined in Section 3.4  of  the  Electric
14        Supplier  Act,  and  supports  the  creation  of Illinois
15        coal-mining jobs; or
16             (5)  is a  State-owned  facility  and  supports  the
17        creation of Illinois coal-mining jobs.
18        "Eligible  business"  means  an  entity  that proposes to
19    construct a new electric generating  facility  and  that  has
20    applied  to  the  Department  to receive financial assistance
21    pursuant to this Section. With respect to use and  occupation
22    taxes, wherever there is a reference to taxes, that reference
23    means  only those taxes paid on Illinois-mined coal used in a
24    new electric generating facility.
25        "Department" means the Illinois  Department  of  Commerce
26    and Economic Opportunity Community Affairs.
27        (b)  The  Department  is  authorized to provide financial
28    assistance to eligible businesses for new electric generating
29    facilities from funds appropriated by the General Assembly as
30    further provided in this Section.
31        An eligible business seeking qualification for  financial
32    assistance  for  a  new  electric  generating  facility,  for
33    purposes  of this Section only, shall apply to the Department
34    in the manner specified by the  Department.  Any  projections
 
                            -3-      LRB093 05844 BDD 20044 a
 1    provided  by  an eligible business as part of the application
 2    shall be independently verified in a manner as set  forth  by
 3    the  Department.  An  application  shall  include, but not be
 4    limited to:
 5             (1)  the projected or actual completion date of  the
 6        new  electric  generating  facility  for  which financial
 7        assistance is sought;
 8             (2)  copies of documentation  deemed  acceptable  by
 9        the  Department  establishing  either (i) the total State
10        occupation and use taxes paid on Illinois-mined coal used
11        at the new electric generating facility for a minimum  of
12        4  preceding  calendar  quarters  or  (ii)  the projected
13        amount  of  State  occupation  and  use  taxes  paid   on
14        Illinois-mined  coal  used at the new electric generating
15        facility in 4 calendar year quarters after completion  of
16        the  new  electric  generating  facility.  Bond  proceeds
17        subject  to  this  Section  shall  not be allocated to an
18        eligible  business  until  the  eligible   business   has
19        demonstrated the revenue stream sufficient to service the
20        debt on the bonds; and
21             (3)  the  actual  or  projected  amount  of  capital
22        investment  by  the eligible business in the new electric
23        generating facility.
24        The Department shall  determine  the  maximum  amount  of
25    financial  assistance  for  eligible businesses in accordance
26    with  this  paragraph.   The  Department  shall  not  provide
27    financial assistance from general obligation  bond  funds  to
28    any   eligible   business   unless   it  receives  a  written
29    certification from the Director of the Bureau of  the  Budget
30    (now  Governor's Office of Management and Budget) that 80% of
31    the State occupation and use tax receipts for  a  minimum  of
32    the preceding 4 calendar quarters for all eligible businesses
33    or  as  included  in  projections on approved applications by
34    eligible businesses equal  or  exceed  110%  of  the  maximum
 
                            -4-      LRB093 05844 BDD 20044 a
 1    annual   debt   service  required  with  respect  to  general
 2    obligation bonds issued for that purpose.  The Department may
 3    provide financial assistance not  to  exceed  the  amount  of
 4    State general obligation debt calculated as above, the amount
 5    of  actual  or  projected  capital  investment  in the energy
 6    generation facility,  or  $100,000,000,  whichever  is  less.
 7    Financial assistance received pursuant to this Section may be
 8    used   for   capital   facilities  consisting  of  buildings,
 9    structures, durable equipment, and land at the  new  electric
10    generating   facility.  Subject  to  the  provisions  of  the
11    agreement covering the financial assistance, a portion of the
12    financial assistance may be required  to  be  repaid  to  the
13    State  if  certain conditions for the governmental purpose of
14    the assistance were not met.
15        An eligible business shall file a monthly report with the
16    Illinois  Department  of  Revenue  stating  the   amount   of
17    Illinois-mined  coal  purchased during the previous month for
18    use in the new electric  generating  facility,  the  purchase
19    price  of  that  coal, the amount of State occupation and use
20    taxes  paid  on  that  purchase  to   the   seller   of   the
21    Illinois-mined  coal,  and  such  other  information  as that
22    Department   may   reasonably   require.    In    sales    of
23    Illinois-mined  coal  between  related  parties, the purchase
24    price of the coal must have been determined in an arms-length
25    transaction.  The report shall be  filed  with  the  Illinois
26    Department of Revenue on or before the 20th day of each month
27    on  a  form  provided by that Department.  However, no report
28    need be filed by an eligible business in a month when it made
29    no reportable purchases of coal in the  previous  month.  The
30    Illinois  Department  of  Revenue  shall provide a summary of
31    such reports to  the  Governor's  Office  of  Management  and
32    Budget Bureau of the Budget.
33        Upon   granting   financial  assistance  to  an  eligible
34    business, the  Department  shall  certify  the  name  of  the
 
                            -5-      LRB093 05844 BDD 20044 a
 1    eligible  business  to  the  Illinois  Department of Revenue.
 2    Beginning with the receipt  of  the  first  report  of  State
 3    occupation  and  use  taxes  paid by an eligible business and
 4    continuing for a 25-year period, the Illinois  Department  of
 5    Revenue  shall  each month pay into the Energy Infrastructure
 6    Fund 80% of the net revenue realized from the  6.25%  general
 7    rate  on  the  selling  price of Illinois-mined coal that was
 8    sold to an eligible business.
 9    (Source: P.A.  92-12,  eff.  7-1-01;  93-167,  eff.  7-10-03;
10    revised 8-23-03.)

11        Section  10.  The Illinois Enterprise Zone Act is amended
12    by changing Section 5.5 as follows:

13        (20 ILCS 655/5.5) (from Ch. 67 1/2, par. 609.1)
14        Sec. 5.5.  High Impact Business.
15        (a)  In order  to  respond  to  unique  opportunities  to
16    assist   in   the   encouragement,  development,  growth  and
17    expansion  of  the  private  sector   through   large   scale
18    investment   and  development  projects,  the  Department  is
19    authorized  to  receive  and  approve  applications  for  the
20    designation of "High Impact Businesses" in  Illinois  subject
21    to the following conditions:
22             (1)  such  applications may be submitted at any time
23        during the year;
24             (2)  such business is not located, at  the  time  of
25        designation, in an enterprise zone designated pursuant to
26        this Act;
27             (3) (A)  the  business  intends  to  make  a minimum
28             investment of $12,000,000 which will  be  placed  in
29             service  in qualified property and intends to create
30             500  full-time  equivalent  jobs  at  a   designated
31             location  in  Illinois  or intends to make a minimum
32             investment of $30,000,000 which will  be  placed  in
 
                            -6-      LRB093 05844 BDD 20044 a
 1             service  in qualified property and intends to retain
 2             1,500 full-time jobs at  a  designated  location  in
 3             Illinois.  The business must certify in writing that
 4             the investments would not be placed  in  service  in
 5             qualified  property  and  the  job  creation  or job
 6             retention would not occur without  the  tax  credits
 7             and  exemptions  set forth in subsection (b) of this
 8             Section.  The  terms   "placed   in   service"   and
 9             "qualified  property"  have  the  same  meanings  as
10             described  in  subsection  (h) of Section 201 of the
11             Illinois Income Tax Act; or
12                  (B)  the business intends to  establish  a  new
13             electric   generating   facility   at  a  designated
14             location  in  Illinois.   "New  electric  generating
15             facility", for purposes of  this  Section,  means  a
16             newly-constructed  electric  generation  plant  or a
17             newly-constructed generation capacity  expansion  at
18             an existing electric generation plant, including the
19             transmission  lines  and  associated  equipment that
20             transfers  electricity  from  points  of  supply  to
21             points  of  delivery,  and  for   which   such   new
22             foundation  construction  commenced  not sooner than
23             July 1, 2001.  Such facility shall  be  designed  to
24             provide   baseload  electric  generation  and  shall
25             operate on a continuous basis throughout  the  year;
26             and   shall   have  an  aggregate  rated  generating
27             capacity of at least 1,000  megawatts  for  all  new
28             units  at  one  site  if  it uses natural gas as its
29             primary fuel  and  foundation  construction  of  the
30             facility  is  commenced  on  or  before December 31,
31             2004, or shall have an  aggregate  rated  generating
32             capacity of at least 400 megawatts for all new units
33             at  one  site  if it uses coal or gases derived from
34             coal as its  primary  fuel  and  shall  support  the
 
                            -7-      LRB093 05844 BDD 20044 a
 1             creation  of  at  least 150 new Illinois coal mining
 2             jobs, or shall use coal gasification  or  integrated
 3             gasification-combined   cycle  units  that  generate
 4             electricity or chemicals, or both, and shall support
 5             the creation of Illinois coal-mining jobs, or  shall
 6             be  a  public  utility that is owned and operated by
 7             any political subdivision or  municipal  corporation
 8             or  that  is owned by such an entity and operated by
 9             any lessee or any operating agent of that entity and
10             supports the creation of Illinois coal-mining  jobs,
11             or shall be owned in whole or in part by an electric
12             cooperative,  as  defined  in  Section  3.4  of  the
13             Electric  Supplier  Act, and support the creation of
14             Illinois coal-mining jobs, or shall be a State-owned
15             facility and supports the creation of Illinois  coal
16             mining  jobs.  The  business must certify in writing
17             that the investments necessary to  establish  a  new
18             electric  generating facility would not be placed in
19             service and the  job  creation  in  the  case  of  a
20             coal-fueled  plant  would  not occur without the tax
21             credits and exemptions set forth in subsection (b-5)
22             of this Section.  The term "placed in  service"  has
23             the  same  meaning as described in subsection (h) of
24             Section 201 of the Illinois Income Tax Act; or
25                  (C)  the   business   intends   to    establish
26             production   operations   at   a   new   coal  mine,
27             re-establish production operations at a closed  coal
28             mine,  or expand production at an existing coal mine
29             at a designated location in Illinois not sooner than
30             July  1,  2001;   provided   that   the   production
31             operations   result  in  the  creation  of  150  new
32             Illinois  coal   mining   jobs   as   described   in
33             subdivision  (a)(3)(B)  of this Section, and further
34             provided that the coal extracted from such  mine  is
 
                            -8-      LRB093 05844 BDD 20044 a
 1             utilized   as  the  predominant  source  for  a  new
 2             electric  generating  facility.  The  business  must
 3             certify in writing that the investments necessary to
 4             establish a new, expanded,  or  reopened  coal  mine
 5             would  not be placed in service and the job creation
 6             would  not  occur  without  the  tax   credits   and
 7             exemptions  set  forth  in  subsection (b-5) of this
 8             Section.  The term "placed in service" has the  same
 9             meaning  as  described  in subsection (h) of Section
10             201 of the Illinois Income Tax Act; or
11                  (D)  the  business  intends  to  construct  new
12             transmission   facilities   or   upgrade    existing
13             transmission  facilities  at designated locations in
14             Illinois,  for  which  construction  commenced   not
15             sooner  than July 1, 2001.  For the purposes of this
16             Section,     "transmission     facilities"     means
17             transmission lines with  a  voltage  rating  of  115
18             kilovolts  or above, including associated equipment,
19             that transfer electricity from points of  supply  to
20             points  of  delivery and that transmit a majority of
21             the  electricity  generated  by   a   new   electric
22             generating  facility  designated  as  a  High Impact
23             Business  in  accordance  with  this  Section.   The
24             business  must   certify   in   writing   that   the
25             investments  necessary to construct new transmission
26             facilities   or   upgrade   existing    transmission
27             facilities  would  not  be placed in service without
28             the  tax  credits  and  exemptions  set   forth   in
29             subsection  (b-5) of this Section.  The term "placed
30             in service" has the same  meaning  as  described  in
31             subsection (h) of Section 201 of the Illinois Income
32             Tax Act; and
33             (4)  no  later  than 90 days after an application is
34        submitted, the Department shall notify the  applicant  of
 
                            -9-      LRB093 05844 BDD 20044 a
 1        the  Department's  determination  of the qualification of
 2        the proposed High Impact Business under this Section.
 3        (b)  Businesses  designated  as  High  Impact  Businesses
 4    pursuant to  subdivision  (a)(3)(A)  of  this  Section  shall
 5    qualify  for  the  credits  and  exemptions  described in the
 6    following Acts: Section 9-222 and  Section  9-222.1A  of  the
 7    Public  Utilities  Act,  subsection (h) of Section 201 of the
 8    Illinois Income Tax Act,; and, Section 1d of  the  Retailers'
 9    Occupation   Tax   Act;,  provided  that  these  credits  and
10    exemptions described in these Acts shall  not  be  authorized
11    until  the  minimum  investments  set  forth  in  subdivision
12    (a)(3)(A)  of  this  Section  have  been placed in service in
13    qualified properties and,  in  the  case  of  the  exemptions
14    described  in  the Public Utilities Act and Section 1d of the
15    Retailers'  Occupation  Tax  Act,   the   minimum   full-time
16    equivalent  jobs  or  full-time jobs set forth in subdivision
17    (a)(3)(A) of this Section  have  been  created  or  retained.
18    Businesses  designated  as  High Impact Businesses under this
19    Section shall also qualify for  the  exemption  described  in
20    Section  5l  of the Retailers' Occupation Tax Act. The credit
21    provided in subsection (h) of Section  201  of  the  Illinois
22    Income   Tax  Act  shall  be  applicable  to  investments  in
23    qualified property as set forth in subdivision  (a)(3)(A)  of
24    this Section.
25        (b-5)  Businesses  designated  as  High Impact Businesses
26    pursuant to subdivisions (a)(3)(B), (a)(3)(C), and  (a)(3)(D)
27    of  this Section shall qualify for the credits and exemptions
28    described  in  the  following  Acts:   Section  51   of   the
29    Retailers'  Occupation  Tax  Act,  Section  9-222 and Section
30    9-222.1A of the Public Utilities Act, and subsection  (h)  of
31    Section  201  of  the  Illinois  Income Tax Act; however, the
32    credits and exemptions authorized  under  Section  9-222  and
33    Section  9-222.1A of the Public Utilities Act, and subsection
34    (h) of Section 201 of the Illinois Income Tax Act  shall  not
 
                            -10-     LRB093 05844 BDD 20044 a
 1    be authorized until the new electric generating facility, the
 2    new  transmission facility, or the new, expanded, or reopened
 3    coal  mine  is  operational,  except  that  a  new   electric
 4    generating  facility whose primary fuel source is natural gas
 5    is eligible only for the exemption under Section  5l  of  the
 6    Retailers' Occupation Tax Act.
 7        (c)  High   Impact   Businesses   located   in  federally
 8    designated foreign trade zones or sub-zones are also eligible
 9    for  additional  credits,  exemptions   and   deductions   as
10    described  in  the  following Acts: Section 9-221 and Section
11    9-222.1 of the Public Utilities Act; and  subsection  (g)  of
12    Section 201, and Section 203 of the Illinois Income Tax Act.
13        (d)  Existing   Illinois   businesses   which  apply  for
14    designation as  a  High  Impact  Business  must  provide  the
15    Department   with   the  prospective  plan  for  which  1,500
16    full-time jobs would be eliminated  in  the  event  that  the
17    business is not designated.
18        (e)  New  proposed facilities which apply for designation
19    as High Impact Business  must  provide  the  Department  with
20    proof  of  alternative non-Illinois sites which would receive
21    the proposed investment and job creation in  the  event  that
22    the business is not designated as a High Impact Business.
23        (f)  In  the  event  that a business is designated a High
24    Impact Business and it is later determined  after  reasonable
25    notice and an opportunity for a hearing as provided under the
26    Illinois  Administrative  Procedure  Act,  that  the business
27    would have  placed  in  service  in  qualified  property  the
28    investments  and  created or retained the requisite number of
29    jobs  without  the  benefits  of  the  High  Impact  Business
30    designation, the Department shall be required to  immediately
31    revoke  the  designation  and  notify  the  Director  of  the
32    Department  of Revenue who shall begin proceedings to recover
33    all wrongfully  exempted  State  taxes  with  interest.   The
34    business  shall  also  be  ineligible  for  all  State funded
 
                            -11-     LRB093 05844 BDD 20044 a
 1    Department programs for a period of 10 years.
 2        (g)  The Department shall revoke a High  Impact  Business
 3    designation  if  the  participating  business fails to comply
 4    with the terms and conditions of the designation.
 5        (h)  Prior to  designating  a  business,  the  Department
 6    shall  provide  the  members  of  the  General  Assembly  and
 7    Illinois Economic and Fiscal Commission with a report setting
 8    forth  the  terms  and  conditions  of  the  designation  and
 9    guarantees  that  have  been  received  by  the Department in
10    relation to the proposed business being designated.
11    (Source:  P.A.  91-914,  eff.  7-7-00;  92-12,  eff.  7-1-01;
12    revised 3-7-02.)".