Full Text of SB0179 97th General Assembly
SB0179eng 97TH GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning government.
| 2 | | Be it enacted by the People of the State of Illinois, | 3 | | represented in the General Assembly:
| 4 | | Section 5. The River Edge Redevelopment Zone Act is amended | 5 | | 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. | 17 | | "Department" means the Department of Commerce and | 18 | | Economic Opportunity. | 19 | | "Director" means the Director of Commerce and Economic | 20 | | Opportunity. | 21 | | "Eligible developer" means an individual, partnership, | 22 | | corporation, or other entity that develops within a river | 23 | | edge redevelopment zone that is located within a |
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| 1 | | municipality designated as a financially distressed city. | 2 | | "Eligible employer" means an individual, partnership, | 3 | | corporation, or other entity that employs full-time | 4 | | employees within a river edge redevelopment zone that is | 5 | | located within a municipality designated as a financially | 6 | | distressed city. | 7 | | "Full-time employee" means an individual who is | 8 | | employed for consideration for at least 35 hours each week | 9 | | or who renders any other standard of service generally | 10 | | accepted by industry custom or practice as full-time | 11 | | employment. An individual for whom a W-2 is issued by a | 12 | | Professional Employer Organization (PEO) is a full-time | 13 | | employee if employed in the service of the eligible | 14 | | employer for consideration for at least 35 hours each week | 15 | | or who renders any other standard of service generally | 16 | | accepted by industry custom or practice as full-time | 17 | | employment. | 18 | | "Incremental income tax" means the total amount | 19 | | withheld from the compensation of new employees under | 20 | | Article 7 of the Illinois Income Tax Act arising from | 21 | | employment by an eligible employer. | 22 | | "Infrastructure" means roads, access roads, streets, | 23 | | bridges, sidewalks, water and sewer line extensions, water | 24 | | distribution and purification facilities, waste disposal | 25 | | systems, sewage treatment facilities, stormwater drainage | 26 | | and retention facilities, gas and electric utility line |
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| 1 | | extensions, or other improvements that are essential to the | 2 | | development of the project that is the subject of an | 3 | | agreement. | 4 | | "New employee" means a full-time employee first | 5 | | employed by an eligible employer in the project that is the | 6 | | subject of an agreement between the Department and an | 7 | | eligible developer and who is hired after the eligible | 8 | | developer enters into the agreement, but does not include: | 9 | | (1) an employee of the eligible employer who | 10 | | performs a job that (i) existed for at least 6 months | 11 | | before the employee was hired and (ii) was previously | 12 | | performed by another employee; | 13 | | (2) an employee of the eligible employer who was | 14 | | previously employed in Illinois by a related member of | 15 | | the eligible employer and whose employment was shifted | 16 | | to the eligible employer after the eligible employer | 17 | | entered into the agreement; or | 18 | | (3) a child, grandchild, parent, or spouse, other | 19 | | than a spouse who is legally separated from the | 20 | | individual, of any individual who has a direct or an | 21 | | indirect ownership interest of at least 5% in the | 22 | | profits, capital, or value of the eligible employer. | 23 | | Notwithstanding item (2) of this definition, an | 24 | | employee may be considered a new employee under the | 25 | | agreement if the employee performs a job that was | 26 | | previously performed by an employee who was: |
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| 1 | | (A) treated under the agreement as a new employee; | 2 | | and | 3 | | (B) promoted by the eligible employer to another | 4 | | job. | 5 | | "Professional Employer Organization" (PEO) means an | 6 | | employee leasing company, as defined in Section | 7 | | 206.1(A)(2) of the Illinois Unemployment Insurance Act. | 8 | | "Related member" means a person or entity that, with | 9 | | respect to the eligible employer during any portion of the | 10 | | taxable year, is any one of the following: | 11 | | (1) an individual stockholder, if the stockholder | 12 | | and the members of the stockholder's family (as defined | 13 | | in Section 318 of the Internal Revenue Code) own | 14 | | directly, indirectly, beneficially, or constructively, | 15 | | in the aggregate, at least 50% of the value of the | 16 | | eligible employer's outstanding stock; | 17 | | (2) a partnership, estate, or trust and any partner | 18 | | or beneficiary, if the partnership, estate, or trust, | 19 | | and its partners or beneficiaries own directly, | 20 | | indirectly, or beneficially, or constructively, in the | 21 | | aggregate, at least 50% of the profits, capital, stock, | 22 | | or value of the eligible employer; | 23 | | (3) a corporation, and any party related to the | 24 | | corporation in a manner that would require an | 25 | | attribution of stock from the corporation to the party | 26 | | or from the party to the corporation under the |
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| 1 | | attribution rules of Section 318 of the Internal | 2 | | Revenue Code, if the taxpayer owns directly, | 3 | | indirectly, beneficially, or constructively at least | 4 | | 50% of the value of the corporation's outstanding | 5 | | stock; | 6 | | (4) a corporation and any party related to that | 7 | | corporation in a manner that would require an | 8 | | attribution of stock from the corporation to the party | 9 | | or from the party to the corporation under the | 10 | | attribution rules of Section 318 of the Internal | 11 | | Revenue Code, if the corporation and all such related | 12 | | parties own in the aggregate at least 50% of the | 13 | | profits, capital, stock, or value of the eligible | 14 | | employer; or | 15 | | (5) a person to or from whom there is attribution | 16 | | of stock ownership in accordance with Section 1563(e) | 17 | | of the Internal Revenue Code, except, for purposes of | 18 | | determining whether a person is a related member under | 19 | | this definition, 20% shall be substituted for 5% | 20 | | wherever 5% appears in Section 1563(e) of the Internal | 21 | | Revenue Code. | 22 | | (c) The Riverfront Development Fund. The Riverfront | 23 | | Development Fund is created as a special fund in the State | 24 | | treasury. As soon as possible after the first day of each | 25 | | month, upon certification of the Department of Revenue, the | 26 | | Comptroller shall order transferred and the Treasurer shall |
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| 1 | | transfer from the General Revenue Fund to the Riverfront | 2 | | Development Fund an amount equal to the incremental income tax | 3 | | for the previous month attributable to a project that is the | 4 | | subject of an agreement. | 5 | | (d) Grants from the Riverfront Development Fund. In State | 6 | | fiscal years 2012 through 2021, all moneys in the Riverfront | 7 | | Development Fund, held solely for the benefit of eligible | 8 | | developers, shall be appropriated to the Department to make | 9 | | infrastructure grants to eligible developers pursuant to | 10 | | agreements. | 11 | | (e) Limitation on grant amounts. The total amount of a | 12 | | grant to an eligible developer shall not exceed the lesser of: | 13 | | (1) $3,000,000 in each State fiscal year; or | 14 | | (2) the total amount of infrastructure costs incurred | 15 | | by the eligible developer with respect to a project that is | 16 | | the subject of an agreement. | 17 | | No eligible developer shall receive moneys that are | 18 | | attributable to a project that is not the subject of the | 19 | | developer's agreement with the Department. | 20 | | (f) Agreements with applicants. The Department shall enter | 21 | | into an agreement with an eligible developer who is entitled to | 22 | | grants under this Section. The agreement must include all of | 23 | | the following: | 24 | | (1) A detailed description of the project that is the | 25 | | subject of the agreement, including the location of the | 26 | | project, the number of jobs created by the project, and |
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| 1 | | project costs. For purposes of this subsection, "project | 2 | | costs" includes the costs of the project incurred or to be | 3 | | incurred by the eligible developer, including | 4 | | infrastructure costs, but excludes the value of State or | 5 | | local incentives, including tax increment financing and | 6 | | deductions, credits, or exemptions afforded to an employer | 7 | | located in an enterprise zone. | 8 | | (2) A requirement that the eligible developer shall | 9 | | maintain operations at the project location, stated as a | 10 | | minimum number of years not to exceed 10 years. | 11 | | (3) A specific method for determining the number of new | 12 | | employees attributable to the project. | 13 | | (4) A requirement that the eligible developer shall | 14 | | report monthly to the Department and the Department of | 15 | | Revenue the number of new employees and the incremental | 16 | | income tax withheld in connection with the new employees. | 17 | | (5) A requirement that the Department is authorized to | 18 | | verify with the Department of Revenue the amounts reported | 19 | | under paragraph (4). | 20 | | Section 10. The State Finance Act is amended by adding | 21 | | Section 5.811 as follows: | 22 | | (30 ILCS 105/5.811 new) | 23 | | Sec. 5.811. The Riverfront Development Fund.
| 24 | | Section 99. Effective date. This Act takes effect upon |
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| 1 | | becoming law. |
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