Full Text of SB2886 97th General Assembly
SB2886sam001 97TH GENERAL ASSEMBLY | Sen. James F. Clayborne, Jr. Filed: 2/23/2012
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| 1 | | AMENDMENT TO SENATE BILL 2886
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 2886 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The River Edge Redevelopment Zone Act is | 5 | | amended by adding Section 10-15 as follows: | 6 | | (65 ILCS 115/10-15 new) | 7 | | Sec. 10-15. Riverfront Development Fund. | 8 | | (a) Purpose. The General Assembly has determined that it is | 9 | | in the interest of the State of Illinois to promote development | 10 | | that will protect, promote, and improve the riverfront areas of | 11 | | a financially distressed city designated under the Financially | 12 | | Distressed City Law. | 13 | | (b) Definitions. As used in this Section: | 14 | | "Agreement" means the agreement between an eligible | 15 | | employer and the Department under the provisions of | 16 | | subsection (f) of this Section. |
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| 1 | | "Department" means the Department of Commerce and | 2 | | Economic Opportunity. | 3 | | "Director" means the Director of Commerce and Economic | 4 | | Opportunity. | 5 | | "Eligible developer" means an individual, partnership, | 6 | | corporation, or other entity that develops within a river | 7 | | edge redevelopment zone that is located within a | 8 | | municipality designated as a financially distressed city. | 9 | | "Eligible employer" means an individual, partnership, | 10 | | corporation, or other entity that employs full-time | 11 | | employees within a river edge redevelopment zone that is | 12 | | located within a municipality designated as a financially | 13 | | distressed city. | 14 | | "Full-time employee" means an individual who is | 15 | | employed for consideration for at least 35 hours each week | 16 | | or who renders any other standard of service generally | 17 | | accepted by industry custom or practice as full-time | 18 | | employment. An individual for whom a W-2 is issued by a | 19 | | Professional Employer Organization (PEO) is a full-time | 20 | | employee if employed in the service of the eligible | 21 | | employer for consideration for at least 35 hours each week | 22 | | or who renders any other standard of service generally | 23 | | accepted by industry custom or practice as full-time | 24 | | employment. | 25 | | "Incremental income tax" means the total amount | 26 | | withheld from the compensation of new employees under |
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| 1 | | Article 7 of the Illinois Income Tax Act arising from | 2 | | employment by an eligible employer. | 3 | | "Infrastructure" means roads, access roads, streets, | 4 | | bridges, sidewalks, water and sewer line extensions, water | 5 | | distribution and purification facilities, waste disposal | 6 | | systems, sewage treatment facilities, stormwater drainage | 7 | | and retention facilities, gas and electric utility line | 8 | | extensions, or other improvements that are essential to the | 9 | | development of the project that is the subject of an | 10 | | agreement. | 11 | | "New employee" means a full-time employee first | 12 | | employed by an eligible employer in the project that is the | 13 | | subject of an agreement between the Department and an | 14 | | eligible developer and who is hired after the eligible | 15 | | developer enters into the agreement, but does not include: | 16 | | (1) an employee of the eligible employer who | 17 | | performs a job that (i) existed for at least 6 months | 18 | | before the employee was hired and (ii) was previously | 19 | | performed by another employee; | 20 | | (2) an employee of the eligible employer who was | 21 | | previously employed in Illinois by a related member of | 22 | | the eligible employer and whose employment was shifted | 23 | | to the eligible employer after the eligible employer | 24 | | entered into the agreement; or | 25 | | (3) a child, grandchild, parent, or spouse, other | 26 | | than a spouse who is legally separated from the |
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| 1 | | individual, of any individual who has a direct or an | 2 | | indirect ownership interest of at least 5% in the | 3 | | profits, capital, or value of the eligible employer. | 4 | | Notwithstanding item (2) of this definition, an | 5 | | employee may be considered a new employee under the | 6 | | agreement if the employee performs a job that was | 7 | | previously performed by an employee who was: | 8 | | (A) treated under the agreement as a new employee; | 9 | | and | 10 | | (B) promoted by the eligible employer to another | 11 | | job. | 12 | | "Professional Employer Organization" (PEO) means an | 13 | | employee leasing company, as defined in Section | 14 | | 206.1(A)(2) of the Illinois Unemployment Insurance Act. | 15 | | "Related member" means a person or entity that, with | 16 | | respect to the eligible employer during any portion of the | 17 | | taxable year, is any one of the following: | 18 | | (1) an individual stockholder, if the stockholder | 19 | | and the members of the stockholder's family (as defined | 20 | | in Section 318 of the Internal Revenue Code) own | 21 | | directly, indirectly, beneficially, or constructively, | 22 | | in the aggregate, at least 50% of the value of the | 23 | | eligible employer's outstanding stock; | 24 | | (2) a partnership, estate, or trust and any partner | 25 | | or beneficiary, if the partnership, estate, or trust, | 26 | | and its partners or beneficiaries own directly, |
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| 1 | | indirectly, or beneficially, or constructively, in the | 2 | | aggregate, at least 50% of the profits, capital, stock, | 3 | | or value of the eligible employer; | 4 | | (3) a corporation, and any party related to the | 5 | | corporation in a manner that would require an | 6 | | attribution of stock from the corporation to the party | 7 | | or from the party to the corporation under the | 8 | | attribution rules of Section 318 of the Internal | 9 | | Revenue Code, if the taxpayer owns directly, | 10 | | indirectly, beneficially, or constructively at least | 11 | | 50% of the value of the corporation's outstanding | 12 | | stock; | 13 | | (4) a corporation and any party related to that | 14 | | corporation in a manner that would require an | 15 | | attribution of stock from the corporation to the party | 16 | | or from the party to the corporation under the | 17 | | attribution rules of Section 318 of the Internal | 18 | | Revenue Code, if the corporation and all such related | 19 | | parties own in the aggregate at least 50% of the | 20 | | profits, capital, stock, or value of the eligible | 21 | | employer; or | 22 | | (5) a person to or from whom there is attribution | 23 | | of stock ownership in accordance with Section 1563(e) | 24 | | of the Internal Revenue Code, except, for purposes of | 25 | | determining whether a person is a related member under | 26 | | this definition, 20% shall be substituted for 5% |
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| 1 | | wherever 5% appears in Section 1563(e) of the Internal | 2 | | Revenue Code. | 3 | | (c) The Riverfront Development Fund. The Riverfront | 4 | | Development Fund is created as a special fund in the State | 5 | | treasury. As soon as possible after the first day of each | 6 | | month, upon certification of the Department of Revenue, the | 7 | | Comptroller shall order transferred and the Treasurer shall | 8 | | transfer from the General Revenue Fund to the Riverfront | 9 | | Development Fund an amount equal to the incremental income tax | 10 | | for the previous month attributable to a project that is the | 11 | | subject of an agreement. | 12 | | (d) Grants from the Riverfront Development Fund. In State | 13 | | fiscal years 2012 through 2021, all moneys in the Riverfront | 14 | | Development Fund, held solely for the benefit of eligible | 15 | | developers, shall be appropriated to the Department to make | 16 | | infrastructure grants to eligible developers pursuant to | 17 | | agreements. | 18 | | (e) Limitation on grant amounts. The total amount of a | 19 | | grant to an eligible developer shall not exceed the lesser of: | 20 | | (1) $3,000,000 in each State fiscal year; or | 21 | | (2) the total amount of infrastructure costs incurred | 22 | | by the eligible developer with respect to a project that is | 23 | | the subject of an agreement. | 24 | | No eligible developer shall receive moneys that are | 25 | | attributable to a project that is not the subject of the | 26 | | developer's agreement with the Department. |
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| 1 | | (f) Agreements with applicants. The Department shall enter | 2 | | into an agreement with an eligible developer who is entitled to | 3 | | grants under this Section. The agreement must include all of | 4 | | the following: | 5 | | (1) A detailed description of the project that is the | 6 | | subject of the agreement, including the location of the | 7 | | project, the number of jobs created by the project, and | 8 | | project costs. For purposes of this subsection, "project | 9 | | costs" includes the costs of the project incurred or to be | 10 | | incurred by the eligible developer, including | 11 | | infrastructure costs, but excludes the value of State or | 12 | | local incentives, including tax increment financing and | 13 | | deductions, credits, or exemptions afforded to an employer | 14 | | located in an enterprise zone. | 15 | | (2) A requirement that the eligible developer shall | 16 | | maintain operations at the project location, stated as a | 17 | | minimum number of years not to exceed 10 years. | 18 | | (3) A specific method for determining the number of new | 19 | | employees attributable to the project. | 20 | | (4) A requirement that the eligible developer shall | 21 | | report monthly to the Department and the Department of | 22 | | Revenue the number of new employees and the incremental | 23 | | income tax withheld in connection with the new employees. | 24 | | (5) A requirement that the Department is authorized to | 25 | | verify with the Department of Revenue the amounts reported | 26 | | under paragraph (4). |
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| 1 | | Section 10. The State Finance Act is amended by adding | 2 | | Section 5.811 as follows: | 3 | | (30 ILCS 105/5.811 new) | 4 | | Sec. 5.811. The Riverfront Development Fund.
| 5 | | Section 99. Effective date. This Act takes effect upon | 6 | | becoming law.".
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