Full Text of SB1787 98th General Assembly
SB1787eng 98TH GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning State government.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 1. Short title. This Act may be cited as the | 5 | | Illinois Titanium Powdered Metals Development Act. | 6 | | Section 5. Purpose. The purpose of this Act is to assist in | 7 | | the development of the titanium powdered metals industry in | 8 | | Illinois. The industry is growing but under the current | 9 | | economic climate and conditions needs State assistance to | 10 | | further promote and develop itself. The State's assistance will | 11 | | help the industry to grow, stabilize, and create jobs. The | 12 | | production of titanium powder is an energy efficient process | 13 | | that reduces the use of energy. Titanium powder, when used in | 14 | | manufacturing processes, helps to create energy efficient | 15 | | products. Furthermore, the State's assistance will help | 16 | | provide additional needed resources to existing and new | 17 | | research programs while also giving the industry the ability to | 18 | | partner with Illinois' world class higher educational | 19 | | institutions. This will enable Illinois' titanium powdered | 20 | | metals industry to become a world class leader. | 21 | | Section 10. Definition. As used in this Act, "titanium | 22 | | powdered metals" means a powdered metalworking process through |
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| 1 | | solid-state reduction, atomization, electrolysis, or chemical | 2 | | processing whereby the final product has been manufactured | 3 | | using at least 50% titanium tetrachloride (TiCl4). | 4 | | "Department" means the Department of Commerce and Economic | 5 | | Opportunity. | 6 | | "Director" means the Director of Commerce and Economic | 7 | | Opportunity. | 8 | | Section 15. Creation of the Advisory Committee. The | 9 | | Illinois Titanium Powdered Metals Development Advisory | 10 | | Committee is hereby created within the Department of Commerce | 11 | | and Economic Opportunity. The Advisory Committee shall be | 12 | | composed of the following voting members: the Director of | 13 | | Commerce and Economic Opportunity, who shall be Chairman of the | 14 | | Advisory Committee, and 4 members of the General Assembly (one | 15 | | each appointed by the President of the Senate, the Senate | 16 | | Minority Leader, the Speaker of the House of Representatives, | 17 | | and the House Minority Leader). Members appointed by a | 18 | | legislative leader shall serve for the duration of the General | 19 | | Assembly for which he or she is appointed, so long as the | 20 | | member remains a member of that General Assembly. | 21 | | The Advisory Committee shall meet at the call of the | 22 | | Chairman. At any time, the majority of the Advisory Committee | 23 | | may petition the Chairman for a meeting of the Committee. Three | 24 | | members of the Advisory Committee shall constitute a quorum. |
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| 1 | | Section 20. Powers and duties of the Advisory Committee. | 2 | | The Advisory Committee shall have the following powers and | 3 | | duties: | 4 | | (1) to develop an annual agenda to assist the growth | 5 | | and development of the
titanium powdered metals industry | 6 | | within Illinois that may include, but is not
limited to, | 7 | | research, marketing, and promotional methodologies | 8 | | conducted for
the purpose of increasing the use of titanium | 9 | | powdered metals produced, used,
or transported by Illinois | 10 | | companies with an emphasis on the following areas:
| 11 | | maintaining and increasing employment of Illinois workers | 12 | | in the titanium
powdered metals industry, titanium | 13 | | powdered metals preparation and
characterization, | 14 | | marketing, public awareness and education, and
| 15 | | environmental impacts; | 16 | | (2) to support and coordinate titanium powdered metals | 17 | | research, marketing, and promotion in Illinois; | 18 | | (3) to make recommendations to the Department | 19 | | concerning direct loans or grants to companies in Illinois | 20 | | that produce, manufacture, or substantially use titanium | 21 | | powdered metals for the promotion, research, manufacture, | 22 | | infrastructure, and research and development of titanium | 23 | | powdered metals, including engineering, legal, or design | 24 | | qualified experts, and for any other purpose in fulfillment | 25 | | of this Act; | 26 | | (4) to seek the assistance, help, and expertise of the |
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| 1 | | staff of the Department as the Advisory Committee deems | 2 | | necessary to accomplish its goals under this Act; | 3 | | (5) to cooperate to the fullest extent possible with | 4 | | State and federal agencies and departments, independent | 5 | | organizations, and other interested groups, public and | 6 | | private, for the purposes of promoting Illinois titanium | 7 | | powdered metal resources; | 8 | | (6) to focus on (i) existing titanium powdered metals | 9 | | research, marketing, and promotion efforts, (ii) ways to | 10 | | make use of existing facilities in Illinois or other | 11 | | institutions carrying out research, marketing, and | 12 | | promotion of titanium powdered metals, and (iii) make | 13 | | maximum use of the facilities available in Illinois, | 14 | | including universities and colleges located within the | 15 | | State; | 16 | | (7) to create a consortium that conducts, coordinates, | 17 | | and supports titanium powdered metals research, promotion, | 18 | | and marketing activities in the State of Illinois; | 19 | | programmatic activities of the consortium or center shall | 20 | | be subject to approval by the Advisory Committee and shall | 21 | | be consistent with the purposes of this Section; | 22 | | (8) to adopt, amend, or repeal rules, regulations, and | 23 | | bylaws governing the Advisory Committee's organization and | 24 | | conduct of business; | 25 | | (9) to search for and make recommendations to the | 26 | | Department on the securing of gifts or grants in any form |
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| 1 | | from any public agency or any other source; | 2 | | (10) to publish, from time to time, the results of | 3 | | titanium powdered metals research, marketing, and | 4 | | promotion projects supported by the Advisory Committee. | 5 | | Section 25. Other functions of the Advisory Committee. The | 6 | | Advisory Committee shall also: | 7 | | (1) create and maintain current and accurate records on | 8 | | all markets for and actual uses of titanium powdered metals | 9 | | processed, used, or transported in Illinois and ways of | 10 | | making those records available to the public upon request; | 11 | | (2) identify all current and anticipated future | 12 | | technical, economic, institutional, market, environmental, | 13 | | regulatory, and other impediments to the use of titanium | 14 | | powdered metals and the titanium powdered metal industry in | 15 | | Illinois; | 16 | | (3) identify alternative plans or actions that would | 17 | | maintain or increase the use of titanium powdered metals | 18 | | and the titanium powdered metal industry in Illinois; | 19 | | (4) develop strategies and policies to promote | 20 | | responsible uses of titanium powdered metals and the | 21 | | titanium powdered industry in Illinois. | 22 | | Section 30. Titanium Powdered Metals Development Fund; | 23 | | creation. The Titanium Powdered Metals Development Fund is | 24 | | hereby created as a special fund in the State Treasury. All |
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| 1 | | moneys collected under this Act shall be deposited into the | 2 | | Titanium Powdered Metals Development Fund. Moneys in the Fund | 3 | | may be used by the Department solely for the purposes of this | 4 | | Act. | 5 | | Section 60. The Illinois Enterprise Zone Act is amended by | 6 | | changing Section 5.5 as follows:
| 7 | | (20 ILCS 655/5.5)
(from Ch. 67 1/2, par. 609.1)
| 8 | | Sec. 5.5. High Impact Business.
| 9 | | (a) In order to respond to unique opportunities to assist | 10 | | in the
encouragement, development, growth and expansion of the | 11 | | private sector through
large scale investment and development | 12 | | projects, the Department is authorized
to receive and approve | 13 | | applications for the designation of "High Impact
Businesses" in | 14 | | Illinois subject to the following conditions:
| 15 | | (1) such applications may be submitted at any time | 16 | | during the year;
| 17 | | (2) such business is not located, at the time of | 18 | | designation, in
an enterprise zone designated pursuant to | 19 | | this Act;
| 20 | | (3) the business intends to do one or more of the | 21 | | following:
| 22 | | (A) the business intends to make a minimum | 23 | | investment of
$12,000,000 which will be placed in | 24 | | service in qualified property and
intends to create 500 |
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| 1 | | full-time equivalent jobs at a designated location
in | 2 | | Illinois or intends to make a minimum investment of | 3 | | $30,000,000 which
will be placed in service in | 4 | | qualified property and intends to retain 1,500
| 5 | | full-time retained jobs at a designated location in | 6 | | Illinois.
The business must certify in writing that the | 7 | | investments would not be
placed in service in qualified | 8 | | property and the job creation or job
retention would | 9 | | not occur without the tax credits and exemptions set | 10 | | forth
in subsection (b) of this Section. The terms | 11 | | "placed in service" and
"qualified property" have the | 12 | | same meanings as described in subsection (h)
of Section | 13 | | 201 of the Illinois Income Tax Act; or
| 14 | | (B) the business intends to establish a new | 15 | | electric generating
facility at a designated location | 16 | | in Illinois. "New electric generating
facility", for | 17 | | purposes of this Section, means a newly-constructed
| 18 | | electric
generation plant
or a newly-constructed | 19 | | generation capacity expansion at an existing electric
| 20 | | generation
plant, including the transmission lines and | 21 | | associated
equipment that transfers electricity from | 22 | | points of supply to points of
delivery, and for which | 23 | | such new foundation construction commenced not sooner
| 24 | | than July 1,
2001. Such facility shall be designed to | 25 | | provide baseload electric
generation and shall operate | 26 | | on a continuous basis throughout the year;
and (i) |
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| 1 | | shall have an aggregate rated generating capacity of at | 2 | | least 1,000
megawatts for all new units at one site if | 3 | | it uses natural gas as its primary
fuel and foundation | 4 | | construction of the facility is commenced on
or before | 5 | | December 31, 2004, or shall have an aggregate rated | 6 | | generating
capacity of at least 400 megawatts for all | 7 | | new units at one site if it uses
coal or gases derived | 8 | | from coal
as its primary fuel and
shall support the | 9 | | creation of at least 150 new Illinois coal mining jobs, | 10 | | or
(ii) shall be funded through a federal Department of | 11 | | Energy grant before December 31, 2010 and shall support | 12 | | the creation of Illinois
coal-mining
jobs, or (iii) | 13 | | shall use coal gasification or integrated | 14 | | gasification-combined cycle units
that generate
| 15 | | electricity or chemicals, or both, and shall support | 16 | | the creation of Illinois
coal-mining
jobs.
The
| 17 | | business must certify in writing that the investments | 18 | | necessary to establish
a new electric generating | 19 | | facility would not be placed in service and the
job | 20 | | creation in the case of a coal-fueled plant
would not | 21 | | occur without the tax credits and exemptions set forth | 22 | | in
subsection (b-5) of this Section. The term "placed | 23 | | in service" has
the same meaning as described in | 24 | | subsection
(h) of Section 201 of the Illinois Income | 25 | | Tax Act; or
| 26 | | (B-5) the business intends to establish a new |
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| 1 | | gasification
facility at a designated location in | 2 | | Illinois. As used in this Section, "new gasification | 3 | | facility" means a newly constructed coal gasification | 4 | | facility that generates chemical feedstocks or | 5 | | transportation fuels derived from coal (which may | 6 | | include, but are not limited to, methane, methanol, and | 7 | | nitrogen fertilizer), that supports the creation or | 8 | | retention of Illinois coal-mining jobs, and that | 9 | | qualifies for financial assistance from the Department | 10 | | before December 31, 2010. A new gasification facility | 11 | | does not include a pilot project located within | 12 | | Jefferson County or within a county adjacent to | 13 | | Jefferson County for synthetic natural gas from coal; | 14 | | or
| 15 | | (C) the business intends to establish
production | 16 | | operations at a new coal mine, re-establish production | 17 | | operations at
a closed coal mine, or expand production | 18 | | at an existing coal mine
at a designated location in | 19 | | Illinois not sooner than July 1, 2001;
provided that | 20 | | the
production operations result in the creation of 150 | 21 | | new Illinois coal mining
jobs as described in | 22 | | subdivision (a)(3)(B) of this Section, and further
| 23 | | provided that the coal extracted from such mine is | 24 | | utilized as the predominant
source for a new electric | 25 | | generating facility.
The business must certify in | 26 | | writing that the
investments necessary to establish a |
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| 1 | | new, expanded, or reopened coal mine would
not
be | 2 | | placed in service and the job creation would not
occur | 3 | | without the tax credits and exemptions set forth in | 4 | | subsection (b-5) of
this Section. The term "placed in | 5 | | service" has
the same meaning as described in | 6 | | subsection (h) of Section 201 of the
Illinois Income | 7 | | Tax Act; or
| 8 | | (D) the business intends to construct new | 9 | | transmission facilities or
upgrade existing | 10 | | transmission facilities at designated locations in | 11 | | Illinois,
for which construction commenced not sooner | 12 | | than July 1, 2001. For the
purposes of this Section, | 13 | | "transmission facilities" means transmission lines
| 14 | | with a voltage rating of 115 kilovolts or above, | 15 | | including associated
equipment, that transfer | 16 | | electricity from points of supply to points of
delivery | 17 | | and that transmit a majority of the electricity | 18 | | generated by a new
electric generating facility | 19 | | designated as a High Impact Business in accordance
with | 20 | | this Section. The business must certify in writing that | 21 | | the investments
necessary to construct new | 22 | | transmission facilities or upgrade existing
| 23 | | transmission facilities would not be placed in service
| 24 | | without the tax credits and exemptions set forth in | 25 | | subsection (b-5) of this
Section. The term "placed in | 26 | | service" has the
same meaning as described in |
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| 1 | | subsection (h) of Section 201 of the Illinois
Income | 2 | | Tax Act; or
| 3 | | (E) the business intends to establish a new wind | 4 | | power facility at a designated location in Illinois. | 5 | | For purposes of this Section, "new wind power facility" | 6 | | means a newly constructed electric generation | 7 | | facility, or a newly constructed expansion of an | 8 | | existing electric generation facility, placed in | 9 | | service on or after July 1, 2009, that generates | 10 | | electricity using wind energy devices, and such | 11 | | facility shall be deemed to include all associated | 12 | | transmission lines, substations, and other equipment | 13 | | related to the generation of electricity from wind | 14 | | energy devices. For purposes of this Section, "wind | 15 | | energy device" means any device, with a nameplate | 16 | | capacity of at least 0.5 megawatts, that is used in the | 17 | | process of converting kinetic energy from the wind to | 18 | | generate electricity; or and | 19 | | (F) the business intends to make a minimum | 20 | | investment of $3,000,000 in titanium powdered metals | 21 | | manufacturing which will be placed in service in | 22 | | qualified property and intends to create or retain a | 23 | | minimum of 15 full-time equivalent jobs in titanium | 24 | | powdered metals manufacturing at a location in | 25 | | Illinois; the business must certify in writing that the | 26 | | investments would not be placed in service in qualified |
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| 1 | | property and the job creation or job retention would | 2 | | not occur without the tax credits and exemptions set | 3 | | forth in subsection (b) of this Section. The terms | 4 | | "placed in service" and "qualified property" have the | 5 | | same meanings as described in subsection (h) of Section | 6 | | 201 of the Illinois Income Tax Act; and
| 7 | | (4) no later than 90 days after an application is | 8 | | submitted, the
Department shall notify the applicant of the | 9 | | Department's determination of
the qualification of the | 10 | | proposed High Impact Business under this Section.
| 11 | | (b) Businesses designated as High Impact Businesses | 12 | | pursuant to
subdivision (a)(3)(A) or (a)(3)(F) of this Section | 13 | | shall qualify for the credits and
exemptions described in the
| 14 | | following Acts: Section 9-222 and Section 9-222.1A of the | 15 | | Public Utilities
Act,
subsection (h)
of Section 201 of the | 16 | | Illinois Income Tax Act,
and Section 1d of
the
Retailers' | 17 | | Occupation Tax Act; provided that these credits and
exemptions
| 18 | | described in these Acts shall not be authorized until the | 19 | | minimum
investments set forth in subdivision (a)(3)(A) of this
| 20 | | Section have been placed in
service in qualified properties | 21 | | and, in the case of the exemptions
described in the Public | 22 | | Utilities Act and Section 1d of the Retailers'
Occupation Tax | 23 | | Act, the minimum full-time equivalent jobs or full-time | 24 | | retained jobs set
forth in subdivision (a)(3)(A) of this | 25 | | Section have been
created or retained.
Businesses designated as | 26 | | High Impact Businesses under
this Section shall also
qualify |
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| 1 | | for the exemption described in Section 5l of the Retailers' | 2 | | Occupation
Tax Act. The credit provided in subsection (h) of | 3 | | Section 201 of the Illinois
Income Tax Act shall be applicable | 4 | | to investments in qualified property as set
forth in | 5 | | subdivision (a)(3)(A) of this Section.
| 6 | | (b-5) Businesses designated as High Impact Businesses | 7 | | pursuant to
subdivisions (a)(3)(B), (a)(3)(B-5), (a)(3)(C), | 8 | | and (a)(3)(D) of this Section shall qualify
for the credits and | 9 | | exemptions described in the following Acts: Section 51 of
the | 10 | | Retailers' Occupation Tax Act, Section 9-222 and Section | 11 | | 9-222.1A of the
Public Utilities Act, and subsection (h) of | 12 | | Section 201 of the Illinois Income
Tax Act; however, the | 13 | | credits and exemptions authorized under Section 9-222 and
| 14 | | Section 9-222.1A of the Public Utilities Act, and subsection | 15 | | (h) of Section 201
of the Illinois Income Tax Act shall not be | 16 | | authorized until the new electric
generating facility, the new | 17 | | gasification facility, the new transmission facility, or the | 18 | | new, expanded, or
reopened coal mine is operational,
except | 19 | | that a new electric generating facility whose primary fuel | 20 | | source is
natural gas is eligible only for the exemption under | 21 | | Section 5l of the
Retailers' Occupation Tax Act.
| 22 | | (b-6) Businesses designated as High Impact Businesses | 23 | | pursuant to subdivision (a)(3)(E) of this Section shall qualify | 24 | | for the exemptions described in Section 5l of the Retailers' | 25 | | Occupation Tax Act; any business so designated as a High Impact | 26 | | Business being, for purposes of this Section, a "Wind Energy |
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| 1 | | Business". | 2 | | (c) High Impact Businesses located in federally designated | 3 | | foreign trade
zones or sub-zones are also eligible for | 4 | | additional credits, exemptions and
deductions as described in | 5 | | the following Acts: Section 9-221 and Section
9-222.1 of the | 6 | | Public
Utilities Act; and subsection (g) of Section 201, and | 7 | | Section 203
of the Illinois Income Tax Act.
| 8 | | (d) Except for businesses contemplated under subdivision | 9 | | (a)(3)(E) or (a)(3)(F) of this Section, existing Illinois | 10 | | businesses which apply for designation as a
High Impact | 11 | | Business must provide the Department with the prospective plan
| 12 | | for which 1,500 full-time retained jobs would be eliminated in | 13 | | the event that the
business is not designated.
| 14 | | (e) Except for new wind power facilities contemplated under | 15 | | subdivision (a)(3)(E) of this Section, new proposed facilities | 16 | | which apply for designation as High Impact
Business must | 17 | | provide the Department with proof of alternative non-Illinois
| 18 | | sites which would receive the proposed investment and job | 19 | | creation in the
event that the business is not designated as a | 20 | | High Impact Business.
| 21 | | (f) Except for businesses contemplated under subdivision | 22 | | (a)(3)(E) of this Section, in the event that a business is | 23 | | designated a High Impact Business
and it is later determined | 24 | | after reasonable notice and an opportunity for a
hearing as | 25 | | provided under the Illinois Administrative Procedure Act, that
| 26 | | the business would have placed in service in qualified property |
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| 1 | | the
investments and created or retained the requisite number of | 2 | | jobs without
the benefits of the High Impact Business | 3 | | designation, the Department shall
be required to immediately | 4 | | revoke the designation and notify the Director
of the | 5 | | Department of Revenue who shall begin proceedings to recover | 6 | | all
wrongfully exempted State taxes with interest. The business | 7 | | shall also be
ineligible for all State funded Department | 8 | | programs for a period of 10 years.
| 9 | | (g) The Department shall revoke a High Impact Business | 10 | | designation if
the participating business fails to comply with | 11 | | the terms and conditions of
the designation. However, the | 12 | | penalties for new wind power facilities or Wind Energy | 13 | | Businesses for failure to comply with any of the terms or | 14 | | conditions of the Illinois Prevailing Wage Act shall be only | 15 | | those penalties identified in the Illinois Prevailing Wage Act, | 16 | | and the Department shall not revoke a High Impact Business | 17 | | designation as a result of the failure to comply with any of | 18 | | the terms or conditions of the Illinois Prevailing Wage Act in | 19 | | relation to a new wind power facility or a Wind Energy | 20 | | Business.
| 21 | | (h) Prior to designating a business, the Department shall | 22 | | provide the
members of the General Assembly and Commission on | 23 | | Government Forecasting and Accountability
with a report | 24 | | setting forth the terms and conditions of the designation and
| 25 | | guarantees that have been received by the Department in | 26 | | relation to the
proposed business being designated.
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| 1 | | (Source: P.A. 96-28, eff. 7-1-09; 97-905, eff. 8-7-12.)
| 2 | | Section 65. The State Finance Act is amended by adding | 3 | | Section 5.826 as follows: | 4 | | (30 ILCS 105/5.826 new) | 5 | | Sec. 5.826. The Titanium Powdered Metals Development Fund.
| 6 | | Section 99. Effective date. This Act takes effect upon | 7 | | becoming law.
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