Illinois General Assembly - Full Text of SB1591
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Full Text of SB1591  101st General Assembly


Sen. Elgie R. Sims, Jr.

Filed: 4/5/2019





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2    AMENDMENT NO. ______. Amend Senate Bill 1591 by replacing
3everything from line 4 on page 1 through line 24 on page 5 with
4the following:
5    "Section 3. The Department of Commerce and Economic
6Opportunity Law of the Civil Administrative Code of Illinois is
7amended by adding Section 605-1025 as follows:
8    (20 ILCS 605/605-1025 new)
9    Sec. 605-1025. Data center investment.
10    (a) The Department shall issue certificates of exemption
11from the Retailers' Occupation Tax Act, the Use Tax Act, the
12Service Use Tax Act, and the Service Occupation Tax Act, all
13locally-imposed retailers' occupation taxes administered and
14collected by the Department, the Chicago non-titled Use Tax,
15and the Electricity Excise Tax Act to qualifying Illinois data



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1    (b) For purposes of this Section:
2        "Data center" means a building or a series of buildings
3    that is rehabilitated or constructed to house working
4    servers in one physical location or several sites.
5        "Qualifying Illinois data center" means a new or
6    existing data center that:
7            (1) is located in the State of Illinois;
8            (2) in the case of an existing data center, made a
9        capital investment of at least $250,000,000
10        collectively by the data center operator and the
11        tenants of all of its data centers over the 60-month
12        period immediately prior to January 1, 2020 or
13        committed to make a capital investment of at least
14        $250,000,000 over a 60-month period commencing before
15        January 1, 2020 and ending after January 1, 2020; or
16            (3) in the case of a new data center, makes a
17        capital investment of at least $250,000,000 over a
18        60-month period; and
19            (4) in the case of both existing and new data
20        centers, results in the creation of at least 20
21        full-time or full-time equivalent new jobs over a
22        period of 60 months by the data center operator and the
23        tenants of the data center, collectively, associated
24        with the operation or maintenance of the data center;
25        those jobs must have a total compensation equal to or
26        greater than 120% of the median wage paid to full-time



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1        employees in the county where the data center is
2        located, as determined by the U.S. Bureau of Labor
3        Statistics; and
4            (5) is carbon neutral or attains certification
5        under one or more of the following green building
6        standards:
7                (A) BREEAM for New Construction or BREEAM
8            In-Use;
9                (B) ENERGY STAR;
10                (C) Envision;
11                (D) ISO 50001-energy management;
12                (E) LEED for Building Design and Construction
13            or LEED for Operations and Maintenance;
14                (F) Green Globes for New Construction or Green
15            Globes for Existing Buildings;
16                (G) UL 3223; or
17                (H) an equivalent program approved by the
18            Department of Commerce and Economic Opportunity.
19        "Full-time equivalent job" means a job in which the new
20    employee works for the owner, operator, contractor, or
21    tenant of a data center or for a corporation under contract
22    with the owner, operator or tenant of a data center at a
23    rate of at least 35 hours per week. An owner, operator or
24    tenant who employs labor or services at a specific site or
25    facility under contract with another may declare one
26    full-time, permanent job for every 1,820 man hours worked



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1    per year under that contract. Vacations, paid holidays, and
2    sick time are included in this computation. Overtime is not
3    considered a part of regular hours.
4        "Qualified tangible personal property" means:
5    electrical systems and equipment; climate control and
6    chilling equipment and systems; mechanical systems and
7    equipment; monitoring and secure systems; emergency
8    generators; hardware; computers; servers; data storage
9    devices; network connectivity equipment; racks; cabinets;
10    telecommunications cabling infrastructure; raised floor
11    systems; peripheral components or systems; software;
12    mechanical, electrical, or plumbing systems; battery
13    systems; cooling systems and towers; temperature control
14    systems; other cabling; and other data center
15    infrastructure equipment and systems necessary to operate
16    qualified tangible personal property, including fixtures;
17    and component parts of any of the foregoing, including
18    installation, maintenance, repair, refurbishment, and
19    replacement of qualified tangible personal property to
20    generate, transform, transmit, distribute, or manage
21    electricity necessary to operate qualified tangible
22    personal property; and all other tangible personal
23    property that is essential to the operations of a computer
24    data center. "Qualified tangible personal property" also
25    includes building materials physically incorporated in to
26    the qualifying data center.



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1     To document the exemption allowed under this Section, the
2retailer must obtain from the purchaser a copy of the
3certificate of eligibility issued by the Department.
4    (c) New and existing data centers seeking a certificate of
5exemption for new or existing facilities shall apply to the
6Department in the manner specified by the Department. The
7Department and any data center seeking the exemption, including
8a data center operator on behalf of itself and its tenants,
9must enter into a memorandum of understanding that at a minimum
11        (1) the details for determining the amount of capital
12    investment to be made;
13        (2) the number of new jobs created;
14        (3) the timeline for achieving the capital investment
15    and new job goals;
16        (4) the repayment obligation should those goals not be
17    achieved and any conditions under which repayment by the
18    qualifying data center or data center tenant claiming the
19    exemption will be required; and
20        (5) other provisions as deemed necessary by the
21    Department.
22    (d) Beginning July 1, 2021, and each year thereafter, the
23Department shall annually report to the Governor and the
24General Assembly on the outcomes and effectiveness of this
25amendatory Act of the 101st General Assembly that shall include
26the following:



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1        (1) the name of each recipient business;
2        (2) the location of the project;
3        (3) the estimated value of the credit;
4        (4) the number of new jobs and, if applicable, retained
5    jobs pledged as a result of the project; and
6        (5) whether or not the project is located in an
7    underserved area.
8    (e) New and existing data centers seeking a certificate of
9exemption related to the rehabilitation or construction of data
10centers in the State shall require the contractor and all
11subcontractors to comply with the requirements of Section 30-22
12of the Illinois Procurement Code as they apply to responsible
13bidders and to present satisfactory evidence of that compliance
14to the Department.
15    (f) New and existing data centers seeking a certificate of
16exemption for the rehabilitation or construction of data
17centers in the State shall require the contractor to enter into
18a project labor agreement approved by the Department."; and
19on page 23, line 16, by replacing "Department" with "Department
20of Commerce and Economic Opportunity"; and
21on page 24, line 1, by replacing "Department" with "Department
22of Commerce and Economic Opportunity"; and
23on page 24, by replacing lines 3 and 4 with the following:



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1"Section 605-1025 of the Department of Commerce and Economic
2Opportunity Law of the Civil Administrative Code of Illinois.";
4on page 25, line 9, by replacing "Department" with "Department
5of Commerce and Economic Opportunity"; and
6on page 40, line 9, by replacing "Department" with "Department
7of Commerce and Economic Opportunity"; and
8on page 40, line 20, by replacing "Department" with "Department
9of Commerce and Economic Opportunity"; and
10on page 40, by replacing lines 22 and 23 with the following:
11"Section 605-1025 of the Department of Commerce and Economic
12Opportunity Law of the Civil Administrative Code of Illinois.";
14on page 42, line 2, by replacing "Department" with "Department
15of Commerce and Economic Opportunity"; and
16on page 55, line 15, by replacing "Department" with "Department
17of Commerce and Economic Opportunity"; and
18on page 55, line 26, by replacing "Department" with "Department
19of Commerce and Economic Opportunity"; and



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1on page 56, by replacing lines 2 and 3 with the following:
2"Section 605-1025 of the Department of Commerce and Economic
3Opportunity Law of the Civil Administrative Code of Illinois.";
5on page 57, line 8, by replacing "Department" with "Department
6of Commerce and Economic Opportunity"; and
7on page 78, line 17, by replacing "Department" with "Department
8of Commerce and Economic Opportunity"; and
9on page 79, line 3, by replacing "Department" with "Department
10of Commerce and Economic Opportunity"; and
11on page 79, by replacing lines 5 and 6 with the following:
12"Section 605-1025 of the Department of Commerce and Economic
13Opportunity Law of the Civil Administrative Code of Illinois.";
15on page 80, line 12, by replacing "Department" with "Department
16of Commerce and Economic Opportunity".