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Full Text of HB0034  102nd General Assembly

HB0034 102ND GENERAL ASSEMBLY


 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB0034

 

Introduced 1/14/2021, by Rep. Mark L. Walker

 

SYNOPSIS AS INTRODUCED:
 
20 ILCS 655/3  from Ch. 67 1/2, par. 603
20 ILCS 655/4  from Ch. 67 1/2, par. 604
20 ILCS 655/4.1
20 ILCS 655/5.1  from Ch. 67 1/2, par. 606
20 ILCS 655/5.2  from Ch. 67 1/2, par. 607
20 ILCS 655/5.3  from Ch. 67 1/2, par. 608
20 ILCS 655/5.4  from Ch. 67 1/2, par. 609
20 ILCS 655/8.1

    Amends the Illinois Enterprise Zone Act. In a Section concerning eligibility for an Enterprise Zone based on the local labor market area, provides that the Department of Commerce and Economic Opportunity may consider information released in the most recent American Community Survey (currently, the federal decennial census only). Provides that the Department of Commerce and Economic Opportunity may award partial points if the applicant demonstrates specific job creation and investment below specified thresholds. Contains provisions concerning provisional certification and provisional decertification. Provides that, for Enterprise Zones that are scheduled to expire on or after January 1, 2024, an application process shall begin 5 years prior to the year in which the Zone expires. Provides that the Department of Commerce and Economic Opportunity may consider written comments or any other information regarding a pending Enterprise Zone application submitted after the deadline and received prior to the decision on all pending applications. Makes changes concerning the total number of Enterprise Zones that may be certified.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB0034LRB102 02864 RJF 12873 b

1    AN ACT concerning State government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Enterprise Zone Act is amended by
5changing Sections 3, 4, 4.1, 5.1, 5.2, 5.3, 5.4, and 8.1 as
6follows:
 
7    (20 ILCS 655/3)  (from Ch. 67 1/2, par. 603)
8    Sec. 3. Definitions. As used in this Act, the following
9words shall have the meanings ascribed to them, unless the
10context otherwise requires:
11    (a) "Department" means the Department of Commerce and
12Economic Opportunity.
13    (b) "Enterprise Zone" means an area of the State certified
14by the Department as an Enterprise Zone pursuant to this Act.
15    (c) "Depressed Area" means an area in which pervasive
16poverty, unemployment and economic distress exist.
17    (d) "Designated Zone Organization" means an association or
18entity: (1) the members of which are substantially all
19residents of the Enterprise Zone; (2) the board of directors
20of which is elected by the members of the organization; (3)
21which satisfies the criteria set forth in Section 501(c) (3)
22or 501(c) (4) of the Internal Revenue Code; and (4) which
23exists primarily for the purpose of performing within such

 

 

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1area or zone for the benefit of the residents and businesses
2thereof any of the functions set forth in Section 8 of this
3Act.
4    (e) "Agency" means each officer, board, commission and
5agency created by the Constitution, in the executive branch of
6State government, other than the State Board of Elections;
7each officer, department, board, commission, agency,
8institution, authority, university, body politic and corporate
9of the State; and each administrative unit or corporate
10outgrowth of the State government which is created by or
11pursuant to statute, other than units of local government and
12their officers, school districts and boards of election
13commissioners; each administrative unit or corporate outgrowth
14of the above and as may be created by executive order of the
15Governor. No entity shall be considered an "agency" for the
16purposes of this Act unless authorized by law to make rules or
17regulations.
18    (f) "Rule" means each agency statement of general
19applicability that implements, applies, interprets or
20prescribes law or policy, but does not include (i) statements
21concerning only the internal management of an agency and not
22affecting private rights or procedures available to persons or
23entities outside the agency, (ii) intra-agency memoranda, or
24(iii) the prescription of standardized forms.
25    (g) "Board" means the Enterprise Zone Board created in
26Section 5.2.1.

 

 

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1    (h) "Local labor market area" means an economically
2integrated area within which individuals can reside and find
3employment within a reasonable distance or can readily change
4jobs without changing their place of residence.
5    (i) "Full-time equivalent job" means a job in which the
6new employee works for the recipient or for a corporation
7under contract to the recipient at a rate of at least 35 hours
8per week. A recipient who employs labor or services at a
9specific site or facility under contract with another may
10declare one full-time, permanent job for every 1,820 man hours
11worked per year under that contract. Vacations, paid holidays,
12and sick time are included in this computation. Overtime is
13not considered a part of regular hours.
14    (j) "Full-time retained job" means any employee defined as
15having a full-time or full-time equivalent job preserved at a
16specific facility or site, the continuance of which is
17threatened by a specific and demonstrable threat, which shall
18be specified in the application for development assistance. A
19recipient who employs labor or services at a specific site or
20facility under contract with another may declare one retained
21employee per year for every 1,750 man hours worked per year
22under that contract, even if different individuals perform
23on-site labor or services.
24(Source: P.A. 97-905, eff. 8-7-12; 98-463, eff. 8-16-13.)
 
25    (20 ILCS 655/4)  (from Ch. 67 1/2, par. 604)

 

 

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1    Sec. 4. Qualifications for enterprise zones.
2    (1) An area is qualified to become an enterprise zone
3which:
4        (a) is a contiguous area, provided that a zone area
5    may exclude wholly surrounded territory within its
6    boundaries;
7        (b) comprises a minimum of one-half square mile and
8    not more than 12 square miles, or 15 square miles if the
9    zone is located within the jurisdiction of 4 or more
10    counties or municipalities, in total area, exclusive of
11    lakes and waterways; however, in such cases where the
12    enterprise zone is a joint effort of three or more units of
13    government, or two or more units of government if situated
14    in a township which is divided by a municipality of
15    1,000,000 or more inhabitants, and where the certification
16    has been in effect at least one year, the total area shall
17    comprise a minimum of one-half square mile and not more
18    than thirteen square miles in total area exclusive of
19    lakes and waterways;
20        (c) (blank);
21        (d) (blank);
22        (e) is (1) entirely within a municipality or (2)
23    entirely within the unincorporated areas of a county,
24    except where reasonable need is established for such zone
25    to cover portions of more than one municipality or county
26    or (3) both comprises (i) all or part of a municipality and

 

 

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1    (ii) an unincorporated area of a county; and
2        (f) meets 3 or more of the following criteria:
3            (1) all or part of the local labor market area has
4        had an annual average unemployment rate of at least
5        120% of the State's annual average unemployment rate
6        for the most recent calendar year or the most recent
7        fiscal year as reported by the Department of
8        Employment Security;
9            (2) designation will result in the development of
10        substantial employment opportunities by creating or
11        retaining a minimum aggregate of 1,000 full-time
12        equivalent jobs due to an aggregate investment of
13        $100,000,000 or more, and will help alleviate the
14        effects of poverty and unemployment within the local
15        labor market area;
16            (3) at least one of the following applies to the
17        local labor market area: (A) all or part of the local
18        labor market area has a poverty rate of at least 20%
19        according to the latest federal decennial census, the
20        most recent American Community Survey released by the
21        U.S. Census Bureau, or other appropriate data source
22        produced by the U.S. Census Bureau; (B) 50% or more of
23        children in the local labor market area are eligible
24        to participate in the federal free lunch or
25        reduced-price meals program according to reported
26        statistics from the State Board of Education, or 20%

 

 

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1        or more households in the local labor market area
2        receive food stamps or assistance under the
3        Supplemental Nutrition Assistance Program ("SNAP")
4        according to the latest federal decennial census or
5        other data from the U.S. Census Bureau;
6            (4) an abandoned coal mine, a brownfield (as
7        defined in Section 58.2 of the Environmental
8        Protection Act), or an inactive nuclear-powered
9        electrical generation facility where spent nuclear
10        fuel is stored on-site is located in the proposed zone
11        area, or all or a portion of the proposed zone was
12        declared a federal disaster area in the 3 years
13        preceding the date of application;
14            (5) the local labor market area contains a
15        presence of large employers that have downsized over
16        the years, the labor market area has experienced plant
17        closures in the 5 years prior to the date of
18        application affecting more than 50 workers, or the
19        local labor market area has experienced State or
20        federal facility closures in the 5 years prior to the
21        date of application affecting more than 50 workers;
22            (6) based on data from Multiple Listing Service
23        information or other suitable sources, the local labor
24        market area contains a high floor vacancy rate of
25        industrial or commercial properties, vacant or
26        demolished commercial and industrial structures are

 

 

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1        prevalent in the local labor market area, or
2        industrial structures in the local labor market area
3        are not used because of age, deterioration, relocation
4        of the former occupants, or cessation of operation;
5            (7) the applicant demonstrates a substantial plan
6        for using the designation to improve the State and
7        local government tax base, including income, sales,
8        and property taxes, including a plan for disposal of
9        publicly-owned real property by the methods described
10        in Section 10 of this Act;
11            (8) significant public infrastructure is present
12        in the local labor market area in addition to a plan
13        for infrastructure development and improvement;
14            (9) high schools or community colleges located
15        within the local labor market area are engaged in ACT
16        Work Keys, Manufacturing Skills Standard
17        Certification, or other industry-based credentials
18        that prepare students for careers;
19            (10) (blank); or the change in equalized assessed
20        valuation of industrial and/or commercial properties
21        in the 5 years prior to the date of application is
22        equal to or less than 50% of the State average change
23        in equalized assessed valuation for industrial and/or
24        commercial properties, as applicable, for the same
25        period of time; or
26            (11) the applicant demonstrates a substantial plan

 

 

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1        for using the designation to encourage: (i)
2        participation by businesses owned by minorities,
3        women, and persons with disabilities, as those terms
4        are defined in the Business Enterprise for Minorities,
5        Women, and Persons with Disabilities Act; and (ii) the
6        hiring of minorities, women, and persons with
7        disabilities.
8    As provided in Section 10-5.3 of the River Edge
9Redevelopment Zone Act, upon the expiration of the term of
10each River Edge Redevelopment Zone in existence on August 7,
112012 (the effective date of Public Act 97-905), that River
12Edge Redevelopment Zone will become available for its previous
13designee or a new applicant to compete for designation as an
14enterprise zone. No preference for designation will be given
15to the previous designee of the zone.
16    (2) Any criteria established by the Department or by law
17which utilize the rate of unemployment for a particular area
18shall provide that all persons who are not presently employed
19and have exhausted all unemployment benefits shall be
20considered unemployed, whether or not such persons are
21actively seeking employment.
22(Source: P.A. 100-838, eff. 8-13-18; 100-1149, eff. 12-14-18;
23101-81, eff. 7-12-19.)
 
24    (20 ILCS 655/4.1)
25    Sec. 4.1. Department recommendations.

 

 

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1    (a) For all applications that qualify under Section 4 of
2this Act, the Department shall issue recommendations by
3assigning a score to each applicant. The scores will be
4determined by the Department, based on the extent to which an
5applicant meets the criteria points under subsection (f) of
6Section 4 of this Act. Scores will be determined using the
7following scoring system:
8        (1) Up to 50 points for the extent to which the
9    applicant meets or exceeds the criteria in item (1) of
10    subsection (f) of Section 4 of this Act, with points
11    awarded according to the severity of the unemployment.
12        (2) Up to 50 points for the extent to which the
13    applicant meets or exceeds the criteria in item (2) of
14    subsection (f) of Section 4 of this Act, with points
15    awarded in accordance with the number of jobs created and
16    the aggregate amount of investment promised. The
17    Department may award partial points on a pro rata basis
18    under this paragraph (2) if the applicant demonstrates
19    specific job creation and investment below the thresholds
20    set forth in paragraph (2) of subsection (f) of Section 4.
21        (3) Up to 40 points for the extent to which the
22    applicant meets or exceeds the criteria in item (3) of
23    subsection (f) of Section 4 of this Act, with points
24    awarded in accordance with the severity of the
25    unemployment rate according to the latest federal
26    decennial census.

 

 

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1        (4) Up to 30 points for the extent to which the
2    applicant meets or exceeds the criteria in item (4) of
3    subsection (f) of Section 4 of this Act, with points
4    awarded in accordance with the severity of the
5    environmental impact of the abandoned coal mine,
6    brownfield, or federal disaster area.
7        (5) Up to 50 points for the extent to which the
8    applicant meets or exceeds the criteria in item (5) of
9    subsection (f) of Section 4 of this Act, with points
10    awarded in accordance with the severity of the applicable
11    facility closures or downsizing.
12        (6) Up to 40 points for the extent to which the
13    applicant meets or exceeds the criteria in item (6) of
14    subsection (f) of Section 4 of this Act, with points
15    awarded in accordance with the severity and extent of the
16    high floor vacancy or deterioration.
17        (7) Up to 30 points for the extent to which the
18    applicant meets or exceeds the criteria in item (7) of
19    subsection (f) of Section 4 of this Act, with points
20    awarded in accordance with the extent to which the
21    application addresses a plan to improve the State and
22    local government tax base, including a plan for disposal
23    of publicly-owned real property.
24        (8) Up to 50 points for the extent to which the
25    applicant meets or exceeds the criteria in item (8) of
26    subsection (f) of Section 4 of this Act, with points

 

 

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1    awarded in accordance with the existence of significant
2    public infrastructure.
3        (9) Up to 40 points for the extent to which the
4    applicant meets or exceeds the criteria in item (9) of
5    subsection (f) of Section 4 of this Act, with points
6    awarded in accordance with the extent to which educational
7    programs exist for career preparation.
8        (10) (Blank). Up to 40 points for the extent to which
9    the applicant meets or exceeds the criteria in item (10)
10    of subsection (f) of Section 4 of this Act, with points
11    awarded according to the severity of the change in
12    equalized assessed valuation.
13        (11) Up to 40 points for the extent to which the
14    applicant meets or exceeds the criteria in item (11) of
15    subsection (f) of Section 4 of this Act.
16        (12) In awarding points under paragraphs (1) through
17    (9), the Department may adjust the scoring for applicants
18    that are located entirely within a county with a
19    population of less than 300,000 if the Department finds
20    that the designation will help to alleviate the effects of
21    poverty and unemployment within the proposed Enterprise
22    Zone.
23    (b) After assigning a score for each of the individual
24criteria using the point system as described in subsection
25(a), the Department shall then take the sum of the scores for
26each applicant and assign a final score. The Department shall

 

 

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1then submit this information to the Board, as required in
2subsection (c) of Section 5.2, as its recommendation.
3(Source: P.A. 100-838, eff. 8-13-18.)
 
4    (20 ILCS 655/5.1)  (from Ch. 67 1/2, par. 606)
5    Sec. 5.1. Application to Department.
6    (a) A county or municipality which has adopted an
7ordinance designating an area as an enterprise zone shall make
8written application to the Department to have such proposed
9enterprise zone certified by the Department as an Enterprise
10Zone. The application shall include:
11        (i) a certified copy of the ordinance designating the
12    proposed zone;
13        (ii) a map of the proposed enterprise zone, showing
14    existing streets and highways;
15        (iii) an analysis, and any appropriate supporting
16    documents and statistics, demonstrating that the proposed
17    zone area is qualified in accordance with Section 4;
18        (iv) a statement detailing any tax, grant, and other
19    financial incentives or benefits, and any programs, to be
20    provided by the municipality or county to business
21    enterprises within the zone, other than those provided in
22    the designating ordinance, which are not to be provided
23    throughout the municipality or county;
24        (v) a statement setting forth the economic development
25    and planning objectives for the zone;

 

 

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1        (vi) a statement describing the functions, programs,
2    and services to be performed by designated zone
3    organizations within the zone;
4        (vii) an estimate of the economic impact of the zone,
5    considering all of the tax incentives, financial benefits
6    and programs contemplated, upon the revenues of the
7    municipality or county;
8        (viii) a transcript of all public hearings on the
9    zone;
10        (ix) in the case of a joint application, a statement
11    detailing the need for a zone covering portions of more
12    than one municipality or county and a description of the
13    agreement between joint applicants; and
14        (x) such additional information as the Department by
15    regulation may require.
16    (b) The Department may provide for provisional
17certification of substantially complete applications pending
18the receipt of any of the items identified in subsection (a) of
19this Section or any additional information requested by the
20Department.
21(Source: P.A. 82-1019.)
 
22    (20 ILCS 655/5.2)  (from Ch. 67 1/2, par. 607)
23    Sec. 5.2. Department Review of Enterprise Zone
24Applications.
25    (a) All applications which are to be considered and acted

 

 

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1upon by the Department during a calendar year must be received
2by the Department no later than December 31 of the preceding
3calendar year.
4    Any application received after December 31 of any calendar
5year shall be held by the Department for consideration and
6action during the following calendar year.
7    Each enterprise zone application shall include a specific
8definition of the applicant's local labor market area.
9    (a-5) The Department shall, no later than July 31, 2013,
10develop an application process for an enterprise zone
11application. The Department has emergency rulemaking authority
12for the purpose of application development only until 12
13months after the effective date of this amendatory Act of the
1497th General Assembly.
15    (b) Upon receipt of an application from a county or
16municipality the Department shall review the application to
17determine whether the designated area qualifies as an
18enterprise zone under Section 4 of this Act.
19    (c) No later than June 30, the Department shall notify all
20applicant municipalities and counties of the Department's
21determination of the qualification of their respective
22designated enterprise zone areas, and shall send qualifying
23applications, including the applicant's scores for each of the
24items set forth in items (1) through (10) of subsection (a) of
25Section 4.1 and the applicant's final score under that
26Section, to the Board for the Board's consideration, along

 

 

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1with supporting documentation of the basis for the
2Department's decision.
3    (d) If any such designated area is found to be qualified to
4be an enterprise zone by the Department under subsection (c)
5of this Section, the Department shall, no later than July 15,
6send a letter of notification to each member of the General
7Assembly whose legislative district or representative district
8contains all or part of the designated area and publish a
9notice in at least one newspaper of general circulation within
10the proposed zone area to notify the general public of the
11application and their opportunity to comment. Such notice
12shall include a description of the area and a brief summary of
13the application and shall indicate locations where the
14applicant has provided copies of the application for public
15inspection. The notice shall also indicate appropriate
16procedures for the filing of written comments from zone
17residents, business, civic and other organizations and
18property owners to the Department. The Department and the
19Board may consider written comments submitted pursuant to this
20Section or any other information regarding a pending
21enterprise zone application submitted after the deadline for
22enterprise zone application and received prior to the Board's
23decision on all pending applications.
24    (e) (Blank).
25    (f) (Blank).
26    (g) (Blank).

 

 

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1    (h) (Blank).
2(Source: P.A. 97-905, eff. 8-7-12; 98-109, eff. 7-25-13.)
 
3    (20 ILCS 655/5.3)  (from Ch. 67 1/2, par. 608)
4    Sec. 5.3. Certification of Enterprise Zones; effective
5date.
6    (a) Certification of Board-approved designated Enterprise
7Zones shall be made by the Department by certification of the
8designating ordinance. The Department shall promptly issue a
9certificate for each Enterprise Zone upon approval by the
10Board. The certificate shall be signed by the Director of the
11Department, shall make specific reference to the designating
12ordinance, which shall be attached thereto, and shall be filed
13in the office of the Secretary of State. A certified copy of
14the Enterprise Zone Certificate, or a duplicate original
15thereof, shall be recorded in the office of recorder of deeds
16of the county in which the Enterprise Zone lies.
17    (b) An Enterprise Zone certified prior to January 1, 2016
18or on or after January 1, 2017 shall be effective on January 1
19of the first calendar year after Department certification. An
20Enterprise Zone certified on or after January 1, 2016 and on or
21before December 31, 2016 shall be effective on the date of the
22Department's certification. The Department shall transmit a
23copy of the certification to the Department of Revenue, and to
24the designating municipality or county.
25    Upon certification of an Enterprise Zone, the terms and

 

 

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1provisions of the designating ordinance shall be in effect,
2and may not be amended or repealed except in accordance with
3Section 5.4.
4    (c) With the exception of Enterprise Zones scheduled to
5expire before December 31, 2018, an Enterprise Zone designated
6before the effective date of this amendatory Act of the 97th
7General Assembly shall be in effect for 30 calendar years, or
8for a lesser number of years specified in the certified
9designating ordinance. Notwithstanding the foregoing, any
10Enterprise Zone in existence on the effective date of this
11amendatory Act of the 98th General Assembly that has a term of
1220 calendar years may be extended for an additional 10
13calendar years upon amendment of the designating ordinance by
14the designating municipality or county and submission of the
15ordinance to the Department. The amended ordinance must be
16properly recorded in the Office of Recorder of Deeds of each
17county in which the Enterprise Zone lies. Each Enterprise Zone
18in existence on the effective date of this amendatory Act of
19the 97th General Assembly that is scheduled to expire before
20July 1, 2016 may have its termination date extended until July
211, 2016 upon amendment of the designating ordinance by the
22designating municipality or county extending the termination
23date to July 1, 2016 and submission of the ordinance to the
24Department. The amended ordinance must be properly recorded in
25the Office of Recorder of Deeds of each county in which the
26Enterprise Zone lies. An Enterprise Zone designated on or

 

 

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1after the effective date of this amendatory Act of the 97th
2General Assembly shall be in effect for a term of 15 calendar
3years, or for a lesser number of years specified in the
4certified designating ordinance. An enterprise zone designated
5on or after the effective date of this amendatory Act of the
697th General Assembly shall be subject to review by the Board
7after 13 years for an additional 10-year designation beginning
8on the expiration date of the enterprise zone. During the
9review process, the Board shall consider the costs incurred by
10the State and units of local government as a result of tax
11benefits received by the enterprise zone as well as whether
12the Zone has substantially implemented the plans and achieved
13the goals set forth in its original application, including
14satisfaction of the investment and job creation or retention
15information provided by the Applicant with respect to
16paragraph (f) of subsection (1) of Section 4 of the Act.
17Enterprise Zones shall terminate at midnight of December 31 of
18the final calendar year of the certified term, except as
19provided in Section 5.4.
20    (d) Except for Enterprise Zones authorized under
21subsection (f), Zones that become available for designation
22pursuant to Section 10-5.3 of the River Edge Redevelopment
23Zone Act, or those designated pursuant to another statutory
24authority providing for the creation of Enterprise Zones, no
25No more than a total of 97 12 Enterprise Zones may be certified
26by the Department and in existence in any calendar year 1984,

 

 

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1no more than 12 Enterprise Zones may be certified by the
2Department in calendar year 1985, no more than 13 Enterprise
3Zones may be certified by the Department in calendar year
41986, no more than 15 Enterprise Zones may be certified by the
5Department in calendar year 1987, and no more than 20
6Enterprise Zones may be certified by the Department in
7calendar year 1990. In other calendar years, no more than 13
8Enterprise Zones may be certified by the Department. The
9Department may also designate up to 8 additional Enterprise
10Zones outside the regular application cycle if warranted by
11the extreme economic circumstances as determined by the
12Department. The Department may also designate one additional
13Enterprise Zone outside the regular application cycle if an
14aircraft manufacturer agrees to locate an aircraft
15manufacturing facility in the proposed Enterprise Zone.
16Notwithstanding any other provision of this Act, no more than
1789 Enterprise Zones may be certified by the Department for the
1810 calendar years commencing with 1983. The 7 additional
19Enterprise Zones authorized by Public Act 86-15 shall not lie
20within municipalities or unincorporated areas of counties that
21abut or are contiguous to Enterprise Zones certified pursuant
22to this Section prior to June 30, 1989. The 7 additional
23Enterprise Zones (excluding the additional Enterprise Zone
24which may be designated outside the regular application cycle)
25authorized by Public Act 86-1030 shall not lie within
26municipalities or unincorporated areas of counties that abut

 

 

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1or are contiguous to Enterprise Zones certified pursuant to
2this Section prior to February 28, 1990. Beginning in calendar
3year 2004 and until December 31, 2008, one additional
4enterprise zone may be certified by the Department. In any
5calendar year, the Department may not certify more than 3
6Zones located within the same municipality. The Department may
7certify Enterprise Zones in each of the 10 calendar years
8commencing with 1983. The Department may not certify more than
9a total of 18 Enterprise Zones located within the same county
10(whether within municipalities or within unincorporated
11territory) for the 10 calendar years commencing with 1983.
12Thereafter, the Department may not certify any additional
13Enterprise Zones, but may amend and rescind certifications of
14existing Enterprise Zones in accordance with Section 5.4.
15Beginning in calendar year 2021 and for any year in which there
16are at least 4 Zones available for designation, at least 25% of
17Zones available for designation in a given calendar year must
18be awarded to Zones located in counties with populations of
19less than 300,000 unless there are no applicants from such
20locations for that calendar year.
21    (e) Notwithstanding any other provision of law, if (i) the
22county board of any county in which a current military base is
23located, in part or in whole, or in which a military base that
24has been closed within 20 years of the effective date of this
25amendatory Act of 1998 is located, in part or in whole, adopts
26a designating ordinance in accordance with Section 5 of this

 

 

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1Act to designate the military base in that county as an
2enterprise zone and (ii) the property otherwise meets the
3qualifications for an enterprise zone as prescribed in Section
44 of this Act, then the Department may certify the designating
5ordinance or ordinances, as the case may be.
6    (f) Applications for Enterprise Zones that are scheduled
7to expire in 2016, including Enterprise Zones that have been
8extended until 2016 by this amendatory Act of the 97th General
9Assembly, shall be submitted to the Department no later than
10December 31, 2014. At that time, the Zone becomes available
11for either the previously designated area or a different area
12to compete for designation. No preference for designation as a
13Zone will be given to the previously designated area.
14    For Enterprise Zones that are scheduled to expire on or
15after January 1, 2017 and prior to January 1, 2024, an
16application process shall begin 2 years prior to the year in
17which the Zone expires. At that time, the Zone becomes
18available for either the previously designated area or a
19different area to compete for designation. For Enterprise
20Zones that are scheduled to expire on or after January 1, 2024,
21an application process shall begin 5 years prior to the year in
22which the Zone expires. At that time, the Zone becomes
23available for either the previously designated area or a
24different area to compete for designation. No preference for
25designation as a Zone will be given to the previously
26designated area.

 

 

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1    Each Enterprise Zone that reapplies for certification but
2does not receive a new certification shall expire on its
3scheduled termination date.
4(Source: P.A. 98-109, eff. 7-25-13; 99-615, eff. 7-22-16.)
 
5    (20 ILCS 655/5.4)  (from Ch. 67 1/2, par. 609)
6    Sec. 5.4. Amendment and Decertification of Enterprise
7Zones.
8    (a) The terms of a certified enterprise zone designating
9ordinance may be amended to
10        (i) alter the boundaries of the Enterprise Zone, or
11        (ii) expand, limit or repeal tax incentives or
12    benefits provided in the ordinance, or
13        (iii) alter the termination date of the zone, or
14        (iv) make technical corrections in the enterprise zone
15    designating ordinance; but such amendment shall not be
16    effective unless the Department issues an amended
17    certificate for the Enterprise Zone, approving the amended
18    designating ordinance. Upon the adoption of any ordinance
19    amending or repealing the terms of a certified enterprise
20    zone designating ordinance, the municipality or county
21    shall promptly file with the Department an application for
22    approval thereof, containing substantially the same
23    information as required for an application under Section
24    5.1 insofar as material to the proposed changes. The
25    municipality or county must hold a public hearing on the

 

 

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1    proposed changes as specified in Section 5 and, if the
2    amendment is to effectuate the limitation of tax
3    abatements under Section 5.4.1, then the public notice of
4    the hearing shall state that property that is in both the
5    enterprise zone and a redevelopment project area may not
6    receive tax abatements unless within 60 days after the
7    adoption of the amendment to the designating ordinance the
8    municipality has determined that eligibility for tax
9    abatements has been established,
10        (v) include an area within another municipality or
11    county as part of the designated enterprise zone provided
12    the requirements of Section 4 are complied with, or
13        (vi) effectuate the limitation of tax abatements under
14    Section 5.4.1.
15    (b) The Department shall approve or disapprove a proposed
16amendment to a certified enterprise zone within 90 days of its
17receipt of the application from the municipality or county.
18The Department may not approve changes in a Zone which are not
19in conformity with this Act, as now or hereafter amended, or
20with other applicable laws. If the Department issues an
21amended certificate for an Enterprise Zone, the amended
22certificate, together with the amended zone designating
23ordinance, shall be filed, recorded and transmitted as
24provided in Section 5.3.
25    (c) An Enterprise Zone may be decertified by joint action
26of the Department and the designating county or municipality

 

 

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1in accordance with this Section. The designating county or
2municipality shall conduct at least one public hearing within
3the zone prior to its adoption of an ordinance of
4de-designation. The mayor of the designating municipality or
5the chairman of the county board of the designating county
6shall execute a joint decertification agreement with the
7Department. A decertification of an Enterprise Zone shall not
8become effective until at least 6 months after the execution
9of the decertification agreement, which shall be filed in the
10office of the Secretary of State.
11    (d) An Enterprise Zone may be decertified for cause by the
12Department in accordance with this Section. Prior to
13decertification: (1) the Department shall notify the chief
14elected official of the designating county or municipality in
15writing of the specific deficiencies which provide cause for
16decertification; (2) the Department shall place the
17designating county or municipality on probationary status for
18at least 6 months during which time corrective action may be
19achieved in the enterprise zone by the designating county or
20municipality; and, (3) the Department shall conduct at least
21one public hearing within the zone. If such corrective action
22is not achieved during the probationary period, the Department
23shall issue an amended certificate signed by the Director of
24the Department decertifying the enterprise zone, which
25certificate shall be filed in the office of the Secretary of
26State. A certified copy of the amended enterprise zone

 

 

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1certificate, or a duplicate original thereof, shall be
2recorded in the office of recorder of the county in which the
3enterprise zone lies, and shall be provided to the chief
4elected official of the designating county or municipality.
5Decertification of an Enterprise Zone shall not become
6effective until 60 days after the date of filing.
7    (d-1) The Department shall provisionally decertify any
8Enterprise Zone that fails to report any capital investment,
9job creation or retention, or State tax expenditures for 3
10consecutive calendar years. Prior to provisional
11decertification: (1) the Department shall notify the chief
12elected official of the designating county or municipality in
13writing of the specific deficiencies which provide cause for
14decertification; (2) the Department shall place the
15designating county or municipality on probationary status for
16at least 6 months during which time corrective action may be
17achieved in the Enterprise Zone by the designating county or
18municipality; and (3) the Department shall conduct at least
19one public hearing within the Zone. If such corrective action
20is not achieved during the probationary period, the Department
21shall issue an amended certificate signed by the Director of
22the Department provisionally decertifying the Enterprise Zone
23as of the scheduled termination date of the then-current
24designation. If the provisionally-decertified Zone was
25approved and designated after the 102nd General Assembly and
26has been in existence for less than 15 years, such Zone shall

 

 

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1not be eligible for an additional 10-year designation after
2the expiration date of the original Zone set forth in
3subsection (c) of Section 5.3. Further, if such corrective
4action is not achieved during the probationary period provided
5for in this Section, following such probationary period the
6Zone becomes available for a different area to compete for
7designation.
8    (e) In the event of a decertification, provisional
9decertification, or an amendment reducing the length of the
10term or the area of an Enterprise Zone or the adoption of an
11ordinance reducing or eliminating tax benefits in an
12Enterprise Zone, all benefits previously extended within the
13Zone pursuant to this Act or pursuant to any other Illinois law
14providing benefits specifically to or within Enterprise Zones
15shall remain in effect for the original stated term of the
16Enterprise Zone, with respect to business enterprises within
17the Zone on the effective date of such decertification,
18provisional decertification, or amendment, and with respect to
19individuals participating in urban homestead programs under
20this Act.
21    (f) Except as otherwise provided in Section 5.4.1, with
22respect to business enterprises (or expansions thereof) which
23are proposed or under development within a Zone at the time of
24a decertification or an amendment reducing the length of the
25term of the Zone, or excluding from the Zone area the site of
26the proposed enterprise, or an ordinance reducing or

 

 

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1eliminating tax benefits in a Zone, such business enterprise
2shall be entitled to the benefits previously applicable within
3the Zone for the original stated term of the Zone, if the
4business enterprise establishes:
5        (i) that the proposed business enterprise or expansion
6    has been committed to be located within the Zone;
7        (ii) that substantial and binding financial
8    obligations have been made towards the development of such
9    enterprise; and
10        (iii) that such commitments have been made in
11    reasonable reliance on the benefits and programs which
12    were to have been applicable to the enterprise by reason
13    of the Zone, including in the case of a reduction in term
14    of a zone, the original length of the term.
15    In declaratory judgment actions under this paragraph, the
16Department and the designating municipality or county shall be
17necessary parties defendant.
18(Source: P.A. 90-258, eff. 7-30-97.)
 
19    (20 ILCS 655/8.1)
20    Sec. 8.1. Accounting.
21    (a) Any business receiving tax incentives due to its
22location within an Enterprise Zone or its designation as a
23High Impact Business must annually report to the Department of
24Revenue information reasonably required by the Department of
25Revenue to enable the Department to verify and calculate the

 

 

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1total Enterprise Zone or High Impact Business tax benefits for
2property taxes and taxes imposed by the State that are
3received by the business, broken down by incentive category
4and enterprise zone, if applicable. Reports will be due no
5later than May 31 of each year and shall cover the previous
6calendar year. The first report will be for the 2012 calendar
7year and will be due no later than May 31, 2013. Failure to
8report data may result in ineligibility to receive incentives.
9To the extent that a business receiving tax incentives has
10obtained an Enterprise Zone Building Materials Exemption
11Certificate or a High Impact Business Building Materials
12Exemption Certificate, that business is required to report
13those building materials exemption benefits only under
14subsection (a-5) of this Section. No additional reporting for
15those building materials exemption benefits is required under
16this subsection (a). In addition, if the Department determines
17that 80% or more of the businesses receiving tax incentives
18because of their location within a particular Enterprise Zone
19failed to submit the information required under this
20subsection (a) to the Department in any calendar year, then
21the Enterprise Zone may be decertified by the Department. The
22Department, in consultation with the Department of Revenue, is
23authorized to adopt rules governing ineligibility to receive
24exemptions, including the length of ineligibility. Factors to
25be considered in determining whether a business is ineligible
26shall include, but are not limited to, prior compliance with

 

 

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1the reporting requirements, cooperation in discontinuing and
2correcting violations, the extent of the violation, and
3whether the violation was willful or inadvertent.
4    (a-5) Each contractor or other entity that has been issued
5an Enterprise Zone Building Materials Exemption Certificate
6under Section 5k of the Retailers' Occupation Tax Act or a High
7Impact Business Building Materials Exemption Certificate under
8Section 5l of the Retailers' Occupation Tax Act shall annually
9report to the Department of Revenue the total value of the
10Enterprise Zone or High Impact Business building materials
11exemption from State taxes. Reports shall contain information
12reasonably required by the Department of Revenue to enable it
13to verify and calculate the total tax benefits for taxes
14imposed by the State, and shall be broken down by Enterprise
15Zone. Reports are due no later than May 31 of each year and
16shall cover the previous calendar year. The first report will
17be for the 2013 calendar year and will be due no later than May
1831, 2014. Failure to report data may result in revocation of
19the Enterprise Zone Building Materials Exemption Certificate
20or High Impact Business Building Materials Exemption
21Certificate issued to the contractor or other entity.
22    The Department of Revenue is authorized to adopt rules
23governing revocation determinations, including the length of
24revocation. Factors to be considered in revocations shall
25include, but are not limited to, prior compliance with the
26reporting requirements, cooperation in discontinuing and

 

 

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1correcting violations, and whether the certificate was used
2unlawfully during the preceding year.
3    (b) Each person required to file a return under the Gas
4Revenue Tax Act, the Gas Use Tax Act, the Electricity Excise
5Tax Act, or the Telecommunications Excise Tax Act shall file,
6on or before May 31 of each year, a report with the Department
7of Revenue, in the manner and form required by the Department
8of Revenue, containing information reasonably required by the
9Department of Revenue to enable the Department of Revenue to
10calculate the amount of the deduction for taxes imposed by the
11State that is taken under each Act, respectively, due to the
12location of a business in an Enterprise Zone or its
13designation as a High Impact Business. The report shall be
14itemized by business and the business location address.
15    (c) Employers shall report their job creation, retention,
16and capital investment numbers within the zone annually to the
17Department of Revenue no later than May 31 of each calendar
18year. High Impact Businesses shall report their job creation,
19retention, and capital investment numbers to the Department of
20Revenue no later than May 31 of each year. With respect to job
21creation or retention, employers and High Impact Businesses
22shall use best efforts to submit diversity information related
23to the gender and ethnicity of such employees.
24    (d) The Department of Revenue will aggregate and collect
25the tax, job, and capital investment data by Enterprise Zone
26and High Impact Business and report this information,

 

 

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1formatted to exclude company-specific proprietary information,
2to the Department and the Board by August 1, 2013, and by
3August 1 of every calendar year thereafter. The Department
4will include this information in their required reports under
5Section 6 of this Act. The Board shall consider this
6information during the reviews required under subsection (d-5)
7of Section 5.4 of this Act and subsection (c) of Section 5.3 of
8this Act.
9    (e) The Department of Revenue, in its discretion, may
10require that the reports filed under this Section be submitted
11electronically.
12    (f) The Department of Revenue shall have the authority to
13adopt rules as are reasonable and necessary to implement the
14provisions of this Section.
15(Source: P.A. 97-905, eff. 8-7-12; 98-109, eff. 7-25-13.)