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Full Text of HB0034  102nd General Assembly

HB0034ham001 102ND GENERAL ASSEMBLY

Rep. Mark L. Walker

Filed: 3/10/2021

 

 


 

 


 
10200HB0034ham001LRB102 02864 RJF 23107 a

1
AMENDMENT TO HOUSE BILL 34

2    AMENDMENT NO. ______. Amend House Bill 34 by replacing
3everything after the enacting clause with the following:
 
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, 5.5, 8.1,
612-9, and 13 as follows:
 
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.

 

 

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1    (d) "Designated Zone Organization" means an association or
2entity: (1) the members of which are substantially all
3residents of the Enterprise Zone; (2) the board of directors
4of which is elected by the members of the organization; (3)
5which satisfies the criteria set forth in Section 501(c) (3)
6or 501(c) (4) of the Internal Revenue Code; and (4) which
7exists primarily for the purpose of performing within such
8area or zone for the benefit of the residents and businesses
9thereof any of the functions set forth in Section 8 of this
10Act.
11    (e) "Agency" means each officer, board, commission and
12agency created by the Constitution, in the executive branch of
13State government, other than the State Board of Elections;
14each officer, department, board, commission, agency,
15institution, authority, university, body politic and corporate
16of the State; and each administrative unit or corporate
17outgrowth of the State government which is created by or
18pursuant to statute, other than units of local government and
19their officers, school districts and boards of election
20commissioners; each administrative unit or corporate outgrowth
21of the above and as may be created by executive order of the
22Governor. No entity shall be considered an "agency" for the
23purposes of this Act unless authorized by law to make rules or
24regulations.
25    (f) "Rule" means each agency statement of general
26applicability that implements, applies, interprets or

 

 

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1prescribes law or policy, but does not include (i) statements
2concerning only the internal management of an agency and not
3affecting private rights or procedures available to persons or
4entities outside the agency, (ii) intra-agency memoranda, or
5(iii) the prescription of standardized forms.
6    (g) "Board" means the Enterprise Zone Board created in
7Section 5.2.1.
8    (h) "Local labor market area" means an economically
9integrated area within which individuals can reside and find
10employment within a reasonable distance or can readily change
11jobs without changing their place of residence.
12    (i) "Full-time equivalent job" means a job in which the
13new employee works for the recipient or for a corporation
14under contract to the recipient at a rate of at least 35 hours
15per week. A recipient who employs labor or services at a
16specific site or facility under contract with another may
17declare one full-time, permanent job for every 1,820 man hours
18worked per year under that contract. Vacations, paid holidays,
19and sick time are included in this computation. Overtime is
20not considered a part of regular hours.
21    (j) "Full-time retained job" means any employee defined as
22having a full-time or full-time equivalent job preserved at a
23specific facility or site, the continuance of which is
24threatened by a specific and demonstrable threat, which shall
25be specified in the application for development assistance. A
26recipient who employs labor or services at a specific site or

 

 

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1facility under contract with another may declare one retained
2employee per year for every 1,750 man hours worked per year
3under that contract, even if different individuals perform
4on-site labor or services.
5(Source: P.A. 97-905, eff. 8-7-12; 98-463, eff. 8-16-13.)
 
6    (20 ILCS 655/4)  (from Ch. 67 1/2, par. 604)
7    Sec. 4. Qualifications for enterprise zones.
8    (1) An area is qualified to become an enterprise zone
9which:
10        (a) is a contiguous area, provided that a zone area
11    may exclude wholly surrounded territory within its
12    boundaries;
13        (b) comprises a minimum of one-half square mile and
14    not more than 12 square miles, or 15 square miles if the
15    zone is located within the jurisdiction of 4 or more
16    counties or municipalities, in total area, exclusive of
17    lakes and waterways; however, in such cases where the
18    enterprise zone is a joint effort of three or more units of
19    government, or two or more units of government if situated
20    in a township which is divided by a municipality of
21    1,000,000 or more inhabitants, and where the certification
22    has been in effect at least one year, the total area shall
23    comprise a minimum of one-half square mile and not more
24    than thirteen square miles in total area exclusive of
25    lakes and waterways;

 

 

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1        (c) (blank);
2        (d) (blank);
3        (e) is (1) entirely within a municipality or (2)
4    entirely within the unincorporated areas of a county,
5    except where reasonable need is established for such zone
6    to cover portions of more than one municipality or county
7    or (3) both comprises (i) all or part of a municipality and
8    (ii) an unincorporated area of a county; and
9        (f) meets 3 or more of the following criteria:
10            (1) all or part of the local labor market area has
11        had an annual average unemployment rate of at least
12        120% of the State's annual average unemployment rate
13        for the most recent calendar year or the most recent
14        fiscal year as reported by the Department of
15        Employment Security;
16            (2) designation will result in the development of
17        substantial employment opportunities by creating or
18        retaining a minimum aggregate of 1,000 full-time
19        equivalent jobs due to an aggregate investment of
20        $100,000,000 or more, and will help alleviate the
21        effects of poverty and unemployment within the local
22        labor market area;
23            (3) all or part of the local labor market area has
24        a poverty rate of at least 20% according to American
25        Community Survey; 35% or more of families with
26        children in the area are living below 130% of the

 

 

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1        poverty line, according to the latest American
2        Community Survey; the latest federal decennial census,
3        50% or more of children in the local labor market area
4        participate in the federal free lunch program
5        according to reported statistics from the State Board
6        of Education, or 20% or more households in the local
7        labor market area receive food stamps or assistance
8        under Supplemental Nutrition Assistance Program
9        ("SNAP") according to the latest American Community
10        Survey federal decennial census;
11            (4) an abandoned coal mine, a brownfield (as
12        defined in Section 58.2 of the Environmental
13        Protection Act), or an inactive nuclear-powered
14        electrical generation facility where spent nuclear
15        fuel is stored on-site is located in the proposed zone
16        area, or all or a portion of the proposed zone was
17        declared a federal disaster area in the 3 years
18        preceding the date of application;
19            (5) the local labor market area contains a
20        presence of large employers that have downsized over
21        the years, the labor market area has experienced plant
22        closures in the 5 years prior to the date of
23        application affecting more than 50 workers, or the
24        local labor market area has experienced State or
25        federal facility closures in the 5 years prior to the
26        date of application affecting more than 50 workers;

 

 

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

 

 

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1        equal to or less than 50% of the State average change
2        in equalized assessed valuation for industrial and/or
3        commercial properties, as applicable, for the same
4        period of time; or
5            (11) the applicant demonstrates a substantial plan
6        for using the designation to encourage: (i)
7        participation by businesses owned by minorities,
8        women, and persons with disabilities, as those terms
9        are defined in the Business Enterprise for Minorities,
10        Women, and Persons with Disabilities Act; and (ii) the
11        hiring of minorities, women, and persons with
12        disabilities.
13    As provided in Section 10-5.3 of the River Edge
14Redevelopment Zone Act, upon the expiration of the term of
15each River Edge Redevelopment Zone in existence on August 7,
162012 (the effective date of Public Act 97-905), that River
17Edge Redevelopment Zone will become available for its previous
18designee or a new applicant to compete for designation as an
19enterprise zone. No preference for designation will be given
20to the previous designee of the zone.
21    (2) Any criteria established by the Department or by law
22which utilize the rate of unemployment for a particular area
23shall provide that all persons who are not presently employed
24and have exhausted all unemployment benefits shall be
25considered unemployed, whether or not such persons are
26actively seeking employment.

 

 

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1(Source: P.A. 100-838, eff. 8-13-18; 100-1149, eff. 12-14-18;
2101-81, eff. 7-12-19.)
 
3    (20 ILCS 655/4.1)
4    Sec. 4.1. Department recommendations.
5    (a) For all applications that qualify under Section 4 of
6this Act, the Department shall issue recommendations by
7assigning a score to each applicant. The scores will be
8determined by the Department, based on the extent to which an
9applicant meets the criteria points under subsection (f) of
10Section 4 of this Act. Scores will be determined using the
11following scoring system:
12        (1) Up to 50 points for the extent to which the
13    applicant meets or exceeds the criteria in item (1) of
14    subsection (f) of Section 4 of this Act, with points
15    awarded according to the severity of the unemployment.
16        (2) Up to 50 points for the extent to which the
17    applicant meets or exceeds the criteria in item (2) of
18    subsection (f) of Section 4 of this Act, with points
19    awarded in accordance with the number of jobs created and
20    the aggregate amount of investment promised. The
21    Department may award partial points on a pro rata basis
22    under this paragraph (2) if the applicant demonstrates
23    specific job creation and investment below the thresholds
24    set forth in paragraph (2) of subsection (f) of Section 4.
25        (3) Up to 40 points for the extent to which the

 

 

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

 

 

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1    local government tax base, including a plan for disposal
2    of publicly-owned real property.
3        (8) Up to 50 points for the extent to which the
4    applicant meets or exceeds the criteria in item (8) of
5    subsection (f) of Section 4 of this Act, with points
6    awarded in accordance with the existence of significant
7    public infrastructure.
8        (9) Up to 40 points for the extent to which the
9    applicant meets or exceeds the criteria in item (9) of
10    subsection (f) of Section 4 of this Act, with points
11    awarded in accordance with the extent to which educational
12    programs exist for career preparation.
13        (10) (Blank). Up to 40 points for the extent to which
14    the applicant meets or exceeds the criteria in item (10)
15    of subsection (f) of Section 4 of this Act, with points
16    awarded according to the severity of the change in
17    equalized assessed valuation.
18        (11) Up to 40 points for the extent to which the
19    applicant meets or exceeds the criteria in item (11) of
20    subsection (f) of Section 4 of this Act.
21        (12) In awarding points under paragraphs (1) through
22    (9), the Department may adjust the scoring for applicants
23    that are located entirely within a county with a
24    population of less than 300,000 if the Department finds
25    that the designation will help to alleviate the effects of
26    poverty and unemployment within the proposed Enterprise

 

 

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1    Zone.
2    (b) After assigning a score for each of the individual
3criteria using the point system as described in subsection
4(a), the Department shall then take the sum of the scores for
5each applicant and assign a final score. The Department shall
6then submit this information to the Board, as required in
7subsection (c) of Section 5.2, as its recommendation.
8(Source: P.A. 100-838, eff. 8-13-18.)
 
9    (20 ILCS 655/5.1)  (from Ch. 67 1/2, par. 606)
10    Sec. 5.1. Application to Department.
11    (a) A county or municipality which has adopted an
12ordinance designating an area as an enterprise zone shall make
13written application to the Department to have such proposed
14enterprise zone certified by the Department as an Enterprise
15Zone. The application shall include:
16        (i) a certified copy of the ordinance designating the
17    proposed zone;
18        (ii) a map of the proposed enterprise zone, showing
19    existing streets and highways;
20        (iii) an analysis, and any appropriate supporting
21    documents and statistics, demonstrating that the proposed
22    zone area is qualified in accordance with Section 4;
23        (iv) a statement detailing any tax, grant, and other
24    financial incentives or benefits, and any programs, to be
25    provided by the municipality or county to business

 

 

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1    enterprises within the zone, other than those provided in
2    the designating ordinance, which are not to be provided
3    throughout the municipality or county;
4        (v) a statement setting forth the economic development
5    and planning objectives for the zone;
6        (vi) a statement describing the functions, programs,
7    and services to be performed by designated zone
8    organizations within the zone;
9        (vii) an estimate of the economic impact of the zone,
10    considering all of the tax incentives, financial benefits
11    and programs contemplated, upon the revenues of the
12    municipality or county;
13        (viii) a transcript of all public hearings on the
14    zone;
15        (ix) in the case of a joint application, a statement
16    detailing the need for a zone covering portions of more
17    than one municipality or county and a description of the
18    agreement between joint applicants; and
19        (x) such additional information as the Department by
20    regulation may require.
21    (b) The Department may provide for provisional
22certification of substantially complete applications pending
23the receipt of any of the items identified in subsection (a) of
24this Section or any additional information requested by the
25Department.
26(Source: P.A. 82-1019.)
 

 

 

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1    (20 ILCS 655/5.2)  (from Ch. 67 1/2, par. 607)
2    Sec. 5.2. Department Review of Enterprise Zone
3Applications.
4    (a) All applications which are to be considered and acted
5upon by the Department during a calendar year must be received
6by the Department no later than December 31 of the preceding
7calendar year.
8    Any application received after December 31 of any calendar
9year shall be held by the Department for consideration and
10action during the following calendar year.
11    Each enterprise zone application shall include a specific
12definition of the applicant's local labor market area.
13    (a-5) The Department shall, no later than July 31, 2013,
14develop an application process for an enterprise zone
15application. The Department has emergency rulemaking authority
16for the purpose of application development only until 12
17months after the effective date of this amendatory Act of the
1897th General Assembly.
19    (b) Upon receipt of an application from a county or
20municipality the Department shall review the application to
21determine whether the designated area qualifies as an
22enterprise zone under Section 4 of this Act.
23    (c) No later than June 30, the Department shall notify all
24applicant municipalities and counties of the Department's
25determination of the qualification of their respective

 

 

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1designated enterprise zone areas, and shall send qualifying
2applications, including the applicant's scores for each of the
3items set forth in items (1) through (10) of subsection (a) of
4Section 4.1 and the applicant's final score under that
5Section, to the Board for the Board's consideration, along
6with supporting documentation of the basis for the
7Department's decision.
8    (d) If any such designated area is found to be qualified to
9be an enterprise zone by the Department under subsection (c)
10of this Section, the Department shall, no later than July 15,
11send a letter of notification to each member of the General
12Assembly whose legislative district or representative district
13contains all or part of the designated area and publish a
14notice in at least one newspaper of general circulation within
15the proposed zone area to notify the general public of the
16application and their opportunity to comment. Such notice
17shall include a description of the area and a brief summary of
18the application and shall indicate locations where the
19applicant has provided copies of the application for public
20inspection. The notice shall also indicate appropriate
21procedures for the filing of written comments from zone
22residents, business, civic and other organizations and
23property owners to the Department. The Department and the
24Board may consider written comments submitted pursuant to this
25Section or any other information regarding a pending
26enterprise zone application submitted after the deadline for

 

 

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

 

 

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1before December 31, 2016 shall be effective on the date of the
2Department's certification. The Department shall transmit a
3copy of the certification to the Department of Revenue, and to
4the designating municipality or county.
5    Upon certification of an Enterprise Zone, the terms and
6provisions of the designating ordinance shall be in effect,
7and may not be amended or repealed except in accordance with
8Section 5.4.
9    (c) With the exception of Enterprise Zones scheduled to
10expire before December 31, 2018, an Enterprise Zone designated
11before the effective date of this amendatory Act of the 97th
12General Assembly shall be in effect for 30 calendar years, or
13for a lesser number of years specified in the certified
14designating ordinance. Notwithstanding the foregoing, any
15Enterprise Zone in existence on the effective date of this
16amendatory Act of the 98th General Assembly that has a term of
1720 calendar years may be extended for an additional 10
18calendar years upon amendment of the designating ordinance by
19the designating municipality or county and submission of the
20ordinance to the Department. The amended ordinance must be
21properly recorded in the Office of Recorder of Deeds of each
22county in which the Enterprise Zone lies. Each Enterprise Zone
23in existence on the effective date of this amendatory Act of
24the 97th General Assembly that is scheduled to expire before
25July 1, 2016 may have its termination date extended until July
261, 2016 upon amendment of the designating ordinance by the

 

 

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1designating municipality or county extending the termination
2date to July 1, 2016 and submission of the ordinance to the
3Department. The amended ordinance must be properly recorded in
4the Office of Recorder of Deeds of each county in which the
5Enterprise Zone lies. An Enterprise Zone designated on or
6after the effective date of this amendatory Act of the 97th
7General Assembly shall be in effect for a term of 15 calendar
8years, or for a lesser number of years specified in the
9certified designating ordinance. An enterprise zone designated
10on or after the effective date of this amendatory Act of the
1197th General Assembly shall be subject to review by the Board
12after 13 years for an additional 10-year designation beginning
13on the expiration date of the enterprise zone. During the
14review process, the Board shall consider the costs incurred by
15the State and units of local government as a result of tax
16benefits received by the enterprise zone as well as whether
17the Zone has substantially implemented the plans and achieved
18the goals set forth in its original application, including
19satisfaction of the investment and job creation or retention
20information provided by the Applicant with respect to
21paragraph (f) of subsection (1) of Section 4 of the Act.
22Enterprise Zones shall terminate at midnight of December 31 of
23the final calendar year of the certified term, except as
24provided in Section 5.4.
25    (d) Except for Enterprise Zones authorized under
26subsection (f), Zones that become available for designation

 

 

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1pursuant to Section 10-5.3 of the River Edge Redevelopment
2Zone Act, or those designated pursuant to another statutory
3authority providing for the creation of Enterprise Zones, no
4No more than a total of 97 12 Enterprise Zones may be certified
5by the Department and in existence in any calendar year 1984,
6no more than 12 Enterprise Zones may be certified by the
7Department in calendar year 1985, no more than 13 Enterprise
8Zones may be certified by the Department in calendar year
91986, no more than 15 Enterprise Zones may be certified by the
10Department in calendar year 1987, and no more than 20
11Enterprise Zones may be certified by the Department in
12calendar year 1990. In other calendar years, no more than 13
13Enterprise Zones may be certified by the Department. The
14Department may also designate up to 8 additional Enterprise
15Zones outside the regular application cycle if warranted by
16the extreme economic circumstances as determined by the
17Department. The Department may also designate one additional
18Enterprise Zone outside the regular application cycle if an
19aircraft manufacturer agrees to locate an aircraft
20manufacturing facility in the proposed Enterprise Zone.
21Notwithstanding any other provision of this Act, no more than
2289 Enterprise Zones may be certified by the Department for the
2310 calendar years commencing with 1983. The 7 additional
24Enterprise Zones authorized by Public Act 86-15 shall not lie
25within municipalities or unincorporated areas of counties that
26abut or are contiguous to Enterprise Zones certified pursuant

 

 

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1to this Section prior to June 30, 1989. The 7 additional
2Enterprise Zones (excluding the additional Enterprise Zone
3which may be designated outside the regular application cycle)
4authorized by Public Act 86-1030 shall not lie within
5municipalities or unincorporated areas of counties that abut
6or are contiguous to Enterprise Zones certified pursuant to
7this Section prior to February 28, 1990. Beginning in calendar
8year 2004 and until December 31, 2008, one additional
9enterprise zone may be certified by the Department. In any
10calendar year, the Department may not certify more than 3
11Zones located within the same municipality. The Department may
12certify Enterprise Zones in each of the 10 calendar years
13commencing with 1983. The Department may not certify more than
14a total of 18 Enterprise Zones located within the same county
15(whether within municipalities or within unincorporated
16territory) for the 10 calendar years commencing with 1983.
17Thereafter, the Department may not certify any additional
18Enterprise Zones, but may amend and rescind certifications of
19existing Enterprise Zones in accordance with Section 5.4.
20Beginning in calendar year 2021 and for any year in which there
21are at least 4 Zones available for designation, at least 25% of
22Zones available for designation in a given calendar year must
23be awarded to Zones located in counties with populations of
24less than 300,000 unless there are no applicants from such
25locations for that calendar year.
26    (e) Notwithstanding any other provision of law, if (i) the

 

 

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1county board of any county in which a current military base is
2located, in part or in whole, or in which a military base that
3has been closed within 20 years of the effective date of this
4amendatory Act of 1998 is located, in part or in whole, adopts
5a designating ordinance in accordance with Section 5 of this
6Act to designate the military base in that county as an
7enterprise zone and (ii) the property otherwise meets the
8qualifications for an enterprise zone as prescribed in Section
94 of this Act, then the Department may certify the designating
10ordinance or ordinances, as the case may be.
11    (f) Applications for Enterprise Zones that are scheduled
12to expire in 2016, including Enterprise Zones that have been
13extended until 2016 by this amendatory Act of the 97th General
14Assembly, shall be submitted to the Department no later than
15December 31, 2014. At that time, the Zone becomes available
16for either the previously designated area or a different area
17to compete for designation. No preference for designation as a
18Zone will be given to the previously designated area.
19    For Enterprise Zones that are scheduled to expire on or
20after January 1, 2017 and prior to January 1, 2024, an
21application process shall begin 2 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. For Enterprise
25Zones that are scheduled to expire on or after January 1, 2024,
26an application process shall begin 5 years prior to the year in

 

 

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1which the Zone expires. At that time, the Zone becomes
2available for either the previously designated area or a
3different area to compete for designation. No preference for
4designation as a Zone will be given to the previously
5designated area.
6    Each Enterprise Zone that reapplies for certification but
7does not receive a new certification shall expire on its
8scheduled termination date.
9(Source: P.A. 98-109, eff. 7-25-13; 99-615, eff. 7-22-16.)
 
10    (20 ILCS 655/5.4)  (from Ch. 67 1/2, par. 609)
11    Sec. 5.4. Amendment and Decertification of Enterprise
12Zones.
13    (a) The terms of a certified enterprise zone designating
14ordinance may be amended to
15        (i) alter the boundaries of the Enterprise Zone, or
16        (ii) expand, limit or repeal tax incentives or
17    benefits provided in the ordinance, or
18        (iii) alter the termination date of the zone, or
19        (iv) make technical corrections in the enterprise zone
20    designating ordinance; but such amendment shall not be
21    effective unless the Department issues an amended
22    certificate for the Enterprise Zone, approving the amended
23    designating ordinance. Upon the adoption of any ordinance
24    amending or repealing the terms of a certified enterprise
25    zone designating ordinance, the municipality or county

 

 

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1    shall promptly file with the Department an application for
2    approval thereof, containing substantially the same
3    information as required for an application under Section
4    5.1 insofar as material to the proposed changes. The
5    municipality or county must hold a public hearing on the
6    proposed changes as specified in Section 5 and, if the
7    amendment is to effectuate the limitation of tax
8    abatements under Section 5.4.1, then the public notice of
9    the hearing shall state that property that is in both the
10    enterprise zone and a redevelopment project area may not
11    receive tax abatements unless within 60 days after the
12    adoption of the amendment to the designating ordinance the
13    municipality has determined that eligibility for tax
14    abatements has been established,
15        (v) include an area within another municipality or
16    county as part of the designated enterprise zone provided
17    the requirements of Section 4 are complied with, or
18        (vi) effectuate the limitation of tax abatements under
19    Section 5.4.1.
20    (b) The Department shall approve or disapprove a proposed
21amendment to a certified enterprise zone within 90 days of its
22receipt of the application from the municipality or county.
23The Department may not approve changes in a Zone which are not
24in conformity with this Act, as now or hereafter amended, or
25with other applicable laws. If the Department issues an
26amended certificate for an Enterprise Zone, the amended

 

 

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1certificate, together with the amended zone designating
2ordinance, shall be filed, recorded and transmitted as
3provided in Section 5.3.
4    (c) An Enterprise Zone may be decertified by joint action
5of the Department and the designating county or municipality
6in accordance with this Section. The designating county or
7municipality shall conduct at least one public hearing within
8the zone prior to its adoption of an ordinance of
9de-designation. The mayor of the designating municipality or
10the chairman of the county board of the designating county
11shall execute a joint decertification agreement with the
12Department. A decertification of an Enterprise Zone shall not
13become effective until at least 6 months after the execution
14of the decertification agreement, which shall be filed in the
15office of the Secretary of State.
16    (d) An Enterprise Zone may be decertified for cause by the
17Department in accordance with this Section. Prior to
18decertification: (1) the Department shall notify the chief
19elected official of the designating county or municipality in
20writing of the specific deficiencies which provide cause for
21decertification; (2) the Department shall place the
22designating county or municipality on probationary status for
23at least 6 months during which time corrective action may be
24achieved in the enterprise zone by the designating county or
25municipality; and, (3) the Department shall conduct at least
26one public hearing within the zone. If such corrective action

 

 

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

 

 

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1signed by the Director of the Department provisionally
2decertifying the Enterprise Zone as of the scheduled
3termination date of the then-current designation. If the
4provisionally-decertified Zone was approved and designated
5after the 102nd General Assembly and has been in existence for
6less than 15 years, such Zone shall not be eligible for an
7additional 10-year designation after the expiration date of
8the original Zone set forth in subsection (c) of Section 5.3.
9Further, if such corrective action is not achieved during the
10probationary period provided for in this Section, following
11such probationary period the Zone becomes available for a
12different area to compete for designation.
13    (e) In the event of a decertification, provisional
14decertification, or an amendment reducing the length of the
15term or the area of an Enterprise Zone or the adoption of an
16ordinance reducing or eliminating tax benefits in an
17Enterprise Zone, all benefits previously extended within the
18Zone pursuant to this Act or pursuant to any other Illinois law
19providing benefits specifically to or within Enterprise Zones
20shall remain in effect for the original stated term of the
21Enterprise Zone, with respect to business enterprises within
22the Zone on the effective date of such decertification,
23provisional decertification, or amendment, and with respect to
24individuals participating in urban homestead programs under
25this Act.
26    (f) Except as otherwise provided in Section 5.4.1, with

 

 

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1respect to business enterprises (or expansions thereof) which
2are proposed or under development within a Zone at the time of
3a decertification or an amendment reducing the length of the
4term of the Zone, or excluding from the Zone area the site of
5the proposed enterprise, or an ordinance reducing or
6eliminating tax benefits in a Zone, such business enterprise
7shall be entitled to the benefits previously applicable within
8the Zone for the original stated term of the Zone, if the
9business enterprise establishes:
10        (i) that the proposed business enterprise or expansion
11    has been committed to be located within the Zone;
12        (ii) that substantial and binding financial
13    obligations have been made towards the development of such
14    enterprise; and
15        (iii) that such commitments have been made in
16    reasonable reliance on the benefits and programs which
17    were to have been applicable to the enterprise by reason
18    of the Zone, including in the case of a reduction in term
19    of a zone, the original length of the term.
20    In declaratory judgment actions under this paragraph, the
21Department and the designating municipality or county shall be
22necessary parties defendant.
23(Source: P.A. 90-258, eff. 7-30-97.)
 
24    (20 ILCS 655/5.5)   (from Ch. 67 1/2, par. 609.1)
25    Sec. 5.5. High Impact Business.

 

 

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1    (a) In order to respond to unique opportunities to assist
2in the encouragement, development, growth, and expansion of
3the private sector through large scale investment and
4development projects, the Department is authorized to receive
5and approve applications for the designation of "High Impact
6Businesses" in Illinois subject to the following conditions:
7        (1) such applications may be submitted at any time
8    during the year;
9        (2) such business is not located, at the time of
10    designation, in an enterprise zone designated pursuant to
11    this Act;
12        (3) the business intends to do one or more of the
13    following:
14            (A) the business intends to make a minimum
15        investment of $12,000,000 which will be placed in
16        service in qualified property and intends to create
17        500 full-time equivalent jobs at a designated location
18        in Illinois or intends to make a minimum investment of
19        $30,000,000 which will be placed in service in
20        qualified property and intends to retain 1,500
21        full-time retained jobs at a designated location in
22        Illinois. The business must certify in writing that
23        the investments would not be placed in service in
24        qualified property and the job creation or job
25        retention would not occur without the tax credits and
26        exemptions set forth in subsection (b) of this

 

 

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1        Section. The terms "placed in service" and "qualified
2        property" have the same meanings as described in
3        subsection (h) of Section 201 of the Illinois Income
4        Tax Act; or
5            (B) the business intends to establish a new
6        electric generating facility at a designated location
7        in Illinois. "New electric generating facility", for
8        purposes of this Section, means a newly-constructed
9        electric generation plant or a newly-constructed
10        generation capacity expansion at an existing electric
11        generation plant, including the transmission lines and
12        associated equipment that transfers electricity from
13        points of supply to points of delivery, and for which
14        such new foundation construction commenced not sooner
15        than July 1, 2001. Such facility shall be designed to
16        provide baseload electric generation and shall operate
17        on a continuous basis throughout the year; and (i)
18        shall have an aggregate rated generating capacity of
19        at least 1,000 megawatts for all new units at one site
20        if it uses natural gas as its primary fuel and
21        foundation construction of the facility is commenced
22        on or before December 31, 2004, or shall have an
23        aggregate rated generating capacity of at least 400
24        megawatts for all new units at one site if it uses coal
25        or gases derived from coal as its primary fuel and
26        shall support the creation of at least 150 new

 

 

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1        Illinois coal mining jobs, or (ii) shall be funded
2        through a federal Department of Energy grant before
3        December 31, 2010 and shall support the creation of
4        Illinois coal-mining jobs, or (iii) shall use coal
5        gasification or integrated gasification-combined cycle
6        units that generate electricity or chemicals, or both,
7        and shall support the creation of Illinois coal-mining
8        jobs. The business must certify in writing that the
9        investments necessary to establish a new electric
10        generating facility would not be placed in service and
11        the job creation in the case of a coal-fueled plant
12        would not occur without the tax credits and exemptions
13        set forth in subsection (b-5) of this Section. The
14        term "placed in service" has the same meaning as
15        described in subsection (h) of Section 201 of the
16        Illinois Income Tax Act; or
17            (B-5) the business intends to establish a new
18        gasification facility at a designated location in
19        Illinois. As used in this Section, "new gasification
20        facility" means a newly constructed coal gasification
21        facility that generates chemical feedstocks or
22        transportation fuels derived from coal (which may
23        include, but are not limited to, methane, methanol,
24        and nitrogen fertilizer), that supports the creation
25        or retention of Illinois coal-mining jobs, and that
26        qualifies for financial assistance from the Department

 

 

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1        before December 31, 2010. A new gasification facility
2        does not include a pilot project located within
3        Jefferson County or within a county adjacent to
4        Jefferson County for synthetic natural gas from coal;
5        or
6            (C) the business intends to establish production
7        operations at a new coal mine, re-establish production
8        operations at a closed coal mine, or expand production
9        at an existing coal mine at a designated location in
10        Illinois not sooner than July 1, 2001; provided that
11        the production operations result in the creation of
12        150 new Illinois coal mining jobs as described in
13        subdivision (a)(3)(B) of this Section, and further
14        provided that the coal extracted from such mine is
15        utilized as the predominant source for a new electric
16        generating facility. The business must certify in
17        writing that the investments necessary to establish a
18        new, expanded, or reopened coal mine would not be
19        placed in service and the job creation would not occur
20        without the tax credits and exemptions set forth in
21        subsection (b-5) of this Section. The term "placed in
22        service" has the same meaning as described in
23        subsection (h) of Section 201 of the Illinois Income
24        Tax Act; or
25            (D) the business intends to construct new
26        transmission facilities or upgrade existing

 

 

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1        transmission facilities at designated locations in
2        Illinois, for which construction commenced not sooner
3        than July 1, 2001. For the purposes of this Section,
4        "transmission facilities" means transmission lines
5        with a voltage rating of 115 kilovolts or above,
6        including associated equipment, that transfer
7        electricity from points of supply to points of
8        delivery and that transmit a majority of the
9        electricity generated by a new electric generating
10        facility designated as a High Impact Business in
11        accordance with this Section. The business must
12        certify in writing that the investments necessary to
13        construct new transmission facilities or upgrade
14        existing transmission facilities would not be placed
15        in service without the tax credits and exemptions set
16        forth in subsection (b-5) of this Section. The term
17        "placed in service" has the same meaning as described
18        in subsection (h) of Section 201 of the Illinois
19        Income Tax Act; or
20            (E) the business intends to establish a new wind
21        power facility at a designated location in Illinois.
22        For purposes of this Section, "new wind power
23        facility" means a newly constructed electric
24        generation facility, or a newly constructed expansion
25        of an existing electric generation facility, placed in
26        service on or after July 1, 2009, that generates

 

 

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1        electricity using wind energy devices, and such
2        facility shall be deemed to include all associated
3        transmission lines, substations, and other equipment
4        related to the generation of electricity from wind
5        energy devices. For purposes of this Section, "wind
6        energy device" means any device, with a nameplate
7        capacity of at least 0.5 megawatts, that is used in the
8        process of converting kinetic energy from the wind to
9        generate electricity; or
10            (F) the business commits to (i) make a minimum
11        investment of $500,000,000, which will be placed in
12        service in a qualified property, (ii) create 125
13        full-time equivalent jobs at a designated location in
14        Illinois, (iii) establish a fertilizer plant at a
15        designated location in Illinois that complies with the
16        set-back standards as described in Table 1: Initial
17        Isolation and Protective Action Distances in the 2012
18        Emergency Response Guidebook published by the United
19        States Department of Transportation, (iv) pay a
20        prevailing wage for employees at that location who are
21        engaged in construction activities, and (v) secure an
22        appropriate level of general liability insurance to
23        protect against catastrophic failure of the fertilizer
24        plant or any of its constituent systems; in addition,
25        the business must agree to enter into a construction
26        project labor agreement including provisions

 

 

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1        establishing wages, benefits, and other compensation
2        for employees performing work under the project labor
3        agreement at that location; for the purposes of this
4        Section, "fertilizer plant" means a newly constructed
5        or upgraded plant utilizing gas used in the production
6        of anhydrous ammonia and downstream nitrogen
7        fertilizer products for resale; for the purposes of
8        this Section, "prevailing wage" means the hourly cash
9        wages plus fringe benefits for training and
10        apprenticeship programs approved by the U.S.
11        Department of Labor, Bureau of Apprenticeship and
12        Training, health and welfare, insurance, vacations and
13        pensions paid generally, in the locality in which the
14        work is being performed, to employees engaged in work
15        of a similar character on public works; this paragraph
16        (F) applies only to businesses that submit an
17        application to the Department within 60 days after
18        July 25, 2013 (the effective date of Public Act
19        98-109) this amendatory Act of the 98th General
20        Assembly; and
21        (4) no later than 90 days after an application is
22    submitted, the Department shall notify the applicant of
23    the Department's determination of the qualification of the
24    proposed High Impact Business under this Section.
25    (b) Businesses designated as High Impact Businesses
26pursuant to subdivision (a)(3)(A) of this Section shall

 

 

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1qualify for the credits and exemptions described in the
2following Acts: Section 9-222 and Section 9-222.1A of the
3Public Utilities Act, subsection (h) of Section 201 of the
4Illinois Income Tax Act, and Section 1d of the Retailers'
5Occupation Tax Act; provided that these credits and exemptions
6described in these Acts shall not be authorized until the
7minimum investments set forth in subdivision (a)(3)(A) of this
8Section have been placed in service in qualified properties
9and, in the case of the exemptions described in the Public
10Utilities Act and Section 1d of the Retailers' Occupation Tax
11Act, the minimum full-time equivalent jobs or full-time
12retained jobs set forth in subdivision (a)(3)(A) of this
13Section have been created or retained. Businesses designated
14as High Impact Businesses under this Section shall also
15qualify for the exemption described in Section 5l of the
16Retailers' Occupation Tax Act. The credit provided in
17subsection (h) of Section 201 of the Illinois Income Tax Act
18shall be applicable to investments in qualified property as
19set forth in subdivision (a)(3)(A) of this Section.
20    (b-5) Businesses designated as High Impact Businesses
21pursuant to subdivisions (a)(3)(B), (a)(3)(B-5), (a)(3)(C),
22and (a)(3)(D) of this Section shall qualify for the credits
23and exemptions described in the following Acts: Section 51 of
24the Retailers' Occupation Tax Act, Section 9-222 and Section
259-222.1A of the Public Utilities Act, and subsection (h) of
26Section 201 of the Illinois Income Tax Act; however, the

 

 

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1credits and exemptions authorized under Section 9-222 and
2Section 9-222.1A of the Public Utilities Act, and subsection
3(h) of Section 201 of the Illinois Income Tax Act shall not be
4authorized until the new electric generating facility, the new
5gasification facility, the new transmission facility, or the
6new, expanded, or reopened coal mine is operational, except
7that a new electric generating facility whose primary fuel
8source is natural gas is eligible only for the exemption under
9Section 5l of the Retailers' Occupation Tax Act.
10    (b-6) Businesses designated as High Impact Businesses
11pursuant to subdivision (a)(3)(E) of this Section shall
12qualify for the exemptions described in Section 5l of the
13Retailers' Occupation Tax Act; any business so designated as a
14High Impact Business being, for purposes of this Section, a
15"Wind Energy Business".
16    (b-7) Beginning on January 1, 2021, businesses designated
17as High Impact Businesses by the Department shall qualify for
18the High Impact Business construction jobs credit under
19subsection (h-5) of Section 201 of the Illinois Income Tax Act
20if the business meets the criteria set forth in subsection (i)
21of this Section. The total aggregate amount of credits awarded
22under the Blue Collar Jobs Act (Article 20 of Public Act 101-9
23this amendatory Act of the 101st General Assembly) shall not
24exceed $20,000,000 in any State fiscal year.
25    (c) High Impact Businesses located in federally designated
26foreign trade zones or sub-zones are also eligible for

 

 

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1additional credits, exemptions and deductions as described in
2the following Acts: Section 9-221 and Section 9-222.1 of the
3Public Utilities Act; and subsection (g) of Section 201, and
4Section 203 of the Illinois Income Tax Act.
5    (d) Except for businesses contemplated under subdivision
6(a)(3)(E) of this Section, existing Illinois businesses which
7apply for designation as a High Impact Business must provide
8the Department with the prospective plan for which 1,500
9full-time retained jobs would be eliminated in the event that
10the business is not designated.
11    (e) Except for new wind power facilities contemplated
12under subdivision (a)(3)(E) of this Section, new proposed
13facilities which apply for designation as High Impact Business
14must provide the Department with proof of alternative
15non-Illinois sites which would receive the proposed investment
16and job creation in the event that the business is not
17designated as a High Impact Business.
18    (f) Except for businesses contemplated under subdivision
19(a)(3)(E) of this Section, in the event that a business is
20designated a High Impact Business and it is later determined
21after reasonable notice and an opportunity for a hearing as
22provided under the Illinois Administrative Procedure Act, that
23the business would have placed in service in qualified
24property the investments and created or retained the requisite
25number of jobs without the benefits of the High Impact
26Business designation, the Department shall be required to

 

 

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1immediately revoke the designation and notify the Director of
2the Department of Revenue who shall begin proceedings to
3recover all wrongfully exempted State taxes with interest. The
4business shall also be ineligible for all State funded
5Department programs for a period of 10 years.
6    (g) The Department shall revoke a High Impact Business
7designation if the participating business fails to comply with
8the terms and conditions of the designation. However, the
9penalties for new wind power facilities or Wind Energy
10Businesses for failure to comply with any of the terms or
11conditions of the Illinois Prevailing Wage Act shall be only
12those penalties identified in the Illinois Prevailing Wage
13Act, and the Department shall not revoke a High Impact
14Business designation as a result of the failure to comply with
15any of the terms or conditions of the Illinois Prevailing Wage
16Act in relation to a new wind power facility or a Wind Energy
17Business.
18    (h) Prior to designating a business, the Department shall
19provide the members of the General Assembly and Commission on
20Government Forecasting and Accountability with a report
21setting forth the terms and conditions of the designation and
22guarantees that have been received by the Department in
23relation to the proposed business being designated.
24    (i) High Impact Business construction jobs credit.
25Beginning on January 1, 2021, a High Impact Business may
26receive a tax credit against the tax imposed under subsections

 

 

10200HB0034ham001- 39 -LRB102 02864 RJF 23107 a

1(a) and (b) of Section 201 of the Illinois Income Tax Act in an
2amount equal to 50% of the amount of the incremental income tax
3attributable to High Impact Business construction jobs credit
4employees employed in the course of completing a High Impact
5Business construction jobs project. However, the High Impact
6Business construction jobs credit may equal 75% of the amount
7of the incremental income tax attributable to High Impact
8Business construction jobs credit employees if the High Impact
9Business construction jobs credit project is located in an
10underserved area.
11    The Department shall certify to the Department of Revenue:
12(1) the identity of taxpayers that are eligible for the High
13Impact Business construction jobs credit; and (2) the amount
14of High Impact Business construction jobs credits that are
15claimed pursuant to subsection (h-5) of Section 201 of the
16Illinois Income Tax Act in each taxable year. Any business
17entity that receives a High Impact Business construction jobs
18credit shall maintain a certified payroll pursuant to
19subsection (j) of this Section.
20    As used in this subsection (i):
21    "High Impact Business construction jobs credit" means an
22amount equal to 50% (or 75% if the High Impact Business
23construction project is located in an underserved area) of the
24incremental income tax attributable to High Impact Business
25construction job employees. The total aggregate amount of
26credits awarded under the Blue Collar Jobs Act (Article 20 of

 

 

10200HB0034ham001- 40 -LRB102 02864 RJF 23107 a

1Public Act 101-9 this amendatory Act of the 101st General
2Assembly) shall not exceed $20,000,000 in any State fiscal
3year
4    "High Impact Business construction job employee" means a
5laborer or worker who is employed by an Illinois contractor or
6subcontractor in the actual construction work on the site of a
7High Impact Business construction job project.
8    "High Impact Business construction jobs project" means
9building a structure or building or making improvements of any
10kind to real property, undertaken and commissioned by a
11business that was designated as a High Impact Business by the
12Department. The term "High Impact Business construction jobs
13project" does not include the routine operation, routine
14repair, or routine maintenance of existing structures,
15buildings, or real property.
16    "Incremental income tax" means the total amount withheld
17during the taxable year from the compensation of High Impact
18Business construction job employees.
19    "Underserved area" means a geographic area that meets one
20or more of the following conditions:
21        (1) the area has a poverty rate of at least 20%
22    according to the latest American Community Survey federal
23    decennial census;
24        (2) 35% 75% or more of the families with children in
25    the area are living below 130% of the poverty line,
26    according to the latest American Community Survey children

 

 

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1    in the area participate in the federal free lunch program
2    according to reported statistics from the State Board of
3    Education;
4        (3) at least 20% of the households in the area receive
5    assistance under the Supplemental Nutrition Assistance
6    Program (SNAP); or
7        (4) the area has an average unemployment rate, as
8    determined by the Illinois Department of Employment
9    Security, that is more than 120% of the national
10    unemployment average, as determined by the U.S. Department
11    of Labor, for a period of at least 2 consecutive calendar
12    years preceding the date of the application.
13    (j) Each contractor and subcontractor who is engaged in
14and executing a High Impact Business Construction jobs
15project, as defined under subsection (i) of this Section, for
16a business that is entitled to a credit pursuant to subsection
17(i) of this Section shall:
18        (1) make and keep, for a period of 5 years from the
19    date of the last payment made on or after June 5, 2019 (the
20    effective date of Public Act 101-9) this amendatory Act of
21    the 101st General Assembly on a contract or subcontract
22    for a High Impact Business Construction Jobs Project,
23    records for all laborers and other workers employed by the
24    contractor or subcontractor on the project; the records
25    shall include:
26            (A) the worker's name;

 

 

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1            (B) the worker's address;
2            (C) the worker's telephone number, if available;
3            (D) the worker's social security number;
4            (E) the worker's classification or
5        classifications;
6            (F) the worker's gross and net wages paid in each
7        pay period;
8            (G) the worker's number of hours worked each day;
9            (H) the worker's starting and ending times of work
10        each day;
11            (I) the worker's hourly wage rate; and
12            (J) the worker's hourly overtime wage rate;
13        (2) no later than the 15th day of each calendar month,
14    provide a certified payroll for the immediately preceding
15    month to the taxpayer in charge of the High Impact
16    Business construction jobs project; within 5 business days
17    after receiving the certified payroll, the taxpayer shall
18    file the certified payroll with the Department of Labor
19    and the Department of Commerce and Economic Opportunity; a
20    certified payroll must be filed for only those calendar
21    months during which construction on a High Impact Business
22    construction jobs project has occurred; the certified
23    payroll shall consist of a complete copy of the records
24    identified in paragraph (1) of this subsection (j), but
25    may exclude the starting and ending times of work each
26    day; the certified payroll shall be accompanied by a

 

 

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1    statement signed by the contractor or subcontractor or an
2    officer, employee, or agent of the contractor or
3    subcontractor which avers that:
4            (A) he or she has examined the certified payroll
5        records required to be submitted by the Act and such
6        records are true and accurate; and
7            (B) the contractor or subcontractor is aware that
8        filing a certified payroll that he or she knows to be
9        false is a Class A misdemeanor.
10    A general contractor is not prohibited from relying on a
11certified payroll of a lower-tier subcontractor, provided the
12general contractor does not knowingly rely upon a
13subcontractor's false certification.
14    Any contractor or subcontractor subject to this
15subsection, and any officer, employee, or agent of such
16contractor or subcontractor whose duty as an officer,
17employee, or agent it is to file a certified payroll under this
18subsection, who willfully fails to file such a certified
19payroll on or before the date such certified payroll is
20required by this paragraph to be filed and any person who
21willfully files a false certified payroll that is false as to
22any material fact is in violation of this Act and guilty of a
23Class A misdemeanor.
24    The taxpayer in charge of the project shall keep the
25records submitted in accordance with this subsection on or
26after June 5, 2019 (the effective date of Public Act 101-9)

 

 

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1this amendatory Act of the 101st General Assembly for a period
2of 5 years from the date of the last payment for work on a
3contract or subcontract for the High Impact Business
4construction jobs project.
5    The records submitted in accordance with this subsection
6shall be considered public records, except an employee's
7address, telephone number, and social security number, and
8made available in accordance with the Freedom of Information
9Act. The Department of Labor shall accept any reasonable
10submissions by the contractor that meet the requirements of
11this subsection (j) and shall share the information with the
12Department in order to comply with the awarding of a High
13Impact Business construction jobs credit. A contractor,
14subcontractor, or public body may retain records required
15under this Section in paper or electronic format.
16    (k) Upon 7 business days' notice, each contractor and
17subcontractor shall make available for inspection and copying
18at a location within this State during reasonable hours, the
19records identified in this subsection (j) to the taxpayer in
20charge of the High Impact Business construction jobs project,
21its officers and agents, the Director of the Department of
22Labor and his or her deputies and agents, and to federal,
23State, or local law enforcement agencies and prosecutors.
24(Source: P.A. 101-9, eff. 6-5-19; revised 7-12-19.)
 
25    (20 ILCS 655/8.1)

 

 

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1    Sec. 8.1. Accounting.
2    (a) Any business receiving tax incentives due to its
3location within an Enterprise Zone or its designation as a
4High Impact Business must annually report to the Department of
5Revenue information reasonably required by the Department of
6Revenue to enable the Department to verify and calculate the
7total Enterprise Zone or High Impact Business tax benefits for
8property taxes and taxes imposed by the State that are
9received by the business, broken down by incentive category
10and enterprise zone, if applicable. Reports will be due no
11later than May 31 of each year and shall cover the previous
12calendar year. The first report will be for the 2012 calendar
13year and will be due no later than May 31, 2013. Failure to
14report data may result in ineligibility to receive incentives.
15To the extent that a business receiving tax incentives has
16obtained an Enterprise Zone Building Materials Exemption
17Certificate or a High Impact Business Building Materials
18Exemption Certificate, that business is required to report
19those building materials exemption benefits only under
20subsection (a-5) of this Section. No additional reporting for
21those building materials exemption benefits is required under
22this subsection (a). In addition, if the Department determines
23that 80% or more of the businesses receiving tax incentives
24because of their location within a particular Enterprise Zone
25failed to submit the information required under this
26subsection (a) to the Department in any calendar year, then

 

 

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1the Enterprise Zone may be decertified by the Department. If
2the Department is able to determine that specific businesses
3are failing to submit the information required under this
4subsection (a) to the Department in any calendar year to the
5Zone Administrator, regardless of the Administrator's efforts
6to enforce reporting, the Department may, at its discretion,
7suspend the benefits to the specific business rather than an
8outright decertification of the particular Enterprise Zone.
9The Department, in consultation with the Department of
10Revenue, is authorized to adopt rules governing ineligibility
11to receive exemptions, including the length of ineligibility.
12Factors to be considered in determining whether a business is
13ineligible shall include, but are not limited to, prior
14compliance with the reporting requirements, cooperation in
15discontinuing and correcting violations, the extent of the
16violation, and whether the violation was willful or
17inadvertent.
18    (a-5) Each contractor or other entity that has been issued
19an Enterprise Zone Building Materials Exemption Certificate
20under Section 5k of the Retailers' Occupation Tax Act or a High
21Impact Business Building Materials Exemption Certificate under
22Section 5l of the Retailers' Occupation Tax Act shall annually
23report to the Department of Revenue the total value of the
24Enterprise Zone or High Impact Business building materials
25exemption from State taxes. Reports shall contain information
26reasonably required by the Department of Revenue to enable it

 

 

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1to verify and calculate the total tax benefits for taxes
2imposed by the State, and shall be broken down by Enterprise
3Zone. Reports are due no later than May 31 of each year and
4shall cover the previous calendar year. The first report will
5be for the 2013 calendar year and will be due no later than May
631, 2014. Failure to report data may result in revocation of
7the Enterprise Zone Building Materials Exemption Certificate
8or High Impact Business Building Materials Exemption
9Certificate issued to the contractor or other entity.
10    The Department of Revenue is authorized to adopt rules
11governing revocation determinations, including the length of
12revocation. Factors to be considered in revocations shall
13include, but are not limited to, prior compliance with the
14reporting requirements, cooperation in discontinuing and
15correcting violations, and whether the certificate was used
16unlawfully during the preceding year.
17    (b) Each person required to file a return under the Gas
18Revenue Tax Act, the Gas Use Tax Act, the Electricity Excise
19Tax Act, or the Telecommunications Excise Tax Act shall file,
20on or before May 31 of each year, a report with the Department
21of Revenue, in the manner and form required by the Department
22of Revenue, containing information reasonably required by the
23Department of Revenue to enable the Department of Revenue to
24calculate the amount of the deduction for taxes imposed by the
25State that is taken under each Act, respectively, due to the
26location of a business in an Enterprise Zone or its

 

 

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1designation as a High Impact Business. The report shall be
2itemized by business and the business location address.
3    (c) Employers shall report their job creation, retention,
4and capital investment numbers within the zone annually to the
5Department of Revenue no later than May 31 of each calendar
6year. High Impact Businesses shall report their job creation,
7retention, and capital investment numbers to the Department of
8Revenue no later than May 31 of each year. With respect to job
9creation or retention, employers and High Impact Businesses
10shall use best efforts to submit diversity information related
11to the gender and ethnicity of such employees.
12    (d) The Department of Revenue will aggregate and collect
13the tax, job, and capital investment data by Enterprise Zone
14and High Impact Business and report this information,
15formatted to exclude company-specific proprietary information,
16to the Department and the Board by August 1, 2013, and by
17August 1 of every calendar year thereafter. The Department
18will include this information in their required reports under
19Section 6 of this Act. The Board shall consider this
20information during the reviews required under subsection (d-5)
21of Section 5.4 of this Act and subsection (c) of Section 5.3 of
22this Act.
23    (e) The Department of Revenue, in its discretion, may
24require that the reports filed under this Section be submitted
25electronically.
26    (f) The Department of Revenue shall have the authority to

 

 

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1adopt rules as are reasonable and necessary to implement the
2provisions of this Section.
3(Source: P.A. 97-905, eff. 8-7-12; 98-109, eff. 7-25-13.)
 
4    (20 ILCS 655/12-9)  (from Ch. 67 1/2, par. 626)
5    Sec. 12-9. Report. On January 1 of each year, the
6Department shall report on its operation of the Fund for the
7preceding fiscal year to the Governor and the General
8Assembly. For any fiscal year in which no operations are
9conducted by the Department because no funds were appropriated
10to the Fund, the report outlined by this Section is not
11required.
12(Source: P.A. 84-165.)
 
13    (20 ILCS 655/13)
14    Sec. 13. Enterprise Zone construction jobs credit.
15    (a) Beginning on January 1, 2021, a business entity in a
16certified Enterprise Zone that makes a capital investment of
17at least $10,000,000 in an Enterprise Zone construction jobs
18project may receive an Enterprise Zone construction jobs
19credit against the tax imposed under subsections (a) and (b)
20of Section 201 of the Illinois Income Tax Act in an amount
21equal to 50% of the amount of the incremental income tax
22attributable to Enterprise Zone construction jobs credit
23employees employed in the course of completing an Enterprise
24Zone construction jobs project. However, the Enterprise Zone

 

 

10200HB0034ham001- 50 -LRB102 02864 RJF 23107 a

1construction jobs credit may equal 75% of the amount of the
2incremental income tax attributable to Enterprise Zone
3construction jobs credit employees if the project is located
4in an underserved area.
5    (b) A business entity seeking a credit under this Section
6must submit an application to the Department and must receive
7approval from the designating municipality or county and the
8Department for the Enterprise Zone construction jobs credit
9project. The application must describe the nature and benefit
10of the project to the certified Enterprise Zone and its
11potential contributors. The total aggregate amount of credits
12awarded under the Blue Collar Jobs Act (Article 20 of Public
13Act 101-9 this amendatory Act of the 101st General Assembly)
14shall not exceed $20,000,000 in any State fiscal year.
15    Within 45 days after receipt of an application, the
16Department shall give notice to the applicant as to whether
17the application has been approved or disapproved. If the
18Department disapproves the application, it shall specify the
19reasons for this decision and allow 60 days for the applicant
20to amend and resubmit its application. The Department shall
21provide assistance upon request to applicants. Resubmitted
22applications shall receive the Department's approval or
23disapproval within 30 days after the application is
24resubmitted. Those resubmitted applications satisfying initial
25Department objectives shall be approved unless reasonable
26circumstances warrant disapproval.

 

 

10200HB0034ham001- 51 -LRB102 02864 RJF 23107 a

1    On an annual basis, the designated zone organization shall
2furnish a statement to the Department on the programmatic and
3financial status of any approved project and an audited
4financial statement of the project.
5    The Department shall certify to the Department of Revenue
6the identity of taxpayers who are eligible for the credits and
7the amount of credits that are claimed pursuant to
8subparagraph (8) of subsection (f) of Section 201 the Illinois
9Income Tax Act.
10    The Enterprise Zone construction jobs credit project must
11be undertaken by the business entity in the course of
12completing a project that complies with the criteria contained
13in Section 4 of this Act and is undertaken in a certified
14Enterprise Zone. The Department shall adopt any necessary
15rules for the implementation of this subsection (b).
16    (c) Any business entity that receives an Enterprise Zone
17construction jobs credit shall maintain a certified payroll
18pursuant to subsection (d) of this Section.
19    (d) Each contractor and subcontractor who is engaged in
20and is executing an Enterprise Zone construction jobs credit
21project for a business that is entitled to a credit pursuant to
22this Section shall:
23        (1) make and keep, for a period of 5 years from the
24    date of the last payment made on or after June 5, 2019 (the
25    effective date of Public Act 101-9) this amendatory Act of
26    the 101st General Assembly on a contract or subcontract

 

 

10200HB0034ham001- 52 -LRB102 02864 RJF 23107 a

1    for an Enterprise Zone construction jobs credit project,
2    records for all laborers and other workers employed by
3    them on the project; the records shall include:
4            (A) the worker's name;
5            (B) the worker's address;
6            (C) the worker's telephone number, if available;
7            (D) the worker's social security number;
8            (E) the worker's classification or
9        classifications;
10            (F) the worker's gross and net wages paid in each
11        pay period;
12            (G) the worker's number of hours worked each day;
13            (H) the worker's starting and ending times of work
14        each day;
15            (I) the worker's hourly wage rate; and
16            (J) the worker's hourly overtime wage rate;
17        (2) no later than the 15th day of each calendar month,
18    provide a certified payroll for the immediately preceding
19    month to the taxpayer in charge of the project; within 5
20    business days after receiving the certified payroll, the
21    taxpayer shall file the certified payroll with the
22    Department of Labor and the Department of Commerce and
23    Economic Opportunity; a certified payroll must be filed
24    for only those calendar months during which construction
25    on an Enterprise Zone construction jobs project has
26    occurred; the certified payroll shall consist of a

 

 

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1    complete copy of the records identified in paragraph (1)
2    of this subsection (d), but may exclude the starting and
3    ending times of work each day; the certified payroll shall
4    be accompanied by a statement signed by the contractor or
5    subcontractor or an officer, employee, or agent of the
6    contractor or subcontractor which avers that:
7            (A) he or she has examined the certified payroll
8        records required to be submitted by the Act and such
9        records are true and accurate; and
10            (B) the contractor or subcontractor is aware that
11        filing a certified payroll that he or she knows to be
12        false is a Class A misdemeanor.
13    A general contractor is not prohibited from relying on a
14certified payroll of a lower-tier subcontractor, provided the
15general contractor does not knowingly rely upon a
16subcontractor's false certification.
17    Any contractor or subcontractor subject to this
18subsection, and any officer, employee, or agent of such
19contractor or subcontractor whose duty as an officer,
20employee, or agent it is to file a certified payroll under this
21subsection, who willfully fails to file such a certified
22payroll on or before the date such certified payroll is
23required by this paragraph to be filed and any person who
24willfully files a false certified payroll that is false as to
25any material fact is in violation of this Act and guilty of a
26Class A misdemeanor.

 

 

10200HB0034ham001- 54 -LRB102 02864 RJF 23107 a

1    The taxpayer in charge of the project shall keep the
2records submitted in accordance with this subsection on or
3after June 5, 2019 (the effective date of Public Act 101-9)
4this amendatory Act of the 101st General Assembly for a period
5of 5 years from the date of the last payment for work on a
6contract or subcontract for the project.
7    The records submitted in accordance with this subsection
8shall be considered public records, except an employee's
9address, telephone number, and social security number, and
10made available in accordance with the Freedom of Information
11Act. The Department of Labor shall accept any reasonable
12submissions by the contractor that meet the requirements of
13this subsection and shall share the information with the
14Department in order to comply with the awarding of Enterprise
15Zone construction jobs credits. A contractor, subcontractor,
16or public body may retain records required under this Section
17in paper or electronic format.
18    Upon 7 business days' notice, the contractor and each
19subcontractor shall make available for inspection and copying
20at a location within this State during reasonable hours, the
21records identified in paragraph (1) of this subsection to the
22taxpayer in charge of the project, its officers and agents,
23the Director of Labor and his or her deputies and agents, and
24to federal, State, or local law enforcement agencies and
25prosecutors.
26    (e) As used in this Section:

 

 

10200HB0034ham001- 55 -LRB102 02864 RJF 23107 a

1    "Enterprise Zone construction jobs credit" means an amount
2equal to 50% (or 75% if the project is located in an
3underserved area) of the incremental income tax attributable
4to Enterprise Zone construction jobs credit employees.
5    "Enterprise Zone construction jobs credit employee" means
6a laborer or worker who is employed by an Illinois contractor
7or subcontractor in the actual construction work on the site
8of an Enterprise Zone construction jobs credit project.
9    "Enterprise Zone construction jobs credit project" means
10building a structure or building or making improvements of any
11kind to real property commissioned and paid for by a business
12that has applied and been approved for an Enterprise Zone
13construction jobs credit pursuant to this Section. "Enterprise
14Zone construction jobs credit project" does not include the
15routine operation, routine repair, or routine maintenance of
16existing structures, buildings, or real property.
17    "Incremental income tax" means the total amount withheld
18during the taxable year from the compensation of Enterprise
19Zone construction jobs credit employees.
20    "Underserved area" means a geographic area that meets one
21or more of the following conditions:
22        (1) the area has a poverty rate of at least 20%
23    according to the latest American Community Survey federal
24    decennial census;
25        (2) 35% 75% or more of the families with children in
26    the area are living below 130% of the poverty line,

 

 

10200HB0034ham001- 56 -LRB102 02864 RJF 23107 a

1    according to the latest American Community Survey children
2    in the area participate in the federal free lunch program
3    according to reported statistics from the State Board of
4    Education;
5        (3) at least 20% of the households in the area receive
6    assistance under the Supplemental Nutrition Assistance
7    Program (SNAP); or
8        (4) the area has an average unemployment rate, as
9    determined by the Illinois Department of Employment
10    Security, that is more than 120% of the national
11    unemployment average, as determined by the U.S. Department
12    of Labor, for a period of at least 2 consecutive calendar
13    years preceding the date of the application.
14(Source: P.A. 101-9, eff. 6-5-19; revised 7-12-19.)".