Illinois General Assembly - Full Text of HB5185
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Full Text of HB5185  102nd General Assembly

HB5185ham002 102ND GENERAL ASSEMBLY

Rep. William Davis

Filed: 2/25/2022

 

 


 

 


 
10200HB5185ham002LRB102 24773 RJF 36925 a

1
AMENDMENT TO HOUSE BILL 5185

2    AMENDMENT NO. ______. Amend House Bill 5185, AS AMENDED,
3by replacing everything after the enacting clause with the
4following:
 
5    "Section 5. The Department of Commerce and Economic
6Opportunity Law of the Civil Administrative Code of Illinois
7is amended by changing Sections 605-300, 605-615, and 605-680
8as follows:
 
9    (20 ILCS 605/605-300)  (was 20 ILCS 605/46.2)
10    Sec. 605-300. Economic and business development plans;
11Illinois Business Development Council. (a) Economic
12development plans. The Department shall develop a strategic
13economic development plan for the State by July 1, 2014. By no
14later than July 1, 2015, and by July 1 annually thereafter, the
15Department shall make modifications to the plan as
16modifications are warranted by changes in economic conditions

 

 

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1or by other factors, including changes in policy. In addition
2to the annual modification, the plan shall be reviewed and
3redeveloped in full every 5 years. In the development of the
4annual economic development plan, the Department shall consult
5with representatives of the private sector, other State
6agencies, academic institutions, local economic development
7organizations, local governments, and not-for-profit
8organizations. The annual economic development plan shall set
9specific, measurable, attainable, relevant, and time-sensitive
10goals and shall include a focus on areas of high unemployment
11or poverty.
12    The term "economic development" shall be construed broadly
13by the Department and may include, but is not limited to, job
14creation, job retention, tax base enhancements, development of
15human capital, workforce productivity, critical
16infrastructure, regional competitiveness, social inclusion,
17standard of living, environmental sustainability, energy
18independence, quality of life, the effective use of financial
19incentives, the utilization of public private partnerships
20where appropriate, and other metrics determined by the
21Department.
22    The plan shall be based on relevant economic data, focus
23on economic development as prescribed by this Section, and
24emphasize strategies to retain and create jobs.
25    The plan shall identify and develop specific strategies
26for utilizing the assets of regions within the State defined

 

 

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1as counties and municipalities or other political subdivisions
2in close geographical proximity that share common economic
3traits such as commuting zones, labor market areas, or other
4economically integrated characteristics.
5    If the plan includes strategies that have a fiscal impact
6on the Department or any other agency, the plan shall include a
7detailed description of the estimated fiscal impact of such
8strategies.
9    Prior to publishing the plan in its final form, the
10Department shall allow for a reasonable time for public input.
11    The Department shall transmit copies of the economic
12development plan to the Governor and the General Assembly no
13later than July 1, 2014, and by July 1 annually thereafter. The
14plan and its corresponding modifications shall be published
15and made available to the public in both paper and electronic
16media, on the Department's website, and by any other method
17that the Department deems appropriate.
18    The Department shall annually submit legislation to
19implement the strategic economic development plan or
20modifications to the strategic economic development plan to
21the Governor, the President and Minority Leader of the Senate,
22and the Speaker and the Minority Leader of the House of
23Representatives. The legislation shall be in the form of one
24or more substantive bills drafted by the Legislative Reference
25Bureau.
26    (b) Business development plans; Illinois Business

 

 

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1Development Council.
2        (1) There is created the Illinois Business Development
3    Council, hereinafter referred to as the Council. The
4    Council shall consist of the Director, who shall serve as
5    co-chairperson, and 12 voting members who shall be
6    appointed by the Governor with the advice and consent of
7    the Senate.
8            (A) The voting members of the Council shall
9        include one representative from each of the following
10        businesses and groups: small business, coal,
11        healthcare, large manufacturing, small or specialized
12        manufacturing, agriculture, high technology or applied
13        science, local economic development entities, private
14        sector organized labor, a local or state business
15        association or chamber of commerce.
16            (B) There shall be 2 at-large voting members who
17        reside within areas of high unemployment within
18        counties or municipalities that have had an annual
19        average unemployment rate of at least 120% of the
20        State's annual average unemployment rate as reported
21        by the Department of Employment Security for the 5
22        years preceding the date of appointment.
23        (2) All appointments shall be made in a geographically
24    diverse manner.
25        (3) For the initial appointments to the Council, 6
26    voting members shall be appointed to serve a 2-year term

 

 

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1    and 6 voting members shall be appointed to serve a 4-year
2    term. Thereafter, all appointments shall be for terms of 4
3    years. The initial term of voting members shall commence
4    on the first Wednesday in February 2014. Thereafter, the
5    terms of voting members shall commence on the first
6    Wednesday in February, except in the case of an
7    appointment to fill a vacancy. Vacancies occurring among
8    the members shall be filled in the same manner as the
9    original appointment for the remainder of the unexpired
10    term. For a vacancy occurring when the Senate is not in
11    session, the Governor may make a temporary appointment
12    until the next meeting of the Senate when a person shall be
13    nominated to fill the office, and, upon confirmation by
14    the Senate, he or she shall hold office during the
15    remainder of the term. A vacancy in membership does not
16    impair the ability of a quorum to exercise all rights and
17    perform all duties of the Council. A member is eligible
18    for reappointment.
19        (4) Members shall serve without compensation, but may
20    be reimbursed for necessary expenses incurred in the
21    performance of their duties from funds appropriated for
22    that purpose.
23        (5) In addition, the following shall serve as ex
24    officio, non-voting members of the Council in order to
25    provide specialized advice and support to the Council: the
26    Secretary of Transportation, or his or her designee; the

 

 

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1    Director of Employment Security, or his or her designee;
2    the Executive Director of the Illinois Finance Authority,
3    or his or her designee; the Director of Agriculture, or
4    his or her designee; the Director of Revenue, or his or her
5    designee; the Director of Labor, or his or her designee;
6    and the Director of the Environmental Protection Agency,
7    or his or her designee. Ex officio members shall provide
8    staff and technical assistance to the Council when
9    appropriate.
10        (6) In addition to the Director, the voting members
11    shall elect a co-chairperson.
12        (7) The Council shall meet at least twice annually and
13    at such other times as the co-chairpersons or any 5 voting
14    members consider necessary. Seven voting members shall
15    constitute a quorum of the Council.
16        (8) The Department shall provide staff assistance to
17    the Council.
18        (9) The Council shall provide the Department relevant
19    information in a timely manner pursuant to its duties as
20    enumerated in this Section that can be used by the
21    Department to enhance the State's strategic economic
22    development plan.
23        (10) The Council shall:
24            (A) Develop an overall strategic business
25        development plan for the State of Illinois and update
26        the plan at least annually; that plan shall include,

 

 

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1        without limitation, (i) an assessment of the economic
2        development practices of states that border Illinois
3        and (ii) recommendations for best practices with
4        respect to economic development, business incentives,
5        business attraction, and business retention for
6        counties in Illinois that border at least one other
7        state.
8            (B) Develop business marketing plans for the State
9        of Illinois to effectively solicit new company
10        investment and existing business expansion. Insofar as
11        allowed under the Illinois Procurement Code, and
12        subject to appropriations made by the General Assembly
13        for such purposes, the Council may assist the
14        Department in the procurement of outside vendors to
15        carry out such marketing plans.
16            (C) Seek input from local economic development
17        officials to develop specific strategies to
18        effectively link State and local business development
19        and marketing efforts focusing on areas of high
20        unemployment or poverty.
21            (D) Provide the Department with advice on
22        strategic business development and business marketing
23        for the State of Illinois.
24            (E) Provide the Department research and recommend
25        best practices for developing investment tools for
26        business attraction and retention.

 

 

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1(Source: P.A. 98-397, eff. 8-16-13; 98-756, eff. 7-16-14;
298-888, eff. 8-15-14.)
 
3    (20 ILCS 605/605-615)  (was 20 ILCS 605/46.19e)
4    Sec. 605-615. Assistance with exports. The Department
5shall have the following duties and responsibilities in regard
6to the Civil Administrative Code of Illinois:
7    (1) To establish or cosponsor mentoring conferences,
8utilizing experienced manufacturing exporters, to explain and
9provide information to prospective export manufacturers and
10businesses concerning the process of exporting to both
11domestic and international opportunities.
12    (2) To provide technical assistance to prospective export
13manufacturers and businesses seeking to establish domestic and
14international export opportunities.
15    (3) To coordinate with the Department's Small Business
16Development Centers to link buyers with prospective export
17manufacturers and businesses.
18    (4) To promote, both domestically and abroad, products
19made in Illinois in order to inform consumers and buyers of
20their high quality standards and craftsmanship.
21    (5) To provide technical assistance toward establishment
22of export trade corporations in the private sector.
23    (6) To develop an electronic data base to compile
24information on international trade and investment activities
25in Illinois companies, provide access to research and business

 

 

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1opportunities through external data bases, and connect this
2data base through international communication systems with
3appropriate domestic and worldwide networks users.
4    (7) To collect and distribute to foreign commercial
5libraries directories, catalogs, brochures, and other
6information of value to foreign businesses considering doing
7business in this State.
8    (8) To establish an export finance awareness program to
9provide information to banking organizations about methods
10used by banks to provide financing for businesses engaged in
11exporting and about other State and federal programs to
12promote and expedite export financing.
13    (9) To undertake a survey of Illinois' businesses to
14identify exportable products and the businesses interested in
15exporting.
16(Source: P.A. 91-239, eff. 1-1-00; 91-357, eff. 7-29-99;
1792-16, eff. 6-28-01.)
 
18    (20 ILCS 605/605-680)
19    Sec. 605-680. Illinois goods and services website.
20    (a) The Department, in consultation with the Department of
21Innovation and Technology, must establish and maintain an
22Internet website devoted to the marketing of Illinois goods
23and services by linking potential purchasers with producers of
24goods and services who are located in the State.
25    (b) The Department must, subject to appropriation,

 

 

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1advertise the website to encourage inclusion of producers on
2the website and to encourage the use of the website by
3potential purchasers.
4(Source: P.A. 100-611, eff. 7-20-18.)
 
5    (20 ILCS 605/605-550 rep.)
6    (20 ILCS 605/605-1040 rep.)
7    Section 10. The Department of Commerce and Economic
8Opportunity Law of the Civil Administrative Code of Illinois
9is amended by repealing Sections 605-550 and 605-1040.
 
10    Section 15. The Illinois Main Street Act is amended by
11changing Sections 15, 20, 25, and 30 as follows:
 
12    (20 ILCS 720/15)
13    Sec. 15. Illinois Main Street Program. The Illinois Main
14Street Program is created, subject to appropriation, within
15the Department. In order to implement the Illinois Main Street
16Program, the Department may shall do all of the following:
17        (1) Provide assistance to municipalities designated as
18    Main Street Communities, municipalities interested in
19    becoming designated through the program, and businesses,
20    property owners, organizations, and municipalities
21    undertaking a comprehensive downtown or neighborhood
22    commercial district revitalization initiative and
23    management strategy. Assistance may include, but is not

 

 

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1    limited to, initial site evaluations and assessments,
2    training for local programs, training for local program
3    staff, site visits and assessments by technical
4    specialists, local program design assistance and
5    evaluation, and continued local program on-site
6    assistance.
7        (2) To the extent funds are made available, provide
8    financial assistance to municipalities or local
9    organizations to assist in initial downtown or
10    neighborhood commercial district revitalization program
11    specialized training, specific project feasibility
12    studies, market studies, and design assistance.
13        (3) Operate the Illinois Main Street Program in
14    accordance with the plan developed by the Department.
15        (4) Consider other factors the Department deems
16    necessary for the implementation of this Act.
17(Source: P.A. 97-573, eff. 8-25-11.)
 
18    (20 ILCS 720/20)
19    Sec. 20. Main Street Community designation.
20    (a) The Department may shall adopt criteria for the
21designation of a Main Street Community. In establishing the
22criteria, the Department shall consider all of the following:
23        (1) The degree of interest and commitment to
24    comprehensive downtown or neighborhood commercial district
25    revitalization and, where applicable, historic

 

 

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1    preservation by both the public and private sectors.
2        (2) The evidence of potential private sector
3    investment in the downtown or neighborhood commercial
4    district.
5        (3) Where applicable, a downtown or neighborhood
6    commercial district with sufficient historic fabric to
7    become a foundation for an enhanced community image.
8        (4) The capacity of the organization to undertake a
9    comprehensive program and the financial commitment to
10    implement a long-term downtown or neighborhood commercial
11    district revitalization program that includes a commitment
12    to employ a professional program manager.
13        (5) The National Main Street Center's criteria for
14    designating official main street municipalities.
15        (6) Other factors the Department deems necessary for
16    the designation of a local program.
17    (b) Illinois Main Street shall designate local downtown or
18neighborhood commercial district revitalization programs and
19official local main street programs.
20    (c) The Department must approve all local downtown or
21neighborhood commercial district revitalization program
22boundaries. The boundaries of a local downtown or neighborhood
23commercial district revitalization program are typically
24defined using the pedestrian core of a traditional commercial
25district.
26(Source: P.A. 97-573, eff. 8-25-11.)
 

 

 

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1    (20 ILCS 720/25)
2    Sec. 25. Illinois Main Street Plan. The Department may
3shall, in consultation with the Lieutenant Governor, develop a
4plan for the Illinois Main Street Program. The plan shall
5describe:
6        (1) the objectives and strategies of the Illinois Main
7    Street Program;
8        (2) how the Illinois Main Street Program will be
9    coordinated with existing federal, state, local, and
10    private sector business development and historic
11    preservation efforts;
12        (3) the means by which private investment will be
13    solicited and employed;
14        (4) the methods of selecting and providing assistance
15    to participating local programs; and
16        (5) a means to solicit private contributions for State
17    and local operations of the Illinois Main Street Program.
18(Source: P.A. 97-573, eff. 8-25-11.)
 
19    (20 ILCS 720/30)
20    Sec. 30. Role of the Lieutenant Governor. The Lieutenant
21Governor shall, subject to appropriation, be the Ambassador of
22the Illinois Main Street Program. The Department shall,
23subject to appropriation, advise and consult with the
24Lieutenant Governor on the activities of the Illinois Main

 

 

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1Street Program. The Lieutenant Governor, with the assistance
2of the Department, shall, subject to appropriation, promote
3and encourage the success of the Illinois Main Street Program.
4(Source: P.A. 97-573, eff. 8-25-11.)
 
5    Section 20. The Outdoor Recreation Resources Act is
6amended by changing Sections 2 and 2a as follows:
 
7    (20 ILCS 860/2)  (from Ch. 105, par. 532)
8    Sec. 2. The Department of Natural Resources is authorized
9to have prepared, with the Department of Commerce and Economic
10Opportunity, and to maintain and keep up-to-date a
11comprehensive plan for the development of the outdoor
12recreation resources of the State.
13(Source: P.A. 94-793, eff. 5-19-06.)
 
14    (20 ILCS 860/2a)  (from Ch. 105, par. 532a)
15    Sec. 2a. The Department of Natural Resources is authorized
16to have prepared with the Department of Commerce and Economic
17Opportunity and to maintain and keep up to date a
18comprehensive plan for the preservation of the historically
19significant properties and interests of the State.
20(Source: P.A. 100-695, eff. 8-3-18; 101-81, eff. 7-12-19.)
 
21    (20 ILCS 3953/15 rep.)
22    (20 ILCS 3953/20 rep.)

 

 

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1    Section 25. The Government Buildings Energy Cost Reduction
2Act of 1991 is amended by repealing Sections 15 and 20.
 
3    Section 30. The Eliminate the Digital Divide Law is
4amended by changing Section 5-30 as follows:
 
5    (30 ILCS 780/5-30)
6    Sec. 5-30. Community Technology Center Grant Program.
7    (a) Subject to appropriation, the Department shall
8administer the Community Technology Center Grant Program under
9which the Department shall make grants in accordance with this
10Article for planning, establishment, administration, and
11expansion of Community Technology Centers and for assisting
12public hospitals, libraries, and park districts in eliminating
13the digital divide. The purposes of the grants shall include,
14but not be limited to, volunteer recruitment and management,
15training and instruction, infrastructure, and related goods
16and services, including case management, administration,
17personal information management, and outcome-tracking tools
18and software for the purposes of reporting to the Department
19and for enabling participation in digital government and
20consumer services programs, for Community Technology Centers
21and public hospitals, libraries, and park districts. No
22Community Technology Center may receive a grant of more than
23$75,000 under this Section in a particular fiscal year.
24    (b) Public hospitals, libraries, park districts, and State

 

 

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1educational agencies, local educational agencies, institutions
2of higher education, senior citizen homes, and other public
3and private nonprofit or for-profit agencies and organizations
4are eligible to receive grants under this Program, provided
5that a local educational agency or public or private
6educational agency or organization must, in order to be
7eligible to receive grants under this Program, provide
8computer access and educational services using information
9technology to the public at one or more of its educational
10buildings or facilities at least 12 hours each week. A group of
11eligible entities is also eligible to receive a grant if the
12group follows the procedures for group applications in 34 CFR
1375.127-129 of the Education Department General Administrative
14Regulations.
15    To be eligible to apply for a grant, a Community
16Technology Center must serve a community in which not less
17than 40% of the students are eligible for a free or reduced
18price lunch under the national school lunch program or in
19which not less than 30% of the students are eligible for a free
20lunch under the national school lunch program; however, if
21funding is insufficient to approve all grant applications for
22a particular fiscal year, the Department may impose a higher
23minimum percentage threshold for that fiscal year.
24Determinations of communities and determinations of the
25percentage of students in a community who are eligible for a
26free or reduced price lunch under the national school lunch

 

 

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1program shall be in accordance with rules adopted by the
2Department.
3    Any entities that have received a Community Technology
4Center grant under the federal Community Technology Centers
5Program are also eligible to apply for grants under this
6Program.
7    The Department shall provide assistance to Community
8Technology Centers in making those determinations for purposes
9of applying for grants.
10    The Department shall encourage Community Technology
11Centers to participate in public and private computer hardware
12equipment recycling initiatives that provide computers at
13reduced or no cost to low-income families, including programs
14authorized by the State Property Control Act. On an annual
15basis, the Department must provide the Director of Central
16Management Services with a list of Community Technology
17Centers that have applied to the Department for funding as
18potential recipients of surplus State-owned computer hardware
19equipment under programs authorized by the State Property
20Control Act.
21    (c) Grant applications shall be submitted to the
22Department on a schedule of one or more deadlines established
23by the Department by rule.
24    (d) The Department shall adopt rules setting forth the
25required form and contents of grant applications.
26    (e) (Blank). There is created the Digital Divide

 

 

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1Elimination Advisory Committee. The advisory committee shall
2consist of 7 members appointed one each by the Governor, the
3President of the Senate, the Senate Minority Leader, the
4Speaker of the House, and the House Minority Leader, and 2
5appointed by the Director of Commerce and Economic
6Opportunity, one of whom shall be a representative of the
7telecommunications industry and one of whom shall represent
8community technology centers. The members of the advisory
9committee shall receive no compensation for their services as
10members of the advisory committee but may be reimbursed for
11their actual expenses incurred in serving on the advisory
12committee. The Digital Divide Elimination Advisory Committee
13shall advise the Department in establishing criteria and
14priorities for identifying recipients of grants under this
15Act. The advisory committee shall obtain advice from the
16technology industry regarding current technological standards.
17The advisory committee shall seek any available federal
18funding.
19    (f) (Blank). There is created the Digital Divide
20Elimination Working Group. The Working Group shall consist of
21the Director of Commerce and Economic Opportunity, or his or
22her designee, the Director of Central Management Services, or
23his or her designee, and the Executive Director of the
24Illinois Commerce Commission, or his or her designee. The
25Director of Commerce and Economic Opportunity, or his or her
26designee, shall serve as chair of the Working Group. The

 

 

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1Working Group shall consult with the members of the Digital
2Divide Elimination Advisory Committee and may consult with
3various groups including, but not limited to,
4telecommunications providers, telecommunications-related
5technology producers and service providers, community
6technology providers, community and consumer organizations,
7businesses and business organizations, and federal government
8agencies.
9    (g) Duties of the Digital Divide Elimination Working Group
10include all of the following:
11        (1) Undertaking a thorough review of grant programs
12    available through the federal government, local agencies,
13    telecommunications providers, and business and charitable
14    entities for the purpose of identifying appropriate
15    sources of revenues for the Digital Divide Elimination
16    Fund and attempting to update available grants on a
17    regular basis.
18        (2) Researching and cataloging programs designed to
19    advance digital literacy and computer access that are
20    available through the federal government, local agencies,
21    telecommunications providers, and business and charitable
22    entities and attempting to update available programs on a
23    regular basis.
24        (3) Presenting the information compiled from items (1)
25    and (2) to the Department of Commerce and Economic
26    Opportunity, which shall serve as a single point of

 

 

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1    contact for applying for funding for the Digital Divide
2    Elimination Fund and for distributing information to the
3    public regarding all programs designed to advance digital
4    literacy and computer access.
5(Source: P.A. 94-734, eff. 4-28-06; 95-740, eff. 1-1-09.)
 
6    Section 35. The Illinois Income Tax Act is amended by
7changing Section 220 as follows:
 
8    (35 ILCS 5/220)
9    Sec. 220. Angel investment credit.
10    (a) As used in this Section:
11    "Applicant" means a corporation, partnership, limited
12liability company, or a natural person that makes an
13investment in a qualified new business venture. The term
14"applicant" does not include (i) a corporation, partnership,
15limited liability company, or a natural person who has a
16direct or indirect ownership interest of at least 51% in the
17profits, capital, or value of the qualified new business
18venture receiving the investment or (ii) a related member.
19    "Claimant" means an applicant certified by the Department
20who files a claim for a credit under this Section.
21    "Department" means the Department of Commerce and Economic
22Opportunity.
23    "Investment" means money (or its equivalent) given to a
24qualified new business venture, at a risk of loss, in

 

 

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1consideration for an equity interest of the qualified new
2business venture. The Department may adopt rules to permit
3certain forms of contingent equity investments to be
4considered eligible for a tax credit under this Section.
5    "Qualified new business venture" means a business that is
6registered with the Department under this Section.
7    "Related member" means a person that, with respect to the
8applicant, is any one of the following:
9        (1) An individual, if the individual and the members
10    of the individual's family (as defined in Section 318 of
11    the Internal Revenue Code) own directly, indirectly,
12    beneficially, or constructively, in the aggregate, at
13    least 50% of the value of the outstanding profits,
14    capital, stock, or other ownership interest in the
15    qualified new business venture that is the recipient of
16    the applicant's investment.
17        (2) A partnership, estate, or trust and any partner or
18    beneficiary, if the partnership, estate, or trust and its
19    partners or beneficiaries own directly, indirectly,
20    beneficially, or constructively, in the aggregate, at
21    least 50% of the profits, capital, stock, or other
22    ownership interest in the qualified new business venture
23    that is the recipient of the applicant's investment.
24        (3) A corporation, and any party related to the
25    corporation in a manner that would require an attribution
26    of stock from the corporation under the attribution rules

 

 

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1    of Section 318 of the Internal Revenue Code, if the
2    applicant and any other related member own, in the
3    aggregate, directly, indirectly, beneficially, or
4    constructively, at least 50% of the value of the
5    outstanding stock of the qualified new business venture
6    that is the recipient of the applicant's investment.
7        (4) A corporation and any party related to that
8    corporation in a manner that would require an attribution
9    of stock from the corporation to the party or from the
10    party to the corporation under the attribution rules of
11    Section 318 of the Internal Revenue Code, if the
12    corporation and all such related parties own, in the
13    aggregate, at least 50% of the profits, capital, stock, or
14    other ownership interest in the qualified new business
15    venture that is the recipient of the applicant's
16    investment.
17        (5) A person to or from whom there is attribution of
18    ownership of stock in the qualified new business venture
19    that is the recipient of the applicant's investment in
20    accordance with Section 1563(e) of the Internal Revenue
21    Code, except that for purposes of determining whether a
22    person is a related member under this paragraph, "20%"
23    shall be substituted for "5%" whenever "5%" appears in
24    Section 1563(e) of the Internal Revenue Code.
25    (b) For taxable years beginning after December 31, 2010,
26and ending on or before December 31, 2026, subject to the

 

 

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1limitations provided in this Section, a claimant may claim, as
2a credit against the tax imposed under subsections (a) and (b)
3of Section 201 of this Act, an amount equal to 25% of the
4claimant's investment made directly in a qualified new
5business venture. In order for an investment in a qualified
6new business venture to be eligible for tax credits, the
7business must have applied for and received certification
8under subsection (e) for the taxable year in which the
9investment was made prior to the date on which the investment
10was made. The credit under this Section may not exceed the
11taxpayer's Illinois income tax liability for the taxable year.
12If the amount of the credit exceeds the tax liability for the
13year, the excess may be carried forward and applied to the tax
14liability of the 5 taxable years following the excess credit
15year. The credit shall be applied to the earliest year for
16which there is a tax liability. If there are credits from more
17than one tax year that are available to offset a liability, the
18earlier credit shall be applied first. In the case of a
19partnership or Subchapter S Corporation, the credit is allowed
20to the partners or shareholders in accordance with the
21determination of income and distributive share of income under
22Sections 702 and 704 and Subchapter S of the Internal Revenue
23Code.
24    (c) The minimum amount an applicant must invest in any
25single qualified new business venture in order to be eligible
26for a credit under this Section is $10,000. The maximum amount

 

 

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1of an applicant's total investment made in any single
2qualified new business venture that may be used as the basis
3for a credit under this Section is $2,000,000.
4    (d) The Department shall implement a program to certify an
5applicant for an angel investment credit. Upon satisfactory
6review, the Department shall issue a tax credit certificate
7stating the amount of the tax credit to which the applicant is
8entitled. The Department shall annually certify that: (i) each
9qualified new business venture that receives an angel
10investment after January 1, 2018 under this Section has
11maintained a minimum employment threshold, as defined by rule,
12in the State (and continues to maintain a minimum employment
13threshold in the State for a period of no less than 3 years
14from the issue date of the last tax credit certificate issued
15by the Department with respect to such business pursuant to
16this Section); and (ii) the claimant's investment has been
17made and remains, except in the event of a qualifying
18liquidity event, in the qualified new business venture for no
19less than 3 years.
20    If an investment for which a claimant is allowed a credit
21under subsection (b) is held by the claimant for less than 3
22years, other than as a result of a permitted sale of the
23investment to person who is not a related member, the claimant
24shall pay to the Department of Revenue, in the manner
25prescribed by the Department of Revenue, the aggregate amount
26of the disqualified credits that the claimant received related

 

 

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1to the subject investment.
2    If the Department determines that a qualified new business
3venture failed to maintain a minimum employment threshold in
4the State through the date which is 3 years from the issue date
5of the last tax credit certificate issued by the Department
6with respect to the subject business pursuant to this Section,
7the claimant or claimants shall pay to the Department of
8Revenue, in the manner prescribed by the Department of
9Revenue, the aggregate amount of the disqualified credits that
10claimant or claimants received related to investments in that
11business.
12    (e) The Department shall implement a program to register
13qualified new business ventures for purposes of this Section.
14A business desiring registration under this Section shall be
15required to submit a full and complete application to the
16Department. A submitted application shall be effective only
17for the taxable year in which it is submitted, and a business
18desiring registration under this Section shall be required to
19submit a separate application in and for each taxable year for
20which the business desires registration. Further, if at any
21time prior to the acceptance of an application for
22registration under this Section by the Department one or more
23events occurs which makes the information provided in that
24application materially false or incomplete (in whole or in
25part), the business shall promptly notify the Department of
26the same. Any failure of a business to promptly provide the

 

 

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1foregoing information to the Department may, at the discretion
2of the Department, result in a revocation of a previously
3approved application for that business, or disqualification of
4the business from future registration under this Section, or
5both. The Department may register the business only if all of
6the following conditions are satisfied:
7        (1) it has its principal place of business in this
8    State;
9        (2) at least 51% of the employees employed by the
10    business are employed in this State;
11        (3) the business has the potential for increasing jobs
12    in this State, increasing capital investment in this
13    State, or both, as determined by the Department, and
14    either of the following apply:
15            (A) it is principally engaged in innovation in any
16        of the following: manufacturing; biotechnology;
17        nanotechnology; communications; agricultural
18        sciences; clean energy creation or storage technology;
19        processing or assembling products, including medical
20        devices, pharmaceuticals, computer software, computer
21        hardware, semiconductors, other innovative technology
22        products, or other products that are produced using
23        manufacturing methods that are enabled by applying
24        proprietary technology; or providing services that are
25        enabled by applying proprietary technology; or
26            (B) it is undertaking pre-commercialization

 

 

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1        activity related to proprietary technology that
2        includes conducting research, developing a new product
3        or business process, or developing a service that is
4        principally reliant on applying proprietary
5        technology;
6        (4) it is not principally engaged in real estate
7    development, insurance, banking, lending, lobbying,
8    political consulting, professional services provided by
9    attorneys, accountants, business consultants, physicians,
10    or health care consultants, wholesale or retail trade,
11    leisure, hospitality, transportation, or construction,
12    except construction of power production plants that derive
13    energy from a renewable energy resource, as defined in
14    Section 1 of the Illinois Power Agency Act;
15        (5) at the time it is first certified:
16            (A) it has fewer than 100 employees;
17            (B) it has been in operation in Illinois for not
18        more than 10 consecutive years prior to the year of
19        certification; and
20            (C) it has received not more than $10,000,000 in
21        aggregate investments;
22        (5.1) it agrees to maintain a minimum employment
23    threshold in the State of Illinois prior to the date which
24    is 3 years from the issue date of the last tax credit
25    certificate issued by the Department with respect to that
26    business pursuant to this Section;

 

 

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1        (6) (blank); and
2        (7) it has received not more than $4,000,000 in
3    investments that qualified for tax credits under this
4    Section.
5    (f) The Department, in consultation with the Department of
6Revenue, shall adopt rules to administer this Section. The
7aggregate amount of the tax credits that may be claimed under
8this Section for investments made in qualified new business
9ventures shall be limited at $10,000,000 per calendar year, of
10which $500,000 shall be reserved for investments made in
11qualified new business ventures which are minority-owned
12businesses, women-owned businesses, or businesses owned by a
13person with a disability (as those terms are used and defined
14in the Business Enterprise for Minorities, Women, and Persons
15with Disabilities Act), and an additional $500,000 shall be
16reserved for investments made in qualified new business
17ventures with their principal place of business in counties
18with a population of not more than 250,000. The foregoing
19annual allowable amounts shall be allocated by the Department,
20on a per calendar quarter basis and prior to the commencement
21of each calendar year, in such proportion as determined by the
22Department, provided that: (i) the amount initially allocated
23by the Department for any one calendar quarter shall not
24exceed 35% of the total allowable amount; (ii) any portion of
25the allocated allowable amount remaining unused as of the end
26of any of the first 3 calendar quarters of a given calendar

 

 

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1year shall be rolled into, and added to, the total allocated
2amount for the next available calendar quarter; and (iii) the
3reservation of tax credits for investments in minority-owned
4businesses, women-owned businesses, businesses owned by a
5person with a disability, and in businesses in counties with a
6population of not more than 250,000 is limited to the first 3
7calendar quarters of a given calendar year, after which they
8may be claimed by investors in any qualified new business
9venture.
10    (g) A claimant may not sell or otherwise transfer a credit
11awarded under this Section to another person.
12    (h) On or before March 1 of each year, the Department shall
13report to the Governor and to the General Assembly on the tax
14credit certificates awarded under this Section for the prior
15calendar year.
16        (1) This report must include, for each tax credit
17    certificate awarded:
18            (A) the name of the claimant and the amount of
19        credit awarded or allocated to that claimant;
20            (B) the name and address (including the county) of
21        the qualified new business venture that received the
22        investment giving rise to the credit, the North
23        American Industry Classification System (NAICS) code
24        applicable to that qualified new business venture, and
25        the number of employees of the qualified new business
26        venture; and

 

 

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1            (C) the date of approval by the Department of each
2        claimant's tax credit certificate.
3        (2) The report must also include:
4            (A) the total number of applicants and the total
5        number of claimants, including the amount of each tax
6        credit certificate awarded to a claimant under this
7        Section in the prior calendar year;
8            (B) the total number of applications from
9        businesses seeking registration under this Section,
10        the total number of new qualified business ventures
11        registered by the Department, and the aggregate amount
12        of investment upon which tax credit certificates were
13        issued in the prior calendar year; and
14            (C) the total amount of tax credit certificates
15        sought by applicants, the amount of each tax credit
16        certificate issued to a claimant, the aggregate amount
17        of all tax credit certificates issued in the prior
18        calendar year and the aggregate amount of tax credit
19        certificates issued as authorized under this Section
20        for all calendar years.
21    (i) For each business seeking registration under this
22Section after December 31, 2016, the Department shall require
23the business to include in its application the North American
24Industry Classification System (NAICS) code applicable to the
25business and the number of employees of the business at the
26time of application. Each business registered by the

 

 

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1Department as a qualified new business venture that receives
2an investment giving rise to the issuance of a tax credit
3certificate pursuant to this Section shall, for each of the 3
4years following the issue date of the last tax credit
5certificate issued by the Department with respect to such
6business pursuant to this Section, report to the Department
7the following:
8        (1) the number of employees and the location at which
9    those employees are employed, both as of the end of each
10    year;
11        (2) the amount of additional new capital investment
12    raised as of the end of each year, if any; and
13        (3) the terms of any liquidity event occurring during
14    such year; for the purposes of this Section, a "liquidity
15    event" means any event that would be considered an exit
16    for an illiquid investment, including any event that
17    allows the equity holders of the business (or any material
18    portion thereof) to cash out some or all of their
19    respective equity interests.
20(Source: P.A. 101-81, eff. 7-12-19; 102-16, eff. 6-17-21.)
 
21    Section 40. The Film Production Services Tax Credit Act of
222008 is amended by changing Section 45 as follows:
 
23    (35 ILCS 16/45)
24    Sec. 45. Evaluation of tax credit program; reports to the

 

 

10200HB5185ham002- 32 -LRB102 24773 RJF 36925 a

1General Assembly.
2    (a) The Department shall evaluate the tax credit program.
3The evaluation must include an assessment of the effectiveness
4of the program in creating and retaining new jobs in Illinois
5and of the revenue impact of the program, and may include a
6review of the practices and experiences of other states or
7nations with similar programs. Upon completion of this
8evaluation, the Department shall determine the overall success
9of the program, and may make a recommendation to extend,
10modify, or not extend the program based on this evaluation.
11    (b) At the end of each fiscal quarter, the Department must
12submit to the General Assembly a report that includes, without
13limitation, the following information:
14        (1) the economic impact of the tax credit program,
15    including the number of jobs created and retained,
16    including whether the job positions are above-the-line,
17    below-the-line, or extras entry level, management,
18    talent-related, vendor-related, or production-related;
19        (2) the amount of film production spending brought to
20    Illinois, including the amount of spending and type of
21    Illinois vendors hired in connection with an accredited
22    production; and
23        (3) an overall picture of whether the human
24    infrastructure of the motion picture industry in Illinois
25    reflects the geographical, racial and ethnic, gender, and
26    income-level diversity of the State of Illinois.

 

 

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1    (c) At the end of each fiscal year, the Department must
2submit to the General Assembly a report that includes the
3following information:
4        (1) an identification of each vendor that provided
5    goods or services that were included in an accredited
6    production's Illinois production spending, provided that
7    the accredited production's Illinois production spending
8    attributable to that vendor exceeds, in the aggregate,
9    $10,000 or 10% of the accredited production's Illinois
10    production spending, whichever is less;
11        (2) the amount paid to each identified vendor by the
12    accredited production;
13        (3) for each identified vendor, a statement as to
14    whether the vendor is a minority-owned business or a
15    women-owned business, as defined under Section 2 of the
16    Business Enterprise for Minorities, Women, and Persons
17    with Disabilities Act, based on the best efforts of an
18    accredited production; and
19        (4) a description of any steps taken by the Department
20    to encourage accredited productions to use vendors who are
21    a minority-owned business or a women-owned business.
22(Source: P.A. 100-391, eff. 8-25-17; 100-603, eff. 7-13-18;
23101-81, eff. 7-12-19.)
 
24    Section 45. The Southwestern Illinois Metropolitan and
25Regional Planning Act is amended by changing Section 35 as

 

 

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1follows:
 
2    (70 ILCS 1710/35)  (from Ch. 85, par. 1185)
3    Sec. 35. At the close of each fiscal year, the Commission
4shall prepare a complete report of its receipts and
5expenditures during the fiscal year. A copy of this report
6shall be filed with the Governor and with the treasurer of each
7county included in the Metropolitan and Regional Counties
8Area. In addition, on or before December 31 of each even
9numbered year, the Commission shall prepare jointly with the
10Department of Commerce and Economic Opportunity, a report of
11its activities during the biennium indicating how its funds
12were expended, indicating the amount of the appropriation
13requested for the next biennium and explaining how the
14appropriation will be utilized to carry out its
15responsibilities. A copy of this report shall be filed with
16the Governor, the Senate and the House of Representatives.
17(Source: P.A. 94-793, eff. 5-19-06.)
 
18    Section 50. The Illinois Groundwater Protection Act is
19amended by changing Section 4 as follows:
 
20    (415 ILCS 55/4)  (from Ch. 111 1/2, par. 7454)
21    Sec. 4. (a) There shall be established within State
22government an interagency committee which shall be known as
23the Interagency Coordinating Committee on Groundwater. The

 

 

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1Committee shall be composed of the Director, or his designee,
2of the following agencies:
3        (1) The Illinois Environmental Protection Agency, who
4    shall chair the Committee.
5        (2) The Illinois Department of Natural Resources.
6        (3) The Illinois Department of Public Health.
7        (4) The Office of Mines and Minerals within the
8    Department of Natural Resources.
9        (5) The Office of the State Fire Marshal.
10        (6) The Division of Water Resources of the Department
11    of Natural Resources.
12        (7) The Illinois Department of Agriculture.
13        (8) The Illinois Emergency Management Agency.
14        (9) The Illinois Department of Nuclear Safety.
15        (10) The Illinois Department of Commerce and Economic
16    Opportunity.
17    (b) The Committee shall meet not less than twice each
18calendar year and shall:
19        (1) Review and coordinate the State's policy on
20    groundwater protection.
21        (2) Review and evaluate State laws, regulations and
22    procedures that relate to groundwater protection.
23        (3) Review and evaluate the status of the State's
24    efforts to improve the quality of the groundwater and of
25    the State enforcement efforts for protection of the
26    groundwater and make recommendations on improving the

 

 

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1    State efforts to protect the groundwater.
2        (4) Recommend procedures for better coordination among
3    State groundwater programs and with local programs related
4    to groundwater protection.
5        (5) Review and recommend procedures to coordinate the
6    State's response to specific incidents of groundwater
7    pollution and coordinate dissemination of information
8    between agencies responsible for the State's response.
9        (6) Make recommendations for and prioritize the
10    State's groundwater research needs.
11        (7) Review, coordinate and evaluate groundwater data
12    collection and analysis.
13        (8) Beginning on January 1, 1990, report biennially to
14    the Governor and the General Assembly on groundwater
15    quality, quantity, and the State's enforcement efforts.
16    (c) The Chairman of the Committee shall propose a
17groundwater protection regulatory agenda for consideration by
18the Committee and the Council. The principal purpose of the
19agenda shall be to systematically consider the groundwater
20protection aspects of relevant federal and State regulatory
21programs and to identify any areas where improvements may be
22warranted. To the extent feasible, the agenda may also serve
23to facilitate a more uniform and coordinated approach toward
24protection of groundwaters in Illinois. Upon adoption of the
25final agenda by the Committee, the Chairman of the Committee
26shall assign a lead agency and any support agencies to prepare

 

 

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1a regulatory assessment report for each item on the agenda.
2Each regulatory assessment report shall specify the nature of
3the groundwater protection provisions being implemented and
4shall evaluate the results achieved therefrom. Special
5attention shall be given to any preventive measures being
6utilized for protection of groundwaters. The reports shall be
7completed in a timely manner. After review and consideration
8by the Committee, the reports shall become the basis for
9recommending further legislative or regulatory action.
10    (d) No later than January 1, 1992, the Interagency
11Coordinating Committee on Groundwater shall provide a
12comprehensive status report to the Governor and the General
13Assembly concerning implementation of this Act.
14    (e) The Committee shall consider findings and
15recommendations that are provided by the Council, and respond
16in writing regarding such matters. The Chairman of the
17Committee shall designate a liaison person to serve as a
18facilitator of communications with the Council.
19(Source: P.A. 94-793, eff. 5-19-06.)
 
20    Section 99. Effective date. This Act takes effect upon
21becoming law.".