HB4442 93RD GENERAL ASSEMBLY

LRB093 18629 RXD 44354 b

93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004
HB4442

Introduced 02/03/04, by Kathleen A. Ryg

SYNOPSIS AS INTRODUCED:

New Act

Creates the Corporation Location Efficiency Act. Requires that an applicant applying for State economic development assistance for a business location provide data on affordable housing and mass transit in its vicinity. Provides that if data submitted by the applicant shows that affordable housing and mass transit are near the proposed work site, the Department of Commerce and Economic Opportunity shall grant the applicant a preference in awarding economic development assistance. Provides that if affordable housing and mass transit are not present near the proposed work site, the applicant can receive a preference only if it submits to the Department of Commerce and Economic Opportunity a plan showing how the applicant will address the housing and mass transit deficiency. Provides that applicants who fail to submit a satisfactory plan to the Department of Commerce and Economic Opportunity may still receive State economic development assistance, but the Department must make public its reasons for exemption. Effective January 1, 2005.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning business transactions.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. Short title. This Act may be cited as the Corporation Location Efficiency Act.

Section 5. Definitions. In this Act:

"Accessible and convenient public transit" means access to transit stops with regular and frequent service within one-half mile from the project site, if the project is located in a mass transit district.

"Affordable housing" means housing that costs no more than 35% of the average annual salary of the workforce. This is calculated by comparing the median rent or median cost of owner-occupied housing, based on current census data for the municipality where the project is located, to 35% of the average annual salary of the workforce. If the project is located in an unincorporated area, this analysis is based on the county median rent or median cost of owner-occupied housing.

"Applicant" means a company or its representative that negotiates or applies for economic development assistance from the Department of Commerce and Economic Opportunity.

"Average annual salary of the workforce" means the median salary at the project site, excluding the highest 10% of the site's salaries.

"Department" means the Department of Commerce and Economic Opportunity.

"Economic development assistance" means (1) tax credits and tax exemptions given as an incentive to a recipient business organization pursuant to an initial certification or an initial designation made by the Department of Commerce and Economic Opportunity under the Economic Development for a Growing Economy Tax Credit Act (EDGE) and the Illinois Enterprise Zone Act, including the High Impact Business program, (2) grants or loans given to a recipient as an incentive to a business organization pursuant to the Large Business Development Program, the Business Development Public Infrastructure Program, or the Critical Skill Shortages Initiative, and (3) all successor and subsequent programs and tax credits designed to promote large business relocations and expansions. "Economic development assistance" does not include assistance provided under the Illinois Enterprise Zone Act pursuant to local ordinance, participation loans, or financial transactions through statutorily authorized financial intermediaries in support of small business loans and investments or given in connection with the development of affordable housing.

"Employee housing and transportation plan" means a plan to increase housing and transportation options for employees earning the average annual salary of the workforce. The plan may include, but is not limited to, an employer-financed employer assisted housing program that can be supplemented by State or federal grants, shuttle services between the place of employment and existing transit stops or other reasonably accessible places, facilitation of employee carpooling, or similar services.

"Existence of infrastructure" means the existence at the proposed site of roads, sewers, sidewalks, and other utilities and a description of the investments or improvements, if any, that an applicant expects State or local government to make to such infrastructure.

"Location efficiency report" means a report that is prepared by the applicant and follows this Act and any Department guidelines and describes the existence of (1) affordable housing, (2) accessible and convenient public transit, and (3) infrastructure.

"Location efficient" means a project located at a site with the following characteristics: (1) maximizes the use of existing investments in infrastructure, (2) minimizes additional government expenditures on new publicly financed transportation or other infrastructure, and (3) affordable housing to the workforce of the applicant.

Section 10. Economic development assistance awards; priority.

(a) An applicant shall submit a location efficiency report for the municipality or unincorporated area of a county where its facility is located or will be located, along with the information reported under subsection (b) of Section 15 of the Corporate Accountability for Tax Expenditures Act, if it seeks economic development assistance from the State and employs or declares that it intends to employ at least 25 employees.

(b) The Department shall give an applicant priority in awarding economic development assistance if it determines from the applicant's location efficiency report that the applicant is seeking assistance in an area that is location efficient. If the Department determines from the location efficiency report that the applicant is seeking assistance in an area that is not location efficient, the Department shall give the applicant priority in awarding economic development assistance if the applicant submits and the Department accepts an employee housing and transportation plan.

(c) The Department shall make public its justification for awarding economic development assistance to any applicant whose location efficiency report did not demonstrate location efficiency at the time of announcing the award of the economic development assistance to the applicant.

(d) The Department shall provide technical assistance to employers requesting assistance in developing an appropriate employee housing and transportation plan.

Section 15. Summaries; progress reports.

(a) The Department shall include summaries of the initial employee housing and transportation plans for each assisted project in the annual compilation and publication of project progress reports required under subsection (d) of Section 20 of the Corporate Accountability for Tax Expenditures Act. All actual or projected State and local government infrastructure costs to support the exempted project shall also be made available at this time and updated as needed in the annual progress reports submitted by companies subsidized by the State, as required under the Corporate Accountability for Tax Expenditures Act.

(b) By June 1, 2006 and by June 1 of each year thereafter, the Department shall include, where appropriate, data on the outcomes or status of approved employee housing and transportation plans in the project progress reports required under the Corporate Accountability for Tax Expenditure Act.

Section 99. Effective date. This Act takes effect January 1, 2005.