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Full Text of SB1923  96th General Assembly

SB1923sam001 96TH GENERAL ASSEMBLY

Sen. Susan Garrett

Filed: 3/25/2009

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 1923

2     AMENDMENT NO. ______. Amend Senate Bill 1923 by replacing
3 everything after the enacting clause with the following:
 
4     "Section 5. The Illinois Enterprise Zone Act is amended by
5 changing Section 5.5 as follows:
 
6     (20 ILCS 655/5.5)   (from Ch. 67 1/2, par. 609.1)
7     Sec. 5.5. High Impact Business.
8     (a) In order to respond to unique opportunities to assist
9 in the encouragement, development, growth and expansion of the
10 private sector through large scale investment and development
11 projects, the Department is authorized to receive and approve
12 applications for the designation of "High Impact Businesses" in
13 Illinois subject to the following conditions:
14         (1) such applications may be submitted at any time
15     during the year;
16         (2) such business is not located, at the time of

 

 

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1     designation, in an enterprise zone designated pursuant to
2     this Act;
3         (3) the business intends to do one or more of the
4     following:
5             (A) the business intends to make a minimum
6         investment of $12,000,000 which will be placed in
7         service in qualified property and intends to create 500
8         full-time equivalent jobs at a designated location in
9         Illinois or intends to make a minimum investment of
10         $30,000,000 which will be placed in service in
11         qualified property and intends to retain 1,500
12         full-time jobs at a designated location in Illinois.
13         The business must certify in writing that the
14         investments would not be placed in service in qualified
15         property and the job creation or job retention would
16         not occur without the tax credits and exemptions set
17         forth in subsection (b) of this Section. The terms
18         "placed in service" and "qualified property" have the
19         same meanings as described in subsection (h) of Section
20         201 of the Illinois Income Tax Act; or
21             (B) the business intends to establish a new
22         electric generating facility at a designated location
23         in Illinois. "New electric generating facility", for
24         purposes of this Section, means a newly-constructed
25         electric generation plant or a newly-constructed
26         generation capacity expansion at an existing electric

 

 

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1         generation plant, including the transmission lines and
2         associated equipment that transfers electricity from
3         points of supply to points of delivery, and for which
4         such new foundation construction commenced not sooner
5         than July 1, 2001. Such facility shall be designed to
6         provide baseload electric generation and shall operate
7         on a continuous basis throughout the year; and (i)
8         shall have an aggregate rated generating capacity of at
9         least 1,000 megawatts for all new units at one site if
10         it uses natural gas as its primary fuel and foundation
11         construction of the facility is commenced on or before
12         December 31, 2004, or shall have an aggregate rated
13         generating capacity of at least 400 megawatts for all
14         new units at one site if it uses coal or gases derived
15         from coal as its primary fuel and shall support the
16         creation of at least 150 new Illinois coal mining jobs,
17         or (ii) shall be funded through a federal Department of
18         Energy grant before December 31, 2010 and shall support
19         the creation of Illinois coal-mining jobs, or (iii)
20         shall use coal gasification or integrated
21         gasification-combined cycle units that generate
22         electricity or chemicals, or both, and shall support
23         the creation of Illinois coal-mining jobs. The
24         business must certify in writing that the investments
25         necessary to establish a new electric generating
26         facility would not be placed in service and the job

 

 

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1         creation in the case of a coal-fueled plant would not
2         occur without the tax credits and exemptions set forth
3         in subsection (b-5) of this Section. The term "placed
4         in service" has the same meaning as described in
5         subsection (h) of Section 201 of the Illinois Income
6         Tax Act; or
7             (B-5) the business intends to establish a new
8         gasification facility at a designated location in
9         Illinois. As used in this Section, "new gasification
10         facility" means a newly constructed coal gasification
11         facility that generates chemical feedstocks or
12         transportation fuels derived from coal (which may
13         include, but are not limited to, methane, methanol, and
14         nitrogen fertilizer), that supports the creation or
15         retention of Illinois coal-mining jobs, and that
16         qualifies for financial assistance from the Department
17         before December 31, 2010. A new gasification facility
18         does not include a pilot project located within
19         Jefferson County or within a county adjacent to
20         Jefferson County for synthetic natural gas from coal;
21         or
22             (C) the business intends to establish production
23         operations at a new coal mine, re-establish production
24         operations at a closed coal mine, or expand production
25         at an existing coal mine at a designated location in
26         Illinois not sooner than July 1, 2001; provided that

 

 

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1         the production operations result in the creation of 150
2         new Illinois coal mining jobs as described in
3         subdivision (a)(3)(B) of this Section, and further
4         provided that the coal extracted from such mine is
5         utilized as the predominant source for a new electric
6         generating facility. The business must certify in
7         writing that the investments necessary to establish a
8         new, expanded, or reopened coal mine would not be
9         placed in service and the job creation would not occur
10         without the tax credits and exemptions set forth in
11         subsection (b-5) of this Section. The term "placed in
12         service" has the same meaning as described in
13         subsection (h) of Section 201 of the Illinois Income
14         Tax Act; or
15             (D) the business intends to construct new
16         transmission facilities or upgrade existing
17         transmission facilities at designated locations in
18         Illinois, for which construction commenced not sooner
19         than July 1, 2001. For the purposes of this Section,
20         "transmission facilities" means transmission lines
21         with a voltage rating of 115 kilovolts or above,
22         including associated equipment, that transfer
23         electricity from points of supply to points of delivery
24         and that transmit a majority of the electricity
25         generated by a new electric generating facility
26         designated as a High Impact Business in accordance with

 

 

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1         this Section. The business must certify in writing that
2         the investments necessary to construct new
3         transmission facilities or upgrade existing
4         transmission facilities would not be placed in service
5         without the tax credits and exemptions set forth in
6         subsection (b-5) of this Section. The term "placed in
7         service" has the same meaning as described in
8         subsection (h) of Section 201 of the Illinois Income
9         Tax Act; or and
10             (E) the business intends to establish a new wind
11         power facility at a designated location in Illinois.
12         For purposes of this Section, "new wind power facility"
13         means a newly constructed electric generation
14         facility, or a newly constructed expansion of an
15         existing electric generation facility, placed in
16         service on or after July 1, 2009, that generates
17         electricity using wind energy devices, and such
18         facility shall be deemed to include all associated
19         transmission lines, substations, and other equipment
20         related to the generation of electricity from wind
21         energy devices. For purposes of this Section, "wind
22         energy device" means any device, with a nameplate
23         capacity of at least 0.5 megawatts, that is used in the
24         process of converting kinetic energy from the wind to
25         generate electricity; and
26         (4) no later than 90 days after an application is

 

 

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

 

 

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1 exemptions described in the following Acts: Section 51 of the
2 Retailers' Occupation Tax Act, Section 9-222 and Section
3 9-222.1A of the Public Utilities Act, and subsection (h) of
4 Section 201 of the Illinois Income Tax Act; however, the
5 credits and exemptions authorized under Section 9-222 and
6 Section 9-222.1A of the Public Utilities Act, and subsection
7 (h) of Section 201 of the Illinois Income Tax Act shall not be
8 authorized until the new electric generating facility, the new
9 gasification facility, the new transmission facility, or the
10 new, expanded, or reopened coal mine is operational, except
11 that a new electric generating facility whose primary fuel
12 source is natural gas is eligible only for the exemption under
13 Section 5l of the Retailers' Occupation Tax Act.
14     (b-6) Businesses designated as High Impact Businesses
15 pursuant to subdivision (a)(3)(E) of this Section shall qualify
16 for the exemptions described in Section 5l of the Retailers'
17 Occupation Tax Act; any business so designated as a High Impact
18 Business being, for purposes of this Section, a "Wind Energy
19 Business".
20     (c) High Impact Businesses located in federally designated
21 foreign trade zones or sub-zones are also eligible for
22 additional credits, exemptions and deductions as described in
23 the following Acts: Section 9-221 and Section 9-222.1 of the
24 Public Utilities Act; and subsection (g) of Section 201, and
25 Section 203 of the Illinois Income Tax Act.
26     (d) Except for businesses contemplated under subdivision

 

 

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1 (a)(3)(E) of this Section, existing Existing Illinois
2 businesses which apply for designation as a High Impact
3 Business must provide the Department with the prospective plan
4 for which 1,500 full-time jobs would be eliminated in the event
5 that the business is not designated.
6     (e) Except for new wind power facilities contemplated under
7 subdivision (a)(3)(E) of this Section, new New proposed
8 facilities which apply for designation as High Impact Business
9 must provide the Department with proof of alternative
10 non-Illinois sites which would receive the proposed investment
11 and job creation in the event that the business is not
12 designated as a High Impact Business.
13     (f) Except for businesses contemplated under subdivision
14 (a)(3)(E) of this Section, in In the event that a business is
15 designated a High Impact Business and it is later determined
16 after reasonable notice and an opportunity for a hearing as
17 provided under the Illinois Administrative Procedure Act, that
18 the business would have placed in service in qualified property
19 the investments and created or retained the requisite number of
20 jobs without the benefits of the High Impact Business
21 designation, the Department shall be required to immediately
22 revoke the designation and notify the Director of the
23 Department of Revenue who shall begin proceedings to recover
24 all wrongfully exempted State taxes with interest. The business
25 shall also be ineligible for all State funded Department
26 programs for a period of 10 years.

 

 

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1     (g) The Department shall revoke a High Impact Business
2 designation if the participating business fails to comply with
3 the terms and conditions of the designation. However, the
4 penalties for new wind power facilities or Wind Energy
5 Businesses for failure to comply with any of the terms or
6 conditions of the Illinois Prevailing Wage Act shall be only
7 those penalties identified in the Illinois Prevailing Wage Act,
8 and the Department shall not revoke a High Impact Business
9 designation as a result of the failure to comply with any of
10 the terms or conditions of the Illinois Prevailing Wage Act in
11 relation to a new wind power facility or a Wind Energy
12 Business.
13     (h) Prior to designating a business, the Department shall
14 provide the members of the General Assembly and Commission on
15 Government Forecasting and Accountability with a report
16 setting forth the terms and conditions of the designation and
17 guarantees that have been received by the Department in
18 relation to the proposed business being designated.
19 (Source: P.A. 94-65, eff. 6-21-05; 95-18, eff. 7-30-07.)
 
20     Section 10. The Prevailing Wage Act is amended by changing
21 Section 2 as follows:
 
22     (820 ILCS 130/2)  (from Ch. 48, par. 39s-2)
23     Sec. 2. This Act applies to the wages of laborers,
24 mechanics and other workers employed in any public works, as

 

 

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1 hereinafter defined, by any public body and to anyone under
2 contracts for public works. This includes any maintenance,
3 repair, assembly, or disassembly work performed on equipment
4 whether owned, leased, or rented.
5     As used in this Act, unless the context indicates
6 otherwise:
7     "Public works" means all fixed works constructed by any
8 public body, other than work done directly by any public
9 utility company, whether or not done under public supervision
10 or direction, or paid for wholly or in part out of public
11 funds. "Public works" as defined herein includes all projects
12 financed in whole or in part with bonds issued under the
13 Industrial Project Revenue Bond Act (Article 11, Division 74 of
14 the Illinois Municipal Code), the Industrial Building Revenue
15 Bond Act, the Illinois Finance Authority Act, the Illinois
16 Sports Facilities Authority Act, or the Build Illinois Bond
17 Act, and all projects financed in whole or in part with loans
18 or other funds made available pursuant to the Build Illinois
19 Act. "Public works" also includes all projects financed in
20 whole or in part with funds from the Fund for Illinois' Future
21 under Section 6z-47 of the State Finance Act, funds for school
22 construction under Section 5 of the General Obligation Bond
23 Act, funds authorized under Section 3 of the School
24 Construction Bond Act, funds for school infrastructure under
25 Section 6z-45 of the State Finance Act, and funds for
26 transportation purposes under Section 4 of the General

 

 

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1 Obligation Bond Act. "Public works" also includes all projects
2 financed in whole or in part with funds from the Department of
3 Commerce and Economic Opportunity under the Illinois Renewable
4 Fuels Development Program Act for which there is no project
5 labor agreement. "Public works" also includes all projects at
6 leased facility property used for airport purposes under
7 Section 35 of the Local Government Facility Lease Act. "Public
8 works" also includes the construction of a new wind power
9 facility by a business designated as a High Impact Business
10 under Section 5.5(a)(3)(E) of the Illinois Enterprise Zone Act.
11     "Construction" means all work on public works involving
12 laborers, workers or mechanics. This includes any maintenance,
13 repair, assembly, or disassembly work performed on equipment
14 whether owned, leased, or rented.
15     "Locality" means the county where the physical work upon
16 public works is performed, except (1) that if there is not
17 available in the county a sufficient number of competent
18 skilled laborers, workers and mechanics to construct the public
19 works efficiently and properly, "locality" includes any other
20 county nearest the one in which the work or construction is to
21 be performed and from which such persons may be obtained in
22 sufficient numbers to perform the work and (2) that, with
23 respect to contracts for highway work with the Department of
24 Transportation of this State, "locality" may at the discretion
25 of the Secretary of the Department of Transportation be
26 construed to include two or more adjacent counties from which

 

 

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1 workers may be accessible for work on such construction.
2     "Public body" means the State or any officer, board or
3 commission of the State or any political subdivision or
4 department thereof, or any institution supported in whole or in
5 part by public funds, and includes every county, city, town,
6 village, township, school district, irrigation, utility,
7 reclamation improvement or other district and every other
8 political subdivision, district or municipality of the state
9 whether such political subdivision, municipality or district
10 operates under a special charter or not.
11     The terms "general prevailing rate of hourly wages",
12 "general prevailing rate of wages" or "prevailing rate of
13 wages" when used in this Act mean the hourly cash wages plus
14 fringe benefits for training and apprenticeship programs
15 approved by the U.S. Department of Labor, Bureau of
16 Apprenticeship and Training, health and welfare, insurance,
17 vacations and pensions paid generally, in the locality in which
18 the work is being performed, to employees engaged in work of a
19 similar character on public works.
20 (Source: P.A. 94-750, eff. 5-9-06; 95-341, eff. 8-21-07.)
 
21     Section 99. Effective date. This Act takes effect July 1,
22 2009.".