Full Text of HB3707 101st General Assembly
HB3707 101ST GENERAL ASSEMBLY |
| | 101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020 HB3707 Introduced , by Rep. Mark L. Walker SYNOPSIS AS INTRODUCED: | | 20 ILCS 655/3 | from Ch. 67 1/2, par. 603 | 20 ILCS 655/4 | from Ch. 67 1/2, par. 604 | 20 ILCS 655/4.1 | | 20 ILCS 655/5.1 | from Ch. 67 1/2, par. 606 | 20 ILCS 655/5.2 | from Ch. 67 1/2, par. 607 | 20 ILCS 655/5.3 | from Ch. 67 1/2, par. 608 | 20 ILCS 655/5.4 | from Ch. 67 1/2, par. 609 | 20 ILCS 655/8.1 | |
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Amends the Illinois Enterprise Zone Act. In a Section concerning eligibility for an Enterprise Zone based on the local labor market area, provides that the Department of Commerce and Economic Opportunity may consider information released in the most recent American Community Survey (currently, the federal decennial census only). Provides that the Department of Commerce and Economic Opportunity may award partial points if the applicant demonstrates specific job creation and investment below specified thresholds. Contains provisions concerning provisional certification and provisional decertification. Provides that, for Enterprise Zones that are scheduled to expire on or after January 1, 2022, an application process shall begin 5 years prior to the year in which the Zone expires. Provides that the Department of Commerce and Economic Opportunity may consider written comments or any other information regarding a pending Enterprise Zone application submitted after the deadline and received prior to the decision on all pending applications. Makes changes concerning the total number of Enterprise Zones that may be certified. Effective immediately. |
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| | | FISCAL NOTE ACT MAY APPLY | |
| | A BILL FOR |
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| 1 | | AN ACT concerning State government.
| 2 | | Be it enacted by the People of the State of Illinois, | 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Enterprise Zone Act is amended by | 5 | | changing Sections 3, 4, 4.1, 5.1, 5.2, 5.3, 5.4, and 8.1 as | 6 | | follows:
| 7 | | (20 ILCS 655/3) (from Ch. 67 1/2, par. 603)
| 8 | | Sec. 3. Definitions. As used in this Act, the following | 9 | | words shall
have the meanings ascribed to them, unless the | 10 | | context otherwise requires:
| 11 | | (a) "Department" means the Department of Commerce and | 12 | | Economic Opportunity.
| 13 | | (b) "Enterprise Zone" means an area of the State certified | 14 | | by the Department
as an Enterprise Zone pursuant to this Act.
| 15 | | (c) "Depressed Area" means an area in which pervasive | 16 | | poverty, unemployment
and economic distress exist.
| 17 | | (d) "Designated Zone Organization" means an association or | 18 | | entity: (1)
the members of which are substantially all | 19 | | residents of the Enterprise Zone;
(2) the board of directors of | 20 | | which is elected by the members of the organization;
(3) which | 21 | | satisfies the criteria set forth in Section 501(c) (3) or | 22 | | 501(c) (4) of the
Internal Revenue Code; and (4) which exists | 23 | | primarily for the purpose of
performing within such area or |
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| 1 | | zone for the benefit of the residents and businesses
thereof | 2 | | any of the functions set forth in Section 8 of this Act.
| 3 | | (e) "Agency" means each officer, board, commission and | 4 | | agency created
by the Constitution, in the executive branch of | 5 | | State government, other
than the State Board of Elections; each | 6 | | officer, department, board, commission,
agency, institution, | 7 | | authority, university, body politic and corporate of
the State; | 8 | | and each administrative unit or corporate outgrowth of the | 9 | | State
government which is created by or pursuant to statute, | 10 | | other than units
of local government and their officers, school | 11 | | districts and boards of election
commissioners; each | 12 | | administrative unit or corporate outgrowth of the above
and as | 13 | | may be created by executive order of the Governor. No entity | 14 | | shall
be considered an "agency" for the purposes of this Act | 15 | | unless authorized
by law to make rules or regulations.
| 16 | | (f) "Rule" means each agency statement of general | 17 | | applicability that implements,
applies, interprets or | 18 | | prescribes law or policy, but does not include (i)
statements | 19 | | concerning only the internal management of an agency and not
| 20 | | affecting private rights or procedures available to persons or | 21 | | entities
outside the agency, (ii) intra-agency memoranda, or | 22 | | (iii) the prescription
of standardized forms.
| 23 | | (g) "Board" means the Enterprise Zone Board created in | 24 | | Section 5.2.1. | 25 | | (h) "Local labor market area" means an economically | 26 | | integrated area within which individuals can reside and find |
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| 1 | | employment within a reasonable distance or can readily change | 2 | | jobs without changing their place of residence. | 3 | | (i) "Full-time equivalent job" means a job in which the new | 4 | | employee works for the recipient or for a corporation under | 5 | | contract to the recipient at a rate of at least 35 hours per | 6 | | week. A recipient who employs labor or services at a specific | 7 | | site or facility under contract with another may declare one | 8 | | full-time, permanent job for every 1,820 man hours worked per | 9 | | year under that contract. Vacations, paid holidays, and sick | 10 | | time are included in this computation. Overtime is not | 11 | | considered a part of regular hours. | 12 | | (j) "Full-time retained job" means any employee defined as | 13 | | having a full-time or full-time equivalent job preserved at a | 14 | | specific facility or site, the continuance of which is | 15 | | threatened by a specific and demonstrable threat, which shall | 16 | | be specified in the application for development assistance. A | 17 | | recipient who employs labor or services at a specific site or | 18 | | facility under contract with another may declare one retained | 19 | | employee per year for every 1,750 man hours worked per year | 20 | | under that contract, even if different individuals perform | 21 | | on-site labor or services. | 22 | | (Source: P.A. 97-905, eff. 8-7-12; 98-463, eff. 8-16-13.)
| 23 | | (20 ILCS 655/4) (from Ch. 67 1/2, par. 604)
| 24 | | Sec. 4. Qualifications for enterprise zones. | 25 | | (1) An area is qualified to become an enterprise zone |
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| 1 | | which:
| 2 | | (a) is a contiguous area, provided that a zone area may | 3 | | exclude wholly
surrounded territory within its boundaries;
| 4 | | (b) comprises a minimum of one-half square mile and not | 5 | | more than 12
square miles, or 15 square miles if the zone | 6 | | is located within the
jurisdiction of 4 or more counties or | 7 | | municipalities, in total area,
exclusive of lakes and | 8 | | waterways;
however, in such cases where the enterprise zone | 9 | | is a joint effort of
three or more units of government, or | 10 | | two or more units of government if
situated in a township | 11 | | which is divided by a municipality of 1,000,000 or
more | 12 | | inhabitants, and where the certification has been in
effect | 13 | | at least one year, the total area shall comprise a minimum | 14 | | of
one-half square mile and not more than thirteen square | 15 | | miles in total area
exclusive of lakes and waterways;
| 16 | | (c) (blank);
| 17 | | (d) (blank);
| 18 | | (e) is (1) entirely within a municipality or (2) | 19 | | entirely within
the unincorporated
areas of a county, | 20 | | except where reasonable need is established for such
zone | 21 | | to cover portions of more than one municipality or county | 22 | | or (3)
both comprises (i) all or part of a municipality and | 23 | | (ii) an unincorporated
area of a county; and
| 24 | | (f) meets 3 or more of the following criteria: | 25 | | (1) all or part of the local labor market area has | 26 | | had an annual average unemployment rate of at least |
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| 1 | | 120% of the State's annual average unemployment rate | 2 | | for the most recent calendar year or the most recent | 3 | | fiscal year as reported by the Department of Employment | 4 | | Security; | 5 | | (2) designation will result in the development of | 6 | | substantial employment opportunities by creating or | 7 | | retaining a minimum aggregate of 1,000 full-time | 8 | | equivalent jobs due to an aggregate investment of | 9 | | $100,000,000 or more, and will help alleviate the | 10 | | effects of poverty and unemployment within the local | 11 | | labor market area; | 12 | | (3) at least one of the following applies to the | 13 | | local labor market area: (A) all or part of the local | 14 | | labor market area has a poverty rate of at least 20% | 15 | | according to the latest federal decennial census, the | 16 | | most recent American Community Survey released by the | 17 | | U.S. Census Bureau, or other appropriate data source | 18 | | produced by the U.S. Census Bureau; (B) 50% or more of | 19 | | children in the local labor market area are eligible to | 20 | | participate in the federal free lunch or reduced-price | 21 | | meals program according to reported statistics from | 22 | | the State Board of Education, or 20% or more households | 23 | | in the local labor market area receive food stamps or | 24 | | assistance under the Supplemental Nutrition Assistance | 25 | | Program ("SNAP") according to the latest federal | 26 | | decennial census or other data from the U.S. Census |
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| 1 | | Bureau ; | 2 | | (4) an abandoned coal mine, a brownfield (as | 3 | | defined in Section 58.2 of the Environmental | 4 | | Protection Act), or an inactive nuclear-powered | 5 | | nuclear powered electrical generation facility where | 6 | | spent nuclear fuel is stored on-site is located in the | 7 | | proposed zone area, or all or a portion of the proposed | 8 | | zone was declared a federal disaster area in the 3 | 9 | | years preceding the date of application; | 10 | | (5) the local labor market area contains a presence | 11 | | of large employers that have downsized over the years, | 12 | | the labor market area has experienced plant closures in | 13 | | the 5 years prior to the date of application affecting | 14 | | more than 50 workers, or the local labor market area | 15 | | has experienced State or federal facility closures in | 16 | | the 5 years prior to the date of application affecting | 17 | | more than 50 workers; | 18 | | (6) based on data from Multiple Listing Service | 19 | | information or other suitable sources, the local labor | 20 | | market area contains a high floor vacancy rate of | 21 | | industrial or commercial properties, vacant or | 22 | | demolished commercial and industrial structures are | 23 | | prevalent in the local labor market area, or industrial | 24 | | structures in the local labor market area are not used | 25 | | because of age, deterioration, relocation of the | 26 | | former occupants, or cessation of operation; |
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| 1 | | (7) the applicant demonstrates a substantial plan | 2 | | for using the designation to improve the State and | 3 | | local government tax base, including income, sales, | 4 | | and property taxes , including a plan for disposal of | 5 | | publicly-owned real property by the methods described | 6 | | in Section 10 of this Act ; | 7 | | (8) significant public infrastructure is present | 8 | | in the local labor market area in addition to a plan | 9 | | for infrastructure development and improvement; | 10 | | (9) high schools or community colleges located | 11 | | within the local labor market area are engaged in ACT | 12 | | Work Keys, Manufacturing Skills Standard | 13 | | Certification, or other industry-based credentials | 14 | | that prepare students for careers; | 15 | | (10) (blank); or the change in equalized assessed | 16 | | valuation of industrial and/or commercial properties | 17 | | in the 5 years prior to the date of application is | 18 | | equal to or less than 50% of the State average change | 19 | | in equalized assessed valuation for industrial and/or | 20 | | commercial properties, as applicable, for the same | 21 | | period of time; or | 22 | | (11) the applicant demonstrates a substantial plan | 23 | | for using the designation to encourage: (i) | 24 | | participation by businesses owned by minorities, | 25 | | women, and persons with disabilities, as those terms | 26 | | are defined in the Business Enterprise for Minorities, |
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| 1 | | Women, and Persons with Disabilities Act; and (ii) the | 2 | | hiring of minorities, women, and persons with | 3 | | disabilities. | 4 | | As provided in Section 10-5.3 of the River Edge | 5 | | Redevelopment Zone Act, upon the expiration of the term of each | 6 | | River Edge Redevelopment Zone in existence on August 7, 2012 | 7 | | ( the effective date of Public Act 97-905) this amendatory Act | 8 | | of the 97th General Assembly , that River Edge Redevelopment | 9 | | Zone will become available for its previous designee or a new | 10 | | applicant to compete for designation as an enterprise zone. No | 11 | | preference for designation will be given to the previous | 12 | | designee of the zone. | 13 | | (2) Any criteria established by the Department or by law | 14 | | which utilize the rate
of unemployment for a particular area | 15 | | shall provide that all persons who
are not presently employed | 16 | | and have exhausted all unemployment benefits
shall be | 17 | | considered unemployed, whether or not such persons are actively
| 18 | | seeking employment.
| 19 | | (Source: P.A. 100-838, eff. 8-13-18; 100-1149, eff. 12-14-18; | 20 | | revised 1-3-19.)
| 21 | | (20 ILCS 655/4.1) | 22 | | Sec. 4.1. Department recommendations. | 23 | | (a) For all applications that qualify under Section 4 of | 24 | | this Act, the Department shall issue recommendations by | 25 | | assigning a score to each applicant. The scores will be |
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| 1 | | determined by the Department, based on the extent to which an | 2 | | applicant meets the criteria points under subsection (f) of | 3 | | Section 4 of this Act. Scores will be determined using the | 4 | | following scoring system: | 5 | | (1) Up to 50 points for the extent to which the | 6 | | applicant meets or exceeds the criteria in item (1) of | 7 | | subsection (f) of Section 4 of this Act, with points | 8 | | awarded according to the severity of the unemployment. | 9 | | (2) Up to 50 points for the extent to which the | 10 | | applicant meets or exceeds the criteria in item (2) of | 11 | | subsection (f) of Section 4 of this Act, with points | 12 | | awarded in accordance with the number of jobs created and | 13 | | the aggregate amount of investment promised. The | 14 | | Department may award partial points on a pro rata basis | 15 | | under this paragraph (2) if the applicant demonstrates | 16 | | specific job creation and investment below the thresholds | 17 | | set forth in paragraph (2) of subsection (f) of Section 4. | 18 | | (3) Up to 40 points for the extent to which the | 19 | | applicant meets or exceeds the criteria in item (3) of | 20 | | subsection (f) of Section 4 of this Act, with points | 21 | | awarded in accordance with the severity of the unemployment | 22 | | rate according to the latest federal decennial census. | 23 | | (4) Up to 30 points for the extent to which the | 24 | | applicant meets or exceeds the criteria in item (4) of | 25 | | subsection (f) of Section 4 of this Act, with points | 26 | | awarded in accordance with the severity of the |
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| 1 | | environmental impact of the abandoned coal mine, | 2 | | brownfield, or federal disaster area. | 3 | | (5) Up to 50 points for the extent to which the | 4 | | applicant meets or exceeds the criteria in item (5) of | 5 | | subsection (f) of Section 4 of this Act, with points | 6 | | awarded in accordance with the severity of the applicable | 7 | | facility closures or downsizing. | 8 | | (6) Up to 40 points for the extent to which the | 9 | | applicant meets or exceeds the criteria in item (6) of | 10 | | subsection (f) of Section 4 of this Act, with points | 11 | | awarded in accordance with the severity and extent of the | 12 | | high floor vacancy or deterioration. | 13 | | (7) Up to 30 points for the extent to which the | 14 | | applicant meets or exceeds the criteria in item (7) of | 15 | | subsection (f) of Section 4 of this Act, with points | 16 | | awarded in accordance with the extent to which the | 17 | | application addresses a plan to improve the State and local | 18 | | government tax base , including a plan for disposal of | 19 | | publicly-owned real property . | 20 | | (8) Up to 50 points for the extent to which the | 21 | | applicant meets or exceeds the criteria in item (8) of | 22 | | subsection (f) of Section 4 of this Act, with points | 23 | | awarded in accordance with the existence of significant | 24 | | public infrastructure. | 25 | | (9) Up to 40 points for the extent to which the | 26 | | applicant meets or exceeds the criteria in item (9) of |
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| 1 | | subsection (f) of Section 4 of this Act, with points | 2 | | awarded in accordance with the extent to which educational | 3 | | programs exist for career preparation. | 4 | | (10) (Blank). Up to 40 points for the extent to which | 5 | | the applicant meets or exceeds the criteria in item (10) of | 6 | | subsection (f) of Section 4 of this Act, with points | 7 | | awarded according to the severity of the change in | 8 | | equalized assessed valuation. | 9 | | (11) Up to 40 points for the extent to which the | 10 | | applicant meets or exceeds the criteria in item (11) of | 11 | | subsection (f) of Section 4 of this Act. | 12 | | (12) In awarding points under paragraphs (1) through | 13 | | (9), the Department may adjust the scoring for applicants | 14 | | that are located entirely within a county with a population | 15 | | of less than 300,000 if the Department finds that the | 16 | | designation will help to alleviate the effects of poverty | 17 | | and unemployment within the proposed Enterprise Zone. | 18 | | (b) After assigning a score for each of the individual | 19 | | criteria using the point system as described in subsection (a), | 20 | | the Department shall then take the sum of the scores for each | 21 | | applicant and assign a final score. The Department shall then | 22 | | submit this information to the Board, as required in subsection | 23 | | (c) of Section 5.2, as its recommendation.
| 24 | | (Source: P.A. 100-838, eff. 8-13-18.)
| 25 | | (20 ILCS 655/5.1) (from Ch. 67 1/2, par. 606)
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| 1 | | Sec. 5.1. Application to Department. | 2 | | (a) A county or municipality which
has adopted an ordinance | 3 | | designating an area as an enterprise zone shall
make written | 4 | | application to the Department to have such proposed enterprise
| 5 | | zone certified by the Department as an Enterprise Zone. The | 6 | | application shall include:
| 7 | | (i) a certified copy of the ordinance designating the | 8 | | proposed zone;
| 9 | | (ii) a map of the proposed enterprise zone, showing | 10 | | existing streets and highways;
| 11 | | (iii) an analysis, and any appropriate supporting | 12 | | documents and statistics,
demonstrating that the proposed | 13 | | zone area is qualified in accordance with Section 4;
| 14 | | (iv) a statement detailing any tax, grant, and other | 15 | | financial incentives
or benefits, and any programs, to be | 16 | | provided by the municipality or county
to business | 17 | | enterprises within the zone, other than those provided in | 18 | | the
designating ordinance, which are not to be provided | 19 | | throughout the municipality
or county;
| 20 | | (v) a statement setting forth the economic development | 21 | | and planning objectives
for the zone;
| 22 | | (vi) a statement describing the functions, programs, | 23 | | and services to be
performed by designated zone | 24 | | organizations within the zone;
| 25 | | (vii) an estimate of the economic impact of the zone, | 26 | | considering all
of the tax incentives, financial benefits |
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| 1 | | and programs contemplated, upon
the revenues of the | 2 | | municipality or county;
| 3 | | (viii) a transcript of all public hearings on the zone;
| 4 | | (ix) in the case of a joint application, a statement | 5 | | detailing the need
for a zone covering portions of more | 6 | | than one municipality or county and
a description of the | 7 | | agreement between joint applicants; and
| 8 | | (x) such additional information as the Department by | 9 | | regulation may require.
| 10 | | (b) The Department may provide for provisional | 11 | | certification of substantially complete applications pending | 12 | | the receipt of any of the items identified in subsection (a) of | 13 | | this Section or any additional information requested by the | 14 | | Department. | 15 | | (Source: P.A. 82-1019.)
| 16 | | (20 ILCS 655/5.2) (from Ch. 67 1/2, par. 607)
| 17 | | Sec. 5.2. Department Review of Enterprise Zone | 18 | | Applications. | 19 | | (a) All
applications which are to be considered and acted | 20 | | upon by the Department
during a calendar year must be received | 21 | | by the Department no later than
December 31 of the preceding | 22 | | calendar year.
| 23 | | Any application received after December 31 of any calendar | 24 | | year shall
be held by the Department for consideration and | 25 | | action during the following
calendar year.
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| 1 | | Each enterprise zone application shall include a specific | 2 | | definition of the applicant's local labor market area. | 3 | | (a-5) The Department shall, no later than July 31, 2013, | 4 | | develop an application process for an enterprise zone | 5 | | application. The Department has emergency rulemaking authority | 6 | | for the purpose of application development only until 12 months | 7 | | after the effective date of this amendatory Act of the 97th | 8 | | General Assembly. | 9 | | (b) Upon receipt of an application from a county or | 10 | | municipality the Department
shall review the application to | 11 | | determine whether the designated area
qualifies as an | 12 | | enterprise zone under Section 4 of this Act.
| 13 | | (c) No later than June 30, the Department shall notify all | 14 | | applicant municipalities
and counties of the Department's | 15 | | determination of the qualification of their
respective | 16 | | designated enterprise zone areas, and shall send qualifying | 17 | | applications, including the applicant's scores for each of the | 18 | | items set forth in items (1) through (10) of subsection (a) of | 19 | | Section 4.1 and the applicant's final score under that Section, | 20 | | to the Board for the Board's consideration, along with | 21 | | supporting documentation of the basis for the Department's | 22 | | decision.
| 23 | | (d) If any such designated area is found to be qualified to | 24 | | be an enterprise
zone by the Department under subsection (c) of | 25 | | this Section, the Department shall, no later than July 15, send | 26 | | a letter of notification to each member of the General Assembly |
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| 1 | | whose legislative district or representative district contains | 2 | | all or part of the designated area and publish a notice in at
| 3 | | least one newspaper of general circulation within the proposed | 4 | | zone area
to notify the general public of the application and | 5 | | their opportunity to
comment. Such notice shall include a | 6 | | description of the area and a brief
summary of the application | 7 | | and shall indicate locations where the applicant
has provided | 8 | | copies of the application for public inspection. The notice
| 9 | | shall also indicate appropriate procedures for the filing of | 10 | | written comments
from zone residents, business, civic and other | 11 | | organizations and property
owners to the Department. The | 12 | | Department and the Board may consider written comments | 13 | | submitted pursuant to this Section or any other information | 14 | | regarding a pending enterprise zone application submitted | 15 | | after the deadline for enterprise zone application and received | 16 | | prior to the Board's decision on all pending applications.
| 17 | | (e) (Blank).
| 18 | | (f) (Blank).
| 19 | | (g) (Blank).
| 20 | | (h) (Blank).
| 21 | | (Source: P.A. 97-905, eff. 8-7-12; 98-109, eff. 7-25-13.)
| 22 | | (20 ILCS 655/5.3) (from Ch. 67 1/2, par. 608)
| 23 | | Sec. 5.3. Certification of Enterprise Zones; effective | 24 | | date.
| 25 | | (a) Certification of Board-approved designated Enterprise |
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| 1 | | Zones shall be made by the
Department by certification of the | 2 | | designating ordinance. The Department
shall promptly issue a | 3 | | certificate for each Enterprise Zone upon
approval by the | 4 | | Board. The certificate shall be signed by the Director of the
| 5 | | Department, shall make specific reference to the designating | 6 | | ordinance,
which shall be attached thereto, and shall be filed | 7 | | in the office of the
Secretary of State. A certified copy of | 8 | | the Enterprise Zone Certificate, or
a duplicate original | 9 | | thereof, shall be recorded in the office of recorder
of deeds | 10 | | of the county in which the Enterprise Zone lies.
| 11 | | (b) An Enterprise Zone certified prior to January 1, 2016 | 12 | | or on or after January 1, 2017 shall be effective on January 1 | 13 | | of the first calendar year after Department certification. An | 14 | | Enterprise Zone certified on or after January 1, 2016 and on or | 15 | | before December 31, 2016 shall be effective on the date of the | 16 | | Department's certification. The
Department shall transmit a | 17 | | copy of the certification to the Department
of Revenue, and to | 18 | | the designating municipality or county.
| 19 | | Upon certification of an Enterprise Zone, the terms and | 20 | | provisions of the
designating ordinance shall be in effect, and | 21 | | may not be amended or repealed
except in accordance with | 22 | | Section 5.4.
| 23 | | (c) With the exception of Enterprise Zones scheduled to | 24 | | expire before December 31, 2018, an Enterprise Zone designated | 25 | | before the effective date of this amendatory Act of the 97th | 26 | | General Assembly shall be in effect for 30 calendar years, or |
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| 1 | | for
a lesser number of years specified in the certified | 2 | | designating ordinance.
Notwithstanding the foregoing, any | 3 | | Enterprise Zone in existence on the effective date of this | 4 | | amendatory Act of the 98th General Assembly that has a term of | 5 | | 20 calendar years may be extended for an additional 10 calendar | 6 | | years upon amendment of the designating ordinance by the | 7 | | designating municipality or county and submission of the | 8 | | ordinance to the Department. The amended ordinance must be | 9 | | properly recorded in the Office of Recorder of Deeds of each | 10 | | county in which the Enterprise Zone lies. Each Enterprise Zone | 11 | | in existence on the effective date of this amendatory Act of | 12 | | the 97th General Assembly that is scheduled to expire before | 13 | | July 1, 2016 may have its termination date extended until July | 14 | | 1, 2016 upon amendment of the designating ordinance by the | 15 | | designating municipality or county extending the termination | 16 | | date to July 1, 2016 and submission of the ordinance to the | 17 | | Department. The amended ordinance must be properly recorded in | 18 | | the Office of Recorder of Deeds of each county in which the | 19 | | Enterprise Zone lies. An Enterprise Zone designated on or after | 20 | | the effective date of this amendatory Act of the 97th General | 21 | | Assembly shall be in effect for a term of 15 calendar years, or | 22 | | for a lesser number of years specified in the certified | 23 | | designating ordinance. An enterprise zone designated on or | 24 | | after the effective date of this amendatory Act of the 97th | 25 | | General Assembly shall be subject to review by the Board after | 26 | | 13 years for an additional 10-year designation beginning on the |
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| 1 | | expiration date of the enterprise zone. During the review | 2 | | process, the Board shall consider the costs incurred by the | 3 | | State and units of local government as a result of tax benefits | 4 | | received by the enterprise zone as well as whether the Zone has | 5 | | substantially implemented the plans and achieved the goals set | 6 | | forth in its original application, including satisfaction of | 7 | | the investment and job creation or retention information | 8 | | provided by the Applicant with respect to paragraph (f) of | 9 | | subsection (1) of Section 4 of the Act . Enterprise Zones shall | 10 | | terminate at midnight of December 31 of the final
calendar year | 11 | | of the certified term, except as provided in Section 5.4.
| 12 | | (d) Except for Enterprise Zones authorized under | 13 | | subsection (f), Zones that become available for designation | 14 | | pursuant to Section 10-5.3 of the River Edge Redevelopment Zone | 15 | | Act, or those designated pursuant to another statutory | 16 | | authority providing for the creation of Enterprise Zones, no No | 17 | | more than a total of 97 12 Enterprise Zones may be certified by | 18 | | the Department
and in existence in any calendar year 1984, no | 19 | | more than 12 Enterprise Zones may be certified
by the | 20 | | Department in calendar year 1985, no more than 13 Enterprise
| 21 | | Zones may be certified by the Department in calendar year 1986, | 22 | | no
more than 15 Enterprise Zones may be certified by the | 23 | | Department in
calendar year 1987, and no more than 20 | 24 | | Enterprise Zones may be certified
by the Department in calendar | 25 | | year 1990. In other calendar years, no more
than 13 Enterprise | 26 | | Zones may be certified by the Department.
The Department may |
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| 1 | | also designate up to 8 additional Enterprise Zones
outside the | 2 | | regular application cycle if warranted by the extreme economic
| 3 | | circumstances as determined by the Department. The Department | 4 | | may also
designate one additional Enterprise Zone outside the | 5 | | regular application
cycle if an aircraft manufacturer agrees to | 6 | | locate
an aircraft manufacturing facility in the proposed | 7 | | Enterprise Zone.
Notwithstanding any
other provision of this | 8 | | Act, no more than 89 Enterprise Zones may be
certified by the | 9 | | Department for the 10 calendar years commencing with 1983.
The | 10 | | 7 additional Enterprise Zones authorized by Public Act
86-15 | 11 | | shall not lie within municipalities or unincorporated areas of
| 12 | | counties that abut or are contiguous to Enterprise Zones | 13 | | certified pursuant
to this Section prior to June 30, 1989. The | 14 | | 7 additional Enterprise
Zones (excluding the additional | 15 | | Enterprise Zone which may be designated
outside the regular | 16 | | application cycle) authorized by Public Act 86-1030
shall not | 17 | | lie within municipalities or unincorporated areas of counties
| 18 | | that abut or are contiguous to Enterprise Zones certified | 19 | | pursuant to this
Section prior to February 28, 1990. Beginning | 20 | | in calendar year 2004 and until
December 31, 2008, one | 21 | | additional enterprise zone may be certified by the
Department . | 22 | | In any calendar year, the
Department
may not certify more than | 23 | | 3 Zones located within the same municipality. The
Department | 24 | | may certify Enterprise Zones in each of the 10 calendar years
| 25 | | commencing with 1983. The Department may not certify more than | 26 | | a total of
18 Enterprise Zones located within the same county |
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| 1 | | (whether within
municipalities or within unincorporated | 2 | | territory) for the 10 calendar years
commencing with 1983. | 3 | | Thereafter, the Department may not certify any
additional | 4 | | Enterprise Zones, but may amend and rescind certifications of
| 5 | | existing Enterprise Zones in accordance with Section 5.4 . | 6 | | Beginning in calendar year 2019 and for any year in which there | 7 | | are at least 4 Zones available for designation, at least 25% of | 8 | | Zones available for designation in a given calendar year must | 9 | | be awarded to Zones located in counties with populations of | 10 | | less than 300,000 unless there are no applicants from such | 11 | | locations for that calendar year.
| 12 | | (e) Notwithstanding any other provision of law, if (i) the | 13 | | county board of
any county in which a current military base is | 14 | | located, in part or in whole, or
in which a military
base that | 15 | | has been closed within 20 years of the effective date of this
| 16 | | amendatory Act of 1998 is located, in part or in whole, adopts | 17 | | a designating
ordinance in accordance with Section 5 of this | 18 | | Act to designate the military
base in that county as an | 19 | | enterprise zone and (ii) the property otherwise
meets the
| 20 | | qualifications for an enterprise zone as prescribed in Section | 21 | | 4 of this Act,
then the Department may certify the designating | 22 | | ordinance or ordinances, as the
case may be.
| 23 | | (f) Applications for Enterprise Zones that are scheduled to | 24 | | expire in 2016, including Enterprise Zones that have been | 25 | | extended until 2016 by this amendatory Act of the 97th General | 26 | | Assembly, shall be submitted to the Department no later than |
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| 1 | | December 31, 2014. At that time, the Zone becomes available for | 2 | | either the previously designated area or a different area to | 3 | | compete for designation. No preference for designation as a | 4 | | Zone will be given to the previously designated area. | 5 | | For Enterprise Zones that are scheduled to expire on or | 6 | | after January 1, 2017 and prior to January 1, 2022 , an | 7 | | application process shall begin 2 years prior to the year in | 8 | | which the Zone expires. At that time, the Zone becomes | 9 | | available for either the previously designated area or a | 10 | | different area to compete for designation. For Enterprise Zones | 11 | | that are scheduled to expire on or after January 1, 2022, an | 12 | | application process shall begin 5 years prior to the year in | 13 | | which the Zone expires. At that time, the Zone becomes | 14 | | available for either the previously designated area or a | 15 | | different area to compete for designation. No preference for | 16 | | designation as a Zone will be given to the previously | 17 | | designated area. | 18 | | Each Enterprise Zone that reapplies for certification but | 19 | | does not receive a new certification shall expire on its | 20 | | scheduled termination date. | 21 | | (Source: P.A. 98-109, eff. 7-25-13; 99-615, eff. 7-22-16.)
| 22 | | (20 ILCS 655/5.4) (from Ch. 67 1/2, par. 609)
| 23 | | Sec. 5.4.
Amendment and Decertification of Enterprise
| 24 | | Zones.
| 25 | | (a) The terms of a certified enterprise zone designating |
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| 1 | | ordinance
may be amended to
| 2 | | (i) alter the boundaries of the Enterprise Zone, or
| 3 | | (ii) expand, limit or repeal tax incentives or benefits | 4 | | provided in
the ordinance, or
| 5 | | (iii) alter the termination date of the zone, or
| 6 | | (iv) make technical corrections in the enterprise zone | 7 | | designating
ordinance; but such amendment shall not be | 8 | | effective unless the
Department issues an amended | 9 | | certificate for the Enterprise Zone, approving
the amended | 10 | | designating ordinance. Upon the adoption of any ordinance
| 11 | | amending or repealing the
terms of a certified enterprise | 12 | | zone designating ordinance, the municipality
or county | 13 | | shall promptly file with the Department an application for | 14 | | approval
thereof, containing substantially the same | 15 | | information as required for an
application under Section | 16 | | 5.1 insofar as material to the proposed changes.
The | 17 | | municipality or county must hold a public hearing on the | 18 | | proposed changes
as specified in Section 5 and, if the | 19 | | amendment is to effectuate the
limitation of tax abatements | 20 | | under Section 5.4.1, then the public notice of the
hearing | 21 | | shall state that property that is in both the enterprise | 22 | | zone and a
redevelopment project area may not receive tax | 23 | | abatements unless within 60 days
after the adoption of the | 24 | | amendment to the designating ordinance the
municipality | 25 | | has determined that eligibility for tax abatements has been
| 26 | | established,
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| 1 | | (v) include an area within another municipality or | 2 | | county as part of
the designated enterprise zone provided | 3 | | the requirements of Section 4 are
complied with, or
| 4 | | (vi) effectuate the limitation of tax abatements under | 5 | | Section
5.4.1.
| 6 | | (b) The Department shall approve or disapprove a proposed | 7 | | amendment to
a certified enterprise zone within 90 days of its | 8 | | receipt of the application
from the municipality or county. The | 9 | | Department may not approve changes
in a Zone which are not in | 10 | | conformity with this Act, as now or hereafter
amended, or with | 11 | | other applicable laws. If the Department issues an amended
| 12 | | certificate for an Enterprise Zone, the amended certificate, | 13 | | together with
the amended zone designating ordinance, shall be | 14 | | filed, recorded and
transmitted as provided in Section 5.3.
| 15 | | (c) An Enterprise Zone may be decertified by joint action | 16 | | of the
Department and the designating county or municipality in | 17 | | accordance with this
Section.
The designating county or | 18 | | municipality shall conduct at least one public
hearing within | 19 | | the zone prior to its adoption of an ordinance of
| 20 | | de-designation. The mayor of the designating municipality or | 21 | | the chairman of
the county
board of the designating county | 22 | | shall execute a joint decertification
agreement with the | 23 | | Department. A decertification of an Enterprise Zone shall
not
| 24 | | become effective until at least 6 months after the execution of | 25 | | the
decertification
agreement, which shall be filed in the | 26 | | office of the Secretary of State.
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| 1 | | (d) An Enterprise Zone may be decertified for cause by
the | 2 | | Department in accordance with this Section. Prior to
| 3 | | decertification: (1) the Department shall notify the chief | 4 | | elected official
of the designating county or municipality in | 5 | | writing of the specific
deficiencies which provide cause for | 6 | | decertification; (2) the Department
shall place the | 7 | | designating county or municipality on probationary status for
| 8 | | at least 6 months during which time corrective action may be
| 9 | | achieved in the enterprise zone by the designating county or | 10 | | municipality;
and, (3) the Department
shall conduct at least | 11 | | one public hearing within the zone. If such
corrective action | 12 | | is not achieved during the probationary period, the
Department | 13 | | shall issue an amended certificate
signed by the Director of | 14 | | the Department decertifying the enterprise zone,
which | 15 | | certificate shall be filed in the
office of the Secretary of | 16 | | State. A certified copy of the amended
enterprise zone | 17 | | certificate, or a duplicate original thereof, shall be
recorded | 18 | | in the office of recorder of the county in which the enterprise
| 19 | | zone lies, and shall be provided to the chief elected official | 20 | | of the
designating county or municipality. Decertification of | 21 | | an Enterprise Zone
shall not become effective until 60 days | 22 | | after the date of filing.
| 23 | | (d-1) The Department shall provisionally decertify any | 24 | | Enterprise Zone that fails to report any capital investment, | 25 | | job creation or retention, or State tax expenditures for 3 | 26 | | consecutive calendar years. Prior to provisional |
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| 1 | | decertification: (1) the Department shall notify the chief | 2 | | elected official of the designating county or municipality in | 3 | | writing of the specific deficiencies which provide cause for | 4 | | decertification; (2) the Department shall place the | 5 | | designating county or municipality on probationary status for | 6 | | at least 6 months during which time corrective action may be | 7 | | achieved in the Enterprise Zone by the designating county or | 8 | | municipality; and (3) the Department shall conduct at least one | 9 | | public hearing within the Zone. If such corrective action is | 10 | | not achieved during the probationary period, the Department | 11 | | shall issue an amended certificate signed by the Director of | 12 | | the Department provisionally decertifying the Enterprise Zone | 13 | | as of the scheduled termination date of the then-current | 14 | | designation. In the event that the provisionally-decertified | 15 | | Zone was approved and designated after the 101st General | 16 | | Assembly and has been in existence for less than 15 years, such | 17 | | Zone shall not be eligible for an additional 10-year | 18 | | designation after the expiration date of the original Zone set | 19 | | forth in subsection (c) of Section 5.3. Further, if such | 20 | | corrective action is not achieved during the probationary | 21 | | period provided for in this Section, following such | 22 | | probationary period the Zone becomes available for a different | 23 | | area to compete for designation. | 24 | | (e) In the event of a decertification, provisional | 25 | | decertification, or an amendment reducing the length
of the | 26 | | term or the area of an Enterprise Zone or the adoption of an |
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| 1 | | ordinance
reducing or eliminating tax benefits in an Enterprise | 2 | | Zone, all benefits
previously extended within the Zone pursuant | 3 | | to this Act or pursuant to
any other Illinois law providing | 4 | | benefits specifically to or within Enterprise
Zones shall | 5 | | remain in effect for the original stated term of the Enterprise
| 6 | | Zone, with respect to business enterprises within the Zone on | 7 | | the effective
date of such decertification , provisional | 8 | | decertification, or amendment, and with respect to individuals
| 9 | | participating in urban homestead
programs under this Act.
| 10 | | (f) Except as otherwise provided in Section 5.4.1, with | 11 | | respect to
business enterprises (or expansions thereof) which
| 12 | | are proposed or under development within a Zone at the time of | 13 | | a
decertification
or an amendment reducing the length of the | 14 | | term of the Zone, or excluding
from the Zone area the site of | 15 | | the proposed enterprise, or an ordinance
reducing or | 16 | | eliminating tax benefits in a Zone, such business enterprise
| 17 | | shall be entitled to the benefits previously applicable within | 18 | | the Zone
for the original stated term of the Zone, if the | 19 | | business enterprise
establishes:
| 20 | | (i) that the proposed business enterprise or expansion
| 21 | | has been committed
to be located within the Zone;
| 22 | | (ii) that substantial and binding financial | 23 | | obligations have been made
towards the development of such | 24 | | enterprise; and
| 25 | | (iii) that such commitments have been made in | 26 | | reasonable reliance on
the benefits and programs which were |
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| 1 | | to have been applicable to the enterprise
by reason of the | 2 | | Zone, including in the case of a reduction in term of a
| 3 | | zone, the original length of the term.
| 4 | | In declaratory judgment actions under this paragraph, the | 5 | | Department and
the designating municipality or county shall be | 6 | | necessary parties defendant.
| 7 | | (Source: P.A. 90-258, eff. 7-30-97.)
| 8 | | (20 ILCS 655/8.1) | 9 | | Sec. 8.1. Accounting. | 10 | | (a) Any business receiving tax incentives due to its | 11 | | location within an Enterprise Zone or its designation as a High | 12 | | Impact Business must annually report to the Department of | 13 | | Revenue information reasonably required by the Department of | 14 | | Revenue to enable the Department to verify and calculate the | 15 | | total Enterprise Zone or High Impact Business tax benefits for | 16 | | property taxes and taxes imposed by the State that are received | 17 | | by the business, broken down by incentive category and | 18 | | enterprise zone, if applicable. Reports will be due no later | 19 | | than May 31 of each year and shall cover the previous calendar | 20 | | year. The first report will be for the 2012 calendar year and | 21 | | will be due no later than May 31, 2013. Failure to report data | 22 | | may result in ineligibility to receive incentives. To the | 23 | | extent that a business receiving tax incentives has obtained an | 24 | | Enterprise Zone Building Materials Exemption Certificate or a | 25 | | High Impact Business Building Materials Exemption Certificate, |
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| 1 | | that business is required to report those building materials | 2 | | exemption benefits only under subsection (a-5) of this Section. | 3 | | No additional reporting for those building materials exemption | 4 | | benefits is required under this subsection (a). In addition, if | 5 | | the Department determines that 80% or more of the businesses | 6 | | receiving tax incentives because of their location within a | 7 | | particular Enterprise Zone failed to submit the information | 8 | | required under this subsection (a) to the Department in any | 9 | | calendar year, then the Enterprise Zone may be decertified by | 10 | | the Department. The Department, in consultation with the | 11 | | Department of Revenue, is authorized to adopt rules governing | 12 | | ineligibility to receive exemptions, including the length of | 13 | | ineligibility. Factors to be considered in determining whether | 14 | | a business is ineligible shall include, but are not limited to, | 15 | | prior compliance with the reporting requirements, cooperation | 16 | | in discontinuing and correcting violations, the extent of the | 17 | | violation, and whether the violation was willful or | 18 | | inadvertent. | 19 | | (a-5) Each contractor or other entity that has been issued | 20 | | an Enterprise Zone Building Materials Exemption Certificate | 21 | | under Section 5k of the Retailers' Occupation Tax Act or a High | 22 | | Impact Business Building Materials Exemption Certificate under | 23 | | Section 5l of the Retailers' Occupation Tax Act shall annually | 24 | | report to the Department of Revenue the total value of the | 25 | | Enterprise Zone or High Impact Business building materials | 26 | | exemption from State taxes. Reports shall contain information |
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| 1 | | reasonably required by the Department of Revenue to enable it | 2 | | to verify and calculate the total tax benefits for taxes | 3 | | imposed by the State, and shall be broken down by Enterprise | 4 | | Zone. Reports are due no later than May 31 of each year and | 5 | | shall cover the previous calendar year. The first report will | 6 | | be for the 2013 calendar year and will be due no later than May | 7 | | 31, 2014. Failure to report data may result in revocation of | 8 | | the Enterprise Zone Building Materials Exemption Certificate | 9 | | or High Impact Business Building Materials Exemption | 10 | | Certificate issued to the contractor or other entity. | 11 | | The Department of Revenue is authorized to adopt rules | 12 | | governing revocation determinations, including the length of | 13 | | revocation. Factors to be considered in revocations shall | 14 | | include, but are not limited to, prior compliance with the | 15 | | reporting requirements, cooperation in discontinuing and | 16 | | correcting violations, and whether the certificate was used | 17 | | unlawfully during the preceding year. | 18 | | (b) Each person required to file a return under the Gas | 19 | | Revenue Tax Act, the Gas Use Tax Act, the Electricity Excise | 20 | | Tax Act, or the Telecommunications Excise Tax Act shall file, | 21 | | on or before May 31 of each year, a report with the Department | 22 | | of Revenue, in the manner and form required by the Department | 23 | | of Revenue, containing information reasonably required by the | 24 | | Department of Revenue to enable the Department of Revenue to | 25 | | calculate the amount of the deduction for taxes imposed by the | 26 | | State that is taken under each Act, respectively, due to the |
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| 1 | | location of a business in an Enterprise Zone or its designation | 2 | | as a High Impact Business. The report shall be itemized by | 3 | | business and the business location address. | 4 | | (c) Employers shall report their job creation, retention, | 5 | | and capital investment numbers within the zone annually to the | 6 | | Department of Revenue no later than May 31 of each calendar | 7 | | year. High Impact Businesses shall report their job creation, | 8 | | retention, and capital investment numbers to the Department of | 9 | | Revenue no later than May 31 of each year. With respect to job | 10 | | creation or retention, employers and High Impact Businesses | 11 | | shall use best efforts to submit diversity information related | 12 | | to the gender and ethnicity of such employees. | 13 | | (d) The Department of Revenue will aggregate and collect | 14 | | the tax, job, and capital investment data by Enterprise Zone | 15 | | and High Impact Business and report this information, formatted | 16 | | to exclude company-specific proprietary information, to the | 17 | | Department and the Board by August 1, 2013, and by August 1 of | 18 | | every calendar year thereafter. The Department will include | 19 | | this information in their required reports under Section 6 of | 20 | | this Act. The Board shall consider this information during the | 21 | | reviews required under subsection (d-5) of Section 5.4 of this | 22 | | Act and subsection (c) of Section 5.3 of this Act. | 23 | | (e) The Department of Revenue, in its discretion, may | 24 | | require that the reports filed under this Section be submitted | 25 | | electronically. | 26 | | (f) The Department of Revenue shall have the authority to |
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| 1 | | adopt rules as are reasonable and necessary to implement the | 2 | | provisions of this Section.
| 3 | | (Source: P.A. 97-905, eff. 8-7-12; 98-109, eff. 7-25-13.)
| 4 | | Section 99. Effective date. This Act takes effect January | 5 | | 1, 2020.
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