100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
SB2840

 

Introduced 2/13/2018, by Sen. Pamela J. Althoff

 

SYNOPSIS AS INTRODUCED:
 
20 ILCS 655/4.1
20 ILCS 655/5.2.1
20 ILCS 655/5.3  from Ch. 67 1/2, par. 608

    Amends the Illinois Enterprise Zone Act. Provides that enterprise zone applicants shall receive a specific score based on whether or not an applicant meets certain criteria (currently, the applicant receives a score based on the extent to which the applicant meets the criteria). Provides that the Enterprise Zone Board shall approve any application that receives at least 200 points, with the exception of a zone that has previously been decertified for cause. 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,
3represented in the General Assembly:
 
4    Section 5. The Illinois Enterprise Zone Act is amended by
5changing Sections 4.1, 5.2.1, and 5.3 as follows:
 
6    (20 ILCS 655/4.1)
7    Sec. 4.1. Department recommendations.
8    (a) For all applications that qualify under Section 4 of
9this Act, the Department shall issue recommendations by
10assigning a score to each applicant. The scores will be
11determined by the Department, based on whether the extent to
12which an applicant meets the criteria points under subsection
13(f) of Section 4 of this Act. Scores will be determined using
14the following scoring system:
15        (1) Fifty Up to 50 points if for the extent to which
16    the applicant meets or exceeds the criteria in item (1) of
17    subsection (f) of Section 4 of this Act, with points
18    awarded according to the severity of the unemployment.
19        (2) Fifty Up to 50 points if for the extent to which
20    the applicant meets or exceeds the criteria in item (2) of
21    subsection (f) of Section 4 of this Act, with points
22    awarded in accordance with the number of jobs created and
23    the aggregate amount of investment promised.

 

 

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

 

 

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1    government tax base.
2        (8) Fifty Up to 50 points if for the extent to which
3    the applicant meets or exceeds the criteria in item (8) of
4    subsection (f) of Section 4 of this Act, with points
5    awarded in accordance with the existence of significant
6    public infrastructure.
7        (9) Forty Up to 40 points if for the extent to which
8    the applicant meets or exceeds the criteria in item (9) of
9    subsection (f) of Section 4 of this Act, with points
10    awarded in accordance with the extent to which educational
11    programs exist for career preparation.
12        (10) Forty Up to 40 points if for the extent to which
13    the applicant meets or exceeds the criteria in item (10) of
14    subsection (f) of Section 4 of this Act, with points
15    awarded according to the severity of the change in
16    equalized assessed valuation.
17        (11) Fifty points for an applicant that is a current or
18    former enterprise zone that demonstrates progress in
19    addressing the criteria of Section 4 of this Act, as
20    included in the most recent approved application for the
21    zone.
22    (b) After assigning a score for each of the individual
23criteria using the point system as described in subsection (a),
24the Department shall then take the sum of the scores for each
25applicant and assign a final score. The Department shall then
26submit this information to the Board, as required in subsection

 

 

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1(c) of Section 5.2, as its recommendation.
2    (c) The changes made to this Section by this amendatory Act
3of the 100th General Assembly apply to applications for
4Enterprise Zones on file with the Department or the Board on or
5after the effective date of this amendatory Act of the 100th
6General Assembly.
7(Source: P.A. 97-905, eff. 8-7-12; 98-109, eff. 7-25-13.)
 
8    (20 ILCS 655/5.2.1)
9    Sec. 5.2.1. Enterprise Zone Board.
10    (a) An Enterprise Zone Board is hereby created within the
11Department.
12    (b) The Board shall consist of the following 5 members:
13        (1) the Director of Commerce and Economic Opportunity,
14    or his or her designee, who shall serve as chairperson;
15        (2) the Director of Revenue, or his or her designee;
16    and
17        (3) three members appointed by the Governor, with the
18    advice and consent of the Senate.
19    Board members shall serve without compensation but may be
20reimbursed for necessary expenses incurred in the performance
21of their duties.
22    (c) Each member appointed under item (3) of subsection (b)
23shall have at least 5 years of experience in business, economic
24development, or site location. Of the members appointed under
25item (3) of subsection (b): one member shall reside in Cook

 

 

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1County; one member shall reside in DuPage, Kane, Lake, McHenry,
2or Will County; and one member shall reside in a county other
3than Cook, DuPage, Kane, Lake, McHenry, or Will.
4    (d) Of the initial members appointed under item (3) of
5subsection (b): one member shall serve for a term of 2 years;
6one member shall serve for a term of 3 years; and one member
7shall serve for a term of 4 years. Thereafter, all members
8appointed under item (3) of subsection (b) shall serve for
9terms of 4 years. Members appointed under item (3) of
10subsection (b) may be reappointed. The Governor may remove a
11member appointed under item (3) of subsection (b) for
12incompetence, neglect of duty, or malfeasance in office.
13    (e) By September 30, 2015, and September 30 of each year
14thereafter, all applications filed by December 31 of the
15preceding calendar year and deemed qualified by the Department
16shall be approved or denied by the Board. If such application
17is not approved by September 30, the application shall be
18considered denied. If an application is denied, the Board shall
19inform the applicant of the specific reasons for the denial.
20    (f) A majority of the Board will determine whether an
21application is approved or denied. The Board is not, at any
22time, required to designate an enterprise zone.
23    (g) In determining which designated areas shall be approved
24and certified as enterprise zones, the Board shall approve any
25application that receives at least 200 points, as scored
26pursuant to Section 4.1, with the exception of any application

 

 

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1from an Enterprise Zone that has previously been decertified
2for cause pursuant to Section 5.4. In the case of an Enterprise
3Zone that has previously been decertified for cause, the Board
4may approve the application if it determines that the issues
5that caused the decertification have been corrected give
6preference to the extent to which the area meets the criteria
7set forth in Section 4.
8    (h) The changes made to this Section by this amendatory Act
9of the 100th General Assembly apply to applications for
10Enterprise Zones on file with the Department or the Board on or
11after the effective date of this amendatory Act of the 100th
12General Assembly.
13(Source: P.A. 97-905, eff. 8-7-12; 98-109, eff. 7-25-13.)
 
14    (20 ILCS 655/5.3)  (from Ch. 67 1/2, par. 608)
15    Sec. 5.3. Certification of Enterprise Zones; effective
16date.
17    (a) Certification of Board-approved designated Enterprise
18Zones shall be made by the Department by certification of the
19designating ordinance. The Department shall promptly issue a
20certificate for each Enterprise Zone upon approval by the
21Board. The certificate shall be signed by the Director of the
22Department, shall make specific reference to the designating
23ordinance, which shall be attached thereto, and shall be filed
24in the office of the Secretary of State. A certified copy of
25the Enterprise Zone Certificate, or a duplicate original

 

 

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1thereof, shall be recorded in the office of recorder of deeds
2of the county in which the Enterprise Zone lies.
3    (b) An Enterprise Zone certified prior to January 1, 2016
4or on or after January 1, 2017 shall be effective on January 1
5of the first calendar year after Department certification. An
6Enterprise Zone certified on or after January 1, 2016 and on or
7before December 31, 2016 shall be effective on the date of the
8Department's certification. The Department shall transmit a
9copy of the certification to the Department of Revenue, and to
10the designating municipality or county.
11    Upon certification of an Enterprise Zone, the terms and
12provisions of the designating ordinance shall be in effect, and
13may not be amended or repealed except in accordance with
14Section 5.4.
15    (c) With the exception of Enterprise Zones scheduled to
16expire before December 31, 2018, an Enterprise Zone designated
17before the effective date of this amendatory Act of the 97th
18General Assembly shall be in effect for 30 calendar years, or
19for a lesser number of years specified in the certified
20designating ordinance. Notwithstanding the foregoing, any
21Enterprise Zone in existence on the effective date of this
22amendatory Act of the 98th General Assembly that has a term of
2320 calendar years may be extended for an additional 10 calendar
24years upon amendment of the designating ordinance by the
25designating municipality or county and submission of the
26ordinance to the Department. The amended ordinance must be

 

 

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1properly recorded in the Office of Recorder of Deeds of each
2county in which the Enterprise Zone lies. Each Enterprise Zone
3in existence on the effective date of this amendatory Act of
4the 97th General Assembly that is scheduled to expire before
5July 1, 2016 may have its termination date extended until July
61, 2016 upon amendment of the designating ordinance by the
7designating municipality or county extending the termination
8date to July 1, 2016 and submission of the ordinance to the
9Department. The amended ordinance must be properly recorded in
10the Office of Recorder of Deeds of each county in which the
11Enterprise Zone lies. An Enterprise Zone designated on or after
12the effective date of this amendatory Act of the 97th General
13Assembly shall be in effect for a term of 15 calendar years, or
14for a lesser number of years specified in the certified
15designating ordinance. An enterprise zone designated on or
16after the effective date of this amendatory Act of the 97th
17General Assembly shall be subject to review by the Board after
1813 years for an additional 10-year designation beginning on the
19expiration date of the enterprise zone. During the review
20process, the Board shall consider the costs incurred by the
21State and units of local government as a result of tax benefits
22received by the enterprise zone. Enterprise Zones shall
23terminate at midnight of December 31 of the final calendar year
24of the certified term, except as provided in Section 5.4.
25    (d) No more than 12 Enterprise Zones may be certified by
26the Department in calendar year 1984, no more than 12

 

 

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1Enterprise Zones may be certified by the Department in calendar
2year 1985, no more than 13 Enterprise Zones may be certified by
3the Department in calendar year 1986, no more than 15
4Enterprise Zones may be certified by the Department in calendar
5year 1987, and no more than 20 Enterprise Zones may be
6certified by the Department in calendar year 1990. In other
7calendar years, no more than 13 Enterprise Zones may be
8certified by the Department. The Department may also designate
9up to 8 additional Enterprise Zones outside the regular
10application cycle if warranted by the extreme economic
11circumstances as determined by the Department. The Department
12may also designate one additional Enterprise Zone outside the
13regular application cycle if an aircraft manufacturer agrees to
14locate an aircraft manufacturing facility in the proposed
15Enterprise Zone. Notwithstanding any other provision of this
16Act, no more than 89 Enterprise Zones may be certified by the
17Department for the 10 calendar years commencing with 1983. The
187 additional Enterprise Zones authorized by Public Act 86-15
19shall not lie within municipalities or unincorporated areas of
20counties that abut or are contiguous to Enterprise Zones
21certified pursuant to this Section prior to June 30, 1989. The
227 additional Enterprise Zones (excluding the additional
23Enterprise Zone which may be designated outside the regular
24application cycle) authorized by Public Act 86-1030 shall not
25lie within municipalities or unincorporated areas of counties
26that abut or are contiguous to Enterprise Zones certified

 

 

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1pursuant to this Section prior to February 28, 1990. Beginning
2in calendar year 2004 and until December 31, 2008, one
3additional enterprise zone may be certified by the Department.
4In any calendar year, the Department may not certify more than
53 Zones located within the same municipality. The Department
6may certify Enterprise Zones in each of the 10 calendar years
7commencing with 1983. The Department may not certify more than
8a total of 18 Enterprise Zones located within the same county
9(whether within municipalities or within unincorporated
10territory) for the 10 calendar years commencing with 1983.
11Thereafter, the Department may not certify any additional
12Enterprise Zones, but may amend and rescind certifications of
13existing Enterprise Zones in accordance with Section 5.4.
14    (e) Notwithstanding any other provision of law, if (i) the
15county board of any county in which a current military base is
16located, in part or in whole, or in which a military base that
17has been closed within 20 years of the effective date of this
18amendatory Act of 1998 is located, in part or in whole, adopts
19a designating ordinance in accordance with Section 5 of this
20Act to designate the military base in that county as an
21enterprise zone and (ii) the property otherwise meets the
22qualifications for an enterprise zone as prescribed in Section
234 of this Act, then the Department may certify the designating
24ordinance or ordinances, as the case may be.
25    (f) Applications for Enterprise Zones that are scheduled to
26expire in 2016, including Enterprise Zones that have been

 

 

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1extended until 2016 by this amendatory Act of the 97th General
2Assembly, shall be submitted to the Department no later than
3December 31, 2014. At that time, the Zone becomes available for
4either the previously designated area or a different area to
5compete for designation. No preference for designation as a
6Zone will be given to the previously designated area.
7    For Enterprise Zones that are scheduled to expire on or
8after January 1, 2017, an application process shall begin 2
9years prior to the year in which the Zone expires. Applications
10for new Enterprise Zones shall be considered as set forth in
11Section 5.2. At that time, the Zone becomes available for
12either the previously designated area or a different area to
13compete for designation. No preference for designation as a
14Zone will be given to the previously designated area.
15    Each Enterprise Zone that reapplies for certification but
16does not receive a new certification shall expire on its
17scheduled termination date.
18    (g) The changes made to this Section by this amendatory Act
19of the 100th General Assembly apply to applications for
20Enterprise Zones on file with the Department or the Board on or
21after the effective date of this amendatory Act of the 100th
22General Assembly.
23(Source: P.A. 98-109, eff. 7-25-13; 99-615, eff. 7-22-16.)
 
24    Section 99. Effective date. This Act takes effect upon
25becoming law.