HB3767 94TH GENERAL ASSEMBLY

LRB094 08771 JAM 38984 b

94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
HB3767

Introduced 2/25/2005, by Rep. Kathleen A. Ryg

SYNOPSIS AS INTRODUCED:

New Act

Creates the Location Matters Act. Requires that an applicant applying for State economic development assistance for a business location must 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 an economic development 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. Effective January 1, 2006.

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 Location Matters Act.

Section 5. Definitions. In this Act:

"Location efficient" means a project that maximizes the use of existing investments in infrastructure, avoids or minimizes additional government expenditures for new infrastructure, and has nearby housing affordable to the permanent workforce of the project; accessible and affordable mass transit or its equivalent; or some combination of both.

"Location efficiency report" means a report that is prepared by the applicant for State economic development assistance and follows this Act and any related Department guidelines, and that describes the existence of (i) affordable housing or (ii) accessible and affordable mass transit or its equivalent.

"Employee housing and transportation remediation plan" means a plan to increase affordable housing and transportation options for employees earning up to the median annual salary of the workforce at the project. The plan may include, but is not limited to, an employer-financed or 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.

"Accessible and affordable mass transit" means access to transit stops with regular and frequent service within one-half mile from the project site.

"Affordable housing" means owner-occupied or rental housing that costs, based on current census data for the municipality where the project is located, no more than 35% of the median salary at the project site, exclusive of the highest 10% of the site's salaries. If the project is located in an unincorporated area, "affordable housing" means no more than 35% of the median salary at the project site, excluding the highest 10% of the site's salaries, based on the median cost of rental or of owner-occupied housing in the county where the unincorporated area is located.

"Department" means the Department of Commerce and Economic Opportunity (DCEO) or its successor agency.

"Applicant" means a company or its representative that negotiates or applies for economic development assistance from DCEO.

"Economic development assistance" means (i) State tax credits and tax exemptions given as an incentive to an eligible company after certification by DCEO under the Economic Development for a Growing Economy Tax Credit Act (EDGE) and the Illinois Enterprise Zone Act, including the High Impact Business program, or under successor programs and (ii) matching grants under the Employer Training Investment Program or its successor programs.

"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 that infrastructure.

Section 10. Economic development assistance awards; priority.

(a) An applicant that also wants to be considered for increased economic development assistance or priority status in receiving that assistance shall submit a location efficiency report for the municipality or unincorporated area of a county where its facility is to 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) DCEO shall give an applicant priority and an increased tax credit or exemption or grant if the applicant's location efficiency report demonstrates that the applicant is seeking assistance for a project to be located in an area that satisfies this Act's standards for affordable housing and affordable and accessible mass transit. 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 and shall award an increase in State economic development assistance if an applicant submits, and the Department accepts, an applicant's employee housing and transportation remediation plan.

(c) Applicants locating or expanding at location-efficient sites, or with approved location efficiency plans, can receive (i) up to 10% more than the maximum allowable tax credits for which they are eligible under the Economic Development for a Growing Economy Tax Credit Act (EDGE) and the Illinois Enterprise Zone Act, including the High Impact Business program and (ii) grants under the Employer Training Investment Program (ETIP) up to 60% of approved project costs.

(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) DCEO 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. Companies that fail to do so or that make inadequate progress shall have their subsidy preference eliminated and pay back any related benefits. Applicants and submitted data are subject to all disclosure, reporting, and recapture provisions set forth in Public Act 93-552.

(b) By June 1, 2007 and by June 1 of each year thereafter, the Department shall include, when 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, 2006.