SB0179 EngrossedLRB097 04009 JDS 44048 b

1    AN ACT concerning government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The River Edge Redevelopment Zone Act is amended
5by adding Section 10-15 as follows:
 
6    (65 ILCS 115/10-15 new)
7    Sec. 10-15. Riverfront Development Fund.
8    (a) Purpose. The General Assembly has determined that it is
9in the interest of the State of Illinois to promote development
10that will protect, promote, and improve the riverfront areas of
11a financially distressed city designated under the Financially
12Distressed City Law.
13    (b) Definitions. As used in this Section:
14        "Agreement" means the agreement between an eligible
15    employer and the Department under the provisions of
16    subsection (f) of this Section.
17        "Department" means the Department of Commerce and
18    Economic Opportunity.
19        "Director" means the Director of Commerce and Economic
20    Opportunity.
21        "Eligible developer" means an individual, partnership,
22    corporation, or other entity that develops within a river
23    edge redevelopment zone that is located within a

 

 

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1    municipality designated as a financially distressed city.
2        "Eligible employer" means an individual, partnership,
3    corporation, or other entity that employs full-time
4    employees within a river edge redevelopment zone that is
5    located within a municipality designated as a financially
6    distressed city.
7        "Full-time employee" means an individual who is
8    employed for consideration for at least 35 hours each week
9    or who renders any other standard of service generally
10    accepted by industry custom or practice as full-time
11    employment. An individual for whom a W-2 is issued by a
12    Professional Employer Organization (PEO) is a full-time
13    employee if employed in the service of the eligible
14    employer for consideration for at least 35 hours each week
15    or who renders any other standard of service generally
16    accepted by industry custom or practice as full-time
17    employment.
18        "Incremental income tax" means the total amount
19    withheld from the compensation of new employees under
20    Article 7 of the Illinois Income Tax Act arising from
21    employment by an eligible employer.
22        "Infrastructure" means roads, access roads, streets,
23    bridges, sidewalks, water and sewer line extensions, water
24    distribution and purification facilities, waste disposal
25    systems, sewage treatment facilities, stormwater drainage
26    and retention facilities, gas and electric utility line

 

 

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1    extensions, or other improvements that are essential to the
2    development of the project that is the subject of an
3    agreement.
4        "New employee" means a full-time employee first
5    employed by an eligible employer in the project that is the
6    subject of an agreement between the Department and an
7    eligible developer and who is hired after the eligible
8    developer enters into the agreement, but does not include:
9            (1) an employee of the eligible employer who
10        performs a job that (i) existed for at least 6 months
11        before the employee was hired and (ii) was previously
12        performed by another employee;
13            (2) an employee of the eligible employer who was
14        previously employed in Illinois by a related member of
15        the eligible employer and whose employment was shifted
16        to the eligible employer after the eligible employer
17        entered into the agreement; or
18            (3) a child, grandchild, parent, or spouse, other
19        than a spouse who is legally separated from the
20        individual, of any individual who has a direct or an
21        indirect ownership interest of at least 5% in the
22        profits, capital, or value of the eligible employer.
23        Notwithstanding item (2) of this definition, an
24    employee may be considered a new employee under the
25    agreement if the employee performs a job that was
26    previously performed by an employee who was:

 

 

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1            (A) treated under the agreement as a new employee;
2        and
3            (B) promoted by the eligible employer to another
4        job.
5        "Professional Employer Organization" (PEO) means an
6    employee leasing company, as defined in Section
7    206.1(A)(2) of the Illinois Unemployment Insurance Act.
8        "Related member" means a person or entity that, with
9    respect to the eligible employer during any portion of the
10    taxable year, is any one of the following:
11            (1) an individual stockholder, if the stockholder
12        and the members of the stockholder's family (as defined
13        in Section 318 of the Internal Revenue Code) own
14        directly, indirectly, beneficially, or constructively,
15        in the aggregate, at least 50% of the value of the
16        eligible employer's outstanding stock;
17            (2) a partnership, estate, or trust and any partner
18        or beneficiary, if the partnership, estate, or trust,
19        and its partners or beneficiaries own directly,
20        indirectly, or beneficially, or constructively, in the
21        aggregate, at least 50% of the profits, capital, stock,
22        or value of the eligible employer;
23            (3) a corporation, and any party related to the
24        corporation in a manner that would require an
25        attribution of stock from the corporation to the party
26        or from the party to the corporation under the

 

 

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1        attribution rules of Section 318 of the Internal
2        Revenue Code, if the taxpayer owns directly,
3        indirectly, beneficially, or constructively at least
4        50% of the value of the corporation's outstanding
5        stock;
6            (4) a corporation and any party related to that
7        corporation in a manner that would require an
8        attribution of stock from the corporation to the party
9        or from the party to the corporation under the
10        attribution rules of Section 318 of the Internal
11        Revenue Code, if the corporation and all such related
12        parties own in the aggregate at least 50% of the
13        profits, capital, stock, or value of the eligible
14        employer; or
15            (5) a person to or from whom there is attribution
16        of stock ownership in accordance with Section 1563(e)
17        of the Internal Revenue Code, except, for purposes of
18        determining whether a person is a related member under
19        this definition, 20% shall be substituted for 5%
20        wherever 5% appears in Section 1563(e) of the Internal
21        Revenue Code.
22    (c) The Riverfront Development Fund. The Riverfront
23Development Fund is created as a special fund in the State
24treasury. As soon as possible after the first day of each
25month, upon certification of the Department of Revenue, the
26Comptroller shall order transferred and the Treasurer shall

 

 

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1transfer from the General Revenue Fund to the Riverfront
2Development Fund an amount equal to the incremental income tax
3for the previous month attributable to a project that is the
4subject of an agreement.
5    (d) Grants from the Riverfront Development Fund. In State
6fiscal years 2012 through 2021, all moneys in the Riverfront
7Development Fund, held solely for the benefit of eligible
8developers, shall be appropriated to the Department to make
9infrastructure grants to eligible developers pursuant to
10agreements.
11    (e) Limitation on grant amounts. The total amount of a
12grant to an eligible developer shall not exceed the lesser of:
13        (1) $3,000,000 in each State fiscal year; or
14        (2) the total amount of infrastructure costs incurred
15    by the eligible developer with respect to a project that is
16    the subject of an agreement.
17    No eligible developer shall receive moneys that are
18attributable to a project that is not the subject of the
19developer's agreement with the Department.
20    (f) Agreements with applicants. The Department shall enter
21into an agreement with an eligible developer who is entitled to
22grants under this Section. The agreement must include all of
23the following:
24        (1) A detailed description of the project that is the
25    subject of the agreement, including the location of the
26    project, the number of jobs created by the project, and

 

 

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1    project costs. For purposes of this subsection, "project
2    costs" includes the costs of the project incurred or to be
3    incurred by the eligible developer, including
4    infrastructure costs, but excludes the value of State or
5    local incentives, including tax increment financing and
6    deductions, credits, or exemptions afforded to an employer
7    located in an enterprise zone.
8        (2) A requirement that the eligible developer shall
9    maintain operations at the project location, stated as a
10    minimum number of years not to exceed 10 years.
11        (3) A specific method for determining the number of new
12    employees attributable to the project.
13        (4) A requirement that the eligible developer shall
14    report monthly to the Department and the Department of
15    Revenue the number of new employees and the incremental
16    income tax withheld in connection with the new employees.
17        (5) A requirement that the Department is authorized to
18    verify with the Department of Revenue the amounts reported
19    under paragraph (4).
 
20    Section 10. The State Finance Act is amended by adding
21Section 5.811 as follows:
 
22    (30 ILCS 105/5.811 new)
23    Sec. 5.811. The Riverfront Development Fund.
 
24    Section 99. Effective date. This Act takes effect upon

 

 

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1becoming law.