Sen. James F. Clayborne, Jr.

Filed: 2/29/2012

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 179

2    AMENDMENT NO. ______. Amend Senate Bill 179 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The River Edge Redevelopment Zone Act is
5amended by 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.

 

 

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1        "Department" means the Department of Commerce and
2    Economic Opportunity.
3        "Director" means the Director of Commerce and Economic
4    Opportunity.
5        "Eligible developer" means an individual, partnership,
6    corporation, or other entity that develops within a river
7    edge redevelopment zone that is located within a
8    municipality designated as a financially distressed city.
9        "Eligible employer" means an individual, partnership,
10    corporation, or other entity that employs full-time
11    employees within a river edge redevelopment zone that is
12    located within a municipality designated as a financially
13    distressed city.
14        "Full-time employee" means an individual who is
15    employed for consideration for at least 35 hours each week
16    or who renders any other standard of service generally
17    accepted by industry custom or practice as full-time
18    employment. An individual for whom a W-2 is issued by a
19    Professional Employer Organization (PEO) is a full-time
20    employee if employed in the service of the eligible
21    employer for consideration for at least 35 hours each week
22    or who renders any other standard of service generally
23    accepted by industry custom or practice as full-time
24    employment.
25        "Incremental income tax" means the total amount
26    withheld from the compensation of new employees under

 

 

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1    Article 7 of the Illinois Income Tax Act arising from
2    employment by an eligible employer.
3        "Infrastructure" means roads, access roads, streets,
4    bridges, sidewalks, water and sewer line extensions, water
5    distribution and purification facilities, waste disposal
6    systems, sewage treatment facilities, stormwater drainage
7    and retention facilities, gas and electric utility line
8    extensions, or other improvements that are essential to the
9    development of the project that is the subject of an
10    agreement.
11        "New employee" means a full-time employee first
12    employed by an eligible employer in the project that is the
13    subject of an agreement between the Department and an
14    eligible developer and who is hired after the eligible
15    developer enters into the agreement, but does not include:
16            (1) an employee of the eligible employer who
17        performs a job that (i) existed for at least 6 months
18        before the employee was hired and (ii) was previously
19        performed by another employee;
20            (2) an employee of the eligible employer who was
21        previously employed in Illinois by a related member of
22        the eligible employer and whose employment was shifted
23        to the eligible employer after the eligible employer
24        entered into the agreement; or
25            (3) a child, grandchild, parent, or spouse, other
26        than a spouse who is legally separated from the

 

 

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

 

 

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1        indirectly, or beneficially, or constructively, in the
2        aggregate, at least 50% of the profits, capital, stock,
3        or value of the eligible employer;
4            (3) a corporation, and any party related to the
5        corporation in a manner that would require an
6        attribution of stock from the corporation to the party
7        or from the party to the corporation under the
8        attribution rules of Section 318 of the Internal
9        Revenue Code, if the taxpayer owns directly,
10        indirectly, beneficially, or constructively at least
11        50% of the value of the corporation's outstanding
12        stock;
13            (4) a corporation and any party related to that
14        corporation in a manner that would require an
15        attribution of stock from the corporation to the party
16        or from the party to the corporation under the
17        attribution rules of Section 318 of the Internal
18        Revenue Code, if the corporation and all such related
19        parties own in the aggregate at least 50% of the
20        profits, capital, stock, or value of the eligible
21        employer; or
22            (5) a person to or from whom there is attribution
23        of stock ownership in accordance with Section 1563(e)
24        of the Internal Revenue Code, except, for purposes of
25        determining whether a person is a related member under
26        this definition, 20% shall be substituted for 5%

 

 

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1        wherever 5% appears in Section 1563(e) of the Internal
2        Revenue Code.
3    (c) The Riverfront Development Fund. The Riverfront
4Development Fund is created as a special fund in the State
5treasury. As soon as possible after the first day of each
6month, upon certification of the Department of Revenue, the
7Comptroller shall order transferred and the Treasurer shall
8transfer from the General Revenue Fund to the Riverfront
9Development Fund an amount equal to the incremental income tax
10for the previous month attributable to a project that is the
11subject of an agreement.
12    (d) Grants from the Riverfront Development Fund. In State
13fiscal years 2012 through 2021, all moneys in the Riverfront
14Development Fund, held solely for the benefit of eligible
15developers, shall be appropriated to the Department to make
16infrastructure grants to eligible developers pursuant to
17agreements.
18    (e) Limitation on grant amounts. The total amount of a
19grant to an eligible developer shall not exceed the lesser of:
20        (1) $3,000,000 in each State fiscal year; or
21        (2) the total amount of infrastructure costs incurred
22    by the eligible developer with respect to a project that is
23    the subject of an agreement.
24    No eligible developer shall receive moneys that are
25attributable to a project that is not the subject of the
26developer's agreement with the Department.

 

 

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1    (f) Agreements with applicants. The Department shall enter
2into an agreement with an eligible developer who is entitled to
3grants under this Section. The agreement must include all of
4the following:
5        (1) A detailed description of the project that is the
6    subject of the agreement, including the location of the
7    project, the number of jobs created by the project, and
8    project costs. For purposes of this subsection, "project
9    costs" includes the costs of the project incurred or to be
10    incurred by the eligible developer, including
11    infrastructure costs, but excludes the value of State or
12    local incentives, including tax increment financing and
13    deductions, credits, or exemptions afforded to an employer
14    located in an enterprise zone.
15        (2) A requirement that the eligible developer shall
16    maintain operations at the project location, stated as a
17    minimum number of years not to exceed 10 years.
18        (3) A specific method for determining the number of new
19    employees attributable to the project.
20        (4) A requirement that the eligible developer shall
21    report monthly to the Department and the Department of
22    Revenue the number of new employees and the incremental
23    income tax withheld in connection with the new employees.
24        (5) A requirement that the Department is authorized to
25    verify with the Department of Revenue the amounts reported
26    under paragraph (4).
 

 

 

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1    Section 10. The State Finance Act is amended by adding
2Section 5.811 as follows:
 
3    (30 ILCS 105/5.811 new)
4    Sec. 5.811. The Riverfront Development Fund.
 
5    Section 99. Effective date. This Act takes effect upon
6becoming law.".