SB0352 Engrossed LRB096 06362 JAM 16446 b

1     AN ACT concerning government.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The River Edge Redevelopment Zone Act is amended
5 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
9 in the interest of the State of Illinois to promote development
10 that will protect, promote, and improve the riverfront areas of
11 a financially distressed city designated under the Financially
12 Distressed 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
23 Development Fund is created as a special fund in the State
24 treasury. As soon as possible after the first day of each
25 month, upon certification of the Department of Revenue, the
26 Comptroller shall order transferred and the Treasurer shall

 

 

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1 transfer from the General Revenue Fund to the Riverfront
2 Development Fund an amount equal to the incremental income tax
3 for the previous month attributable to a project that is the
4 subject of an agreement.
5     (d) Grants from the Riverfront Development Fund. In State
6 fiscal years 2011 through 2020, all moneys in the Riverfront
7 Development Fund, held solely for the benefit of eligible
8 developers, shall be appropriated to the Department to make
9 infrastructure grants to eligible developers pursuant to
10 agreements.
11     (e) Limitation on grant amounts. The total amount of a
12 grant 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
18 attributable to a project that is not the subject of the
19 developer's agreement with the Department.
20     (f) Agreements with applicants. The Department shall enter
21 into an agreement with an eligible developer who is entitled to
22 grants under this Section. The agreement must include all of
23 the 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
21 Section 5.756 as follows:
 
22     (30 ILCS 105/5.756 new)
23     Sec. 5.756. The Riverfront Development Fund.
 
24     Section 99. Effective date. This Act takes effect upon

 

 

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1 becoming law.