97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB1581

 

Introduced 2/15/2011, by Rep. Frank J. Mautino

 

SYNOPSIS AS INTRODUCED:
 
New Act
20 ILCS 655/5.5  from Ch. 67 1/2, par. 609.1

    Creates the Illinois Titanium Powdered Metals Development Act. Creates the Illinois Titanium Powdered Metals Development Board within the Department of Commerce and Economic Opportunity. Sets forth the membership of the Board, including the Director of Commerce and Economic Opportunity and members appointed by the Governor and each of the legislative leaders. Sets forth the powers and duties of the Board, including assisting with the growth and development of the titanium powdered metals industry within Illinois and the creation of a consortium or center that conducts, coordinates, and supports titanium powdered metals research, promotion, and marketing activities in the State. Requires the Board to prepare and submit an annual report to the Governor and the General Assembly. Contains other provisions. Amends the Illinois Enterprise Zone Act. Provides that businesses that (i) intend to make minimum investment of $3,000,000 in titanium powdered metals manufacturing which will be placed in service in qualified property and (ii) intend to create or retain a minimum of 15 full-time equivalent jobs in titanium powdered metals manufacturing at a location in Illinois are considered high impact businesses. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB1581LRB097 06395 HLH 46477 b

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 1. Short title. This Act may be cited as the
5Illinois Titanium Powdered Metals Development Act.
 
6    Section 5. Purpose. The purpose of this Act is to assist in
7the development of the titanium powdered metals industry in
8Illinois. The industry is growing but under the current
9economic climate and conditions needs state assistance to
10further promote and develop itself. The State's assistance will
11help the industry to grow, stabilize, and create jobs. The
12production of Titanium powder is an energy efficient process
13that reduces the use of energy. Titanium powder, when used in
14manufacturing processes, helps to create energy efficient
15products. Furthermore, the State's assistance will help
16provide additional needed resources to existing and new
17research programs while also giving the industry the ability to
18partner with Illinois' world class higher educational
19institutions. This will enable Illinois' titanium powdered
20metals industry to become a world class leader.
 
21    Section 10. Definition. As used in this Act, "titanium
22powdered metals" means a powdered metalworking process through

 

 

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1solid-state reduction, atomization, electrolysis, or chemical
2processing whereby the final product has been manufactured
3using at least 50% titanium tetrachloride (TiCL4).
4    "Department" means the Department of Commerce and Economic
5Opportunity.
6    "Director" means the Director of Commerce and Economic
7Opportunity.
 
8    Section 15. Creation of Board. The Illinois Titanium
9Powdered Metals Development Board is hereby created within the
10Department of Commerce and Economic Opportunity. The Board
11shall be composed of the following voting members: the Director
12of Commerce and Economic Opportunity, who shall be Chairman of
13the Board, 4 members of the General Assembly (one each
14appointed by the President of the Senate, the Senate Minority
15Leader, the Speaker of the House of Representatives, and the
16House Minority Leader), and 4 persons appointed by the
17Governor, with the advice and consent of the Senate. Members
18appointed by the Governor must include: one member of a school
19of engineering located within Illinois; one member
20representing the powdered metals manufacturing sector; and 2
21members-at-large. Members appointed by the Governor shall be
22chosen from persons of recognized ability and experience in
23their designated field.
24    The members appointed by the Governor shall serve for terms
25of 4 years. Members appointed by a legislative leader shall

 

 

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1serve for the duration of the General Assembly for which he or
2she is appointed, so long as the member remains a member of
3that General Assembly.
4    The Board shall meet at least 4 times every year or at the
5call of the Chairman. At any time, the majority of the Board
6may petition the Chairman for a meeting of the Board. Seven
7members of the Board shall constitute a quorum. Members of the
8Board shall be reimbursed for actual and necessary expenses
9incurred while performing their duties as members of the Board
10from funds appropriated to the Department.
 
11    Section 20. Powers and duties of the Board. The Board shall
12have the following powers and duties:
13        (1) to develop an annual agenda to assist the growth
14    and development of the titanium powdered metals industry
15    within Illinois that may include, but is not limited to,
16    research, marketing, and promotional methodologies
17    conducted for the purpose of increasing the use of titanium
18    powdered metals produced, used, or transported by Illinois
19    companies with an emphasis on the following areas:
20    maintaining and increasing employment of Illinois workers
21    in the titanium powdered metals industry, titanium
22    powdered metals preparation and characterization,
23    marketing, public awareness and education, and
24    environmental impacts;
25        (2) to support and coordinate titanium powdered metals

 

 

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1    research, marketing, and promotion in Illinois;
2        (3) to develop and approve the annual budget and
3    operating plan of the Board; the annual budget must provide
4    an equal amount allocated for direct loans and for grants;
5        (4) to make direct loans or grants to companies in
6    Illinois that produce, manufacture, or substantially use
7    titanium powdered metals for the promotion, research,
8    manufacture, infrastructure, and research and development
9    of titanium powdered metals, including engineering, legal,
10    or design qualified experts, and for any other purpose in
11    fulfillment of this Act;
12        (5) to hire an executive director and a staff assistant
13    and other such personnel as the Board deems necessary;
14        (6) to seek the assistance, help, and expertise of the
15    staff of the Department as the Board deems necessary to
16    accomplish its goals under this Act;
17        (7) to cooperate to the fullest extent possible with
18    State and federal agencies and departments, independent
19    organizations, and other interested groups, public and
20    private, for the purposes of promoting Illinois titanium
21    powdered metal resources;
22        (8) to prepare and submit an annual report to the
23    Governor and the General Assembly outlining the progress
24    and accomplishments made during the calendar year and
25    furnishing other relevant information;
26        (9) to focus on (i) existing titanium powdered metals

 

 

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1    research, marketing, and promotion efforts, (ii) ways to
2    make use of existing facilities in Illinois or other
3    institutions carrying out research, marketing, and
4    promotion of titanium powdered metals, and (iii) make
5    maximum use of the facilities available in Illinois,
6    including universities and colleges located within the
7    State;
8        (10) to create a consortium or center that conducts,
9    coordinates, and supports titanium powdered metals
10    research, promotion, and marketing activities in the State
11    of Illinois; programmatic activities of the consortium or
12    center shall be subject to approval by the Board and shall
13    be consistent with the purposes of this Section. The Board
14    may authorize the expenditure of funds in support of the
15    administrative and programmatic operations of the
16    consortium or center that are consistent with its
17    authority; administrative actions undertaken by or for the
18    consortium or center shall be subject to the approval of
19    the Board;
20        (11) to develop and implement ways, before initiating
21    any research, to avoid duplication of effort and expense
22    through the coordination of the research efforts of various
23    agencies, departments, universities, or organizations;
24        (12) to adopt, amend, or repeal rules, regulations, and
25    bylaws governing the Board's organization and conduct of
26    business;

 

 

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1        (13) to search for, accept, and expend gifts or grants
2    in any form from any public agency or any other source;
3        (14) to publish, from time to time, the results of
4    titanium powdered metals research, marketing, and
5    promotion projects supported by the Board.
 
6    Section 25. Other functions of the Board. The Board shall
7also:
8        (1) create and maintain current and accurate records on
9    all markets for and actual uses of titanium powdered metals
10    processed, used, or transported in Illinois and ways of
11    making those records available to the public upon request;
12        (2) identify all current and anticipated future
13    technical, economic, institutional, market, environmental,
14    regulatory, and other impediments to the use of titanium
15    powdered metals and the titanium powdered metal industry in
16    Illinois;
17        (3) identify alternative plans or actions that would
18    maintain or increase the use of titanium powdered metals
19    and the titanium powdered metal industry in Illinois;
20        (4) develop strategies and policies to promote
21    responsible uses of titanium powdered metals and the
22    titanium powdered industry in Illinois.
 
23    Section 60. The Illinois Enterprise Zone Act is amended by
24changing Section 5.5 as follows:
 

 

 

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1    (20 ILCS 655/5.5)   (from Ch. 67 1/2, par. 609.1)
2    Sec. 5.5. High Impact Business.
3    (a) In order to respond to unique opportunities to assist
4in the encouragement, development, growth and expansion of the
5private sector through large scale investment and development
6projects, the Department is authorized to receive and approve
7applications for the designation of "High Impact Businesses" in
8Illinois subject to the following conditions:
9        (1) such applications may be submitted at any time
10    during the year;
11        (2) such business is not located, at the time of
12    designation, in an enterprise zone designated pursuant to
13    this Act;
14        (3) the business intends to do one or more of the
15    following:
16            (A) the business intends to make a minimum
17        investment of $12,000,000 which will be placed in
18        service in qualified property and intends to create 500
19        full-time equivalent jobs at a designated location in
20        Illinois or intends to make a minimum investment of
21        $30,000,000 which will be placed in service in
22        qualified property and intends to retain 1,500
23        full-time jobs at a designated location in Illinois.
24        The business must certify in writing that the
25        investments would not be placed in service in qualified

 

 

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1        property and the job creation or job retention would
2        not occur without the tax credits and exemptions set
3        forth in subsection (b) of this Section. The terms
4        "placed in service" and "qualified property" have the
5        same meanings as described in subsection (h) of Section
6        201 of the Illinois Income Tax Act; or
7            (B) the business intends to establish a new
8        electric generating facility at a designated location
9        in Illinois. "New electric generating facility", for
10        purposes of this Section, means a newly-constructed
11        electric generation plant or a newly-constructed
12        generation capacity expansion at an existing electric
13        generation plant, including the transmission lines and
14        associated equipment that transfers electricity from
15        points of supply to points of delivery, and for which
16        such new foundation construction commenced not sooner
17        than July 1, 2001. Such facility shall be designed to
18        provide baseload electric generation and shall operate
19        on a continuous basis throughout the year; and (i)
20        shall have an aggregate rated generating capacity of at
21        least 1,000 megawatts for all new units at one site if
22        it uses natural gas as its primary fuel and foundation
23        construction of the facility is commenced on or before
24        December 31, 2004, or shall have an aggregate rated
25        generating capacity of at least 400 megawatts for all
26        new units at one site if it uses coal or gases derived

 

 

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1        from coal as its primary fuel and shall support the
2        creation of at least 150 new Illinois coal mining jobs,
3        or (ii) shall be funded through a federal Department of
4        Energy grant before December 31, 2010 and shall support
5        the creation of Illinois coal-mining jobs, or (iii)
6        shall use coal gasification or integrated
7        gasification-combined cycle units that generate
8        electricity or chemicals, or both, and shall support
9        the creation of Illinois coal-mining jobs. The
10        business must certify in writing that the investments
11        necessary to establish a new electric generating
12        facility would not be placed in service and the job
13        creation in the case of a coal-fueled plant would not
14        occur without the tax credits and exemptions set forth
15        in subsection (b-5) of this Section. The term "placed
16        in service" has the same meaning as described in
17        subsection (h) of Section 201 of the Illinois Income
18        Tax Act; or
19            (B-5) the business intends to establish a new
20        gasification facility at a designated location in
21        Illinois. As used in this Section, "new gasification
22        facility" means a newly constructed coal gasification
23        facility that generates chemical feedstocks or
24        transportation fuels derived from coal (which may
25        include, but are not limited to, methane, methanol, and
26        nitrogen fertilizer), that supports the creation or

 

 

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1        retention of Illinois coal-mining jobs, and that
2        qualifies for financial assistance from the Department
3        before December 31, 2010. A new gasification facility
4        does not include a pilot project located within
5        Jefferson County or within a county adjacent to
6        Jefferson County for synthetic natural gas from coal;
7        or
8            (C) the business intends to establish production
9        operations at a new coal mine, re-establish production
10        operations at a closed coal mine, or expand production
11        at an existing coal mine at a designated location in
12        Illinois not sooner than July 1, 2001; provided that
13        the production operations result in the creation of 150
14        new Illinois coal mining jobs as described in
15        subdivision (a)(3)(B) of this Section, and further
16        provided that the coal extracted from such mine is
17        utilized as the predominant source for a new electric
18        generating facility. The business must certify in
19        writing that the investments necessary to establish a
20        new, expanded, or reopened coal mine would not be
21        placed in service and the job creation would not occur
22        without the tax credits and exemptions set forth in
23        subsection (b-5) of this Section. The term "placed in
24        service" has the same meaning as described in
25        subsection (h) of Section 201 of the Illinois Income
26        Tax Act; or

 

 

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1            (D) the business intends to construct new
2        transmission facilities or upgrade existing
3        transmission facilities at designated locations in
4        Illinois, for which construction commenced not sooner
5        than July 1, 2001. For the purposes of this Section,
6        "transmission facilities" means transmission lines
7        with a voltage rating of 115 kilovolts or above,
8        including associated equipment, that transfer
9        electricity from points of supply to points of delivery
10        and that transmit a majority of the electricity
11        generated by a new electric generating facility
12        designated as a High Impact Business in accordance with
13        this Section. The business must certify in writing that
14        the investments necessary to construct new
15        transmission facilities or upgrade existing
16        transmission facilities would not be placed in service
17        without the tax credits and exemptions set forth in
18        subsection (b-5) of this Section. The term "placed in
19        service" has the same meaning as described in
20        subsection (h) of Section 201 of the Illinois Income
21        Tax Act; or
22            (E) the business intends to establish a new wind
23        power facility at a designated location in Illinois.
24        For purposes of this Section, "new wind power facility"
25        means a newly constructed electric generation
26        facility, or a newly constructed expansion of an

 

 

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1        existing electric generation facility, placed in
2        service on or after July 1, 2009, that generates
3        electricity using wind energy devices, and such
4        facility shall be deemed to include all associated
5        transmission lines, substations, and other equipment
6        related to the generation of electricity from wind
7        energy devices. For purposes of this Section, "wind
8        energy device" means any device, with a nameplate
9        capacity of at least 0.5 megawatts, that is used in the
10        process of converting kinetic energy from the wind to
11        generate electricity; or and
12            (F) the business intends to make minimum
13        investment of $3,000,000 in titanium powdered metals
14        manufacturing which will be placed in service in
15        qualified property and intends to create or retain a
16        minimum of 15 full-time equivalent jobs in titanium
17        powdered metals manufacturing at a location in
18        Illinois; the business must certify in writing that the
19        investments would not be placed in service in qualified
20        property and the job creation or job retention would
21        not occur without the tax credits and exemptions set
22        forth in subsection (b) of this Section. The terms
23        "placed in service" and "qualified property" have the
24        same meanings as described in subsection (h) of Section
25        201 of the Illinois Income Tax Act; and
26        (4) no later than 90 days after an application is

 

 

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1    submitted, the Department shall notify the applicant of the
2    Department's determination of the qualification of the
3    proposed High Impact Business under this Section.
4    (b) Businesses designated as High Impact Businesses
5pursuant to subdivision (a)(3)(A) of this Section shall qualify
6for the credits and exemptions described in the following Acts:
7Section 9-222 and Section 9-222.1A of the Public Utilities Act,
8subsection (h) of Section 201 of the Illinois Income Tax Act,
9and Section 1d of the Retailers' Occupation Tax Act; provided
10that these credits and exemptions described in these Acts shall
11not be authorized until the minimum investments set forth in
12subdivision (a)(3)(A) of this Section have been placed in
13service in qualified properties and, in the case of the
14exemptions described in the Public Utilities Act and Section 1d
15of the Retailers' Occupation Tax Act, the minimum full-time
16equivalent jobs or full-time jobs set forth in subdivision
17(a)(3)(A) of this Section have been created or retained.
18Businesses designated as High Impact Businesses under this
19Section shall also qualify for the exemption described in
20Section 5l of the Retailers' Occupation Tax Act. The credit
21provided in subsection (h) of Section 201 of the Illinois
22Income Tax Act shall be applicable to investments in qualified
23property as set forth in subdivision (a)(3)(A) of this Section.
24    (b-5) Businesses designated as High Impact Businesses
25pursuant to subdivisions (a)(3)(B), (a)(3)(B-5), (a)(3)(C),
26and (a)(3)(D) of this Section shall qualify for the credits and

 

 

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1exemptions described in the following Acts: Section 51 of the
2Retailers' Occupation Tax Act, Section 9-222 and Section
39-222.1A of the Public Utilities Act, and subsection (h) of
4Section 201 of the Illinois Income Tax Act; however, the
5credits and exemptions authorized under Section 9-222 and
6Section 9-222.1A of the Public Utilities Act, and subsection
7(h) of Section 201 of the Illinois Income Tax Act shall not be
8authorized until the new electric generating facility, the new
9gasification facility, the new transmission facility, or the
10new, expanded, or reopened coal mine is operational, except
11that a new electric generating facility whose primary fuel
12source is natural gas is eligible only for the exemption under
13Section 5l of the Retailers' Occupation Tax Act.
14    (b-6) Businesses designated as High Impact Businesses
15pursuant to subdivision (a)(3)(E) of this Section shall qualify
16for the exemptions described in Section 5l of the Retailers'
17Occupation Tax Act; any business so designated as a High Impact
18Business being, for purposes of this Section, a "Wind Energy
19Business".
20    (c) High Impact Businesses located in federally designated
21foreign trade zones or sub-zones are also eligible for
22additional credits, exemptions and deductions as described in
23the following Acts: Section 9-221 and Section 9-222.1 of the
24Public Utilities Act; and subsection (g) of Section 201, and
25Section 203 of the Illinois Income Tax Act.
26    (d) Except for businesses contemplated under subdivision

 

 

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1(a)(3)(E) of this Section, existing Illinois businesses which
2apply for designation as a High Impact Business must provide
3the Department with the prospective plan for which 1,500
4full-time jobs would be eliminated in the event that the
5business is not designated.
6    (e) Except for new wind power facilities contemplated under
7subdivision (a)(3)(E) of this Section, new proposed facilities
8which apply for designation as High Impact Business must
9provide the Department with proof of alternative non-Illinois
10sites which would receive the proposed investment and job
11creation in the event that the business is not designated as a
12High Impact Business.
13    (f) Except for businesses contemplated under subdivision
14(a)(3)(E) of this Section, in the event that a business is
15designated a High Impact Business and it is later determined
16after reasonable notice and an opportunity for a hearing as
17provided under the Illinois Administrative Procedure Act, that
18the business would have placed in service in qualified property
19the investments and created or retained the requisite number of
20jobs without the benefits of the High Impact Business
21designation, the Department shall be required to immediately
22revoke the designation and notify the Director of the
23Department of Revenue who shall begin proceedings to recover
24all wrongfully exempted State taxes with interest. The business
25shall also be ineligible for all State funded Department
26programs for a period of 10 years.

 

 

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1    (g) The Department shall revoke a High Impact Business
2designation if the participating business fails to comply with
3the terms and conditions of the designation. However, the
4penalties for new wind power facilities or Wind Energy
5Businesses for failure to comply with any of the terms or
6conditions of the Illinois Prevailing Wage Act shall be only
7those penalties identified in the Illinois Prevailing Wage Act,
8and the Department shall not revoke a High Impact Business
9designation as a result of the failure to comply with any of
10the terms or conditions of the Illinois Prevailing Wage Act in
11relation to a new wind power facility or a Wind Energy
12Business.
13    (h) Prior to designating a business, the Department shall
14provide the members of the General Assembly and Commission on
15Government Forecasting and Accountability with a report
16setting forth the terms and conditions of the designation and
17guarantees that have been received by the Department in
18relation to the proposed business being designated.
19(Source: P.A. 95-18, eff. 7-30-07; 96-28, eff. 7-1-09.)
 
20    Section 99. Effective date. This Act takes effect upon
21becoming law.