HB1882 EnrolledLRB097 10201 PJG 50396 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 5. The Department of Commerce and Economic
5Opportunity Law of the Civil Administrative Code of Illinois is
6amended by adding Sections 605-456, 605-460, and 605-465 as
7follows:
 
8    (20 ILCS 605/605-456 new)
9    Sec. 605-456. Survey and report on business incentives.
10    (a) The Department shall contact businesses that are
11located in the State or have been identified as having left the
12State. The Department shall request that the business complete
13a survey, developed by the Department, that includes
14information regarding (i) why the business left, if applicable,
15and the location to which the business relocated and (ii) any
16incentives that are needed to keep and attract the business.
17    (b) The Department shall compile the results of the surveys
18and any other relevant information provided to the Department.
19By each July 1, the Department shall report to the General
20Assembly upon its compilation of the previous year's survey
21responses and any of the other relevant information. The report
22must identify, at a minimum, the most common responses,
23categorized by industry and region, regarding (i) why

 

 

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1businesses left Illinois, (ii) what incentives would have
2influenced businesses to remain in Illinois, and (iii) to which
3cities and states the businesses have relocated.
4    (c) For the purposes of this Section, a business is defined
5as one that is engaged in interstate or intrastate commerce for
6the purpose of manufacturing, processing, assembling,
7warehousing, or distributing products, conducting research and
8development, providing tourism services, or providing services
9in interstate commerce, office industries, or agricultural
10processing, but excluding retail, retail food, health, or
11professional services.
12    (d) The Department shall adopt rules for the implementation
13of this Section.
 
14    (20 ILCS 605/605-460 new)
15    Sec. 605-460. Engineering excellence program.
16    (a) Coordination between engineering schools and private
17business is an important tool in fostering innovation.
18Universities have eager students, experienced faculty, and
19state-of-the-art research facilities. Businesses have existing
20markets, production capital, and evolving needs. The General
21Assembly believes that universities and businesses should
22share resources to allow students to participate in the
23research and development area of innovative design and to allow
24businesses to benefit from the developing skills of these
25students.

 

 

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1    (b) In order to facilitate engineering excellence, the
2Department shall develop a program to achieve the goals set
3forth in subsection (a). Under this program, the Department
4must:
5        (1) Annually contact the State's major public and
6    private universities with engineering schools.
7        (2) Request a one-page written summary of the
8    internship, externship, or residency programs operated by
9    the engineering college of each of the contacted
10    universities.
11        (3) Identify the manufacturing businesses within 50
12    miles of each university that responded under paragraph (2)
13    that could benefit from assistance in the area of
14    innovative design.
15        (4) Send a letter to each manufacturer identified under
16    paragraph (3), informing it of the university's program and
17    advising the business to contact the university if it
18    wishes to participate in the engineering school's program.
19    (c) The Department shall adopt rules for the implementation
20of this Section.
 
21    (20 ILCS 605/605-465 new)
22    Sec. 605-465. Comprehensive website information.
23    (a) The Department's official website must contain a
24comprehensive list of State, local, and federal economic
25benefits available to businesses in each of the State's

 

 

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1counties and municipalities that the Department includes on its
2website. In order to do so:
3        (1) The Department annually must request a summary of
4    available economic benefits from each of the State's
5    counties and municipalities that are linked to the
6    Department's website.
7        (2) The information obtained under paragraph (1) must
8    be published on the related web pages of the Department's
9    website.
10        (3) The Department's website shall also provide
11    information regarding available federal economic benefits
12    to the extent possible.
13    (b) The Department shall adopt rules for the implementation
14of this Section.
 
15    Section 10. The Corporate Accountability for Tax
16Expenditures Act is amended by changing Section 25 as follows:
 
17    (20 ILCS 715/25)
18    Sec. 25. Recapture.
19    (a) All development assistance agreements shall contain,
20at a minimum, the following recapture provisions:
21        (1) The recipient must (i) make the level of capital
22    investment in the economic development project specified
23    in the development assistance agreement; (ii) create or
24    retain, or both, the requisite number of jobs, paying not

 

 

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1    less than specified wages for the created and retained
2    jobs, within and for the duration of the time period
3    specified in the legislation authorizing, or the
4    administrative rules implementing, the development
5    assistance programs and the development assistance
6    agreement.
7        (2) If the recipient fails to create or retain the
8    requisite number of jobs within and for the time period
9    specified, in the legislation authorizing, or the
10    administrative rules implementing, the development
11    assistance programs and the development assistance
12    agreement, the recipient shall be deemed to no longer
13    qualify for the State economic assistance and the
14    applicable recapture provisions shall take effect.
15        (3) If the recipient receives State economic
16    assistance in the form of a High Impact Business
17    designation pursuant to Section 5.5 of the Illinois
18    Enterprise Zone Act and the business receives the benefit
19    of the exemption authorized under Section 5l of the
20    Retailers' Occupation Tax Act (for the sale of building
21    materials incorporated into a High Impact Business
22    location) and the recipient fails to create or retain the
23    requisite number of jobs, as determined by the legislation
24    authorizing the development assistance programs or the
25    administrative rules implementing such legislation, or
26    both, within the requisite period of time, the recipient

 

 

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1    shall be required to pay to the State the full amount of
2    the State tax exemption that it received as a result of the
3    High Impact Business designation.
4        (4) If the recipient receives a grant or loan pursuant
5    to the Large Business Development Program, the Business
6    Development Public Infrastructure Program, or the
7    Industrial Training Program and the recipient fails to
8    create or retain the requisite number of jobs for the
9    requisite time period, as provided in the legislation
10    authorizing the development assistance programs or the
11    administrative rules implementing such legislation, or
12    both, or in the development assistance agreement, the
13    recipient shall be required to repay to the State a pro
14    rata amount of the grant; that amount shall reflect the
15    percentage of the deficiency between the requisite number
16    of jobs to be created or retained by the recipient and the
17    actual number of such jobs in existence as of the date the
18    Department determines the recipient is in breach of the job
19    creation or retention covenants contained in the
20    development assistance agreement. If the recipient of
21    development assistance under the Large Business
22    Development Program, the Business Development Public
23    Infrastructure Program, or the Industrial Training Program
24    ceases operations at the specific project site, during the
25    5-year period commencing on the date of assistance, the
26    recipient shall be required to repay the entire amount of

 

 

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1    the grant or to accelerate repayment of the loan back to
2    the State.
3        (5) If the recipient receives a tax credit under the
4    Economic Development for a Growing Economy tax credit
5    program, the development assistance agreement must provide
6    that (i) if the number of new or retained employees falls
7    below the requisite number set forth in the development
8    assistance agreement, the allowance of the credit shall be
9    automatically suspended until the number of new and
10    retained employees equals or exceeds the requisite number
11    in the development assistance agreement; (ii) if the
12    recipient discontinues operations at the specific project
13    site during the 5-year period after the beginning of the
14    first tax year for which the Department issues a tax credit
15    certificate, the recipient shall forfeit all credits taken
16    by the recipient during such 5-year period; and (iii) in
17    the event of a revocation or suspension of the credit, the
18    Department shall contact the Director of Revenue to
19    initiate proceedings against the recipient to recover
20    wrongfully exempted Illinois State income taxes and the
21    recipient shall promptly repay to the Department of Revenue
22    any wrongfully exempted Illinois State income taxes. The
23    forfeited amount of credits shall be deemed assessed on the
24    date the Department contacts the Department of Revenue and
25    the recipient shall promptly repay to the Department of
26    Revenue any wrongfully exempted Illinois State income

 

 

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1    taxes.
2    (b) The Director may elect to waive enforcement of any
3contractual provision arising out of the development
4assistance agreement required by this Act based on a finding
5that the waiver is necessary to avert an imminent and
6demonstrable hardship to the recipient that may result in such
7recipient's insolvency or discharge of workers. If a waiver is
8granted, the recipient must agree to a contractual
9modification, including recapture provisions, to the
10development assistance agreement. The existence of any waiver
11granted pursuant to this subsection (c), the date of the
12granting of such waiver, and a brief summary of the reasons
13supporting the granting of such waiver shall be disclosed
14consistent with the provisions of Section 25 of this Act.
15    (b-5) The Department shall post, on its website, (i) the
16identity of each recipient from whom amounts were recaptured
17under this Section on or after the effective date of this
18amendatory Act of the 97th General Assembly, (ii) the date of
19the recapture, (iii) a summary of the reasons supporting the
20recapture, and (iv) the amount recaptured from those
21recipients.
22    (c) Beginning June 1, 2004, the Department shall annually
23compile a report on the outcomes and effectiveness of recapture
24provisions by program, including but not limited to: (i) the
25total number of companies that receive development assistance
26as defined in this Act; (ii) the total number of recipients in

 

 

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1violation of development agreements with the Department; (iii)
2the total number of completed recapture efforts; (iv) the total
3number of recapture efforts initiated; and (v) the number of
4waivers granted. This report shall be disclosed consistent with
5the provisions of Section 20 of this Act.
6    (d) For the purposes of this Act, recapture provisions do
7not include the Illinois Department of Transportation Economic
8Development Program, any grants under the Industrial Training
9Program that are not given as an incentive to a recipient
10business organization, or any successor programs as described
11in the term "development assistance" in Section 5 of this Act.
12(Source: P.A. 97-2, eff. 5-6-11.)
 
13    Section 15. The Energy Assistance Act is amended by
14changing Section 6 as follows:
 
15    (305 ILCS 20/6)  (from Ch. 111 2/3, par. 1406)
16    Sec. 6. Eligibility, Conditions of Participation, and
17Energy Assistance.
18    (a) Any person who is a resident of the State of Illinois
19and whose household income is not greater than an amount
20determined annually by the Department, in consultation with the
21Policy Advisory Council, may apply for assistance pursuant to
22this Act in accordance with regulations promulgated by the
23Department. In setting the annual eligibility level, the
24Department shall consider the amount of available funding and

 

 

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1may not set a limit higher than 150% of the federal nonfarm
2poverty level as established by the federal Office of
3Management and Budget; except that for the period ending June
430, 2013, 2012, or until the expenditure of federal resources
5allocated for energy assistance programs by the American
6Recovery and Reinvestment Act, whichever occurs first, the
7Department may not establish limits higher than 200% of that
8poverty level or the maximum level provided for by federal
9guidelines.
10    (b) Applicants who qualify for assistance pursuant to
11subsection (a) of this Section shall, subject to appropriation
12from the General Assembly and subject to availability of funds
13to the Department, receive energy assistance as provided by
14this Act. The Department, upon receipt of monies authorized
15pursuant to this Act for energy assistance, shall commit funds
16for each qualified applicant in an amount determined by the
17Department. In determining the amounts of assistance to be
18provided to or on behalf of a qualified applicant, the
19Department shall ensure that the highest amounts of assistance
20go to households with the greatest energy costs in relation to
21household income. The Department shall include factors such as
22energy costs, household size, household income, and region of
23the State when determining individual household benefits. In
24setting assistance levels, the Department shall attempt to
25provide assistance to approximately the same number of
26households who participated in the 1991 Residential Energy

 

 

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1Assistance Partnership Program. Such assistance levels shall
2be adjusted annually on the basis of funding availability and
3energy costs. In promulgating rules for the administration of
4this Section the Department shall assure that a minimum of 1/3
5of funds available for benefits to eligible households with the
6lowest incomes and that elderly and disabled households are
7offered a priority application period.
8    (c) If the applicant is not a customer of record of an
9energy provider for energy services or an applicant for such
10service, such applicant shall receive a direct energy
11assistance payment in an amount established by the Department
12for all such applicants under this Act; provided, however, that
13such an applicant must have rental expenses for housing greater
14than 30% of household income.
15    (c-1) This subsection shall apply only in cases where: (1)
16the applicant is not a customer of record of an energy provider
17because energy services are provided by the owner of the unit
18as a portion of the rent; (2) the applicant resides in housing
19subsidized or developed with funds provided under the Rental
20Housing Support Program Act or under a similar locally funded
21rent subsidy program, or is the voucher holder who resides in a
22rental unit within the State of Illinois and whose monthly rent
23is subsidized by the tenant-based Housing Choice Voucher
24Program under Section 8 of the U.S. Housing Act of 1937; and
25(3) the rental expenses for housing are no more than 30% of
26household income. In such cases, the household may apply for an

 

 

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1energy assistance payment under this Act and the owner of the
2housing unit shall cooperate with the applicant by providing
3documentation of the energy costs for that unit. Any
4compensation paid to the energy provider who supplied energy
5services to the household shall be paid on behalf of the owner
6of the housing unit providing energy services to the household.
7The Department shall report annually to the General Assembly on
8the number of households receiving energy assistance under this
9subsection and the cost of such assistance. The provisions of
10this subsection (c-1), other than this sentence, are
11inoperative after August 31, 2012.
12    (d) If the applicant is a customer of an energy provider,
13such applicant shall receive energy assistance in an amount
14established by the Department for all such applicants under
15this Act, such amount to be paid by the Department to the
16energy provider supplying winter energy service to such
17applicant. Such applicant shall:
18        (i) make all reasonable efforts to apply to any other
19    appropriate source of public energy assistance; and
20        (ii) sign a waiver permitting the Department to receive
21    income information from any public or private agency
22    providing income or energy assistance and from any
23    employer, whether public or private.
24    (e) Any qualified applicant pursuant to this Section may
25receive or have paid on such applicant's behalf an emergency
26assistance payment to enable such applicant to obtain access to

 

 

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1winter energy services. Any such payments shall be made in
2accordance with regulations of the Department.
3    (f) The Department may, if sufficient funds are available,
4provide additional benefits to certain qualified applicants:
5        (i) for the reduction of past due amounts owed to
6    energy providers; and
7        (ii) to assist the household in responding to
8    excessively high summer temperatures or energy costs.
9    Households containing elderly members, children, a person
10    with a disability, or a person with a medical need for
11    conditioned air shall receive priority for receipt of such
12    benefits.
13(Source: P.A. 96-154, eff. 1-1-10; 96-157, eff. 9-1-09;
1496-1000, eff. 7-2-10.)
 
15    Section 99. Effective date. This Act takes effect upon
16becoming law.