97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB6143

 

Introduced , by Rep. Scott E Penny

 

SYNOPSIS AS INTRODUCED:
 
20 ILCS 655/5.4  from Ch. 67 1/2, par. 609

    Amends the Illinois Enterprise Zone Act. Provides that the terms of a certified enterprise zone designating ordinance may be amended in the Village of Brooklyn or the Village of Fairmont City, to designate areas within their respective jurisdictions to be added to the existing East St. Louis/Washington Park Enterprise Zone, regardless of whether the Zone is contiguous with the areas designated in the ordinances, and subject to the approval of the Department of Commerce and Economic Opportunity. Exempts these amendments to the Zone from certain restrictions concerning the maximum allowable area of an enterprise zone.


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FISCAL NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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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 Illinois Enterprise Zone Act is amended by
5changing Section 5.4 as follows:
 
6    (20 ILCS 655/5.4)  (from Ch. 67 1/2, par. 609)
7    Sec. 5.4. Amendment and Decertification of Enterprise
8Zones.
9    (a) The terms of a certified enterprise zone designating
10ordinance may be amended to
11        (i) alter the boundaries of the Enterprise Zone, or
12        (ii) expand, limit or repeal tax incentives or benefits
13    provided in the ordinance, or
14        (iii) alter the termination date of the zone, or
15        (iv) make technical corrections in the enterprise zone
16    designating ordinance; but such amendment shall not be
17    effective unless the Department issues an amended
18    certificate for the Enterprise Zone, approving the amended
19    designating ordinance. Upon the adoption of any ordinance
20    amending or repealing the terms of a certified enterprise
21    zone designating ordinance, the municipality or county
22    shall promptly file with the Department an application for
23    approval thereof, containing substantially the same

 

 

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1    information as required for an application under Section
2    5.1 insofar as material to the proposed changes. The
3    municipality or county must hold a public hearing on the
4    proposed changes as specified in Section 5 and, if the
5    amendment is to effectuate the limitation of tax abatements
6    under Section 5.4.1, then the public notice of the hearing
7    shall state that property that is in both the enterprise
8    zone and a redevelopment project area may not receive tax
9    abatements unless within 60 days after the adoption of the
10    amendment to the designating ordinance the municipality
11    has determined that eligibility for tax abatements has been
12    established,
13        (v) include an area within another municipality or
14    county as part of the designated enterprise zone provided
15    the requirements of Section 4 are complied with, or
16        (vi) effectuate the limitation of tax abatements under
17    Section 5.4.1.
18    (a-5) In addition to the provisions of this Section, the
19terms of a certified enterprise zone designating ordinance may
20be amended:
21        (i) in the Village of Brooklyn, to designate an area
22    within its jurisdiction to be added to the existing East
23    St. Louis/Washington Park Enterprise Zone, subject to the
24    approval of the Department in accordance with this Section
25    and regardless of whether the Enterprise Zone is contiguous
26    with the area designated in the ordinance, or

 

 

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1        (ii) in the Village of Fairmont City, to designate an
2    area within its jurisdiction to be added to the existing
3    East St. Louis/Washington Park Enterprise Zone, subject to
4    the approval of the Department in accordance with this
5    Section and regardless of whether the Enterprise Zone is
6    contiguous with the area designated in the ordinance.
7    The provisions of Section 4 of this Act shall not apply to
8areas designated or Enterprise Zone expanded under this
9subsection, including but not limited to the computation of the
10maximum allowable area of an enterprise zone under subsection
11(b) thereof.
12    (b) The Department shall approve or disapprove a proposed
13amendment to a certified enterprise zone within 90 days of its
14receipt of the application from the municipality or county. The
15Department may not approve changes in a Zone which are not in
16conformity with this Act, as now or hereafter amended, or with
17other applicable laws. If the Department issues an amended
18certificate for an Enterprise Zone, the amended certificate,
19together with the amended zone designating ordinance, shall be
20filed, recorded and transmitted as provided in Section 5.3.
21    (c) An Enterprise Zone may be decertified by joint action
22of the Department and the designating county or municipality in
23accordance with this Section. The designating county or
24municipality shall conduct at least one public hearing within
25the zone prior to its adoption of an ordinance of
26de-designation. The mayor of the designating municipality or

 

 

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1the chairman of the county board of the designating county
2shall execute a joint decertification agreement with the
3Department. A decertification of an Enterprise Zone shall not
4become effective until at least 6 months after the execution of
5the decertification agreement, which shall be filed in the
6office of the Secretary of State.
7    (d) An Enterprise Zone may be decertified for cause by the
8Department in accordance with this Section. Prior to
9decertification: (1) the Department shall notify the chief
10elected official of the designating county or municipality in
11writing of the specific deficiencies which provide cause for
12decertification; (2) the Department shall place the
13designating county or municipality on probationary status for
14at least 6 months during which time corrective action may be
15achieved in the enterprise zone by the designating county or
16municipality; and, (3) the Department shall conduct at least
17one public hearing within the zone. If such corrective action
18is not achieved during the probationary period, the Department
19shall issue an amended certificate signed by the Director of
20the Department decertifying the enterprise zone, which
21certificate shall be filed in the office of the Secretary of
22State. A certified copy of the amended enterprise zone
23certificate, or a duplicate original thereof, shall be recorded
24in the office of recorder of the county in which the enterprise
25zone lies, and shall be provided to the chief elected official
26of the designating county or municipality. Decertification of

 

 

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1an Enterprise Zone shall not become effective until 60 days
2after the date of filing.
3    (e) In the event of a decertification, or an amendment
4reducing the length of the term or the area of an Enterprise
5Zone or the adoption of an ordinance reducing or eliminating
6tax benefits in an Enterprise Zone, all benefits previously
7extended within the Zone pursuant to this Act or pursuant to
8any other Illinois law providing benefits specifically to or
9within Enterprise Zones shall remain in effect for the original
10stated term of the Enterprise Zone, with respect to business
11enterprises within the Zone on the effective date of such
12decertification or amendment, and with respect to individuals
13participating in urban homestead programs under this Act.
14    (f) Except as otherwise provided in Section 5.4.1, with
15respect to business enterprises (or expansions thereof) which
16are proposed or under development within a Zone at the time of
17a decertification or an amendment reducing the length of the
18term of the Zone, or excluding from the Zone area the site of
19the proposed enterprise, or an ordinance reducing or
20eliminating tax benefits in a Zone, such business enterprise
21shall be entitled to the benefits previously applicable within
22the Zone for the original stated term of the Zone, if the
23business enterprise establishes:
24        (i) that the proposed business enterprise or expansion
25    has been committed to be located within the Zone;
26        (ii) that substantial and binding financial

 

 

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1    obligations have been made towards the development of such
2    enterprise; and
3        (iii) that such commitments have been made in
4    reasonable reliance on the benefits and programs which were
5    to have been applicable to the enterprise by reason of the
6    Zone, including in the case of a reduction in term of a
7    zone, the original length of the term.
8    In declaratory judgment actions under this paragraph, the
9Department and the designating municipality or county shall be
10necessary parties defendant.
11(Source: P.A. 90-258, eff. 7-30-97.)