Full Text of SB1591 101st General Assembly
SB1591sam002 101ST GENERAL ASSEMBLY | Sen. Elgie R. Sims, Jr. Filed: 4/5/2019
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| 1 | | AMENDMENT TO SENATE BILL 1591
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 1591 by replacing | 3 | | everything from line 4 on page 1 through line 24 on page 5 with | 4 | | the following:
| 5 | | "Section 3. The Department of Commerce and Economic | 6 | | Opportunity Law of the
Civil Administrative Code of Illinois is | 7 | | amended by adding Section 605-1025 as follows: | 8 | | (20 ILCS 605/605-1025 new) | 9 | | Sec. 605-1025. Data center investment. | 10 | | (a) The Department shall issue certificates of exemption | 11 | | from the Retailers' Occupation Tax Act, the Use Tax Act, the | 12 | | Service Use Tax Act, and the Service Occupation Tax Act, all | 13 | | locally-imposed retailers' occupation taxes administered and | 14 | | collected by the Department, the Chicago non-titled Use Tax, | 15 | | and the Electricity Excise Tax Act to qualifying Illinois data | 16 | | centers. |
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| 1 | | (b) For purposes of this Section: | 2 | | "Data center" means a building or a series of buildings | 3 | | that is rehabilitated or constructed to house working | 4 | | servers in one physical location or several sites. | 5 | | "Qualifying Illinois data center" means a new or | 6 | | existing data center that: | 7 | | (1) is located in the State of Illinois; | 8 | | (2) in the case of an existing data center, made a | 9 | | capital investment of at least $250,000,000 | 10 | | collectively by the data center operator and the | 11 | | tenants of all of its data centers over the 60-month | 12 | | period immediately prior to January 1, 2020 or | 13 | | committed to make a capital investment of at least | 14 | | $250,000,000 over a 60-month period commencing before | 15 | | January 1, 2020 and ending after January 1, 2020; or | 16 | | (3) in the case of a new data center, makes a | 17 | | capital investment of at least $250,000,000 over a | 18 | | 60-month period; and | 19 | | (4) in the case of both existing and new data | 20 | | centers, results in the creation of at least 20 | 21 | | full-time or full-time equivalent new jobs over a | 22 | | period of 60 months by the data center operator and the | 23 | | tenants of the data center, collectively, associated | 24 | | with the operation or maintenance of the data center; | 25 | | those jobs must have a total compensation equal to or | 26 | | greater than 120% of the median wage paid to full-time |
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| 1 | | employees in the county where the data center is | 2 | | located, as determined by the U.S. Bureau of Labor | 3 | | Statistics; and | 4 | | (5) is carbon neutral or attains certification | 5 | | under one or more of the following green building | 6 | | standards: | 7 | | (A) BREEAM for New Construction or BREEAM | 8 | | In-Use; | 9 | | (B) ENERGY STAR; | 10 | | (C) Envision; | 11 | | (D) ISO 50001-energy management; | 12 | | (E) LEED for Building Design and Construction | 13 | | or LEED for Operations and Maintenance; | 14 | | (F) Green Globes for New Construction or Green | 15 | | Globes for Existing Buildings; | 16 | | (G) UL 3223; or | 17 | | (H) an equivalent program approved by the | 18 | | Department of Commerce and Economic Opportunity. | 19 | | "Full-time equivalent job" means a job in which the new | 20 | | employee works for the owner, operator, contractor, or | 21 | | tenant of a data center or for a corporation under contract | 22 | | with the owner, operator or tenant of a data center at a | 23 | | rate of at least 35 hours per week. An owner, operator or | 24 | | tenant who employs labor or services at a specific site or | 25 | | facility under contract with another may declare one | 26 | | full-time, permanent job for every 1,820 man hours worked |
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| 1 | | per year under that contract. Vacations, paid holidays, and | 2 | | sick time are included in this computation. Overtime is not | 3 | | considered a part of regular hours. | 4 | | "Qualified tangible personal property" means: | 5 | | electrical systems and equipment; climate control and | 6 | | chilling equipment and systems; mechanical systems and | 7 | | equipment; monitoring and secure systems; emergency | 8 | | generators; hardware; computers; servers; data storage | 9 | | devices; network connectivity equipment; racks; cabinets; | 10 | | telecommunications cabling infrastructure; raised floor | 11 | | systems; peripheral components or systems; software; | 12 | | mechanical, electrical, or plumbing systems; battery | 13 | | systems; cooling systems and towers; temperature control | 14 | | systems; other cabling; and other data center | 15 | | infrastructure equipment and systems necessary to operate | 16 | | qualified tangible personal property, including fixtures; | 17 | | and component parts of any of the foregoing, including | 18 | | installation, maintenance, repair, refurbishment, and | 19 | | replacement of qualified tangible personal property to | 20 | | generate, transform, transmit, distribute, or manage | 21 | | electricity necessary to operate qualified tangible | 22 | | personal property; and all other tangible personal | 23 | | property that is essential to the operations of a computer | 24 | | data center. "Qualified tangible personal property" also | 25 | | includes building materials physically incorporated in to | 26 | | the qualifying data center. |
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| 1 | | To document the exemption allowed under this Section, the | 2 | | retailer must obtain from the purchaser a copy of the | 3 | | certificate of eligibility issued by the Department. | 4 | | (c) New and existing data centers seeking a certificate of | 5 | | exemption for new or existing facilities shall apply to the | 6 | | Department in the manner specified by the Department. The | 7 | | Department and any data center seeking the exemption, including | 8 | | a data center operator on behalf of itself and its tenants, | 9 | | must enter into a memorandum of understanding that at a minimum | 10 | | provides: | 11 | | (1) the details for determining the amount of capital | 12 | | investment to be made; | 13 | | (2) the number of new jobs created; | 14 | | (3) the timeline for achieving the capital investment | 15 | | and new job goals; | 16 | | (4) the repayment obligation should those goals not be | 17 | | achieved and any conditions under which repayment by the | 18 | | qualifying data center or data center tenant claiming the | 19 | | exemption will be required;
and | 20 | | (5) other provisions as deemed necessary by the | 21 | | Department. | 22 | | (d) Beginning July 1, 2021, and each year thereafter, the | 23 | | Department shall annually report to the Governor and the | 24 | | General Assembly on the outcomes and effectiveness of this | 25 | | amendatory Act of the 101st General Assembly that shall include | 26 | | the following: |
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| 1 | | (1) the name of each recipient business; | 2 | | (2) the location of the project; | 3 | | (3) the estimated value of the credit; | 4 | | (4) the number of new jobs and, if applicable, retained | 5 | | jobs pledged as a result of the project; and | 6 | | (5) whether or not the project is located in an | 7 | | underserved area. | 8 | | (e) New and existing data centers seeking a certificate of | 9 | | exemption related to the rehabilitation or construction of data | 10 | | centers in the State shall require the contractor and all | 11 | | subcontractors to comply with the requirements of Section 30-22 | 12 | | of the Illinois Procurement Code as they apply to responsible | 13 | | bidders and to present satisfactory evidence of that compliance | 14 | | to the Department. | 15 | | (f) New and existing data centers seeking a certificate of | 16 | | exemption for the rehabilitation or construction of data | 17 | | centers in the State shall require the contractor to enter into | 18 | | a project labor agreement approved by the Department. "; and
| 19 | | on page 23, line 16, by replacing " Department " with " Department | 20 | | of Commerce and Economic Opportunity "; and | 21 | | on page 24, line 1, by replacing " Department " with " Department | 22 | | of Commerce and Economic Opportunity "; and | 23 | | on page 24, by replacing lines 3 and 4 with the following: |
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| 1 | | " Section 605-1025 of the Department of Commerce and Economic | 2 | | Opportunity Law of the
Civil Administrative Code of Illinois. "; | 3 | | and | 4 | | on page 25, line 9, by replacing " Department " with " Department | 5 | | of Commerce and Economic Opportunity "; and | 6 | | on page 40, line 9, by replacing " Department " with " Department | 7 | | of Commerce and Economic Opportunity "; and | 8 | | on page 40, line 20, by replacing " Department " with " Department | 9 | | of Commerce and Economic Opportunity "; and | 10 | | on page 40, by replacing lines 22 and 23 with the following: | 11 | | " Section 605-1025 of the Department of Commerce and Economic | 12 | | Opportunity Law of the
Civil Administrative Code of Illinois. "; | 13 | | and | 14 | | on page 42, line 2, by replacing " Department " with " Department | 15 | | of Commerce and Economic Opportunity "; and | 16 | | on page 55, line 15, by replacing " Department " with " Department | 17 | | of Commerce and Economic Opportunity "; and | 18 | | on page 55, line 26, by replacing " Department " with " Department | 19 | | of Commerce and Economic Opportunity "; and |
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| 1 | | on page 56, by replacing lines 2 and 3 with the following: | 2 | | " Section 605-1025 of the Department of Commerce and Economic | 3 | | Opportunity Law of the
Civil Administrative Code of Illinois. "; | 4 | | and | 5 | | on page 57, line 8, by replacing " Department " with " Department | 6 | | of Commerce and Economic Opportunity "; and | 7 | | on page 78, line 17, by replacing " Department " with " Department | 8 | | of Commerce and Economic Opportunity "; and | 9 | | on page 79, line 3, by replacing " Department " with " Department | 10 | | of Commerce and Economic Opportunity "; and | 11 | | on page 79, by replacing lines 5 and 6 with the following: | 12 | | " Section 605-1025 of the Department of Commerce and Economic | 13 | | Opportunity Law of the
Civil Administrative Code of Illinois. "; | 14 | | and | 15 | | on page 80, line 12, by replacing " Department " with " Department | 16 | | of Commerce and Economic Opportunity ".
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