Bill Text: IL HB6068 | 2009-2010 | 96th General Assembly | Introduced


Bill Title: Amends the Enterprise Zone Act. Provides that Enterprise Zones shall be in effect for 60 calendar years (instead of 30 calendar years) unless a shorter period of time is specified in the certified designating ordinance. Amends the Public Utilities Act to make conforming changes. Effective immediately.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2010-03-02 - Added Co-Sponsor Rep. Anthony DeLuca [HB6068 Detail]

Download: Illinois-2009-HB6068-Introduced.html


96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
HB6068

Introduced 2/11/2010, by Rep. Jehan A. Gordon

SYNOPSIS AS INTRODUCED:
20 ILCS 655/5.3 from Ch. 67 1/2, par. 608
220 ILCS 5/9-222.1 from Ch. 111 2/3, par. 9-222.1

Amends the Enterprise Zone Act. Provides that Enterprise Zones shall be in effect for 60 calendar years (instead of 30 calendar years) unless a shorter period of time is specified in the certified designating ordinance. Amends the Public Utilities Act to make conforming changes. Effective immediately.
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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 revenue.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Illinois Enterprise Zone Act is amended by
5 changing Section 5.3 as follows:
6 (20 ILCS 655/5.3) (from Ch. 67 1/2, par. 608)
7 Sec. 5.3. Certification of Enterprise Zones; Effective
8 date.
9 (a) Approval of designated Enterprise Zones shall be made
10 by the Department by certification of the designating
11 ordinance. The Department shall promptly issue a certificate
12 for each Enterprise Zone upon its approval. The certificate
13 shall be signed by the Director of the Department, shall make
14 specific reference to the designating ordinance, which shall be
15 attached thereto, and shall be filed in the office of the
16 Secretary of State. A certified copy of the Enterprise Zone
17 Certificate, or a duplicate original thereof, shall be recorded
18 in the office of recorder of deeds of the county in which the
19 Enterprise Zone lies.
20 (b) An Enterprise Zone shall be effective upon its
21 certification. The Department shall transmit a copy of the
22 certification to the Department of Revenue, and to the
23 designating municipality or county.

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1 Upon certification of an Enterprise Zone, the terms and
2 provisions of the designating ordinance shall be in effect, and
3 may not be amended or repealed except in accordance with
4 Section 5.4.
5 (c) An Enterprise Zone shall be in effect for 60 30
6 calendar years, or for a lesser number of years specified in
7 the certified designating ordinance. Enterprise Zones shall
8 terminate at midnight of December 31 of the final calendar year
9 of the certified term, except as provided in Section 5.4.
10 (d) No more than 12 Enterprise Zones may be certified by
11 the Department in calendar year 1984, no more than 12
12 Enterprise Zones may be certified by the Department in calendar
13 year 1985, no more than 13 Enterprise Zones may be certified by
14 the Department in calendar year 1986, no more than 15
15 Enterprise Zones may be certified by the Department in calendar
16 year 1987, and no more than 20 Enterprise Zones may be
17 certified by the Department in calendar year 1990. In other
18 calendar years, no more than 13 Enterprise Zones may be
19 certified by the Department. The Department may also designate
20 up to 8 additional Enterprise Zones outside the regular
21 application cycle if warranted by the extreme economic
22 circumstances as determined by the Department. The Department
23 may also designate one additional Enterprise Zone outside the
24 regular application cycle if an aircraft manufacturer agrees to
25 locate an aircraft manufacturing facility in the proposed
26 Enterprise Zone. Notwithstanding any other provision of this

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1 Act, no more than 89 Enterprise Zones may be certified by the
2 Department for the 10 calendar years commencing with 1983. The
3 7 additional Enterprise Zones authorized by Public Act 86-15
4 shall not lie within municipalities or unincorporated areas of
5 counties that abut or are contiguous to Enterprise Zones
6 certified pursuant to this Section prior to June 30, 1989. The
7 7 additional Enterprise Zones (excluding the additional
8 Enterprise Zone which may be designated outside the regular
9 application cycle) authorized by Public Act 86-1030 shall not
10 lie within municipalities or unincorporated areas of counties
11 that abut or are contiguous to Enterprise Zones certified
12 pursuant to this Section prior to February 28, 1990. Beginning
13 in calendar year 2004 and until December 31, 2008, one
14 additional enterprise zone may be certified by the Department.
15 In any calendar year, the Department may not certify more than
16 3 Zones located within the same municipality. The Department
17 may certify Enterprise Zones in each of the 10 calendar years
18 commencing with 1983. The Department may not certify more than
19 a total of 18 Enterprise Zones located within the same county
20 (whether within municipalities or within unincorporated
21 territory) for the 10 calendar years commencing with 1983.
22 Thereafter, the Department may not certify any additional
23 Enterprise Zones, but may amend and rescind certifications of
24 existing Enterprise Zones in accordance with Section 5.4.
25 (e) Notwithstanding any other provision of law, if (i) the
26 county board of any county in which a current military base is

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1 located, in part or in whole, or in which a military base that
2 has been closed within 20 years of the effective date of this
3 amendatory Act of 1998 is located, in part or in whole, adopts
4 a designating ordinance in accordance with Section 5 of this
5 Act to designate the military base in that county as an
6 enterprise zone and (ii) the property otherwise meets the
7 qualifications for an enterprise zone as prescribed in Section
8 4 of this Act, then the Department may certify the designating
9 ordinance or ordinances, as the case may be.
10 (Source: P.A. 92-16, eff. 6-28-01; 92-777, eff. 1-1-03; 93-436,
11 eff. 1-1-04.)
12 Section 10. The Public Utilities Act is amended by changing
13 Section 9-222.1 as follows:
14 (220 ILCS 5/9-222.1) (from Ch. 111 2/3, par. 9-222.1)
15 Sec. 9-222.1. A business enterprise which is located within
16 an area designated by a county or municipality as an enterprise
17 zone pursuant to the Illinois Enterprise Zone Act or located in
18 a federally designated Foreign Trade Zone or Sub-Zone shall be
19 exempt from the additional charges added to the business
20 enterprise's utility bills as a pass-on of municipal and State
21 utility taxes under Sections 9-221 and 9-222 of this Act, to
22 the extent such charges are exempted by ordinance adopted in
23 accordance with paragraph (e) of Section 8-11-2 of the Illinois
24 Municipal Code in the case of municipal utility taxes, and to

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1 the extent such charges are exempted by the percentage
2 specified by the Department of Commerce and Economic
3 Opportunity in the case of State utility taxes, provided such
4 business enterprise meets the following criteria:
5 (1) it (i) makes investments which cause the creation
6 of a minimum of 200 full-time equivalent jobs in Illinois;
7 (ii) makes investments of at least $175,000,000 which cause
8 the creation of a minimum of 150 full-time equivalent jobs
9 in Illinois; (iii) makes investments that cause the
10 retention of a minimum of 300 full-time equivalent jobs in
11 the manufacturing sector, as defined by the North American
12 Industry Classification System, in an area in Illinois in
13 which the unemployment rate is above 9% and makes an
14 application to the Department within 3 months after the
15 effective date of this amendatory Act of the 96th General
16 Assembly and certifies relocation of the 300 full-time
17 equivalent jobs within 36 months after the application;
18 (iv) makes investments which cause the retention of a
19 minimum of 1,000 full-time jobs in Illinois; or (v) makes
20 an application to the Department within 2 months after the
21 effective date of this amendatory Act of the 96th General
22 Assembly and makes investments that cause the retention of
23 a minimum of 500 full-time equivalent jobs in 2009 and
24 2010, 675 full-time jobs in Illinois in 2011, 850 full-time
25 jobs in 2012, and 1,000 full-time jobs in 2013, in the
26 manufacturing sector as defined by the North American

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1 Industry Classification System; and
2 (2) it is either (i) located in an Enterprise Zone
3 established pursuant to the Illinois Enterprise Zone Act or
4 (ii) located in a federally designated Foreign Trade Zone
5 or Sub-Zone and is designated a High Impact Business by the
6 Department of Commerce and Economic Opportunity; and
7 (3) it is certified by the Department of Commerce and
8 Economic Opportunity as complying with the requirements
9 specified in clauses (1) and (2) of this Section.
10 The Department of Commerce and Economic Opportunity shall
11 determine the period during which such exemption from the
12 charges imposed under Section 9-222 is in effect which shall
13 not exceed 60 30 years or the certified term of the enterprise
14 zone, whichever period is shorter, except that the exemption
15 period for a business enterprise qualifying under item (iii) of
16 clause (1) of this Section shall not exceed 60 30 years.
17 The Department of Commerce and Economic Opportunity shall
18 have the power to promulgate rules and regulations to carry out
19 the provisions of this Section including procedures for
20 complying with the requirements specified in clauses (1) and
21 (2) of this Section and procedures for applying for the
22 exemptions authorized under this Section; to define the amounts
23 and types of eligible investments which business enterprises
24 must make in order to receive State utility tax exemptions
25 pursuant to Sections 9-222 and 9-222.1 of this Act; to approve
26 such utility tax exemptions for business enterprises whose

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1 investments are not yet placed in service; and to require that
2 business enterprises granted tax exemptions repay the exempted
3 tax should the business enterprise fail to comply with the
4 terms and conditions of the certification. However, no business
5 enterprise shall be required, as a condition for certification
6 under clause (3) of this Section, to attest that its decision
7 to invest under clause (1) of this Section and to locate under
8 clause (2) of this Section is predicated upon the availability
9 of the exemptions authorized by this Section.
10 A business enterprise shall be exempt, in whole or in part,
11 from the pass-on charges of municipal utility taxes imposed
12 under Section 9-221, only if it meets the criteria specified in
13 clauses (1) through (3) of this Section and the municipality
14 has adopted an ordinance authorizing the exemption under
15 paragraph (e) of Section 8-11-2 of the Illinois Municipal Code.
16 Upon certification of the business enterprises by the
17 Department of Commerce and Economic Opportunity, the
18 Department of Commerce and Economic Opportunity shall notify
19 the Department of Revenue of such certification. The Department
20 of Revenue shall notify the public utilities of the exemption
21 status of business enterprises from the pass-on charges of
22 State and municipal utility taxes. Such exemption status shall
23 be effective within 3 months after certification of the
24 business enterprise.
25 (Source: P.A. 96-716, eff. 8-25-09; 96-865, eff. 1-21-10.)
26 Section 99. Effective date. This Act takes effect upon

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1 becoming law.
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