Bill Text: IL HB3707 | 2019-2020 | 101st General Assembly | Introduced

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Bill Title: Amends the Illinois Enterprise Zone Act. In a Section concerning eligibility for an Enterprise Zone based on the local labor market area, provides that the Department of Commerce and Economic Opportunity may consider information released in the most recent American Community Survey (currently, the federal decennial census only). Provides that the Department of Commerce and Economic Opportunity may award partial points if the applicant demonstrates specific job creation and investment below specified thresholds. Contains provisions concerning provisional certification and provisional decertification. Provides that, for Enterprise Zones that are scheduled to expire on or after January 1, 2022, an application process shall begin 5 years prior to the year in which the Zone expires. Provides that the Department of Commerce and Economic Opportunity may consider written comments or any other information regarding a pending Enterprise Zone application submitted after the deadline and received prior to the decision on all pending applications. Makes changes concerning the total number of Enterprise Zones that may be certified. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2020-06-23 - Rule 19(b) / Re-referred to Rules Committee [HB3707 Detail]

Download: Illinois-2019-HB3707-Introduced.html

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101ST GENERAL ASSEMBLY State of Illinois 2019 and 2020 HB3707 Introduced , by Rep. Mark L. Walker SYNOPSIS AS INTRODUCED:
20 ILCS 655/3 from Ch. 67 1/2, par. 603
20 ILCS 655/4 from Ch. 67 1/2, par. 604
20 ILCS 655/4.1
20 ILCS 655/5.1 from Ch. 67 1/2, par. 606
20 ILCS 655/5.2 from Ch. 67 1/2, par. 607
20 ILCS 655/5.3 from Ch. 67 1/2, par. 608
20 ILCS 655/5.4 from Ch. 67 1/2, par. 609
20 ILCS 655/8.1
Amends the Illinois Enterprise Zone Act. In a Section concerning eligibility for an Enterprise Zone based on the local labor market area, provides that the Department of Commerce and Economic Opportunity may consider information released in the most recent American Community Survey (currently, the federal decennial census only). Provides that the Department of Commerce and Economic Opportunity may award partial points if the applicant demonstrates specific job creation and investment below specified thresholds. Contains provisions concerning provisional certification and provisional decertification. Provides that, for Enterprise Zones that are scheduled to expire on or after January 1, 2022, an application process shall begin 5 years prior to the year in which the Zone expires. Provides that the Department of Commerce and Economic Opportunity may consider written comments or any other information regarding a pending Enterprise Zone application submitted after the deadline and received prior to the decision on all pending applications. Makes changes concerning the total number of Enterprise Zones that may be certified. Effective immediately.
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FISCAL NOTE ACT MAY APPLY
A BILL FOR
HB3707 LRB101 10001 HLH 55103 b
AN ACT concerning State government.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Enterprise Zone Act is amended by
changing Sections 3, 4, 4.1, 5.1, 5.2, 5.3, 5.4, and 8.1 as
follows:
(20 ILCS 655/3) (from Ch. 67 1/2, par. 603)
Sec. 3. Definitions. As used in this Act, the following
words shall have the meanings ascribed to them, unless the
context otherwise requires:
(a) "Department" means the Department of Commerce and
Economic Opportunity.
(b) "Enterprise Zone" means an area of the State certified
by the Department as an Enterprise Zone pursuant to this Act.
(c) "Depressed Area" means an area in which pervasive
poverty, unemployment and economic distress exist.
(d) "Designated Zone Organization" means an association or
entity: (1) the members of which are substantially all
residents of the Enterprise Zone; (2) the board of directors of
which is elected by the members of the organization; (3) which
satisfies the criteria set forth in Section 501(c) (3) or
501(c) (4) of the Internal Revenue Code; and (4) which exists
primarily for the purpose of performing within such area or

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zone for the benefit of the residents and businesses thereof
any of the functions set forth in Section 8 of this Act.
(e) "Agency" means each officer, board, commission and
agency created by the Constitution, in the executive branch of
State government, other than the State Board of Elections; each
officer, department, board, commission, agency, institution,
authority, university, body politic and corporate of the State;
and each administrative unit or corporate outgrowth of the
State government which is created by or pursuant to statute,
other than units of local government and their officers, school
districts and boards of election commissioners; each
administrative unit or corporate outgrowth of the above and as
may be created by executive order of the Governor. No entity
shall be considered an "agency" for the purposes of this Act
unless authorized by law to make rules or regulations.
(f) "Rule" means each agency statement of general
applicability that implements, applies, interprets or
prescribes law or policy, but does not include (i) statements
concerning only the internal management of an agency and not
affecting private rights or procedures available to persons or
entities outside the agency, (ii) intra-agency memoranda, or
(iii) the prescription of standardized forms.
(g) "Board" means the Enterprise Zone Board created in
Section 5.2.1.
(h) "Local labor market area" means an economically
integrated area within which individuals can reside and find

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employment within a reasonable distance or can readily change
jobs without changing their place of residence.
(i) "Full-time equivalent job" means a job in which the new
employee works for the recipient or for a corporation under
contract to the recipient at a rate of at least 35 hours per
week. A recipient who employs labor or services at a specific
site or facility under contract with another may declare one
full-time, permanent job for every 1,820 man hours worked per
year under that contract. Vacations, paid holidays, and sick
time are included in this computation. Overtime is not
considered a part of regular hours.
(j) "Full-time retained job" means any employee defined as
having a full-time or full-time equivalent job preserved at a
specific facility or site, the continuance of which is
threatened by a specific and demonstrable threat, which shall
be specified in the application for development assistance. A
recipient who employs labor or services at a specific site or
facility under contract with another may declare one retained
employee per year for every 1,750 man hours worked per year
under that contract, even if different individuals perform
on-site labor or services.
(Source: P.A. 97-905, eff. 8-7-12; 98-463, eff. 8-16-13.)
(20 ILCS 655/4) (from Ch. 67 1/2, par. 604)
Sec. 4. Qualifications for enterprise zones.
(1) An area is qualified to become an enterprise zone

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which:
(a) is a contiguous area, provided that a zone area may
exclude wholly surrounded territory within its boundaries;
(b) comprises a minimum of one-half square mile and not
more than 12 square miles, or 15 square miles if the zone
is located within the jurisdiction of 4 or more counties or
municipalities, in total area, exclusive of lakes and
waterways; however, in such cases where the enterprise zone
is a joint effort of three or more units of government, or
two or more units of government if situated in a township
which is divided by a municipality of 1,000,000 or more
inhabitants, and where the certification has been in effect
at least one year, the total area shall comprise a minimum
of one-half square mile and not more than thirteen square
miles in total area exclusive of lakes and waterways;
(c) (blank);
(d) (blank);
(e) is (1) entirely within a municipality or (2)
entirely within the unincorporated areas of a county,
except where reasonable need is established for such zone
to cover portions of more than one municipality or county
or (3) both comprises (i) all or part of a municipality and
(ii) an unincorporated area of a county; and
(f) meets 3 or more of the following criteria:
(1) all or part of the local labor market area has
had an annual average unemployment rate of at least

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120% of the State's annual average unemployment rate
for the most recent calendar year or the most recent
fiscal year as reported by the Department of Employment
Security;
(2) designation will result in the development of
substantial employment opportunities by creating or
retaining a minimum aggregate of 1,000 full-time
equivalent jobs due to an aggregate investment of
$100,000,000 or more, and will help alleviate the
effects of poverty and unemployment within the local
labor market area;
(3) at least one of the following applies to the
local labor market area: (A) all or part of the local
labor market area has a poverty rate of at least 20%
according to the latest federal decennial census, the
most recent American Community Survey released by the
U.S. Census Bureau, or other appropriate data source
produced by the U.S. Census Bureau; (B) 50% or more of
children in the local labor market area are eligible to
participate in the federal free lunch or reduced-price
meals program according to reported statistics from
the State Board of Education, or 20% or more households
in the local labor market area receive food stamps or
assistance under the Supplemental Nutrition Assistance
Program ("SNAP") according to the latest federal
decennial census or other data from the U.S. Census

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Bureau;
(4) an abandoned coal mine, a brownfield (as
defined in Section 58.2 of the Environmental
Protection Act), or an inactive nuclear-powered
nuclear powered electrical generation facility where
spent nuclear fuel is stored on-site is located in the
proposed zone area, or all or a portion of the proposed
zone was declared a federal disaster area in the 3
years preceding the date of application;
(5) the local labor market area contains a presence
of large employers that have downsized over the years,
the labor market area has experienced plant closures in
the 5 years prior to the date of application affecting
more than 50 workers, or the local labor market area
has experienced State or federal facility closures in
the 5 years prior to the date of application affecting
more than 50 workers;
(6) based on data from Multiple Listing Service
information or other suitable sources, the local labor
market area contains a high floor vacancy rate of
industrial or commercial properties, vacant or
demolished commercial and industrial structures are
prevalent in the local labor market area, or industrial
structures in the local labor market area are not used
because of age, deterioration, relocation of the
former occupants, or cessation of operation;

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(7) the applicant demonstrates a substantial plan
for using the designation to improve the State and
local government tax base, including income, sales,
and property taxes, including a plan for disposal of
publicly-owned real property by the methods described
in Section 10 of this Act;
(8) significant public infrastructure is present
in the local labor market area in addition to a plan
for infrastructure development and improvement;
(9) high schools or community colleges located
within the local labor market area are engaged in ACT
Work Keys, Manufacturing Skills Standard
Certification, or other industry-based credentials
that prepare students for careers;
(10) (blank); or the change in equalized assessed
valuation of industrial and/or commercial properties
in the 5 years prior to the date of application is
equal to or less than 50% of the State average change
in equalized assessed valuation for industrial and/or
commercial properties, as applicable, for the same
period of time; or
(11) the applicant demonstrates a substantial plan
for using the designation to encourage: (i)
participation by businesses owned by minorities,
women, and persons with disabilities, as those terms
are defined in the Business Enterprise for Minorities,

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Women, and Persons with Disabilities Act; and (ii) the
hiring of minorities, women, and persons with
disabilities.
As provided in Section 10-5.3 of the River Edge
Redevelopment Zone Act, upon the expiration of the term of each
River Edge Redevelopment Zone in existence on August 7, 2012
(the effective date of Public Act 97-905) this amendatory Act
of the 97th General Assembly, that River Edge Redevelopment
Zone will become available for its previous designee or a new
applicant to compete for designation as an enterprise zone. No
preference for designation will be given to the previous
designee of the zone.
(2) Any criteria established by the Department or by law
which utilize the rate of unemployment for a particular area
shall provide that all persons who are not presently employed
and have exhausted all unemployment benefits shall be
considered unemployed, whether or not such persons are actively
seeking employment.
(Source: P.A. 100-838, eff. 8-13-18; 100-1149, eff. 12-14-18;
revised 1-3-19.)
(20 ILCS 655/4.1)
Sec. 4.1. Department recommendations.
(a) For all applications that qualify under Section 4 of
this Act, the Department shall issue recommendations by
assigning a score to each applicant. The scores will be

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determined by the Department, based on the extent to which an
applicant meets the criteria points under subsection (f) of
Section 4 of this Act. Scores will be determined using the
following scoring system:
(1) Up to 50 points for the extent to which the
applicant meets or exceeds the criteria in item (1) of
subsection (f) of Section 4 of this Act, with points
awarded according to the severity of the unemployment.
(2) Up to 50 points for the extent to which the
applicant meets or exceeds the criteria in item (2) of
subsection (f) of Section 4 of this Act, with points
awarded in accordance with the number of jobs created and
the aggregate amount of investment promised. The
Department may award partial points on a pro rata basis
under this paragraph (2) if the applicant demonstrates
specific job creation and investment below the thresholds
set forth in paragraph (2) of subsection (f) of Section 4.
(3) Up to 40 points for the extent to which the
applicant meets or exceeds the criteria in item (3) of
subsection (f) of Section 4 of this Act, with points
awarded in accordance with the severity of the unemployment
rate according to the latest federal decennial census.
(4) Up to 30 points for the extent to which the
applicant meets or exceeds the criteria in item (4) of
subsection (f) of Section 4 of this Act, with points
awarded in accordance with the severity of the

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environmental impact of the abandoned coal mine,
brownfield, or federal disaster area.
(5) Up to 50 points for the extent to which the
applicant meets or exceeds the criteria in item (5) of
subsection (f) of Section 4 of this Act, with points
awarded in accordance with the severity of the applicable
facility closures or downsizing.
(6) Up to 40 points for the extent to which the
applicant meets or exceeds the criteria in item (6) of
subsection (f) of Section 4 of this Act, with points
awarded in accordance with the severity and extent of the
high floor vacancy or deterioration.
(7) Up to 30 points for the extent to which the
applicant meets or exceeds the criteria in item (7) of
subsection (f) of Section 4 of this Act, with points
awarded in accordance with the extent to which the
application addresses a plan to improve the State and local
government tax base, including a plan for disposal of
publicly-owned real property.
(8) Up to 50 points for the extent to which the
applicant meets or exceeds the criteria in item (8) of
subsection (f) of Section 4 of this Act, with points
awarded in accordance with the existence of significant
public infrastructure.
(9) Up to 40 points for the extent to which the
applicant meets or exceeds the criteria in item (9) of

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subsection (f) of Section 4 of this Act, with points
awarded in accordance with the extent to which educational
programs exist for career preparation.
(10) (Blank). Up to 40 points for the extent to which
the applicant meets or exceeds the criteria in item (10) of
subsection (f) of Section 4 of this Act, with points
awarded according to the severity of the change in
equalized assessed valuation.
(11) Up to 40 points for the extent to which the
applicant meets or exceeds the criteria in item (11) of
subsection (f) of Section 4 of this Act.
(12) In awarding points under paragraphs (1) through
(9), the Department may adjust the scoring for applicants
that are located entirely within a county with a population
of less than 300,000 if the Department finds that the
designation will help to alleviate the effects of poverty
and unemployment within the proposed Enterprise Zone.
(b) After assigning a score for each of the individual
criteria using the point system as described in subsection (a),
the Department shall then take the sum of the scores for each
applicant and assign a final score. The Department shall then
submit this information to the Board, as required in subsection
(c) of Section 5.2, as its recommendation.
(Source: P.A. 100-838, eff. 8-13-18.)
(20 ILCS 655/5.1) (from Ch. 67 1/2, par. 606)

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Sec. 5.1. Application to Department.
(a) A county or municipality which has adopted an ordinance
designating an area as an enterprise zone shall make written
application to the Department to have such proposed enterprise
zone certified by the Department as an Enterprise Zone. The
application shall include:
(i) a certified copy of the ordinance designating the
proposed zone;
(ii) a map of the proposed enterprise zone, showing
existing streets and highways;
(iii) an analysis, and any appropriate supporting
documents and statistics, demonstrating that the proposed
zone area is qualified in accordance with Section 4;
(iv) a statement detailing any tax, grant, and other
financial incentives or benefits, and any programs, to be
provided by the municipality or county to business
enterprises within the zone, other than those provided in
the designating ordinance, which are not to be provided
throughout the municipality or county;
(v) a statement setting forth the economic development
and planning objectives for the zone;
(vi) a statement describing the functions, programs,
and services to be performed by designated zone
organizations within the zone;
(vii) an estimate of the economic impact of the zone,
considering all of the tax incentives, financial benefits

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and programs contemplated, upon the revenues of the
municipality or county;
(viii) a transcript of all public hearings on the zone;
(ix) in the case of a joint application, a statement
detailing the need for a zone covering portions of more
than one municipality or county and a description of the
agreement between joint applicants; and
(x) such additional information as the Department by
regulation may require.
(b) The Department may provide for provisional
certification of substantially complete applications pending
the receipt of any of the items identified in subsection (a) of
this Section or any additional information requested by the
Department.
(Source: P.A. 82-1019.)
(20 ILCS 655/5.2) (from Ch. 67 1/2, par. 607)
Sec. 5.2. Department Review of Enterprise Zone
Applications.
(a) All applications which are to be considered and acted
upon by the Department during a calendar year must be received
by the Department no later than December 31 of the preceding
calendar year.
Any application received after December 31 of any calendar
year shall be held by the Department for consideration and
action during the following calendar year.

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Each enterprise zone application shall include a specific
definition of the applicant's local labor market area.
(a-5) The Department shall, no later than July 31, 2013,
develop an application process for an enterprise zone
application. The Department has emergency rulemaking authority
for the purpose of application development only until 12 months
after the effective date of this amendatory Act of the 97th
General Assembly.
(b) Upon receipt of an application from a county or
municipality the Department shall review the application to
determine whether the designated area qualifies as an
enterprise zone under Section 4 of this Act.
(c) No later than June 30, the Department shall notify all
applicant municipalities and counties of the Department's
determination of the qualification of their respective
designated enterprise zone areas, and shall send qualifying
applications, including the applicant's scores for each of the
items set forth in items (1) through (10) of subsection (a) of
Section 4.1 and the applicant's final score under that Section,
to the Board for the Board's consideration, along with
supporting documentation of the basis for the Department's
decision.
(d) If any such designated area is found to be qualified to
be an enterprise zone by the Department under subsection (c) of
this Section, the Department shall, no later than July 15, send
a letter of notification to each member of the General Assembly

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whose legislative district or representative district contains
all or part of the designated area and publish a notice in at
least one newspaper of general circulation within the proposed
zone area to notify the general public of the application and
their opportunity to comment. Such notice shall include a
description of the area and a brief summary of the application
and shall indicate locations where the applicant has provided
copies of the application for public inspection. The notice
shall also indicate appropriate procedures for the filing of
written comments from zone residents, business, civic and other
organizations and property owners to the Department. The
Department and the Board may consider written comments
submitted pursuant to this Section or any other information
regarding a pending enterprise zone application submitted
after the deadline for enterprise zone application and received
prior to the Board's decision on all pending applications.
(e) (Blank).
(f) (Blank).
(g) (Blank).
(h) (Blank).
(Source: P.A. 97-905, eff. 8-7-12; 98-109, eff. 7-25-13.)
(20 ILCS 655/5.3) (from Ch. 67 1/2, par. 608)
Sec. 5.3. Certification of Enterprise Zones; effective
date.
(a) Certification of Board-approved designated Enterprise

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Zones shall be made by the Department by certification of the
designating ordinance. The Department shall promptly issue a
certificate for each Enterprise Zone upon approval by the
Board. The certificate shall be signed by the Director of the
Department, shall make specific reference to the designating
ordinance, which shall be attached thereto, and shall be filed
in the office of the Secretary of State. A certified copy of
the Enterprise Zone Certificate, or a duplicate original
thereof, shall be recorded in the office of recorder of deeds
of the county in which the Enterprise Zone lies.
(b) An Enterprise Zone certified prior to January 1, 2016
or on or after January 1, 2017 shall be effective on January 1
of the first calendar year after Department certification. An
Enterprise Zone certified on or after January 1, 2016 and on or
before December 31, 2016 shall be effective on the date of the
Department's certification. The Department shall transmit a
copy of the certification to the Department of Revenue, and to
the designating municipality or county.
Upon certification of an Enterprise Zone, the terms and
provisions of the designating ordinance shall be in effect, and
may not be amended or repealed except in accordance with
Section 5.4.
(c) With the exception of Enterprise Zones scheduled to
expire before December 31, 2018, an Enterprise Zone designated
before the effective date of this amendatory Act of the 97th
General Assembly shall be in effect for 30 calendar years, or

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for a lesser number of years specified in the certified
designating ordinance. Notwithstanding the foregoing, any
Enterprise Zone in existence on the effective date of this
amendatory Act of the 98th General Assembly that has a term of
20 calendar years may be extended for an additional 10 calendar
years upon amendment of the designating ordinance by the
designating municipality or county and submission of the
ordinance to the Department. The amended ordinance must be
properly recorded in the Office of Recorder of Deeds of each
county in which the Enterprise Zone lies. Each Enterprise Zone
in existence on the effective date of this amendatory Act of
the 97th General Assembly that is scheduled to expire before
July 1, 2016 may have its termination date extended until July
1, 2016 upon amendment of the designating ordinance by the
designating municipality or county extending the termination
date to July 1, 2016 and submission of the ordinance to the
Department. The amended ordinance must be properly recorded in
the Office of Recorder of Deeds of each county in which the
Enterprise Zone lies. An Enterprise Zone designated on or after
the effective date of this amendatory Act of the 97th General
Assembly shall be in effect for a term of 15 calendar years, or
for a lesser number of years specified in the certified
designating ordinance. An enterprise zone designated on or
after the effective date of this amendatory Act of the 97th
General Assembly shall be subject to review by the Board after
13 years for an additional 10-year designation beginning on the

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expiration date of the enterprise zone. During the review
process, the Board shall consider the costs incurred by the
State and units of local government as a result of tax benefits
received by the enterprise zone as well as whether the Zone has
substantially implemented the plans and achieved the goals set
forth in its original application, including satisfaction of
the investment and job creation or retention information
provided by the Applicant with respect to paragraph (f) of
subsection (1) of Section 4 of the Act. Enterprise Zones shall
terminate at midnight of December 31 of the final calendar year
of the certified term, except as provided in Section 5.4.
(d) Except for Enterprise Zones authorized under
subsection (f), Zones that become available for designation
pursuant to Section 10-5.3 of the River Edge Redevelopment Zone
Act, or those designated pursuant to another statutory
authority providing for the creation of Enterprise Zones, no No
more than a total of 97 12 Enterprise Zones may be certified by
the Department and in existence in any calendar year 1984, no
more than 12 Enterprise Zones may be certified by the
Department in calendar year 1985, no more than 13 Enterprise
Zones may be certified by the Department in calendar year 1986,
no more than 15 Enterprise Zones may be certified by the
Department in calendar year 1987, and no more than 20
Enterprise Zones may be certified by the Department in calendar
year 1990. In other calendar years, no more than 13 Enterprise
Zones may be certified by the Department. The Department may

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also designate up to 8 additional Enterprise Zones outside the
regular application cycle if warranted by the extreme economic
circumstances as determined by the Department. The Department
may also designate one additional Enterprise Zone outside the
regular application cycle if an aircraft manufacturer agrees to
locate an aircraft manufacturing facility in the proposed
Enterprise Zone. Notwithstanding any other provision of this
Act, no more than 89 Enterprise Zones may be certified by the
Department for the 10 calendar years commencing with 1983. The
7 additional Enterprise Zones authorized by Public Act 86-15
shall not lie within municipalities or unincorporated areas of
counties that abut or are contiguous to Enterprise Zones
certified pursuant to this Section prior to June 30, 1989. The
7 additional Enterprise Zones (excluding the additional
Enterprise Zone which may be designated outside the regular
application cycle) authorized by Public Act 86-1030 shall not
lie within municipalities or unincorporated areas of counties
that abut or are contiguous to Enterprise Zones certified
pursuant to this Section prior to February 28, 1990. Beginning
in calendar year 2004 and until December 31, 2008, one
additional enterprise zone may be certified by the Department.
In any calendar year, the Department may not certify more than
3 Zones located within the same municipality. The Department
may certify Enterprise Zones in each of the 10 calendar years
commencing with 1983. The Department may not certify more than
a total of 18 Enterprise Zones located within the same county

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(whether within municipalities or within unincorporated
territory) for the 10 calendar years commencing with 1983.
Thereafter, the Department may not certify any additional
Enterprise Zones, but may amend and rescind certifications of
existing Enterprise Zones in accordance with Section 5.4.
Beginning in calendar year 2019 and for any year in which there
are at least 4 Zones available for designation, at least 25% of
Zones available for designation in a given calendar year must
be awarded to Zones located in counties with populations of
less than 300,000 unless there are no applicants from such
locations for that calendar year.
(e) Notwithstanding any other provision of law, if (i) the
county board of any county in which a current military base is
located, in part or in whole, or in which a military base that
has been closed within 20 years of the effective date of this
amendatory Act of 1998 is located, in part or in whole, adopts
a designating ordinance in accordance with Section 5 of this
Act to designate the military base in that county as an
enterprise zone and (ii) the property otherwise meets the
qualifications for an enterprise zone as prescribed in Section
4 of this Act, then the Department may certify the designating
ordinance or ordinances, as the case may be.
(f) Applications for Enterprise Zones that are scheduled to
expire in 2016, including Enterprise Zones that have been
extended until 2016 by this amendatory Act of the 97th General
Assembly, shall be submitted to the Department no later than

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December 31, 2014. At that time, the Zone becomes available for
either the previously designated area or a different area to
compete for designation. No preference for designation as a
Zone will be given to the previously designated area.
For Enterprise Zones that are scheduled to expire on or
after January 1, 2017 and prior to January 1, 2022, an
application process shall begin 2 years prior to the year in
which the Zone expires. At that time, the Zone becomes
available for either the previously designated area or a
different area to compete for designation. For Enterprise Zones
that are scheduled to expire on or after January 1, 2022, an
application process shall begin 5 years prior to the year in
which the Zone expires. At that time, the Zone becomes
available for either the previously designated area or a
different area to compete for designation. No preference for
designation as a Zone will be given to the previously
designated area.
Each Enterprise Zone that reapplies for certification but
does not receive a new certification shall expire on its
scheduled termination date.
(Source: P.A. 98-109, eff. 7-25-13; 99-615, eff. 7-22-16.)
(20 ILCS 655/5.4) (from Ch. 67 1/2, par. 609)
Sec. 5.4. Amendment and Decertification of Enterprise
Zones.
(a) The terms of a certified enterprise zone designating

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ordinance may be amended to
(i) alter the boundaries of the Enterprise Zone, or
(ii) expand, limit or repeal tax incentives or benefits
provided in the ordinance, or
(iii) alter the termination date of the zone, or
(iv) make technical corrections in the enterprise zone
designating ordinance; but such amendment shall not be
effective unless the Department issues an amended
certificate for the Enterprise Zone, approving the amended
designating ordinance. Upon the adoption of any ordinance
amending or repealing the terms of a certified enterprise
zone designating ordinance, the municipality or county
shall promptly file with the Department an application for
approval thereof, containing substantially the same
information as required for an application under Section
5.1 insofar as material to the proposed changes. The
municipality or county must hold a public hearing on the
proposed changes as specified in Section 5 and, if the
amendment is to effectuate the limitation of tax abatements
under Section 5.4.1, then the public notice of the hearing
shall state that property that is in both the enterprise
zone and a redevelopment project area may not receive tax
abatements unless within 60 days after the adoption of the
amendment to the designating ordinance the municipality
has determined that eligibility for tax abatements has been
established,

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(v) include an area within another municipality or
county as part of the designated enterprise zone provided
the requirements of Section 4 are complied with, or
(vi) effectuate the limitation of tax abatements under
Section 5.4.1.
(b) The Department shall approve or disapprove a proposed
amendment to a certified enterprise zone within 90 days of its
receipt of the application from the municipality or county. The
Department may not approve changes in a Zone which are not in
conformity with this Act, as now or hereafter amended, or with
other applicable laws. If the Department issues an amended
certificate for an Enterprise Zone, the amended certificate,
together with the amended zone designating ordinance, shall be
filed, recorded and transmitted as provided in Section 5.3.
(c) An Enterprise Zone may be decertified by joint action
of the Department and the designating county or municipality in
accordance with this Section. The designating county or
municipality shall conduct at least one public hearing within
the zone prior to its adoption of an ordinance of
de-designation. The mayor of the designating municipality or
the chairman of the county board of the designating county
shall execute a joint decertification agreement with the
Department. A decertification of an Enterprise Zone shall not
become effective until at least 6 months after the execution of
the decertification agreement, which shall be filed in the
office of the Secretary of State.

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(d) An Enterprise Zone may be decertified for cause by the
Department in accordance with this Section. Prior to
decertification: (1) the Department shall notify the chief
elected official of the designating county or municipality in
writing of the specific deficiencies which provide cause for
decertification; (2) the Department shall place the
designating county or municipality on probationary status for
at least 6 months during which time corrective action may be
achieved in the enterprise zone by the designating county or
municipality; and, (3) the Department shall conduct at least
one public hearing within the zone. If such corrective action
is not achieved during the probationary period, the Department
shall issue an amended certificate signed by the Director of
the Department decertifying the enterprise zone, which
certificate shall be filed in the office of the Secretary of
State. A certified copy of the amended enterprise zone
certificate, or a duplicate original thereof, shall be recorded
in the office of recorder of the county in which the enterprise
zone lies, and shall be provided to the chief elected official
of the designating county or municipality. Decertification of
an Enterprise Zone shall not become effective until 60 days
after the date of filing.
(d-1) The Department shall provisionally decertify any
Enterprise Zone that fails to report any capital investment,
job creation or retention, or State tax expenditures for 3
consecutive calendar years. Prior to provisional

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decertification: (1) the Department shall notify the chief
elected official of the designating county or municipality in
writing of the specific deficiencies which provide cause for
decertification; (2) the Department shall place the
designating county or municipality on probationary status for
at least 6 months during which time corrective action may be
achieved in the Enterprise Zone by the designating county or
municipality; and (3) the Department shall conduct at least one
public hearing within the Zone. If such corrective action is
not achieved during the probationary period, the Department
shall issue an amended certificate signed by the Director of
the Department provisionally decertifying the Enterprise Zone
as of the scheduled termination date of the then-current
designation. In the event that the provisionally-decertified
Zone was approved and designated after the 101st General
Assembly and has been in existence for less than 15 years, such
Zone shall not be eligible for an additional 10-year
designation after the expiration date of the original Zone set
forth in subsection (c) of Section 5.3. Further, if such
corrective action is not achieved during the probationary
period provided for in this Section, following such
probationary period the Zone becomes available for a different
area to compete for designation.
(e) In the event of a decertification, provisional
decertification, or an amendment reducing the length of the
term or the area of an Enterprise Zone or the adoption of an

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ordinance reducing or eliminating tax benefits in an Enterprise
Zone, all benefits previously extended within the Zone pursuant
to this Act or pursuant to any other Illinois law providing
benefits specifically to or within Enterprise Zones shall
remain in effect for the original stated term of the Enterprise
Zone, with respect to business enterprises within the Zone on
the effective date of such decertification, provisional
decertification, or amendment, and with respect to individuals
participating in urban homestead programs under this Act.
(f) Except as otherwise provided in Section 5.4.1, with
respect to business enterprises (or expansions thereof) which
are proposed or under development within a Zone at the time of
a decertification or an amendment reducing the length of the
term of the Zone, or excluding from the Zone area the site of
the proposed enterprise, or an ordinance reducing or
eliminating tax benefits in a Zone, such business enterprise
shall be entitled to the benefits previously applicable within
the Zone for the original stated term of the Zone, if the
business enterprise establishes:
(i) that the proposed business enterprise or expansion
has been committed to be located within the Zone;
(ii) that substantial and binding financial
obligations have been made towards the development of such
enterprise; and
(iii) that such commitments have been made in
reasonable reliance on the benefits and programs which were

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to have been applicable to the enterprise by reason of the
Zone, including in the case of a reduction in term of a
zone, the original length of the term.
In declaratory judgment actions under this paragraph, the
Department and the designating municipality or county shall be
necessary parties defendant.
(Source: P.A. 90-258, eff. 7-30-97.)
(20 ILCS 655/8.1)
Sec. 8.1. Accounting.
(a) Any business receiving tax incentives due to its
location within an Enterprise Zone or its designation as a High
Impact Business must annually report to the Department of
Revenue information reasonably required by the Department of
Revenue to enable the Department to verify and calculate the
total Enterprise Zone or High Impact Business tax benefits for
property taxes and taxes imposed by the State that are received
by the business, broken down by incentive category and
enterprise zone, if applicable. Reports will be due no later
than May 31 of each year and shall cover the previous calendar
year. The first report will be for the 2012 calendar year and
will be due no later than May 31, 2013. Failure to report data
may result in ineligibility to receive incentives. To the
extent that a business receiving tax incentives has obtained an
Enterprise Zone Building Materials Exemption Certificate or a
High Impact Business Building Materials Exemption Certificate,

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that business is required to report those building materials
exemption benefits only under subsection (a-5) of this Section.
No additional reporting for those building materials exemption
benefits is required under this subsection (a). In addition, if
the Department determines that 80% or more of the businesses
receiving tax incentives because of their location within a
particular Enterprise Zone failed to submit the information
required under this subsection (a) to the Department in any
calendar year, then the Enterprise Zone may be decertified by
the Department. The Department, in consultation with the
Department of Revenue, is authorized to adopt rules governing
ineligibility to receive exemptions, including the length of
ineligibility. Factors to be considered in determining whether
a business is ineligible shall include, but are not limited to,
prior compliance with the reporting requirements, cooperation
in discontinuing and correcting violations, the extent of the
violation, and whether the violation was willful or
inadvertent.
(a-5) Each contractor or other entity that has been issued
an Enterprise Zone Building Materials Exemption Certificate
under Section 5k of the Retailers' Occupation Tax Act or a High
Impact Business Building Materials Exemption Certificate under
Section 5l of the Retailers' Occupation Tax Act shall annually
report to the Department of Revenue the total value of the
Enterprise Zone or High Impact Business building materials
exemption from State taxes. Reports shall contain information

HB3707 - 29 - LRB101 10001 HLH 55103 b
reasonably required by the Department of Revenue to enable it
to verify and calculate the total tax benefits for taxes
imposed by the State, and shall be broken down by Enterprise
Zone. Reports are due no later than May 31 of each year and
shall cover the previous calendar year. The first report will
be for the 2013 calendar year and will be due no later than May
31, 2014. Failure to report data may result in revocation of
the Enterprise Zone Building Materials Exemption Certificate
or High Impact Business Building Materials Exemption
Certificate issued to the contractor or other entity.
The Department of Revenue is authorized to adopt rules
governing revocation determinations, including the length of
revocation. Factors to be considered in revocations shall
include, but are not limited to, prior compliance with the
reporting requirements, cooperation in discontinuing and
correcting violations, and whether the certificate was used
unlawfully during the preceding year.
(b) Each person required to file a return under the Gas
Revenue Tax Act, the Gas Use Tax Act, the Electricity Excise
Tax Act, or the Telecommunications Excise Tax Act shall file,
on or before May 31 of each year, a report with the Department
of Revenue, in the manner and form required by the Department
of Revenue, containing information reasonably required by the
Department of Revenue to enable the Department of Revenue to
calculate the amount of the deduction for taxes imposed by the
State that is taken under each Act, respectively, due to the

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location of a business in an Enterprise Zone or its designation
as a High Impact Business. The report shall be itemized by
business and the business location address.
(c) Employers shall report their job creation, retention,
and capital investment numbers within the zone annually to the
Department of Revenue no later than May 31 of each calendar
year. High Impact Businesses shall report their job creation,
retention, and capital investment numbers to the Department of
Revenue no later than May 31 of each year. With respect to job
creation or retention, employers and High Impact Businesses
shall use best efforts to submit diversity information related
to the gender and ethnicity of such employees.
(d) The Department of Revenue will aggregate and collect
the tax, job, and capital investment data by Enterprise Zone
and High Impact Business and report this information, formatted
to exclude company-specific proprietary information, to the
Department and the Board by August 1, 2013, and by August 1 of
every calendar year thereafter. The Department will include
this information in their required reports under Section 6 of
this Act. The Board shall consider this information during the
reviews required under subsection (d-5) of Section 5.4 of this
Act and subsection (c) of Section 5.3 of this Act.
(e) The Department of Revenue, in its discretion, may
require that the reports filed under this Section be submitted
electronically.
(f) The Department of Revenue shall have the authority to

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adopt rules as are reasonable and necessary to implement the
provisions of this Section.
(Source: P.A. 97-905, eff. 8-7-12; 98-109, eff. 7-25-13.)
Section 99. Effective date. This Act takes effect January
1, 2020.