Bill Text: IL SB0352 | 2009-2010 | 96th General Assembly | Engrossed

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Bill Title: Amends the Regulatory Sunset Act. Makes a technical change in a Section concerning the short title.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Engrossed - Dead) 2010-11-18 - Assigned to Executive Committee [SB0352 Detail]

Download: Illinois-2009-SB0352-Engrossed.html

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AN ACT concerning government.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The River Edge Redevelopment Zone Act is amended
by adding Section 10-15 as follows:
(65 ILCS 115/10-15 new)
Sec. 10-15. Riverfront Development Fund.
(a) Purpose. The General Assembly has determined that it is
in the interest of the State of Illinois to promote development
that will protect, promote, and improve the riverfront areas of
a financially distressed city designated under the Financially
Distressed City Law.
(b) Definitions. As used in this Section:
"Agreement" means the agreement between an eligible
employer and the Department under the provisions of
subsection (f) of this Section.
"Department" means the Department of Commerce and
Economic Opportunity.
"Director" means the Director of Commerce and Economic
Opportunity.
"Eligible developer" means an individual, partnership,
corporation, or other entity that develops within a river
edge redevelopment zone that is located within a

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municipality designated as a financially distressed city.
"Eligible employer" means an individual, partnership,
corporation, or other entity that employs full-time
employees within a river edge redevelopment zone that is
located within a municipality designated as a financially
distressed city.
"Full-time employee" means an individual who is
employed for consideration for at least 35 hours each week
or who renders any other standard of service generally
accepted by industry custom or practice as full-time
employment. An individual for whom a W-2 is issued by a
Professional Employer Organization (PEO) is a full-time
employee if employed in the service of the eligible
employer for consideration for at least 35 hours each week
or who renders any other standard of service generally
accepted by industry custom or practice as full-time
employment.
"Incremental income tax" means the total amount
withheld from the compensation of new employees under
Article 7 of the Illinois Income Tax Act arising from
employment by an eligible employer.
"Infrastructure" means roads, access roads, streets,
bridges, sidewalks, water and sewer line extensions, water
distribution and purification facilities, waste disposal
systems, sewage treatment facilities, stormwater drainage
and retention facilities, gas and electric utility line

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extensions, or other improvements that are essential to the
development of the project that is the subject of an
agreement.
"New employee" means a full-time employee first
employed by an eligible employer in the project that is the
subject of an agreement between the Department and an
eligible developer and who is hired after the eligible
developer enters into the agreement, but does not include:
(1) an employee of the eligible employer who
performs a job that (i) existed for at least 6 months
before the employee was hired and (ii) was previously
performed by another employee;
(2) an employee of the eligible employer who was
previously employed in Illinois by a related member of
the eligible employer and whose employment was shifted
to the eligible employer after the eligible employer
entered into the agreement; or
(3) a child, grandchild, parent, or spouse, other
than a spouse who is legally separated from the
individual, of any individual who has a direct or an
indirect ownership interest of at least 5% in the
profits, capital, or value of the eligible employer.
Notwithstanding item (2) of this definition, an
employee may be considered a new employee under the
agreement if the employee performs a job that was
previously performed by an employee who was:

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(A) treated under the agreement as a new employee;
and
(B) promoted by the eligible employer to another
job.
"Professional Employer Organization" (PEO) means an
employee leasing company, as defined in Section
206.1(A)(2) of the Illinois Unemployment Insurance Act.
"Related member" means a person or entity that, with
respect to the eligible employer during any portion of the
taxable year, is any one of the following:
(1) an individual stockholder, if the stockholder
and the members of the stockholder's family (as defined
in Section 318 of the Internal Revenue Code) own
directly, indirectly, beneficially, or constructively,
in the aggregate, at least 50% of the value of the
eligible employer's outstanding stock;
(2) a partnership, estate, or trust and any partner
or beneficiary, if the partnership, estate, or trust,
and its partners or beneficiaries own directly,
indirectly, or beneficially, or constructively, in the
aggregate, at least 50% of the profits, capital, stock,
or value of the eligible employer;
(3) a corporation, and any party related to the
corporation in a manner that would require an
attribution of stock from the corporation to the party
or from the party to the corporation under the

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attribution rules of Section 318 of the Internal
Revenue Code, if the taxpayer owns directly,
indirectly, beneficially, or constructively at least
50% of the value of the corporation's outstanding
stock;
(4) a corporation and any party related to that
corporation in a manner that would require an
attribution of stock from the corporation to the party
or from the party to the corporation under the
attribution rules of Section 318 of the Internal
Revenue Code, if the corporation and all such related
parties own in the aggregate at least 50% of the
profits, capital, stock, or value of the eligible
employer; or
(5) a person to or from whom there is attribution
of stock ownership in accordance with Section 1563(e)
of the Internal Revenue Code, except, for purposes of
determining whether a person is a related member under
this definition, 20% shall be substituted for 5%
wherever 5% appears in Section 1563(e) of the Internal
Revenue Code.
(c) The Riverfront Development Fund. The Riverfront
Development Fund is created as a special fund in the State
treasury. As soon as possible after the first day of each
month, upon certification of the Department of Revenue, the
Comptroller shall order transferred and the Treasurer shall

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transfer from the General Revenue Fund to the Riverfront
Development Fund an amount equal to the incremental income tax
for the previous month attributable to a project that is the
subject of an agreement.
(d) Grants from the Riverfront Development Fund. In State
fiscal years 2011 through 2020, all moneys in the Riverfront
Development Fund, held solely for the benefit of eligible
developers, shall be appropriated to the Department to make
infrastructure grants to eligible developers pursuant to
agreements.
(e) Limitation on grant amounts. The total amount of a
grant to an eligible developer shall not exceed the lesser of:
(1) $3,000,000 in each State fiscal year; or
(2) the total amount of infrastructure costs incurred
by the eligible developer with respect to a project that is
the subject of an agreement.
No eligible developer shall receive moneys that are
attributable to a project that is not the subject of the
developer's agreement with the Department.
(f) Agreements with applicants. The Department shall enter
into an agreement with an eligible developer who is entitled to
grants under this Section. The agreement must include all of
the following:
(1) A detailed description of the project that is the
subject of the agreement, including the location of the
project, the number of jobs created by the project, and

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project costs. For purposes of this subsection, "project
costs" includes the costs of the project incurred or to be
incurred by the eligible developer, including
infrastructure costs, but excludes the value of State or
local incentives, including tax increment financing and
deductions, credits, or exemptions afforded to an employer
located in an enterprise zone.
(2) A requirement that the eligible developer shall
maintain operations at the project location, stated as a
minimum number of years not to exceed 10 years.
(3) A specific method for determining the number of new
employees attributable to the project.
(4) A requirement that the eligible developer shall
report monthly to the Department and the Department of
Revenue the number of new employees and the incremental
income tax withheld in connection with the new employees.
(5) A requirement that the Department is authorized to
verify with the Department of Revenue the amounts reported
under paragraph (4).
Section 10. The State Finance Act is amended by adding
Section 5.756 as follows:
(30 ILCS 105/5.756 new)
Sec. 5.756. The Riverfront Development Fund.
Section 99. Effective date. This Act takes effect upon

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becoming law.