Public Act 096-0602
 		





SB1342 Enrolled
LRB096 10420 RLJ 20592 b






    AN ACT concerning intermodal facilities.

 
    Be it enacted by the People of the State of Illinois,
 
represented in the General Assembly:



 
    Section 1. Short title. This Act may be cited as the 
Intermodal Facilities Promotion Act.
 
    Section 5. 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 freight 
rail systems and their intermodal connections in Illinois and 
encourage the efficient development of those facilities.
 
    Section 10. Definitions. As used in this Act:
    "Agreement" means the agreement between an eligible 
developer and the Department under the provisions of Section 30 
of this Act.
    "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 an intermodal 
terminal facility in the City of Joliet.
    "Eligible employer" means an individual, partnership, 
corporation, or other entity that employs full-time employees 
at an intermodal terminal facility in the City of Joliet.
    "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 
extensions, or other improvements that are essential to the 
development of the project that is the subject of an agreement.
    "Intermodal terminal facility" means a cohesively planned 
project consisting of at least 2,000 acres of land, 
improvements to that land, equipment, and appliances necessary 
for the receipt and transfer of goods between one mode of 
transportation and another and for the assembly and storage of 
those goods.
    "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:
        (A)  treated under the agreement as a new employee; and
        (B)  promoted by the eligible employer to another job.
    Notwithstanding any provision to the contrary, an employee 
employed in a part of the project that lies within a business 
district created pursuant to Division 74.3 of Article 11 of the 
Illinois Municipal Code or a redevelopment project area created 
pursuant to the Tax Increment Allocation Redevelopment Act 
shall not be considered a new employee.
    "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 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.
 
    Section 15. Intermodal Facilities Promotion Fund. The 
Intermodal Facilities Promotion Fund is created as a special 
fund in the State treasury.  As soon as possible,  upon 
certification of the Department of Revenue following review of 
the amounts contained in the quarter annual report required 
under paragraph (4) of Section 30, the Comptroller shall order 
transferred and the Treasurer shall transfer from the General 
Revenue Fund to the Intermodal Facilities Promotion Fund an 
amount equal to the incremental income tax for the previous 
month attributable to a project that is the subject of an 
agreement.
 
    Section 20. Grants from the  Intermodal Facilities 
Promotion Fund.  In State fiscal years 2010 through 2016, all 
moneys in the Intermodal Facilities Promotion 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.
 
    Section 25. 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.
 
    Section 30. Agreements with applicants. The Department 
shall enter into an agreement with an eligible developer who is 
entitled to grants under this Act. 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 
    project costs. For purposes of this subsection, "project 
    costs" includes the cost 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 on a quarter annual basis 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 provision authorizing the Department to verify 
    with the Department of Revenue the amounts reported under 
    paragraph (4).
        (6) A provision authorizing the Department of Revenue 
    to audit the information reported under paragraph (4).
 
    Section 35. Rules. The Department and the Department of 
Revenue may promulgate rules necessary to implement this Act.
 
    Section 90. The State Finance Act is amended by adding 
Section 5.719 as follows:
 
    (30 ILCS 105/5.719 new)
    Sec. 5.719. The Intermodal Facilities Promotion Fund.
 

    Section 99. Effective date. This Act takes effect upon 
becoming law.