HB 3767 — LOCATION MATTERS ACT

*LRB09408771JAM38984b* HB3767 94THEngrossed GENERALLRB094 ASSEMBLY08771 StateJAM of38984 Illinoisb andAN 2006ACT HB3767concerning Introducedbusiness 2/25/2005,transactions. by Rep.

Kathleen A.

Ryg SYNOPSIS AS INTRODUCED:

New Act Creates the Location Matters Act.

Requires that an applicant applying for State economic development assistance for a business location must provide data on affordable housing and mass transit in its vicinity.

Provides that if data submitted by the applicant shows that affordable housing and mass transit are near the proposed work site, the Department of Commerce and Economic Opportunity shall grant the applicant a preference in awarding economic development assistance.

Provides that if affordable housing and mass transit are not present near the proposed work site, the applicant can receive an economic development preference only if it submits to the Department of Commerce and Economic Opportunity a plan showing how the applicant will address the housing and mass transit deficiency.

Provides that applicants who fail to submit a satisfactory plan to the Department of Commerce and Economic Opportunity may still receive State economic development assistance.

Effective January 1, 2006.

LRB094 08771 JAM 38984 b FISCAL NOTE ACT MAY APPLY A BILL FOR HB3767 LRB094 08771 JAM 38984 b AN ACT concerning business transactions.

This Act may be cited as the Business Location MattersEfficiency Incentive Act.

"Location efficient" means a project that maximizes the use of existing investments in infrastructure, avoids or minimizes additional government expenditures for new infrastructure, and has nearby housing affordable to the permanent workforce of the project;project or has accessible and affordable mass transit or its equivalent or some combination of both.

"Location efficiency report" means a report that is prepared by an applicant for increased State economic development assistance under Section 10 and follows this Act and any related Department guidelines, and that describes the existence of (i) affordable workforce housing or (ii) accessible and affordable mass transit or its equivalent;equivalent.

"Employee housing or sometransportation combinationremediation plan" means a plan to increase affordable housing or transportation options, or both, for employees earning up to the median annual salary of both.the workforce at the project.

"Location efficiency report" means a report that is prepared by the applicant for State economic development assistance and follows this Act and any related Department guidelines, and that describes the existence of (i) affordable housing or (ii) accessible and affordable mass transit or its equivalent.

"Employee housing and transportation remediation plan" means a plan to increase affordable housing and transportation options for employees earning up to the median annual salary of the workforce at the project.

"Accessible and affordable mass transit" means access to transit stops with regular and frequent service within one-halfone mile from the project site.site and pedestrian access to transit stops.

"Affordable workforce housing" means owner-occupied or rental housing that costs, based on current census data for the HB3767 Engrossed - 2 - LRB094 08771 JAM 38984 b municipality where the project is located or any municipality within 3 miles of the municipality where the project is located, no more than 35% of the median salary at the project site, exclusive of the highest 10% of the site’s salaries.

If the project is located in an unincorporated area, "affordable workforce housing" means no more than 35% of the median salary at the project site, excluding the highest 10% of the site’s salaries, based on the median cost of rental or of owner-occupied housing in the county where the unincorporated area is located.

"Economic development assistance" means (i) State tax credits and tax exemptions given as an incentive to an eligible company after certification by DCEO under the Economic Development for a Growing Economy Tax Credit Act (EDGE)(EDGE). and the Illinois Enterprise Zone Act, including the High Impact Business program, or under successor programs and (ii) matching grants under the Employer Training Investment Program or its successor programs.

"Existence of infrastructure" means the existence atwithin 1,500 feet of the proposed site of roads, sewers, sidewalks, and other utilities and a description of the investments or improvements, if any, that an applicant expects State or local government to make to that infrastructure.

Economic development assistance awards;awards.

priority.(a) An applicant that also wants to be considered for increased economic development assistance under this Act shall submit a location efficiency report.

(a)(b) AnDCEO applicantshall thatgive alsoan wantsapplicant toan be considered for increased economictax developmentcredit assistance or priorityextension statusif inthe receivingapplicant’s that assistance shall submit a location efficiency report fordemonstrates that the municipalityapplicant oris unincorporatedseeking areaassistance offor a countyproject where its facility is to be located,located alongin withan thearea informationthat reportedsatisfies underthis subsectionAct’s (b)standards of Section 15 of the Corporate Accountability for Taxaffordable Expendituresworkforce Act,housing ifor itaffordable seeks economic HB3767 - 3 - LRB094 08771 JAM 38984 b development assistance from the State and employsaccessible ormass declarestransit. that it intends to employ at least 25 employees.

(b)If DCEOthe shallDepartment givedetermines anfrom applicantthe prioritylocation andefficiency anreport increasedthat taxthe creditapplicant oris exemptionseeking orHB3767 grantEngrossed if- the3 applicant’s- locationLRB094 efficiency08771 reportJAM demonstrates38984 thatb theassistance applicantin an area that is seekingnot assistancelocation forefficient, athe projectDepartment toshall beaward locatedan increase in State economic development assistance if an areaapplicant that(i) satisfiessubmits, thisand Act’sthe standardsDepartment foraccepts, affordablean applicant’s employee housing and affordabletransportation andremediation accessibleplan massor transit.(ii) creates jobs in a labor surplus area as defined by the Department of Employment Security at the end of each calendar year.

If(c) theApplicants Departmentlocating determinesor fromexpanding theat location-efficient sites, with approved location efficiency reportplans, thator thecreating applicantjobs isin seekinglabor assistancesurplus inareas ancan areareceive that(i) isup notto location10% efficient,more than the Departmentmaximum shallallowable givetax credits for which they are eligible under the applicantEconomic priorityDevelopment andfor shalla awardGrowing anEconomy increaseTax inCredit StateAct economic(EDGE), developmentbut assistancenot ifto anequal applicantor submits,exceed and100% of the Departmentapplicant’s accepts,tax anliability, applicant’sor employee(ii) housingsuch andother transportationadjustment remediationof plan.those tax credits, including but not limited to extensions, as the Department deems appropriate.

(c)(d) ApplicantsThe locatingDepartment ormay expandingprovide attechnical location-efficientassistance sites, or with approved location efficiency plans, can receive (i) up to 10%employers morerequesting thanassistance thein maximumdeveloping allowablean taxappropriate creditsemployee forhousing whichor theytransportation areplan. eligible under the Economic Development for a Growing Economy Tax Credit Act (EDGE) and the Illinois Enterprise Zone Act, including the High Impact Business program and (ii) grants under the Employer Training Investment Program (ETIP) up to 60% of approved project costs.

(d) The Department shall provide technical assistance to employers requesting assistance in developing an appropriate employee housing and transportation plan.

(a) DCEO shall include summaries of the initial employee housing andor transportation plans for each assisted project in the annual compilation and publication of project progress reports required under subsection (d) of Section 20 of the Corporate Accountability for Tax Expenditures Act.

Companies that fail to do so or that make inadequate progress shall have their subsidyincreased preferencetax eliminatedcredit andor payextension backeliminated. any related benefits.

Applicants and submitted data are subject to all HB3767 - 4 - LRB094 08771 JAM 38984 b disclosure, reporting, and recapture provisions set forth in Public Act 93-552.

(b) By June 1, 2007 and by June 1 of each year thereafter,thereafter through 2010, the Department shall include, when appropriate, data on the outcomes or status of approved employee housing andor transportation plans in the project progress reports required under the Corporate Accountability for Tax Expenditure Act.

HB3767 Engrossed - 4 - LRB094 08771 JAM 38984 b Section 20.

Duration of incentives;

report to General Assembly.

(a) Any multi-year incentive awarded under this Act shall continue for the time period called for in the agreement with the Department and shall not be altered by the repeal of this Act.

(b) By January 1, 2010, the Department shall submit to the Speaker of the House of Representatives and the President of the Senate, for assignment to the appropriate committees, a report on the incentives awarded under this Act and the Department’s activities, findings, and recommendations with respect to this Act and its extension, amendment, or repeal.

The report, when acted upon by those committees, shall be distributed to each member of the General Assembly.

Section 25.

Repeal.