Bill Text: IL SB1342 | 2009-2010 | 96th General Assembly | Enrolled

---

Bill Title: Creates the Intermodal Facilities Promotion Act. Provides that the incremental income tax attributable to a new employee of an individual, partnership, corporation, or other entity that owns and operates an intermodal terminal facility in the City of Joliet shall be deposited into the Intermodal Facilities Promotion Fund. Provides that moneys in the Fund shall be used by the Department of Commerce and Economic Opportunity to make grants to the eligible developer for infrastructure improvements. Sets limits on the grants. Amends the State Finance Act to create the fund as a special fund. Effective immediately.

Spectrum: Slight Partisan Bill (Democrat 5-2)

Status: (Passed) 2009-08-21 - Public Act . . . . . . . . . 96-0602 [SB1342 Detail]

Download: Illinois-2009-SB1342-Enrolled.html

---

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,

SB1342 Enrolled - 2 - LRB096 10420 RLJ 20592 b
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

SB1342 Enrolled - 3 - LRB096 10420 RLJ 20592 b
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:

SB1342 Enrolled - 4 - LRB096 10420 RLJ 20592 b
(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;

SB1342 Enrolled - 5 - LRB096 10420 RLJ 20592 b
(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

SB1342 Enrolled - 6 - LRB096 10420 RLJ 20592 b
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.

SB1342 Enrolled - 7 - LRB096 10420 RLJ 20592 b
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

SB1342 Enrolled - 8 - LRB096 10420 RLJ 20592 b
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.