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1		AN ACT concerning intermodal facilities.
2		Be it enacted by the People of the State of Illinois,
3		represented in the General Assembly:
4		Section 1. Short title. This Act may be cited as the
5		Intermodal Facilities Promotion Act.
6		Section 5. Purpose. The General Assembly has determined
7		that it is in the interest of the State of Illinois to promote
8		development that will protect, promote, and improve freight
9		rail systems and their intermodal connections in Illinois and
10		encourage the efficient development of those facilities.
11		Section 10. Definitions. As used in this Act:
12		"Agreement" means the agreement between an eligible
13		developer and the Department under the provisions of Section 30
14		of this Act.
15		"Department" means the Department of Commerce and Economic
16		Opportunity.
17		"Director" means the Director of Commerce and Economic
18		Opportunity.
19		"Eligible developer" means an individual, partnership,
20		corporation, or other entity that develops an intermodal
21		terminal facility in the City of Joliet.
22		"Eligible employer" means an individual, partnership,

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1		corporation, or other entity that employs full-time employees
2		at an intermodal terminal facility in the City of Joliet.
3		"Full-time employee" means an individual who is employed
4		for consideration for at least 35 hours each week or who
5		renders any other standard of service generally accepted by
6		industry custom or practice as full-time employment. An
7		individual for whom a W-2 is issued by a Professional Employer
8		Organization (PEO) is a full-time employee if employed in the
9		service of the eligible employer for consideration for at least
10		35 hours each week or who renders any other standard of service
11		generally accepted by industry custom or practice as full-time
12		employment.
13		"Incremental income tax" means the total amount withheld
14		from the compensation of new employees under Article 7 of the
15		Illinois Income Tax Act arising from employment by an eligible
16		employer.
17		"Infrastructure" means roads, access roads, streets,
18		bridges, sidewalks, water and sewer line extensions, water
19		distribution and purification facilities, waste disposal
20		systems, sewage treatment facilities, stormwater drainage and
21		retention facilities, gas and electric utility line
22		extensions, or other improvements that are essential to the
23		development of the project that is the subject of an agreement.
24		"Intermodal terminal facility" means a cohesively planned
25		project consisting of at least 2,000 acres of land,
26		improvements to that land, equipment, and appliances necessary

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1		for the receipt and transfer of goods between one mode of
2		transportation and another and for the assembly and storage of
3		those goods.
4		"New employee" means a full-time employee first employed by
5		an eligible employer in the project that is the subject of an
6		agreement between the Department and an eligible developer and
7		who is hired after the eligible developer enters into the
8		agreement, but does not include:
9		(1) an employee of the eligible employer who performs a
10		job that (i) existed for at least 6 months before the
11		employee was hired and (ii) was previously performed by
12		another employee;
13		(2) an employee of the eligible employer who was
14		previously employed in Illinois by a related member of the
15		eligible employer and whose employment was shifted to the
16		eligible employer after the eligible employer entered into
17		the agreement; or
18		(3) a child, grandchild, parent, or spouse, other than
19		a spouse who is legally separated from the individual, of
20		any individual who has a direct or an indirect ownership
21		interest of at least 5% in the profits, capital, or value
22		of the eligible employer.
23		Notwithstanding item (2) of this definition, an employee
24		may be considered a new employee under the agreement if the
25		employee performs a job that was previously performed by an
26		employee who was:

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1		(A) treated under the agreement as a new employee; and
2		(B) promoted by the eligible employer to another job.
3		Notwithstanding any provision to the contrary, an employee
4		employed in a part of the project that lies within a business
5		district created pursuant to Division 74.3 of Article 11 of the
6		Illinois Municipal Code or a redevelopment project area created
7		pursuant to the Tax Increment Allocation Redevelopment Act
8		shall not be considered a new employee.
9		"Professional Employer Organization" (PEO) means an
10		employee leasing company, as defined in Section 206.1(A)(2) of
11		the Illinois Unemployment Insurance Act.
12		"Related member" means a person or entity that, with
13		respect to the eligible employer during any portion of the
14		taxable year, is any one of the following:
15		(1) an individual stockholder, if the stockholder and
16		the members of the stockholder's family (as defined in
17		Section 318 of the Internal Revenue Code) own directly,
18		indirectly, beneficially, or constructively, in the
19		aggregate, at least 50% of the value of the eligible
20		employer's outstanding stock;
21		(2) a partnership, estate, or trust and any partner or
22		beneficiary, if the partnership, estate, or trust, and its
23		partners or beneficiaries own directly, indirectly, or
24		beneficially, or constructively, in the aggregate, at
25		least 50% of the profits, capital, stock, or value of the
26		eligible employer;

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1		(3) a corporation, and any party related to the
2		corporation in a manner that would require an attribution
3		of stock from the corporation to the party or from the
4		party to the corporation under the attribution rules of
5		Section 318 of the Internal Revenue Code, if the taxpayer
6		owns directly, indirectly, beneficially, or constructively
7		at least 50% of the value of the corporation's outstanding
8		stock;
9		(4) a corporation and any party related to that
10		corporation in a manner that would require an attribution
11		of stock from the corporation to the party or from the
12		party to the corporation under the attribution rules of
13		Section 318 of the Internal Revenue Code, if the
14		corporation and all such related parties own in the
15		aggregate at least 50% of the profits, capital, stock, or
16		value of the eligible employer; or
17		(5) a person to or from whom there is attribution of
18		stock ownership in accordance with Section 1563(e) of the
19		Internal Revenue Code, except, for purposes of determining
20		whether a person is a related member under this definition,
21		20% shall be substituted for 5% wherever 5% appears in
22		Section 1563(e) of the Internal Revenue Code.
23		Section 15. Intermodal Facilities Promotion Fund. The
24		Intermodal Facilities Promotion Fund is created as a special
25		fund in the State treasury. As soon as possible, upon

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1		certification of the Department of Revenue following review of
2		the amounts contained in the quarter annual report required
3		under paragraph (4) of Section 30, the Comptroller shall order
4		transferred and the Treasurer shall transfer from the General
5		Revenue Fund to the Intermodal Facilities Promotion Fund an
6		amount equal to the incremental income tax for the previous
7		month attributable to a project that is the subject of an
8		agreement.
9		Section 20. Grants from the Intermodal Facilities
10		Promotion Fund. In State fiscal years 2010 through 2016, all
11		moneys in the Intermodal Facilities Promotion Fund, held solely
12		for the benefit of eligible developers, shall be appropriated
13		to the Department to make infrastructure grants to eligible
14		developers pursuant to agreements.
15		Section 25. Limitation on grant amounts. The total amount
16		of a grant to an eligible developer shall not exceed the lesser
17		of:
18		(1) $3,000,000 in each State fiscal year; or
19		(2) the total amount of infrastructure costs incurred
20		by the eligible developer with respect to a project that is
21		the subject of an agreement.
22		No eligible developer shall receive moneys that are
23		attributable to a project that is not the subject of the
24		developer's agreement with the Department.

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1		Section 30. Agreements with applicants. The Department
2		shall enter into an agreement with an eligible developer who is
3		entitled to grants under this Act. The agreement must include
4		all of the following:
5		(1) A detailed description of the project that is the
6		subject of the agreement, including the location of the
7		project, the number of jobs created by the project, and
8		project costs. For purposes of this subsection, "project
9		costs" includes the cost of the project incurred or to be
10		incurred by the eligible developer, including
11		infrastructure costs, but excludes the value of State or
12		local incentives, including tax increment financing and
13		deductions, credits, or exemptions afforded to an employer
14		located in an enterprise zone.
15		(2) A requirement that the eligible developer shall
16		maintain operations at the project location, stated as a
17		minimum number of years not to exceed 10 years.
18		(3) A specific method for determining the number of new
19		employees attributable to the project.
20		(4) A requirement that the eligible developer shall
21		report on a quarter annual basis to the Department and the
22		Department of Revenue the number of new employees and the
23		incremental income tax withheld in connection with the new
24		employees.
25		(5) A provision authorizing the Department to verify

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1		with the Department of Revenue the amounts reported under
2		paragraph (4).
3		(6) A provision authorizing the Department of Revenue
4		to audit the information reported under paragraph (4).
5		Section 35. Rules. The Department and the Department of
6		Revenue may promulgate rules necessary to implement this Act.
7		Section 90. The State Finance Act is amended by adding
8		Section 5.719 as follows:
9		(30 ILCS 105/5.719 new)
10		Sec. 5.719. The Intermodal Facilities Promotion Fund.
11		Section 99. Effective date. This Act takes effect upon
12		becoming law.