Bill Text: IL SB1787 | 2013-2014 | 98th General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Creates the Illinois Titanium Powdered Metals Development Act. Creates the Illinois Titanium Powdered Metals Development Advisory Committee within the Department of Commerce and Economic Opportunity. Sets forth the membership of the Committee, including the Director of Commerce and Economic Opportunity and members appointed by the Governor and each of the legislative leaders. Sets forth the powers and duties of the Committee, including assisting with the growth and development of the titanium powdered metals industry within Illinois and the creation of a consortium or center that conducts, coordinates, and supports titanium powdered metals research, promotion, and marketing activities in the State. Requires the Committee to prepare and submit an annual report to the Governor and the General Assembly. Contains other provisions. Amends the Illinois Enterprise Zone Act. Provides that businesses that (i) intend to make minimum investment of $3,000,000 in titanium powdered metals manufacturing which will be placed in service in qualified property and (ii) intend to create or retain a minimum of 15 full-time equivalent jobs in titanium powdered metals manufacturing at a location in Illinois are considered high impact businesses. Effective immediately.

Spectrum: Bipartisan Bill

Status: (Passed) 2013-12-27 - Public Act . . . . . . . . . 98-0613 [SB1787 Detail]

Download: Illinois-2013-SB1787-Introduced.html

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98TH GENERAL ASSEMBLY State of Illinois 2013 and 2014 SB1787 Introduced 2/15/2013, by Sen. Mike Jacobs SYNOPSIS AS INTRODUCED:
New Act
20 ILCS 655/5.5 from Ch. 67 1/2, par. 609.1
Creates the Illinois Titanium Powdered Metals Development Act. Creates the Illinois Titanium Powdered Metals Development Advisory Committee within the Department of Commerce and Economic Opportunity. Sets forth the membership of the Committee, including the Director of Commerce and Economic Opportunity and members appointed by the Governor and each of the legislative leaders. Sets forth the powers and duties of the Committee, including assisting with the growth and development of the titanium powdered metals industry within Illinois and the creation of a consortium or center that conducts, coordinates, and supports titanium powdered metals research, promotion, and marketing activities in the State. Requires the Committee to prepare and submit an annual report to the Governor and the General Assembly. Contains other provisions. Amends the Illinois Enterprise Zone Act. Provides that businesses that (i) intend to make minimum investment of $3,000,000 in titanium powdered metals manufacturing which will be placed in service in qualified property and (ii) intend to create or retain a minimum of 15 full-time equivalent jobs in titanium powdered metals manufacturing at a location in Illinois are considered high impact businesses. Effective immediately.
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FISCAL NOTE ACT MAY APPLY
A BILL FOR
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AN ACT concerning State government.
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
Illinois Titanium Powdered Metals Development Act.
Section 5. Purpose. The purpose of this Act is to assist in
the development of the titanium powdered metals industry in
Illinois. The industry is growing but under the current
economic climate and conditions needs State assistance to
further promote and develop itself. The State's assistance will
help the industry to grow, stabilize, and create jobs. The
production of titanium powder is an energy efficient process
that reduces the use of energy. Titanium powder, when used in
manufacturing processes, helps to create energy efficient
products. Furthermore, the State's assistance will help
provide additional needed resources to existing and new
research programs while also giving the industry the ability to
partner with Illinois' world class higher educational
institutions. This will enable Illinois' titanium powdered
metals industry to become a world class leader.
Section 10. Definition. As used in this Act, "titanium
powdered metals" means a powdered metalworking process through

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solid-state reduction, atomization, electrolysis, or chemical
processing whereby the final product has been manufactured
using at least 50% titanium tetrachloride (TiCL4).
"Department" means the Department of Commerce and Economic
Opportunity.
"Director" means the Director of Commerce and Economic
Opportunity.
Section 15. Creation of the Advisory Committee. The
Illinois Titanium Powdered Metals Development Advisory
Committee is hereby created within the Department of Commerce
and Economic Opportunity. The Advisory Committee shall be
composed of the following voting members: the Director of
Commerce and Economic Opportunity, who shall be Chairman of the
Advisory Committee, and 4 members of the General Assembly (one
each appointed by the President of the Senate, the Senate
Minority Leader, the Speaker of the House of Representatives,
and the House Minority Leader). Members appointed by a
legislative leader shall serve for the duration of the General
Assembly for which he or she is appointed, so long as the
member remains a member of that General Assembly.
The Advisory Committee shall meet at the call of the
Chairman. At any time, the majority of the Advisory Committee
may petition the Chairman for a meeting of the Committee. Three
members of the Advisory Committee shall constitute a quorum.

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Section 20. Powers and duties of the Advisory Committee.
The Advisory Committee shall have the following powers and
duties:
(1) to develop an annual agenda to assist the growth
and development of the titanium powdered metals industry
within Illinois that may include, but is not limited to,
research, marketing, and promotional methodologies
conducted for the purpose of increasing the use of titanium
powdered metals produced, used, or transported by Illinois
companies with an emphasis on the following areas:
maintaining and increasing employment of Illinois workers
in the titanium powdered metals industry, titanium
powdered metals preparation and characterization,
marketing, public awareness and education, and
environmental impacts;
(2) to support and coordinate titanium powdered metals
research, marketing, and promotion in Illinois;
(3) to make direct loans or grants to companies in
Illinois that produce, manufacture, or substantially use
titanium powdered metals for the promotion, research,
manufacture, infrastructure, and research and development
of titanium powdered metals, including engineering, legal,
or design qualified experts, and for any other purpose in
fulfillment of this Act;
(4) to seek the assistance, help, and expertise of the
staff of the Department as the Advisory Committee deems

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necessary to accomplish its goals under this Act;
(5) to cooperate to the fullest extent possible with
State and federal agencies and departments, independent
organizations, and other interested groups, public and
private, for the purposes of promoting Illinois titanium
powdered metal resources;
(6) to focus on (i) existing titanium powdered metals
research, marketing, and promotion efforts, (ii) ways to
make use of existing facilities in Illinois or other
institutions carrying out research, marketing, and
promotion of titanium powdered metals, and (iii) make
maximum use of the facilities available in Illinois,
including universities and colleges located within the
State;
(7) to create a consortium that conducts, coordinates,
and supports titanium powdered metals research, promotion,
and marketing activities in the State of Illinois;
programmatic activities of the consortium or center shall
be subject to approval by the Advisory Committee and shall
be consistent with the purposes of this Section;
(8) to adopt, amend, or repeal rules, regulations, and
bylaws governing the Advisory Committee's organization and
conduct of business;
(9) to search for, accept, and expend gifts or grants
in any form from any public agency or any other source;
(10) to publish, from time to time, the results of

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titanium powdered metals research, marketing, and
promotion projects supported by the Advisory Committee.
Section 25. Other functions of the Advisory Committee. The
Advisory Committee shall also:
(1) create and maintain current and accurate records on
all markets for and actual uses of titanium powdered metals
processed, used, or transported in Illinois and ways of
making those records available to the public upon request;
(2) identify all current and anticipated future
technical, economic, institutional, market, environmental,
regulatory, and other impediments to the use of titanium
powdered metals and the titanium powdered metal industry in
Illinois;
(3) identify alternative plans or actions that would
maintain or increase the use of titanium powdered metals
and the titanium powdered metal industry in Illinois;
(4) develop strategies and policies to promote
responsible uses of titanium powdered metals and the
titanium powdered industry in Illinois.
Section 60. The Illinois Enterprise Zone Act is amended by
changing Section 5.5 as follows:
(20 ILCS 655/5.5) (from Ch. 67 1/2, par. 609.1)
Sec. 5.5. High Impact Business.

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(a) In order to respond to unique opportunities to assist
in the encouragement, development, growth and expansion of the
private sector through large scale investment and development
projects, the Department is authorized to receive and approve
applications for the designation of "High Impact Businesses" in
Illinois subject to the following conditions:
(1) such applications may be submitted at any time
during the year;
(2) such business is not located, at the time of
designation, in an enterprise zone designated pursuant to
this Act;
(3) the business intends to do one or more of the
following:
(A) the business intends to make a minimum
investment of $12,000,000 which will be placed in
service in qualified property and intends to create 500
full-time equivalent jobs at a designated location in
Illinois or intends to make a minimum investment of
$30,000,000 which will be placed in service in
qualified property and intends to retain 1,500
full-time retained jobs at a designated location in
Illinois. The business must certify in writing that the
investments would not be placed in service in qualified
property and the job creation or job retention would
not occur without the tax credits and exemptions set
forth in subsection (b) of this Section. The terms

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"placed in service" and "qualified property" have the
same meanings as described in subsection (h) of Section
201 of the Illinois Income Tax Act; or
(B) the business intends to establish a new
electric generating facility at a designated location
in Illinois. "New electric generating facility", for
purposes of this Section, means a newly-constructed
electric generation plant or a newly-constructed
generation capacity expansion at an existing electric
generation plant, including the transmission lines and
associated equipment that transfers electricity from
points of supply to points of delivery, and for which
such new foundation construction commenced not sooner
than July 1, 2001. Such facility shall be designed to
provide baseload electric generation and shall operate
on a continuous basis throughout the year; and (i)
shall have an aggregate rated generating capacity of at
least 1,000 megawatts for all new units at one site if
it uses natural gas as its primary fuel and foundation
construction of the facility is commenced on or before
December 31, 2004, or shall have an aggregate rated
generating capacity of at least 400 megawatts for all
new units at one site if it uses coal or gases derived
from coal as its primary fuel and shall support the
creation of at least 150 new Illinois coal mining jobs,
or (ii) shall be funded through a federal Department of

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Energy grant before December 31, 2010 and shall support
the creation of Illinois coal-mining jobs, or (iii)
shall use coal gasification or integrated
gasification-combined cycle units that generate
electricity or chemicals, or both, and shall support
the creation of Illinois coal-mining jobs. The
business must certify in writing that the investments
necessary to establish a new electric generating
facility would not be placed in service and the job
creation in the case of a coal-fueled plant would not
occur without the tax credits and exemptions set forth
in subsection (b-5) of this Section. The term "placed
in service" has the same meaning as described in
subsection (h) of Section 201 of the Illinois Income
Tax Act; or
(B-5) the business intends to establish a new
gasification facility at a designated location in
Illinois. As used in this Section, "new gasification
facility" means a newly constructed coal gasification
facility that generates chemical feedstocks or
transportation fuels derived from coal (which may
include, but are not limited to, methane, methanol, and
nitrogen fertilizer), that supports the creation or
retention of Illinois coal-mining jobs, and that
qualifies for financial assistance from the Department
before December 31, 2010. A new gasification facility

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does not include a pilot project located within
Jefferson County or within a county adjacent to
Jefferson County for synthetic natural gas from coal;
or
(C) the business intends to establish production
operations at a new coal mine, re-establish production
operations at a closed coal mine, or expand production
at an existing coal mine at a designated location in
Illinois not sooner than July 1, 2001; provided that
the production operations result in the creation of 150
new Illinois coal mining jobs as described in
subdivision (a)(3)(B) of this Section, and further
provided that the coal extracted from such mine is
utilized as the predominant source for a new electric
generating facility. The business must certify in
writing that the investments necessary to establish a
new, expanded, or reopened coal mine would not be
placed in service and the job creation would not occur
without the tax credits and exemptions set forth in
subsection (b-5) of this Section. The term "placed in
service" has the same meaning as described in
subsection (h) of Section 201 of the Illinois Income
Tax Act; or
(D) the business intends to construct new
transmission facilities or upgrade existing
transmission facilities at designated locations in

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Illinois, for which construction commenced not sooner
than July 1, 2001. For the purposes of this Section,
"transmission facilities" means transmission lines
with a voltage rating of 115 kilovolts or above,
including associated equipment, that transfer
electricity from points of supply to points of delivery
and that transmit a majority of the electricity
generated by a new electric generating facility
designated as a High Impact Business in accordance with
this Section. The business must certify in writing that
the investments necessary to construct new
transmission facilities or upgrade existing
transmission facilities would not be placed in service
without the tax credits and exemptions set forth in
subsection (b-5) of this Section. The term "placed in
service" has the same meaning as described in
subsection (h) of Section 201 of the Illinois Income
Tax Act; or
(E) the business intends to establish a new wind
power facility at a designated location in Illinois.
For purposes of this Section, "new wind power facility"
means a newly constructed electric generation
facility, or a newly constructed expansion of an
existing electric generation facility, placed in
service on or after July 1, 2009, that generates
electricity using wind energy devices, and such

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facility shall be deemed to include all associated
transmission lines, substations, and other equipment
related to the generation of electricity from wind
energy devices. For purposes of this Section, "wind
energy device" means any device, with a nameplate
capacity of at least 0.5 megawatts, that is used in the
process of converting kinetic energy from the wind to
generate electricity; or and
(F) the business intends to make a minimum
investment of $3,000,000 in titanium powdered metals
manufacturing which will be placed in service in
qualified property and intends to create or retain a
minimum of 15 full-time equivalent jobs in titanium
powdered metals manufacturing at a location in
Illinois; the business must certify in writing that the
investments would not be placed in service in qualified
property and the job creation or job retention would
not occur without the tax credits and exemptions set
forth in subsection (b) of this Section. The terms
"placed in service" and "qualified property" have the
same meanings as described in subsection (h) of Section
201 of the Illinois Income Tax Act; and
(4) no later than 90 days after an application is
submitted, the Department shall notify the applicant of the
Department's determination of the qualification of the
proposed High Impact Business under this Section.

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(b) Businesses designated as High Impact Businesses
pursuant to subdivision (a)(3)(A) of this Section shall qualify
for the credits and exemptions described in the following Acts:
Section 9-222 and Section 9-222.1A of the Public Utilities Act,
subsection (h) of Section 201 of the Illinois Income Tax Act,
and Section 1d of the Retailers' Occupation Tax Act; provided
that these credits and exemptions described in these Acts shall
not be authorized until the minimum investments set forth in
subdivision (a)(3)(A) of this Section have been placed in
service in qualified properties and, in the case of the
exemptions described in the Public Utilities Act and Section 1d
of the Retailers' Occupation Tax Act, the minimum full-time
equivalent jobs or full-time retained jobs set forth in
subdivision (a)(3)(A) of this Section have been created or
retained. Businesses designated as High Impact Businesses
under this Section shall also qualify for the exemption
described in Section 5l of the Retailers' Occupation Tax Act.
The credit provided in subsection (h) of Section 201 of the
Illinois Income Tax Act shall be applicable to investments in
qualified property as set forth in subdivision (a)(3)(A) of
this Section.
(b-5) Businesses designated as High Impact Businesses
pursuant to subdivisions (a)(3)(B), (a)(3)(B-5), (a)(3)(C),
and (a)(3)(D) of this Section shall qualify for the credits and
exemptions described in the following Acts: Section 51 of the
Retailers' Occupation Tax Act, Section 9-222 and Section

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9-222.1A of the Public Utilities Act, and subsection (h) of
Section 201 of the Illinois Income Tax Act; however, the
credits and exemptions authorized under Section 9-222 and
Section 9-222.1A of the Public Utilities Act, and subsection
(h) of Section 201 of the Illinois Income Tax Act shall not be
authorized until the new electric generating facility, the new
gasification facility, the new transmission facility, or the
new, expanded, or reopened coal mine is operational, except
that a new electric generating facility whose primary fuel
source is natural gas is eligible only for the exemption under
Section 5l of the Retailers' Occupation Tax Act.
(b-6) Businesses designated as High Impact Businesses
pursuant to subdivision (a)(3)(E) of this Section shall qualify
for the exemptions described in Section 5l of the Retailers'
Occupation Tax Act; any business so designated as a High Impact
Business being, for purposes of this Section, a "Wind Energy
Business".
(c) High Impact Businesses located in federally designated
foreign trade zones or sub-zones are also eligible for
additional credits, exemptions and deductions as described in
the following Acts: Section 9-221 and Section 9-222.1 of the
Public Utilities Act; and subsection (g) of Section 201, and
Section 203 of the Illinois Income Tax Act.
(d) Except for businesses contemplated under subdivision
(a)(3)(E) of this Section, existing Illinois businesses which
apply for designation as a High Impact Business must provide

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the Department with the prospective plan for which 1,500
full-time retained jobs would be eliminated in the event that
the business is not designated.
(e) Except for new wind power facilities contemplated under
subdivision (a)(3)(E) of this Section, new proposed facilities
which apply for designation as High Impact Business must
provide the Department with proof of alternative non-Illinois
sites which would receive the proposed investment and job
creation in the event that the business is not designated as a
High Impact Business.
(f) Except for businesses contemplated under subdivision
(a)(3)(E) of this Section, in the event that a business is
designated a High Impact Business and it is later determined
after reasonable notice and an opportunity for a hearing as
provided under the Illinois Administrative Procedure Act, that
the business would have placed in service in qualified property
the investments and created or retained the requisite number of
jobs without the benefits of the High Impact Business
designation, the Department shall be required to immediately
revoke the designation and notify the Director of the
Department of Revenue who shall begin proceedings to recover
all wrongfully exempted State taxes with interest. The business
shall also be ineligible for all State funded Department
programs for a period of 10 years.
(g) The Department shall revoke a High Impact Business
designation if the participating business fails to comply with

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the terms and conditions of the designation. However, the
penalties for new wind power facilities or Wind Energy
Businesses for failure to comply with any of the terms or
conditions of the Illinois Prevailing Wage Act shall be only
those penalties identified in the Illinois Prevailing Wage Act,
and the Department shall not revoke a High Impact Business
designation as a result of the failure to comply with any of
the terms or conditions of the Illinois Prevailing Wage Act in
relation to a new wind power facility or a Wind Energy
Business.
(h) Prior to designating a business, the Department shall
provide the members of the General Assembly and Commission on
Government Forecasting and Accountability with a report
setting forth the terms and conditions of the designation and
guarantees that have been received by the Department in
relation to the proposed business being designated.
(Source: P.A. 96-28, eff. 7-1-09; 97-905, eff. 8-7-12.)
Section 99. Effective date. This Act takes effect upon
becoming law.