SB2557 102ND GENERAL ASSEMBLY

LRB102 17103 RJF 22532 b

102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB2557

Introduced 2/26/2021, by Sen. Melinda Bush

SYNOPSIS AS INTRODUCED:

20 ILCS 605/605-1055 new

Amends the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois. Provides that the Department of Commerce and Economic Opportunity may require a business organization to agree to certain terms that ensure the business is a good corporate citizen as a condition for receiving development assistance. Provides that a business that cannot truthfully agree to any required terms shall be ineligible for the development assistance. Specifies terms that may be required. Provides that compliance with good corporate citizen eligibility is required throughout a development assistance agreement. Provides that the Department may seek revocation of any credits or exemptions that were earned or used during a time when the business or its corporate parent or affiliate was not in compliance with any applicable requirements. Provides for the adoption of rules. Defines terms.

A BILL FOR

AN ACT concerning State government.

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

Section 5. The Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois is amended by adding Section 605-1055 as follows:

(20 ILCS 605/605-1055 new)

Sec. 605-1055. Good corporate citizen requirement for tax incentive recipients.

(a) As used in this Section:

"Business" means an applicant for or recipient of development assistance.

"Corporate parent or affiliate" means: (i) a related member with respect to a business; or (ii) an entity that exercises control over the business and whose interests are served by the business.

"Development assistance" means tax credits and tax exemptions given as an incentive to a business organization pursuant to an agreement with the Department or an initial certification or designation issued by the Department. This term does not include any Department-administered tax credit program that provides a tax credit to an investor in a business.

"Development assistance agreement" means: (i) any agreement or memorandum of understanding executed by the State granting body and the business organization participating in the development assistance program setting forth the terms and conditions of development assistance to be provided to the recipient consistent with the final application for development assistance, including, but not limited to, the date of assistance, submitted to and approved by the Department; and (ii) any application for certification or designation setting forth the terms and conditions of development assistance to be provided to the recipient that is approved by the Department.

"Good corporate citizen" means a business that has demonstrated a capacity for legal compliance and that will be responsible to its community and its workforce.

"Good corporate citizen requirements" means any development assistance agreement required provided for in this Section or by administrative rule.

"Related member" has the same meaning as set forth in Section 5-5 of the Economic Development for a Growing Economy Tax Credit Act.

(b) The Department may require a business organization to agree to certain terms that ensure the business, including its related members, is a good corporate citizen as a condition for receiving development assistance. A business that cannot truthfully agree to any required terms shall be ineligible for the development assistance. Such terms may include, but need not be limited to, covenants, representations, and warranties that:

(1) the business, its corporate officers, or corporate parent or affiliate, are not or have not been the subject of any criminal investigations or charges;

(2) there has been no investigation conducted or charges, complaints, or actions brought by the State of Illinois or any governmental body within the State of Illinois, including the federal government, with respect to the business or its officers or directors or a corporate parent or affiliate that relates to alleged fraud or activity that poses a substantial threat or persistent nuisance to public health, safety, or welfare;

(3) the business and any corporate parent or affiliate are not delinquent on the payment of any taxes to the State of Illinois or on the Illinois Stop Payment List or a debarred or suspended parties list maintained by the State of Illinois or the United States; and

(4) the business and any corporate parent or affiliate operating within Illinois will comply with the requirements of all laws governing the project supported by the development assistance, the Illinois Human Rights Act, the Illinois Prevailing Wage Act, the Wage Payment and Collection Act, the Consumer Fraud and Deceptive Business Practices Act, the Right to Privacy in the Workplace Act, and the federal National Labor Relations Act.

(c) Compliance with good corporate citizen eligibility is required throughout a development assistance agreement. The Department may seek revocation of any credits or exemptions that were earned or used during a time when the business or its corporate parent or affiliate was not in compliance with any applicable requirements.

(d) The Department shall adopt rules setting forth any other programmatic terms and conditions and the consequences for noncompliance during the term of a development assistance agreement. The Department may adopt rules providing for exceptions to the good corporate citizen requirements if an application would, in the determination of the Department, cause an imminent and demonstrable hardship to the people of Illinois or to the business's workforce. If an exception is granted, the business must agree to a contractual modification identifying the exception and the basis for granting it.