95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
HB0577


 
Introduced 2/5/2007, by Rep. Michael Tryon
 
SYNOPSIS AS INTRODUCED:
 		













New Act






30 ILCS 805/8.31 new










    Creates the Small Business Protection Act. Sets forth notice, comment, and hearing procedures that the State, a unit of local government, a school district, or a not-for-profit entity that receives governmental funding must follow before providing assistance to another such entity. Requires a hearing if a competing small business would lose market share because of the assistance. Preempts home rule powers. Exempts from the reimbursement requirements of the State Mandates Act.
















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FISCAL NOTE ACT MAY APPLY


HOME RULE NOTE ACT MAY APPLY


STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT
















 


 


A BILL FOR









 











HB0577

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    AN ACT concerning small business protection.

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


 
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    Section 1. Short title. This Act may be cited as the Small 
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Business Protection Act.
 
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    Section 5. Definitions.  In this Act:

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    "Outside assistance" means grants, loans, tax incentives, 
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or other financial assistance or incentives (i) provided by the 
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State, any unit of local government, any school district, or 
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any not-for-profit entity that receives governmental funding 
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and (ii) provided to any State agency, unit of local 
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government, school district, or not-for-profit entity.

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    "Small business" means any proprietorship, partnership, 
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corporation, or other business entity, including its 
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affiliates, that is independently owned and operated, is 
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conducted for profit, and employs fewer than 50 full-time 
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employees or has gross annual sales of less than $4,000,000.
 
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    Section 10. Procedures to provide protection. 
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    (a) Prior to providing outside assistance, the entity 
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proposing to provide that outside assistance must exert due 
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diligence to determine the impact that providing the outside 
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assistance will have on existing small businesses in the 
 


 






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affected geographic area. This must include at least 2 notices, 
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at least one week apart, in a newspaper of general circulation 
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in the area stating that the outside assistance is proposed to 
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be provided, giving the details of the outside assistance and 
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how and by whom it is expected to be used, and inviting 
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comments from the public and affected small businesses.
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    (b) Any small business that believes there is a bona fide 
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potential that the outside investment will take away a 
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significant market share from that small business may demand a 
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hearing by making the demand in writing to the entity proposing 
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to provide the outside assistance within 30 days after the 
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second notice under subsection (a) is published. The Department 
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of Commerce and Economic Opportunity must conduct the hearing 
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if the outside assistance is to be provided by the State or a 
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not-for-profit entity that receives governmental funding. The 
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hearing must otherwise be conducted by the unit of local 
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government or school district proposing to provide the outside 
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assistance.  Adequate and informative public notice of the time, 
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place, and subject matter of the hearing must be given at least 
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2 times, at least one week apart, in a newspaper of general 
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circulation in the area. Small businesses and other affected 
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parties shall be allowed to present testimony and other 
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evidence at the hearing and to make arguments for their point 
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of view, all of which must be taken into consideration before 
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any outside assistance is provided.
 
 


 






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    Section 15. Home rule. A home rule unit may not provide 
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outside assistance in a manner inconsistent with this Act. This 
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Section is a limitation under subsection (i) of Section 6 of 
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Article VII of the Illinois Constitution on the concurrent 
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exercise by home rule units of powers and functions exercised 
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by the State.
 
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    Section 90. The State Mandates Act is amended by adding 
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Section 8.31 as follows:
 
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    (30 ILCS 805/8.31 new)
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    Sec. 8.31. Exempt mandate. Notwithstanding Sections 6 and 8 
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of this Act, no reimbursement by the State is required for the 
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implementation of any mandate created by this amendatory Act of 
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the 95th General Assembly.