HB2486 102ND GENERAL ASSEMBLY

LRB102 13209 RJF 18553 b

102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB2486

Introduced 2/19/2021, by Rep. Deanne M. Mazzochi

SYNOPSIS AS INTRODUCED:

20 ILCS 655/3	from Ch. 67 1/2, par. 603
20 ILCS 655/7	from Ch. 67 1/2, par. 611
20 ILCS 655/14 new

Amends the Illinois Enterprise Zone Act. Provides that priority in the use of industrial development bonds issued by the Illinois Finance Authority shall be given to small businesses that manufacture medical provisions, process food, or produce goods and services identified under a disaster proclamation or executive order issued by the Governor. Provides that specified businesses that produce medical provisions, food infrastructure, or important and essential supplies shall not be subject to any statutory and regulatory restrictions from the State of Illinois if those restrictions are more stringent than those required by federal law. Provides further requirements concerning this exemption. Provides for a preference in the awarding of State contracts to small businesses that produce medical provisions, food infrastructure, or important and essential supplies. Requires the Department of Public Health to identify drug and hospital supplies that are critical to preserving and protecting the health and safety of Illinois residents, and provide notice of potential supply disruption. Creates the Illinois Known Drug Safety and Efficacy Opportunity Board and the Illinois Food Processing and Distribution Board for specified purposes and duties. Defines terms. Effective immediately.

FISCAL NOTE ACT MAY APPLY

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 1. This Act may be referred to as the Amplifying Medical Provisions, Lifting Infrastructure for Food, Important and Essential Supplies (AMPLIFIES) Act.

Section 5. The Illinois Enterprise Zone Act is amended by changing Sections 3 and 7 and by adding Section 14 as follows:

(20 ILCS 655/3) (from Ch. 67 1/2, par. 603)

Sec. 3. Definitions. As used in this Act, the following words shall have the meanings ascribed to them, unless the context otherwise requires:

(a) "Department" means the Department of Commerce and Economic Opportunity.

(b) "Enterprise Zone" means an area of the State certified by the Department as an Enterprise Zone pursuant to this Act.

(c) "Depressed Area" means an area in which pervasive poverty, unemployment and economic distress exist.

(d) "Designated Zone Organization" means an association or entity: (1) the members of which are substantially all residents of the Enterprise Zone; (2) the board of directors of which is elected by the members of the organization; (3) which satisfies the criteria set forth in Section 501(c) (3) or 501(c) (4) of the Internal Revenue Code; and (4) which exists primarily for the purpose of performing within such area or zone for the benefit of the residents and businesses thereof any of the functions set forth in Section 8 of this Act.

(e) "Agency" means each officer, board, commission and agency created by the Constitution, in the executive branch of State government, other than the State Board of Elections; each officer, department, board, commission, agency, institution, authority, university, body politic and corporate of the State; and each administrative unit or corporate outgrowth of the State government which is created by or pursuant to statute, other than units of local government and their officers, school districts and boards of election commissioners; each administrative unit or corporate outgrowth of the above and as may be created by executive order of the Governor. No entity shall be considered an "agency" for the purposes of this Act unless authorized by law to make rules or regulations.

(f) "Rule" means each agency statement of general applicability that implements, applies, interprets or prescribes law or policy, but does not include (i) statements concerning only the internal management of an agency and not affecting private rights or procedures available to persons or entities outside the agency, (ii) intra-agency memoranda, or (iii) the prescription of standardized forms.

(g) "Board" means the Enterprise Zone Board created in Section 5.2.1.

(h) "Local labor market area" means an economically integrated area within which individuals can reside and find employment within a reasonable distance or can readily change jobs without changing their place of residence.

(i) "Full-time equivalent job" means a job in which the new employee works for the recipient or for a corporation under contract to the recipient at a rate of at least 35 hours per week. A recipient who employs labor or services at a specific site or facility under contract with another may declare one full-time, permanent job for every 1,820 man hours worked per year under that contract. Vacations, paid holidays, and sick time are included in this computation. Overtime is not considered a part of regular hours.

(j) "Full-time retained job" means any employee defined as having a full-time or full-time equivalent job preserved at a specific facility or site, the continuance of which is threatened by a specific and demonstrable threat, which shall be specified in the application for development assistance. A recipient who employs labor or services at a specific site or facility under contract with another may declare one retained employee per year for every 1,750 man hours worked per year under that contract, even if different individuals perform on-site labor or services.

(k) "Medical provisions" means any drug product, test, or device approved or permitted for importation, sale, offer for sale, marketing, or distribution under the Federal Food, Drug and Cosmetic Act; active pharmaceutical ingredient; synthetic precursor, catalyst, solvent, or reagent used to prepare an active pharmaceutical ingredient; diagnostic test; medical or surgical equipment, tool, device, or component thereof; or packaging associated therewith. The Department of Public Health shall make additional recommendations to the General Assembly at least annually of critical medical infrastructure that is not otherwise encompassed by this subsection (k) for further inclusion under this subsection (k).

(l) "Food infrastructure" means all infrastructure associated with the production, distribution, storage, fulfillment, and sale of food in the State of Illinois, including, but not limited to, plants, animals, feed, equipment, housing, processing, packaging, and construction. The Department of Agriculture shall make additional recommendations to the General Assembly at least annually of critical food infrastructure that is not otherwise encompassed by this subsection (l) for further inclusion under this subsection (l).

(m) "Important and essential supplies" means any goods that are necessary to preserve the functioning of civil society, including those relating to critical household goods and supplies, manufacturing supplies, energy, and transportation. The Department of Commerce and Economic Opportunity or the Department of Transportation shall make additional recommendations to the General Assembly at least annually of critical infrastructure that is not otherwise encompassed by this subsection (m) for further inclusion under this subsection (m).

(n) "Small business" means a business that: (i) has fifty or fewer non-managerial employees; (ii) has less than $3,000,000 in gross revenues per year, as indexed to the year 2020; (iii) is organized under Co-operative Act; or (iv) is organized as a Limited Worker Cooperative Association under Limited Worker Cooperative Association Act.

(Source: P.A. 97-905, eff. 8-7-12; 98-463, eff. 8-16-13.)

(20 ILCS 655/7) (from Ch. 67 1/2, par. 611)

Sec. 7. State Incentives Regarding Public Services and Physical Infrastructure.

(a) This Act does not restrict tax incentive financing pursuant to the "Tax Increment Allocation Redevelopment Act".

(b) Industrial development bonds. Priority in the use of industrial development bonds issued by the Illinois Finance Authority shall be given to: (i) businesses located in an Enterprise Zone; and (ii) small businesses that manufacture medical provisions, process food, or produce goods and services identified under a disaster proclamation or executive order issued by the Governor pursuant to powers granted under Section 7 of the Illinois Emergency Management Agency Act.

(c) Deposit of State funds by the State Treasurer. The State Treasurer is authorized and encouraged to place deposits of State funds with financial institutions doing business in an Enterprise Zone.

(Source: P.A. 93-205, eff. 1-1-04.)

(20 ILCS 655/14 new)

Sec. 14. Essential supplies exemption.

(a) Except as provided under subsection (b), any business that: (i) is started after June 1, 2020; (ii) relocates to Illinois after June 1, 2020; (iii) is presently located in the State of Illinois; or (iv) is incorporated in the State of Illinois and has a majority of employees residing in the State of Illinois, and that produces medical provisions, food infrastructure, or important and essential supplies, shall not be subject to any statutory and regulatory restrictions from the State of Illinois if those restrictions are more stringent than those required by federal law.

This subsection (a) is inoperative on and after January 1, 2026, unless the Governor of the State of Illinois in office on December 31, 2025, or in office thereafter, provides the General Assembly with a report and recommendations identifying a narrower subset of Illinois statutory and regulatory requirements that should apply to such businesses to ensure that such businesses remain as going business concerns in the State of Illinois, and possess the capacity to supply the residents of the State of Illinois with critical medical provisions, food infrastructure, or important and essential supplies, including in the event of a natural disaster or pandemic, in which case this subsection (a) shall be extended for an additional full calendar year after the date of the Governor's report.

Nothing in this subsection (a) shall relieve the business of paying income taxes to the State of Illinois.

(b) Any small business under this Section that: (i) is started after June 1, 2020; (ii) relocates to Illinois after June 1, 2020; (iii) is presently located in the State of Illinois; or (iv) is incorporated in the State of Illinois and has a majority of employees residing in the State of Illinois, and that produces medical provisions, food infrastructure, or important and essential supplies, shall not be subject to any statutory and regulatory restrictions from the State of Illinois if those restrictions are more stringent than those required by federal law for a period of 10 years or one year after the small business loses its status as a small business, whichever occurs sooner.

This subsection (b) is inoperative on and after January 1, 2031, unless the Governor of the State of Illinois in office on December 31, 2025, or in office thereafter, provides the General Assembly with a report and recommendations identifying a narrower subset of Illinois statutory and regulatory requirements that should apply to such small businesses to ensure that such businesses remain as going business concerns in the State of Illinois, and possess the capacity to supply the residents of the State of Illinois with critical medical provisions, food infrastructure, or important and essential supplies, including in the event of a natural disaster or pandemic, in which case this subsection (b) shall be extended for an additional 2 full calendar years after the date of the Governor's report.

If by January 1, 2026, a small business has made a capital investment into any facility in the State of Illinois that is in excess of $1,000,000, the application of this subsection (b) to that small business shall be extended by an additional 10 years or to such time as the capital investment depreciation is equal to zero, whichever occurs sooner.

Nothing in this subsection (b) shall relieve the business of paying income taxes to the State of Illinois.

(c) If a statute or agency rule means that a business qualifying under subsections (a) or (b): (i) presents a significant risk to the health or safety of persons residing in or employed within a 2 mile radius of the facility; or (ii) would conflict with federal law or regulation such that the State, any unit of local government or school district, any area of the State, or any business enterprise within a one mile radius of the facility would be disqualified from a federal program or from federal tax or other benefits, then the State of Illinois shall have the burden of proving by clear and convincing evidence that the proposed additional statutory burden or agency rule will not impose any disruption to medical provisions, food infrastructure, or important and essential supplies.

(d) If a statute or agency rule means that a business qualifying under subsections (a) or (b): (i) presents a significant risk to the business as a going business concern; or (ii) will lead to the loss of critical employees, capital infrastructure, or knowledge base associated with the production and supply of goods and services, the business may file a claim against the State of Illinois for undue business disruption. The burden shall be on the State of Illinois to show by clear and convincing evidence that the statute or agency rule is reasonable and narrowly tailored to meet the State's interest. No injunction may issue against a business unless and until an adverse finding on the merits. Employees, other businesses, and members of the public adversely and materially impacted if the business is forced to comply may also intervene in such action as a matter of right.

(e) When a State contract for the purchase of medical provisions, food infrastructure, or important and essential supplies is to be awarded to the lowest responsible bidder, a small business under this Section who is an otherwise qualified bidder who will fulfill the contract may be given preference over other bidders; provided that, the bid cost is not more than 10% greater than the cost included in a bid.

(f) Identifying critical medical supply infrastructure. The Department of Public Health shall every 2 years identify drug and hospital supplies that are critical to preserving and protecting the health and safety of Illinois residents. For any supplies in which the market share of the medical product or device (including, but not limited to, active pharmaceutical ingredient; critical synthetic precursors, catalysts or reagents; surgical equipment; and medical devices and components thereof) is one in which greater than 50% of the market is made outside the United States, the Department of Public Health shall place a notice on its website and shall inform the Department of Commerce and Economic Opportunity of the potential for a supply chain disruption.

(g) The Illinois Known Drug Safety and Efficacy Opportunity Board is created.

(1) Purpose. In 2019, a new SARS coronavirus is believed to have originated in the region of Wuhan, China. The virus quickly spread throughout the world, leaving untold infections and deaths in its wake. As news of the virus became known, the medical community began to repurpose existing pharmaceutical products as potential treatment options. However, critical delays of weeks or months can lead to needless loss of life. Illinois has some of the leading medical researchers and innovators in the world. The goal of this Board is to facilitate getting potentially life-saving medications quickly into the hands of medical scientists.

(2) The Board shall include the following members:

(i) four members appointed by the Governor, with one each having experience within the fields of medicinal chemistry or drug development, clinical research, pharmaceutical manufacturing, and regulatory compliance;

(ii) one additional member appointed by the Governor;

(iii) one member appointed by the Speaker of the House of Representatives;

(iv) one member appointed by the Minority Leader of the House of Representatives;

(v) one member appointed by the Senate President; and

(vi) one member appointed by the Senate Minority Leader.

(3) The members of the Board shall meet at least twice per year. The Department of Public Health shall designate an administrative liaison and provide administrative support to the Board. Members of the Board shall serve without compensation.

(4) The Board shall facilitate the preparation of an open-source public register of non-FDA approved drug compounds that from 2010 and thereafter: (i) have been the subject of an investigational new drug application; (ii) did not have unacceptable safety profiles in Phase II clinical trials; and (iii) have the proposed mechanism of action for the drug compound.

(5) Subject to appropriation, the Board shall issue grants to public universities within the State of Illinois in connection with identifying or developing broad-spectrum antiviral pharmaceutical compounds.

(6) Subject to appropriation, the Board shall make recommendations to the Department of Commerce and Economic Opportunity for grant proposals to construct pilot plant facilities capable of manufacturing quantities of drug products for at least Phase II clinical trials, according to Good Manufacturing Practices. The Board should look for opportunities to prepare in separate facilities: (i) active pharmaceutical ingredients for small molecules; (ii) active pharmaceutical ingredients that are biologic products (including, but not limited to, monoclonal antibody products); (iii) finished dosage forms; (iv) sterile injectable products; and (v) medical component parts via 3-D printing technology. The Board should give preference to facilities that could be used in the event of an emergency to produce medical provisions.

(7) The Board shall also facilitate the preparation of clinical trial proposals outside the university academic research process.

(8) Subject to appropriation, the Board shall also make awards to community colleges to establish programs relating to life sciences workforce development.

(h) The Illinois Food Processing and Distribution Board is created.

(1) Purpose. In 2019, a new SARS coronavirus is believed to have originated in the region of Wuhan, China. The virus quickly spread throughout the world, leaving untold infections and deaths in its wake. As news of the virus became known, there were considerable disruptions to the food supply chains, including at processing plants, due in part to the lack of excess capacity in the system. Illinois has some of the leading farmers in the world. The goal of this Board is to facilitate building additional food processing capacity throughout the state, on a small and local level.

(2) The Board shall include the following members:

(i) four members appointed by the Governor, with one each having experience within the fields of farming of plants, farming of animals, food processing and distribution, and regulatory compliance;

(ii) one additional member appointed by the Governor;

(iii) one member appointed by the Speaker of the House of Representatives;

(iv) one member appointed by the Minority Leader of the House of Representatives;

(v) one member appointed by the Senate President; and

(vi) one member appointed by the Senate Minority Leader.

(3) The members of the Board shall meet at least twice per year. The Department of Agriculture shall designate an administrative liaison and provide administrative support to the Board. Members of the Board shall serve without compensation.

(4) The Board shall facilitate the identification of alternative food processing sources, including, but not limited to, through hobby farming and workforce training.

(5) Subject to appropriation, the Board shall issue grants to small businesses within the State of Illinois in connection with building or maintaining excess capacity for food processing.

(6) The Board shall particularly look to identify "food deserts" or underserved areas within Cook County, Illinois, that could expand food processing capabilities in the area.

Section 99. Effective date. This Act takes effect upon becoming law.