102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB5059

 

Introduced 1/27/2022, by Rep. Mark L. Walker

 

SYNOPSIS AS INTRODUCED:
 
20 ILCS 715/25

    Amends the Corporate Accountability for Tax Expenditures Act. Provides that, if a recipient is found by the National Labor Relations Board to be in violation of federal labor law with respect to the unionization of its workers, and if the violation occurs in Illinois, then the recipient shall, within 90 days after the finding, inform the agency with which the recipient has a development assistance agreement of the finding, and the development assistance granted to the recipient under the terms of the agreement may not be renewed.


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A BILL FOR

 

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1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Corporate Accountability for Tax
5Expenditures Act is amended by changing Section 25 as follows:
 
6    (20 ILCS 715/25)
7    Sec. 25. Recapture.
8    (a) All development assistance agreements shall contain,
9at a minimum, the following recapture provisions:
10        (1) The recipient must (i) make the level of capital
11    investment in the economic development project specified
12    in the development assistance agreement; (ii) create or
13    retain, or both, the requisite number of jobs, paying not
14    less than specified wages for the created and retained
15    jobs, within and for the duration of the time period
16    specified in the legislation authorizing, or the
17    administrative rules implementing, the development
18    assistance programs and the development assistance
19    agreement.
20        (2) If the recipient fails to create or retain the
21    requisite number of jobs within and for the time period
22    specified, in the legislation authorizing, or the
23    administrative rules implementing, the development

 

 

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1    assistance programs and the development assistance
2    agreement, the recipient shall be deemed to no longer
3    qualify for the State economic assistance and the
4    applicable recapture provisions shall take effect.
5        (3) If the recipient receives State economic
6    assistance in the form of a High Impact Business
7    designation pursuant to Section 5.5 of the Illinois
8    Enterprise Zone Act and the business receives the benefit
9    of the exemption authorized under Section 5l of the
10    Retailers' Occupation Tax Act (for the sale of building
11    materials incorporated into a High Impact Business
12    location) or the utility tax exemption authorized under
13    Section 9-222.1A of the Public Utilities Act and the
14    recipient fails to create or retain the requisite number
15    of jobs, as determined by the legislation authorizing the
16    development assistance programs or the administrative
17    rules implementing such legislation, or both, within the
18    requisite period of time, the recipient shall be required
19    to pay to the State the full amount of both the State tax
20    exemption and the utility tax exemption that it received
21    as a result of the High Impact Business designation.
22        (4) If the recipient receives a grant or loan pursuant
23    to the Large Business Development Program, the Business
24    Development Public Infrastructure Program, or the
25    Industrial Training Program and the recipient fails to
26    create or retain the requisite number of jobs for the

 

 

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1    requisite time period, as provided in the legislation
2    authorizing the development assistance programs or the
3    administrative rules implementing such legislation, or
4    both, or in the development assistance agreement, the
5    recipient shall be required to repay to the State a pro
6    rata amount of the grant; that amount shall reflect the
7    percentage of the deficiency between the requisite number
8    of jobs to be created or retained by the recipient and the
9    actual number of such jobs in existence as of the date the
10    Department determines the recipient is in breach of the
11    job creation or retention covenants contained in the
12    development assistance agreement. If the recipient of
13    development assistance under the Large Business
14    Development Program, the Business Development Public
15    Infrastructure Program, or the Industrial Training Program
16    ceases operations at the specific project site, during the
17    5-year period commencing on the date of assistance, the
18    recipient shall be required to repay the entire amount of
19    the grant or to accelerate repayment of the loan back to
20    the State.
21        (5) If the recipient receives a tax credit under the
22    Economic Development for a Growing Economy tax credit
23    program, the development assistance agreement must provide
24    that (i) if the number of new or retained employees falls
25    below the requisite number set forth in the development
26    assistance agreement, the allowance of the credit shall be

 

 

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1    automatically suspended until the number of new and
2    retained employees equals or exceeds the requisite number
3    in the development assistance agreement; (ii) if the
4    recipient discontinues operations at the specific project
5    site during the 5-year period after the beginning of the
6    first tax year for which the Department issues a tax
7    credit certificate, the recipient shall forfeit all
8    credits taken by the recipient during such 5-year period;
9    and (iii) in the event of a revocation or suspension of the
10    credit, the Department shall contact the Director of
11    Revenue to initiate proceedings against the recipient to
12    recover wrongfully exempted Illinois State income taxes
13    and the recipient shall promptly repay to the Department
14    of Revenue any wrongfully exempted Illinois State income
15    taxes. The forfeited amount of credits shall be deemed
16    assessed on the date the Department contacts the
17    Department of Revenue and the recipient shall promptly
18    repay to the Department of Revenue any wrongfully exempted
19    Illinois State income taxes.
20        (6) If the recipient is found by the National Labor
21    Relations Board to be in violation of federal labor law
22    with respect to the unionization of its workers, and if
23    the violation occurs in Illinois, then the recipient
24    shall, within 90 days after the finding, inform the agency
25    with which the recipient has a development assistance
26    agreement of the finding, and the recipient is not

 

 

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1    eligible for renewal of any development assistance granted
2    to the recipient.
3    (b) The Director may elect to waive enforcement of any
4contractual provision arising out of the development
5assistance agreement required by this Act based on a finding
6that the waiver is necessary to avert an imminent and
7demonstrable hardship to the recipient that may result in such
8recipient's insolvency or discharge of workers. If a waiver is
9granted, the recipient must agree to a contractual
10modification, including recapture provisions, to the
11development assistance agreement. The existence of any waiver
12granted pursuant to this subsection (b), the date of the
13granting of such waiver, and a brief summary of the reasons
14supporting the granting of such waiver shall be disclosed
15consistent with the provisions of Section 25 of this Act.
16    (b-5) The Department shall post, on its website, (i) the
17identity of each recipient from whom amounts were recaptured
18under this Section on or after the effective date of this
19amendatory Act of the 97th General Assembly, (ii) the date of
20the recapture, (iii) a summary of the reasons supporting the
21recapture, and (iv) the amount recaptured from those
22recipients.
23    (c) Beginning June 1, 2004, the Department shall annually
24compile a report on the outcomes and effectiveness of
25recapture provisions by program, including but not limited to:
26(i) the total number of companies that receive development

 

 

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1assistance as defined in this Act; (ii) the total number of
2recipients in violation of development agreements with the
3Department; (iii) the total number of completed recapture
4efforts; (iv) the total number of recapture efforts initiated;
5and (v) the number of waivers granted. This report shall be
6disclosed consistent with the provisions of Section 20 of this
7Act.
8    (d) For the purposes of this Act, recapture provisions do
9not include the Illinois Department of Transportation Economic
10Development Program, any grants under the Industrial Training
11Program that are not given as an incentive to a recipient
12business organization, or any successor programs as described
13in the term "development assistance" in Section 5 of this Act.
14(Source: P.A. 97-2, eff. 5-6-11; 97-721, eff. 6-29-12; 98-109,
15eff. 7-25-13; 98-463, eff. 8-16-13.)