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.


LRB102 17103 RJF 22532 b

 

 

A BILL FOR

 

SB2557LRB102 17103 RJF 22532 b

1    AN ACT concerning State government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Department of Commerce and Economic
5Opportunity Law of the Civil Administrative Code of Illinois
6is amended by adding Section 605-1055 as follows:
 
7    (20 ILCS 605/605-1055 new)
8    Sec. 605-1055. Good corporate citizen requirement for tax
9incentive recipients.
10    (a) As used in this Section:
11    "Business" means an applicant for or recipient of
12development assistance.
13    "Corporate parent or affiliate" means: (i) a related
14member with respect to a business; or (ii) an entity that
15exercises control over the business and whose interests are
16served by the business.
17    "Development assistance" means tax credits and tax
18exemptions given as an incentive to a business organization
19pursuant to an agreement with the Department or an initial
20certification or designation issued by the Department. This
21term does not include any Department-administered tax credit
22program that provides a tax credit to an investor in a
23business.

 

 

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1    "Development assistance agreement" means: (i) any
2agreement or memorandum of understanding executed by the State
3granting body and the business organization participating in
4the development assistance program setting forth the terms and
5conditions of development assistance to be provided to the
6recipient consistent with the final application for
7development assistance, including, but not limited to, the
8date of assistance, submitted to and approved by the
9Department; and (ii) any application for certification or
10designation setting forth the terms and conditions of
11development assistance to be provided to the recipient that is
12approved by the Department.
13    "Good corporate citizen" means a business that has
14demonstrated a capacity for legal compliance and that will be
15responsible to its community and its workforce.
16    "Good corporate citizen requirements" means any
17development assistance agreement required provided for in this
18Section or by administrative rule.
19    "Related member" has the same meaning as set forth in
20Section 5-5 of the Economic Development for a Growing Economy
21Tax Credit Act.
22    (b) The Department may require a business organization to
23agree to certain terms that ensure the business, including its
24related members, is a good corporate citizen as a condition
25for receiving development assistance. A business that cannot
26truthfully agree to any required terms shall be ineligible for

 

 

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1the development assistance. Such terms may include, but need
2not be limited to, covenants, representations, and warranties
3that:
4        (1) the business, its corporate officers, or corporate
5    parent or affiliate, are not or have not been the subject
6    of any criminal investigations or charges;
7        (2) there has been no investigation conducted or
8    charges, complaints, or actions brought by the State of
9    Illinois or any governmental body within the State of
10    Illinois, including the federal government, with respect
11    to the business or its officers or directors or a
12    corporate parent or affiliate that relates to alleged
13    fraud or activity that poses a substantial threat or
14    persistent nuisance to public health, safety, or welfare;
15        (3) the business and any corporate parent or affiliate
16    are not delinquent on the payment of any taxes to the State
17    of Illinois or on the Illinois Stop Payment List or a
18    debarred or suspended parties list maintained by the State
19    of Illinois or the United States; and
20        (4) the business and any corporate parent or affiliate
21    operating within Illinois will comply with the
22    requirements of all laws governing the project supported
23    by the development assistance, the Illinois Human Rights
24    Act, the Illinois Prevailing Wage Act, the Wage Payment
25    and Collection Act, the Consumer Fraud and Deceptive
26    Business Practices Act, the Right to Privacy in the

 

 

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1    Workplace Act, and the federal National Labor Relations
2    Act.
3    (c) Compliance with good corporate citizen eligibility is
4required throughout a development assistance agreement. The
5Department may seek revocation of any credits or exemptions
6that were earned or used during a time when the business or its
7corporate parent or affiliate was not in compliance with any
8applicable requirements.
9    (d) The Department shall adopt rules setting forth any
10other programmatic terms and conditions and the consequences
11for noncompliance during the term of a development assistance
12agreement. The Department may adopt rules providing for
13exceptions to the good corporate citizen requirements if an
14application would, in the determination of the Department,
15cause an imminent and demonstrable hardship to the people of
16Illinois or to the business's workforce. If an exception is
17granted, the business must agree to a contractual modification
18identifying the exception and the basis for granting it.