093_HB0235ham001

 










                                     LRB093 02644 AMC 10063 a

 1                     AMENDMENT TO HOUSE BILL 235

 2        AMENDMENT NO.     .  Amend House Bill  235  by  replacing
 3    the title with the following:
 4        "AN ACT concerning corporations."; and

 5    by  replacing  everything  after the enacting clause with the
 6    following:

 7        "Section 1.  Short title.  This Act may be cited  as  the
 8    Corporate Accountability for Tax Expenditures Act.

 9        Section 5.  Definitions.  As used in this Act:
10        "Affiliated  group"  means  the  recipient, its corporate
11    parent (if any), all other subsidiaries such corporate parent
12    owns, and all other  businesses  with  substantially  similar
13    ownership.
14        "Base  years"  means  the first 2 complete calendar years
15    following  the  effective  date  of  a  recipient   receiving
16    development assistance.
17        "Corporate  parent"  means  any  person  or legal entity,
18    organization,  business,  partnership,  group,  or  corporate
19    entity  recognized  by  law,  or  combination  thereof,  that
20    possesses, owns, or controls an interest greater than 50%  of
21    the recipient.
 
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 1        "Date of assistance" means the date upon which a granting
 2    body   transmits   the  first  dollar  value  of  development
 3    assistance to a recipient.
 4        "Default" means that a recipient has not achieved its job
 5    creation or wage or benefit goals, or  the  affiliated  group
 6    has  not  maintained  90% of its State employment, as long as
 7    the subsidy is in effect, or 10 years, whichever is longer.
 8        "Development  assistance"  means  any  form   of   public
 9    assistance,  including both direct and indirect on-budget and
10    off-budget assistance, including tax expenditures,  made  for
11    the  purpose  of  stimulating economic development of a given
12    corporation,  industry,  geographic  jurisdiction,  or  other
13    subset of the State's economy, including but not  limited  to
14    industrial  development  bonds,  training grants, loans, loan
15    guarantees,  enterprise   zones,   empowerment   zones,   tax
16    increment   financing,   grants,   fee  waivers,  land  price
17    subsidies, infrastructure whose principal  beneficiary  is  a
18    single business or defined group of businesses at the time it
19    is  built  or  improved,  matching funds, tax abatements, tax
20    credits, and tax discounts of every kind, including corporate
21    income, personal  income,  sales,  use,  raw  materials,  job
22    creation,  industrial investment, excise, utility, inventory,
23    accelerated depreciation, and research  and  development  tax
24    credits and discounts.
25        "Full-time,  permanent  job" means a job in which the new
26    employee works for the recipient at a rate  of  at  least  35
27    hours per week.
28        "Granting body" means any public entity within the State,
29    including    local    governments,    regional    development
30    organizations, State and local public corporations, the State
31    government,  and any State department or agency that provides
32    development assistance, including  but  not  limited  to  the
33    Department  of  Commerce and Community Affairs, Department of
34    Employment Security, workforce development  boards,  economic
 
                            -3-      LRB093 02644 AMC 10063 a
 1    development  commissions, industrial development authorities,
 2    regional development authorities, and finance authorities.
 3        "In effect"  refers  to  any  calendar  year  within  the
 4    duration  of  the  development  assistance, including but not
 5    limited to the duration of  any  loan,  loan  guarantee,  tax
 6    credit  or tax credit carryforward, property tax reduction or
 7    abatement, or tax increment financing. For one-time forms  of
 8    development   assistance   such  as  grants  and  land  price
 9    subsidies, "in effect" refers to a period of not less than  5
10    years from the date of assistance.
11        "Part-time  job"  means  a  job in which the new employee
12    works for the recipient at a rate of less than 35  hours  per
13    week.
14        "Permanent job" means a job in which a new employee works
15    for  the  recipient, not as an independent contractor or on a
16    consulting basis, at a rate of at least  35  hours  per  week
17    with  the  intention  that such employment shall continue and
18    that the employee will receive all health insurance, pension,
19    profit  sharing,  and  other  benefits   offered   to   other
20    full-time, permanent employees.
21        "Property-taxing  entity" means every entity in the State
22    that levies taxes upon real property.
23        "Recipient" means any business  that  claims  development
24    assistance.  A business is any corporation, limited liability
25    company,  partnership,  joint  venture,   association,   sole
26    proprietorship,  or  other  legally  recognized  entity  that
27    claims any development assistance.
28        "Small   businesses"   means   those  corporations  whose
29    corporate parents, and  all  subsidiaries  thereof,  employed
30    fewer  than  an average of 49 full-time, permanent equivalent
31    employees.
32        "Specific project site" means that  distinct  operational
33    unit to which any development assistance is applied.
34        "Subsidiary"   means   any   person   or   legal  entity,
 
                            -4-      LRB093 02644 AMC 10063 a
 1    organization,  business,  partnership,  group,  or  corporate
 2    entity recognized by law,  or  any  combination  thereof,  in
 3    which  the  affiliated  group possesses, owns, or controls an
 4    interest greater than 50%.
 5        "Substantially similar" means  at  least  51%  of  equity
 6    interests  are  owned  either  legally or beneficially by the
 7    same individual or entities.
 8        "Temporary job" means a job in which the new employee  is
 9    hired for a specific duration of time or season.
10        "Value of assistance" means the face value of any form of
11    development assistance, such as a bond amount.
12        "New  employee" means a full-time, permanent employee who
13    represents a net increase in the  number  of  the  affiliated
14    group's  employees  statewide.  "New  employee"  includes  an
15    employee  who  previously filled a new employee position with
16    any member of the affiliated group who was rehired or  called
17    back  from  a layoff that occurs during or following the base
18    years.
19        The term "New Employee"  does  not  include  any  of  the
20    following:
21             (1)  An   employee   of  the  affiliated  group  who
22        performs a job that was previously performed  by  another
23        employee,  if  that  job  existed  for  at least 6 months
24        before hiring the employee.
25             (2)  An employee of the recipient who was previously
26        employed in Illinois by the affiliated  group  and  whose
27        employment   was  shifted  to  the  recipient  after  the
28        recipient entered into any sort of agreement  to  receive
29        development assistance.
30             (3)  A  child,  grandchild, parent, or spouse, other
31        than  a  spouse  who  is  legally  separated   from   the
32        individual,  of  any  individual  who  has  a  direct  or
33        indirect  ownership  interest  of  at  least  5%  in  the
34        profits,   capital,   or  value  of  any  member  of  the
 
                            -5-      LRB093 02644 AMC 10063 a
 1        affiliated group.
 2             (4)  An employee of  the  recipient  who  previously
 3        worked  for any member of the affiliated group outside of
 4        Illinois prior to the Date of Assistance.

 5        Section 10.  Unified Economic Development Budget.
 6        (a)  The Department of Revenue  shall  submit  an  annual
 7    Unified  Economic  Development Budget to the General Assembly
 8    no later than 3 months after the end of  the  State's  fiscal
 9    year.  The  report  shall  present  all  types of development
10    assistance for economic development during the  prior  fiscal
11    year, including but not limited to:
12             (1)  The amount of uncollected or diverted state tax
13        revenues  resulting  from development assistance provided
14        by the State or a local governmental unit  including  but
15        not  limited  to  gross receipts, income, sales, use, raw
16        materials,  excise,  property,  utility,  and   inventory
17        taxes.
18             (2)  The  name  of  each  recipient that claimed any
19        development assistance under subdivision (1) of any value
20        equal to or greater than $50,000, whether from single  or
21        multiple   sources,   together  with  the  dollar  amount
22        received by each such recipient.
23             (3)  Any  development  assistance  received   by   a
24        recipient  totaling  less  than $50,000 each shall not be
25        itemized. The  Department  of  Revenue  shall  report  an
26        aggregate  dollar  amount  of such development assistance
27        and the number of recipients so aggregated for each  type
28        of development assistance.
29             (4)  All  State  appropriated development assistance
30        for economic development, including line-item budgets for
31        every  State-funded  entity   concerned   with   economic
32        development,   including   but   not   limited  to  State
33        Department of Commerce, State  Department  of  Employment
 
                            -6-      LRB093 02644 AMC 10063 a
 1        and   Training,   vocational  education  programs,  State
 2        university  research  programs,  manufacturing  extension
 3        service,   Workforce    Investment    Boards,    Economic
 4        Development     Commissions,    Industrial    Development
 5        Authorities,  Regional   Development   Authorities,   and
 6        Finance Authorities.
 7        (b)  All  data  produced by the Department of Revenue and
 8    received by the General Assembly in compliance with this  Act
 9    shall be fully subject to the Freedom of Information Act.

10        Section  15.  Disclosure  of  property tax reductions and
11    abatements.
12        (a)  On or  before  April  1,  2004,  the  Department  of
13    Revenue  shall  promulgate a standardized disclosure registry
14    for use by  all  property-taxing  entities.  The  form  shall
15    require, but not be limited to, the following data:
16             (1)  The name of the property owner.
17             (2)  The address and description of the property.
18             (3)  The date upon which any individual property tax
19        reduction or abatement first took effect.
20             (4)  The date upon which any individual property tax
21        reduction or abatement is scheduled to expire.
22             (5)  The   rate   or  schedule  of  each  individual
23        property  tax  reduction  or  abatement  for  the  period
24        between the date it  took  effect  and  the  date  it  is
25        scheduled to expire.
26             (6)  The entity's aggregate foregone revenue for the
27        calendar  year as a result of each property tax reduction
28        or abatement.
29             (7)  A compilation and summary of the entity's total
30        foregone  revenue  as  a  result  of  all  property   tax
31        reductions or abatements, including a summary of foregone
32        revenue for each kind of reduction or abatement.
33             (8)  The  respective shares of the entity's property
 
                            -7-      LRB093 02644 AMC 10063 a
 1        tax revenues in the  reported  year  that  went  to  each
 2        designated  public  agency,  including but not limited to
 3        school boards, general  funds,  public  safety  agencies,
 4        fire    departments,    park   districts,   and   general
 5        administration.
 6        (b)  Beginning  April  1,  2004   and   for   each   year
 7    thereafter,  every  property-taxing entity in the State shall
 8    employ this standardized registry  to  report  to  the  State
 9    Department   of   Revenue  all  property  tax  reductions  or
10    abatements that had effect during the previous calendar year.
11        (c)  The Department of Revenue shall, by June 1, 2004 and
12    each year thereafter, compile and publish all data in all  of
13    the  disclosure  registries  in  both  written and electronic
14    form.
15        (d)  If a property-taxing entity  fails  to  comply  with
16    subsection  (b)  of  this  Section, the Department of Revenue
17    shall, within 10  working  days  after  the  April  1  filing
18    deadline,  notify  the  Department  of Commerce and Community
19    Affairs of that failure. Upon  receipt  of  the  notice,  the
20    Department  of  Commerce  and Community Affairs shall suspend
21    within 33 working days  any  current  development  assistance
22    activities  under its control in the property-taxing entity's
23    jurisdiction, and shall be  prohibited  from  completing  any
24    current   development  assistance  or  providing  any  future
25    development  assistance  in  the  non-compliant  jurisdiction
26    until it receives proof from the Department of  Revenue  that
27    the  property  taxing entity has complied with subsection (b)
28    of this Section.
29        (e)  All data generated in  compliance  with  subsections
30    (a)  and  (b) are fully subject to the Freedom of Information
31    Act.

32        Section  20.  Standardized  applications  for   on-budget
33    development.
 
                            -8-      LRB093 02644 AMC 10063 a
 1        (a)  On  or  before  April  1,  2004,  the  Department of
 2    Commerce   and   Community   Affairs   shall   promulgate   a
 3    standardized  application  form  for  on-budget   development
 4    assistance  for  use  by  all granting bodies. The form shall
 5    require, but not be limited to, the following data:
 6             (1)  An application tracking number that is specific
 7        to both the granting agency and to each application.
 8             (2)  The name, street and mailing  addresses,  phone
 9        number, and chief officer of the granting body.
10             (3)  The  name,  street and mailing addresses, phone
11        number, and chief officer of the corporate parent of  the
12        applicant corporation.
13             (4)  The  name,  street and mailing addresses, phone
14        number, 4-digit SIC number,  and  chief  officer  of  the
15        applicant  corporation  at  the specific project site for
16        which development assistance is sought.
17             (5)  The applicant  corporation's  total  number  of
18        employees at the specific project site on the date of the
19        application,   broken   down   by  full-time,  permanent,
20        part-time, and temporary.
21             (6)  The total number of employees in the  State  of
22        the  applicant  corporation's  corporate  parent, and all
23        subsidiaries thereof,  as  of  December  1  of  the  year
24        preceding   the  date  of  application,  broken  down  by
25        full-time, permanent, part-time, and temporary.
26             (7)  The kind of development assistance and value of
27        assistance being applied for.
28             (8)  The number of new jobs to  be  created  by  the
29        development   assistance,   broken   down  by  full-time,
30        permanent, part-time, and temporary.
31             (9)  The average hourly wage to be paid  within  one
32        year  of  hiring  to  the  new  employees, broken down by
33        number of full-time, permanent, part-time, and  temporary
34        employees,  and  broken down by wage bands as follows: $6
 
                            -9-      LRB093 02644 AMC 10063 a
 1        or less an hour, $6.01 to $7 an  hour,  $7.01  to  $8  an
 2        hour,  $8.01  to $9 an hour, $9.01 to $10 an hour, $10.01
 3        to $11 an hour, $11.01 to $12 an hour, $12.01 to  $13  an
 4        hour, $13.01 to $14 an hour, and $14.01 or more per hour.
 5             (10)  For  applicant  project  sites  located  in  a
 6        Metropolitan  Statistical  Area,  as  defined by the U.S.
 7        Census Bureau, the  average  hourly  wage  paid  to  non-
 8        managerial  employees  in the applicant's industry in the
 9        State, as most recently provided by the  U.S.  Bureau  of
10        Labor   Statistics   to  the  2  or  3-digit  SIC  number
11        specification, as available.
12             (11)  For applicant project sites located outside of
13        Metropolitan Statistical Areas, the average  weekly  wage
14        paid in the county, as most recently reported by the U.S.
15        Department  of  Commerce  in its County Business Patterns
16        reports.
17             (12)  The  nature  of  employer-paid   health   care
18        coverage  to  be provided within 90 days of hiring to the
19        employees filling the new jobs, including any costs to be
20        borne by the new employees.
21             (13)  A list  of  all  other  forms  of  development
22        assistance  the  applicant corporation is seeking for the
23        specific project site, and the name of each granting body
24        from which that development assistance is being sought.
25             (14)  A narrative, if necessary, describing how  the
26        applicant's  use of the development assistance may reduce
27        employment at any site in any United States  jurisdiction
28        controlled  by the applicant corporation or its corporate
29        parent, including but  not  limited  to  events  such  as
30        automation,  consolidation,  merger, acquisition, product
31        line   movement,   business   activity    movement,    or
32        restructuring  by either the applicant corporation or its
33        corporate parent.
34             (15)  Individual   certifications   by   the   chief
 
                            -10-     LRB093 02644 AMC 10063 a
 1        officers  of  both  the  applicant  corporation  and  the
 2        granting body as to  the  accuracy  of  the  application,
 3        under penalty of perjury.
 4        (b)  Beginning  April 1, 2004, every granting body in the
 5    State, jointly with applicant corporations,  shall  fill  out
 6    the  standardized  application  form  as  prescribed  in this
 7    Section each  time  a  corporation  applies  for  development
 8    assistance.

 9        Section 25.  On-budget development assistance disclosure.
10        (a)  Beginning February 1, 2005 and each year thereafter,
11    every  granting  body  in  the  State  shall  submit  to  the
12    Department  of  Commerce  and Community Affairs copies of all
13    the   standardized   applications   forms   for   development
14    assistance that it has  received  in  the  previous  calendar
15    year.  Upon  each  form,  the  granting  body shall designate
16    whether the development assistance is pending, was  approved,
17    or  was  not  approved,  and for those applications that were
18    approved, the date of assistance if the  date  of  assistance
19    occurred in the previous calendar year.
20        (b)  For  those  applications  that were approved but for
21    which the date of  assistance  did  not  occur  in  the  same
22    calendar  year,  each  granting body shall report in its next
23    subsequent  February  1  annual  report  to  the   Department
24    relevant dates of assistance.
25        (c)  For each development assistance application that was
26    approved, except for small businesses as defined in this Act,
27    and  for  which  the  date  of  assistance  has occurred in a
28    reporting year, each granting  agency  shall  submit  to  the
29    Department  of  Commerce  and  Community  Affairs  a progress
30    report that shall include, but not limited to, the  following
31    data:
32             (1)  The application tracking number.
33             (2)  The  name,  street and mailing addresses, phone
 
                            -11-     LRB093 02644 AMC 10063 a
 1        number, and chief officer of the granting body.
 2             (3)  The name, street and mailing  addresses,  phone
 3        number,  4-digit  SIC  number,  and  chief officer of the
 4        corporation at the specific project site  for  which  the
 5        development assistance was approved.
 6             (4)  The kind of development assistance and value of
 7        assistance that was approved.
 8             (5)  The  applicant's  total  level of employment at
 9        the specific project site on the date of the  application
10        and  the  applicant's  total  level  of employment at the
11        specific project site on the date of the  report,  broken
12        down  by  full-time, permanent, part-time, and temporary,
13        and a computation of the gain or loss in each category.
14             (6)  The  number   of   new   jobs   the   applicant
15        corporation stated in its application would be created by
16        the  development  assistance,  broken  down by full-time,
17        permanent, part-time, and temporary.
18             (7)  The total level of employment in the  State  of
19        the  applicant's  corporate  parent, and all subsidiaries
20        thereof, as of December 31 of the year preceding the date
21        of application and the total level of employment  in  the
22        State  of  the  applicant's  corporate  parent,  and  all
23        subsidiaries  thereof,  as of each December 31 up through
24        the reporting year, broken down by full-time,  permanent,
25        part-time,  and temporary, and a statement of the gain or
26        loss in each category from the earliest reported year  to
27        the most recent.
28             (8)  The  average hourly wage paid as of December 31
29        of the reporting year to employees filling the  new  jobs
30        at  the specific project site, broken down by full- time,
31        permanent, part-time, and temporary, and broken  down  by
32        wage bands as follows: $6.00 or less an hour, $6.01 to $7
33        an  hour; $7.01 to $8.00 an hour; $8.01 to $9.00 an hour;
34        $9.01 to $10 an hour; $10.01 to $11.00 an hour; $11.01 to
 
                            -12-     LRB093 02644 AMC 10063 a
 1        $12.00 an hour; $13.01  to  $13.00  an  hour;  $13.01  to
 2        $14.00  an  hour; and $14.01 or more an hour. The average
 3        hourly wage paid as of December 31 of the reporting  year
 4        to employees filling the new jobs at the specific project
 5        site, broken down by full-time, permanent, part-time, and
 6        temporary.
 7             (9)  The   nature   of   employer-paid  health  care
 8        coverage being provided within 90 days of hiring  to  the
 9        employees filling the new jobs, including any costs being
10        borne by the new employees.
11             (10)  A  narrative, if necessary, describing how the
12        recipient's use of the development assistance during  the
13        reporting  year has reduced employment at any site in any
14        United States jurisdiction controlled by the applicant or
15        its corporate parent, including but not limited to events
16        such as automation, consolidation,  merger,  acquisition,
17        product  line  movement,  business  activity movement, or
18        restructuring by either the applicant  or  its  corporate
19        parent.
20             (11)  Signed  individual certifications by the chief
21        officers  of  both  the  applicant  corporation  and  the
22        granting body as to the accuracy of the progress  report,
23        under penalty of perjury.
24        (d)  The granting body and the Department of Commerce and
25    Community  Affairs,  or  any  successor agency, all have full
26    investigative authority to verify  the  applicant's  progress
27    report  data,  including but not limited to inspection of the
28    specific  project  site  and  analysis  of  tax  and  payroll
29    records.
30        (e)  By  June  1,  2005  and  by  June  1  of  each  year
31    thereafter, the Department of Commerce and Community  Affairs
32    shall  compile and publish all data in all of the development
33    assistance progress reports in both  written  and  electronic
34    form.
 
                            -13-     LRB093 02644 AMC 10063 a
 1        (f)  Every     aspect    all    development    assistance
 2    applications,  progress  reports,  and  the   Department   of
 3    Commerce  and  Community Affairs' compilation of applications
 4    and progress reports shall be fully subject to the Freedom of
 5    Information Act.
 6        (g)  If a granting body fails to comply with  subsections
 7    (a)  through  (c),  the  Department of Commerce and Community
 8    Affairs shall, within 10  working  days  of  the  February  1
 9    filing  deadline,  suspend any current development assistance
10    activities under its control in the body's jurisdiction,  and
11    shall  be  prohibited  from  proceeding  with  any current or
12    future development assistance activities under its control in
13    the granting body's jurisdiction,  until  it  receives  proof
14    that  the  negligent  granting body or recipient has complied
15    with this Act.

16        Section 30.  Job creation and job quality standards.
17        (a)  In considering development assistance  applications,
18    all  granting  bodies shall perform 2 analyses concerning the
19    projected wages and benefits. Specifically:
20             (1)  In    considering    development     assistance
21        applications,  all  granting  bodies  shall  compare  the
22        aggregate  projected  wage with existing wages. To derive
23        the aggregate projected wage,  the  granting  body  shall
24        compute  the  weighted  hourly  average  wage for all new
25        employees, including full-time, permanent, part-time, and
26        temporary employees. If the aggregate projected  wage  is
27        less than 85% of existing wages, the application shall be
28        denied.  For small businesses, if the aggregate projected
29        wage is less than 75% of existing wages, the  application
30        shall be denied.
31             (2)  In     considering    development    assistance
32        applications, all granting bodies shall perform a  second
33        wage  computation  to  consider  the value of health care
 
                            -14-     LRB093 02644 AMC 10063 a
 1        coverage provided to full-time, permanent  employees.  If
 2        the  applicant  corporation  is not providing health care
 3        coverage to full-time, permanent employees, the  granting
 4        body  shall  subtract  $1.50  an  hour from the projected
 5        wage. If the recipient projects some health care costs to
 6        be borne by the new full-time, permanent  employees,  the
 7        granting  body  shall,  based  on data from the applicant
 8        corporation,  estimate  the  hourly  cost  to   the   new
 9        full-time, permanent employee of those costs and subtract
10        that  amount  from  the  projected  wage.  If  the amount
11        resulting from  the  subtraction  is  less  than  80%  of
12        existing  wages,  the  application  shall  be denied. For
13        small  Businesses,  if  the  amount  resulting  from  the
14        subtraction is less  than  70%  of  existing  wages,  the
15        application shall be denied.
16        (b)  Granting  bodies  shall  perform a third eligibility
17    analysis. In considering development assistance applications,
18    all granting bodies shall divide the value of  assistance  by
19    the  number  of  projected  full-time, permanent jobs. If the
20    resulting sum  exceeds  $35,000,  the  application  shall  be
21    denied.
22        (c)  Nothing  in  this  Act  shall  be read to require or
23    authorize  any  recipient   corporation   to   reduce   wages
24    established  by  any collective bargaining agreement or state
25    or federal prevailing wage law.

26        Section 35.  Recapture.
27        (a)  Recipients  are  required  to  achieve   their   job
28    creation  and wage and benefit goals within 2 years after the
29    date of assistance. They are also required to maintain  their
30    wage  and  benefit goals as long as the benefit is in effect,
31    or  5  years,  whichever  is  longer.  Affiliated  groups  of
32    recipients are required to maintain at  least  90%  of  their
33    original State employment.
 
                            -15-     LRB093 02644 AMC 10063 a
 1        (b)  Granting  bodies  shall within 10 working days after
 2    the second anniversary of the date of assistance, fill out  a
 3    standardized  progress report and the recipient shall sign it
 4    and certify its  accuracy  under  penalty  of  perjury.  This
 5    second  anniversary  progress  report  shall  be filed by the
 6    granting body with the Department of Commerce  and  Community
 7    Affairs  along with the granting body's next annual filing of
 8    progress reports.
 9        (c)  The granting body  shall  indicate  on  this  second
10    anniversary   progress   report  whether  the  recipient  has
11    achieved its job creation and wage  and  benefit  goals,  and
12    whether  the affiliated group has maintained 90% of its State
13    employment.
14        (d)  On  all  subsequent  annual  progress  reports,  the
15    granting body shall indicate whether  or  not  the  recipient
16    corporation  is still in compliance with its job creation and
17    wage and benefit goals, and whether the corporate  parent  is
18    still  in  compliance  with  its State employment maintenance
19    requirement.
20        (e)  If on any progress report occasion,  beginning  with
21    the second anniversary progress report, a granting body finds
22    that  a  recipient  corporation  has  not  achieved  its  job
23    creation  or  wage  or benefit goals, or the affiliated group
24    has not maintained 90% of its State employment  the  granting
25    body  must,  within  10  working  days,  file  a  finding  of
26    development assistance default with the Department of Revenue
27    and the recipient.
28        (f)  If  a  recipient defaults on development assistance,
29    it must pay back to the granting body that  fraction  of  the
30    development  assistance  that  accrued to its benefit for the
31    calendar year in which the default  occurred.  For  one  time
32    forms  of development assistance such as grants or land price
33    discounts, a  defaulting  recipient  must  pay  back  to  the
34    granting  body  three-quarters  of  the  value of assistance.
 
                            -16-     LRB093 02644 AMC 10063 a
 1    Remittance of the payback by the recipient corporation to the
 2    granting body shall take place within 60 calendar days of the
 3    delivery of the default notice to the recipient,  unless  the
 4    granting  body  agrees,  in writing, to extend such repayment
 5    period for cause, up to a maximum of 365 days.  For  purposes
 6    of the preceding, "cause" will mean imminent and demonstrable
 7    hardship to the recipient that may result in such recipient's
 8    insolvency or discharge of workers.
 9        (g)  If  a  recipient defaults on development assistance,
10    in 3 consecutive calendar  years,  the  granting  body  shall
11    declare  the development assistance void, and shall so notify
12    the Department of Commerce  and  Community  Affairs  and  the
13    recipient. Upon this declaration, the recipient must pay back
14    to  the  granting body all remaining value of the development
15    assistance it has not already paid back.  Remittance  of  the
16    void  payback  by  the  recipient corporation to the granting
17    body shall  take  place  within  180  calendar  days  of  the
18    delivery  of the notice to the recipient, unless the granting
19    body agrees, in writing, to extend such repayment period  for
20    cause,  up  to  a  maximum  of  730 days. For purposes of the
21    preceding,  "cause"  will  mean  imminent  and   demonstrable
22    hardship to the recipient that may result in such recipient's
23    insolvency or discharge of workers.
24        (h)  Every  aspect  of all development assistance default
25    notices, recapture  remittances,  associated  correspondence,
26    and related proceedings shall be fully subject to the Freedom
27    of Information Act.

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