State of Illinois
92nd General Assembly
Legislation

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92_HB3364eng

 
HB3364 Engrossed                               LRB9207395SMpk

 1        AN ACT in relation to economic assistance.

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

 4        Section 1. Short title. This Act  may  be  cited  as  the
 5    State Economic Assistance Accountability Act.

 6        Section 5. Definitions.  In this Act:
 7        "Business organization" means a corporation, partnership,
 8    limited  liability  company,  joint  venture, association, or
 9    other enterprise that does business in this State.
10        "Department" means the Illinois  Department  of  Commerce
11    and Community Affairs.
12        "Director"  means  the Director of Commerce and Community
13    Affairs.
14        "Project"  means  any   specific   economic   development
15    activity   of   a   commercial,   industrial,  manufacturing,
16    agricultural, scientific, service,  or  other  business,  the
17    result  of which causes the creation or retention of jobs and
18    may include the purchase or lease of machinery and  equipment
19    or  the  lease  or  purchase  of  real  property or funds for
20    infrastructure necessitated  by  site  preparation,  building
21    construction, or related purposes.
22        "State economic assistance" means (1) tax credits and tax
23    exemptions  given  as an incentive to a business organization
24    pursuant to  a  certification  or  designation  made  by  the
25    Department  under  the  Economic  Development  for  a Growing
26    Economy Tax Credit Act and the Illinois Enterprise Zone  Act,
27    including the High Impact Business program; and (2) grants or
28    loans  given  as  an  incentive  to  a  business organization
29    pursuant to the Large Business Development Act. The term does
30    not include assistance (1)  given  for  the  purpose  of  job
31    training,  (2)  given for the purpose of road construction or
 
HB3364 Engrossed            -2-                LRB9207395SMpk
 1    improvements if the road is open to the use  of  the  general
 2    public, (3) provided to units of local government, or (4) for
 3    which the funding source is federal.

 4        Section  10.   Written  agreements containing performance
 5    covenants and sanctions.
 6        (a)  State economic assistance provided by the Department
 7    as an incentive to a business organization must be  based  on
 8    the  terms  of  a  written  incentive  agreement  between the
 9    Department and the business organization.
10        (b)  The incentive agreement must identify  the  specific
11    State  economic  assistance  to  be  provided to the business
12    organization during the term of the agreement.
13        (c)  The incentive agreement must also  provide  for  the
14    following:
15             (1)  That the business organization is bound to make
16        a  specified level of capital investment in a project and
17        cause the creation or retention of a specified  level  of
18        jobs within a specified time period.
19             (2)  That  if the business organization either fails
20        to make the requisite level of capital investment in  the
21        project or fails to create or retain the specified number
22        of  jobs  within  the  specified  time frame, as provided
23        under the Act authorizing the State economic  assistance,
24        the  business  organization  shall be deemed to no longer
25        qualify for the State economic assistance.
26             (3)  That  if  the  business  organization  receives
27        State economic assistance in the form of  a  High  Impact
28        Business  designation  pursuant  to  Section  5.5  of the
29        Illinois Enterprise Zone Act and  the  business  receives
30        the  benefit of the exemption authorized under Section 5l
31        of the Retailers' Occupation Tax Act  (for  the  sale  of
32        building   materials  incorporated  into  a  High  Impact
33        Business location) and the business organization fails to
 
HB3364 Engrossed            -3-                LRB9207395SMpk
 1        create  or  retain  the  requisite  number  of  jobs,  as
 2        determined by the Department, within the period  of  time
 3        specified  by  the  Department, the business organization
 4        shall be required to pay to the State the full amount  of
 5        the  State  tax exemption that it received as a result of
 6        the High Impact Business designation.
 7             (4)  That if the business  organization  receives  a
 8        grant  pursuant to the Large Business Development Act and
 9        the business organization fails to create or  retain  the
10        requisite   number   of   jobs,   as  determined  by  the
11        Department, within the period of time  specified  by  the
12        Department,  the  business organization shall be required
13        to repay to the Department  a  pro  rata  amount  of  the
14        grant,  which  amount shall reflect the percentage of the
15        deficiency between the promised  number  of  jobs  to  be
16        created  or retained by the business organization and the
17        actual number of such jobs in existence as  of  the  date
18        the Department determines the business organization is in
19        breach   of  the  job  creation  or  retention  covenants
20        contained in the incentive agreement.
21        (d)  The Director may elect to waive enforcement  of  any
22    contractual  right  arising  out  of  the incentive agreement
23    required by this Act based on a finding that the waiver  will
24    promote  the  viability of the project, will contribute to an
25    increase in employment associated with the project,  or  will
26    contribute  to  the  retention of jobs in Illinois associated
27    with the project.

28        Section 15. Applicability. This Act applies to all  State
29    economic  assistance  given by the Department on or after the
30    effective date of this Act.

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

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