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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.