State of Illinois
92nd General Assembly

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[ Introduced ][ Engrossed ][ House Amendment 001 ]
[ House Amendment 003 ]




 1                    AMENDMENT TO HOUSE BILL 3364

 2        AMENDMENT NO.     .  Amend House Bill 3364,  AS  AMENDED,
 3    by replacing the title with the following:
 4        "AN ACT in relation to economic assistance."; 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    State Economic Assistance Accountability Act.

 9        Section 5. Definitions.  In this Act:
10        "Business organization" means a corporation, partnership,
11    limited  liability  company,  joint  venture, association, or
12    other enterprise that does business in this State.
13        "Department" means the Illinois  Department  of  Commerce
14    and Community Affairs.
15        "Director"  means  the Director of Commerce and Community
16    Affairs.
17        "Project"  means  any   specific   economic   development
18    activity   of   a   commercial,   industrial,  manufacturing,
19    agricultural, scientific, service,  or  other  business,  the
20    result  of which causes the creation or retention of jobs and
21    may include the purchase or lease of machinery and  equipment
                            -2-            LRB9207395SMdvam02
 1    or  the  lease  or  purchase  of  real  property or funds for
 2    infrastructure necessitated  by  site  preparation,  building
 3    construction, or related purposes.
 4        "State economic assistance" means (1) tax credits and tax
 5    exemptions  given  as an incentive to a business organization
 6    pursuant to  a  certification  or  designation  made  by  the
 7    Department  under  the  Economic  Development  for  a Growing
 8    Economy Tax Credit Act and the Illinois Enterprise Zone  Act,
 9    including the High Impact Business program; and (2) grants or
10    loans  given  as  an  incentive  to  a  business organization
11    pursuant to the Large Business Development Act. The term does
12    not include assistance (1)  given  for  the  purpose  of  job
13    training,  (2)  given for the purpose of road construction or
14    improvements if the road is open to the use  of  the  general
15    public, (3) provided to units of local government, or (4) for
16    which the funding source is federal.

17        Section  10.   Written  agreements containing performance
18    covenants and sanctions.
19        (a)  State economic assistance provided by the Department
20    as an incentive to a business organization must be  based  on
21    the  terms  of  a  written  incentive  agreement  between the
22    Department and the business organization.
23        (b)  The incentive agreement must identify  the  specific
24    State  economic  assistance  to  be  provided to the business
25    organization during the term of the agreement.
26        (c)  The incentive agreement must also  provide  for  the
27    following:
28             (1)  That the business organization is bound to make
29        a  specified level of capital investment in a project and
30        cause the creation or retention of a specified  level  of
31        jobs within a specified time period.
32             (2)  That  if the business organization either fails
33        to make the requisite level of capital investment in  the
                            -3-            LRB9207395SMdvam02
 1        project or fails to create or retain the specified number
 2        of  jobs  within  the  specified time frame, the business
 3        organization shall be deemed to no longer qualify for the
 4        State economic assistance.
 5             (3)  That  if  the  business  organization  receives
 6        State economic assistance in the form of  a  High  Impact
 7        Business  designation  pursuant  to  Section  5.5  of the
 8        Illinois Enterprise Zone Act and  the  business  receives
 9        the  benefit of the exemption authorized under Section 5l
10        of the Retailers' Occupation Tax Act  (for  the  sale  of
11        building   materials  incorporated  into  a  High  Impact
12        Business location) and the business organization fails to
13        create  or  retain  the  requisite  number  of  jobs,  as
14        determined by the Department, within the period  of  time
15        specified  by  the  Department, the business organization
16        shall be required to pay to the State the full amount  of
17        the  State  tax exemption that it received as a result of
18        the High Impact Business designation.
19             (4)  That if the business  organization  receives  a
20        grant  pursuant to the Large Business Development Act and
21        the business organization fails to create or  retain  the
22        requisite   number   of   jobs,   as  determined  by  the
23        Department, within the period of time  specified  by  the
24        Department,  the  business organization shall be required
25        to repay to the Department  a  pro  rata  amount  of  the
26        grant,  which  amount shall reflect the percentage of the
27        deficiency between the promised  number  of  jobs  to  be
28        created  or retained by the business organization and the
29        actual number of such jobs in existence as  of  the  date
30        the Department determines the business organization is in
31        breach   of  the  job  creation  or  retention  covenants
32        contained in the incentive agreement.
33        (d)  The Director may elect to waive enforcement  of  any
34    contractual  right  arising  out  of  the incentive agreement
                            -4-            LRB9207395SMdvam02
 1    required by this Act based on a finding that the waiver  will
 2    promote  the  viability of the project, will contribute to an
 3    increase in employment associated with the project,  or  will
 4    contribute  to  the  retention of jobs in Illinois associated
 5    with the project.

 6        Section 15. Applicability. This Act applies to all  State
 7    economic  assistance  given by the Department on or after the
 8    effective date of this Act.

 9        Section 99. Effective date. This Act  takes  effect  upon
10    becoming law.".

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