093_HB3478

 
                                     LRB093 11136 MKM 11947 b

 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. Definition.  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        "Project"  means  any   specific   economic   development
13    activity   of   a   commercial,   industrial,  manufacturing,
14    agricultural, scientific, service,  or  other  business,  the
15    result of which causes the creation or retention of jobs, and
16    may include the purchase or lease of machinery and equipment,
17    the   lease  or  purchase  of  real  property  or  funds  for
18    infrastructure necessitated  by  site  preparation,  building
19    construction, or related purposes.
20        "State  economic  assistance"  means: (1) tax credits and
21    tax  exemptions  given  as  an  incentive   to   a   business
22    organization  pursuant to a certification or designation made
23    by the  Department  under  the  Economic  Development  for  a
24    Growing  Economy  Tax  Credit Act and the Illinois Enterprise
25    Zone Act, including the High Impact Business program; and (2)
26    grants  or  loans  given  as  an  incentive  to  a   business
27    organization  pursuant  to the Large Business Development Act
28    (Article 10 of the Build Illinois Act).  The  term  does  not
29    include assistance (i) given for the purpose of job training,
30    (ii)  for  the  purpose of road construction or improvements,
31    (iii) provided to units of  local  government,  or  (iv)  for
 
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 1    which the funding source is federal.
 2        "Director"  means  the Director of Commerce and Community
 3    Affairs.

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

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

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