102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB4061

 

Introduced 4/6/2021, by Rep. Marcus C. Evans, Jr.

 

SYNOPSIS AS INTRODUCED:
 
New Act

    Creates the Business Supply Chain Transparency for Slavery, Trafficking, and Child Labor Act. Provides that every retail seller and manufacturer doing business in the State and having annual worldwide gross receipts that exceed $100,000,000 shall disclose its efforts to eradicate slavery, human trafficking, and child labor from its direct supply chain for tangible goods offered for sale. Provides requirements and process for disclosures. Provides that the Department of Revenue shall make available to the Attorney General a list of retail sellers and manufacturers required to disclose efforts to eradicate slavery, human trafficking, and child labor pursuant to the Act. Provides that the list shall be based on tax returns filed for taxable years beginning on or after January 1, 2021 and shall be submitted annually to the Attorney General by November 30, 2021, and each November 30 thereafter. Provides that the list shall be derived from original tax returns received by the Department on or before December 31, 2020, and each December 31 thereafter. Effective January 1, 2022.


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A BILL FOR

 

HB4061LRB102 17690 HLH 23622 b

1    AN ACT concerning business.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Short title. This Act may be cited as the
5Business Supply Chain Transparency for Slavery, Trafficking,
6and Child Labor Act.
 
7    Section 5. Findings. The General Assembly finds and
8declares that:
9        (1) Modern slavery, human trafficking, and child labor
10    are crimes under State, federal, and international law but
11    still continue to exist, including in the State of
12    Illinois.
13        (2) These crimes are often hidden from view and are
14    difficult to uncover and track.
15        (3) Legislative efforts to address the market for
16    goods and products tainted by slavery, trafficking, and
17    child labor have been lacking.
18        (4) As of September 20, 2018, the List of Goods
19    Produced by Child Labor or Forced Labor, published by the
20    United States Department of Labor, comprised 148 goods
21    from 76 countries.
22        (5) Consumers and businesses are inadvertently
23    promoting and sanctioning these crimes through the

 

 

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1    purchase of goods and products that have been tainted in
2    the supply chain.
3        (6) Absent publicly available disclosures, consumers
4    are at a disadvantage in being able force the eradication
5    of slavery and trafficking by way of the market and their
6    purchasing decisions.
7        (7) It is the policy of this State to ensure large
8    retailers and manufacturers provide consumers with
9    information regarding their efforts to eradicate slavery,
10    human trafficking, and child labor from their supply
11    chains, to educate consumers on how to purchase goods
12    produced by companies that responsibly manage their supply
13    chains, and, thereby, to improve the lives of victims of
14    slavery, human trafficking, and child labor.
 
15    Section 10. Definitions. As used in this Act:
16    "Child labor" means work that is mentally, physically,
17socially, or morally dangerous and harmful to children and
18interferes with their schooling by depriving them of the
19opportunity to attend school; obliging them to leave school
20prematurely; or requiring them to attempt to combine school
21with excessively long and hard work conditions.
22    "Doing business in this State" means actively engaging in
23any transaction for the purpose of financial or pecuniary gain
24or profit.
25    "Gross receipts" means the sum of money and the fair

 

 

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1market value of other property or services received on the
2sale or exchange of property, the performance of services, or
3the use of property or capital (including rents, royalties,
4interest, and dividends) in a transaction that produced
5business income, in which the income, gain, or loss is
6recognized (or would be recognized if the transaction were in
7the United States) under the Internal Revenue Code. Gross
8receipts does not include:
9        (1) Repayment.
10        (2) The principal amount received under a repurchase
11    agreement or other transaction properly characterized as a
12    loan.
13        (3) Proceeds from the issuance of the taxpayer's own
14    stock or from sale of treasury stock.
15        (4) Damages and other amounts received as a result of
16    litigation.
17        (5) Property acquired by an agent on behalf of
18    another.
19        (6) Tax refunds and other tax benefit recoveries.
20        (7) Pension reversions.
21        (8) Contributions to capital (except for the sale of
22    securities by a securities dealer).
23        (9) Income from the discharge of indebtedness.
24        (10) Amounts realized from exchanges of inventory that
25    are not recognized under the Internal Revenue Code.
26        (11) Amounts received from transactions in intangible

 

 

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1    assets held in connection with a treasury function of the
2    taxpayer's unitary business and the gross receipts and
3    overall net gains from the maturity, redemption, sale,
4    exchange, or other disposition of those intangible assets.
5        (12) Amounts received from hedging transactions
6    involving intangible assets.
7    "Hedging transaction" means a transaction related to the
8taxpayer's trading function involving futures and options
9transactions for the purpose of hedging price risk of the
10products or commodities consumer, produced, or sold by the
11taxpayer.
12    "Human trafficking" means a violation or attempted
13violation of subsection (d) of Section 10-9 of the Criminal
14Code of 2012.
15    "Manufacturer" means a business entity with manufacturing
16as its principal business activity.
17    "Retail seller" means a business entity with retail trade
18as its principal business activity.
19    "Slavery" means a violation or attempted violation of
20subsection (b) of Section 10-9 of the Criminal Code of 2012.
21    "Treasury function" means the pooling, management, and
22investment of intangible assets for the purpose of satisfying
23the cash flow needs of the taxpayer's trade or business, such
24as providing liquidity for a taxpayer's business cycle,
25providing a reserve for business contingencies, and business
26acquisitions, and also includes the use of futures contracts

 

 

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1and options contracts to hedge foreign currency fluctuations.
2A taxpayer principally engaged in the trade or business of
3purchasing and selling intangible assets of the type typically
4held in a taxpayer's treasury function, such as a registered
5broker-dealer, is not performing a treasury function with
6respect to income so produced.
 
7    Section 15. Retail and manufacturing.
8    (a) Every retail seller and manufacturer doing business in
9this State and having annual worldwide gross receipts that
10exceed $100,000,000 shall disclose its efforts to eradicate
11slavery, human trafficking, and child labor from its direct
12supply chain for tangible goods offered for sale.
13    (b) The disclosure shall be posted on the retail seller's
14or manufacturer's website with a conspicuous and easily
15understood link to the required information placed on the
16homepage of the business. If the retail seller or manufacturer
17does not have a website, the manufacturer shall provide the
18written disclosure within 30 days of receiving a written
19request for the disclosure from a consumer.
20    (c) The disclosure shall, at a minimum, disclose to what
21extent, if any, the retail seller or manufacturer does each of
22the following:
23        (1) Engages in the verification of product supply
24    chains to evaluate and address risks of slavery, human
25    trafficking, and child labor. The disclosure shall specify

 

 

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1    if the verification was not conducted by a third party.
2        (2) Conducts audits of suppliers to evaluate supplier
3    compliance with company standards for the elimination of
4    slavery, trafficking, and child labor in supply chains.
5    The disclosure shall specify if the audit was not an
6    independent, unannounced audit.
7        (3) Requires direct suppliers to certify that
8    materials incorporated into the product comply with the
9    laws regarding slavery and human trafficking of the
10    country or countries in which they are doing business.
11        (4) Maintains internal accountability standards and
12    procedures for employees or contractors failing to meet
13    company standards the elimination of regarding slavery,
14    human trafficking, and child labor.
15        (5) Provides company employees and management who have
16    direct responsibility for supply chain management training
17    on slavery, human trafficking, and child labor,
18    particularly with respect to mitigating risks within the
19    supply chains of products.
20    (d) The exclusive remedy for a violation of this Act shall
21be an action brought by the Attorney General for injunctive
22relief. Nothing in this Act shall limit remedies available for
23a violation of any other State or federal law.
 
24    Section 20. Companies subject to disclosure.
25    (a) Notwithstanding any provision of law, the Department

 

 

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1of Revenue shall make available to the Attorney General a list
2of retail sellers and manufacturers required to disclose
3efforts to eradicate slavery, human trafficking, and child
4labor pursuant to this Act.
5    (b) The list shall be based on tax returns filed for
6taxable years beginning on or after January 1, 2021.
7    (c) The list required by this Section shall be submitted
8annually to the Attorney General by November 30, 2021, and
9each November 30 thereafter. The list shall be derived from
10original tax returns received by the Department on or before
11December 31, 2020, and each December 31 thereafter.
12    (d) Each annual list required by this Section shall
13include the following information for each retail seller or
14manufacturer:
15        (1) entity name; and
16        (2) an Illinois tax identification number.
 
17    Section 99. Effective date. This Act takes effect January
181, 2022.