Bill Status of HB0235  103rd General Assembly

Short Description:  ECON ASSISTANCE ACCOUNTABILITY

House Sponsors
Rep. Jack D. Franks - Donald L. Moffitt - George Scully, Jr. - Kenneth Dunkin - Wyvetter H. Younge, Harry Osterman, Constance A. Howard, Patricia Bailey, Linda Chapa LaVia, Sara Feigenholtz, Robert F. Flider, Mary E. Flowers, John A. Fritchey, Cynthia Soto, Robert Rita, Larry McKeon, Gary Hannig, Brandon W. Phelps, Michael K. Smith, Patrick Verschoore, Eddie Washington, Karen A. Yarbrough, Thomas Holbrook, Lovana Jones, Kevin Joyce, Robin Kelly, Joseph M. Lyons, Jack McGuire, Mary K. O'Brien, Maria Antonia Berrios, Mike Boland, Richard T. Bradley, Annazette Collins, Steve Davis, William Delgado, Gary Forby, Monique D. Davis, William Davis and Ricca Slone

Senate Sponsors
(Sen. James F. Clayborne, Jr. - Donne E. Trotter - Barack Obama - Don Harmon - Martin A. Sandoval, James T. Meeks, William R. Haine, Dale E. Risinger, M. Maggie Crotty, Jacqueline Y. Collins, Terry Link, Carol Ronen, Susan Garrett and Edward D. Maloney)

Last Action
DateChamber Action
  8/20/2003HousePublic Act . . . . . . . . . 93-0552

Statutes Amended In Order of Appearance
New Act


Synopsis As Introduced
Creates the State Economic Assistance Accountability Act. Provides that State economic assistance provided by the Department of Commerce and Community Affairs as an incentive to a business organization must be based on the terms of a written incentive agreement between the Department and the business organization, which agreement must identify the specific State economic assistance to be provided to the business organization during the term of the agreement. Lists terms the agreement must contain. Provides that State economic assistance incentive agreements must provide that if a business organization either fails to make the requisite level of capital investment in the project or fails to create or retain the specified number of jobs within the specified time frame, as provided under the Act authorizing the State economic assistance, the business organization shall be deemed to no longer qualify for the State economic assistance. Provides that State economic assistance must total at least $75,000 on a single project for applicability. Provides that the full content of all written incentive agreements are to be published on the Illinois Department of Commerce and Community Affairs website. Effective immediately.

 Fiscal Note (Dept of Commerce and Community Affairs)
 House Bill 235 is estimated to have no significant fiscal impact on the Department.

House Committee Amendment No. 1
Deletes everything. Creates the Corporate Accountability for Tax Expenditures Act. Provides that the Department of Revenue shall submit an annual Unified Economic Development Budget to the General Assembly no later than 3 months after the end of the State's fiscal year and the report shall present all types of development assistance for economic development during the prior fiscal year. Provides that the Department of Revenue shall promulgate a standardized disclosure registry for use by all property-taxing entities and that every property-taxing entity in the State shall employ this standardized registry to report to the State Department of Revenue all property tax reductions or abatements that had effect during the previous calendar year. Provides that the Department of Commerce and Community Affairs shall promulgate a standardized application form for on-budget development assistance for use by all granting bodies. Requires each granting agency to submit a progress report to the Department of Commerce and Community Affairs concerning certain development assistance applications. Provides that, in considering development assistance applications, all granting bodies shall analyze the projected wages and benefits. Provides that recipients are required to achieve their job creation and wage and benefit goals within 2 years after the date of assistance and, if a recipient defaults on development assistance, it must pay back to the granting body that fraction of the development assistance that accrued to its benefit for the calendar year in which the default occurred. Effective immediately.

 State Debt Impact Note (H-AM 1) (Economic and Fiscal Commission)
 HB 235, as amended by House Amendment 1, would not change the amount of authorization for any type of State-issued or State-supported bond, and therefore, would not affect the level of State indebtedness.

 Home Rule Note (H-AM 1) (Dept of Commerce and Community Affairs)
 In the opinion of DCCA, HB 235, as amended by HA #1, does not pre-empt the home rule powers of municipalities or Cook County. However, these local governments would be negatively impacted should they fail to comply with the provisions of this legislation. The bill specifies that a local government not in compliance with its provisions would forfeit any development assistance otherwise available from the State.

 Fiscal Note (H-AM 1) (Dept of Commerce and Community Affairs)
 The fiscal impact of House Bill 235 with House Amendment 1 is estimated to be at least $1 million annually for 12 additional staff and associated costs. The cost estimate could be higher depending upon the number of granting bodies that fail to comply with the requirements of this legislation. This estimate does not consider the significant fiscal impact this legislation is expected to have on the Department of Revenue, other state agencies, local governments, or other public bodies as defined in this legislation.

 State Mandates Fiscal Note (H-AM 1) (Dept of Commerce and Community Affairs)
 House Bill 235 (HA #1) creates a service mandate for which reimbursement of 50%-100% of the increased costs to units of local government is required under the State Mandates Act. An estimate of the increased costs to local governments is not available at this time, but a municipality of 100,000 estimates their annual increased cost would be a minimum of $60,000.

House Floor Amendment No. 2
Deletes everything after the enacting clause. Creates the Corporate Accountability for Tax Expenditures Act. Defines "development assistance" as (1) tax credits and tax exemptions (other than given under tax increment financing) given under the Economic Development for a Growing Economy Tax Credit Act and the Illinois Enterprise Zone Act, (2) grants or loans given pursuant to the Large Business Development Program, the Business Development Public Infrastructure Program, or the Industrial Training Program, (3) the State Treasurer's Economic Program Loans, (4) the Illinois Department of Transportation Economic Development Program, and (5) all successor and subsequent programs and tax credits designed to promote large business relocations and expansions, but not including tax increment financing, participation loans, certain financial transactions in support of small business loans and investments, or assistance given in connection with the development of affordable housing. Requires the Department of Revenue to submit an annual Unified Economic Development Budget to the General Assembly no later than 3 months after the end of the State's fiscal year, beginning in 2005, presenting all types of development assistance for economic development during the fiscal year. Requires standardized applications for development assistance, requires State granting bodies to submit to the Department of Commerce and Community Affairs certain information concerning projects approved for development assistance, and requires the Department to publish the data received. Authorizes the recapture by the State of development assistance provided if a grantee does not meet the requirements of an agreement. Effective immediately.

 Pension Note (H-AM2) (Pension Laws Commission)
 No fiscal impact on any public pension fund or retirement system.

 Balanced Budget Note (H-AM2) (Bureau of the Budget)
 Since this house bill is not a supplemental appropriation bill, it is not possible to complete this note as requested.

 Land Conveyance Appraisal Note (H-AM2) (Department of Transportation)
 As there are no parcels of land being conveyed in this bill, there are no appraisals to be filled by the Dept. of Transportation.

 Judicial Note (H-AM2) (Admin Office of the Illinois Courts)
 This bill would neither increase or decrease the number of judges needed in the state.

 Home Rule Note (H-AM 2) (Dept of Commerce and Community Affairs)
 HB 235 (HA #2) pertains to the powers and duties of DCCA, the Department of Revenue, and other State department or agencies that provide development assistance to businesses. The legislation does not contain language indicating a pre-emption of home rule powers and functions. Therefore, in the opinion of DCCA, HB 235 (HA #2) does not pre-empt home rule authority.

 State Mandates Fiscal Note (H-AM 2) (Dept of Commerce and Community Affairs)
 HB 235 (HA #2) pertains to the powers and duties of DCCA, the Department of Revenue, and other State department or agencies that provide development assistance to businesses. The legislation does not impose requirements on units of local government. Therefore, in the opinion of DCCA, HB 235 (HA #2) does not create a State Mandate under the State Mandates Act.

 Fiscal Note (H-AM 2) (Dept of Commerce and Community Affairs)
 The fiscal impact of House Bill 235 with House Amendment 2 on the Department of Commerce and Community Affairs is estimated to be at least $167,000 for two staff and associated information technology costs. All costs can be absorbed within the department's current budget.

 State Debt Impact Note (H-AM 2) (Economic and Fiscal Commission)
 HB 235, as amended by House Amendment 2, would not change the amount of authorization for any type of State-issued or State-supported bond, and, therefore, would not affect the level of State indebtedness.

 Housing Affordability Impact Note (H-AM2) (Housing Development Authority)
 No fiscal effect on a single-family residence.

Senate Committee Amendment No. 1
Deletes everything after the enacting clause. Reinserts the provisions of the bill as engrossed with changes as follows. Defines "development assistance agreement" as any agreement executed by the State granting body and the recipient setting forth the terms and conditions of development assistance to be provided to the recipient consistent with the final application for development assistance submitted to and approved by the State granting body. Removes the definition for "permanent job". Makes changes concerning applications for assistance, State development assistance disclosure, and recapture provisions. Makes other changes.

 State Debt Impact Note (H-AM 2) (Economic and Fiscal Commission)
 HB 235, as amended by House Amendment 2, would not change the amount of authorization for any type of State-issued or State-supported bond, and, therefore, would not affect the level of State indebtedness.

Senate Floor Amendment No. 3
Replaces the term "State on-budget development assistance" with "State development assistance". In provisions setting forth the required contents of an application for development assistance, provides that one of the items that must be included is a narrative, if necessary, describing why the development assistance is needed and how the applicant's use of the development assistance may reduce employment at any site in Illinois (underlying amendment reads "reduce unemployment"). Provides that the Department of Commerce and Community Affairs is authorized to modify State development assistance application forms and the requirements for the progress reports that must be submitted by those receiving State development assistance with respect to grants under the Industrial Training Program that are not given as an incentive to a recipient business organization. Removes an incorrect cross-reference.

Actions 
DateChamber Action
  1/23/2003HouseFiled with the Clerk by Rep. Jack D. Franks
  1/23/2003HouseFirst Reading
  1/23/2003HouseReferred to Rules Committee
  1/29/2003HouseAssigned to Commerce and Business Development Committee
  2/5/2003HouseFiscal Note Filed
  2/6/2003HouseAdded Co-Sponsor Rep. Kenneth Dunkin
  2/19/2003HouseAdded Chief Co-Sponsor Rep. Donald L. Moffitt
  2/19/2003HouseAdded Chief Co-Sponsor Rep. George Scully, Jr.
  2/19/2003HouseAdded Chief Co-Sponsor Rep. Kenneth Dunkin
  2/19/2003HouseAdded Chief Co-Sponsor Rep. Wyvetter H. Younge
  2/19/2003HouseAdded Co-Sponsor Rep. Harry Osterman
  2/19/2003HouseAdded Co-Sponsor Rep. Constance A. Howard
  2/19/2003HouseAdded Co-Sponsor Rep. Patricia Bailey
  2/19/2003HouseAdded Co-Sponsor Rep. Linda Chapa LaVia
  2/20/2003HouseAdded Co-Sponsor Rep. Sara Feigenholtz
  2/20/2003HouseAdded Co-Sponsor Rep. Robert F. Flider
  2/20/2003HouseAdded Co-Sponsor Rep. Mary E. Flowers
  2/20/2003HouseAdded Co-Sponsor Rep. John A. Fritchey
  2/20/2003HouseAdded Co-Sponsor Rep. Cynthia Soto
  2/21/2003HouseHouse Committee Amendment No. 1 Filed with Clerk by Commerce and Business Development Committee
  2/21/2003HouseHouse Committee Amendment No. 1 Adopted in Commerce and Business Development Committee; 011-007-000
  2/21/2003HouseDo Pass as Amended / Short Debate Commerce and Business Development Committee; 011-007-000
  2/21/2003HousePlaced on Calendar 2nd Reading - Short Debate
  2/24/2003HouseState Debt Impact Note Filed as amended
  2/25/2003HouseFiscal Note Requested by Rep. William B. Black; as amended
  2/25/2003HouseState Mandates Fiscal Note Requested by Rep. William B. Black; as amended
  2/27/2003HouseAdded Co-Sponsor Rep. Robert Rita
  2/28/2003HouseAdded Co-Sponsor Rep. Larry McKeon
  3/4/2003HouseAdded Co-Sponsor Rep. Gary Hannig
  3/6/2003HouseHome Rule Note Filed as amended by House Amendment No. 1
  3/6/2003HouseFiscal Note Filed as amended by House Amendment No. 1
  3/6/2003HouseState Mandates Fiscal Note Filed as amended by House Amendment No. 1
  3/12/2003HouseAdded Co-Sponsor Rep. Sandra M. Pihos
  4/2/2003HouseHouse Floor Amendment No. 2 Filed with Clerk by Rep. Jack D. Franks
  4/2/2003HouseHouse Floor Amendment No. 2 Referred to Rules Committee
  4/2/2003HouseAdded Co-Sponsor Rep. Brandon W. Phelps
  4/2/2003HouseAdded Co-Sponsor Rep. Michael K. Smith
  4/2/2003HouseAdded Co-Sponsor Rep. Patrick Verschoore
  4/2/2003HouseAdded Co-Sponsor Rep. Eddie Washington
  4/2/2003HouseAdded Co-Sponsor Rep. Karen A. Yarbrough
  4/2/2003HouseAdded Co-Sponsor Rep. Thomas Holbrook
  4/2/2003HouseAdded Co-Sponsor Rep. Lovana Jones
  4/2/2003HouseAdded Co-Sponsor Rep. Kevin Joyce
  4/2/2003HouseAdded Co-Sponsor Rep. Robin Kelly
  4/2/2003HouseAdded Co-Sponsor Rep. Joseph M. Lyons
  4/2/2003HouseAdded Co-Sponsor Rep. Jack McGuire
  4/2/2003HouseAdded Co-Sponsor Rep. Mary K. O'Brien
  4/2/2003HouseAdded Co-Sponsor Rep. Maria Antonia Berrios
  4/2/2003HouseAdded Co-Sponsor Rep. Mike Boland
  4/2/2003HouseAdded Co-Sponsor Rep. Richard T. Bradley
  4/2/2003HouseAdded Co-Sponsor Rep. Annazette Collins
  4/2/2003HouseAdded Co-Sponsor Rep. Steve Davis
  4/2/2003HouseAdded Co-Sponsor Rep. William Delgado
  4/2/2003HouseAdded Co-Sponsor Rep. Gary Forby
  4/2/2003HouseAdded Co-Sponsor Rep. Monique D. Davis
  4/2/2003HouseAdded Co-Sponsor Rep. William Davis
  4/2/2003HouseSecond Reading - Short Debate
  4/2/2003HouseHeld on Calendar Order of Second Reading - Short Debate
  4/3/2003HouseHouse Floor Amendment No. 2 Recommends Be Adopted Rules Committee; 003-002-000
  4/3/2003HouseFiscal Note Requested by Rep. Jack D. Franks; Rep. Bill Black as amended by HA No. 2
  4/3/2003HouseState Mandates Fiscal Note Requested by Rep. Jack D. Franks; Rep. Bill Black as amended by HA No. 2
  4/3/2003HouseBalanced Budget Note Requested by Rep. Jack D. Franks; as amended by HA No. 2
  4/3/2003HouseCorrectional Note Requested by Rep. Jack D. Franks; as amended by HA No. 2
  4/3/2003HouseHome Rule Note Requested by Rep. Jack D. Franks; as amended by HA No. 2
  4/3/2003HouseHousing Affordability Impact Note Requested by Rep. Jack D. Franks; as amended by HA No. 2
  4/3/2003HouseJudicial Note Requested by Rep. Jack D. Franks; as amended by HA No. 2
  4/3/2003HouseLand Conveyance Appraisal Note Requested by Rep. Jack D. Franks; as amended by HA No. 2
  4/3/2003HousePension Note Requested by Rep. Jack D. Franks; as amended by HA No. 2
  4/3/2003HouseState Debt Impact Note Requested by Rep. Jack D. Franks; as amended by HA No. 2
  4/3/2003HouseSecond Reading - Short Debate
  4/3/2003HouseHouse Floor Amendment No. 2 Adopted by Voice Vote
  4/3/2003HouseHeld on Calendar Order of Second Reading - Short Debate
  4/3/2003HouseHome Rule Note Requested by Rep. William B. Black; as amended by by HA No. 2
  4/3/2003HousePension Note Filed as amended by HA No. 2
  4/3/2003HouseBalanced Budget Note Filed as amended by HA No. 2
  4/3/2003HouseLand Conveyance Appraisal Note Filed as amended by HA No. 2
  4/3/2003HouseJudicial Note Filed as amended by HA No. 2
  4/3/2003HouseHome Rule Note Filed as amended by HA No. 2
  4/3/2003HouseState Mandates Fiscal Note Filed as amended by HA No. 2
  4/3/2003HouseFiscal Note Filed as amended by HA No. 2
  4/3/2003HouseState Debt Impact Note Filed as amended by HA No. 2
  4/3/2003HouseHousing Affordability Impact Note Filed as amended by HA No. 2
  4/3/2003HousePlaced on Calendar Order of 3rd Reading - Short Debate
  4/3/2003HouseMotion Filed to Suspend Rule 25 Rep. Jack D. Franks
  4/3/2003HouseMotion to Suspend Rule 25 - Prevailed
  4/4/2003HouseThird Reading - Short Debate - Passed 062-040-016
  4/8/2003SenateArrive in Senate
  4/8/2003SenatePlaced on Calendar Order of First Reading April 9, 2003
  4/8/2003SenateChief Senate Sponsor Sen. James F. Clayborne, Jr.
  4/9/2003SenateFirst Reading
  4/9/2003SenateReferred to Rules
  4/16/2003SenateAssigned to Labor & Commerce
  4/29/2003SenateSenate Committee Amendment No. 1 Filed with Secretary by Sen. James F. Clayborne, Jr.
  4/29/2003SenateSenate Committee Amendment No. 1 Referred to Rules
  4/29/2003SenateSenate Committee Amendment No. 1 Rules Refers to Labor & Commerce
  4/29/2003SenateState Debt Impact Note Filed as Amended by House Floor Amendment No. 2 from the Illinois Economic and Fiscal Commission.
  5/1/2003SenateSenate Committee Amendment No. 1 Adopted
  5/1/2003SenateDo Pass as Amended Labor & Commerce; 006-001-000
  5/1/2003SenatePlaced on Calendar Order of 2nd Reading May 6, 2003
  5/7/2003SenateAdded as Alternate Co-Sponsor Sen. James T. Meeks
  5/7/2003SenateAdded as Alternate Co-Sponsor Sen. William R. Haine
  5/8/2003SenateSecond Reading
  5/8/2003SenatePlaced on Calendar Order of 3rd Reading May 9, 2003
  5/12/2003SenateSenate Floor Amendment No. 2 Filed with Secretary by Sen. James F. Clayborne, Jr.
  5/12/2003SenateSenate Floor Amendment No. 2 Referred to Rules
  5/13/2003SenateSenate Floor Amendment No. 2 Rules Refers to Labor & Commerce
  5/14/2003SenateSenate Floor Amendment No. 3 Filed with Secretary by Sen. James F. Clayborne, Jr.
  5/14/2003SenateSenate Floor Amendment No. 3 Referred to Rules
  5/14/2003SenateSenate Floor Amendment No. 3 Rules Refers to Labor & Commerce
  5/14/2003SenateSenate Floor Amendment No. 2 Tabled in Labor & Commerce
  5/14/2003SenateSenate Floor Amendment No. 3 Be Adopted Labor & Commerce; 006-000-000
  5/15/2003SenateRecalled to Second Reading
  5/15/2003SenateSenate Floor Amendment No. 3 Adopted; Clayborne
  5/15/2003SenatePlaced on Calendar Order of 3rd Reading May 16, 2003
  5/16/2003SenateThird Reading Deadline Extended - Rule 2-10, to December 31, 2003.
  5/28/2003SenateAdded as Alternate Chief Co-Sponsor Sen. Donne E. Trotter
  5/28/2003SenateAdded as Alternate Chief Co-Sponsor Sen. Barack Obama
  5/28/2003SenateAdded as Alternate Chief Co-Sponsor Sen. Don Harmon
  5/28/2003SenateAdded as Alternate Chief Co-Sponsor Sen. Martin A. Sandoval
  5/28/2003SenateAdded as Alternate Co-Sponsor Sen. Dale E. Risinger
  5/28/2003SenateAdded as Alternate Co-Sponsor Sen. M. Maggie Crotty
  5/28/2003SenateAdded as Alternate Co-Sponsor Sen. Jacqueline Y. Collins
  5/28/2003SenateAdded as Alternate Co-Sponsor Sen. Terry Link
  5/28/2003SenateAdded as Alternate Co-Sponsor Sen. Carol Ronen
  5/28/2003SenateAdded as Alternate Co-Sponsor Sen. Susan Garrett
  5/28/2003SenateAdded as Alternate Co-Sponsor Sen. Edward D. Maloney
  5/28/2003SenateThird Reading - Passed; 037-021-000
  5/28/2003HouseArrived in House
  5/28/2003HousePlaced on Calendar Order of Concurrence Senate Amendment(s) 1 and 3
  5/28/2003HouseSenate Committee Amendment No. 1 Motion Filed Concur Rep. Jack D. Franks; Motion #1
  5/28/2003HouseSenate Floor Amendment No. 3 Motion Filed Concur Rep. Jack D. Franks; Motion #1
  5/28/2003HouseSenate Committee Amendment No. 1 Motion to Concur Referred to Rules Committee
  5/28/2003HouseSenate Floor Amendment No. 3 Motion to Concur Referred to Rules Committee
  5/28/2003HouseFinal Action Deadline Extended-9(b) May 31, 2003
  5/29/2003HouseSenate Committee Amendment No. 1 Motion to Concur Rules Referred to State Government Administration Committee
  5/29/2003HouseSenate Floor Amendment No. 3 Motion to Concur Rules Referred to State Government Administration Committee
  5/29/2003HouseSenate Committee Amendment No. 1 Motion to Concur Recommends be Adopted State Government Administration Committee; 011-000-000
  5/29/2003HouseSenate Floor Amendment No. 3 Motion to Concur Recommends be Adopted State Government Administration Committee; 011-000-000
  5/29/2003HouseAdded Co-Sponsor Rep. Ricca Slone
  5/29/2003HouseSenate Committee Amendment No. 1 House Concurs 089-027-000
  5/29/2003HouseSenate Floor Amendment No. 3 House Concurs 089-027-000
  5/29/2003HousePassed Both Houses
  6/27/2003HouseSent to the Governor
  8/20/2003HouseGovernor Approved
  8/20/2003HouseEffective Date August 20, 2003
  8/20/2003HousePublic Act . . . . . . . . . 93-0552