093_HB0235

 
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 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
 
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 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, paying not less than specified wages for  the  jobs
19        created, within a specified time period.
20             (2)  That  if the business organization either fails
21        to make the requisite level of capital investment in  the
22        project or fails to create or retain the specified number
23        of  jobs  within  the  specified  time frame, as provided
24        under the Act authorizing the State economic  assistance,
25        the  business  organization  shall be deemed to no longer
26        qualify for the State economic assistance.
27             (3)  That  if  the  business  organization  receives
28        State economic assistance in the form of  a  High  Impact
29        Business  designation  pursuant  to  Section  5.5  of the
30        Illinois Enterprise Zone Act and  the  business  receives
31        the  benefit of the exemption authorized under Section 5l
32        of the Retailers' Occupation Tax Act  (for  the  sale  of
33        building   materials  incorporated  into  a  High  Impact
 
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 1        Business location) and the business organization fails to
 2        create  or  retain  the  requisite  number  of  jobs,  as
 3        determined by the Department, within the period  of  time
 4        specified  by  the  Department, the business organization
 5        shall be required to pay to the State the full amount  of
 6        the  State  tax exemption that it received as a result of
 7        the High Impact Business designation.
 8             (4)  That if the business  organization  receives  a
 9        grant  pursuant to the Large Business Development Act and
10        the business organization fails to create or  retain  the
11        requisite   number   of   jobs,   as  determined  by  the
12        Department, within the period of time  specified  by  the
13        Department,  the  business organization shall be required
14        to repay to the Department  a  pro  rata  amount  of  the
15        grant,  which  amount shall reflect the percentage of the
16        deficiency between the promised  number  of  jobs  to  be
17        created  or retained by the business organization and the
18        actual number of such jobs in existence as  of  the  date
19        the Department determines the business organization is in
20        breach   of  the  job  creation  or  retention  covenants
21        contained in the 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.  As  a  precondition  for  any  waiver  of
29    enforcement  of  a  written  incentive  agreement, a business
30    organization benefitted by such a waiver  shall  provide  the
31    Director  with  a  written  reason  or reasons why the waiver
32    should apply.

33        Section 15.  Publication.  The Department  shall  publish
 
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 1    the  full  content of all written incentive agreements on its
 2    public Internet website.

 3        Section 20. Applicability. This Act applies only to State
 4    economic assistance, totalling at least $75,000 on  a  single
 5    project,  given  by  the Department on or after the effective
 6    date of this Act.

 7        Section 99. Effective date. This Act  takes  effect  upon
 8    becoming law.