Illinois General Assembly - Full Text of HB5543
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Full Text of HB5543  102nd General Assembly


Rep. Edgar Gonzalez, Jr.

Filed: 3/1/2022





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2    AMENDMENT NO. ______. Amend House Bill 5543 by replacing
3everything after the enacting clause with the following:
4    "Section 5. The Department of Commerce and Economic
5Opportunity Law of the Civil Administrative Code of Illinois
6is amended by adding Section 605-1095 as follows:
7    (20 ILCS 605/605-1095 new)
8    Sec. 605-1095. Good corporate citizen requirement for tax
9incentive recipients.
10    (a) As used in this Section:
11    "Business" means an applicant for or recipient of
12development assistance.
13    "Corporate parent or affiliate" means: (i) a related
14member with respect to a business; or (ii) an entity that
15exercises control over the business and whose interests are
16served by the business.



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1    "Development assistance" means tax credits and tax
2exemptions given as an incentive to a business organization
3pursuant to an agreement with the Department or an initial
4certification or designation issued by the Department. This
5term does not include any Department-administered tax credit
6program that provides a tax credit to an investor in a
8    "Development assistance agreement" means: (i) any
9agreement or memorandum of understanding that is executed by
10the State and the business organization participating in the
11development assistance program and that sets forth the terms
12and conditions of development assistance to be provided to the
13recipient consistent with the final application for
14development assistance, including, but not limited to, the
15date of assistance, and that is submitted to and approved by
16the Department; and (ii) any application for certification or
17designation that sets forth the terms and conditions of
18development assistance to be provided to the recipient and
19that is approved by the Department.
20    "Good corporate citizen" means a business that
21demonstrates a capacity for legal compliance.
22    "Good corporate citizen requirements" means any
23development assistance agreement requirements that are
24developed by the Department under this Section or by
25administrative rule.
26    "Related member" has the same meaning as set forth in



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1Section 5-5 of the Economic Development for a Growing Economy
2Tax Credit Act.
3    (b) The Department may require a business, as a condition
4of receiving development assistance, to agree to certain terms
5as necessary to ensure that the business and its related
6members are good corporate citizens. A business that cannot
7consent to any required terms shall be ineligible for the
8development assistance. Such terms may include, but need not
9be limited to, covenants, representations, and warranties
11        (1) the business, its corporate officers, and its
12    corporate parent or affiliates are not or have not been
13    the subject of any criminal charges within 5 years prior
14    to the application for development assistance or during
15    the term of a development assistance agreement;
16        (2) there have been no criminal, civil, or
17    administrative charges, complaints, or other actions
18    brought by the State of Illinois or any governmental body
19    against the business, its corporate officers, or its
20    corporate parent or affiliates concerning alleged fraud or
21    activity that poses a substantial threat or persistent
22    nuisance to public health, safety, or welfare;
23        (3) the business and its corporate parent or
24    affiliates are not delinquent in the payment of any taxes
25    to the State of Illinois or are not on the Illinois Stop
26    Payment List or a debarred or suspended parties list



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1    maintained by the State of Illinois or the United States;
2    and
3        (4) the business and its corporate parent or
4    affiliates operating within Illinois will comply with the
5    requirements of all applicable laws governing the project
6    supported by the development assistance, the Illinois
7    Human Rights Act, the Illinois Prevailing Wage Act, the
8    Wage Payment and Collection Act, the Consumer Fraud and
9    Deceptive Business Practices Act, the Right to Privacy in
10    the Workplace Act, and the federal National Labor
11    Relations Act.
12    (c) Compliance with good corporate citizen requirements
13must be maintained throughout the term of each development
14assistance agreement. The Department may suspend development
15assistance for noncompliance with good corporate citizen
16requirements and may seek revocation of any credits or
17exemptions that were earned or used during a time when the
18business or its corporate parent or affiliates were not in
19compliance with those requirements.
20    A business whose development assistance is suspended due
21to the initiation of a proceeding as described in paragraphs
22(1) or (2) of subsection (b) may be issued certificates of
23verification or exemption in suspended status, and such
24credits or exemptions shall not be claimed unless the
25proceeding concludes without any finding of wrongdoing or
26liability by the business, its corporate officers, or its



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1corporate parent or affiliates and without a settlement
2agreement by the business, its corporate officers, or its
3corporate parent or affiliates in excess of $5,000,000.
4Credits or exemptions issued in suspended status shall remain
5subject to statutory time limits on their use.
6    (d) The Department shall adopt rules setting forth any
7other programmatic terms and conditions and the consequences
8for noncompliance during the term of a development assistance
9agreement. The Department may adopt rules providing for
10exceptions to the good corporate citizen requirements if an
11application would, in the determination of the Department,
12cause an imminent and demonstrable hardship to the people of
13Illinois or to the business's workforce. If an exception is
14granted, the business must agree to a contractual modification
15identifying the exception and the basis for granting it.".