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92_SB0603gms
State of Illinois
OFFICE OF THE GOVERNOR
Springfield, Illinois 62706
George H. Ryan
GOVERNOR
July 12, 2001
To the Honorable Members of
The Illinois Senate
92nd General Assembly
Pursuant to Article IV, Section 9(b) of the Illinois
Constitution of 1970, I hereby veto Senate Bill 603 entitled
"AN ACT in relation to economic assistance."
Senate Bill 603 purports to create the new State Economic
Assistance Accountability Act. Senate Bill 603 defines state
economic assistance to include tax exemptions under the EDGE
Tax Credit Act, the Illinois Enterprise Zone Act, the High
Impact Business Program and also includes grants or loans
given to businesses under the Large Business Development Act,
but does not include assistance given for the purpose of job
training, road construction, local government assistance, or
federal funding.
Senate Bill 603 purports to provide all state economic
assistance provided by DCCA must be based on the terms of a
written incentive agreement between DCCA and the business
organization, which specifies jobs to be created or retained
within a certain amount of time.
This legislation proposes that if a business receives
state economic development assistance and the business later
fails to create or retain the agreed-to requisite number of
jobs within the specified period of time, the business
organization shall be required to refund to the State the
amount of tax credit, tax exemption, or grant received.
However, it also allows the Director of DCCA to waive
enforcement of the proposed Accountability Act if the waiver
will promote the viability of the project, will contribute to
an increase in employment associated with the project, or
will contribute to the retention of jobs in Illinois
associated with the project.
As Governor, I have made a priority of promoting economic
development throughout the State of Illinois. A hallmark of
these efforts is the creation of the EDGE tax credit, which
has led to the creation and retention of more than 12,600
jobs and has generated a total of $115 million in new state
and local taxes. The mission of the State's economic
development efforts often requires the State to provide
assistance where conventional resources are not available or
are fully extended. If enacted, SB 603 would require
businesses to guarantee their economic performance and not
reasonably consider the uncertain economic conditions that
businesses face every day.
Perhaps most importantly, the provisions of Senate Bill
603 are unnecessary as the Department of Commerce and
Community Affairs already requires the reimbursement of all
state assistance if the company fails to meet specified job
creation and/or retention goals. DCCA requires that all
businesses receiving state incentives sign a written grant
agreement that contains penalties if employers should fail to
create or retain the requisite numbers of jobs or
investments.
For these reasons, the proposed legislation is
unnecessary and I hereby veto and return Senate Bill 603.
Sincerely,
George H. Ryan
GOVERNOR