Bill Text: IL HB2486 | 2021-2022 | 102nd General Assembly | Introduced

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Bill Title: Amends the Illinois Enterprise Zone Act. Provides that priority in the use of industrial development bonds issued by the Illinois Finance Authority shall be given to small businesses that manufacture medical provisions, process food, or produce goods and services identified under a disaster proclamation or executive order issued by the Governor. Provides that specified businesses that produce medical provisions, food infrastructure, or important and essential supplies shall not be subject to any statutory and regulatory restrictions from the State of Illinois if those restrictions are more stringent than those required by federal law. Provides further requirements concerning this exemption. Provides for a preference in the awarding of State contracts to small businesses that produce medical provisions, food infrastructure, or important and essential supplies. Requires the Department of Public Health to identify drug and hospital supplies that are critical to preserving and protecting the health and safety of Illinois residents, and provide notice of potential supply disruption. Creates the Illinois Known Drug Safety and Efficacy Opportunity Board and the Illinois Food Processing and Distribution Board for specified purposes and duties. Defines terms. Effective immediately.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2021-03-27 - Rule 19(a) / Re-referred to Rules Committee [HB2486 Detail]

Download: Illinois-2021-HB2486-Introduced.html

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102ND GENERAL ASSEMBLY State of Illinois 2021 and 2022 HB2486 Introduced , by Rep. Deanne M. Mazzochi SYNOPSIS AS INTRODUCED:
20 ILCS 655/3 from Ch. 67 1/2, par. 603
20 ILCS 655/7 from Ch. 67 1/2, par. 611
20 ILCS 655/14 new
Amends the Illinois Enterprise Zone Act. Provides that priority in the use of industrial development bonds issued by the Illinois Finance Authority shall be given to small businesses that manufacture medical provisions, process food, or produce goods and services identified under a disaster proclamation or executive order issued by the Governor. Provides that specified businesses that produce medical provisions, food infrastructure, or important and essential supplies shall not be subject to any statutory and regulatory restrictions from the State of Illinois if those restrictions are more stringent than those required by federal law. Provides further requirements concerning this exemption. Provides for a preference in the awarding of State contracts to small businesses that produce medical provisions, food infrastructure, or important and essential supplies. Requires the Department of Public Health to identify drug and hospital supplies that are critical to preserving and protecting the health and safety of Illinois residents, and provide notice of potential supply disruption. Creates the Illinois Known Drug Safety and Efficacy Opportunity Board and the Illinois Food Processing and Distribution Board for specified purposes and duties. Defines terms. Effective immediately.
LRB102 13209 RJF 18553 b
FISCAL NOTE ACT MAY APPLY
A BILL FOR
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AN ACT concerning State government.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 1. This Act may be referred to as the Amplifying
Medical Provisions, Lifting Infrastructure for Food, Important
and Essential Supplies (AMPLIFIES) Act.
Section 5. The Illinois Enterprise Zone Act is amended by
changing Sections 3 and 7 and by adding Section 14 as follows:
(20 ILCS 655/3) (from Ch. 67 1/2, par. 603)
Sec. 3. Definitions. As used in this Act, the following
words shall have the meanings ascribed to them, unless the
context otherwise requires:
(a) "Department" means the Department of Commerce and
Economic Opportunity.
(b) "Enterprise Zone" means an area of the State certified
by the Department as an Enterprise Zone pursuant to this Act.
(c) "Depressed Area" means an area in which pervasive
poverty, unemployment and economic distress exist.
(d) "Designated Zone Organization" means an association or
entity: (1) the members of which are substantially all
residents of the Enterprise Zone; (2) the board of directors
of which is elected by the members of the organization; (3)

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which satisfies the criteria set forth in Section 501(c) (3)
or 501(c) (4) of the Internal Revenue Code; and (4) which
exists primarily for the purpose of performing within such
area or zone for the benefit of the residents and businesses
thereof any of the functions set forth in Section 8 of this
Act.
(e) "Agency" means each officer, board, commission and
agency created by the Constitution, in the executive branch of
State government, other than the State Board of Elections;
each officer, department, board, commission, agency,
institution, authority, university, body politic and corporate
of the State; and each administrative unit or corporate
outgrowth of the State government which is created by or
pursuant to statute, other than units of local government and
their officers, school districts and boards of election
commissioners; each administrative unit or corporate outgrowth
of the above and as may be created by executive order of the
Governor. No entity shall be considered an "agency" for the
purposes of this Act unless authorized by law to make rules or
regulations.
(f) "Rule" means each agency statement of general
applicability that implements, applies, interprets or
prescribes law or policy, but does not include (i) statements
concerning only the internal management of an agency and not
affecting private rights or procedures available to persons or
entities outside the agency, (ii) intra-agency memoranda, or

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(iii) the prescription of standardized forms.
(g) "Board" means the Enterprise Zone Board created in
Section 5.2.1.
(h) "Local labor market area" means an economically
integrated area within which individuals can reside and find
employment within a reasonable distance or can readily change
jobs without changing their place of residence.
(i) "Full-time equivalent job" means a job in which the
new employee works for the recipient or for a corporation
under contract to the recipient at a rate of at least 35 hours
per week. A recipient who employs labor or services at a
specific site or facility under contract with another may
declare one full-time, permanent job for every 1,820 man hours
worked per year under that contract. Vacations, paid holidays,
and sick time are included in this computation. Overtime is
not considered a part of regular hours.
(j) "Full-time retained job" means any employee defined as
having a full-time or full-time equivalent job preserved at a
specific facility or site, the continuance of which is
threatened by a specific and demonstrable threat, which shall
be specified in the application for development assistance. A
recipient who employs labor or services at a specific site or
facility under contract with another may declare one retained
employee per year for every 1,750 man hours worked per year
under that contract, even if different individuals perform
on-site labor or services.

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(k) "Medical provisions" means any drug product, test, or
device approved or permitted for importation, sale, offer for
sale, marketing, or distribution under the Federal Food, Drug
and Cosmetic Act; active pharmaceutical ingredient; synthetic
precursor, catalyst, solvent, or reagent used to prepare an
active pharmaceutical ingredient; diagnostic test; medical or
surgical equipment, tool, device, or component thereof; or
packaging associated therewith. The Department of Public
Health shall make additional recommendations to the General
Assembly at least annually of critical medical infrastructure
that is not otherwise encompassed by this subsection (k) for
further inclusion under this subsection (k).
(l) "Food infrastructure" means all infrastructure
associated with the production, distribution, storage,
fulfillment, and sale of food in the State of Illinois,
including, but not limited to, plants, animals, feed,
equipment, housing, processing, packaging, and construction.
The Department of Agriculture shall make additional
recommendations to the General Assembly at least annually of
critical food infrastructure that is not otherwise encompassed
by this subsection (l) for further inclusion under this
subsection (l).
(m) "Important and essential supplies" means any goods
that are necessary to preserve the functioning of civil
society, including those relating to critical household goods
and supplies, manufacturing supplies, energy, and

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transportation. The Department of Commerce and Economic
Opportunity or the Department of Transportation shall make
additional recommendations to the General Assembly at least
annually of critical infrastructure that is not otherwise
encompassed by this subsection (m) for further inclusion under
this subsection (m).
(n) "Small business" means a business that: (i) has fifty
or fewer non-managerial employees; (ii) has less than
$3,000,000 in gross revenues per year, as indexed to the year
2020; (iii) is organized under Co-operative Act; or (iv) is
organized as a Limited Worker Cooperative Association under
Limited Worker Cooperative Association Act.
(Source: P.A. 97-905, eff. 8-7-12; 98-463, eff. 8-16-13.)
(20 ILCS 655/7) (from Ch. 67 1/2, par. 611)
Sec. 7. State Incentives Regarding Public Services and
Physical Infrastructure.
(a) This Act does not restrict tax incentive financing
pursuant to the "Tax Increment Allocation Redevelopment Act".
(b) Industrial development bonds. Priority in the use of
industrial development bonds issued by the Illinois Finance
Authority shall be given to: (i) businesses located in an
Enterprise Zone; and (ii) small businesses that manufacture
medical provisions, process food, or produce goods and
services identified under a disaster proclamation or executive
order issued by the Governor pursuant to powers granted under

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Section 7 of the Illinois Emergency Management Agency Act.
(c) Deposit of State funds by the State Treasurer. The
State Treasurer is authorized and encouraged to place deposits
of State funds with financial institutions doing business in
an Enterprise Zone.
(Source: P.A. 93-205, eff. 1-1-04.)
(20 ILCS 655/14 new)
Sec. 14. Essential supplies exemption.
(a) Except as provided under subsection (b), any business
that: (i) is started after June 1, 2020; (ii) relocates to
Illinois after June 1, 2020; (iii) is presently located in the
State of Illinois; or (iv) is incorporated in the State of
Illinois and has a majority of employees residing in the State
of Illinois, and that produces medical provisions, food
infrastructure, or important and essential supplies, shall not
be subject to any statutory and regulatory restrictions from
the State of Illinois if those restrictions are more stringent
than those required by federal law.
This subsection (a) is inoperative on and after January 1,
2026, unless the Governor of the State of Illinois in office on
December 31, 2025, or in office thereafter, provides the
General Assembly with a report and recommendations identifying
a narrower subset of Illinois statutory and regulatory
requirements that should apply to such businesses to ensure
that such businesses remain as going business concerns in the

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State of Illinois, and possess the capacity to supply the
residents of the State of Illinois with critical medical
provisions, food infrastructure, or important and essential
supplies, including in the event of a natural disaster or
pandemic, in which case this subsection (a) shall be extended
for an additional full calendar year after the date of the
Governor's report.
Nothing in this subsection (a) shall relieve the business
of paying income taxes to the State of Illinois.
(b) Any small business under this Section that: (i) is
started after June 1, 2020; (ii) relocates to Illinois after
June 1, 2020; (iii) is presently located in the State of
Illinois; or (iv) is incorporated in the State of Illinois and
has a majority of employees residing in the State of Illinois,
and that produces medical provisions, food infrastructure, or
important and essential supplies, shall not be subject to any
statutory and regulatory restrictions from the State of
Illinois if those restrictions are more stringent than those
required by federal law for a period of 10 years or one year
after the small business loses its status as a small business,
whichever occurs sooner.
This subsection (b) is inoperative on and after January 1,
2031, unless the Governor of the State of Illinois in office on
December 31, 2025, or in office thereafter, provides the
General Assembly with a report and recommendations identifying
a narrower subset of Illinois statutory and regulatory

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requirements that should apply to such small businesses to
ensure that such businesses remain as going business concerns
in the State of Illinois, and possess the capacity to supply
the residents of the State of Illinois with critical medical
provisions, food infrastructure, or important and essential
supplies, including in the event of a natural disaster or
pandemic, in which case this subsection (b) shall be extended
for an additional 2 full calendar years after the date of the
Governor's report.
If by January 1, 2026, a small business has made a capital
investment into any facility in the State of Illinois that is
in excess of $1,000,000, the application of this subsection
(b) to that small business shall be extended by an additional
10 years or to such time as the capital investment
depreciation is equal to zero, whichever occurs sooner.
Nothing in this subsection (b) shall relieve the business
of paying income taxes to the State of Illinois.
(c) If a statute or agency rule means that a business
qualifying under subsections (a) or (b): (i) presents a
significant risk to the health or safety of persons residing
in or employed within a 2 mile radius of the facility; or (ii)
would conflict with federal law or regulation such that the
State, any unit of local government or school district, any
area of the State, or any business enterprise within a one mile
radius of the facility would be disqualified from a federal
program or from federal tax or other benefits, then the State

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of Illinois shall have the burden of proving by clear and
convincing evidence that the proposed additional statutory
burden or agency rule will not impose any disruption to
medical provisions, food infrastructure, or important and
essential supplies.
(d) If a statute or agency rule means that a business
qualifying under subsections (a) or (b): (i) presents a
significant risk to the business as a going business concern;
or (ii) will lead to the loss of critical employees, capital
infrastructure, or knowledge base associated with the
production and supply of goods and services, the business may
file a claim against the State of Illinois for undue business
disruption. The burden shall be on the State of Illinois to
show by clear and convincing evidence that the statute or
agency rule is reasonable and narrowly tailored to meet the
State's interest. No injunction may issue against a business
unless and until an adverse finding on the merits. Employees,
other businesses, and members of the public adversely and
materially impacted if the business is forced to comply may
also intervene in such action as a matter of right.
(e) When a State contract for the purchase of medical
provisions, food infrastructure, or important and essential
supplies is to be awarded to the lowest responsible bidder, a
small business under this Section who is an otherwise
qualified bidder who will fulfill the contract may be given
preference over other bidders; provided that, the bid cost is

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not more than 10% greater than the cost included in a bid.
(f) Identifying critical medical supply infrastructure.
The Department of Public Health shall every 2 years identify
drug and hospital supplies that are critical to preserving and
protecting the health and safety of Illinois residents. For
any supplies in which the market share of the medical product
or device (including, but not limited to, active
pharmaceutical ingredient; critical synthetic precursors,
catalysts or reagents; surgical equipment; and medical devices
and components thereof) is one in which greater than 50% of the
market is made outside the United States, the Department of
Public Health shall place a notice on its website and shall
inform the Department of Commerce and Economic Opportunity of
the potential for a supply chain disruption.
(g) The Illinois Known Drug Safety and Efficacy
Opportunity Board is created.
(1) Purpose. In 2019, a new SARS coronavirus is
believed to have originated in the region of Wuhan, China.
The virus quickly spread throughout the world, leaving
untold infections and deaths in its wake. As news of the
virus became known, the medical community began to
repurpose existing pharmaceutical products as potential
treatment options. However, critical delays of weeks or
months can lead to needless loss of life. Illinois has
some of the leading medical researchers and innovators in
the world. The goal of this Board is to facilitate getting

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potentially life-saving medications quickly into the hands
of medical scientists.
(2) The Board shall include the following members:
(i) four members appointed by the Governor, with
one each having experience within the fields of
medicinal chemistry or drug development, clinical
research, pharmaceutical manufacturing, and regulatory
compliance;
(ii) one additional member appointed by the
Governor;
(iii) one member appointed by the Speaker of the
House of Representatives;
(iv) one member appointed by the Minority Leader
of the House of Representatives;
(v) one member appointed by the Senate President;
and
(vi) one member appointed by the Senate Minority
Leader.
(3) The members of the Board shall meet at least twice
per year. The Department of Public Health shall designate
an administrative liaison and provide administrative
support to the Board. Members of the Board shall serve
without compensation.
(4) The Board shall facilitate the preparation of an
open-source public register of non-FDA approved drug
compounds that from 2010 and thereafter: (i) have been the

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subject of an investigational new drug application; (ii)
did not have unacceptable safety profiles in Phase II
clinical trials; and (iii) have the proposed mechanism of
action for the drug compound.
(5) Subject to appropriation, the Board shall issue
grants to public universities within the State of Illinois
in connection with identifying or developing
broad-spectrum antiviral pharmaceutical compounds.
(6) Subject to appropriation, the Board shall make
recommendations to the Department of Commerce and Economic
Opportunity for grant proposals to construct pilot plant
facilities capable of manufacturing quantities of drug
products for at least Phase II clinical trials, according
to Good Manufacturing Practices. The Board should look for
opportunities to prepare in separate facilities: (i)
active pharmaceutical ingredients for small molecules;
(ii) active pharmaceutical ingredients that are biologic
products (including, but not limited to, monoclonal
antibody products); (iii) finished dosage forms; (iv)
sterile injectable products; and (v) medical component
parts via 3-D printing technology. The Board should give
preference to facilities that could be used in the event
of an emergency to produce medical provisions.
(7) The Board shall also facilitate the preparation of
clinical trial proposals outside the university academic
research process.

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(8) Subject to appropriation, the Board shall also
make awards to community colleges to establish programs
relating to life sciences workforce development.
(h) The Illinois Food Processing and Distribution Board is
created.
(1) Purpose. In 2019, a new SARS coronavirus is
believed to have originated in the region of Wuhan, China.
The virus quickly spread throughout the world, leaving
untold infections and deaths in its wake. As news of the
virus became known, there were considerable disruptions to
the food supply chains, including at processing plants,
due in part to the lack of excess capacity in the system.
Illinois has some of the leading farmers in the world. The
goal of this Board is to facilitate building additional
food processing capacity throughout the state, on a small
and local level.
(2) The Board shall include the following members:
(i) four members appointed by the Governor, with
one each having experience within the fields of
farming of plants, farming of animals, food processing
and distribution, and regulatory compliance;
(ii) one additional member appointed by the
Governor;
(iii) one member appointed by the Speaker of the
House of Representatives;
(iv) one member appointed by the Minority Leader

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of the House of Representatives;
(v) one member appointed by the Senate President;
and
(vi) one member appointed by the Senate Minority
Leader.
(3) The members of the Board shall meet at least twice
per year. The Department of Agriculture shall designate an
administrative liaison and provide administrative support
to the Board. Members of the Board shall serve without
compensation.
(4) The Board shall facilitate the identification of
alternative food processing sources, including, but not
limited to, through hobby farming and workforce training.
(5) Subject to appropriation, the Board shall issue
grants to small businesses within the State of Illinois in
connection with building or maintaining excess capacity
for food processing.
(6) The Board shall particularly look to identify
"food deserts" or underserved areas within Cook County,
Illinois, that could expand food processing capabilities
in the area.
Section 99. Effective date. This Act takes effect upon
becoming law.