Bill Text: IL SB2557 | 2021-2022 | 102nd General Assembly | Introduced

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Bill Title: Amends the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois. Provides that the Department of Commerce and Economic Opportunity may require a business organization to agree to certain terms that ensure the business is a good corporate citizen as a condition for receiving development assistance. Provides that a business that cannot truthfully agree to any required terms shall be ineligible for the development assistance. Specifies terms that may be required. Provides that compliance with good corporate citizen eligibility is required throughout a development assistance agreement. Provides that the Department may seek revocation of any credits or exemptions that were earned or used during a time when the business or its corporate parent or affiliate was not in compliance with any applicable requirements. Provides for the adoption of rules. Defines terms.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2022-12-31 - Chief Sponsor Changed to Sen. Don Harmon [SB2557 Detail]

Download: Illinois-2021-SB2557-Introduced.html

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102ND GENERAL ASSEMBLY State of Illinois 2021 and 2022 SB2557 Introduced 2/26/2021, by Sen. Melinda Bush SYNOPSIS AS INTRODUCED:
20 ILCS 605/605-1055 new
Amends the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois. Provides that the Department of Commerce and Economic Opportunity may require a business organization to agree to certain terms that ensure the business is a good corporate citizen as a condition for receiving development assistance. Provides that a business that cannot truthfully agree to any required terms shall be ineligible for the development assistance. Specifies terms that may be required. Provides that compliance with good corporate citizen eligibility is required throughout a development assistance agreement. Provides that the Department may seek revocation of any credits or exemptions that were earned or used during a time when the business or its corporate parent or affiliate was not in compliance with any applicable requirements. Provides for the adoption of rules. Defines terms.
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A BILL FOR
SB2557 LRB102 17103 RJF 22532 b
AN ACT concerning State government.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Department of Commerce and Economic
Opportunity Law of the Civil Administrative Code of Illinois
is amended by adding Section 605-1055 as follows:
(20 ILCS 605/605-1055 new)
Sec. 605-1055. Good corporate citizen requirement for tax
incentive recipients.
(a) As used in this Section:
"Business" means an applicant for or recipient of
development assistance.
"Corporate parent or affiliate" means: (i) a related
member with respect to a business; or (ii) an entity that
exercises control over the business and whose interests are
served by the business.
"Development assistance" means tax credits and tax
exemptions given as an incentive to a business organization
pursuant to an agreement with the Department or an initial
certification or designation issued by the Department. This
term does not include any Department-administered tax credit
program that provides a tax credit to an investor in a
business.

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"Development assistance agreement" means: (i) any
agreement or memorandum of understanding executed by the State
granting body and the business organization participating in
the development assistance program setting forth the terms and
conditions of development assistance to be provided to the
recipient consistent with the final application for
development assistance, including, but not limited to, the
date of assistance, submitted to and approved by the
Department; and (ii) any application for certification or
designation setting forth the terms and conditions of
development assistance to be provided to the recipient that is
approved by the Department.
"Good corporate citizen" means a business that has
demonstrated a capacity for legal compliance and that will be
responsible to its community and its workforce.
"Good corporate citizen requirements" means any
development assistance agreement required provided for in this
Section or by administrative rule.
"Related member" has the same meaning as set forth in
Section 5-5 of the Economic Development for a Growing Economy
Tax Credit Act.
(b) The Department may require a business organization to
agree to certain terms that ensure the business, including its
related members, is a good corporate citizen as a condition
for receiving development assistance. A business that cannot
truthfully agree to any required terms shall be ineligible for

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the development assistance. Such terms may include, but need
not be limited to, covenants, representations, and warranties
that:
(1) the business, its corporate officers, or corporate
parent or affiliate, are not or have not been the subject
of any criminal investigations or charges;
(2) there has been no investigation conducted or
charges, complaints, or actions brought by the State of
Illinois or any governmental body within the State of
Illinois, including the federal government, with respect
to the business or its officers or directors or a
corporate parent or affiliate that relates to alleged
fraud or activity that poses a substantial threat or
persistent nuisance to public health, safety, or welfare;
(3) the business and any corporate parent or affiliate
are not delinquent on the payment of any taxes to the State
of Illinois or on the Illinois Stop Payment List or a
debarred or suspended parties list maintained by the State
of Illinois or the United States; and
(4) the business and any corporate parent or affiliate
operating within Illinois will comply with the
requirements of all laws governing the project supported
by the development assistance, the Illinois Human Rights
Act, the Illinois Prevailing Wage Act, the Wage Payment
and Collection Act, the Consumer Fraud and Deceptive
Business Practices Act, the Right to Privacy in the

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Workplace Act, and the federal National Labor Relations
Act.
(c) Compliance with good corporate citizen eligibility is
required throughout a development assistance agreement. The
Department may seek revocation of any credits or exemptions
that were earned or used during a time when the business or its
corporate parent or affiliate was not in compliance with any
applicable requirements.
(d) The Department shall adopt rules setting forth any
other programmatic terms and conditions and the consequences
for noncompliance during the term of a development assistance
agreement. The Department may adopt rules providing for
exceptions to the good corporate citizen requirements if an
application would, in the determination of the Department,
cause an imminent and demonstrable hardship to the people of
Illinois or to the business's workforce. If an exception is
granted, the business must agree to a contractual modification
identifying the exception and the basis for granting it.