HB1839eng 102ND GENERAL ASSEMBLY

HB1839 Engrossed LRB102 14700 RJF 20053 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.

"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 demonstrates a capacity for legal compliance.

"Good corporate citizen requirements" means any development assistance agreement requirements 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 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 charges within 5 years prior to the application for development assistance or during the term of a development assistance agreement;

(2) there has been no charges, complaints, or other actions having the effect of initiating judicial or administrative proceedings 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 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 applicable 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 Workplace Act, and the federal National Labor Relations Act.

(c) Compliance with good corporate citizen eligibility is required throughout the term of a development assistance agreement. The Department may suspend the development assistance for noncompliance and 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.

A business whose development assistance is suspended due to the initiation of a proceeding as described in paragraphs (1) or (2) of subsection (b) may be issued certificates of verification or exemption in suspended status, and such credits or exemptions shall not be able to be claimed unless and until the proceeding concludes without any finding of wrongdoing or liability by the business, its corporate officers, or corporate parent or affiliate and there is no settlement payment by the business, its corporate officers, or corporate parent or affiliate in excess of $5,000,000. Credits or exemptions issued in suspended status shall remain subject to any statutory time limits on their use.

(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.