HB5543ham001 102ND GENERAL ASSEMBLY

Rep. Edgar Gonzalez, Jr.

Filed: 3/1/2022

10200HB5543ham001 LRB102 23895 RJF 37089 a

AMENDMENT TO HOUSE BILL 5543

AMENDMENT NO. ______. Amend House Bill 5543 by replacing everything after the enacting clause with the following:

"Section 5. The Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois is amended by adding Section 605-1095 as follows:

(20 ILCS 605/605-1095 new)

Sec. 605-1095. 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 that is executed by the State and the business organization participating in the development assistance program and that sets 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, and that is submitted to and approved by the Department; and (ii) any application for certification or designation that sets forth the terms and conditions of development assistance to be provided to the recipient and 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 that are developed by the Department under 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, as a condition of receiving development assistance, to agree to certain terms as necessary to ensure that the business and its related members are good corporate citizens. A business that cannot consent 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, and its corporate parent or affiliates 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 have been no criminal, civil, or administrative charges, complaints, or other actions brought by the State of Illinois or any governmental body against the business, its corporate officers, or its corporate parent or affiliates concerning alleged fraud or activity that poses a substantial threat or persistent nuisance to public health, safety, or welfare;

(3) the business and its corporate parent or affiliates are not delinquent in the payment of any taxes to the State of Illinois or are not 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 its corporate parent or affiliates 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 requirements must be maintained throughout the term of each development assistance agreement. The Department may suspend development assistance for noncompliance with good corporate citizen requirements 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 affiliates were not in compliance with those 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 claimed unless the proceeding concludes without any finding of wrongdoing or liability by the business, its corporate officers, or its corporate parent or affiliates and without a settlement agreement by the business, its corporate officers, or its corporate parent or affiliates in excess of $5,000,000. Credits or exemptions issued in suspended status shall remain subject to 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.".