HB1624 97TH GENERAL ASSEMBLY

LRB097 09173 PJG 49308 b

97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB1624

Introduced 2/15/2011, by Rep. Emily McAsey

SYNOPSIS AS INTRODUCED:

New Act
30 ILCS 500/30-45
30 ILCS 805/8.35 new

Creates the Job Preservation Act of 2011. Provides that companies that lose 100 or more employees due to outsourcing of jobs are ineligible to receive procurement contracts with the State, units of local government, or school districts and to receive government grants, loans, tax incentives, or other economic incentives. Requires certain companies that lose 100 or more employees to notify the Department of Labor about the loss. Requires the Department to send a survey to companies that report the loss of 100 or more employees in order to determine the number of employees lost because of outsourcing jobs outside of the United States. Requires the Department to provide written notice to the Governor, the General Assembly, State agencies, units of local government, and school districts. Preempts home rule powers. Exempts from the reimbursement requirements of the State Mandates Act. Effective immediately.

FISCAL NOTE ACT MAY APPLY

HOME RULE NOTE ACT MAY APPLY

STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

A BILL FOR

AN ACT concerning jobs.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. Short title. This Act may be cited as the Job Preservation Act of 2011.

Section 5. Legislative declaration. The General Assembly finds, determines, and declares that:

(1) In recent years, a number of companies have replaced highly-skilled workers from this State with lower-paid, foreign laborers, a practice that is known as outsourcing.

(2) In many cases, the impetus for the outsourcing is pressure from domestic and foreign capital venture companies that see foreign labor as a way of increasing their already significant profits.

(3) The preservation of jobs in this State is of critical importance to the economic vitality of the State and the local communities within the State.

(4) The economic dislocation caused by a company outsourcing jobs threatens the health, safety, and welfare of the people of this State.

(5) A company that engages in outsourcing should not enjoy the benefits of a lucrative State or local procurement contract.

(6) Companies should also be prohibited from receiving grants, loans, tax incentives, or other economic incentives from State and local government.

Section 10. Definitions. In this Act, unless the context otherwise requires:

(1) "Company" means any corporation, subchapter S corporation, professional corporation, business trust, estate, trust, joint stock company, joint venture, limited liability company, partnership, association, unincorporated association, society, or any other nongovernmental legal entity. "Company" also includes any subsidiary, parent, merged, or acquired company.

(2) "Department" means the Department of Labor.

(3) "Director" means the Director of Labor.

(4) "Local government" means a unit of local government or a school district.

(5) "Procurement" means any State or local government contract that exceeds $500.

(6) "State" means a department, office, commission, institution, board, or other agency of State government, including an institution of higher education.

(7) "Survey" means the job relocation survey that the Director prepares in accordance with the provisions of this Act.

Section 15. Job relocation; notice; survey.

(a) On or before January 31, 2012, and each January 31 thereafter, any company doing business in this State that had a net loss of 100 or more employees in the State during the prior calendar year must notify the Department of the loss.

(b) The Director shall prepare a job relocation survey to be completed by a company that notifies the Department pursuant to this Section. In addition to any other information required by the Director, the survey shall include the following:

(1) The name and principal place of business of the company.

(2) Identification of any procurement contracts that the company has with the State or a local government.

(3) Identification of any grants, loans, tax incentives, or other economic development incentives that the company has received from the State or a local government during the previous 10 years.

(4) A statement of the number of employees of the company that lost their jobs in the preceding calendar year.

(5) A statement of the number of jobs that were added in this State the preceding calendar year.

(6) A statement of the number of jobs that employees lost that were caused as a result of the company outsourcing the jobs to employees located outside of the United States.

(c) A company shall complete and return the survey to the Department within 30 days after receiving it. A company that fails to respond to the survey within that 30-day period is subject to the penalties set forth in this Act until the time that the survey is completed.

(d) Any person who believes that he or she lost his or her job as a result of a company outsourcing jobs to employees located outside of the United States is encouraged to report all relevant information to the Department.

Section 20. Outsourcing; penalties.

(a) Notwithstanding any provision of law to the contrary, if a company has had a net loss of 100 or more employees in this State during the prior calendar year and the loss was caused by the relocation of 100 or more jobs from this State to a site that is located outside of the United States, then that company shall, for a period of 7 years, be ineligible to:

(1) Enter into a procurement contract with the State or a local government.

(2) Receive any government grant, loan, tax incentive, or other economic incentive from the State or a local government.

(3) Use any bonds, bond proceeds, or bond benefits from the State or a local government.

(b) The Director shall provide written notice of any company identified in subsection (a) of this Section to each of the following: (i) the Governor; (ii) the General Assembly; (iii) each State agency; (iv) each institution of higher education; and (v) each local government.

(c) The 7-year period of ineligibility under subsection (a) of this Section commences on the date of the written notice provided by the Director pursuant to subsection (b) of this Section.

Section 25. Home rule. A home rule unit may not regulate companies that outsource jobs in a manner less restrictive than the regulation by the State under this Act. This Act is a limitation under subsection (i) of Section 6 of Article VII of the Illinois Constitution on the concurrent exercise by home rule units of powers and functions exercised by the State.

Section 90. The Illinois Procurement Code is amended by changing Section 30-45 as follows:

(30 ILCS 500/30-45)

Sec. 30-45. Other Acts. This Article is subject to applicable provisions of the following Acts:

(1) the Prevailing Wage Act;

(2) the Public Construction Bond Act;

(3) the Public Works Employment Discrimination Act;

(4) the Public Works Preference Act (repealed on June 16, 2010 by Public Act 96-929);

(5) the Employment of Illinois Workers on Public Works Act;

(6) the Public Contract Fraud Act; and

(7) the Illinois Construction Evaluation Act; and

(8) the Job Preservation Act of 2011.

(Source: P.A. 90-572, eff. date - See Sec. 99-5; revised 10-19-10.)

Section 95. The State Mandates Act is amended by adding Section 8.35 as follows:

(30 ILCS 805/8.35 new)

Sec. 8.35. Exempt mandate. Notwithstanding Sections 6 and 8 of this Act, no reimbursement by the State is required for the implementation of any mandate created by this amendatory Act of the 97th General Assembly.

Section 99. Effective date. This Act takes effect upon becoming law.