Illinois General Assembly - Full Text of HB1839
Illinois General Assembly

Previous General Assemblies

Full Text of HB1839  102nd General Assembly




HB1839 EngrossedLRB102 14700 RJF 20053 b

1    AN ACT concerning State government.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Department of Commerce and Economic
5Opportunity Law of the Civil Administrative Code of Illinois
6is amended by adding Section 605-1055 as follows:
7    (20 ILCS 605/605-1055 new)
8    Sec. 605-1055. Good corporate citizen requirement for tax
9incentive recipients.
10    (a) As used in this Section:
11    "Business" means an applicant for or recipient of
12development assistance.
13    "Corporate parent or affiliate" means: (i) a related
14member with respect to a business; or (ii) an entity that
15exercises control over the business and whose interests are
16served by the business.
17    "Development assistance" means tax credits and tax
18exemptions given as an incentive to a business organization
19pursuant to an agreement with the Department or an initial
20certification or designation issued by the Department. This
21term does not include any Department-administered tax credit
22program that provides a tax credit to an investor in a



HB1839 Engrossed- 2 -LRB102 14700 RJF 20053 b

1    "Development assistance agreement" means: (i) any
2agreement or memorandum of understanding executed by the State
3granting body and the business organization participating in
4the development assistance program setting forth the terms and
5conditions of development assistance to be provided to the
6recipient consistent with the final application for
7development assistance, including, but not limited to, the
8date of assistance, submitted to and approved by the
9Department; and (ii) any application for certification or
10designation setting forth the terms and conditions of
11development assistance to be provided to the recipient that is
12approved by the Department.
13    "Good corporate citizen" means a business that
14demonstrates a capacity for legal compliance.
15    "Good corporate citizen requirements" means any
16development assistance agreement requirements provided for in
17this Section or by administrative rule.
18    "Related member" has the same meaning as set forth in
19Section 5-5 of the Economic Development for a Growing Economy
20Tax Credit Act.
21    (b) The Department may require a business organization to
22agree to certain terms that ensure the business, including its
23related members, is a good corporate citizen as a condition
24for receiving development assistance. A business that cannot
25truthfully agree to any required terms shall be ineligible for
26the development assistance. Such terms may include, but need



HB1839 Engrossed- 3 -LRB102 14700 RJF 20053 b

1not be limited to, covenants, representations, and warranties
3        (1) the business, its corporate officers, or corporate
4    parent or affiliate, are not or have not been the subject
5    of any criminal charges within 5 years prior to the
6    application for development assistance or during the term
7    of a development assistance agreement;
8        (2) there has been no charges, complaints, or other
9    actions having the effect of initiating judicial or
10    administrative proceedings brought by the State of
11    Illinois or any governmental body within the State of
12    Illinois, including the federal government, with respect
13    to the business or its officers or a corporate parent or
14    affiliate that relates to alleged fraud or activity that
15    poses a substantial threat or persistent nuisance to
16    public health, safety, or welfare;
17        (3) the business and any corporate parent or affiliate
18    are not delinquent on the payment of any taxes to the State
19    of Illinois or on the Illinois Stop Payment List or a
20    debarred or suspended parties list maintained by the State
21    of Illinois or the United States; and
22        (4) the business and any corporate parent or affiliate
23    operating within Illinois will comply with the
24    requirements of all applicable laws governing the project
25    supported by the development assistance, the Illinois
26    Human Rights Act, the Illinois Prevailing Wage Act, the



HB1839 Engrossed- 4 -LRB102 14700 RJF 20053 b

1    Wage Payment and Collection Act, the Consumer Fraud and
2    Deceptive Business Practices Act, the Right to Privacy in
3    the Workplace Act, and the federal National Labor
4    Relations Act.
5    (c) Compliance with good corporate citizen eligibility is
6required throughout the term of a development assistance
7agreement. The Department may suspend the development
8assistance for noncompliance and may seek revocation of any
9credits or exemptions that were earned or used during a time
10when the business or its corporate parent or affiliate was not
11in compliance with any applicable requirements.
12    A business whose development assistance is suspended due
13to the initiation of a proceeding as described in paragraphs
14(1) or (2) of subsection (b) may be issued certificates of
15verification or exemption in suspended status, and such
16credits or exemptions shall not be able to be claimed unless
17and until the proceeding concludes without any finding of
18wrongdoing or liability by the business, its corporate
19officers, or corporate parent or affiliate and there is no
20settlement payment by the business, its corporate officers, or
21corporate parent or affiliate in excess of $5,000,000. Credits
22or exemptions issued in suspended status shall remain subject
23to any statutory time limits on their use.
24    (d) The Department shall adopt rules setting forth any
25other programmatic terms and conditions and the consequences
26for noncompliance during the term of a development assistance



HB1839 Engrossed- 5 -LRB102 14700 RJF 20053 b

1agreement. The Department may adopt rules providing for
2exceptions to the good corporate citizen requirements if an
3application would, in the determination of the Department,
4cause an imminent and demonstrable hardship to the people of
5Illinois or to the business's workforce. If an exception is
6granted, the business must agree to a contractual modification
7identifying the exception and the basis for granting it.