Illinois General Assembly - Full Text of HB2486
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Full Text of HB2486  102nd General Assembly

HB2486 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB2486

 

Introduced 2/19/2021, by Rep. Deanne M. Mazzochi

 

SYNOPSIS AS INTRODUCED:
 
20 ILCS 655/3  from Ch. 67 1/2, par. 603
20 ILCS 655/7  from Ch. 67 1/2, par. 611
20 ILCS 655/14 new

    Amends the Illinois Enterprise Zone Act. Provides that priority in the use of industrial development bonds issued by the Illinois Finance Authority shall be given to small businesses that manufacture medical provisions, process food, or produce goods and services identified under a disaster proclamation or executive order issued by the Governor. Provides that specified businesses that produce medical provisions, food infrastructure, or important and essential supplies shall not be subject to any statutory and regulatory restrictions from the State of Illinois if those restrictions are more stringent than those required by federal law. Provides further requirements concerning this exemption. Provides for a preference in the awarding of State contracts to small businesses that produce medical provisions, food infrastructure, or important and essential supplies. Requires the Department of Public Health to identify drug and hospital supplies that are critical to preserving and protecting the health and safety of Illinois residents, and provide notice of potential supply disruption. Creates the Illinois Known Drug Safety and Efficacy Opportunity Board and the Illinois Food Processing and Distribution Board for specified purposes and duties. Defines terms. Effective immediately.


LRB102 13209 RJF 18553 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB2486LRB102 13209 RJF 18553 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 1. This Act may be referred to as the Amplifying
5Medical Provisions, Lifting Infrastructure for Food, Important
6and Essential Supplies (AMPLIFIES) Act.
 
7    Section 5. The Illinois Enterprise Zone Act is amended by
8changing Sections 3 and 7 and by adding Section 14 as follows:
 
9    (20 ILCS 655/3)  (from Ch. 67 1/2, par. 603)
10    Sec. 3. Definitions. As used in this Act, the following
11words shall have the meanings ascribed to them, unless the
12context otherwise requires:
13    (a) "Department" means the Department of Commerce and
14Economic Opportunity.
15    (b) "Enterprise Zone" means an area of the State certified
16by the Department as an Enterprise Zone pursuant to this Act.
17    (c) "Depressed Area" means an area in which pervasive
18poverty, unemployment and economic distress exist.
19    (d) "Designated Zone Organization" means an association or
20entity: (1) the members of which are substantially all
21residents of the Enterprise Zone; (2) the board of directors
22of which is elected by the members of the organization; (3)

 

 

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1which satisfies the criteria set forth in Section 501(c) (3)
2or 501(c) (4) of the Internal Revenue Code; and (4) which
3exists primarily for the purpose of performing within such
4area or zone for the benefit of the residents and businesses
5thereof any of the functions set forth in Section 8 of this
6Act.
7    (e) "Agency" means each officer, board, commission and
8agency created by the Constitution, in the executive branch of
9State government, other than the State Board of Elections;
10each officer, department, board, commission, agency,
11institution, authority, university, body politic and corporate
12of the State; and each administrative unit or corporate
13outgrowth of the State government which is created by or
14pursuant to statute, other than units of local government and
15their officers, school districts and boards of election
16commissioners; each administrative unit or corporate outgrowth
17of the above and as may be created by executive order of the
18Governor. No entity shall be considered an "agency" for the
19purposes of this Act unless authorized by law to make rules or
20regulations.
21    (f) "Rule" means each agency statement of general
22applicability that implements, applies, interprets or
23prescribes law or policy, but does not include (i) statements
24concerning only the internal management of an agency and not
25affecting private rights or procedures available to persons or
26entities outside the agency, (ii) intra-agency memoranda, or

 

 

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1(iii) the prescription of standardized forms.
2    (g) "Board" means the Enterprise Zone Board created in
3Section 5.2.1.
4    (h) "Local labor market area" means an economically
5integrated area within which individuals can reside and find
6employment within a reasonable distance or can readily change
7jobs without changing their place of residence.
8    (i) "Full-time equivalent job" means a job in which the
9new employee works for the recipient or for a corporation
10under contract to the recipient at a rate of at least 35 hours
11per week. A recipient who employs labor or services at a
12specific site or facility under contract with another may
13declare one full-time, permanent job for every 1,820 man hours
14worked per year under that contract. Vacations, paid holidays,
15and sick time are included in this computation. Overtime is
16not considered a part of regular hours.
17    (j) "Full-time retained job" means any employee defined as
18having a full-time or full-time equivalent job preserved at a
19specific facility or site, the continuance of which is
20threatened by a specific and demonstrable threat, which shall
21be specified in the application for development assistance. A
22recipient who employs labor or services at a specific site or
23facility under contract with another may declare one retained
24employee per year for every 1,750 man hours worked per year
25under that contract, even if different individuals perform
26on-site labor or services.

 

 

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1    (k) "Medical provisions" means any drug product, test, or
2device approved or permitted for importation, sale, offer for
3sale, marketing, or distribution under the Federal Food, Drug
4and Cosmetic Act; active pharmaceutical ingredient; synthetic
5precursor, catalyst, solvent, or reagent used to prepare an
6active pharmaceutical ingredient; diagnostic test; medical or
7surgical equipment, tool, device, or component thereof; or
8packaging associated therewith. The Department of Public
9Health shall make additional recommendations to the General
10Assembly at least annually of critical medical infrastructure
11that is not otherwise encompassed by this subsection (k) for
12further inclusion under this subsection (k).
13    (l) "Food infrastructure" means all infrastructure
14associated with the production, distribution, storage,
15fulfillment, and sale of food in the State of Illinois,
16including, but not limited to, plants, animals, feed,
17equipment, housing, processing, packaging, and construction.
18The Department of Agriculture shall make additional
19recommendations to the General Assembly at least annually of
20critical food infrastructure that is not otherwise encompassed
21by this subsection (l) for further inclusion under this
22subsection (l).
23    (m) "Important and essential supplies" means any goods
24that are necessary to preserve the functioning of civil
25society, including those relating to critical household goods
26and supplies, manufacturing supplies, energy, and

 

 

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1transportation. The Department of Commerce and Economic
2Opportunity or the Department of Transportation shall make
3additional recommendations to the General Assembly at least
4annually of critical infrastructure that is not otherwise
5encompassed by this subsection (m) for further inclusion under
6this subsection (m).
7    (n) "Small business" means a business that: (i) has fifty
8or fewer non-managerial employees; (ii) has less than
9$3,000,000 in gross revenues per year, as indexed to the year
102020; (iii) is organized under Co-operative Act; or (iv) is
11organized as a Limited Worker Cooperative Association under
12Limited Worker Cooperative Association Act.
13(Source: P.A. 97-905, eff. 8-7-12; 98-463, eff. 8-16-13.)
 
14    (20 ILCS 655/7)  (from Ch. 67 1/2, par. 611)
15    Sec. 7. State Incentives Regarding Public Services and
16Physical Infrastructure.
17    (a) This Act does not restrict tax incentive financing
18pursuant to the "Tax Increment Allocation Redevelopment Act".
19    (b) Industrial development bonds. Priority in the use of
20industrial development bonds issued by the Illinois Finance
21Authority shall be given to: (i) businesses located in an
22Enterprise Zone; and (ii) small businesses that manufacture
23medical provisions, process food, or produce goods and
24services identified under a disaster proclamation or executive
25order issued by the Governor pursuant to powers granted under

 

 

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1Section 7 of the Illinois Emergency Management Agency Act.
2    (c) Deposit of State funds by the State Treasurer. The
3State Treasurer is authorized and encouraged to place deposits
4of State funds with financial institutions doing business in
5an Enterprise Zone.
6(Source: P.A. 93-205, eff. 1-1-04.)
 
7    (20 ILCS 655/14 new)
8    Sec. 14. Essential supplies exemption.
9    (a) Except as provided under subsection (b), any business
10that: (i) is started after June 1, 2020; (ii) relocates to
11Illinois after June 1, 2020; (iii) is presently located in the
12State of Illinois; or (iv) is incorporated in the State of
13Illinois and has a majority of employees residing in the State
14of Illinois, and that produces medical provisions, food
15infrastructure, or important and essential supplies, shall not
16be subject to any statutory and regulatory restrictions from
17the State of Illinois if those restrictions are more stringent
18than those required by federal law.
19    This subsection (a) is inoperative on and after January 1,
202026, unless the Governor of the State of Illinois in office on
21December 31, 2025, or in office thereafter, provides the
22General Assembly with a report and recommendations identifying
23a narrower subset of Illinois statutory and regulatory
24requirements that should apply to such businesses to ensure
25that such businesses remain as going business concerns in the

 

 

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1State of Illinois, and possess the capacity to supply the
2residents of the State of Illinois with critical medical
3provisions, food infrastructure, or important and essential
4supplies, including in the event of a natural disaster or
5pandemic, in which case this subsection (a) shall be extended
6for an additional full calendar year after the date of the
7Governor's report.
8    Nothing in this subsection (a) shall relieve the business
9of paying income taxes to the State of Illinois.
10    (b) Any small business under this Section that: (i) is
11started after June 1, 2020; (ii) relocates to Illinois after
12June 1, 2020; (iii) is presently located in the State of
13Illinois; or (iv) is incorporated in the State of Illinois and
14has a majority of employees residing in the State of Illinois,
15and that produces medical provisions, food infrastructure, or
16important and essential supplies, shall not be subject to any
17statutory and regulatory restrictions from the State of
18Illinois if those restrictions are more stringent than those
19required by federal law for a period of 10 years or one year
20after the small business loses its status as a small business,
21whichever occurs sooner.
22    This subsection (b) is inoperative on and after January 1,
232031, unless the Governor of the State of Illinois in office on
24December 31, 2025, or in office thereafter, provides the
25General Assembly with a report and recommendations identifying
26a narrower subset of Illinois statutory and regulatory

 

 

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1requirements that should apply to such small businesses to
2ensure that such businesses remain as going business concerns
3in the State of Illinois, and possess the capacity to supply
4the residents of the State of Illinois with critical medical
5provisions, food infrastructure, or important and essential
6supplies, including in the event of a natural disaster or
7pandemic, in which case this subsection (b) shall be extended
8for an additional 2 full calendar years after the date of the
9Governor's report.
10    If by January 1, 2026, a small business has made a capital
11investment into any facility in the State of Illinois that is
12in excess of $1,000,000, the application of this subsection
13(b) to that small business shall be extended by an additional
1410 years or to such time as the capital investment
15depreciation is equal to zero, whichever occurs sooner.
16    Nothing in this subsection (b) shall relieve the business
17of paying income taxes to the State of Illinois.
18    (c) If a statute or agency rule means that a business
19qualifying under subsections (a) or (b): (i) presents a
20significant risk to the health or safety of persons residing
21in or employed within a 2 mile radius of the facility; or (ii)
22would conflict with federal law or regulation such that the
23State, any unit of local government or school district, any
24area of the State, or any business enterprise within a one mile
25radius of the facility would be disqualified from a federal
26program or from federal tax or other benefits, then the State

 

 

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1of Illinois shall have the burden of proving by clear and
2convincing evidence that the proposed additional statutory
3burden or agency rule will not impose any disruption to
4medical provisions, food infrastructure, or important and
5essential supplies.
6    (d) If a statute or agency rule means that a business
7qualifying under subsections (a) or (b): (i) presents a
8significant risk to the business as a going business concern;
9or (ii) will lead to the loss of critical employees, capital
10infrastructure, or knowledge base associated with the
11production and supply of goods and services, the business may
12file a claim against the State of Illinois for undue business
13disruption. The burden shall be on the State of Illinois to
14show by clear and convincing evidence that the statute or
15agency rule is reasonable and narrowly tailored to meet the
16State's interest. No injunction may issue against a business
17unless and until an adverse finding on the merits. Employees,
18other businesses, and members of the public adversely and
19materially impacted if the business is forced to comply may
20also intervene in such action as a matter of right.
21    (e) When a State contract for the purchase of medical
22provisions, food infrastructure, or important and essential
23supplies is to be awarded to the lowest responsible bidder, a
24small business under this Section who is an otherwise
25qualified bidder who will fulfill the contract may be given
26preference over other bidders; provided that, the bid cost is

 

 

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1not more than 10% greater than the cost included in a bid.
2    (f) Identifying critical medical supply infrastructure.
3The Department of Public Health shall every 2 years identify
4drug and hospital supplies that are critical to preserving and
5protecting the health and safety of Illinois residents. For
6any supplies in which the market share of the medical product
7or device (including, but not limited to, active
8pharmaceutical ingredient; critical synthetic precursors,
9catalysts or reagents; surgical equipment; and medical devices
10and components thereof) is one in which greater than 50% of the
11market is made outside the United States, the Department of
12Public Health shall place a notice on its website and shall
13inform the Department of Commerce and Economic Opportunity of
14the potential for a supply chain disruption.
15    (g) The Illinois Known Drug Safety and Efficacy
16Opportunity Board is created.
17        (1) Purpose. In 2019, a new SARS coronavirus is
18    believed to have originated in the region of Wuhan, China.
19    The virus quickly spread throughout the world, leaving
20    untold infections and deaths in its wake. As news of the
21    virus became known, the medical community began to
22    repurpose existing pharmaceutical products as potential
23    treatment options. However, critical delays of weeks or
24    months can lead to needless loss of life. Illinois has
25    some of the leading medical researchers and innovators in
26    the world. The goal of this Board is to facilitate getting

 

 

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1    potentially life-saving medications quickly into the hands
2    of medical scientists.
3        (2) The Board shall include the following members:
4            (i) four members appointed by the Governor, with
5        one each having experience within the fields of
6        medicinal chemistry or drug development, clinical
7        research, pharmaceutical manufacturing, and regulatory
8        compliance;
9            (ii) one additional member appointed by the
10        Governor;
11            (iii) one member appointed by the Speaker of the
12        House of Representatives;
13            (iv) one member appointed by the Minority Leader
14        of the House of Representatives;
15            (v) one member appointed by the Senate President;
16        and
17            (vi) one member appointed by the Senate Minority
18        Leader.
19        (3) The members of the Board shall meet at least twice
20    per year. The Department of Public Health shall designate
21    an administrative liaison and provide administrative
22    support to the Board. Members of the Board shall serve
23    without compensation.
24        (4) The Board shall facilitate the preparation of an
25    open-source public register of non-FDA approved drug
26    compounds that from 2010 and thereafter: (i) have been the

 

 

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1    subject of an investigational new drug application; (ii)
2    did not have unacceptable safety profiles in Phase II
3    clinical trials; and (iii) have the proposed mechanism of
4    action for the drug compound.
5        (5) Subject to appropriation, the Board shall issue
6    grants to public universities within the State of Illinois
7    in connection with identifying or developing
8    broad-spectrum antiviral pharmaceutical compounds.
9        (6) Subject to appropriation, the Board shall make
10    recommendations to the Department of Commerce and Economic
11    Opportunity for grant proposals to construct pilot plant
12    facilities capable of manufacturing quantities of drug
13    products for at least Phase II clinical trials, according
14    to Good Manufacturing Practices. The Board should look for
15    opportunities to prepare in separate facilities: (i)
16    active pharmaceutical ingredients for small molecules;
17    (ii) active pharmaceutical ingredients that are biologic
18    products (including, but not limited to, monoclonal
19    antibody products); (iii) finished dosage forms; (iv)
20    sterile injectable products; and (v) medical component
21    parts via 3-D printing technology. The Board should give
22    preference to facilities that could be used in the event
23    of an emergency to produce medical provisions.
24        (7) The Board shall also facilitate the preparation of
25    clinical trial proposals outside the university academic
26    research process.

 

 

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1        (8) Subject to appropriation, the Board shall also
2    make awards to community colleges to establish programs
3    relating to life sciences workforce development.
4    (h) The Illinois Food Processing and Distribution Board is
5created.
6        (1) Purpose. In 2019, a new SARS coronavirus is
7    believed to have originated in the region of Wuhan, China.
8    The virus quickly spread throughout the world, leaving
9    untold infections and deaths in its wake. As news of the
10    virus became known, there were considerable disruptions to
11    the food supply chains, including at processing plants,
12    due in part to the lack of excess capacity in the system.
13    Illinois has some of the leading farmers in the world. The
14    goal of this Board is to facilitate building additional
15    food processing capacity throughout the state, on a small
16    and local level.
17        (2) The Board shall include the following members:
18            (i) four members appointed by the Governor, with
19        one each having experience within the fields of
20        farming of plants, farming of animals, food processing
21        and distribution, and regulatory compliance;
22            (ii) one additional member appointed by the
23        Governor;
24            (iii) one member appointed by the Speaker of the
25        House of Representatives;
26            (iv) one member appointed by the Minority Leader

 

 

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1        of the House of Representatives;
2            (v) one member appointed by the Senate President;
3        and
4            (vi) one member appointed by the Senate Minority
5        Leader.
6        (3) The members of the Board shall meet at least twice
7    per year. The Department of Agriculture shall designate an
8    administrative liaison and provide administrative support
9    to the Board. Members of the Board shall serve without
10    compensation.
11        (4) The Board shall facilitate the identification of
12    alternative food processing sources, including, but not
13    limited to, through hobby farming and workforce training.
14        (5) Subject to appropriation, the Board shall issue
15    grants to small businesses within the State of Illinois in
16    connection with building or maintaining excess capacity
17    for food processing.
18        (6) The Board shall particularly look to identify
19    "food deserts" or underserved areas within Cook County,
20    Illinois, that could expand food processing capabilities
21    in the area.
 
22    Section 99. Effective date. This Act takes effect upon
23becoming law.