Illinois General Assembly - Full Text of HB1839
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Full Text of HB1839  102nd General Assembly


Rep. Margaret Croke

Filed: 4/15/2021





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2    AMENDMENT NO. ______. Amend House Bill 1839 by replacing
3everything after the enacting clause with the following:
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.



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1    "Development assistance" means tax credits and tax
2exemptions given as an incentive to a business organization
3pursuant to an agreement with the Department or an initial
4certification or designation issued by the Department. This
5term does not include any Department-administered tax credit
6program that provides a tax credit to an investor in a
8    "Development assistance agreement" means: (i) any
9agreement or memorandum of understanding executed by the State
10granting body and the business organization participating in
11the development assistance program setting forth the terms and
12conditions of development assistance to be provided to the
13recipient consistent with the final application for
14development assistance, including, but not limited to, the
15date of assistance, submitted to and approved by the
16Department; and (ii) any application for certification or
17designation setting forth the terms and conditions of
18development assistance to be provided to the recipient that is
19approved by the Department.
20    "Good corporate citizen" means a business that
21demonstrates a capacity for legal compliance.
22    "Good corporate citizen requirements" means any
23development assistance agreement requirements provided for in
24this Section or by administrative rule.
25    "Related member" has the same meaning as set forth in
26Section 5-5 of the Economic Development for a Growing Economy



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1Tax Credit Act.
2    (b) The Department may require a business organization to
3agree to certain terms that ensure the business, including its
4related members, is a good corporate citizen as a condition
5for receiving development assistance. A business that cannot
6truthfully agree to any required terms shall be ineligible for
7the development assistance. Such terms may include, but need
8not be limited to, covenants, representations, and warranties
10        (1) the business, its corporate officers, or corporate
11    parent or affiliate, are not or have not been the subject
12    of any criminal charges within 5 years prior to the
13    application for development assistance or during the term
14    of a development assistance agreement;
15        (2) there has been no charges, complaints, or other
16    actions having the effect of initiating judicial or
17    administrative proceedings brought by the State of
18    Illinois or any governmental body within the State of
19    Illinois, including the federal government, with respect
20    to the business or its officers or a corporate parent or
21    affiliate that relates to alleged fraud or activity that
22    poses a substantial threat or persistent nuisance to
23    public health, safety, or welfare;
24        (3) the business and any corporate parent or affiliate
25    are not delinquent on the payment of any taxes to the State
26    of Illinois or on the Illinois Stop Payment List or a



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1    debarred or suspended parties list maintained by the State
2    of Illinois or the United States; and
3        (4) the business and any corporate parent or affiliate
4    operating within Illinois will comply with the
5    requirements of all applicable laws governing the project
6    supported by the development assistance, the Illinois
7    Human Rights Act, the Illinois Prevailing Wage Act, the
8    Wage Payment and Collection Act, the Consumer Fraud and
9    Deceptive Business Practices Act, the Right to Privacy in
10    the Workplace Act, and the federal National Labor
11    Relations Act.
12    (c) Compliance with good corporate citizen eligibility is
13required throughout the term of a development assistance
14agreement. The Department may suspend the development
15assistance for noncompliance and may seek revocation of any
16credits or exemptions that were earned or used during a time
17when the business or its corporate parent or affiliate was not
18in compliance with any applicable requirements.
19    A business whose development assistance is suspended due
20to the initiation of a proceeding as described in paragraphs
21(1) or (2) of subsection (b) may be issued certificates of
22verification or exemption in suspended status, and such
23credits or exemptions shall not be able to be claimed unless
24and until the proceeding concludes without any finding of
25wrongdoing or liability by the business, its corporate
26officers, or corporate parent or affiliate and there is no



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1settlement payment by the business, its corporate officers, or
2corporate parent or affiliate in excess of $5,000,000. Credits
3or exemptions issued in suspended status shall remain subject
4to any statutory time limits on their use.
5    (d) The Department shall adopt rules setting forth any
6other programmatic terms and conditions and the consequences
7for noncompliance during the term of a development assistance
8agreement. The Department may adopt rules providing for
9exceptions to the good corporate citizen requirements if an
10application would, in the determination of the Department,
11cause an imminent and demonstrable hardship to the people of
12Illinois or to the business's workforce. If an exception is
13granted, the business must agree to a contractual modification
14identifying the exception and the basis for granting it.".