Bill Text: IL HB1839 | 2021-2022 | 102nd General Assembly | Engrossed

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Bill Title: Amends the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois. Makes a technical change in a Section concerning the short title.

Spectrum: Partisan Bill (Democrat 10-0)

Status: (Engrossed - Dead) 2021-11-28 - Pursuant to Senate Rule 3-9(b) / Referred to Assignments [HB1839 Detail]

Download: Illinois-2021-HB1839-Engrossed.html

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AN ACT concerning State government.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Department of Commerce and Economic
Opportunity Law of the Civil Administrative Code of Illinois
is amended by adding Section 605-1055 as follows:
(20 ILCS 605/605-1055 new)
Sec. 605-1055. 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.

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"Development assistance agreement" means: (i) any
agreement or memorandum of understanding executed by the State
granting body and the business organization participating in
the development assistance program setting 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, submitted to and approved by the
Department; and (ii) any application for certification or
designation setting forth the terms and conditions of
development assistance to be provided to the recipient 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 provided for in
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 organization to
agree to certain terms that ensure the business, including its
related members, is a good corporate citizen as a condition
for receiving development assistance. A business that cannot
truthfully agree to any required terms shall be ineligible for
the development assistance. Such terms may include, but need

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not be limited to, covenants, representations, and warranties
that:
(1) the business, its corporate officers, or corporate
parent or affiliate, 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 has been no charges, complaints, or other
actions having the effect of initiating judicial or
administrative proceedings brought by the State of
Illinois or any governmental body within the State of
Illinois, including the federal government, with respect
to the business or its officers or a corporate parent or
affiliate that relates to alleged fraud or activity that
poses a substantial threat or persistent nuisance to
public health, safety, or welfare;
(3) the business and any corporate parent or affiliate
are not delinquent on the payment of any taxes to the State
of Illinois or 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 any corporate parent or affiliate
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

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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 eligibility is
required throughout the term of a development assistance
agreement. The Department may suspend the development
assistance for noncompliance 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 affiliate was not
in compliance with any applicable 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 able to be claimed unless
and until the proceeding concludes without any finding of
wrongdoing or liability by the business, its corporate
officers, or corporate parent or affiliate and there is no
settlement payment by the business, its corporate officers, or
corporate parent or affiliate in excess of $5,000,000. Credits
or exemptions issued in suspended status shall remain subject
to any 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

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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.