Bill Text: IL HB4061 | 2021-2022 | 102nd General Assembly | Introduced

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Bill Title: Creates the Business Supply Chain Transparency for Slavery, Trafficking, and Child Labor Act. Provides that every retail seller and manufacturer doing business in the State and having annual worldwide gross receipts that exceed $100,000,000 shall disclose its efforts to eradicate slavery, human trafficking, and child labor from its direct supply chain for tangible goods offered for sale. Provides requirements and process for disclosures. Provides that the Department of Revenue shall make available to the Attorney General a list of retail sellers and manufacturers required to disclose efforts to eradicate slavery, human trafficking, and child labor pursuant to the Act. Provides that the list shall be based on tax returns filed for taxable years beginning on or after January 1, 2021 and shall be submitted annually to the Attorney General by November 30, 2021, and each November 30 thereafter. Provides that the list shall be derived from original tax returns received by the Department on or before December 31, 2020, and each December 31 thereafter. Effective January 1, 2022.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2021-04-06 - Referred to Rules Committee [HB4061 Detail]

Download: Illinois-2021-HB4061-Introduced.html

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102ND GENERAL ASSEMBLY State of Illinois 2021 and 2022 HB4061 Introduced , by Rep. Marcus C. Evans, Jr. SYNOPSIS AS INTRODUCED:
New Act
Creates the Business Supply Chain Transparency for Slavery, Trafficking, and Child Labor Act. Provides that every retail seller and manufacturer doing business in the State and having annual worldwide gross receipts that exceed $100,000,000 shall disclose its efforts to eradicate slavery, human trafficking, and child labor from its direct supply chain for tangible goods offered for sale. Provides requirements and process for disclosures. Provides that the Department of Revenue shall make available to the Attorney General a list of retail sellers and manufacturers required to disclose efforts to eradicate slavery, human trafficking, and child labor pursuant to the Act. Provides that the list shall be based on tax returns filed for taxable years beginning on or after January 1, 2021 and shall be submitted annually to the Attorney General by November 30, 2021, and each November 30 thereafter. Provides that the list shall be derived from original tax returns received by the Department on or before December 31, 2020, and each December 31 thereafter. Effective January 1, 2022.
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A BILL FOR
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AN ACT concerning business.
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
Business Supply Chain Transparency for Slavery, Trafficking,
and Child Labor Act.
Section 5. Findings. The General Assembly finds and
declares that:
(1) Modern slavery, human trafficking, and child labor
are crimes under State, federal, and international law but
still continue to exist, including in the State of
Illinois.
(2) These crimes are often hidden from view and are
difficult to uncover and track.
(3) Legislative efforts to address the market for
goods and products tainted by slavery, trafficking, and
child labor have been lacking.
(4) As of September 20, 2018, the List of Goods
Produced by Child Labor or Forced Labor, published by the
United States Department of Labor, comprised 148 goods
from 76 countries.
(5) Consumers and businesses are inadvertently
promoting and sanctioning these crimes through the

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purchase of goods and products that have been tainted in
the supply chain.
(6) Absent publicly available disclosures, consumers
are at a disadvantage in being able force the eradication
of slavery and trafficking by way of the market and their
purchasing decisions.
(7) It is the policy of this State to ensure large
retailers and manufacturers provide consumers with
information regarding their efforts to eradicate slavery,
human trafficking, and child labor from their supply
chains, to educate consumers on how to purchase goods
produced by companies that responsibly manage their supply
chains, and, thereby, to improve the lives of victims of
slavery, human trafficking, and child labor.
Section 10. Definitions. As used in this Act:
"Child labor" means work that is mentally, physically,
socially, or morally dangerous and harmful to children and
interferes with their schooling by depriving them of the
opportunity to attend school; obliging them to leave school
prematurely; or requiring them to attempt to combine school
with excessively long and hard work conditions.
"Doing business in this State" means actively engaging in
any transaction for the purpose of financial or pecuniary gain
or profit.
"Gross receipts" means the sum of money and the fair

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market value of other property or services received on the
sale or exchange of property, the performance of services, or
the use of property or capital (including rents, royalties,
interest, and dividends) in a transaction that produced
business income, in which the income, gain, or loss is
recognized (or would be recognized if the transaction were in
the United States) under the Internal Revenue Code. Gross
receipts does not include:
(1) Repayment.
(2) The principal amount received under a repurchase
agreement or other transaction properly characterized as a
loan.
(3) Proceeds from the issuance of the taxpayer's own
stock or from sale of treasury stock.
(4) Damages and other amounts received as a result of
litigation.
(5) Property acquired by an agent on behalf of
another.
(6) Tax refunds and other tax benefit recoveries.
(7) Pension reversions.
(8) Contributions to capital (except for the sale of
securities by a securities dealer).
(9) Income from the discharge of indebtedness.
(10) Amounts realized from exchanges of inventory that
are not recognized under the Internal Revenue Code.
(11) Amounts received from transactions in intangible

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assets held in connection with a treasury function of the
taxpayer's unitary business and the gross receipts and
overall net gains from the maturity, redemption, sale,
exchange, or other disposition of those intangible assets.
(12) Amounts received from hedging transactions
involving intangible assets.
"Hedging transaction" means a transaction related to the
taxpayer's trading function involving futures and options
transactions for the purpose of hedging price risk of the
products or commodities consumer, produced, or sold by the
taxpayer.
"Human trafficking" means a violation or attempted
violation of subsection (d) of Section 10-9 of the Criminal
Code of 2012.
"Manufacturer" means a business entity with manufacturing
as its principal business activity.
"Retail seller" means a business entity with retail trade
as its principal business activity.
"Slavery" means a violation or attempted violation of
subsection (b) of Section 10-9 of the Criminal Code of 2012.
"Treasury function" means the pooling, management, and
investment of intangible assets for the purpose of satisfying
the cash flow needs of the taxpayer's trade or business, such
as providing liquidity for a taxpayer's business cycle,
providing a reserve for business contingencies, and business
acquisitions, and also includes the use of futures contracts

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and options contracts to hedge foreign currency fluctuations.
A taxpayer principally engaged in the trade or business of
purchasing and selling intangible assets of the type typically
held in a taxpayer's treasury function, such as a registered
broker-dealer, is not performing a treasury function with
respect to income so produced.
Section 15. Retail and manufacturing.
(a) Every retail seller and manufacturer doing business in
this State and having annual worldwide gross receipts that
exceed $100,000,000 shall disclose its efforts to eradicate
slavery, human trafficking, and child labor from its direct
supply chain for tangible goods offered for sale.
(b) The disclosure shall be posted on the retail seller's
or manufacturer's website with a conspicuous and easily
understood link to the required information placed on the
homepage of the business. If the retail seller or manufacturer
does not have a website, the manufacturer shall provide the
written disclosure within 30 days of receiving a written
request for the disclosure from a consumer.
(c) The disclosure shall, at a minimum, disclose to what
extent, if any, the retail seller or manufacturer does each of
the following:
(1) Engages in the verification of product supply
chains to evaluate and address risks of slavery, human
trafficking, and child labor. The disclosure shall specify

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if the verification was not conducted by a third party.
(2) Conducts audits of suppliers to evaluate supplier
compliance with company standards for the elimination of
slavery, trafficking, and child labor in supply chains.
The disclosure shall specify if the audit was not an
independent, unannounced audit.
(3) Requires direct suppliers to certify that
materials incorporated into the product comply with the
laws regarding slavery and human trafficking of the
country or countries in which they are doing business.
(4) Maintains internal accountability standards and
procedures for employees or contractors failing to meet
company standards the elimination of regarding slavery,
human trafficking, and child labor.
(5) Provides company employees and management who have
direct responsibility for supply chain management training
on slavery, human trafficking, and child labor,
particularly with respect to mitigating risks within the
supply chains of products.
(d) The exclusive remedy for a violation of this Act shall
be an action brought by the Attorney General for injunctive
relief. Nothing in this Act shall limit remedies available for
a violation of any other State or federal law.
Section 20. Companies subject to disclosure.
(a) Notwithstanding any provision of law, the Department

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of Revenue shall make available to the Attorney General a list
of retail sellers and manufacturers required to disclose
efforts to eradicate slavery, human trafficking, and child
labor pursuant to this Act.
(b) The list shall be based on tax returns filed for
taxable years beginning on or after January 1, 2021.
(c) The list required by this Section shall be submitted
annually to the Attorney General by November 30, 2021, and
each November 30 thereafter. The list shall be derived from
original tax returns received by the Department on or before
December 31, 2020, and each December 31 thereafter.
(d) Each annual list required by this Section shall
include the following information for each retail seller or
manufacturer:
(1) entity name; and
(2) an Illinois tax identification number.
Section 99. Effective date. This Act takes effect January
1, 2022.