Bill Text: IL SB3711 | 2011-2012 | 97th General Assembly | Engrossed

---

Bill Title: Amends the Corporate Accountability for Tax Expenditures Act. Provides that the Department of Commerce and Economic Opportunity shall post on its website (i) the identity of each recipient from whom amounts were recaptured, (ii) the amount recaptured, and (iii) the identity of each recipient receiving a waiver of the recapture provisions.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Failed) 2013-01-08 - Session Sine Die [SB3711 Detail]

Download: Illinois-2011-SB3711-Engrossed.html

---

SB3711 Engrossed LRB097 20174 HLH 65583 b
AN ACT concerning revenue.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Corporate Accountability for Tax
Expenditures Act is amended by changing Section 25 as follows:
(20 ILCS 715/25)
Sec. 25. Recapture.
(a) All development assistance agreements shall contain,
at a minimum, the following recapture provisions:
(1) The recipient must (i) make the level of capital
investment in the economic development project specified
in the development assistance agreement; (ii) create or
retain, or both, the requisite number of jobs, paying not
less than specified wages for the created and retained
jobs, within and for the duration of the time period
specified in the legislation authorizing, or the
administrative rules implementing, the development
assistance programs and the development assistance
agreement.
(2) If the recipient fails to create or retain the
requisite number of jobs within and for the time period
specified, in the legislation authorizing, or the
administrative rules implementing, the development

SB3711 Engrossed - 2 - LRB097 20174 HLH 65583 b
assistance programs and the development assistance
agreement, the recipient shall be deemed to no longer
qualify for the State economic assistance and the
applicable recapture provisions shall take effect.
(3) If the recipient receives State economic
assistance in the form of a High Impact Business
designation pursuant to Section 5.5 of the Illinois
Enterprise Zone Act and the business receives the benefit
of the exemption authorized under Section 5l of the
Retailers' Occupation Tax Act (for the sale of building
materials incorporated into a High Impact Business
location) and the recipient fails to create or retain the
requisite number of jobs, as determined by the legislation
authorizing the development assistance programs or the
administrative rules implementing such legislation, or
both, within the requisite period of time, the recipient
shall be required to pay to the State the full amount of
the State tax exemption that it received as a result of the
High Impact Business designation.
(4) If the recipient receives a grant or loan pursuant
to the Large Business Development Program, the Business
Development Public Infrastructure Program, or the
Industrial Training Program and the recipient fails to
create or retain the requisite number of jobs for the
requisite time period, as provided in the legislation
authorizing the development assistance programs or the

SB3711 Engrossed - 3 - LRB097 20174 HLH 65583 b
administrative rules implementing such legislation, or
both, or in the development assistance agreement, the
recipient shall be required to repay to the State a pro
rata amount of the grant; that amount shall reflect the
percentage of the deficiency between the requisite number
of jobs to be created or retained by the recipient and the
actual number of such jobs in existence as of the date the
Department determines the recipient is in breach of the job
creation or retention covenants contained in the
development assistance agreement. If the recipient of
development assistance under the Large Business
Development Program, the Business Development Public
Infrastructure Program, or the Industrial Training Program
ceases operations at the specific project site, during the
5-year period commencing on the date of assistance, the
recipient shall be required to repay the entire amount of
the grant or to accelerate repayment of the loan back to
the State.
(5) If the recipient receives a tax credit under the
Economic Development for a Growing Economy tax credit
program, the development assistance agreement must provide
that (i) if the number of new or retained employees falls
below the requisite number set forth in the development
assistance agreement, the allowance of the credit shall be
automatically suspended until the number of new and
retained employees equals or exceeds the requisite number

SB3711 Engrossed - 4 - LRB097 20174 HLH 65583 b
in the development assistance agreement; (ii) if the
recipient discontinues operations at the specific project
site during the 5-year period after the beginning of the
first tax year for which the Department issues a tax credit
certificate, the recipient shall forfeit all credits taken
by the recipient during such 5-year period; and (iii) in
the event of a revocation or suspension of the credit, the
Department shall contact the Director of Revenue to
initiate proceedings against the recipient to recover
wrongfully exempted Illinois State income taxes and the
recipient shall promptly repay to the Department of Revenue
any wrongfully exempted Illinois State income taxes. The
forfeited amount of credits shall be deemed assessed on the
date the Department contacts the Department of Revenue and
the recipient shall promptly repay to the Department of
Revenue any wrongfully exempted Illinois State income
taxes.
(b) The Director may elect to waive enforcement of any
contractual provision arising out of the development
assistance agreement required by this Act based on a finding
that the waiver is necessary to avert an imminent and
demonstrable hardship to the recipient that may result in such
recipient's insolvency or discharge of workers. If a waiver is
granted, the recipient must agree to a contractual
modification, including recapture provisions, to the
development assistance agreement. The existence of any waiver

SB3711 Engrossed - 5 - LRB097 20174 HLH 65583 b
granted pursuant to this subsection (c), the date of the
granting of such waiver, and a brief summary of the reasons
supporting the granting of such waiver shall be disclosed
consistent with the provisions of Section 25 of this Act.
(b-5) The Department shall publish, on its website, (i) the
identity of each recipient from whom amounts were recaptured
under this Section, (ii) the amount recaptured, and (iii) the
identity of each recipient receiving a waiver under subsection
(b) of this Section.
(c) Beginning June 1, 2004, the Department shall annually
compile a report on the outcomes and effectiveness of recapture
provisions by program, including but not limited to: (i) the
total number of companies that receive development assistance
as defined in this Act; (ii) the total number of recipients in
violation of development agreements with the Department; (iii)
the total number of completed recapture efforts; (iv) the total
number of recapture efforts initiated; and (v) the number of
waivers granted. This report shall be disclosed consistent with
the provisions of Section 20 of this Act.
(d) For the purposes of this Act, recapture provisions do
not include the Illinois Department of Transportation Economic
Development Program, any grants under the Industrial Training
Program that are not given as an incentive to a recipient
business organization, or any successor programs as described
in the term "development assistance" in Section 5 of this Act.
(Source: P.A. 97-2, eff. 5-6-11.)