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92_SB0603eng SB603 Engrossed LRB9207531DJpr 1 AN ACT in relation to economic assistance. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 1. Short title. This Act may be cited as the 5 State Economic Assistance Accountability Act. 6 Section 5. Definition. In this Act: 7 "Business organization" means a corporation, partnership, 8 limited liability company, joint venture, association, or 9 other enterprise that does business in this State. 10 "Department" means the Illinois Department of Commerce 11 and Community Affairs. 12 "Project" means any specific economic development 13 activity of a commercial, industrial, manufacturing, 14 agricultural, scientific, service, or other business, the 15 result of which causes the creation or retention of jobs, and 16 may include the purchase or lease of machinery and equipment, 17 the lease or purchase of real property or funds for 18 infrastructure necessitated by site preparation, building 19 construction, or related purposes. 20 "State economic assistance" means: (1) tax credits and 21 tax exemptions given as an incentive to a business 22 organization pursuant to a certification or designation made 23 by the Department under the Economic Development for a 24 Growing Economy Tax Credit Act and the Illinois Enterprise 25 Zone Act, including the High Impact Business program; and (2) 26 grants or loans given as an incentive to a business 27 organization pursuant to the Large Business Development Act 28 (Article 10 of the Build Illinois Act). The term does not 29 include assistance (i) given for the purpose of job training, 30 (ii) for the purpose of road construction or improvements, 31 (iii) provided to units of local government, or (iv) for SB603 Engrossed -2- LRB9207531DJpr 1 which the funding source is federal. 2 "Director" means the Director of Commerce and Community 3 Affairs. 4 Section 10. Written agreements containing performance 5 covenants and sanctions. 6 (a) State economic assistance provided by the Department 7 as an incentive to a business organization must be based on 8 the terms of a written incentive agreement between the 9 Department and the business organization. 10 (b) The incentive agreement must identify the specific 11 State economic assistance to be provided to the business 12 organization during the term of the agreement. 13 (c) The incentive agreement must also provide for the 14 following: 15 (1) The business organization is bound to make a 16 specified level of capital investment in a project and 17 cause the creation or retention of a specified level of 18 jobs within a specified time period. 19 (2) If the business organization either fails to 20 make the requisite level of capital investment in the 21 project or fails to create or retain the specified number 22 of jobs within the specified time frame, as provided 23 under the Act authorizing such economic assistance, the 24 business organization shall be deemed to no longer 25 qualify for the State economic assistance. 26 (3) If the business organization receives State 27 economic assistance in the form of a High Impact Business 28 designation pursuant to Section 5.5 of the Illinois 29 Enterprise Zone Act and the business receives the benefit 30 of the exemption authorized under Section 5l of the 31 Retailers' Occupation Tax Act (for the sale of building 32 materials incorporated into a High Impact Business 33 location) and the business organization fails to create SB603 Engrossed -3- LRB9207531DJpr 1 or retain the requisite number of jobs, as determined by 2 the Department, within the period of time specified by 3 the Department, the business organization shall be 4 required to pay to the State the full amount of the State 5 tax exemption that it received as a result of the High 6 Impact Business designation. 7 (4) If the business organization receives a grant 8 pursuant to the Large Business Development Act (Article 9 10 of the Build Illinois Act) and the business 10 organization fails to create or retain the requisite 11 number of jobs, as determined by the Department, within 12 the period of time specified by the Department, the 13 business organization shall be required to repay to the 14 Department a pro rata amount of the grant. That amount 15 shall reflect the percentage of the deficiency between 16 the promised number of jobs to be created or retained by 17 the business organization and the actual number of those 18 jobs in existence as of the date the Department 19 determines the business organization is in breach of the 20 job creation or retention covenants contained in the 21 incentive agreement. 22 (d) The Director may elect to waive enforcement of any 23 contractual right arising out of the incentive agreement 24 required by this Act based on a finding that the waiver will 25 promote the viability of the project, will contribute to an 26 increase in employment associated with the project, or will 27 contribute to the retention of jobs in Illinois associated 28 with the project. 29 Section 15. Applicability. This Act applies to all State 30 economic assistance given by the Department on or after the 31 effective date of this Act. 32 Section 99. Effective date. This Act takes effect upon SB603 Engrossed -4- LRB9207531DJpr 1 becoming law.