Illinois 2023-2024 Regular Session

Illinois House Bill HB2451 Compare Versions

Only one version of the bill is available at this time.

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1	1	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2451 Introduced , by Rep. Gregg Johnson SYNOPSIS AS INTRODUCED: New Act Creates the Company-Specific Subsidy Interstate Compact. Enters into the compact, which may be entered into by any state and the District of Columbia, in which each member state agrees to not offer company-specific subsidies for companies currently located in or considering locating in the member state, including, but not limited to, for corporate headquarters, manufacturing facilities, office space, or other real estate developments. Excludes existing company-specific subsidies (until terms change, are renewed, or are reenacted) and workforce development grants. Creates the Interstate Company-Specific Subsidy Board upon the second member state entering into the compact. Provides for withdrawal of a member state with 6 months' written notice. Defines terms. LRB103 27234 AWJ 53605 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2451 Introduced , by Rep. Gregg Johnson SYNOPSIS AS INTRODUCED: New Act New Act Creates the Company-Specific Subsidy Interstate Compact. Enters into the compact, which may be entered into by any state and the District of Columbia, in which each member state agrees to not offer company-specific subsidies for companies currently located in or considering locating in the member state, including, but not limited to, for corporate headquarters, manufacturing facilities, office space, or other real estate developments. Excludes existing company-specific subsidies (until terms change, are renewed, or are reenacted) and workforce development grants. Creates the Interstate Company-Specific Subsidy Board upon the second member state entering into the compact. Provides for withdrawal of a member state with 6 months' written notice. Defines terms. LRB103 27234 AWJ 53605 b LRB103 27234 AWJ 53605 b A BILL FOR
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2451 Introduced , by Rep. Gregg Johnson SYNOPSIS AS INTRODUCED:
3	3	New Act New Act
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5	5	Creates the Company-Specific Subsidy Interstate Compact. Enters into the compact, which may be entered into by any state and the District of Columbia, in which each member state agrees to not offer company-specific subsidies for companies currently located in or considering locating in the member state, including, but not limited to, for corporate headquarters, manufacturing facilities, office space, or other real estate developments. Excludes existing company-specific subsidies (until terms change, are renewed, or are reenacted) and workforce development grants. Creates the Interstate Company-Specific Subsidy Board upon the second member state entering into the compact. Provides for withdrawal of a member state with 6 months' written notice. Defines terms.
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9	9	HB2451LRB103 27234 AWJ 53605 b HB2451 LRB103 27234 AWJ 53605 b
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11	11	1 AN ACT concerning State government.
12	12	2 Be it enacted by the People of the State of Illinois,
13	13	3 represented in the General Assembly:
14	14	4 Section 1. Short title. This Act may be cited as the
15	15	5 Company-Specific Subsidy Interstate Compact Act.
16	16	6 Section 5. Execution of compact. The Company-Specific
17	17	7 Subsidy Interstate Compact is hereby enacted into law and
18	18	8 entered into with any state or the District of Columbia which
19	19	9 legally joins in substantially the following form:
20	20	10 COMPANY-SPECIFIC SUBSIDY INTERSTATE COMPACT
21	21	11 The contracting states agree that:
22	22	12 ARTICLE 1: MEMBERSHIP
23	23	13 Any state of the United States and the District of
24	24	14 Columbia may become a member state of this compact by enacting
25	25	15 this compact.
26	26	16 ARTICLE 2: DEFINITIONS
27	27	17 As used in this compact:
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31	31	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2451 Introduced , by Rep. Gregg Johnson SYNOPSIS AS INTRODUCED:
32	32	New Act New Act
33	33	New Act
34	34	Creates the Company-Specific Subsidy Interstate Compact. Enters into the compact, which may be entered into by any state and the District of Columbia, in which each member state agrees to not offer company-specific subsidies for companies currently located in or considering locating in the member state, including, but not limited to, for corporate headquarters, manufacturing facilities, office space, or other real estate developments. Excludes existing company-specific subsidies (until terms change, are renewed, or are reenacted) and workforce development grants. Creates the Interstate Company-Specific Subsidy Board upon the second member state entering into the compact. Provides for withdrawal of a member state with 6 months' written notice. Defines terms.
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37	37	A BILL FOR
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43	43	New Act
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62	62	1 "Company-specific grant" means a disbursement of funds by
63	63	2 property, cash, or deferred tax liability by the state
64	64	3 government or any subdivision of the state government to a
65	65	4 particular company.
66	66	5 "Company-specific subsidies" means company-specific
67	67	6 grants or company-specific tax incentives.
68	68	7 "Company-specific tax incentive" means a change in the
69	69	8 general tax rate or valuation offered or presented to a
70	70	9 specific company that is not available to other
71	71	10 similarly-situated companies, including, but not limited to, a
72	72	11 tax incentive that is part of a special agreement negotiated
73	73	12 with an official of the state or an official of any subdivision
74	74	13 of the state government.
75	75	14 "Workforce development grants" means grants that train
76	76	15 employees.
77	77	16 ARTICLE 3: FINDINGS
78	78	17 The member states find that:
79	79	18 (1) state governments are caught in a race to the
80	80	19 bottom offering ever-larger company-specific tax breaks or
81	81	20 grants in an attempt to lure large companies to stay or
82	82	21 relocate in their state despite overwhelming evidence that
83	83	22 the company-specific tax breaks are neither an efficient
84	84	23 use of public dollars nor a determining factor in a
85	85	24 company's eventual decision where to locate;
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96	96	1 (2) state governments in the aggregate spend tens of
97	97	2 billions annually on company-specific subsidies;
98	98	3 (3) spending those economic development dollars on
99	99	4 universal infrastructure such as transportation or
100	100	5 education that benefits all employers, not just the few
101	101	6 large for-profit companies that negotiate a special
102	102	7 subsidy, is a far superior use of state budget resources;
103	103	8 (4) the ability of the world's most profitable
104	104	9 companies to set off a bidding war, often in secret,
105	105	10 between states to package the largest subsidy imaginable
106	106	11 in order to lure the company to that state demonstrates
107	107	12 the inherently weak bargaining position of states in any
108	108	13 company-specific subsidy negotiation, which drives up the
109	109	14 prices of these subsidies;
110	110	15 (5) providing special subsidies for one company puts
111	111	16 all the competitors to that company at a disadvantage
112	112	17 since they must pay the full tax rate or operative without
113	113	18 the benefit of the subsidy, which further exacerbates the
114	114	19 largest companies getting even greater market share than
115	115	20 they otherwise would if all companies paid the same tax
116	116	21 rate;
117	117	22 (6) it would be far superior for all employers if
118	118	23 states competed for companies based on their overall
119	119	24 economic condition that all employers enjoyed, including
120	120	25 taxes, infrastructure, workforce, and regulations, and not
121	121	26 on a company-specific subsidy package which only benefits
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132	132	1 a small number of the wealthiest companies;
133	133	2 (7) despite widespread recognition of the wasteful
134	134	3 nature of these company-specific subsidies, no one state
135	135	4 is able to unilaterally end the practice as doing so is
136	136	5 perceived to put that state at a competitive disadvantage
137	137	6 to other states; and
138	138	7 (8) in order to set a level playing field and abolish
139	139	8 the practice of company-specific subsidies, states should
140	140	9 enter into an agreement not to engage in the practice that
141	141	10 becomes binding for any companies located in any state
142	142	11 that is a member of the agreement, especially among
143	143	12 neighboring states, until all 50 states and the District
144	144	13 of Columbia are able to join the agreement.
145	145	14 ARTICLE 4: COMPANY-SPECIFIC SUBSIDIES
146	146	15 Each member state agrees to not offer company-specific
147	147	16 subsidies for companies currently located in or considering
148	148	17 locating in the member state, including, but not limited to,
149	149	18 for corporate headquarters, manufacturing facilities, office
150	150	19 space, or other real estate developments.
151	151	20 ARTICLE 5: EXCLUSIONS
152	152	21 Existing company-specific subsidies are not impacted by
153	153	22 this agreement, since this agreement is not retroactive,
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164	164	1 except that any changes to the terms, including renewals or
165	165	2 reenactments, of any existing company-specific subsidies are
166	166	3 to be considered new company-specific subsidies and not
167	167	4 permitted under this agreement.
168	168	5 Workforce development grants are not subject to this
169	169	6 agreement since the company receiving the grant may benefit,
170	170	7 but the employees receiving the training are the largest
171	171	8 beneficiary.
172	172	9 ARTICLE 6: WITHDRAWAL
173	173	10 A member state may withdraw from this agreement with
174	174	11 6-months' written notice to the chief executive officer of
175	175	12 every other member state to the agreement.
176	176	13 ARTICLE 7: BOARD
177	177	14 The Interstate Company-Specific Subsidy Board is
178	178	15 established upon the second member state entering into this
179	179	16 compact. Each member state shall appoint 5 members to the
180	180	17 Board: one from the chief executive officer; one each from the
181	181	18 majority leader of each legislative chamber; and one each from
182	182	19 the minority leader of each legislative chamber. If a member
183	183	20 state does not have a bicameral legislature, then that member
184	184	21 state shall determine how the 4 appointments by its
185	185	22 legislative leaders shall be made. The Board shall convene at
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196	196	1 least annually, elect officers from its membership, and
197	197	2 establish rules and procedures for its governance.
198	198	3 The purpose of the Board is to determine how this
199	199	4 agreement can be improved and strengthened by collecting
200	200	5 testimony from all interested parties, including
201	201	6 representatives of member states; organizations and
202	202	7 associations representing state legislators; taxpayers; and
203	203	8 subject matter experts. The Board may draft and disseminate
204	204	9 suggested revisions to this agreement from time to time.
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