Illinois 2023-2024 Regular Session

Illinois Senate Bill SB1375 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 SB1375 Introduced 2/6/2023, by Sen. Ram Villivalam SYNOPSIS AS INTRODUCED: New Act Creates the Phase Out Corporate Giveaways 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 not to offer or provide any company-specific tax incentive or company-specific grant to any entity for a corporate headquarters, manufacturing facility, office space, or other real estate development located in any other member state as an inducement for the corporate headquarters, manufacturing facility, office space, or other real estate development to relocate to the offering member state. Defines terms. Excludes: (1) workforce development grants that train employees; (2) company-specific tax incentives or company-specific grants from local governments; and (3) specified company-specific tax incentives or company-specific grants related to companies already within the member state. Creates the Phase Out Corporate Giveaways Board and provides for membership and meeting requirements. Provides for withdrawal of a member state with a 6-month written notice to each member state's chief executive officer. Contains construction and severability provisions. LRB103 26419 AWJ 52782 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1375 Introduced 2/6/2023, by Sen. Ram Villivalam SYNOPSIS AS INTRODUCED: New Act New Act Creates the Phase Out Corporate Giveaways 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 not to offer or provide any company-specific tax incentive or company-specific grant to any entity for a corporate headquarters, manufacturing facility, office space, or other real estate development located in any other member state as an inducement for the corporate headquarters, manufacturing facility, office space, or other real estate development to relocate to the offering member state. Defines terms. Excludes: (1) workforce development grants that train employees; (2) company-specific tax incentives or company-specific grants from local governments; and (3) specified company-specific tax incentives or company-specific grants related to companies already within the member state. Creates the Phase Out Corporate Giveaways Board and provides for membership and meeting requirements. Provides for withdrawal of a member state with a 6-month written notice to each member state's chief executive officer. Contains construction and severability provisions. LRB103 26419 AWJ 52782 b LRB103 26419 AWJ 52782 b A BILL FOR
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1375 Introduced 2/6/2023, by Sen. Ram Villivalam SYNOPSIS AS INTRODUCED:
3	3	New Act New Act
4	4	New Act
5	5	Creates the Phase Out Corporate Giveaways 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 not to offer or provide any company-specific tax incentive or company-specific grant to any entity for a corporate headquarters, manufacturing facility, office space, or other real estate development located in any other member state as an inducement for the corporate headquarters, manufacturing facility, office space, or other real estate development to relocate to the offering member state. Defines terms. Excludes: (1) workforce development grants that train employees; (2) company-specific tax incentives or company-specific grants from local governments; and (3) specified company-specific tax incentives or company-specific grants related to companies already within the member state. Creates the Phase Out Corporate Giveaways Board and provides for membership and meeting requirements. Provides for withdrawal of a member state with a 6-month written notice to each member state's chief executive officer. Contains construction and severability provisions.
6	6	LRB103 26419 AWJ 52782 b LRB103 26419 AWJ 52782 b
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8	8	A BILL FOR
9	9	SB1375LRB103 26419 AWJ 52782 b SB1375 LRB103 26419 AWJ 52782 b
10	10	SB1375 LRB103 26419 AWJ 52782 b
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 Phase
15	15	5 Out Corporate Giveaways Act.
16	16	6 Section 5. Execution of compact. The Phase Out Corporate
17	17	7 Giveaways 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 "PHASE OUT CORPORATE GIVEAWAYS 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:
28	28	18 "Corporate giveaway" means any company-specific grant or
29	29	19 company-specific tax incentive.
30	30	20 "Company-specific grant" means any disbursement of funds
31	31	21 via property, cash, or deferred tax liability by the state
32	32	22 government to a particular company.
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36	36	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1375 Introduced 2/6/2023, by Sen. Ram Villivalam SYNOPSIS AS INTRODUCED:
37	37	New Act New Act
38	38	New Act
39	39	Creates the Phase Out Corporate Giveaways 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 not to offer or provide any company-specific tax incentive or company-specific grant to any entity for a corporate headquarters, manufacturing facility, office space, or other real estate development located in any other member state as an inducement for the corporate headquarters, manufacturing facility, office space, or other real estate development to relocate to the offering member state. Defines terms. Excludes: (1) workforce development grants that train employees; (2) company-specific tax incentives or company-specific grants from local governments; and (3) specified company-specific tax incentives or company-specific grants related to companies already within the member state. Creates the Phase Out Corporate Giveaways Board and provides for membership and meeting requirements. Provides for withdrawal of a member state with a 6-month written notice to each member state's chief executive officer. Contains construction and severability provisions.
40	40	LRB103 26419 AWJ 52782 b LRB103 26419 AWJ 52782 b
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42	42	A BILL FOR
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48	48	New Act
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67	67	1 "Company-specific tax incentive" means any change in the
68	68	2 general tax rate or valuation offered or presented to a
69	69	3 specific company that is not available to other
70	70	4 similarly-situated companies.
71	71	5 "Located in any other member state" means physically
72	72	6 located in another member state, whether or not the company
73	73	7 has other property in the member state.
74	74	8 "Member state" means any state or the District of Columbia
75	75	9 that has entered into this compact.
76	76	10 ARTICLE 3: FINDINGS
77	77	11 The member states find that:
78	78	12 (1) corporate giveaways are among the least effective
79	79	13 uses of taxpayer dollars to create and maintain jobs;
80	80	14 (2) local and state leaders are in a prisoners'
81	81	15 dilemma where it is best for all to create a level playing
82	82	16 field for all employers without any corporate giveaways,
83	83	17 but each level of government has an incentive to subsidize
84	84	18 a company, which generates a race to the bottom;
85	85	19 (3) governments should attract and retain companies
86	86	20 based on general conditions (including, but not limited
87	87	21 to, modern infrastructure, an educated workforce, a clean
88	88	22 environment, and a favorable tax and regulatory climate)
89	89	23 that are not based on a specific grant for a particular
90	90	24 company;
91	91	25 (4) corporate giveaways fuel business inequality as
92	92	26 only the largest businesses receive the vast majority of
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103	103	1 these funds;
104	104	2 (5) a reasonable first step in phasing out corporate
105	105	3 giveaways is an anti-poaching agreement among state
106	106	4 governments prohibiting state company-specific tax
107	107	5 incentives and state company-specific grants as an
108	108	6 inducement for entities to relocate existing facilities;
109	109	7 and
110	110	8 (6) creating a national board of gubernatorial
111	111	9 appointees charged with finding consensus around
112	112	10 improvements to this compact over time in a phased
113	113	11 approach will assist states in escaping from the
114	114	12 prisoners' dilemma and implementing a level playing field
115	115	13 for all employers.
116	116	14 ARTICLE 4: POACHING PROHIBITION
117	117	15 Each member state is prohibited from offering or providing
118	118	16 any company-specific tax incentive or company-specific grant
119	119	17 to any entity for a corporate headquarters, manufacturing
120	120	18 facility, office space, or other real estate development
121	121	19 located in any other member state as an inducement for the
122	122	20 corporate headquarters, manufacturing facility, office space,
123	123	21 or other real estate development to relocate to the offering
124	124	22 member state.
125	125	23 ARTICLE 5: EXCLUSIONS
126	126	24 The following are not subject to this compact:
127	127	25 (1) Workforce development grants that train employees
128	128	26 (2) Company-specific tax incentives or
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139	139	1 company-specific grants from local governments.
140	140	2 (3) State company-specific tax incentives or state
141	141	3 company-specific grants to entities with corporate
142	142	4 headquarters, office space, manufacturing facilities, or
143	143	5 real estate developments already located within its own
144	144	6 state with the goal to keep within the member state or
145	145	7 expand within the member state the in-state facility or
146	146	8 development.
147	147	9 ARTICLE 6: WITHDRAWAL
148	148	10 Any member state may withdraw from this compact with
149	149	11 6-months' written notice to the chief executive officer of
150	150	12 every other member state to the compact.
151	151	13 ARTICLE 7: ENFORCEMENT
152	152	14 The attorney general of each member state shall enforce
153	153	15 this compact.
154	154	16 A taxpaying resident of any member state has standing in
155	155	17 the courts of any member state to require the attorney general
156	156	18 of that member state to enforce this compact.
157	157	19 ARTICLE 8: BOARD
158	158	20 The Phase Out Corporate Giveaways Board is established
159	159	21 upon the second member state entering into this compact. Each
160	160	22 chief executive officer of each member state shall appoint one
161	161	23 member to the Board. The Board shall accept appointees from
162	162	24 non-member states that wish to appoint a member of the Board.
163	163	25 The purpose of the Board is to publish suggested revisions to
164	164	26 this compact in December of every year to continue to phase out
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175	175	1 those forms of corporate giveaways that the Board finds
176	176	2 reasonable to include as suggested revisions to the compact
177	177	3 for member states to consider implementing. The Board shall
178	178	4 convene at least annually, elect officers from its membership,
179	179	5 establish rules and procedures for its governance, and publish
180	180	6 a report in December of every year that includes suggested
181	181	7 revisions and improvements to this compact. The Board shall
182	182	8 collect testimony from all interested parties, including
183	183	9 organizations and associations representing state legislators,
184	184	10 taxpayers, and subject matter experts, on how the compact can
185	185	11 be improved and strengthened.
186	186	12 ARTICLE 9: CONSTRUCTION AND SEVERABILITY
187	187	13 This compact shall be liberally construed so as to
188	188	14 effectuate its purposes.
189	189	15 If any provision of this compact, or the applicability of
190	190	16 any provision of this compact to any government, agency,
191	191	17 person or circumstance, is declared in a final judgment by a
192	192	18 court of competent jurisdiction to be contrary to the
193	193	19 Constitution of the United States or is otherwise held
194	194	20 invalid, the validity of the remainder of this compact and the
195	195	21 applicability of the remainder of this compact to any
196	196	22 government, agency, person, or circumstance shall not be
197	197	23 affected.
198	198	24 If this compact is held to be contrary to the constitution
199	199	25 of any member state, the compact shall remain in full force and
200	200	26 effect as to the remaining member states and in full force and
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211	211	1 effect as to the affected member state as to all severable
212	212	2 matters."
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