SB1798 Summary

• Defines "expatriate corporation" as a publicly traded foreign entity incorporated in a foreign tax haven that derives less than 10% of gross income and employs less than 10% of workers in the tax haven, and was established through acquisition of a U.S. corporation or partnership with former U.S. shareholders retaining over 50% ownership.

• Prohibits expatriate corporations and any member of a unitary business group containing an expatriate corporation from bidding on or entering into contracts with Illinois State agencies under the Procurement Code.

• Designates expatriate corporations as non-resident bidders, making them ineligible for resident bidder preferences in state procurement.

• Defines "foreign tax haven" to include 33 specific countries and territories, plus any other foreign country without substantial business income or activity taxes as determined by the Department of Revenue.

• Requires the Illinois Investment Policy Board to identify expatriate corporations by April 1, 2018, and include them in the list of restricted companies for divestment by state retirement systems.