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|[ Introduced ]||[ Engrossed ]||[ Senate Amendment 002 ]|
90_HB2061enr 20 ILCS 605/46.70 new 30 ILCS 105/5.449 new Amends the Civil Administrative Code of Illinois and the State Finance Act to create the Small Business Incubator Fund. Provides that the Director of Commerce and Community Affairs may make grants to small business incubators dedicated to the successful development of entrepreneurial companies. Provides that the grants shall not exceed 50% of the State income taxes paid in the previous calendar year by qualified businesses leasing space from eligible small business incubators. Provides that an amount equal to 50% of these taxes shall be annually appropriated to the fund. Establishes an application process for grants and limitations on the use of the grants. Effective immediately. LRB9005374PTcw HB2061 Enrolled LRB9005374PTcw 1 AN ACT concerning small businesses. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Civil Administrative Code of Illinois is 5 amended by adding Section 46.70 as follows: 6 (20 ILCS 605/46.70 new) 7 (Section scheduled to be repealed on December 31, 2002) 8 Sec. 46.70. Small business incubator grants. 9 (a) Subject to availability of funds in the Small 10 Business Incubator Fund, the Director of Commerce and 11 Community Affairs may make grants to eligible small business 12 incubators in an amount not to exceed 50% of State income 13 taxes paid in the previous calendar year by qualified tenant 14 businesses subject to the restrictions of this Section. 15 (b) There is created a special fund in the State 16 Treasury known as the Small Business Incubator Fund. The 17 money in the Fund may be used only for making grants under 18 subsection (a) of this Section. The Department of Revenue 19 shall certify by March 1 of each year to the General 20 Assembly the amount of State income taxes paid by qualified 21 tenant businesses in the previous year. The Department of 22 Revenue may, by rule, prescribe forms necessary to identify 23 qualified tenant businesses under this Section. An amount 24 equal to 50% of the amount certified by the Department of 25 Revenue shall be appropriated into the Fund annually. 26 (c) Eligible small business incubators that receive a 27 grant under this Section may use the grant only for capital 28 improvements on the building housing the eligible small 29 business incubator. Each small business incubator shall be 30 eligible for a grant equal to no more than 50% of the amount 31 of State income taxes paid in the previous year by qualified HB2061 Enrolled -2- LRB9005374PTcw 1 tenant businesses of the small business incubator, minus 2 administrative costs. The eligible small business incubator 3 must keep written records of the use of the grant money for a 4 period of 5 years from disbursement. 5 (d) By April 1 of each year, an eligible small business 6 incubator may apply for a grant under this Section on forms 7 developed by the Department. The Department may require 8 applicants to provide proof of eligibility. Upon review of 9 the applications, the Director of Commerce and Community 10 Affairs shall approve or disapprove the application. At the 11 start of each fiscal year or upon approval of the budget for 12 that fiscal year, whichever is later, the Director shall 13 determine the amount of funds available for grants under this 14 Section and shall then approve the grants. 15 (e) For purposes of this Section: 16 (1) "eligible small business incubator" means an 17 entity that is dedicated to the successful development of 18 entrepreneurial companies, has a specific written policy 19 identifying requirements for a business "to graduate" 20 from the incubator, either owns or leases real estate in 21 which qualified tenant businesses operate, and provides 22 all of the following services: management guidance, 23 rental spaces, shared basic business equipment, 24 technology support services, and assistance in obtaining 25 financing. 26 (2) "qualified tenant business" means a business 27 that currently leases space from an eligible small 28 business incubator, is less than 5 years old, and either 29 has not fulfilled the eligible small business incubator's 30 graduation requirements or has fulfilled these 31 requirements within the last 5 years. 32 (f) Five percent of the amount that is appropriated 33 annually into the Small Business Incubator Fund shall be 34 allotted to the Department of Commerce and Community Affairs HB2061 Enrolled -3- LRB9005374PTcw 1 for the purpose of administering, overseeing, and evaluating 2 the grant process and outcome. 3 (g) This Section is repealed on December 31, 2002. The 4 evaluation of the effectiveness of the grant process and 5 subsequent outcome of job and business creation shall 6 recommend the continuation or the repeal of this Section and 7 shall be submitted to the Governor and the General Assembly 8 before December 31, 2001. 9 Section 10. The State Finance Act is amended by adding 10 Section 5.449 as follows: 11 (30 ILCS 105/5.449 new) 12 Sec. 5.449. The Small Business Incubator Fund. 13 Section 99. Effective date. This Act takes effect upon 14 becoming law.
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