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91_HB3403
LRB9112523SMpc
1 AN ACT concerning technology.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Department of Commerce and Community
5 Affairs Law of the Civil Administrative Code of Illinois is
6 amended by changing Section 605-355 as follows:
7 (20 ILCS 605/605-355) (was 20 ILCS 605/46.19a in part)
8 Sec. 605-355. Grants for research and development in
9 high technology and service sectors.
10 (a) The Department of Commerce and Community Affairs is
11 authorized to establish a program of grants to universities,
12 community colleges, research institutions, research
13 consortiums, other not-for-profit entities, and Illinois
14 businesses for the purpose of fostering research and
15 development in the high technology and the service sector
16 leading to the development of new products and services that
17 can be marketed by Illinois businesses. All grant awards
18 shall include a contract that may provide for payment of
19 negotiated royalties to the Department if the product or
20 service to be developed by the grantee is subsequently
21 licensed for production.
22 (b) Grants may be awarded to universities and research
23 institutions to assist them in making their faculties and
24 facilities available to Illinois businesses. The grants may
25 be used by a university or research institution for purposes
26 including but not limited to the following: (i) to establish
27 or enhance computerized cataloging of all research labs and
28 university staff and make those catalogues available to
29 Illinois businesses; (ii) to market products developed by the
30 university to Illinois businesses; (iii) to review
31 publications in order to identify, catalog, and inform
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1 Illinois businesses of new practices in areas such as
2 robotics and biotechnology; (iv) to build an on-line,
3 information and technology system that relies on other
4 computerized networks in the United States; and (v) to assist
5 in securing temporary replacement for faculty who are granted
6 a leave of absence from their teaching duties for the purpose
7 of working full-time for an Illinois business to assist that
8 business with technology transfer.
9 (c) Grants may be awarded to universities and research
10 institutions, research consortiums, and other not-for-profit
11 entities for the purpose of identifying and supporting
12 Illinois businesses engaged in high technology and service
13 sector enterprises. The Illinois businesses identified and
14 funded shall include recipients of Small Business Innovation
15 Research Program funds under subsections (e) through (k) of
16 Section 9 of the Small Business Act (15 U.S.C. 638,
17 subsections (e) through (k)). Entities receiving grants under
18 this subsection (c) shall be known as commercialization
19 centers and shall engage in one or more of the following
20 activities:
21 (1) Directing research assistance for new venture
22 creations.
23 (2) General feasibility studies of new venture
24 ideas.
25 (3) Furthering the technical and intellectual
26 skills of the managers and owners of Illinois small
27 businesses.
28 (4) Commercialization of technology and research.
29 (5) Development of prototypes and testing new
30 products.
31 (6) Identifying and assisting in securing
32 financing.
33 (7) Marketing assistance.
34 (8) Assisting Illinois inventors in finding
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1 Illinois manufacturers to produce and market their
2 inventions.
3 A commercialization center may charge a nominal fee or
4 accept royalty agreements for conducting feasibility studies
5 and other services.
6 (d) Grants may be awarded by the Department to Illinois
7 businesses to fund research and consultation arrangements
8 between businesses and universities, community colleges,
9 research institutions, research consortiums, and other
10 not-for-profit entities within this State.
11 The Department shall give priority to Illinois small
12 businesses in awarding grants. Each grant awarded under this
13 subsection (d) shall provide funding for up to 50% of the
14 cost of the research or consultation arrangements, not to
15 exceed $100,000; provided that the grant recipient utilizes
16 Illinois not for profit research and academic institutions to
17 perform the research and development function for which grant
18 funds were requested.
19 (e) Grants may be awarded to research consortiums and
20 other qualified applicants, in conjunction with private
21 sector or federal funding, for other creative systems that
22 bridge university resources and business, technological,
23 production, and development concerns.
24 (f) For the purposes of this Section:
25 "High technology" means any area of research or
26 development designed to foster greater knowledge or
27 understanding in fields such as computer science,
28 electronics, physics, chemistry, or biology for the purpose
29 of producing designing, developing, or improving prototypes
30 and new processes.
31 "Illinois business" means a "small business concern" as
32 defined in 15 U.S.C. 632 that conducts its business
33 primarily in Illinois.
34 "Illinois research institutions" refers to not-for-profit
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1 entities, which include federally funded research
2 laboratories, that conduct research and development
3 activities for the purpose of producing, designing,
4 developing, or improving prototypes and new processes.
5 "Other not-for-profit entities" means nonprofit
6 organizations based in Illinois that are primarily devoted
7 to new enterprise or product development.
8 "Private sector" has the meaning ascribed to it in 29
9 U.S.C. 1503.
10 "University" means either a degree granting institution
11 located in Illinois as defined in Section 2 of the Academic
12 Degree Act, or a State-supported institution of higher
13 learning administered by the Board of Trustees of the
14 University of Illinois, the Board of Trustees of Southern
15 Illinois University, the Board of Trustees of Chicago State
16 University, the Board of Trustees of Eastern Illinois
17 University, the Board of Trustees of Governors State
18 University, the Board of Trustees of Illinois State
19 University, the Board of Trustees of Northeastern Illinois
20 University, the Board of Trustees of Northern Illinois
21 University, the Board of Trustees of Western Illinois
22 University, or the Illinois Community College Board.
23 "Venture" means any Illinois business engaged in research
24 and development to create new products or services with high
25 growth potential.
26 (g) The Department may establish a program of grant
27 assistance on a matching basis to universities, community
28 colleges, small business development centers, community
29 action agencies and other not-for-profit economic development
30 agencies to encourage new enterprise development and new
31 business formation and to encourage enterprises in this
32 State. The Department may provide grants, which shall be
33 exempt from the provisions of Section 35-360, to
34 universities, community colleges, small business development
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1 centers, community action agencies, and other not-for-profit
2 economic development entities for the purpose of making loans
3 to small businesses. All grant applications shall contain
4 information as required by the Department, including the
5 following: a program operation plan; a certification and
6 assurance that the small business applicants have received
7 business development training or education, have a business
8 and finance plan, and have experience in the proposed
9 business area; and a description of the support services that
10 the grant recipient will provide to the small business. No
11 more than 10% of the grant may be used by the grant recipient
12 for administrative costs associated with the grant. Grant
13 recipients may use grant funds under this program to make
14 loans on terms and conditions favorable to the small business
15 and shall give priority to those businesses located in high
16 poverty areas, enterprise zones, or both.
17 (Source: P.A. 90-454, eff. 8-16-97; 91-239, eff. 1-1-00.)