State of Illinois
91st General Assembly
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91_SB0040enr

 
SB40 Enrolled                                  LRB9101877PTmb

 1        AN ACT concerning economic development.

 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:

 4                             ARTICLE 5.

 5        Section  5-1.  Short title.  This Article may be cited as
 6    the Economic Development for a  Growing  Economy  Tax  Credit
 7    Act.

 8        Section  5-3.   Purpose.  The General Assembly finds that
 9    the Illinois economy, although  currently  strong,  is  still
10    highly vulnerable to other states and nations that have major
11    financial  incentive programs for medium-sized and large firm
12    relocations.  Because of  the  incentive  programs  of  these
13    competitor  locations,  Illinois  must move aggressively with
14    new business development investment tools so that Illinois is
15    more competitive in site location decision-making.  The State
16    must not only continue to work with firms to help them locate
17    their new plants and facilities in  Illinois  but  also  must
18    provide   competitive  investment  location  tax  credits  in
19    support of the location and  expansion  of  medium-sized  and
20    large operations of commerce and industry. In an increasingly
21    global economy, Illinois' long-term development would benefit
22    from rational, strategic use of State resources in support of
23    business development and growth.

24        Section 5-5. Definitions.  As used in this Act:
25        "Agreement"  means  the  Agreement between a Taxpayer and
26    the Department under the provisions of Section 5-50  of  this
27    Act.
28        "Applicant" means a Taxpayer that is operating a business
29    located or that the Taxpayer plans to locate within the State
 
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 1    of  Illinois  and that is engaged in interstate or intrastate
 2    commerce  for  the  purpose  of  manufacturing,   processing,
 3    assembling, warehousing, or distributing products, conducting
 4    research  and  development,  providing  tourism  services, or
 5    providing services in interstate commerce, office industries,
 6    or agricultural  processing,  but  excluding  retail,  retail
 7    food,  health, or professional services. "Applicant" does not
 8    include a Taxpayer who closes  or  substantially  reduces  an
 9    operation   at  one  location  in  the  State  and  relocates
10    substantially the same operation to another location  in  the
11    State.  This  does not prohibit a Taxpayer from expanding its
12    operations at another location in the  State,  provided  that
13    existing  operations  of  a similar nature located within the
14    State are not closed or substantially reduced. This also does
15    not prohibit a Taxpayer from moving its operations  from  one
16    location  in  the  State to another location in the State for
17    the purpose of expanding  the  operation  provided  that  the
18    Department  determines  that  expansion  cannot reasonably be
19    accommodated within the municipality in which the business is
20    located,  or  in  the  case  of  a  business  located  in  an
21    incorporated area of the county, within the county  in  which
22    the  business  is  located,  after  conferring with the chief
23    elected official of the municipality  or  county  and  taking
24    into  consideration  any evidence offered by the municipality
25    or county regarding  the  ability  to  accommodate  expansion
26    within the municipality or county.
27        "Committee"   means   the  Illinois  Business  Investment
28    Committee created under Section 5-25 of this Act  within  the
29    Illinois Economic Development Board.
30        "Credit"   means   the   amount  agreed  to  between  the
31    Department and Applicant under this Act, but  not  to  exceed
32    the  Incremental  Income  Tax attributable to the Applicant's
33    project.
34        "Department"  means  the  Department  of   Commerce   and
 
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 1    Community Affairs.
 2        "Director"  means  the Director of Commerce and Community
 3    Affairs.
 4        "Full-time Employee" means an individual who is  employed
 5    for  consideration  for  at  least  35 hours each week or who
 6    renders any other standard of service generally  accepted  by
 7    industry custom or practice as full-time employment.
 8        "Incremental  Income Tax" means the total amount withheld
 9    during  the  taxable  year  from  the  compensation  of   New
10    Employees  under  Article  7  of  the Illinois Income Tax Act
11    arising from employment at a project that is the  subject  of
12    an Agreement.
13        "New Employee" means:
14             (a)  A   Full-time  Employee  first  employed  by  a
15        Taxpayer in  the  project  that  is  the  subject  of  an
16        Agreement and who is hired after the Taxpayer enters into
17        the tax credit Agreement.
18             (b)  The term "New Employee" does not include:
19                  (1)  an employee of the Taxpayer who performs a
20             job   that   was  previously  performed  by  another
21             employee, if that job existed for at least 6  months
22             before hiring the employee;
23                  (2)  an   employee  of  the  Taxpayer  who  was
24             previously employed in Illinois by a Related  Member
25             of  the Taxpayer and whose employment was shifted to
26             the Taxpayer after the Taxpayer entered into the tax
27             credit Agreement; or
28                  (3)  a child, grandchild,  parent,  or  spouse,
29             other  than  a  spouse who is legally separated from
30             the individual, of any individual who has  a  direct
31             or  an indirect ownership interest of at least 5% in
32             the profits, capital, or value of the Taxpayer.
33             (c)  Notwithstanding  paragraph  (1)  of  subsection
34        (b), an employee may be considered a New  Employee  under
 
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 1        the  Agreement  if  the  employee performs a job that was
 2        previously performed by an employee who was:
 3                  (1)  treated  under  the  Agreement  as  a  New
 4             Employee; and
 5                  (2)  promoted by the Taxpayer to another job.
 6             (d)  Notwithstanding subsection (a), the  Department
 7        may  award  Credit  to  an  Applicant  with respect to an
 8        employee hired prior to the date of the Agreement if:
 9                  (1)  the Applicant is in receipt  of  a  letter
10             from  the Department stating an intent to enter into
11             a credit Agreement;
12                  (2)  the letter described in paragraph  (1)  is
13             issued  by  the  Department  not  later than 15 days
14             after the effective date of this Act; and
15                  (3)  the employee was hired after the date  the
16             letter described in paragraph (1) was issued.
17        "Noncompliance  Date"  means,  in  the case of a Taxpayer
18    that is not complying with the requirements of the  Agreement
19    or  the  provisions  of  this Act, the day following the last
20    date upon which the  Taxpayer  was  in  compliance  with  the
21    requirements of the Agreement and the provisions of this Act,
22    as determined by the Director, pursuant to Section 5-65.
23        "Pass Through Entity" means an entity that is exempt from
24    the  tax  under  subsection  (b) or (c) of Section 205 of the
25    Illinois Income Tax Act.
26        "Related Member" means a person that, with respect to the
27    Taxpayer during any portion of the taxable year, is  any  one
28    of the following:
29             (1)  An  individual  stockholder, if the stockholder
30        and the members of the stockholder's family  (as  defined
31        in   Section  318  of  the  Internal  Revenue  Code)  own
32        directly, indirectly, beneficially, or constructively, in
33        the  aggregate,  at  least  50%  of  the  value  of   the
34        Taxpayer's outstanding stock.
 
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 1             (2)  A partnership, estate, or trust and any partner
 2        or beneficiary, if the partnership, estate, or trust, and
 3        its  partners  or beneficiaries own directly, indirectly,
 4        beneficially, or constructively,  in  the  aggregate,  at
 5        least 50% of the profits, capitol, stock, or value of the
 6        Taxpayer.
 7             (3)  A  corporation,  and  any  party related to the
 8        corporation in a manner that would require an attribution
 9        of stock from the corporation to the party  or  from  the
10        party  to  the corporation under the attribution rules of
11        Section 318 of the Internal Revenue Code, if the Taxpayer
12        owns    directly,    indirectly,     beneficially,     or
13        constructively   at   least  50%  of  the  value  of  the
14        corporation's outstanding stock.
15             (4)  A corporation and any  party  related  to  that
16        corporation in a manner that would require an attribution
17        of  stock  from  the corporation to the party or from the
18        party to the corporation under the attribution  rules  of
19        Section   318  of  the  Internal  Revenue  Code,  if  the
20        corporation and all  such  related  parties  own  in  the
21        aggregate at least 50% of the profits, capital, stock, or
22        value of the Taxpayer.
23             (5)  A  person  to or from whom there is attribution
24        of stock ownership in accordance with Section 1563(e)  of
25        the  Internal  Revenue  Code,  except,  for  purposes  of
26        determining whether a person is a  Related  Member  under
27        this  paragraph, 20% shall be substituted for 5% wherever
28        5% appears in Section 1563(e)  of  the  Internal  Revenue
29        Code.
30        "Taxpayer" means an individual, corporation, partnership,
31    or other entity that has any Illinois Income Tax liability.

32        Section   5-10.    Powers   of   the   Department.    The
33    Department, in addition to those  powers  granted  under  the
 
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 1    Civil  Administrative  Code of Illinois, is granted and shall
 2    have all the powers necessary or convenient to carry out  and
 3    effectuate   the   purposes   and  provisions  of  this  Act,
 4    including, but not limited to, power and authority to:
 5        (a)  Promulgate procedures, rules, or regulations  deemed
 6    necessary  and  appropriate  for  the  administration  of the
 7    programs; establish forms  for  applications,  notifications,
 8    contracts,  or  any other agreements; and accept applications
 9    at any time during the year.
10        (b)  Provide  and  assist  Taxpayers  pursuant   to   the
11    provisions of this Act, and cooperate with Taxpayers that are
12    parties   to  Agreements  to  promote,  foster,  and  support
13    economic development, capital investment, and job creation or
14    retention within the State.
15        (c)  Enter into agreements and memoranda of understanding
16    for participation of and engage in cooperation with  agencies
17    of   the  federal  government,  local  units  of  government,
18    universities, research foundations or institutions,  regional
19    economic development corporations, or other organizations for
20    the purposes of this Act.
21        (d)  Gather  information  and  conduct  inquiries, in the
22    manner and by the methods as it  deems  desirable,  including
23    without  limitation,  gathering  information  with respect to
24    Applicants for the purpose  of  making  any  designations  or
25    certifications   necessary   or   desirable   or   to  gather
26    information to assist the Committee with  any  recommendation
27    or guidance in the furtherance of the purposes of this Act.
28        (e)  Establish,   negotiate   and  effectuate  any  term,
29    agreement or other document with  any  person,  necessary  or
30    appropriate  to  accomplish  the purposes of this Act; and to
31    consent, subject to the  provisions  of  any  Agreement  with
32    another  party,  to  the modification or restructuring of any
33    Agreement to which the Department is a party.
34        (f)  Fix, determine, charge, and  collect  any  premiums,
 
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 1    fees,   charges,   costs,   and   expenses  from  Applicants,
 2    including,  without   limitation,   any   application   fees,
 3    commitment   fees,   program   fees,  financing  charges,  or
 4    publication  fees  as  deemed  appropriate  to  pay  expenses
 5    necessary or incident to  the  administration,  staffing,  or
 6    operation  in connection with the Department's or Committee's
 7    activities   under   this   Act,    or    for    preparation,
 8    implementation,   and   enforcement   of  the  terms  of  the
 9    Agreement, or for consultation, advisory and legal fees,  and
10    other  costs; however, all fees and expenses incident thereto
11    shall be the responsibility of the Applicant.
12        (g)  Provide   for   sufficient   personnel   to   permit
13    administration,  staffing,  operation,  and  related  support
14    required   to   adequately   discharge   its    duties    and
15    responsibilities  described  in  this  Act  from  funds  made
16    available  through charges to Applicants or from funds as may
17    be   appropriated   by   the   General   Assembly   for   the
18    administration of this Act.
19        (h)  Require Applicants, upon written request,  to  issue
20    any  necessary  authorization  to  the  appropriate  federal,
21    state,  or  local  authority  for  the release of information
22    concerning a project being considered under the provisions of
23    this Act, with the information requested to include, but  not
24    be   limited  to,  financial  reports,  returns,  or  records
25    relating to the Taxpayers' or its project.
26        (i)  Require that a Taxpayer  shall  at  all  times  keep
27    proper  books  of  record  and  account  in  accordance  with
28    generally   accepted   accounting   principles   consistently
29    applied,  with  the  books, records, or papers related to the
30    Agreement in the custody or control of the Taxpayer open  for
31    reasonable  Department  inspection and audits, and including,
32    without limitation,  the  making  of  copies  of  the  books,
33    records, or papers, and the inspection or appraisal of any of
34    the Taxpayer or  project assets.
 
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 1        (j)  Take  whatever  actions are necessary or appropriate
 2    to protect the State's interest in the event  of  bankruptcy,
 3    default,  foreclosure,  or  noncompliance  with the terms and
 4    conditions of financial assistance or participation  required
 5    under  this Act, including the power to sell, dispose, lease,
 6    or rent, upon terms and conditions determined by the Director
 7    to  be  appropriate,  real  or  personal  property  that  the
 8    Department may receive as a result of these actions.

 9        Section  5-15.   Tax  Credit  Awards.  Subject   to   the
10    conditions set forth in this Act, a Taxpayer is entitled to a
11    Credit  against taxes imposed pursuant to subsections (a) and
12    (b) of Section 201 of the Illinois Income Tax Act that may be
13    imposed on the Taxpayer for a taxable year  beginning  on  or
14    after January 1, 1999, if the Taxpayer is awarded a Credit by
15    the Department under this Act for that taxable year.
16        (a)  The  Department  shall make Credit awards under this
17    Act to foster job creation and retention in Illinois.
18        (b) A person that proposes a project to create  new  jobs
19    in  Illinois must enter into an Agreement with the Department
20    for the Credit under this Act.
21        (c) The Credit shall be claimed  for  the  taxable  years
22    specified in the Agreement.
23        (d)  The  Credit  shall not exceed the Incremental Income
24    Tax attributable to the project that is the  subject  of  the
25    Agreement.

26        Section  5-20.   Application for a  project to create and
27    retain new jobs.
28        (a)  Any Taxpayer proposing a project located or  planned
29    to  be  located  in  Illinois  may  request consideration for
30    designation of its  project,  by  formal  written  letter  of
31    request  or by formal application to the Department, in which
32    the Applicant states its intent to make at least a  specified
 
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 1    level of investment and intends to hire or retain a specified
 2    number  of  full-time  employees  at a designated location in
 3    Illinois.   As  circumstances  require,  the  Department  may
 4    require  a  formal application from an Applicant and a formal
 5    letter of request for assistance.
 6        (b)  In order to qualify for Credits under this  Act,  an
 7    Applicant's project must:
 8             (1)  involve an investment of at least $5,000,000 in
 9        capital  improvements  to  be  placed  in  service and to
10        employ at least 25 New Employees within the  State  as  a
11        direct result of the project; or
12             (2)  involve an investment of at least an amount (to
13        be   expressly   specified  by  the  Department  and  the
14        Committee)  in  capital  improvements  to  be  placed  in
15        service and  will  employ  at  least  an  amount  (to  be
16        expressly  specified by the Department and the Committee)
17        of New Employees within  the  State,  provided  that  the
18        Department  and  the  Committee  have determined that the
19        project will provide a substantial  economic  benefit  to
20        the State.
21        (c)  After  receipt of an application, the Department may
22    enter into an Agreement with the Applicant if the application
23    is accepted in accordance with Section 5-25.

24        Section 5-25.   Review of Application.
25        (a)  In  addition  to  those  duties  granted  under  the
26    Illinois  Economic  Development  Board  Act,   the   Illinois
27    Economic  Development  Board shall form a Business Investment
28    Committee for  the  purpose  of  making  recommendations  for
29    applications.   At  the request of the Board, the Director of
30    Commerce and Community Affairs or his or  her  designee,  the
31    Director  of the Bureau of the Budget or his or her designee,
32    the Director of Revenue or his or her designee, the  Director
33    of Employment Security or his or her designee, and an elected
 
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 1    official  of  the affected locality, such as the chair of the
 2    county board or the  mayor,  may  serve  as  members  of  the
 3    Committee to assist with its analysis and deliberations.
 4        (b)  At  the  Department's  request,  the Committee shall
 5    convene, make inquiries, and conduct studies  in  the  manner
 6    and  by the methods as it deems desirable, review information
 7    with respect to  Applicants,  and  make  recommendations  for
 8    projects  to benefit the State.  In making its recommendation
 9    that an Applicant's application for Credit should  or  should
10    not  be  accepted, which shall occur within a reasonable time
11    frame as determined by the nature  of  the  application,  the
12    Committee  shall  determine that all the following conditions
13    exist:
14             (1)  The Applicant's project intends, as required by
15        subsection (b) of  Section  5-20  to  make  the  required
16        investment  in the State and intends to hire the required
17        number of New Employees in Illinois as a result  of  that
18        project.
19             (2)  The  Applicant's  project is economically sound
20        and will benefit the people of the State of  Illinois  by
21        increasing  opportunities  for  employment and strengthen
22        the economy of Illinois.
23             (3)  That, if not for the Credit, the project  would
24        not  occur  in Illinois, which may be demonstrated by any
25        means  including,  but  not  limited  to,  evidence   the
26        Applicant  has  multi-state  location  options  and could
27        reasonably and efficiently locate outside of  the  State,
28        or  demonstration  that at least one other state is being
29        considered for the project, or evidence  the  receipt  of
30        the  Credit is a major factor in the Applicant's decision
31        and that  without the Credit, the Applicant likely  would
32        not  create  new  jobs in Illinois, or demonstration that
33        receiving the Credit  is  essential  to  the  Applicant's
34        decision to create or retain new jobs in the State.
 
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 1             (4)  A  cost  differential is identified, using best
 2        available  data,  in  the   projected   costs   for   the
 3        Applicant's   project   compared  to  the  costs  in  the
 4        competing state, including the impact  of  the  competing
 5        state's   incentive   programs.   The  competing  state's
 6        incentive programs shall include state,  local,  private,
 7        and federal funds available.
 8             (5)  The  political  subdivisions  affected  by  the
 9        project  have  committed local incentives with respect to
10        the project, considering local ability to assist.
11             (6)  Awarding the Credit will result in  an  overall
12        positive  fiscal impact to the State, as certified by the
13        Committee using the best available data.
14             (7)  The Credit is not prohibited by Section 5-35 of
15        this Act.

16        Section 5-30.  Limitation to amount of costs of specified
17    items. The total amount of the Credit allowed during all  tax
18    years  may  not exceed the aggregate amount of costs incurred
19    by the Taxpayer during all prior tax years for the  following
20    items, to the extent provided in the Agreement:
21             (1)  capital  investment, including, but not limited
22        to, equipment, buildings, or land;
23             (2)  infrastructure development;
24             (3)  debt service,  except  refinancing  of  current
25        debt;
26             (4)  research and development;
27             (5)  job training and education;
28             (6)  lease costs; or
29             (7)  relocation costs.

30        Section   5-35.   Relocation  of  jobs  in  Illinois.   A
31    Taxpayer is not entitled to claim the Credit provided by this
32    Act with respect to any jobs that the Taxpayer relocates from
 
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 1    one   site  in  Illinois  to  another   site   in   Illinois.
 2    Determinations  under  this  Section  shall  be  made  by the
 3    Department.

 4        Section 5-40.  Determination of Amount of the Credit.  In
 5    determining the amount of the Credit that should be  awarded,
 6    the  Committee  shall provide guidance on, and the Department
 7    shall take into consideration, the following factors:
 8             (1)  The number and location  of  jobs  created  and
 9        retained  in  relation to the economy of the county where
10        the projected investment is to occur.
11             (2)  The  potential  impact  on   the   economy   of
12        Illinois.
13             (3)  The  magnitude of the cost differential between
14        Illinois and the competing state.
15             (4)  The incremental  payroll  attributable  to  the
16        project.
17             (5)  The  capital  investment  attributable  to  the
18        project.
19             (6)  The  amount  of  the  average wage and benefits
20        paid by  the  Applicant  in  relation  to  the  wage  and
21        benefits of the area of the project.
22             (7)  The   costs   to   Illinois  and  the  affected
23        political subdivisions with respect to the project.
24             (8)  The  financial  assistance  that  is  otherwise
25        provided  by  Illinois   and   the   affected   political
26        subdivisions.

27        Section  5-45.   Amount and duration of the Credit.   The
28    Department shall determine the amount  and  duration  of  the
29    Credit awarded under this Act. The duration of the Credit may
30    not  exceed  10  taxable years. The Credit may be stated as a
31    percentage of the Incremental Income Tax attributable to  the
32    Applicant's   project   and   may   include  a  fixed  dollar
 
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 1    limitation.

 2        Section 5-50.  Contents of  Agreements  with  Applicants.
 3    The   Department  shall  enter  into  an  Agreement  with  an
 4    Applicant that is  awarded  a  Credit  under  this  Act.  The
 5    Agreement must include all of the following:
 6             (1)  A  detailed  description of the project that is
 7        the subject of the Agreement, including the location  and
 8        amount of the investment and jobs created or retained.
 9             (2)  The  duration  of  the  Credit  and  the  first
10        taxable year for which the Credit may be claimed.
11             (3)  The Credit amount that will be allowed for each
12        taxable year.
13             (4)  A  requirement that the Taxpayer shall maintain
14        operations at the project location that shall  be  stated
15        as a minimum number of years not to exceed 10.
16             (5)  A specific method for determining the number of
17        New Employees employed during a taxable year.
18             (6)  A  requirement that the Taxpayer shall annually
19        report to the Department the number of New Employees, the
20        Incremental Income Tax withheld in  connection  with  the
21        New  Employees,  and  any  other information the Director
22        needs to perform the Director's duties under this Act.
23             (7)  A requirement that the Director  is  authorized
24        to verify with the appropriate State agencies the amounts
25        reported  under  paragraph  (6), and after doing so shall
26        issue a certificate to  the  Taxpayer  stating  that  the
27        amounts have been verified.
28             (8)  A  requirement  that the Taxpayer shall provide
29        written notification to the Director  not  more  than  30
30        days after the Taxpayer makes or receives a proposal that
31        would   transfer   the  Taxpayer's  State  tax  liability
32        obligations to a successor Taxpayer.
33             (9)  A detailed description of  the  number  of  New
 
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 1        Employees  to be hired, and the occupation and payroll of
 2        the full-time jobs to be created or retained as a  result
 3        of the project.
 4             (10)  The minimum investment the business enterprise
 5        will  make  in  capital improvements, the time period for
 6        placing the  property  in  service,  and  the  designated
 7        location in Illinois for the investment.
 8             (11)  A  requirement that the Taxpayer shall provide
 9        written notification to the Director  and  the  Committee
10        not  more than 30 days after the Taxpayer determines that
11        the  minimum  job  creation  or   retention,   employment
12        payroll,  or  investment  no  longer  is being or will be
13        achieved or maintained as set  forth  in  the  terms  and
14        conditions of the Agreement.
15             (12)  A  provision  that, if the total number of New
16        Employees falls below a specified level, the allowance of
17        Credit  shall  be  suspended  until  the  number  of  New
18        Employees equals or exceeds the Agreement amount.
19             (13)  A detailed description of the items for  which
20        the  costs  incurred  by the Taxpayer will be included in
21        the limitation on the Credit provided in Section 5-30.
22             (14)  Any other performance conditions  or  contract
23        provisions as the Department determines are appropriate.

24        Section 5-55.  Certificate of verification; submission to
25    the  Department  of  Revenue.   A  Taxpayer claiming a Credit
26    under this Act shall submit to the Department  of  Revenue  a
27    copy of the Director's certificate of verification under this
28    Act  for  the taxable year. However, failure to submit a copy
29    of the certificate with the Taxpayer's tax return  shall  not
30    invalidate a claim for a Credit.
31        For  a  Taxpayer  to  be  eligible  for  a certificate of
32    verification, the Taxpayer shall provide proof as required by
33    the Department prior  to  the  end  of  each  calendar  year,
 
SB40 Enrolled              -15-                LRB9101877PTmb
 1    including,  but  not  limited to, attestation by the Taxpayer
 2    that:
 3             (1)  The  project  has  substantially  achieved  the
 4        level of new full-time jobs specified in its Agreement.
 5             (2)  The  project  has  substantially  achieved  the
 6        level of annual payroll  in  Illinois  specified  in  its
 7        Agreement.
 8             (3)  The  project  has  substantially  achieved  the
 9        level of capital investment in Illinois  specified in its
10        Agreement.

11        Section 5-60. Pass through entity.
12        (a)  The shareholders or partners of a Taxpayer that is a
13    Pass  Through  Entity shall be entitled to the Credit allowed
14    under the Agreement.
15        (b)  The Credit  provided  under  subsection  (a)  is  in
16    addition  to  any Credit to which a shareholder or partner is
17    otherwise entitled under a separate Agreement under this Act.
18    A Pass Through Entity and a shareholder  or  partner  of  the
19    Pass Through Entity may not claim more than one  Credit under
20    the same Agreement.

21        Section  5-65. Noncompliance; notice; assessment.  If the
22    Director determines that a Taxpayer who has received a Credit
23    under this Act is not complying with the requirements of  the
24    Agreement or all of the provisions of this Act,  the Director
25    shall   provide   notice  to  the  Taxpayer  of  the  alleged
26    noncompliance, and allow the Taxpayer  a  hearing  under  the
27    provisions of the Illinois Administrative Procedure Act.  If,
28    after  such  notice  and any hearing, the Director determines
29    that a noncompliance exists, the Director shall issue to  the
30    Department  of  Revenue  notice  to  that effect, stating the
31    Noncompliance Date.


 
SB40 Enrolled              -16-                LRB9101877PTmb
 1        Section 5-70. Annual report. On or  before  July  1  each
 2    year,  the  Committee shall submit a report to the Department
 3    on the tax credit program under this Act to the Governor  and
 4    the General Assembly. The report shall include information on
 5    the  number  of  Agreements that were entered into under this
 6    Act during the preceding calendar year, a description of  the
 7    project  that  is the subject of each Agreement, an update on
 8    the status of projects under Agreements entered  into  before
 9    the  preceding  calendar  year,  and  the  sum of the Credits
10    awarded under this  Act.  A  copy  of  the  report  shall  be
11    delivered  to  the Governor and to each member of the General
12    Assembly.

13        Section 5-75. Evaluation of tax credit  program.    On  a
14    biennial  basis, the Department shall evaluate the tax credit
15    program.  The evaluation shall include an assessment  of  the
16    effectiveness of the program in creating new jobs in Illinois
17    and  of  the revenue impact of the program, and may include a
18    review of the practices and experiences of other states  with
19    similar  programs.  The Director shall submit a report on the
20    evaluation to the Governor and  the  General  Assembly  after
21    June 30 and before November 1 in each odd-numbered year.

22        Section  5-80.   Adoption  of rules.  The Department  may
23    adopt rules necessary to implement this Act.  The  rules  may
24    provide  for  recipients  of  Credits  under  this  Act to be
25    charged fees to cover administrative costs of the tax  credit
26    program.  Fees collected shall be deposited into the Economic
27    Development for a Growing Economy Fund.

28        Section 5-85.  The Economic  Development  for  a  Growing
29    Economy Fund.
30        (a)  The  Economic Development for a Growing Economy Fund
31    is established to be used exclusively  for  the  purposes  of
 
SB40 Enrolled              -17-                LRB9101877PTmb
 1    this  Act,  including  paying  for the costs of administering
 2    this Act. The Fund shall be administered by the Department.
 3        (b)  The Fund consists of collected fees,  appropriations
 4    from the General Assembly, and gifts and grants to the Fund.
 5        (c)  The  State  Treasurer  shall invest the money in the
 6    Fund not currently needed to meet the obligations of the Fund
 7    in the same manner as other public  funds  may  be  invested.
 8    Interest   that  accrues  from  these  investments  shall  be
 9    deposited into the Fund.
10        (d)  The money in the Fund at the end of a  State  fiscal
11    year  remains  in  the  Fund  to  be used exclusively for the
12    purposes of this Act. Expenditures from the Fund are  subject
13    to appropriation by the General Assembly.

14        Section 5-90.  Program Terms and Conditions.
15        (a)  Any  documentary materials or data made available or
16    received by any  member  of  a  Committee  or  any  agent  or
17    employee  of  the Department shall be deemed confidential and
18    shall not be deemed public records to  the  extent  that  the
19    materials  or  data  consists of trade secrets, commercial or
20    financial information regarding the operation of the business
21    conducted by the Applicant for or recipient of any tax credit
22    under this Act, or any information regarding the  competitive
23    position of a business in a particular field of endeavor.
24        (b)  Nothing  in  this Act shall be construed as creating
25    any rights in any Applicant to enter into an Agreement or  in
26    any person to challenge the terms of any Agreement.

27        Section 5-105.  The Civil Administrative Code of Illinois
28    is amended by changing Section 46.62 as follows:

29        (20 ILCS 605/46.62) (from Ch. 127, par. 46.62)
30        Sec.  46.62.   To  establish  and administer a Technology
31    Challenge Grant Program and an Illinois  Advanced  Technology
 
SB40 Enrolled              -18-                LRB9101877PTmb
 1    Enterprise  Development and Investment Program as provided by
 2    the Technology Advancement and Development Act and to  expend
 3    appropriations in accordance therewith.
 4    (Source: P.A. 86-870; 86-1028.)

 5        Section  5-110.   The  State  Finance  Act  is amended by
 6    adding Section 5.490 as follows:

 7        (30 ILCS 105/5.490 new)
 8        Sec. 5.490.   The  Economic  Development  for  a  Growing
 9    Economy Fund.

10        Section 5-115.  The Illinois Income Tax Act is amended by
11    adding Section 211 as follows:

12        (35 ILCS 5/211 new)
13        Sec. 211.  Economic Development for a Growing Economy Tax
14    Credit.  For tax years beginning on or after January 1, 1999,
15    a  Taxpayer  who  has entered an Agreement under the Economic
16    Development for a Growing Economy Tax Credit Act is  entitled
17    to  a  credit against the taxes imposed under subsections (a)
18    and (b) of Section 201  of  this  Act  in  an  amount  to  be
19    determined in the Agreement. If the Taxpayer is a partnership
20    or  Subchapter  S corporation, the credit shall be allowed to
21    the  partners  or  shareholders  in   accordance   with   the
22    determination  of  income  and  distributive  share of income
23    under Sections 702 and 704 and subchapter S of  the  Internal
24    Revenue   Code.  The  Department,  in  cooperation  with  the
25    Department of Commerce and Community Affairs, shall prescribe
26    rules to  enforce  and  administer  the  provisions  of  this
27    Section.   This  Section  is  exempt  from  the provisions of
28    Section 250 of this Act.
29        The credit shall be  subject to the conditions set  forth
30    in the Agreement and the following limitations:
 
SB40 Enrolled              -19-                LRB9101877PTmb
 1             (1)  The tax credit shall not exceed the Incremental
 2        Income  Tax  (as  defined  in Section 5-5 of the Economic
 3        Development for a Growing Economy Tax  Credit  Act)  with
 4        respect to the project.
 5             (2)  The amount of the credit allowed during the tax
 6        year  plus  the sum of all amounts allowed in prior years
 7        shall not exceed 100% of the aggregate amount expended by
 8        the Taxpayer during all prior tax years on approved costs
 9        defined by Agreement.
10             (3)  The amount of the credit shall be determined on
11        an annual basis; however, the credit  against  any  State
12        tax  liability  may  not  extend  beyond 10 taxable years
13        after the project is first approved and  may  not  extend
14        beyond the expiration of the Agreement.
15             (4)  The  credit  may not exceed the amount of taxes
16        imposed pursuant to subsections (a) and  (b)  of  Section
17        201  of  this Act.  Any credit that is unused in the year
18        the credit is computed may be carried forward and applied
19        to the tax liability of the 5 taxable years following the
20        excess credit year.  The credit shall be applied  to  the
21        earliest  year  for  which  there is a tax liability.  If
22        there are credits from more than one tax  year  that  are
23        available to offset a liability, the earlier credit shall
24        be applied first.
25             (5)  No  credit shall be allowed with respect to any
26        Agreement  for  any  taxable  year   ending   after   the
27        Noncompliance  Date.   Upon receiving notification by the
28        Department of  Commerce  and  Community  Affairs  of  the
29        noncompliance  of  a  Taxpayer  with  an  Agreement,  the
30        Department  shall  notify  the Taxpayer that no credit is
31        allowed with respect to that Agreement  for  any  taxable
32        year  ending  after  the Noncompliance Date, as stated in
33        such notification.  If any credit has been  allowed  with
34        respect  to  an Agreement for a taxable year ending after
 
SB40 Enrolled              -20-                LRB9101877PTmb
 1        the Noncompliance Date for  that  Agreement,  any  refund
 2        paid  to the Taxpayer for that taxable year shall, to the
 3        extent of that credit allowed,  be  an  erroneous  refund
 4        within the meaning of Section 912 of this Act.
 5             (6)  For   purposes   of  this  Section,  the  terms
 6        "Agreement",     "Incremental    Income     Tax",     and
 7        "Noncompliance  Date"  have the same meaning as when used
 8        in the Economic Development for  a  Growing  Economy  Tax
 9        Credit Act.

10        Section    5-120.    The   Technology   Advancement   and
11    Development Act is amended by changing Sections  1002,  1003,
12    1004, 2001, 2002, 2003, the Article 3 heading, Sections 3001,
13    3002,  3003,  3004.5  and  4003  and  adding  the Article 3.5
14    heading and Sections 3501, 3505, 3510, 3515, 3520, 3525,  and
15    3530 as follows:

16        (20 ILCS 700/1002) (from Ch. 127, par. 3701-2)
17        Sec.  1002.   Findings  and  declaration  of policy.  The
18    General  Assembly  hereby  finds   that   numerous   economic
19    challenges  confront  the State, including dramatic increases
20    in foreign productivity and global market  competition  which
21    have  forced  a  retrenchment  in  key business sectors and a
22    reduction in high paying manufacturing jobs which threaten to
23    undermine Illinois' standard of living and quality  of  life.
24    In  order  to avoid economic stagnation and decline, Illinois
25    must keep pace with the global  revolution  in  manufacturing
26    technology   that  is  occurring  in  virtually  every  major
27    industrialized  nation   competing   in   the   international
28    marketplace.
29        The  General  Assembly  further finds that an appropriate
30    economic response  would  require  increasing  the  level  of
31    investment  in  research and development; utilizing industry,
32    State and local government, and labor, and academia to create
 
SB40 Enrolled              -21-                LRB9101877PTmb
 1    state-wide programs; and fostering  an  improved  environment
 2    for  productivity  and  technological competitiveness.  These
 3    various programs would utilize Illinois' present resources in
 4    many developing areas including health  care  and  biomedical
 5    research,  information  and telecommunications, computing and
 6    electronic   equipment,   manufacturing   technologies    and
 7    materials research, transportation and aerospace, geoscience,
 8    financial   and   service  industries,  and  agriculture  and
 9    biotechnology.
10        It is the purpose of this Act to  identify,  develop  and
11    commercialize  technology which will permit Illinois firms to
12    successfully  compete  in  today's  world  markets,  and   to
13    authorize    State    and   local   government   to   promote
14    systematically, within the  provisions  of  this  Act,  those
15    private  sector  and  nonprofit  research institution efforts
16    that will serve as intermediaries  to  achieve  the  programs
17    authorized  under  this Act; and continue to insure Illinois'
18    economic   vitality   and   competitiveness    through    (i)
19    commercialization    of   new   technology   products;   (ii)
20    modernization of  services  by  technology  enterprises;  and
21    (iii)  modernization  of  the  industrial  base  of small and
22    medium-sized manufacturers.
23    (Source: P.A. 86-870.)

24        (20 ILCS 700/1003) (from Ch. 127, par. 3701-3)
25        Sec.  1003.   Definitions.   The  following   words   and
26    phrases,  for  the  purposes  of  this  Act,  shall  have the
27    meanings respectively  ascribed  to  them,  except  when  the
28    context  otherwise  requires, or except as otherwise provided
29    in this Act:
30        (a)  "Advanced technology  project"  means  any  area  of
31    basic or applied research or development which is designed to
32    foster  greater  knowledge  or  understanding,  or  which  is
33    designed   for   the   purposes   of   improving,  designing,
 
SB40 Enrolled              -22-                LRB9101877PTmb
 1    developing, prototyping,  producing  or  commercializing  new
 2    products,  techniques,  processes  or  technical  devices  in
 3    present  or  emerging  fields  of  health care and biomedical
 4    research, information and  communication  systems,  computing
 5    and  computer  services, electronics, manufacturing, robotics
 6    and  materials  research,   transportation   and   aerospace,
 7    agriculture and biotechnology, and finance and services.
 8        (b)  "Business    expense"   includes   working   capital
 9    financing, the purchase or lease of machinery and  equipment,
10    or   the  lease  or  purchase  of  real  property,  including
11    construction, renovation, or leasehold improvements, but does
12    not include refinancing current debt.
13        (c)  "Business  project"  means  any  specific   economic
14    development    activity    of   a   commercial,   industrial,
15    manufacturing, agricultural, scientific,  financial,  service
16    or other not-for-profit nature, which is expected to yield an
17    increase  in jobs or to result in the retention of jobs or an
18    improvement in production efficiency.
19        (d)  "Department"  means  the  Illinois   Department   of
20    Commerce and Community Affairs.
21        (e)  "Director"   means  the  Director  of  the  Illinois
22    Department of Commerce and Community Affairs.
23        (f)  "Financial assistance"  means  a  loan,  investment,
24    grant  or the purchase of qualified securities or other means
25    whereby financial aid is made to or on behalf of  a  business
26    project or advanced technology project.
27        "Intermediary   organization"   means  any  participating
28    organization including  not-for-profit  entities,  for-profit
29    entities,  State  development  authorities,  institutions  of
30    higher education, other public or private corporations, which
31    may   include  the  Illinois  Coalition,  or  other  entities
32    necessary or desirable to further the  purpose  of  this  Act
33    engaged  by  the  Department through any contract, agreement,
34    memoranda of understanding, or other cooperative  arrangement
 
SB40 Enrolled              -23-                LRB9101877PTmb
 1    to deliver programs authorized under this Act.
 2        "Investment  loan"  means any loan structured so that the
 3    applicant repays the principal and interest  and  provides  a
 4    qualified  security  investment  to  serve both as additional
 5    loan security and as an additional source of repayment.
 6        (g)  "Loan"  means  acceptance   of   any   note,   bond,
 7    debenture,  or evidence of indebtedness, whether unsecured or
 8    secured by a mortgage, pledge, deed of trust, or  other  lien
 9    on   any  property,  or  any  certificate  of,  receipt  for,
10    participation in, or an option to any of  the  foregoing.   A
11    loan  shall  bear  such  interest  rate,  with  such terms of
12    repayment, secured by such collateral, with other  terms  and
13    conditions,   as  the  Department  shall  deem  necessary  or
14    appropriate.
15        (h)  "Participating lender or investor" means  any  trust
16    company,  bank,  savings  bank,  credit union, merchant bank,
17    investment bank,  broker,  investment  trust,  pension  fund,
18    building  and loan association, savings and loan association,
19    insurance  company,  venture   capital   company   or   other
20    institution,  community  or  State  development  corporation,
21    development  authority authorized to do business by an Act of
22    this State, or other public or private financing intermediary
23    approved by the Department whose purposes include  financing,
24    promoting, or encouraging economic development financing.
25        (i)  "Qualified  security  investments"  means any stock,
26    convertible security,  treasury  stock,  limited  partnership
27    interest,  certificate  of  interest  or participation in any
28    profit  sharing  agreement,  preorganization  certificate  or
29    subscription,  transferable   share,   investment   contract,
30    certificate  of  interest  or  participation  in  a patent or
31    application  or,  in  general,  any  interest  or  instrument
32    commonly known  as  a  "security"  or  any  certificate  for,
33    receipt  for,  guarantee  of,  or option, warrant or right to
34    subscribe to or  purchase  any  of  the  foregoing,  but  not
 
SB40 Enrolled              -24-                LRB9101877PTmb
 1    including  any  instrument  which  contains  voting rights or
 2    which can be  converted  to  contain  voting  rights  in  the
 3    possession of the Department.
 4    (Source: P.A. 88-453.)

 5        (20 ILCS 700/1004) (from Ch. 127, par. 3701-4)
 6        Sec.   1004.   Duties  and  powers.   The  Department  of
 7    Commerce and Community Affairs shall establish and administer
 8    any of the programs authorized under this Act subject to  the
 9    availability  of  funds appropriated by the General Assembly.
10    The Department may a Challenge Grant Program and an  Advanced
11    Technology  Investment  Program  and  shall  make awards from
12    general revenue fund  appropriations,  federal  reimbursement
13    funds,   the   Technology   Cooperation  Fund,  and  the  New
14    Technology Recovery Fund as provided under the provisions  of
15    this  Act.   The  Department,  in  addition  to  those powers
16    granted under The Civil Administrative Code of  Illinois,  is
17    granted   the   following   powers  to  help  administer  the
18    provisions of this Act:
19        (a)  To  provide  financial  assistance  as   direct   or
20    participation grants, loans or qualified security investments
21    to,  or on behalf of, eligible applicants.  Loans, grants and
22    investments shall be  made  for  the  purpose  of  increasing
23    research   and   development,   commercializing   technology,
24    adopting  advanced  production and processing techniques, and
25    promoting job creation and retention within Illinois;
26        (b)  To enter into agreements, accept  funds  or  grants,
27    and  engage  in  cooperation  with  agencies  of  the federal
28    government, local units of government, universities, research
29    foundations or institutions,  regional  economic  development
30    corporations  or other organizations for the purposes of this
31    Act;
32        (c)  To  enter  into  contracts,  and  letter  of  credit
33    agreements, and memoranda of understanding;  and  to  provide
 
SB40 Enrolled              -25-                LRB9101877PTmb
 1    funds  for  participation  agreements  or  to  make any other
 2    agreements or contracts or to invest, grant, or loan funds to
 3    any  participating  intermediary   organizations   including,
 4    not-for-profit  entities, for-profit entities, State agencies
 5    or  authorities,  government  owned  and  contract   operated
 6    facilities,  institutions of higher education, other  lender,
 7    private investor, public or private development  corporations
 8    corporation,  or other entities entity necessary or desirable
 9    to further the purpose of this Act.  Any  such  agreement  or
10    contract  by an intermediary organization to deliver programs
11    authorized under this Act may include  terms  and  provisions
12    including, but not limited to organization and development of
13    documentation, review and approval of projects, servicing and
14    disbursement of funds and other related activities;
15        (d)  To  fix, determine, charge and collect any premiums,
16    fees,  charges,  costs  and   expenses,   including   without
17    limitation,  any  application  fees, commitment fees, program
18    fees, financing charges, or publication  fees  in  connection
19    with the Department's activities under this Act;
20        (e)  To  establish forms for applications, notifications,
21    contracts,  or  any  other  agreements,  and  to   promulgate
22    procedures,   rules   or  regulations  deemed  necessary  and
23    appropriate;
24        (f)  To establish and regulate the terms  and  conditions
25    of the Department's agreements and to consent, subject to the
26    provisions  of  any  agreement  with  another  party,  to the
27    modification or restructuring of any agreement to  which  the
28    Department is a party;
29        (g)  To  require  that recipients of financial assistance
30    shall at all times keep proper books of record and account in
31    accordance  with  generally  accepted  accounting  principles
32    consistently applied, with such  books  open  for  reasonable
33    Department   inspection   and   audits,   including,  without
34    limitation, the making of copies thereof;
 
SB40 Enrolled              -26-                LRB9101877PTmb
 1        (h)  To require applicants or  grantees  receiving  funds
 2    under  this Act to permit the Department to:  (i) inspect and
 3    audit any books, records or papers related to the project  in
 4    the custody or control of the applicant, including the making
 5    of  copies  or extracts thereof, and (ii) inspect or appraise
 6    any of the applicant's or grantee's business assets;
 7        (i)  To require  applicants  or  grantees,  upon  written
 8    request   by   the   Department,   to   issue  any  necessary
 9    authorization to the  appropriate  federal,  State  or  local
10    authority   for  the  release  of  information  concerning  a
11    business or business project financed under the provisions of
12    this Act, with the information requested to include, but  not
13    be   limited  to,  financial  reports,  returns,  or  records
14    relating to that business or business project;
15        (i-5)  To provide staffing, administration,  and  related
16    support required to manage the programs authorized under this
17    Act  and  to pay for staffing and administration from the New
18    Technology Recovery  Fund  as  appropriated  by  the  General
19    Assembly.  Administrative  responsibilities  may include, but
20    are not limited to, research and identification of the  needs
21    of   commerce   and   industry   in  this  State;  design  of
22    comprehensive  statewide  plans  and   programs;   direction,
23    management,   and   control   of   specific   projects;   and
24    communication  and cooperation with entities about technology
25    commercialization and business modernization;
26        (j)  To  take   whatever   actions   are   necessary   or
27    appropriate  to  protect the State's interest in the event of
28    bankruptcy, default, foreclosure or  noncompliance  with  the
29    terms and conditions of financial assistance or participation
30    required  under  this  Act,  including  the  power  to  sell,
31    dispose,  lease or rent, upon terms and conditions determined
32    by the Director to be appropriate, real or personal  property
33    which the Department may receive as a result thereof; and
34        (k)    exercise  such  other  powers  as are necessary to
 
SB40 Enrolled              -27-                LRB9101877PTmb
 1    carry out the purposes of this Act.
 2    (Source: P.A. 88-453.)

 3        (20 ILCS 700/2001) (from Ch. 127, par. 3702-1)
 4        Sec. 2001.  Technology Challenge Grant Program.
 5        (a)  The Department may shall,  subject  to  appropriated
 6    funds,  establish  a  Technology  Challenge  Grant Program to
 7    provide initial grant funding  requirements  to  help  secure
 8    federal  research and development projects for this State and
 9    to  identify  and  develop  technology  programs  capable  of
10    commercialization  or  establish   one   or   more   programs
11    authorized  under  this  Article  as  part  of its Technology
12    Challenge Grant Program Initiative to serve as a catalyst and
13    assure a strong base to develop, transfer,  or  commercialize
14    new  technologies.  The Department shall, pursuant to Section
15    2003 of this Article, evaluate which grant applications  best
16    serve the economic and technological objectives of the State.
17        (b)  Grants shall be awarded from appropriations made for
18    that   purpose  to:  (i)  universities,  colleges,  community
19    colleges, nonprofit  research  foundations  or  laboratories,
20    State     research    institutions,    industry    technology
21    associations, or (ii) technology partnerships  or  technology
22    consortiums  established  by a formal joint project agreement
23    between: (1) two or  more  private  industries,  or  (2)  any
24    combination  of  one  or  more private industries with one or
25    more universities, colleges,  community  colleges,  nonprofit
26    research  laboratories,  nonprofit  research  foundations, or
27    State research institutions, or (iii) any private  enterprise
28    developing   or   commercializing  technology  or  leveraging
29    federal technology development financing, including, but  not
30    limited to, the small business innovative research program.
31    (Source: P.A. 88-453.)

32        (20 ILCS 700/2002) (from Ch. 127, par. 3702-2)
 
SB40 Enrolled              -28-                LRB9101877PTmb
 1        Sec. 2002.  Grant purposes.
 2        (a)  Grants   authorized  under  this  Article  shall  be
 3    awarded  only  for  the  following  purposes:   (i)   applied
 4    innovation  research  that  provides initial grant funding to
 5    help serve critical  research  and  development  projects  to
 6    respond  to unique, advanced technology projects for which no
 7    other source of funding is available  and  which  foster  the
 8    development  of  Illinois' economy through the advancement of
 9    the State's economic, scientific, and  technological  assets,
10    or  which  are recognized as technology programs of exemplary
11    and  outstanding  research  in  the  field  of  science   and
12    technology;  or  (ii)  to  assist  eligible applicants in the
13    State apply for, or qualify for and leverage,  federal  funds
14    awarded  for advanced technology projects concerning research
15    and development, business innovation  research  or  technical
16    development,  or  the  transfer  of  useful technology to the
17    private sector; (ii)  university  and  industry  partnerships
18    that   create   high-skill   employment   opportunities   and
19    internship   activities   in   the  communities  that  enable
20    graduates and faculty to stay in Illinois and university  and
21    industry initiatives that strengthen the relationship between
22    industry  and academia in Illinois so that applied university
23    research is responsive to the  needs  of  the  various  state
24    industries and industry clusters; (iii) centers of excellence
25    in  technology  commercialization, innovation evaluation, and
26    intellectual property management that encourages  the  growth
27    of   new  enterprises  based  on  technologies  developed  at
28    Illinois  research  centers  including  to  fund   technology
29    partnerships,  technology consortiums or research centers and
30    industry  technology  associations  that  are,  or  will  be,
31    established to perform research and  development  in  present
32    and  emerging  technologies  that can be developed for use by
33    commerce and industry; and (iv) , or to  transfer  technology
34    transfer  projects  involving  promotion of new or innovative
 
SB40 Enrolled              -29-                LRB9101877PTmb
 1    technologies   among   small   and   medium-sized    Illinois
 2    manufacturers   where   the   technologies   have   immediate
 3    commercial  application; and conduct training and information
 4    dissemination  that  is  directly  applicable  to  small  and
 5    medium-sized  Illinois  manufacturer  needs;  or  information
 6    transfer to Illinois  based  research  institution  regarding
 7    best  practice  in industrial commercialization of technology
 8    developments;  (v)  planning  and  operational  support   for
 9    statewide   support  that  improve  practices  in  technology
10    commercialization including and (iv) to assist in  the  needs
11    assessment   and  evaluation  of  the  status  of  technology
12    implementation throughout the State.
13        (b)  Grants awarded pursuant to this Article may be  used
14    to  help  subsidize  expenses, as approved by the Department,
15    for capital improvements,  equipment,  contractual  services,
16    commodities,     personnel,    support    costs,    including
17    telecommunication, electronic data and commodities, or  other
18    costs.
19    (Source: P.A. 88-453.)

20        (20 ILCS 700/2003) (from Ch. 127, par. 3702-3)
21        Sec. 2003.  Grant evaluation and amounts.
22        (a)  The  Department  shall  evaluate  grant applications
23    based  upon  criteria  provided  under  this  Section.    The
24    Department  shall  not  award any Challenge Grant that is not
25    recommended for funding by the  Illinois  Governor's  Science
26    and   Technology  Advisory  Committee  and  the  Illinois  or
27    associated private sector Coalition.   In  determining  which
28    grant  applicants  shall  be  awarded  a Challenge Grant, the
29    Department shall conduct an evaluation  of  prior  compliance
30    with  loan  or  grant  agreements  for  any  grant  applicant
31    previously  funded  by  the  Department.   In  addition,  the
32    Department   shall   consider   the   following  criteria  in
33    determining grant awards:  the  relationship  of  a  proposed
 
SB40 Enrolled              -30-                LRB9101877PTmb
 1    advanced  technology  project  to the State's future economic
 2    growth; the  qualifications  and  expertise  of  consultants,
 3    firms  or organizations undertaking the effort; the potential
 4    for leveraging federal or private research dollars, or  both,
 5    for  the  initiative;  the  extent  of  the  capacity  of the
 6    applicant or  the  applicant  partnership  or  consortium  to
 7    finance   the   initiative;   the   potential  for  adapting,
 8    commercializing or adopting the results  of  the  applicant's
 9    project  for  the  economic  benefit  of  the  State; and the
10    likelihood that the project has a potential for creating  new
11    jobs or retaining current jobs in the State.
12        (b)  The  Director  of the Department shall determine the
13    level of the grant award and shall  determine  the  share  of
14    total  directly  attributable costs of an advanced technology
15    project which  may  be  considered  for  funding  under  this
16    Article.
17        (c)  The   Department   and  the  Department  of  Natural
18    Resources are hereby authorized to cooperate with and provide
19    support to the Illinois  Governor's  Science  and  Technology
20    Advisory  Committee  and  the Illinois its associated private
21    sector Coalition.  Such support may include the provision  of
22    office space and may be technical, advisory or operational in
23    nature.
24    (Source: P.A. 89-445, eff. 2-7-96; revised 12-2-98.)

25        (20 ILCS 700/Art. 3 heading)
26               ARTICLE 3. ILLINOIS ADVANCED TECHNOLOGY
27            ENTERPRISE DEVELOPMENT AND INVESTMENT PROGRAM

28        (20 ILCS 700/3001) (from Ch. 127, par. 3703-1)
29        Sec.   3001.   Illinois  Advanced  Technology  Enterprise
30    Development and Investment Program.   The  Department  shall,
31    subject   to   appropriated   funds,  establish  an  Advanced
32    Technology Enterprise Development Investment Program to:  (i)
 
SB40 Enrolled              -31-                LRB9101877PTmb
 1    provide investments, loans, or qualified security investments
 2    to  or  on  behalf  of  young  or  growing   businesses,   in
 3    cooperation   with   private  investment  companies,  private
 4    investors or conventional  lending  institutions  which  also
 5    assume  a  portion  of the investment loan or financing for a
 6    business project, or on behalf of new  or  emerging  business
 7    through   financial   intermediaries  as  they  commercialize
 8    advanced technology projects; (ii) fund  regional  technology
 9    enterprise  development centers that make available resources
10    and expertise  in  furthering  the  technical  or  managerial
11    skills of owners; aid the ventures in locating financing; and
12    help  new  companies  with  product development and marketing
13    provide loans to, or on behalf of, the State's mature,  small
14    or   medium-sized   businesses   for  the  modernization  and
15    installation of advanced technologies or processes which will
16    improve   the   business'   production   systems   and   work
17    organization, which in turn will preserve and create  private
18    sector  jobs  by  increasing the firm's long-term competitive
19    viability;  (iii)  provide  grants  to,  or  on  behalf   of,
20    Illinois'    mature,   small   or   medium-sized   businesses
21    undertaking feasibility studies, competitiveness  assessments
22    and   productivity   audits   to  restore  their  businesses'
23    competitiveness;  and  (iv)  provide  qualified  investments,
24    loans or grants to development credit corporations, financial
25    intermediaries  or  other  entities  whose  purpose  includes
26    financing,  promoting   or   encouraging   commercialization,
27    adoption   or   implementation   of   advanced  technologies,
28    processes or products.
29    (Source: P.A. 86-870.)

30        (20 ILCS 700/3002) (from Ch. 127, par. 3703-2)
31        Sec.  3002.    Investment   requirements.    Any   direct
32    financial assistance shall:
33        (a)  Be  awarded  only if other financing with respect to
 
SB40 Enrolled              -32-                LRB9101877PTmb
 1    the business project is provided.  Other financing may be  in
 2    the  form of any loan, equity position, convertible preferred
 3    stock,  letter  of  credit,  guarantee,  limited  partnership
 4    interest, bond purchase or any other  form  approved  by  the
 5    Department;
 6        (b)  Be   protected   by   adequate  security.  Financial
 7    assistance  may  be  secured  by  first  or  second  mortgage
 8    positions on real or personal property, by royalty  payments,
 9    by  personal  notes  or  guarantees, or by any other security
10    satisfactory  to  the  Department  to  secure  repayment,  if
11    required, by the financial assistance agreement;
12        (c)  Be in such principal amount and  form,  and  contain
13    such  terms  and  provisions  with  respect  to the property,
14    insurance,  repairs,  alteration,  payment   of   taxes   and
15    assessments,    delinquency    charges,   default   remedies,
16    additional security and other matters as the Department shall
17    determine adequate to protect the public interest.
18    (Source: P.A. 88-453.)

19        (20 ILCS 700/3003) (from Ch. 127, par. 3703-3)
20        Sec. 3003.  Applications.
21        (a)  An application for direct financial assistance shall
22    be submitted to the Department in accordance with  forms  and
23    filing  fees  prescribed  by the Department.  The application
24    may  require  facts  about   the   company's   history,   job
25    opportunities,  stability  of  employment,  past  and present
26    condition  and  structure,  actual   and   pro-forma   income
27    statements,   present   and   future   market  prospects  and
28    management qualification, and any other facts deemed material
29    to the financing request.  The Department shall  obtain  such
30    additional information concerning the application as it deems
31    necessary and diligent.
32        The Department may create a credit review committee which
33    shall,  on  the  basis  of  the  application,  and  any other
 
SB40 Enrolled              -33-                LRB9101877PTmb
 1    information,    prepare    a    report     concerning     the
 2    credit-worthiness  of  the  proposed  borrower, the financial
 3    commitment of  other  investors,  the  manner  in  which  the
 4    proposed  business  project  will  advance the economy of the
 5    State, and the soundness of the proposed financial assistance
 6    agreement.
 7        After consideration of such report, and after such  other
 8    action  as it deems appropriate, the Department shall approve
 9    or deny the application.   If  the  Department  approves  the
10    application,  its  approval shall specify the amount of funds
11    to  be  provided  and  the  financial  assistance   agreement
12    provisions which shall apply to the applicant.  The applicant
13    shall be promptly notified of such action by the Department.
14        (b)  The    Department    may,   subject   to   available
15    appropriated  funds,  provide  grants   or   investments   in
16    revolving  fund portfolios with intermediary organizations or
17    participating lenders or investors.  The financial assistance
18    may  be  made  available  to  intermediaries  that  assume  a
19    responsibility for the administration of the projects  funded
20    through the grant or investment.
21        Applications  shall  be  submitted  to  the Department in
22    accordance with forms  and  filing  fees  prescribed  by  the
23    Department.   The  application  may  require  facts about the
24    intermediary's  history,  past,  and  present  condition  and
25    structure, actual, and pro-forma income  statements,  present
26    and future market prospects and management qualification, and
27    any other facts deemed material to the financing request.
28    (Source: P.A. 86-870.)

29        (20 ILCS 700/3004) (from Ch. 127, par. 3703-4)
30        Sec. 3004.  Investment purpose.
31        (a)  Direct     qualified    investments,    loans,    or
32    participation investments in  loan  and  investment  or  loan
33    portfolios  with  financial intermediaries authorized by this
 
SB40 Enrolled              -34-                LRB9101877PTmb
 1    Article 1 of  this  Act  may  be  made  for  the  purpose  of
 2    financing  any  new  process,  technique, product, service or
 3    device which is, or which may be, capable of being reduced to
 4    practice,  and  which  is,  or  which  may  be,  commercially
 5    exploitable by (i) young new or growing  Illinois  businesses
 6    or  (ii)  to  help  applicants who have qualified for Federal
 7    Small Business Innovation Research funds.
 8        Financial assistance proceeds may be  used  for  expenses
 9    that  include,  but  are  not  limited to, costs incurred for
10    research and development, amortizable  organizational  costs,
11    working capital financing, the purchase or lease of machinery
12    and   equipment,   and   the   acquisition,   improvement  or
13    rehabilitation of land  and  buildings.   In  determining  if
14    direct  or  participation  qualified  security investments or
15    loans are to be made, the Department shall find that there is
16    a likelihood of commercial feasibility  given  the  state  of
17    development  of  the  proposed product, process, or technical
18    device, and that there  is  a  likelihood  of  increased  job
19    opportunities  in  the  near term as a result of the security
20    investment.   Direct  qualified   security   investments   or
21    investment   loans  the  Department's  participation  in  the
22    qualified  security  investment  or  loan  portfolio  of   an
23    authorized  financial  intermediary for an eligible applicant
24    shall not be made for more than $500,000  and  shall  not  be
25    made  for  more than 50% of the business project costs unless
26    the Director determines that a  waiver  of  these  limits  is
27    required  to  meet  the  purpose  of  this  Act.  In making a
28    determination to participate in  an  the  qualified  security
29    investment  or  loan portfolio of an authorized participating
30    lender  or  investor  financial  intermediary  on  behalf  of
31    eligible applicants,  the  Department  shall  find  that  the
32    administering    financial   intermediary   is   capable   of
33    effectively evaluating the commercialization  feasibility  of
34    the  proposed  product,  process, service or technical device
 
SB40 Enrolled              -35-                LRB9101877PTmb
 1    technology and  the  likelihood  of  increased  job  creation
 2    impact  that  may  result  from  project  financing.   In  no
 3    instance  shall  the  Department's  participation  in  an the
 4    qualified investment or and loan portfolio of any  authorized
 5    participating   lender  or  investor  financial  intermediary
 6    exceed $2,000,000 at one time.
 7        (b)  A loan made for company modernization  or  retooling
 8    may be for any purpose consistent with the objectives of this
 9    Act  including,  but  not  limited  to, purchases of advanced
10    machinery, equipment and tooling; organizational expenses for
11    services,  personnel   training,   corporate   restructuring;
12    working  capital;  acquisition, improvement or rehabilitation
13    of land and buildings which are an integral  part  of  a  new
14    production  or  process  technology;  or  any  other business
15    expense reasonably related to the project. In determining  if
16    a  loan  is  to  be  provided, the Department shall determine
17    whether there will be an expected improvement  in  production
18    levels,  quality of output or timeliness of delivery and that
19    the number of jobs to be created or retained is reasonable in
20    relation to the loan funds  requested.  A  loan  to  eligible
21    applicants  for  modernization or retooling shall not be made
22    for more than $500,000 or for more than 25% of  the  business
23    project   costs   unless   the  Director  of  the  Department
24    determines that a waiver of these limits is required to  meet
25    the purposes of this Act.
26        (c)  Grants  may  be  made  for  the purpose of financing
27    feasibility studies, competitive assessments or  productivity
28    services  which  the  Department  determines  may  result  in
29    technology  enhancement,  retooling,  restructuring  or other
30    competitiveness improvements.  In determining the amount of a
31    grant,  the  Department  shall:  (i)  examine  the  level  of
32    expertise  of  the  consultant  or   firm   undertaking   the
33    feasibility  study  or  competitive assessment; (ii) evaluate
34    the likelihood of an applicant's proposed  feasibility  study
 
SB40 Enrolled              -36-                LRB9101877PTmb
 1    or   competitive   assessment   resulting  in  a  substantial
 2    improvement in the applicant's  operations;  (iii)  determine
 3    whether  that  improvement  will  result  in  the creation or
 4    retention of jobs. Grants to eligible  applicants  shall  not
 5    exceed  $100,000  or  50%  of  the  project  costs unless the
 6    Director of the Department determines that a waiver of  these
 7    limits is required to meet the purposes of this Act.
 8    (Source: P.A. 88-453.)

 9        (20 ILCS 700/3004.5 new)
10        Sec.   3004.5.  Illinois  Technology  Enterprise  Centers
11    Requirements.
12        (a)  The   Department   may,   subject    to    available
13    appropriated  funds,  working  with  the  Illinois Coalition,
14    establish  one  or  more   regional   technology   enterprise
15    development centers whose mission is to assist entrepreneurs,
16    innovators,   and   start-up   firms   in  high-growth,  high
17    technology sectors in furthering the technical or  managerial
18    skills of owners; aid the ventures in locating financing; and
19    help  new companies with product development and marketing in
20    support of new venture formation within the State.
21        (b)  The Department may provide  grants  or  may  provide
22    cost  share  or  reimbursements  pursuant  to this Section to
23    support the operation of  technology  enterprise  development
24    centers.  Grants awarded pursuant to this Article may be used
25    to help subsidize expenses, as approved  by  the  Department,
26    for   revolving  funds,  personnel,  support  costs,  capital
27    improvements, equipment, contractual  services,  commodities,
28    including telecommunication or other costs.
29        (c)  Technology   enterprise   development   centers  may
30    provide crucial business information at affordable prices for
31    firms that are  developing  early-stage,  technology-oriented
32    manufacturing including (i) general or short-term assistance,
33    general   outreach,   feasibility  studies  for  new  venture
 
SB40 Enrolled              -37-                LRB9101877PTmb
 1    formation, and research assistance for new venture  creation;
 2    (ii)  innovation  evaluation  and market research to evaluate
 3    the viability of  technology,  product,  or  service  or  the
 4    market  potential  of  technology, product, or service; (iii)
 5    technical assistance related to management and operations and
 6    strategic partnering and assistance in the implementation  of
 7    strategic  manufacturing  and  marketing  alliances; and (iv)
 8    service  in  locating  new  technologies   or   technological
 9    solutions.
10        (d)  Technology   enterprise   development   centers  may
11    provide  financial  services  that  include   (i)   financial
12    packaging  to  enhance  proposals  and  make  companies  more
13    competitive  for  federal  or private funding; (ii) access to
14    private investor capital through  venture capital events  and
15    regional  venture  capital  networking  programs;  and  (iii)
16    management of local for-profit or limited profit seed capital
17    funds.
18        (e) Technology enterprise development centers may address
19    local  shortfalls  of capital to commercialize new technology
20    by providing pre-seed financing to start-up, technology-based
21    businesses.  Financing  options  could  include  micro-loans,
22    small grants, and equity investment capital for seed funding,
23    product  commercialization  and  prototype  development,  and
24    commercial introduction and marketing.
25        (f)  The  Department  may  provide   grant   funds   made
26    available  to  support  professional development and capacity
27    building of the  technology  enterprise  development  centers
28    within  the  State as may be required for the administration,
29    operations, research, analysis, or training of the centers.
30        (g)  In determining which applicants shall be  awarded  a
31    grant,  the  Department  shall conduct an evaluation of prior
32    compliance with loan or grant awards;  the relationship of  a
33    proposed  project  to the State's future economic growth; the
34    qualifications and expertise of organizations undertaking the
 
SB40 Enrolled              -38-                LRB9101877PTmb
 1    effort; the applicant's understanding of the requirements and
 2    needs of entrepreneurs, innovators,  and  start-up  firms  in
 3    high-growth,  high  technology  sectors; the potential of the
 4    applicant's project to provide an  economic  benefit  of  the
 5    State;  and  the  likelihood that the project has a potential
 6    for creating new ventures in the State.
 7        (h) The Director of the Department  shall  determine  the
 8    level  of  the  grant  award and shall determine the share of
 9    total directly attributable costs of the project that may  be
10    considered for funding under this Article.

11        (20 ILCS 700/Art. 3.5 heading new)
12           ARTICLE 3.5.  BUSINESS MODERNIZATION INITIATIVE

13        (20 ILCS 700/3501 new)
14        Sec.   3501.   Business  Modernization  Initiative.   The
15    Department may create one or more programs under this Article
16    to assist the State's existing mature business  and  industry
17    base to adopt and use appropriate technologies.  The programs
18    may  vary in breadth of activities, services, and projects in
19    accordance with the level or complexity of the manufacturers'
20    needs or problems.  The Department's programs shall emphasize
21    the provision of comprehensive assistance.

22        (20 ILCS 700/3505 new)
23        Sec. 3505.  Modernization Retooling Loan Program.
24        (a)  The Department may establish, subject  to  available
25    appropriated   funds,   a  loan  program  that  will  improve
26    businesses'  production  systems  and  work  organization  to
27    preserve and create private sector  jobs  by  increasing  the
28    firms'  long-term  competitive  viability.   The  program may
29    provide loans to, or on behalf of, the State's mature, small,
30    or  medium-sized  businesses  for   the   modernization   and
31    installation of advanced technologies or processes.
 
SB40 Enrolled              -39-                LRB9101877PTmb
 1        (b)  A  loan  made for company modernization or retooling
 2    may be for any purpose consistent with the objectives of this
 3    Act including, but not  limited  to,  purchases  of  advanced
 4    machinery,  equipment,  and tooling;  organizational expenses
 5    for   services,    personnel    training,    and    corporate
 6    restructuring;   working  capital;  acquisition, improvement,
 7    or rehabilitation  of land and buildings that are an integral
 8    part of a new production or process technology;  or any other
 9    business expense reasonably related to the project. No   loan
10    made  by  the  Department  shall  be  used  to  pay  for  the
11    retirement  of previous debt unless the debt is a part of the
12    purchase or lease of machinery or  equipment  that  is  being
13    upgraded.
14        (c)  In  determining  if  a  loan  is to be provided, the
15    Department shall determine whether there will be an  expected
16    improvement  in  production  levels,  quality  of  output, or
17    timeliness of delivery and that the  number  of  jobs  to  be
18    created  or  retained  is  reasonable in relation to the loan
19    funds  requested.   A  loan  to  an  eligible  applicant  for
20    modernization or retooling shall not be made  for  more  than
21    $500,000  or  for more than 25% of the business project costs
22    unless the Director determines that a waiver of these  limits
23    is required to meet the purposes of this Act.

24        (20 ILCS 700/3510 new)
25        Sec. 3510.  Development Corporation Program.
26        (a)   The  Department  may  provide, subject to available
27    appropriated  funds,  financial  assistance  to  the  State's
28    mature, small, or medium-sized businesses through development
29    corporations   that   assume   a   responsibility   for   the
30    administration of the loan projects for the modernization and
31    installation of advanced technologies.
32        (b) Development corporation financial assistance  may  be
33    in  the  form  of  direct  loans,  grants,  or  purchases  of
 
SB40 Enrolled              -40-                LRB9101877PTmb
 1    qualified   security  investments  or  financial  assistance.
 2    Development credit corporations, financial intermediaries, or
 3    other entities whose purpose includes  financing,  promoting,
 4    or encouraging commercialization, adoption, or implementation
 5    of   advanced   technologies,   processes,  or  products,  as
 6    determined  by  the  Department,  may  participate  in   this
 7    program.
 8        (c)  Financial  assistance  authorized under this Section
 9    shall be used by the development  corporation  for  loans  or
10    investments  to  firms  to improve the businesses' production
11    systems and work organization that will preserve  and  create
12    private  sector  jobs  by  increasing  the  firms'  long-term
13    competitive  viability  and  may be used for the planning and
14    operation of the development corporation as approved  by  the
15    Department   through   its  agreement  with  the  development
16    corporation.
17        (d) The Department is authorized to rely  upon,  and  may
18    provide   for   in   the   execution  of  an  agreement,  the
19    participating lender's or investor's review on behalf of  the
20    State  and  approval  of the credit, collateral security, and
21    documentation; determination of eligibility, economic results
22    expected, and the prospects for viability and repayment;  the
23    collection  and  use  of  fees,  premiums,  or  charges;  the
24    organization,   servicing,   and  disbursement  of  financial
25    assistance; and such other purposes  and  activities  as  the
26    Department,  in  its  sole  discretion, shall determine to be
27    reasonable, appropriate, and consistent with the purposes  of
28    this Article.

29        (20 ILCS 700/3515 new)
30        Sec. 3515. Modernization grants.
31        (a)    Subject    to    available   appropriated   funds,
32    modernization  grants  may  be  made  for  the   purpose   of
33    financing,    competitive    assessments,   or   productivity
 
SB40 Enrolled              -41-                LRB9101877PTmb
 1    improvement  services  that  the  Department  determines  may
 2    result in technology enhancement,  retooling,  restructuring,
 3    or  other  competitiveness  improvements.  Grants may be made
 4    to, or on behalf of, Illinois' mature, small, or medium-sized
 5    businesses   for   (i)   undertaking   feasibility   studies,
 6    competitiveness  assessments,  and  productivity  audits   to
 7    restore   their   businesses'  competitiveness  or  (ii)  the
 8    modernization  and  installation  of  advanced  manufacturing
 9    systems  or  processes  that  will  improve  the  businesses'
10    production systems and work organization,  or  will  preserve
11    and  create  private  sector  jobs  by  increasing the firms'
12    long-term competitive viability.
13        (b)  Assistance authorized under this Section may  be  in
14    the  form of direct grant agreements, agreements with private
15    sector consultants on behalf of a firm, or   agreements  with
16    participating  intermediary organizations as authorized under
17    Article 1.
18        (c)  In determining the amount of a modernization  grant,
19    the  Department shall:  (i) examine the level of expertise of
20    the  consultant  or  firm  undertaking  the   competitiveness
21    assessment   or   productivity  improvement  services;   (ii)
22    evaluate  the   likelihood   of   an   applicant's   proposed
23    competitiveness   assessment   or   productivity  improvement
24    services  resulting  in  a  substantial  improvement  in  the
25    applicant's   operations;   and   (iii)   determine   whether
26    improvement will result in the creation or retention of jobs.
27    Modernization grants to eligible applicants shall not  exceed
28    $100,000  or  50%  of  the project costs, unless the Director
29    determines that a waiver of these limits is required to  meet
30    the purposes of this Act.

31        (20 ILCS 700/3520 new)
32        Sec. 3520.  Manufacturing Extension Program.
33        (a)  The  Department  may establish, subject to available
 
SB40 Enrolled              -42-                LRB9101877PTmb
 1    appropriated funds,  a  program  of  statewide  manufacturing
 2    extension centers serving the geographic needs of the State's
 3    manufacturers,   whose   mission   is   to  assist  small  or
 4    medium-sized manufacturers  with  technological  advancement,
 5    for  continuous  improvement  of business practices for these
 6    firms to be  better  positioned  to  succeed  against  global
 7    competition.
 8        (b)  The  Department  may  provide  grants or may provide
 9    cost share or reimbursements under this  Section  to  support
10    the   operation   of   manufacturing   extension  deliverers,
11    including   organizations   financed   through   a    federal
12    manufacturing  extension  partnership program.  Manufacturing
13    extension deliverers can include universities  and  colleges,
14    regional   or   sectorial   based   organizations,  technical
15    societies, or other similar groups.
16        (c)  The  Department  may  provide   grant   funds   made
17    available under this Act  to support professional development
18    and  capacity  building of the manufacturing extension system
19    within the State as may be required for  the  administration,
20    operations,  research,  analysis,  promotion,  or training of
21    geographic based manufacturing extension centers.
22        (d)  In determining which applicants shall be  awarded  a
23    grant,  the  Department  shall conduct an evaluation of prior
24    compliance  with  awards  programs;  the  relationship  of  a
25    proposed project to the State's future economic  growth;  the
26    qualifications and expertise of organizations undertaking the
27    effort; the applicant's understanding of the requirements and
28    needs  of  the  target  groups  served;  the potential of the
29    applicant's project to provide an  economic  benefit  of  the
30    State;  the methods engaged to measure and track performance;
31    and the likelihood that  the  project  has  a  potential  for
32    improving   the   competitiveness   of  small  and  mid-sized
33    manufacturers.
 
SB40 Enrolled              -43-                LRB9101877PTmb
 1        (20 ILCS 700/3525 new)
 2        Sec. 3525.  Manufacturing and Export Base Services.
 3        (a) The Department may, subject to available appropriated
 4    funds, establish a program of  statewide  assistance  to  the
 5    manufacturing  and  services export base of the State serving
 6    the sector-wide needs of small and medium-sized companies.
 7        (b)  The Department may provide grants, cost share funds,
 8    or reimbursements:  to State or substate  programs  providing
 9    better  access  to  information; to reduce the impediments to
10    the flow of technical information; and  to  provide  Illinois
11    manufacturers, producer firms, and export services firms with
12    better  or more timely access to the State's and the nation's
13    technology  base,  including  industrial   and    engineering
14    consulting  practices,  university  and  research  laboratory
15    based  engineers,  private  commercial  product  vendors, and
16    other sources of technology or non-technology services.
17        (c)  The Department may provide grants to those  private,
18    public,    and    non-profit    research   institutions   and
19    organizations that agree  to  serve  as  an  intermediary  to
20    achieve  the purpose set forth in this Section that continues
21    to ensure Illinois' economic vitality and competitiveness.
22        (d)  The Department may seek out applicants that  may  be
23    considered for a grant, and may provide an award based on the
24    qualifications and expertise of organizations undertaking the
25    effort,  the applicants understanding of the requirements and
26    needs of the target groups served, and  the  likelihood  that
27    the proposed project will improve the State's future economic
28    potential.

29        (20 ILCS 700/3530 new)
30        Sec.  3530.  Eligible  applicants;  forms  of assistance.
31    Financial assistance may be made to, or  on  behalf  of,  any
32    for-profit    entity,   sole   proprietorship,   partnership,
33    corporation,  or  joint  venture  carrying  on  business,  or
 
SB40 Enrolled              -44-                LRB9101877PTmb
 1    organized to carry on business, in  this  State.    Financial
 2    assistance   authorized   under  this  Article  may  be  made
 3    available   to   not-for-profit   organizations,    including
 4    educational   agencies,   business   or  trade  associations,
 5    economic   development   organizations,   and   participating
 6    lenders, in the  form  of  participation  agreements,  direct
 7    loans,  grant agreements, purchases of qualified security, or
 8    any other form as determined by the Department.

 9        (20 ILCS 700/4003) (from Ch. 127, par. 3704-3)
10        Sec. 4003. Federal programs. The Department is authorized
11    to accept and expend federal monies in  furtherance  of  this
12    Act and to use funds appropriated under this Act for programs
13    pending  reimbursement  from  federal  funds, except that the
14    terms and conditions established under this  Act,  which  are
15    inconsistent  with or prohibited by the federal authorization
16    under which such monies are made available, shall  not  apply
17    with respect to the expenditure of such monies.
18    (Source: P.A. 86-870.)

19                             ARTICLE 10.

20        Section  10-5.  The Civil Administrative Code of Illinois
21    is amended by changing Section 46.32a as follows:

22        (20 ILCS 605/46.32a) (from Ch. 127, par. 46.32a)
23        Sec. 46.32a.  Labor-management-community relations.
24        (a)  Because  economic  development  investment  programs
25    must be supplemented with  efforts  to  maintain  a  skilled,
26    stable,  and  diverse workforce able to meet the needs of new
27    and  growing  business  enterprises,  the  Department   shall
28    promote   better  labor-management-community  and  government
29    operations  by  providing  labor-management   relations   and
30    provide    assistance    in    the   development   of   local
 
SB40 Enrolled              -45-                LRB9101877PTmb
 1    labor-management-community  labor-management  committees  and
 2    coalitions established to address  employment  issues  facing
 3    families  and  by  helping  Illinois  current and prospective
 4    employers  attract  and  retain  a  diverse  and   productive
 5    workforce through the promotion and support of dependent care
 6    policies and programs in the workplace and community.
 7        In     the     Department     there     shall     be    a
 8    Labor-Management-Community    Labor-Management    Cooperation
 9    Committee composed of 18 12 public members appointed  by  the
10    Governor  with  the  advice  and  consent of the Senate.  Six
11    members  shall  represent  executive  level   management   of
12    businesses,  that  employ  labor  union members and 6 members
13    shall represent major labor union leadership, and  6  members
14    shall  represent  community  leadership.   The Governor shall
15    designate   1   business   representative   and    1    labor
16    representative  as cochairmen. Appointed members shall not be
17    represented at a meeting by another person. There shall be  9
18    ex  officio  6  ex officio nonvoting members: the Director of
19    the Department, who shall serve as Secretary, the Director of
20    the Department of Labor, the Secretary of Human Services, the
21    Director  of  Public  Health,  the  Director  of   Employment
22    Security, the President of the Senate, the Minority Leader of
23    the  Senate,  the Speaker of the House of Representatives and
24    the Minority Leader of the House of Representatives.  Each ex
25    officio member shall serve during the  term  of  his  or  her
26    office.   Ex  officio  members  may  be  represented  by duly
27    authorized substitutes.
28        In making the initial public member appointments  to  the
29    Committee,  3  of  the  business representatives and 3 of the
30    labor union representatives  shall  be  appointed  for  terms
31    expiring July 1, 1987.  The remaining public members shall be
32    appointed  for  terms  expiring  July  1,  1988.   The public
33    members appointed under  this  amendatory  Act  of  the  91st
34    General  Assembly  shall  be  divided  into 2 groups with the
 
SB40 Enrolled              -46-                LRB9101877PTmb
 1    first group having terms that expire on July 1, 2002 and  the
 2    second  group  having  terms  that  expire  on  July 1, 2003.
 3    Thereafter,  public  members  of  the  Committee   shall   be
 4    appointed  for  terms of 2 years expiring on July 1, or until
 5    their successors are appointed and qualified.   The  Governor
 6    may  at  any time, with the advice and consent of the Senate,
 7    make appointments to fill vacancies for  the  balance  of  an
 8    unexpired   term.      Public  members  shall  serve  without
 9    compensation, but shall be reimbursed by the  Department  for
10    necessary  expenses  incurred  in  the  performance  of their
11    duties.  The Department shall provide staff assistance to the
12    Committee.
13        The Committee shall have the following duties:
14             (1)  to improve communications  between  labor,  and
15        management,   and  communities  on  significant  economic
16        problems facing the  State  especially  with  respect  to
17        identifying  new ways to attract and retain employees and
18        provide an environment in which employees  can  do  their
19        best work;
20             (2)  to  encourage  and  support  the development of
21        local labor, management, and  community  labor-management
22        committees  at the plant, industry and area levels across
23        the State and encourage and support  the  development  of
24        local   coalitions   to  support  the  implementation  of
25        family-friendly policies in the workplace;
26             (3)  to    assess    the    progress     of     area
27        labor-management-community   labor-management  committees
28        and local coalitions that have  been  formed  across  the
29        State  and  provide  input  to  the  Governor and General
30        Assembly Director of the Department  concerning  matching
31        grants to area labor-management committees or other grant
32        programs established in this Act;
33             (4)  to    convene   a   Statewide   conference   on
34        labor-management-community labor-management  concerns  at
 
SB40 Enrolled              -47-                LRB9101877PTmb
 1        least  once  every  2  years  and  to convene a series of
 2        regional work, family, and community planning conferences
 3        throughout the State for employers, unions, and community
 4        leaders to form local coalitions  to  share  information,
 5        pool  resources,  and address work and family concerns in
 6        their own communities;
 7             (5)  to issue a report on labor-management-community
 8        and employment-related family  labor-management  concerns
 9        to  the  Governor  and the General Assembly every 2 years
10        commencing in March of 1987.  This report  shall  outline
11        the   accomplishments   of  the  Committee  and  specific
12        recommendations       for       improving       Statewide
13        labor-management-community labor-management relations and
14        supporting the adoption of family-friendly work practices
15        throughout the State;.
16             (6)  to advise the Department on dependent care  and
17        other employment-related family initiatives; and
18             (7)  to  advise  the Department on other initiatives
19        to foster  maintenance  and  development  of  productive,
20        stable,  and diverse workforces to supplement and advance
21        community and State investment-based economic development
22        programs.
23        (b)  The   Director,   with    the    advice    of    the
24    Labor-Management-Community    Labor-Management    Cooperation
25    Committee,  shall  have  the  authority  to provide grants to
26    employee coalitions  or  other  coalitions  that  enhance  or
27    promote   work  and  family  programs  and  address  specific
28    community concerns, and to provide  matching  grants,  grants
29    and   other   resources   to   establish   or   assist   area
30    labor-management-community  labor-management  committees  and
31    other      projects      which      serve      to     enhance
32    labor-management-community labor-management relations.    The
33    Department  shall  have the authority, with the advice of the
34    Labor-Management-Community    Labor-Management    Cooperation
 
SB40 Enrolled              -48-                LRB9101877PTmb
 1    Committee,  to  award  grants  or  matching  grants  in   the
 2    following four areas:
 3             (1)  To  provide  At  least 60 percent of the annual
 4        appropriation   to   the   Department,   for    providing
 5        labor-management grants and resources shall be awarded as
 6              matching      grants      to     existing     local
 7        labor-management-community  labor-management  committees.
 8        To be eligible  for  matching  grants  pursuant  to  this
 9        subsection,        local       labor-management-community
10        labor-management committees shall:
11                  (i)  Be a formal,  not-for-profit  organization
12             structured  for  continuing  service  with voluntary
13             membership;
14                  (ii)  Be composed of labor, and management, and
15             community representatives;
16                  (iii)  Service  a  distinct  and   identifiable
17             geographic region;
18                  (iv)  Be   staffed   by  a  professional  chief
19             executive officer;
20                  (v)  Have been established with the  Department
21             for at least 2 two years;
22                  (vi)  Operate  in  compliance  with  rules  set
23             forth  by  the  Department  with  the  advice of the
24             Labor-Management-Community          Labor-Management
25             Cooperation Committee; and
26                  (vii)  Ensure that its efforts  and  activities
27             are  coordinated  with  relevant agencies, including
28             but not limited to the following:
29                  Department of Commerce and Community Affairs
30                  Illinois Department of Labor
31                  Economic development agencies
32                  Corridor councils
33                  Planning agencies
34                  Colleges, universities and community colleges
 
SB40 Enrolled              -49-                LRB9101877PTmb
 1                  U.S. Department of Labor
 2                  Statewide Job Training Partnership Act entities
 3                  or any successor federal workforce training and
 4                  development legislation.
 5             Further,    the     purpose     of     the     local
 6        labor-management-community   labor-management  committees
 7        will include, but not be limited to:
 8                  (i)  Enhancing           the           positive
 9             labor-management-community          labor-management
10             relationship within  the  State,  region,  community
11             and/or work place;
12                  (ii)  Assisting in the retention, expansion and
13             attraction  of  businesses and jobs within the State
14             through special  training  programs,  gathering  and
15             dissemination    of    information   and   providing
16             assistance in local economic development efforts  as
17             appropriate;
18                  (iii)  Creating   and   maintaining  a  regular
19             nonadversarial forum for  ongoing  dialogue  between
20             labor, and management, and community representatives
21             to  discuss  and  resolve  issues  of mutual concern
22             outside the  realm  of  the  traditional  collective
23             bargaining process;
24                  (iv)  Acting  as an intermediary for initiating
25             local programs between unions  and  employers  which
26             would  generally  improve  economic  conditions in a
27             region;
28                  (v)  Encouraging,  assisting  and  facilitating
29             the   development   of   work-site   and    industry
30             labor-management-community          labor-management
31             committees in the region.
32             Any         local         labor-management-community
33        labor-management  committee  meeting  these  criteria may
34        apply to  the  Department  for  annual  matching  grants,
 
SB40 Enrolled              -50-                LRB9101877PTmb
 1        provided  providing  that the local committee contributes
 2        at least 25 percent in matching funds, of which  no  more
 3        than  50  percent  shall  be  "in-kind"  services.  Funds
 4        received by a local committee pursuant to this subsection
 5        shall be used for the ordinary operating expenses of  the
 6        local committee.
 7             (2)  To  provide  Up  to  20  percent  of the annual
 8        appropriation   to   the   Department    for    providing
 9        labor-management  grants  and resources may be awarded as
10        matching  grants  to   local   labor-management-community
11        labor-management  committees which do not meet all of the
12        eligibility  criteria  set  forth  in   subsection   (1).
13        However,  to  be eligible to apply for a grant under this
14        subsection,    the    local    labor-management-community
15        labor-management committee, at a minimum, shall:
16                  (i)  Be composed of labor, and management,  and
17             community representatives;
18                  (ii)  Service   a   distinct  and  identifiable
19             geographic region;
20                  (iii)  Operate in compliance with the rules set
21             forth by the  Department  with  the  advice  of  the
22             Labor-Management-Community          Labor-Management
23             Cooperation Committee;
24                  (iv)  Ensure  that  its  efforts and activities
25             are     directed      toward      enhancing      the
26             labor-management-community          labor-management
27             relationship  within  the  State,  region, community
28             and/or work place.
29                  Any      local       labor-management-community
30        labor-management  committee  meeting  these  criteria may
31        apply to the Department for  an  annual  matching  grant,
32        provided  providing  that the local committee contributes
33        at least 25 percent in matching funds of  which  no  more
34        than  50  percent  shall  be  "in-kind"  services.  Funds
 
SB40 Enrolled              -51-                LRB9101877PTmb
 1        received by a local committee pursuant to  paragraph  (2)
 2        of  subsection  (b) of this Section shall be used for the
 3        ordinary and operating expenses of the  local  committee.
 4        Eligible  committees  shall  be limited to three years of
 5        funding under this subsection.   With  respect  to  those
 6        committees   participating   in  this  program  prior  to
 7        enactment of this amendatory Act of 1988  which  fail  to
 8        qualify  under  paragraph  (1)  of subsection (b) of this
 9        Section, previous years'  funding  shall  be  counted  in
10        determining  whether  those committees have reached their
11        funding limit under this paragraph (2).
12             (3)  To provide Up  to  10  percent  of  the  annual
13        appropriation    to    the   Department   for   providing
14        labor-management grants and resources may be  awarded  as
15        grants  to  develop and conduct specialized education and
16        training programs of direct benefit to representatives of
17        labor,       management,       labor-management-community
18        labor-management committees and/or their staff.  The type
19        of education and training programs to  be  developed  and
20        offered  will  be  determined and prioritized annually by
21        the    Department,    with    the    advice    of     the
22        Labor-Management-Community  Labor-Management  Cooperation
23        Committee.   The  Department  will  develop  and issue an
24        annual  request  for  proposals  proposal  detailing  the
25        program specifications.
26             (4)  To provide Up  to  10  percent  of  the  annual
27        appropriation    to    the   Department   for   providing
28        labor-management grants and resources may be  awarded  as
29        grants  for  research and development projects related to
30        labor-management-community or  employment-related  family
31        labor-management issues.  The Department, with the advice
32        of    the   Labor-Management-Community   Labor-Management
33        Cooperation  Committee,  will  develop   and   prioritize
34        annually   the   type  and  scope  of  the  research  and
 
SB40 Enrolled              -52-                LRB9101877PTmb
 1        development projects deemed necessary.
 2             (5)  To provide grants of up to a maximum of  $5,000
 3        to  support  the  planning  of regional work, family, and
 4        community planning conferences  that  will  be  based  on
 5        specific community concerns.
 6             (6)  To   provide  grants  to  initiate  or  support
 7        recently created  employer-led  coalitions  to  establish
 8        pilot projects that promote the understanding of the work
 9        and  family  issues and support local workforce dependent
10        care services.
11             The   Department   is   authorized   to    establish
12        applications,  application  procedures and promulgate any
13        rules deemed necessary  in  the  administration  of  such
14        grants.
15        (c)  To  administer  the  grant  programs created by this
16    Act, the Department shall establish an  Office  of  Work  and
17    Family  Issues  Labor-Management Cooperation.  The purpose of
18    this office shall include, but not be limited to:
19             (1)  To administer  the  grant  programs,  including
20        developing grant applications and requests for proposals
21        proposal, program monitoring and evaluation.
22             (2)  To  serve  as  State  liaison with other state,
23        regional and national organizations devoted to promoting
24        labor-management-community  labor-management  cooperation
25        and  employment-related  family   issues;   disseminating
26        pertinent   information   secured  through  these  state,
27        regional   and    national    affiliations    to    local
28        labor-management-community  labor-management  committees,
29        the      Labor-Management-Community      Labor-Management
30        Cooperation   Committee,  employer  coalitions,  Illinois
31        Employment and Training  Centers,  and  other  interested
32        parties throughout the State.
33             (3)  To   provide   technical  assistance  to  area,
34        industry    or    work-site    labor-management-community
 
SB40 Enrolled              -53-                LRB9101877PTmb
 1        labor-management committees as requested.
 2             (4)  To serve as  a  clearinghouse  for  information
 3        related  to  labor-management-community  labor-management
 4        cooperation.
 5             (5)  To  serve  as  a  catalyst  to  developing  and
 6        strengthening  a partnership among local, state, regional
 7        and  national  organizations  and  agencies  devoted   to
 8        enhancing   labor-management-community   labor-management
 9        cooperation and employment-related family issues.
10             (6)  To provide any other programs or services which
11        enhance    labor-management-community    labor-management
12        cooperation   or   that   may  promote  the  adoption  of
13        family-friendly workplace practices at companies  located
14        within  the  State  of  Illinois  as  determined  by  the
15        Director       with      the      advice      of      the
16        Labor-Management-Community  Labor-Management  Cooperation
17        Committee.
18             (7)  To  establish  an  Illinois  Work  and   Family
19        Clearinghouse   to  disseminate  best-practice  work  and
20        family  policies  and  practices  throughout  the  State,
21        including through the Illinois  Employment  and  Training
22        Centers;  to  provide and develop a computerized database
23        listing dependent care information and referral services;
24        to help employers by providing information about  options
25        for  dependent  care  assistance,  to conduct and compile
26        research  on  elder   care,   child   care,   and   other
27        employment-related  family  issues  in  Illinois;  and to
28        compile and disseminate any other information or services
29        that support the adoption  of  family-friendly  workplace
30        practices at companies located in the State.
31    (Source: P.A. 88-456; revised 10-31-98.)

32                             ARTICLE 15.
 
SB40 Enrolled              -54-                LRB9101877PTmb
 1        Section  15-1.  Short Title. This Article may be cited as
 2    the Illinois Business Regulatory Review Act.

 3        Section 15-5.  Purpose.  The General Assembly finds  that
 4    small  businesses  and  their  growth  are  critical  to  the
 5    economic health of the State.  Small businesses, more so than
 6    larger  firms,  often  need  assistance  to negotiate through
 7    complex  government  forms,  rules,  and  regulations.    The
 8    current overall business climate of the State would  be  made
 9    more  attractive  and competitive and would otherwise benefit
10    from  reductions  in  unnecessarily  burdensome   rules   and
11    regulations.   A  formal  method  to  generate private sector
12    analysis, input, and guidance on methods of regulatory review
13    for the Governor and executive agencies,  the  constitutional
14    officers,  and  the  General  Assembly  is  needed  for  this
15    purpose.

16        Section   15-10.   Illinois  Economic  Development  Board
17    responsibilities.  In addition to its duties under the  Civil
18    Administrative  Code  of  Illinois  and the Illinois Economic
19    Development Board  Act,  the  Illinois  Economic  Development
20    Board  shall form a Business Regulatory Committee to generate
21    private sector analysis, input, and guidance  on  methods  of
22    regulatory assistance and review.

23        Section  15-15.   Economic  Development  Board Regulatory
24    Committee membership.  Membership, composition,  bylaws,  and
25    methods  of operation of the Committee shall be determined by
26    the Board.  At the determination of  the   Board,  individual
27    small  business  owners  and  operators; national, State, and
28    regional organizations representative  of  small  firms;  and
29    representatives  of  existing  State  or regional councils of
30    business may  be  designated  as  members  of  this  Business
31    Regulatory Committee.
 
SB40 Enrolled              -55-                LRB9101877PTmb
 1        Section 15-20.  Regulatory policy responsibilities of the
 2    Committee.   In addition to those duties and responsibilities
 3    as directed  by  the  Board,  the  Committee  shall  analyze,
 4    determine,  and  report  to  the Board, so that the Board may
 5    report to the  Governor  and  executive  agencies  under  the
 6    control of the Governor, the constitutional officers, and the
 7    General  Assembly, overall methods of achieving greater small
 8    business impact  of  the  regulatory  process  the  following
 9    information:
10             (1)  Identify   specific   ways  in  which  existing
11        regulations and regulatory  programs  can  be  made  more
12        responsive and responsible to small business.
13             (2)  Identify   more  effective  ways  of  eliciting
14        participation from  the  private  sector  in  efforts  to
15        simplify  and  clarify  regulations  so that they are not
16        overly complex or burdensome.
17             (3)  Provide   suggestions   for   involving   small
18        business  owners  and  their   representatives   in   the
19        rulemaking process in a more meaningful way.
20             (4)  Provide  constructive  suggestions for reducing
21        forms  and  paperwork   particularly   where   they   are
22        duplicative,  overly complicated, or otherwise burdensome
23        for small business.
24             (5)  Determine effective ways  to  communicate  with
25        small  business  owners  and  to  assist  them  in  their
26        understanding and implementation of complex regulations.
27             (6)  Recommend   non-punitive  methods  of  ensuring
28        compliance with  regulatory  objectives  or  requirements
29        including  pre-inspection  programs,  advisory  services,
30        education and training, and industry self-regulation.

31        Section 15-25.  Regulatory review responsibilities of the
32    Business  Regulatory  Review Committee.  At the direction and
33    request of the Board, the Committee shall review and  analyze
 
SB40 Enrolled              -56-                LRB9101877PTmb
 1    regulations  and  make  specific  recommendations,  from  the
 2    perspective  of  cost  and benefit, reasonableness and common
 3    sense, and permissiveness of community  economic  growth  and
 4    development, on the following:
 5             (1)  Selected  regulatory topics to provide guidance
 6        to  State  agencies  regarding  the  formulation  of  and
 7        revision to specific rules and regulations.
 8             (2)  Existing and proposed rules and regulations for
 9        the  purpose  of  determining   whether   the   rule   is
10        excessively burdensome or imposes undue hardship on those
11        subject to the regulation.
12             (3)  Whether  the public benefit derived from a rule
13        or a proposed  rule  exceeds  the  increased  public  and
14        private cost of complying with the rule being imposed.
15             (4)  Less   restrictive,   less   costly,   or  less
16        burdensome means to achieve the same result.

17        Section 15-30.  Advisory responsibilities of the Business
18    Regulatory Review Committee.  At the direction and request of
19    the Board, the Committee shall provide the following advisory
20    assistance:
21             (1)  To advise the Office of the Governor  regarding
22        agency  rulemaking  and  to  offer  recommendations  that
23        improve  the  State rulemaking process, which may include
24        alternative standards that might be set  for  enforcement
25        by regulatory agencies.
26             (2)  To  advise  the  General Assembly about whether
27        the  State  should  adopt   small   business   regulatory
28        enforcement   fairness   legislation  modeled  after  the
29        equivalent federal legislation and regarding how Illinois
30        laws compare with those of other states and how  Illinois
31        might  implement  reforms  adopting  the  better  or best
32        practices of these other states.
33             (3)  To  advise  the  Department  of  Commerce   and
 
SB40 Enrolled              -57-                LRB9101877PTmb
 1        Community  Affairs with the operations of the First Stop,
 2        small business regulatory review, and similar  department
 3        programs.
 4             (4)  To   advise  relevant  State  agencies  on  the
 5        formulation of federally required State rules.

 6        Section 15-35.  Support  for  Committee.   The  Committee
 7    shall be provided staff support services by the Department of
 8    Commerce  and  Community Affairs, the Office of the Governor,
 9    and various regulatory agencies.  Members  of  the  Committee
10    shall  serve  without compensation, but may be reimbursed for
11    expenses.


12        Section  15-105.   The  Civil  Administrative   Code   of
13    Illinois is amended by changing 46.19a as follows:

14        (20 ILCS 605/46.19a) (from Ch. 127, par. 46.19a)
15        Sec. 46.19a.  Employment and technology grants.
16        (1)  Grants  to  provide  training  in fields affected by
17    critical demands for certain skills may be made  as  provided
18    in this subsection.
19             (a)  The  Director of the Department may make grants
20        to eligible employers or to other  eligible  entities  on
21        behalf  of  employers  as  authorized in paragraph (b) to
22        provide training for employees in fields for which  there
23        are critical demands for certain skills.
24             (b)  The   Director   may  accept  applications  for
25        training  grant  funds  and  grant  requests  from:   (i)
26        entities  sponsoring  multi-company   eligible   employee
27        training  projects as defined in paragraph (c), including
28        business associations, strategic  business  partnerships,
29        institutions  of  secondary  or  higher  education, large
30        manufacturers for supplier network companies, federal Job
 
SB40 Enrolled              -58-                LRB9101877PTmb
 1        Training Partnership Act administrative entities or grant
 2        recipients, and labor organizations when  those  projects
 3        will   address   common   training  needs  identified  by
 4        participating companies; and  (ii)  individual  employers
 5        that  are undertaking eligible employee training projects
 6        as defined in paragraph (c), including intermediaries and
 7        training agents.
 8             (c)  The  Director  may  make  grants  to   eligible
 9        applicants  as  defined  in  paragraph  (b)  for employee
10        training projects that include, but need not  be  limited
11        to, one or more of the following:
12                  (i)  training  programs  in  response to new or
13             changing  technology   being   introduced   in   the
14             workplace;
15                  (ii)  job-linked  training  that offers special
16             skills for career advancement or that is preparatory
17             for, and  leads  directly  to,  jobs  with  definite
18             career potential and long-term job security;
19                  (iii)  training  necessary  to  implement total
20             quality management or improvement or both management
21             and improvement systems within the workplace;
22                  (iv)  training  related  to  new  machinery  or
23             equipment;
24                  (v)  training of employees  of  companies  that
25             are  expanding into new markets or expanding exports
26             from Illinois;
27                  (vi)  basic,  remedial,  or  both   basic   and
28             remedial training of employees as a prerequisite for
29             other  vocational or technical skills training or as
30             a condition for sustained employment;
31                  (vii)  self-employment    training    of    the
32             unemployed  and  underemployed  with  comprehensive,
33             competency-based instructional programs and services
34             , entrepreneurial education and training initiatives
 
SB40 Enrolled              -59-                LRB9101877PTmb
 1             for youth and adult learners in cooperation with the
 2             Illinois Institute  for  Entrepreneurial  Education,
 3             training  and education, conferences, workshops, and
 4             best  practice   information   for   local   program
 5             operators    of    entrepreneurial   education   and
 6             self-employment training programs; and
 7                  (viii)  other training activities, projects, or
 8             both training activities and projects related to the
 9             support, development, or evaluation of job  training
10             programs,    activities,   and   delivery   systems,
11             including training needs assessment and design.
12             (d)  Grants  shall  be  made  on   the   terms   and
13        conditions that the Department shall determine, provided,
14        however,  that  no  grant  made  under  the provisions of
15        paragraph (c) of this subsection shall exceed 50% of  the
16        direct  costs  of all approved training programs provided
17        by the employer or the employer's training agent or other
18        entity as defined in paragraph (b).  Under this  Section,
19        allowable costs include, but are not limited to:
20                  (i)  administrative    costs    of    tracking,
21             documenting,   reporting,  and  processing  training
22             funds or project costs;
23                  (ii)  curriculum development;
24                  (iii)  wages and fringe benefits of employees;
25                  (iv)  training   materials,   including   scrap
26             product costs;
27                  (v)  trainee travel expenses;
28                  (vi)  instructor costs, including wages, fringe
29             benefits, tuition, and travel expenses;
30                  (vii)  rent, purchase,  or  lease  of  training
31             equipment; and
32                  (viii)  other   usual  and  customary  training
33             costs.
34             (e)  The Director will ensure that a minimum of  one
 
SB40 Enrolled              -60-                LRB9101877PTmb
 1        on-site  grant  monitoring  visit  is  conducted  by  the
 2        Department  either  during the course of the grant period
 3        or within 6 months following the end of the grant period.
 4        The Department shall verify that the grantee's  financial
 5        management  system is structured to provide for accurate,
 6        current, and complete disclosure of the financial results
 7        of the grant program in accordance with  all  provisions,
 8        terms, and conditions contained in the grant contract.
 9             (f)  The   Director  may  establish  and  collect  a
10        schedule of charges from subgrantee  entities  and  other
11        system  users  under  federal  job-training  programs for
12        participating in and utilizing the department's automated
13        job-training  program  information  systems  where   such
14        systems  and  the necessary participation and utilization
15        is a requirement of the  federal  job-training  programs.
16        All  monies collected pursuant to this paragraph shall be
17        deposited  into  the  Federal  Job-Training   Information
18        Systems Revolving Fund created in subsection (5).
19        (2)  The  Department is authorized to establish a program
20    of  grants  to  universities,  community  colleges,  research
21    institutions,  research  consortiums,  other   not-for-profit
22    entities,   and   Illinois  businesses  for  the  purpose  of
23    fostering research and development in the high technology and
24    the service sector leading to the development of new products
25    and services that can be marketed by Illinois businesses. All
26    grant awards shall include a contract which may  provide  for
27    payment  of  negotiated  royalties  to  the Department if the
28    product  or  service  to  be  developed  by  the  grantee  is
29    subsequently licensed for production.
30             (a)  Grants  may  be  awarded  to  universities  and
31        research institutions to  assist  them  in  making  their
32        faculties    and   facilities   available   to   Illinois
33        businesses. Such grants may be used by  a  university  or
34        research  institution  for,  including but not limited to
 
SB40 Enrolled              -61-                LRB9101877PTmb
 1        the following  purposes:  (i)  to  establish  or  enhance
 2        computerized   cataloging   of   all  research  labs  and
 3        university staff and make such  catalogues  available  to
 4        Illinois businesses; (ii) to market products developed by
 5        the  university  to  Illinois businesses; (iii) to review
 6        publications in order to identify,  catalog,  and  inform
 7        Illinois  businesses  of  new  practices in areas such as
 8        robotics,  biotechnology;  (iv)  to  build  an   on-line,
 9        information  and  technology  system that relies on other
10        computerized networks in the United States; (v) to assist
11        in securing temporary replacement  for  faculty  who  are
12        granted a leave of absence from their teaching duties for
13        the purpose of working full-time for an Illinois business
14        to assist that business with technology transfer.
15             (b)  Grants  may  be  awarded  to  universities  and
16        research  institutions,  research  consortiums  and other
17        not-for-profit entities for the  purpose  of  identifying
18        and   supporting  Illinois  businesses  engaged  in  high
19        technology and service sector enterprises. Such  Illinois
20        businesses identified and funded shall include recipients
21        of Small Business Innovation Research Program funds under
22        subsections  (e)  through  (k)  of Section 9 of the Small
23        Business Act. (Title 15 United States Codes,  subsections
24        638(e)-638(k)).  Entities  receiving  grants  under  this
25        paragraph (b) shall be known as commercialization centers
26        and  shall  engage  in  one  or  more  of  the  following
27        activities:
28                  (i)  directing   research  assistance  for  new
29             venture creations;
30                  (ii)  general  feasibility   studies   of   new
31             venture ideas;
32                  (iii)  furthering     the     technical     and
33             intellectual  skills  of  the managers and owners of
34             Illinois small businesses;
 
SB40 Enrolled              -62-                LRB9101877PTmb
 1                  (iv)  commercialization   of   technology   and
 2             research;
 3                  (v)  development of prototypes and testing  new
 4             products;
 5                  (vi)  identify    and    assist   in   securing
 6             financing;
 7                  (vii)  marketing assistance; and
 8                  (viii)  assisting Illinois inventors in finding
 9             Illinois manufacturers to produce and  market  their
10             inventions.
11             A  commercialization center may charge a nominal fee
12        or accept royalty agreements for  conducting  feasibility
13        studies and other services.
14             (c)  Grants  may  be  awarded  by  the Department to
15        Illinois businesses to  fund  research  and  consultation
16        arrangements   between   businesses   and   universities,
17        community   colleges,   research  institutions,  research
18        consortiums and other not-for-profit entities within this
19        State.
20             The Department shall give priority to Illinois small
21        businesses in awarding grants. Each grant  awarded  under
22        this paragraph (c) shall provide funding for up to 50% of
23        the  cost  of  the research or consultation arrangements,
24        not to exceed $100,000; provided that the grant recipient
25        utilizes Illinois not for profit  research  and  academic
26        institutions  to  perform  the  research  and development
27        function for which grant funds were requested.
28             (d)  Grants may be awarded  to  research  consortium
29        and  other  qualified  applicants,  in  conjunction  with
30        private  sector  or  federal  funding, for other creative
31        systems that bridge university  resources  and  business,
32        technological, production and development concerns.
33             (e)  For   the   purposes  of  subsection  (2),  (i)
34        "Illinois business" means a "small business  concern"  as
 
SB40 Enrolled              -63-                LRB9101877PTmb
 1        defined  in  Title  15  United  States Code, Section 632,
 2        which primarily conducts its business in  Illinois;  (ii)
 3        "high   technology"   means   any  area  of  research  or
 4        development  designed  to  foster  greater  knowledge  or
 5        understanding  in  fields  such  as   computer   science,
 6        electronics,   physics,  chemistry  or  biology  for  the
 7        purpose of producing designing, developing  or  improving
 8        prototypes  and  new  processes;  (iii)  "private sector"
 9        shall have the meaning ascribed to it in Title 29  United
10        States Code, Section 1503; (iv) "University" means either
11        a  degree  granting  institution  located  in Illinois as
12        defined in Section 2 of the Academic  Degree  Act,  or  a
13        State-supported    institution    of    higher   learning
14        administered by the Board of Trustees of  the  University
15        of  Illinois,  the Board of Trustees of Southern Illinois
16        University,  the  Board  of  Trustees  of  Chicago  State
17        University, the Board of  Trustees  of  Eastern  Illinois
18        University,  the  Board  of  Trustees  of Governors State
19        University, the  Board  of  Trustees  of  Illinois  State
20        University,   the   Board  of  Trustees  of  Northeastern
21        Illinois University, the Board of  Trustees  of  Northern
22        Illinois  University,  the  Board  of Trustees of Western
23        Illinois University, or the  Illinois  Community  College
24        Board;  (v) "venture" means any Illinois business engaged
25        in research and development to  create  new  products  or
26        services   with  high  growth  potential;  (vi)  Illinois
27        research institutions refers to not-for-profit  entities,
28        which  include  federally-funded  research  laboratories,
29        that  conduct research and development activities for the
30        purpose of producing, designing, developing, or improving
31        prototypes   and   new   processes;   and   (vii)   other
32        not-for-profit entities  means  non-profit  organizations
33        based  in  Illinois  that  are  primarily  devoted to new
34        enterprise or product development.
 
SB40 Enrolled              -64-                LRB9101877PTmb
 1             (f)  The Department may establish a program of grant
 2        assistance on a matching basis to universities, community
 3        colleges, small business development  centers,  community
 4        action   agencies   and   other  not-for-profit  economic
 5        development  agencies   to   encourage   new   enterprise
 6        development  and  new business formation and to encourage
 7        enterprises in this State.  The  Department  may  provide
 8        grants,  which  shall  be  exempt  from the provisions of
 9        subsection  (3)  of  this   Section,   to   universities,
10        community  colleges,  small business development centers,
11        community  action  agencies  and   other   not-for-profit
12        economic  development  entities for the purpose of making
13        loans to small businesses.  All grant applications  shall
14        contain   information  as  required  by  the  Department,
15        including the following:  a  program  operation  plan;  a
16        certification  and  assurance  that  the  small  business
17        applicants have received business development training or
18        education,  have  a  business  and  finance plan and have
19        experience  in  the  proposed  business   area;   and   a
20        description  of  the  support  services  which  the grant
21        recipient will provide to the small  business.   No  more
22        than  10% of the grant may be used by the grant recipient
23        for  administrative  costs  associated  with  the  grant.
24        Grant recipients may use grant funds under  this  program
25        to  make  loans  on terms and conditions favorable to the
26        small  business  and  shall  give   priority   to   those
27        businesses  located  in  high  poverty  areas, enterprise
28        zones, or both.
29        (3)  There is created within the Department, a Technology
30    Innovation and Commercialization Grants-in-Aid Council  which
31    shall  consist  of  2  representatives  of  the Department of
32    Commerce and Community Affairs appointed by  the  Department;
33    one representative of the Illinois Board of Higher Education,
34    appointed  by  the  Board;  one  representative of science or
 
SB40 Enrolled              -65-                LRB9101877PTmb
 1    engineering appointed by the Governor; two representatives of
 2    business, appointed by the Governor;  one  representative  of
 3    small business, appointed by the Governor; one representative
 4    of  the  Department of Agriculture, appointed by the Director
 5    of  Agriculture;  and  one  representative  of  agribusiness,
 6    appointed by the Director of  Agriculture.  The  Director  of
 7    Commerce  and  Community  Affairs  shall  appoint  one of the
 8    Department's representatives to  serve  as  chairman  of  the
 9    Council.  The  Council  members shall receive no compensation
10    for their services but shall be reimbursed for their expenses
11    actually incurred by them in the performance of their  duties
12    under  this  subsection.  The  Department shall provide staff
13    services to the Council. The Council shall provide for review
14    and evaluation of all applications received by the Department
15    under subsection (2) of this Section and make recommendations
16    on those projects to be funded. The Council shall also assist
17    the Department in monitoring the projects and  in  evaluating
18    the  impact  of  the  program on technological innovation and
19    business development within the State.
20        (4)  There is hereby created a special fund in the  State
21    Treasury  to  be  known  as  the  Technology  Innovation  and
22    Commercialization  Fund. The moneys in such Fund may be used,
23    subject to appropriation, only for making grants pursuant  to
24    subsection  (2)  of  this Section and for the purposes of the
25    Technology Advancement and  Development  Act.  All  royalties
26    received by the Department shall be deposited in such Fund.
27        (5)  There  is hereby created a special fund in the State
28    treasury to be known as the Federal Job-Training  Information
29    Systems Revolving Fund.  The deposit of monies into this fund
30    shall  be  limited  to  the collection of charges pursuant to
31    paragraph (f) of subsection (1) of this Section.  The  monies
32    in the fund may only be used, subject to appropriation by the
33    General Assembly for the purpose of financing the maintenance
34    and   operation   of   the   automated  Federal  Job-Training
 
SB40 Enrolled              -66-                LRB9101877PTmb
 1    Information Systems pursuant to paragraph (f)  of  subsection
 2    (1) of this Section.
 3        (6)  When  the  Department  is  involved  in developing a
 4    federal or State funded training or  retraining  program  for
 5    any  employer,  the Department will assist and encourage that
 6    employer in  making  every  effort  to  reemploy  individuals
 7    previously employed at the facility.  Further, the Department
 8    will  provide  a  list of said employees to said employer for
 9    consideration for reemployment and will report the results of
10    this  effort  to  the  Illinois  Job  Training   Coordinating
11    Council.   This  requirement  shall  be  in  effect  when the
12    following conditions are met:
13             (a)  the employer is reopening, or is  proposing  to
14        reopen,  a  facility  which  was  last  closed during the
15        preceding 2 years,
16             (b)  a substantial number of the  persons  who  were
17        employed  at  the facility before its most recent closure
18        remain unemployed, and
19             (c)  the product or service produced by, or proposed
20        to be produced  by,  the  employer  at  the  facility  is
21        substantially  similar to the product or service produced
22        at the facility before its most recent closure.
23        (7)  The Department, in cooperation with the  Departments
24    of  Human  Services  and Employment Security, may establish a
25    program to encourage community action agencies  to  establish
26    programs  that  will help unemployed and underemployed single
27    parents to identify, access, and develop, through such  means
28    as  counseling  or mentoring, internal and external resources
29    that will enable those single parents to  become  emotionally
30    and   financially   self-sufficient.   The  intended  primary
31    beneficiaries of the local programs shall be female heads  of
32    households  who are at least 22 but less than 46 years of age
33    and who are physically able to work  but  are  unemployed  or
34    underemployed.   The  Department  may make grants, subject to
 
SB40 Enrolled              -67-                LRB9101877PTmb
 1    the  availability  of  funding,  to  communities  and   local
 2    agencies  for  the  purpose of establishing local programs as
 3    described  in  this  subsection  (7).   A  grant  under  this
 4    subsection (7) shall be made for a period of one year and may
 5    be renewed if the Department determines that the  program  is
 6    successful  in  meeting  its  objectives.   If the Department
 7    determines that implementation of a program has resulted in a
 8    savings of State moneys that otherwise would have  been  paid
 9    to  beneficiaries of the program, the Department, on renewing
10    a grant, may adjust the grant amount for  those  demonstrated
11    savings.  For  purposes  of  this  subsection,  a  person  is
12    underemployed  if  his  or her income from employment is less
13    than 185% of the federal official poverty income guideline.
14    (Source: P.A. 89-4, eff. 1-1-96; 89-507, eff. 7-1-97; 90-454,
15    eff. 8-16-97.)

16        Section 15-110.  The Women's Business  Ownership  Act  is
17    amended by changing Section 20 as follows:

18        (20 ILCS 705/20)
19        (Section scheduled to be repealed on September 1, 1999)
20        Sec.  20.  Repeal. This Act is repealed September 1, 2004
21    1999.
22    (Source: P.A. 88-597, eff. 8-28-94.)

23        Section 15-115.  The Illinois Economic Development  Board
24    Act  is  amended by changing Section 3 and adding Section 4.5
25    as follows:

26        (20 ILCS 3965/3) (from Ch. 127, par. 3953)
27        Sec. 3.  The board shall be  composed  of  citizens  from
28    both  the private and public sectors who are actively engaged
29    in  organizations  and  businesses  that   support   economic
30    expansion,  industry enhancement and job creation.  The board
 
SB40 Enrolled              -68-                LRB9101877PTmb
 1    shall be composed of the following persons:
 2             (a) the Governor or his or her designee;
 3             (b) four for members of the  General  Assembly,  one
 4        each  appointed  by  the  President  of  the  Senate, the
 5        Speaker of the House of Representatives, and the minority
 6        leaders of the Senate and House of Representatives;
 7             (c) 20 members appointed by the  Governor  including
 8        representatives   of   small   business,  minority  owned
 9        companies, women owned companies, manufacturing, economic
10        development professionals, and  citizens  at  large.  one
11        representative  of a manufacturing company employing more
12        than 1,000 persons;
13             (d)  (blank) one representative of  a  manufacturing
14        company employing fewer than 100 persons;
15             (e)  (blank)  one  representative of a manufacturing
16        company employing between 100 and 1,000 persons;
17             (f)  (blank) three  representatives  from  organized
18        labor;
19             (g)  (blank)   one   representative   from  a  major
20        financial institution;
21             (h)  (blank) one representative from agriculture;
22             (i)  (blank) one representative from education;
23             (j)  (blank)  one  representative  from  the  retail
24        industry;
25             (k)  (blank) one  representative  from  the  service
26        industry;
27             (l)  (blank); one economic development professional;
28        and
29             (m)  (blank) five citizens at large.
30        The  director of the Department of Commerce and Community
31    Affairs shall serve as an ex officio member of the board.
32        The Governor shall  appoint  the  members  of  the  board
33    specified  in  subsections  (c)  through (m) of this Section,
34    subject to the advice and consent of the  Senate,  within  30
 
SB40 Enrolled              -69-                LRB9101877PTmb
 1    days after the effective date of this Act.  The first meeting
 2    of  the  board shall occur within 60 days after the effective
 3    date of this Act.
 4        The Governor shall  appoint  a  chairperson  and  a  vice
 5    chairperson  of the board.  Members shall serve 2-year terms.
 6    The position of a legislative member shall become  vacant  if
 7    the  member ceases to be a member of the General Assembly.  A
 8    vacancy in a board position shall be filled by  the  original
 9    appointing authority.
10        The  board  shall include representation from each of the
11    State's geographic areas.
12        The board shall meet quarterly or  at  the  call  of  the
13    chair  and  shall create subcommittees as needed to deal with
14    specific issues and concerns.  Members  shall  serve  without
15    compensation but may be reimbursed for expenses.
16    (Source: P.A. 86-1430.)

17        (20 ILCS 3965/4.5 new)
18        Sec.  4.5.   Additional  duties.   In  addition  to those
19    duties  granted  under  Section  4,  the  Illinois   Economic
20    Development Board shall:
21             (1)  Establish   a   Business   Investment  Location
22        Development  Committee  for   the   purpose   of   making
23        recommendations   for   designated  economic  development
24        projects.  At the request of the Board, the  Director  of
25        Commerce  and  Community  Affairs or his or her designee;
26        the Director of the Bureau of the Budget, or his  or  her
27        designee;   the  Director  of  Revenue,  or  his  or  her
28        designee; the Director of Employment Security, or his  or
29        her  designee;  and  an  elected official of the affected
30        locality, such as the chair of the county  board  or  the
31        mayor,  may  serve  as members of the Committee to assist
32        with its analysis and deliberations.
33             (2)  Establish   a   Business   Regulatory    Review
 
SB40 Enrolled              -70-                LRB9101877PTmb
 1        Committee to generate private sector analysis, input, and
 2        guidance  on methods of regulatory assistance and review.
 3        At the  determination  of  the  Board,  individual  small
 4        business  owners  and  operators;  national,  State,  and
 5        regional organizations representative of small firms; and
 6        representatives of existing State or regional councils of
 7        business  may  be  designated as members of this Business
 8        Regulatory Review Committee.

 9        Section 15-120.  The Business Enterprise for  Minorities,
10    Females,  and  Persons  with  Disabilities  Act is amended by
11    changing Section 9 as follows:

12        (30 ILCS 575/9) (from Ch. 127, par. 132.609)
13        (Section scheduled to be repealed on September 6, 1999.)
14        Sec. 9. This Act is repealed September 6, 2004 1999.
15    (Source: P.A. 88-597, eff. 8-28-94.)

16                             ARTICLE 20

17        Section 20-1.  Short Title.  This Article may be cited as
18    the State and Regional Development Strategy Act.

19        Section 20-5.  Purpose. The General Assembly  finds  that
20    an  essential  step to assist the Illinois economy, both on a
21    statewide and on a local level, to  respond  to  increasingly
22    competitive  global  conditions  and  economic  trends  is to
23    establish a consensus on  a  long-term  economic  development
24    strategy that recognizes both the competitive position of the
25    State's regions and needs of commerce and industry.  A unique
26    partnership  between  State  and local development groups and
27    between  the  private  and   public   sectors   can   set   a
28    comprehensive  and responsive agenda of community improvement
29    and community economic development.
 
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 1        Section 20-10.  Strategic Planning.   The  Department  of
 2    Commerce and Community Affairs has the following powers:
 3        By  no  later than February 1, 2000, the Department shall
 4    prepare an economic development strategy for Illinois for the
 5    period beginning on July 1, 2000 and ending on June 30, 2005,
 6    and for the 4 years next ensuing. By no later  than  February
 7    1,  2000  and  annually thereafter, the Department shall make
 8    modifications in the economic development strategy for the  4
 9    years   beginning   on   the  next  ensuing  July  1  as  the
10    modifications are warranted by changes in economic conditions
11    or by other factors, including changes in policy,  and  shall
12    prepare  an  economic development strategy for the fifth year
13    beginning after the next ensuing July  1.  In  preparing  the
14    strategy  and  in  making  modifications to the strategy, the
15    Department shall take  cognizance  of  the  special  economic
16    attributes of the various component areas of the State.
17             (1) The "component areas" shall be determined by the
18        Department after a county by county economic analysis and
19        shall  group  counties  that  are  close  in geographical
20        proximity and share common economic traits such as  labor
21        market areas.
22             (2)    The   strategy   shall   recommend   specific
23        legislative, administrative, and programmatic  action  at
24        both  the  State  and  area level for promoting sustained
25        economic growth at or above national  rates  of  economic
26        growth  while  keeping  the  rate  of  unemployment below
27        national levels of unemployment.
28             (3) The strategy  shall  include  an  assessment  of
29        historical patterns of economic activity for the State as
30        a  whole  and by area, and projections of future economic
31        trends for the State as a whole and by  area.    National
32        economic  trends  and  projections shall be considered in
33        the formulation of the  State and area  projections.  All
34        assumptions made in the formulation of the State and area
 
SB40 Enrolled              -72-                LRB9101877PTmb
 1        projections  shall be clearly and explicitly set forth in
 2        the strategy.
 3             (4) The strategy  shall  identify,  for  each  area,
 4        those community economic improvement characteristics that
 5        most  likely  will influence whether the area will exceed
 6        or fall below the rate of overall State economic growth.
 7             (5) The strategy shall recommend programmatic action
 8        to be taken to foster  and  promote  economic  growth  in
 9        specific  areas,  taking  into  account the resources and
10        economic factors indigenous to the areas.
11                  (A)  The strategy shall identify for the  State
12             and  each  region  the critical business development
13             approaches being considered  or  to  be  considered.
14             The  approaches may include, but are not limited to:
15             investment recruitment, such as industry attraction,
16             expansion and retention; trade  development  efforts
17             including  international  trade,  support  for small
18             businesses' efforts to export products and services,
19             tourism   attraction   and   development   including
20             cultural  tourism;  technology  development  efforts
21             including    technology    commercialization     and
22             manufacturing     modernization;     and    business
23             development efforts, including entrepreneurship  and
24             entrepreneurial education, small business management
25             assistance, and business financing.
26                  (B)  The  strategy shall identify for the State
27             and each region the critical workforce training  and
28             development  being  considered  or to be considered.
29             The approaches may include, but are not limited  to:
30             customized   job   training,  retraining  and  skill
31             upgrading, economic  adjustment,  job  creation  and
32             addressing  labor shortages in areas of high demand;
33             the market for and quality of the local labor force;
34             the  quality  of   the   education   and   workforce
 
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 1             infrastructure; and related issues.
 2                  (C)  The  strategy shall identify for the State
 3             and each region the critical  community  development
 4             approaches  being  considered  or  to be considered.
 5             The approaches may include, but are not limited  to:
 6             community   growth   management   such  as  regional
 7             planning  and  smart  growth;  area   revitalization
 8             including  brownfields  redevelopment  and  facility
 9             reuse;  and  family self-sufficiency such as through
10             housing conservation and economic opportunity.
11                  (D)  The strategy shall identify for the  State
12             and  each  region  the  critical  public  facilities
13             development  approaches  being  considered  or to be
14             considered.  The approaches may include, but are not
15             limited  to:  local  public  services;  the   local,
16             regional,  and State tax and regulatory climate; the
17             physical  infrastructure,  including  communications
18             and transportation systems;  the  capacity  of  area
19             utilities;  and  the  quality of public institutions
20             such as schools.
21                  (E)  The strategy shall identify for the  State
22             and  each  region  the  other  critical  marketplace
23             systems,  including:  the financial marketplace; the
24             competitive advantages  of  the  area  in  terms  of
25             natural  resources,  capital resources or technology
26             resources;  and   other   factors   affecting   area
27             development.
28             (6)  In  preparing  the strategy or modifications to
29        the  strategy,  the  Department  shall  work  with  State
30        agencies, boards,  and  commissions  whose  programs  and
31        activities  significantly affect economic activity in the
32        State  including   the   Illinois   Development   Finance
33        Authority,  the  Department of Revenue, the Department of
34        Transportation, the Department  of  Employment  Security,
 
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 1        the  Department of Agriculture, the Department of Natural
 2        Resources, the Environmental Protection Agency, and other
 3        agencies, boards,  or  commissions  as  appropriate.  The
 4        Directors  of the agencies, boards, and commissions shall
 5        provide the assistance to the Department as the  Governor
 6        deems appropriate.
 7             (7)   In  preparing the strategies for the component
 8        areas,  the  Department  shall  consult  with  local  and
 9        regional  economic   development   organizations,   local
10        elected officials, community-based organizations, service
11        delivery   providers,   and   other  organizations  whose
12        programs and  activities  significantly  affect  economic
13        activity in the area.
14             (8)  In preparing the economic development strategy,
15        the   Department   shall   take  into  consideration  any
16        decisions  or  recommendations   related   to   programs,
17        services,  and  government  regulations  contained in the
18        strategy that  have  been  rendered  as  a  result  of  a
19        Statewide Performance Review.
20             (9) The strategy shall be presented to the Governor,
21        the  President  and  Minority  Leader  of the Senate, the
22        Speaker   and   Minority   Leader   of   the   House   of
23        Representatives, the members  of  the  Illinois  Economic
24        Development  Board,  and  the  Chair  of the Economic and
25        Fiscal Commission   on  February  1,  2000  and  annually
26        thereafter.
27             (10)  The  strategy  shall  be  published  and  made
28        available  to  the  public  in  both paper and electronic
29        media.

30        (20 ILCS 605/46.44 rep.)
31        Section  20-105.   The  Civil  Administrative   Code   of
32    Illinois is amended by repealing Section 46.44.
 
SB40 Enrolled              -75-                LRB9101877PTmb
 1                            ARTICLE 999.

 2        Section  999-1.   Effective  date.  This Act takes effect
 3    upon becoming law.

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