State of Illinois
91st General Assembly
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Public Act 91-0034

SB1080 Enrolled                                LRB9105164EGfg

    AN ACT in relation to business development.

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

    Section  5.  The Civil Administrative Code of Illinois is
amended by changing Sections  46.19j  and  46.21  and  adding
Sections 46.75 and 46.76 as follows:

    (20 ILCS 605/46.19j)
    Sec.   46.19j.  Job  Training  and  Economic  Development
Demonstration Grant Program.
    (a)  Legislative findings.  The  General  Assembly  finds
that:
         (1)  despite  the  large  number  of  unemployed job
    seekers, many employers are  having  difficulty  matching
    the  skills  they  require  with the skills of workers; a
    similar  problem  exists  in  industries  where   overall
    employment  may  not  be  expanding but there is an acute
    need for skilled workers in particular occupations;
         (2)  the  State  of  Illinois  should  foster  local
    economic development  by  linking  the  job  training  of
    unemployed  disadvantaged  citizens  with  the  workforce
    needs of local business and industry; and
         (3)  employers  often  need assistance in developing
    training resources that will provide  work  opportunities
    for disadvantaged populations.
    (b)  Definitions.  As used in this Section:
    "Community   based   provider"   means  a  not-for-profit
organization, with local boards of directors,  that  directly
provides job training services.
    "Disadvantaged  persons" has the same meaning as the term
is defined in  Titles  II-A  and  II-C  of  the  federal  Job
Training Partnership Act.
    "Training  partners" means a community-based provider and
one or more  employers  who  have  established  training  and
placement linkages.
    (c)  From   funds  appropriated  for  that  purpose,  the
Department of Commerce and Community Affairs shall administer
a Job Training and Economic Development  Demonstration  Grant
Program.   The  Director  shall make not less than 12 and not
more than 20 demonstration project grants to  community-based
providers.    The   grants  shall  be  made  to  support  the
following:
         (1)  partnerships between community-based  providers
    and  employers  for  the  customized training of existing
    low-skilled,   low-wage   employees   and   newly   hired
    disadvantaged persons; and
         (2)  partnerships between community-based  providers
    and  employers  to  develop and operate training programs
    that link the work force needs of local industry with the
    job training of disadvantaged persons.
    (d)  For  projects  created  under   paragraph   (1)   of
subsection (c):
         (1)  the   Department   shall  give  a  priority  to
    projects that include an in-kind match by an employer  in
    partnership  with a community-based provider and projects
    that use instructional materials and training instructors
    directly used in the  specific  industry  sector  of  the
    partnership employer; and
         (2)  the  partnership  employer  must  be  an active
    participant in the curriculum development,  employ  under
    250    workers,   and   train   primarily   disadvantaged
    populations.
    (e)  For  projects  created  under   paragraph   (2)   of
subsection (c):
         (1)  community  based organizations shall assess the
    employment barriers and needs of local residents and work
    in   partnership   with   local   economic    development
    organizations to identify the priority workforce needs of
    the local industry;
         (2)  training  partners,  that  is,  community-based
    organizations  and  employers,  shall  work  together  to
    design   programs   with   maximum   benefits   to  local
    disadvantaged persons and local employers;
         (3)  employers  must  be  involved  in   identifying
    specific   skill-training   needs,  planning  curriculum,
    assisting   in   training   activities,   providing   job
    opportunities, and coordinating job retention for  people
    hired  after  training through this program and follow-up
    support; and
         (4)  the community-based organizations  shall  serve
    disadvantaged persons, including welfare recipients.
    (f)  The  Department  shall  adopt  rules  for  the grant
program and shall create a competitive application  procedure
for those grants to be awarded beginning in fiscal year 1998.
Grants  shall  be  based  on  a performance based contracting
system.  Each grant shall be based on the cost  of  providing
the  training  services  and  the goals negotiated and made a
part of the contract between the Department and the  training
partners.  The goals shall include the number of people to be
trained,  the  number who stay in the program, the number who
complete the program, the number who enter employment,  their
wages,  and  the  number who retain employment.  The level of
success in achieving employment, wage,  and  retention  goals
shall  be  a  primary  consideration for determining contract
renewals and  subsequent  funding  levels.   In  setting  the
goals,  due  consideration  shall  be given to the education,
work experience, and job readiness  of  the  trainees;  their
barriers  to  employment; and the local job market.  Periodic
payments under the contracts shall be based on the degree  to
which  the relevant negotiated goals have been met during the
payment period.
(Source: P.A. 90-474,  eff.  1-1-98;  90-655,  eff.  7-30-98;
90-758, eff. 8-14-98.)

    (20 ILCS 605/46.21) (from Ch. 127, par. 46.21)
    Sec.  46.21.  To make and enter into contracts, including
but not limited to making grants and loans to those units  of
local government, private agencies as defined in the Illinois
State  Auditing Act, and non-profit corporations, educational
institutions,  and  for-profit   businesses   as   authorized
specified  by the General Assembly pursuant to appropriations
by the General Assembly from the Build  Illinois  Bond  Fund,
and  the Build Illinois Purposes Fund, the Fund for Illinois'
Future, the Capital Development Fund, and the General Revenue
Fund, and  generally  to  do  all  such  things  as,  in  its
judgment,   may   be   necessary,  proper  and  expedient  in
accomplishing its duties.
(Source: P.A. 85-288.)

    (20 ILCS 605/46.75 new)
    Sec. 46.75. Federal Workforce Development Fund.
    (a)  The Department may  accept  gifts,  grants,  awards,
matching  contributions, interest income, appropriations, and
cost sharings from individuals, businesses, governments,  and
other  third-party  sources, on terms that the Director deems
advisable, for any or all of the following purposes:
         (1)  to  assist  recipients,  including   recipients
    under  the  Temporary Assistance to Needy Families (TANF)
    program, to  obtain  and  retain  employment  and  become
    economically self-sufficient;
         (2)  to  assist economically disadvantaged and other
    youth to make a  successful  transition  from  school  to
    work; and
         (3)  to   assist   other  individuals  targeted  for
    services  through  education,  training,  and   workforce
    development  programs to obtain employment-related skills
    and obtain employment.
    (b)  The Federal Workforce Development Fund is created as
a special fund in the State Treasury, and all moneys received
under this Section shall be deposited into that Fund.  Moneys
in the Federal Workforce Development Fund may be expended for
purposes consistent with the  conditions  under  which  those
moneys  are  received,  subject to appropriations made by the
General Assembly for those purposes.

    (20 ILCS 605/46.76 new)
    Sec. 46.76.  Energy Assistance Contribution Fund.
    (a)  The Department may  accept  gifts,  grants,  awards,
matching  contributions, interest income, appropriations, and
cost sharings from individuals, businesses, governments,  and
other  third-party  sources, on terms that the Director deems
advisable,  to  assist   eligible   households,   businesses,
industries,  educational institutions, hospitals, health care
facilities,  and  not-for-profit  entities  to   obtain   and
maintain  reliable  and efficient energy related services, or
to improve the efficiency of such services.
    (b)  The Energy Assistance Contribution Fund  is  created
as  a  special  fund  in  the  State Treasury, and all moneys
received under this Section  shall  be  deposited  into  that
Fund.   Moneys in the Energy Assistance Contribution Fund may
be expended for purposes consistent with the conditions under
which those moneys are received,  subject  to  appropriations
made by the General Assembly for those purposes.

    Section  10.   The State Finance Act is amended by adding
Sections 5.490 and 5.491 as follows:

    (30 ILCS 105/5.490 new)
    Sec. 5.490.  The Federal Workforce Development Fund.

    (30 ILCS 105/5.491 new)
    Sec. 5.491.  The Energy Assistance Contribution Fund.

    Section  15.   The  Build  Illinois  Act  is  amended  by
changing Sections 8-3, 10-3 and 10-4 as follows:

    (30 ILCS 750/8-3) (from Ch. 127, par. 2708-3)
    Sec. 8-3.  Powers of the Department.  The Department  has
the power to:
    (a)  provide  business  development public infrastructure
loans or grants from appropriations from the  Build  Illinois
Bond  Fund,  the  Build  Illinois Purposes Fund, the Fund for
Illinois' Future, and the Public Infrastructure  Construction
Loan  Fund  to  local  governments  to  provide  or improve a
community's public infrastructure so as to create  or  retain
private  sector  jobs  pursuant  to  the  provisions  of this
Article;
    (b)  provide    affordable    financing     of     public
infrastructure  loans  and  grants to, or on behalf of, local
governments, local public entities, medical  facilities,  and
public  health  clinics  from  appropriations from the Public
Infrastructure Construction Loan  Fund  for  the  purpose  of
assisting  with  the  financing, or application and access to
financing, of a community's public  infrastructure  necessary
to health, safety, and economic development;
    (c)  enter  into  agreements, accept funds or grants, and
engage  in  cooperation  with   agencies   of   the   federal
government,  or  state  or local governments to carry out the
purposes of this  Article,  and  to  use  funds  appropriated
pursuant   to   this   Article   to  participate  in  federal
infrastructure loan and grant programs upon  such  terms  and
conditions as may be established by the federal government;
    (d)  establish  application,  notification, contract, and
other procedures, rules, or regulations deemed necessary  and
appropriate to carry out the provisions of this Article;
    (e)  coordinate   assistance   under  this  program  with
activities of the Illinois Development Finance  Authority  in
order  to  maximize the effectiveness and efficiency of State
development programs;
    (f)  coordinate assistance under the Affordable Financing
of Public Infrastructure Loan  and  Grant  Program  with  the
activities  of  the  Illinois  Development Finance Authority,
Illinois  Rural  Bond   Bank,   Illinois   Farm   Development
Authority,  Illinois  Housing Development Authority, Illinois
Environmental Protection Agency, and other federal and  State
programs  and  entities  providing  financing  assistance  to
communities   for   public   health,   safety,  and  economic
development infrastructure;
    (f-5)  provide staff, administration, and related support
required to manage the programs authorized under this Article
and pay for the staffing, administration, and related support
from the Public Infrastructure  Construction  Loan  Revolving
Fund;
    (g)  exercise  such  other  powers  as  are  necessary or
incidental to the foregoing.
(Source: P.A. 90-454, eff. 8-16-97.)

    (30 ILCS 750/10-3) (from Ch. 127, par. 2710-3)
    Sec. 10-3.  Powers and Duties.  The  Department  has  the
power to:
    (a)  Provide loans from the Build Illinois Bond Fund, the
Build  Illinois Purposes Fund, the Fund for Illinois' Future,
or  the  Large  Business  Attraction  Fund  to   a   business
undertaking a project and accept mortgages or other evidences
of indebtedness or security of such business.
    (b)  Provide  grants  from  the Build Illinois Bond Fund,
the Build Illinois Purposes  Fund,  the  Fund  for  Illinois'
Future,  or  the Large Business Attraction Fund to or for the
direct benefit of a business undertaking a project.  Any such
grant shall (i) be made and used  only  for  the  purpose  of
assisting  the  financing  of the business for the project in
order to reduce the cost of financing to the  business,  (ii)
be  made  only  if  a  participating lender, or other funding
source including the applicant, also provides  a  portion  of
the  financing  with  respect to the project, and only if the
Department determines, on the basis of  all  the  information
available  to it, that the project would not be undertaken in
Illinois unless the grant is provided, (iii) provide no  more
than  25%  of  the  total dollar amount of any single project
cost and be approved for amounts from the Fund not to  exceed
$500,000  for  any  single  project,  unless  waived  by  the
Director  upon  a  finding that such waiver is appropriate to
accomplish the purpose of this Article,  (iv)  be  made  only
after the Department has determined that the grant will cause
a  project to be undertaken which has the potential to create
substantial employment in  relation  to  the  amount  of  the
grant, and (v) be made with a business that has certified the
project  is  a  new  plant start-up or expansion and is not a
relocation of an  existing  business  from  another  site  in
Illinois   unless  that  relocation  results  in  substantial
employment growth.
    (c)  Enter into agreements, accept funds  or  grants  and
cooperate  with  agencies  of  the  federal government, local
units of government and local regional  economic  development
corporations  or  organizations  for the purposes of carrying
out this Article.
    (d)  Enter into contracts, letters of credit or any other
agreements or contracts with financial institutions necessary
or desirable to carry out the purposes of this  Article.  Any
such  agreement  or contract may include, without limitation,
terms and provisions relating to a specific project  such  as
loan   documentation,   review   and   approval   procedures,
organization  and  servicing  rights,  default conditions and
other program aspects.
    (e)  Fix, determine, charge  and  collect  any  premiums,
fees,  charges,  costs  and  expenses,  including application
fees, commitment fees, program  fees,  financing  charges  or
publication fees in connection with its activities under this
Article.
    (f)  Establish  application,  notification,  contract and
other procedures, rules or regulations deemed  necessary  and
appropriate.
    (g)  Subject  to  the  provisions  of  any  contract with
another  person  and   consent   to   the   modification   or
restructuring  of  any loan agreement to which the Department
is a party.
    (h)  Take any actions which are necessary or  appropriate
to  protect  the State's interest in the event of bankruptcy,
default, foreclosure or  noncompliance  with  the  terms  and
conditions  of financial assistance or participation provided
under this Article, including the  power  to  sell,  dispose,
lease  or  rent,  upon terms and conditions determined by the
Director to be appropriate, real or personal  property  which
the Department may receive as a result thereof.
    (i)  Acquire  and  accept  by  gift,  grant,  purchase or
otherwise, but not by condemnation, fee simple title, or such
lesser interest as may be desired, in land, and to improve or
arrange for the improvement of such land  for  industrial  or
commercial  site development purposes, and to lease or convey
such land, or interest in land, so acquired and so  improved,
including sale and conveyance subject to a mortgage, for such
price, upon such terms and at such time as the Department may
determine,  provided  that  prior to exercising its authority
under this subsection, the Director  shall  find  that  other
means  of  financing  and developing any such project are not
reasonably available and that such action is consistent  with
the purposes and policies of this Article.
    (j)   Provide grants from the Build Illinois Bond Fund or
Build  Illinois  Purposes Fund to municipalities and counties
to demolish abandoned buildings pursuant to  Section  11-31-1
of  the  Illinois  Municipal  Code  or  Section 5-1080 of the
Counties Code, for the  purpose  of  making  unimproved  land
available   for   purchase   by   businesses   for   economic
development. Such grants shall be provided only when: (1) the
owner of property on which the abandoned building is situated
has  entered  into  a contract to sell such property; (2) the
Department has determined that the  grant  will  be  used  to
cause  a  project  to  be undertaken which will result in the
creation of employment; (3) the business  which  has  entered
into  a  contract to purchase the property has certified that
it will use the property for a project which is a  new  plant
start-up or expansion or a new venture opportunity and is not
a relocation of an existing business from another site within
the  State  unless  that  relocation  results  in substantial
employment growth.  If  a  municipality  or  county  receives
grants  under  this paragraph, it shall file a notice of lien
against the owner or owners of such demolished  buildings  to
recover  the costs and expenses incurred in the demolition of
such buildings pursuant to Section 11-31-1  of  the  Illinois
Municipal  Code  or Section 5-1080 of the Counties Code.  All
such  costs  and  expenses  recovered  by   the   county   or
municipality  shall  be paid to the Department for deposit in
the Build Illinois Purposes Account. Priority shall be  given
to  enterprise  zones  or  those areas with high unemployment
whose tax base  is  adversely  impacted  by  the  closing  of
existing factories.
    (k)   Exercise  such  other  powers  as  are necessary or
incidental to the foregoing.
(Source: P.A. 88-45.)

    (30 ILCS 750/10-4) (from Ch. 127, par. 2710-4)
    Sec. 10-4.  Loans.  Any  loan  made  under  this  Article
shall:
    (a)  Be  made  only  if  a  participating lender or other
funding source, including  the  applicant,  also  provides  a
portion of the financing with respect to the project and only
if  the  Department  determines,  on  the  basis  of  all the
information available to it, that the project  would  not  be
undertaken  in  Illinois  unless  the  loan is provided.  The
other risk assumption may be in the form of a loan, letter of
credit, guarantee, loan participation, bond purchase,  direct
cash payment, or other form approved by the Department.
    (b)  Finance  no more than 25% of the total amount of any
single project and be approved for amounts from the Fund  not
to exceed $2,000,000 for any single project, unless waived by
the  Director  upon a finding that a waiver is appropriate to
accomplish the purposes of this Article.
    (c)  Be protected by adequate  security  satisfactory  to
the Department to secure payment of the loan agreement.
    (d)  Be  in a principal amount and form and contain terms
and provisions with respect to property  insurance,  repairs,
alterations,  payment  of  taxes and assessments, delinquency
charges, default remedies,  additional  security,  and  other
matters as the Department shall determine adequate to protect
the public interest.
    (e)  Include provisions to call the loan agreement as due
and  payable  if the project is not completed, if the project
fails to generate anticipated employment opportunities, or if
the business ceases to operate the project.
    (f)  Be made only after  the  Department  has  determined
that  the loan will cause a project to be undertaken that has
the potential to create substantial employment in relation to
the principal amount of the loan.
    (g)  Be made with  a  business  that  has  certified  the
project  is  a  new  plant start-up or expansion and is not a
relocation of an  existing  business  from  another  site  in
Illinois   unless  that  relocation  results  in  substantial
employment growth.
    (h)  All  receipts,  including  principal  and   interest
payments,   royalties,   or   other  payments,  paid  to  the
Department because of any loan made under  this  Article  and
all  proceeds  of  assets  of whatever nature received by the
Department as  a  result  of  default  and  delinquency  with
respect  to loans made under this Article, including proceeds
from the sale, disposal, lease, or rental of real or personal
property that the Department may receive as  a  result  of  a
default  or  delinquency,  shall  be deposited into the Large
Business Attraction Fund General Revenue Fund.
(Source: P.A. 87-14.)

    Section 99. Effective date.  This Act takes  effect  July
1, 1999.

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