SB1693ham001 102ND GENERAL ASSEMBLY

Rep. Charles Meier

Filed: 5/12/2021

10200SB1693ham001 LRB102 10886 RJF 25910 a

AMENDMENT TO SENATE BILL 1693

AMENDMENT NO. ______. Amend Senate Bill 1693 by replacing everything after the enacting clause with the following:

"Section 1. Short title. This Act may be cited as the Illinois Industrial Biotech Partnership Act.

Section 5. Purpose. Illinois will actively pursue expansion of the industrial biotechnology and biorenewables industry. This growing field closely aligns with several key industries, such as agriculture and Ag-Tech, life sciences and healthcare, and manufacturing that the State is pursuing through the 2019 Plan to Revitalize the Illinois Economy and Build the Workforce of the Future. Illinois is well positioned to lead the nation with ample feedstocks, dedicated research facilities, specialized job training programs, and an existing manufacturing base required to lead this industry. Modifications to several existing programs will ensure the State provides the correct aid and incentives to help attract this growing industry.

Section 10. Definitions. As used in this Act:

"Department" means the Department of Commerce and Economic Opportunity.

"Industrial biotechnology" means biotechnology focused on new industrial products and processes. Such products are diverse and include industrial materials, chemicals and solvents, and feed and food. This segment of biotechnology is different from health biotechnology (pharmaceuticals), agricultural biotechnology (transgenic crops), or environmental biotechnology (bioremediation).

"Partnership" means the Industrial Biotechnology Public-Private Partnership established under this Act.

Section 15. Industrial Biotechnology Public-Private Partnership.

(a) There is hereby established the Industrial Biotechnology Public-Private Partnership as a State-sponsored board consisting of members from State agencies, research facilities, industry, and agriculture, to promote and market Illinois as the leading destination for research, development, and commercialization for industrial biotechnology.

(b) The Partnership shall consist of the following members:

(1) a representative of the Department of Agriculture, appointed by the Director of Agriculture;

(2) a representative of the Department of Commerce and Economic Opportunity, appointed by the Director of Commerce and Economic Opportunity;

(3) a representative of the Department of Labor, appointed by the Director of Labor;

(4) a representative of the National Corn to Ethanol Research Center, appointed by the Director of Commerce and Economic Opportunity;

(5) a representative of the Integrated Bioprocessing Research Laboratory, appointed by the Director of Commerce and Economic Opportunity;

(6) a representative of the National Center for Agricultural Utilization Research, who shall participate in a non-voting capacity, appointed by the Director of Commerce and Economic Opportunity in consultation with the Director of USDA, Agricultural Research Service;

(7) a representative of an additional State-sponsored, university-affiliated laboratory or research institution conducting industrial biotechnology research (in addition to persons appointed under paragraphs (4) and (5)) appointed by the Director of Commerce and Economic Opportunity;

(8) a representative of an Illinois agricultural commodity group or farmer organization, appointed by the Director of Commerce and Economic Opportunity;

(9) a representative of a grain or oilseed processing company with current facilities located in Illinois, appointed by the Director of Commerce and Economic Opportunity;

(10) a representative of a biotechnology company, appointed by the Director of Commerce and Economic Opportunity;

(11) a representative of an environmental group committed to biorenewables, appointed by the Director of Commerce and Economic Opportunity; and

(12) a representative of a union of operating engineers, appointed by the Director of Commerce and Economic Opportunity.

(c) Members of the Partnership shall be appointed within 90 days after the effective date of this Act. The Partnership shall meet at least quarterly, and hold its first meeting within 90 days after the appointment of all members. At the first meeting of the Partnership, a Chairperson shall be chosen from among the members. Members of the Partnership shall serve without compensation, but may be reimbursed for any expenses incurred in performing their duties.

(d) A non-profit organization, in partnership with the Department, may provide administrative and other support to the Industrial Biotechnology Public-Private Partnership.

Section 20. Duties. The Partnership shall have the following duties:

(1) The Partnership shall develop and direct efforts to attract companies to utilize existing Illinois facilities for research, development, and pre-commercialization activities, including, but not limited to: (i) representing Illinois at biotechnology conferences; (ii) developing promotional and marketing materials in coordination with existing research facilities to use Illinois facilities; (iii) making companies aware of local, State, and federal programs in this State that may help such companies in their activities; and (iv) facilitating meetings for companies that are prospective candidates for establishing a presence in this State.

(2) The Partnership shall develop programs to encourage emerging research, development, and commercialization biotechnology companies to locate production facilities in Illinois, including, but not limited to: (i) acting as an information clearinghouse for new companies on all State programs and investment incentives; and (ii) working with local and regional economic development groups.

(3) The Partnership shall provide advice and recommendations to State agencies on industrial biotechnology, including, but not limited to: (i) the Industrial Biotechnology Workforce Development Grant Program; (ii) grants issued from the Industrial Biotechnology Human Capital Fund; and (iii) grants issued from the Industrial Biotechnology Capital Maintenance Fund.

(4) The Partnership, subject to appropriation, may issue grants for the promotion of industrial biotechnology.

(5) On or before January 31 in years following a year in which State funding was received, the Partnership shall submit a report on the activities of the Partnership to the Department, the General Assembly, and the Governor as provided under this Act.

Section 25. Funding. The Partnership may receive funding through specific appropriations available for its purposes made to the Department. For any amount appropriated to the Partnership under this Section, private funds must be contributed on a 3:1 ratio basis.

Section 30. Reports. On or before January 31 in years following a year in which State funding was received, the Partnership shall submit to the Department, the General Assembly, and the Governor a report describing the use of appropriated funds for purposes including, but not limited to, marketing materials produced, meetings attended, and the hosting of companies visiting this State.

Section 35. Rules. The Department shall adopt all rules necessary for the implementation of this Act.

Section 100. The Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois is amended by adding Section 605-1057 as follows:

(20 ILCS 605/605-1057 new)

Sec. 605-1057. Industrial Biotechnology Workforce Development Grant Program.

(a) The Industrial Biotechnology Workforce Development Grant Program is hereby established as a Program to be implemented and administered by the Department. The Program shall provide grants for the purpose of fostering a well-trained and well-skilled industrial biotechnology workforce.

(b) Subject to appropriation, grants under the Program shall be awarded on an annual basis as follows:

(1) $1,000,000 for industrial biotechnology apprenticeships or apprenticeship programs;

(2) $500,000 for industrial biotechnology talent pipeline management, to emphasize business-oriented strategies to increase workforce competitiveness, improve workforce diversity, and expand a regional talent pool around high-growth industries;

(3) $500,000 for industrial biotechnology industry-aligned credential (digital badging) expansion, to increase the number of workers with in-demand skills needed to obtain a job or advance within the workplace and for merging competency-based education with responsive workforce training strategies; and

(4) $500,000 for high school and community college industrial biotechnology career pathway and pre-apprenticeship program development.

(c) To be eligible for grants provided under the Program, an entity must be either: (i) a State-sponsored, university-affiliated laboratory or research institution conducting collaboratives or for-hire research in the development of biorenewable chemicals, bio-based polymers, materials, novel feeds, or additional value added biorenewables; or (ii) a State-accredited university or community college. An eligible entity must establish that it plans to use grant funds for a purpose specifically provided under subsection (b).

(d) Subject to appropriation, the Department of Commerce and Economic Opportunity shall submit an annual report to the General Assembly and the Governor on the use of grant funds under the Program. The report shall include, but not be limited to: (i) the disbursement of grant funds, categorized by eligible entity; (ii) the number of persons enrolled in or taking advantage of a program established or maintained using grant funds; (iii) the number of persons completing a program established or maintained using grant funds; and (iv) the number of persons gaining employment in the industrial biotechnology industry following completion of a program established or maintained using grant funds.

(e) The Department shall adopt all rules necessary for the implementation and administration of the Program under this Section.

Section 105. The State Finance Act is amended by adding Sections 6z-124.5 and 6z-125 as follows:

(30 ILCS 105/6z-124.5 new)

Sec. 6z-124.5. Industrial Biotechnology Human Capital Fund.

(a) The Industrial Biotechnology Human Capital Fund is created as a special fund in the State treasury and may receive funds from any source, public or private, including moneys appropriated for use by the Department of Commerce and Economic Opportunity and laboratories and institutions conducting industrial biotechnology research. Subject to appropriation, the funding allocation for the Fund shall be no less than $1,000,000 from available funds in the General Revenue Fund for the first 5 years after the effective date of this amendatory Act of the 102nd General Assembly.

(b) Moneys in the Fund shall be used for providing grants directly to laboratories and research institutions for the purpose of hiring and retaining in-house specialists, to be known as Experts-In-Residence, with the knowledge and experience in moving industrial biotechnology products through the development phase. Any eligible entity, as a condition of receiving a grant under this Section, shall contribute moneys to the Fund as a part of a cost sharing agreement between the grantee and the Department of Commerce and Economic Opportunity, as shall be prescribed by the Department by rule. Grants issued under this Section may be for a period of 2 years. Any eligible entity issued a grant under this Section shall be eligible for more than one such grant, but no more than one grant annually, for the purpose of hiring and retaining Experts-In-Residence; however, such entity may maintain more than one grant at any given time.

(c) To be eligible for grants provided from the Fund, an entity must be a State-sponsored, university-affiliated laboratory or research institution conducting collaboratives or for-hire research in the development of biorenewable chemicals, bio-based polymers, materials, novel feeds, or additional value added biorenewables. Eligible entities must also establish that the Expert-In-Residence they seek to hire or retain using the grant funds possesses expertise in fermentation engineering, process engineering, catalytic engineering, analytical chemistry, or is a scale-up specialist.

(d) Subject to appropriation, the Department of Commerce and Economic Opportunity shall submit an annual report to the General Assembly and the Governor on the use of moneys in the Fund. The report shall include, but not be limited to: (i) the number of laboratories or institutions utilizing moneys in the Fund, including the name of such entities; (ii) the number of Experts-In-Residence hired by each laboratory or institution; (iii) the expertise or specialty area of each Expert-In-Residence for which he or she was hired or retained; and (iv) a summary of the benefit to the economy of the State of Illinois economy in providing the grants.

(e) The Department of Commerce and Economic Opportunity shall adopt all rules necessary for the implementation of this Section.

(30 ILCS 105/6z-125 new)

Sec. 6z-125. Industrial Biotechnology Capital Maintenance Fund.

(a) The Industrial Biotechnology Capital Maintenance Fund is created as a special fund in the State treasury and may receive funds from any source, public or private, including from moneys appropriated for use by the Department of Commerce and Economic Opportunity and laboratories and institutions conducting industrial biotechnology research. Subject to appropriation, the funding allocation for the Fund shall be no less than $1,000,000 per year.

(b) Moneys in the Fund shall be used for providing grants to laboratories and research institutions for the purpose of maintenance and repair of capital assets. Such funds may be used for either or both (i) maintenance and repairs of existing capital assets or (ii) to expand the capacity of equipment and buildings by at least 10%. For the purposes of this Section, "capital assets" means equipment or buildings that have a value greater than $250,000.

(c) To be eligible for grants provided from the Fund, an entity must be a State-sponsored, university-affiliated laboratory or research institution conducting collaboratives or for-hire research in the development of biorenewable chemicals, bio-based polymers, materials, novel feeds, or additional value added biorenewables. The Department of Commerce and Economic Opportunity shall determine the disbursement of moneys for purposes of this Section. Any eligible entity, as a condition of receiving a grant under this Section, shall match up to at least 50% of the moneys to be granted to the entity.

(d) Subject to appropriation, the Department of Commerce and Economic Opportunity shall submit an annual report to the General Assembly and the Governor on the use of moneys in the Fund. The report shall include, but not be limited to: (i) the name of the institution or laboratory receiving funds; (ii) the capital assets that were maintained or repaired at each institution or laboratory; (iii) the expected usable life extension of each maintained or repaired asset; and (iv) the capacity increase of each maintained or repaired asset.

(e) The Department of Commerce and Economic Opportunity shall adopt all rules necessary for the implementation of this Section.".