HB2478 94TH GENERAL ASSEMBLY

LRB094 07747 RSP 37925 b

94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
HB2478

Introduced 02/17/05, by Rep. Constance A. Howard - Monique D. Davis - Lovana Jones

SYNOPSIS AS INTRODUCED:

30 ILCS 780/5-5
30 ILCS 780/5-10 new
30 ILCS 780/5-20
30 ILCS 780/5-25 new
30 ILCS 780/5-30
30 ILCS 780/5-35
30 ILCS 780/5-40
30 ILCS 780/5-105

Amends the Digital Divide Law. Creates the Non-profit Digital Divide Foundation to succeed the Department of Commerce and Economic Opportunity in managing the Digital Divide Elimination Fund. Sets forth various provisions for the formation and operation of the Foundation. Provides that the Foundation is authorized to accept and solicit funds from a variety of sources. Makes other changes. Effective immediately.

A BILL FOR

AN ACT concerning finance.

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

Section 5. The Eliminate the Digital Divide Law is amended by changing Sections 5-5, 5-20, 5-30, 5-35, 5-40, and 5-105 and by adding Sections 5-10 and 5-25 as follows:

(30 ILCS 780/5-5)

Sec. 5-5. Definitions; descriptions. As used in this Article:

"Community-based organization" means a private not-for-profit organization that is located in an Illinois community and that provides services to citizens within that community and the surrounding area.

"Community technology centers" provide computer access and educational services using information technology. Community technology centers are diverse in the populations they serve and programs they offer, but similar in that they provide technology access to individuals, communities, and populations that typically would not otherwise have places to use computer and telecommunications technologies.

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

"Foundation" means the Non-profit Digital Divide Foundation created in this Law.

"National school lunch program" means a program administered by the U.S. Department of Agriculture and state agencies that provides free or reduced price lunches to economically disadvantaged children. A child whose family income is between 130% and 185% of applicable family size income levels contained in the nonfarm poverty guidelines prescribed by the Office of Management and Budget is eligible for a reduced price lunch. A child whose family income is 130% or less of applicable family size income levels contained in the nonfarm income poverty guidelines prescribed by the Office of Management and Budget is eligible for a free lunch.

"Telecommunications services" provided by telecommunications carriers include all commercially available telecommunications services in addition to all reasonable charges that are incurred by taking such services, such as state and federal taxes.

"Other special services" provided by telecommunications carriers include Internet access and installation and maintenance of internal connections in addition to all reasonable charges that are incurred by taking such services, such as state and federal taxes.

(Source: P.A. 91-704, eff. 7-1-00; revised 12-6-03.)

(30 ILCS 780/5-10 new)

Sec. 5-10. Transfer of duties; transition of Department rules. All duties vested in the Department under this Law shall end on December 31, 2005 and be transferred to the Non-profit Digital Divide Foundation. Nothing in this Law shall allow the Foundation to alter or revoke a Community Technology Grant lawfully made by the Department. All rules adopted by the Department for the administration of the Eliminate the Digital Divide Law that are in effect on December 31, 2005 shall continue as rules of the Foundation until such time as the Foundation either expressly revokes or amends these rules. The Foundation's rules under this Law shall be adopted in accordance with the Illinois Administrative Procedure Act.

(30 ILCS 780/5-20)

Sec. 5-20. Digital Divide Elimination Fund. The Digital Divide Elimination Fund is created as a special fund in the State treasury. All moneys in the Fund shall be used, subject to appropriation by the General Assembly, by the Department or its successor in interest, the Non-profit Digital Divide Foundation, for grants made under Section 5-30 of this Act.

(Source: P.A. 92-22, eff. 6-30-01.)

(30 ILCS 780/5-25 new)

Sec. 5-25. Non-profit Digital Divide Foundation.

(a) The Non-profit Digital Divide Foundation is created to succeed to duties previously held by the Department of Commerce and Economic Opportunity under the Eliminate the Digital Divide Law. On and after January 1, 2006 the Foundation shall administer the Digital Divide Elimination Fund for grants made under Section 5-30 of this Law.

(b) The Foundation must operate as a not-for-profit organization exempt from federal income taxes under Section 501(c)(3) of the Internal Revenue Code of 1986, and be governed by articles of incorporation and bylaws that shall, at a minimum, provide that:

(1) There shall be 6 voting members of the Foundation, one of whom shall be appointed by the Governor, one of whom shall be appointed by the President of the Illinois Senate, one of whom shall be appointed by the Minority Leader of the Illinois Senate, one of whom shall be appointed by the Speaker of the Illinois House of Representatives, one of whom shall be appointed by the Minority Leader of the Illinois House of Representatives, and one of whom shall be appointed by the Director of the Department of Commerce and Economic Opportunity. The Governor shall designate one of the 6 voting members to serve as chairman of the Foundation serving in that position at the pleasure of the Governor.

(2) All voting members shall be entitled to reimbursement for reasonable expenses incurred on behalf of the Foundation in the performance of their duties as members. All such reimbursements shall be paid out of the Foundation assets.

(3) Foundation members shall be appointed within 30 days after the creation of the Foundation and shall serve for a term of 5 years commencing upon the date of their respective appointments, and until their respective successors are appointed and have qualified.

(4) A vacancy in the Foundation membership shall be filled by the person responsible for appointing the member whose death or resignation creates the vacancy, and the member appointed to fill a vacancy shall serve the remainder of the term of the member whose resignation or death created the vacancy.

(5) The Foundation shall have an indefinite term, and shall terminate upon a unanimous vote of the Foundation members to wind up the Foundation's affairs. Foundation members must vote to terminate the Foundation when no Foundation assets remain and reasonable efforts to obtain new moneys have been reasonably exhausted.

(6) The Foundation shall be authorized to employ an executive director and other employees, to enter into leases, contracts and other obligations on behalf of the Foundation, and to incur expenses that the Foundation deems necessary or appropriate for the fulfillment of the purposes for which the Foundation is established.

(c) The Non-Profit Digital Divide Foundation is authorized to accept and solicit funds from State, federal, or local governments; from the Illinois Commerce Commission, the Illinois Board of Education, or other State agencies and departments; from private individuals, corporations, or other entities; or from any other lawful source for the expansion of the assets of the Digital Divide Elimination Fund, provided that the Fund must continue to be used for the purposes set forth in Section 5-30.

(30 ILCS 780/5-30)

Sec. 5-30. Community Technology Grant Program.

(a) Subject to appropriation, the Department or its successor in interest, the Non-profit Digital Divide Foundation, shall administer the Community Technology Center Grant Program under which the Department or its successor in interest, the Non-profit Digital Divide Foundation, shall make grants in accordance with this Article for planning, establishment, administration, and expansion of Community Technology Centers and for assisting public hospitals, libraries, and park districts in eliminating the digital divide. The purposes of the grants shall include, but not be limited to, volunteer recruitment and management, training and instruction, infrastructure, and related goods and services for Community Technology Centers and public hospitals, libraries, and park districts. The total amount of grants under this Section in fiscal year 2001 shall not exceed $2,000,000, except that this limit on grants shall not apply to grants funded by appropriations from the Digital Divide Elimination Fund. No Community Technology Center may receive a grant of more than $50,000 under this Section in a particular fiscal year.

(b) Public hospitals, libraries, park districts, and State educational agencies, local educational agencies, institutions of higher education, and other public and private nonprofit or for-profit agencies and organizations are eligible to receive grants under this Program, provided that a local educational agency or public or private educational agency or organization must, in order to be eligible to receive grants under this Program, provide computer access and educational services using information technology to the public at one or more of its educational buildings or facilities at least 12 hours each week. A group of eligible entities is also eligible to receive a grant if the group follows the procedures for group applications in 34 CFR 75.127-129 of the Education Department General Administrative Regulations.

To be eligible to apply for a grant, a Community Technology Center, public hospital, library, or park district must serve a community in which not less than 40% of the students are eligible for a free or reduced price lunch under the national school lunch program or in which not less than 30% of the students are eligible for a free lunch under the national school lunch program; however, if funding is insufficient to approve all grant applications for a particular fiscal year, the Department or its successor in interest, the Non-profit Digital Divide Foundation, may impose a higher minimum percentage threshold for that fiscal year. Determinations of communities and determinations of the percentage of students in a community who are eligible for a free or reduced price lunch under the national school lunch program shall be in accordance with rules adopted by the Department or its successor in interest, the Non-profit Digital Divide Foundation.

Any entities that have received a Community Technology Center grant under the federal Community Technology Centers Program are also eligible to apply for grants under this Program.

The Department or its successor in interest, the Non-profit Digital Divide Foundation, shall provide assistance to Community Technology Centers in making those determinations for purposes of applying for grants.

(c) Grant applications shall be submitted to the Department or its successor in interest, the Non-profit Digital Divide Foundation, not later than March 15 for the next fiscal year.

(d) The Department or its successor in interest, the Non-profit Digital Divide Foundation, shall adopt rules setting forth the required form and contents of grant applications.

(e) There is created the Digital Divide Elimination Advisory Committee. The advisory committee shall consist of 5 members appointed one each by the Governor, the President of the Senate, the Senate Minority Leader, the Speaker of the House, and the House Minority Leader. The members of the advisory committee shall receive no compensation for their services as members of the advisory committee but may be reimbursed for their actual expenses incurred in serving on the advisory committee. The Digital Divide Elimination Advisory Committee shall advise the Department or its successor in interest, the Non-profit Digital Divide Foundation, in establishing criteria and priorities for identifying recipients of grants under this Act. The advisory committee shall obtain advice from the technology industry regarding current technological standards. The advisory committee shall seek any available federal funding.

(Source: P.A. 91-704, eff. 7-1-00; 92-22, eff. 6-30-01.)

(30 ILCS 780/5-35)

Sec. 5-35. Resale; Community Technology Centers.

(a) Products and services purchased by Community Technology Centers with grant funds may not be sold, resold, or transferred in consideration of money or any other thing of value except with the prior approval of the Department or its successor in interest, the Non-profit Digital Divide Foundation.

(b) This prohibition on resale shall not bar Community Technology Centers from charging fees for education or workforce preparation courses. There is no prohibition on the resale of products or services that are not purchased with grant funds.

(Source: P.A. 91-704, eff. 7-1-00.)

(30 ILCS 780/5-40)

Sec. 5-40. Auditing; records; Community Technology Centers.

(a) Community Technology Centers shall be required to maintain for expenditures made under this Article any procurement records required by the Department or its successor in interest, the Non-profit Digital Divide Foundation. Community Technology Centers shall produce those records at the request of the Department or its successor in interest, the Non-profit Digital Divide Foundation, any auditor appointed by the State, or any State officer or agency entitled to inspect the records.

(b) Community Technology Centers shall be subject to random compliance audits to evaluate what products and services they are purchasing and how the products and services are being used.

(Source: P.A. 91-704, eff. 7-1-00.)

(30 ILCS 780/5-105)

Sec. 5-105. Rules. The Department or its successor in interest, the Non-profit Digital Divide Foundation, may adopt any rules that are necessary and appropriate to carry out this Article.

(Source: P.A. 91-704, eff. 7-1-00.)

Section 99. Effective date. This Act takes effect upon becoming law.