SB2491sam003 97TH GENERAL ASSEMBLY

Sen. Mattie Hunter

Filed: 3/26/2012

09700SB2491sam003 LRB097 12732 HEP 67951 a

AMENDMENT TO SENATE BILL 2491

AMENDMENT NO. ______. Amend Senate Bill 2491, AS AMENDED, by replacing everything after the enacting clause with the following:

"Section 5. The Department of Transportation Law of the Civil Administrative Code of Illinois is amended by adding Section 2705-605 as follows:

(20 ILCS 2705/2705-605 new)

Sec. 2705-605. Disadvantaged business revolving loan program.

(a) For the purposes of this Section:

"Contractor" means one who participates, through a contract or subcontract at any tier, in a United States Department of Transportation-assisted highway, transit, or airport program.

"Escrow account" means a fiduciary account established with (i) a banking corporation which is both organized under the Illinois Banking Act and authorized to accept and administer trusts in this State; (ii) a national banking association which has its principal place of business in this State and which is authorized to accept and administer trusts in this State; or (ii) an Illinois State agency.

"Fund Control Agent" means a person who holds the authority to manage a loan under this Section.

(b) The Department has the power to enter into agreements to make low-interest loans to minority-owned businesses, female-owned businesses, and disadvantaged business enterprises certified by the Department for participation on Department-procured construction and construction-related contracts. For purposes of this Section, the terms "minority-owned business" and "female-owned business" have the meanings ascribed to them by Section 2 of the Business Enterprise for Minorities, Females, and Persons with Disabilities Act. For purposes of this Section, the term "disadvantaged business enterprise" has the meaning ascribed to it by 49 CFR Part 26.

(c) Loan funds shall be disbursed to the escrow account, subject to appropriation, from the Working Capital Revolving Loan Fund established as a special fund in the State treasury. Loaned funds that are repaid to the Department shall be deposited into the Working Capital Revolving Loan Fund. Other appropriations, grants, awards, and donations to the Department for the purpose of the revolving loan program established by this Section shall be deposited into the Working Capital Revolving Loan Fund.

(d) A funds control process will be established to serve as an intermediary between the Department and the contractor to verify payments and to ensure paperwork is properly filed. The Fund Control Agent and contractor shall enter into an agreement regarding the control and disbursement of all payments to be made by the Fund Control Agent under the contract. The Department will authorize and direct the Fund Control Agent to review all disbursement requests and supporting documents received from the contractor. The Fund Control Agent will direct the escrow account to disburse escrow funds to the subcontractor, material supplier, and other appropriate entities by written request for the disbursement.

(e) Loan assistance funds shall be allowed for current liabilities or working capital expenses associated with participation in the performance of contracts procured by the Department for transportation construction and construction-related purposes. Loan funds shall not be used for (1) refinancing or payment of existing long-term debt; (2) payment of non-current taxes; (3) payments, advances, or loans to stockholders, officers, directors, partners, or member owners of limited liability companies; or (4) the purchase or lease of non-construction motor vehicles or equipment. The loan agreement shall provide for the terms and conditions of repayment which shall not extend repayment longer than one year after completion and acceptance of the work authorized for loan assistance under the program. The funds may be loaned with or without interest.

(f) The Department shall establish through administrative rules the requirements for eligibility and criteria for loan applications, approved use of funds, amount of loans, interest rates, collateral, and terms. The Department is authorized to adopt rules to implement this Section.

(g) Nothing in this Section is intended nor shall be construed to vest applicants denied funds by the Department in accordance with this Section a right to challenge, protest, or contest the awarding of funds by the Department to successful applicants or any loan or agreement executed in connection therewith.

(h) Investment income which is attributable to the investment of moneys in the Working Capital Revolving Loan Fund shall be retained in the Working Capital Revolving Loan Fund.

(i) By January 1, 2014 and by January 1 of each succeeding year, the Department shall report to the Governor and the General Assembly on the utilization and status of the revolving loan program. The report shall, at a minimum, include the amount transferred from the Road Fund to the Working Capital Revolving Loan Fund, the number and size of approved loans, the amounts disbursed to and from the escrow account, the amounts, if any, repaid to the Working Capital Revolving Loan Fund, the interest and fees paid by loan recipients, and the interest earned on balances in the Working Capital Revolving Loan Fund.

(j) The Department's authority to execute additional loans or request transfers to the Working Capital Revolving Loan Fund expires on June 1, 2022. The Comptroller shall order transferred and the Treasurer shall transfer any available balance remaining in the Working Capital Revolving Loan Fund to the Road Fund on January 1, 2023, or as soon thereafter as may be practical. Any loan repayments, interest, or fees that are by the terms of a loan agreement payable to the Working Capital Revolving Loan Fund after June 20, 2022 shall instead be paid into the Road Fund as the successor fund to the Working Capital Loan repayment Fund.

Section 10. The State Finance Act is amended by adding Sections 5.811 and 8r as follows:

(30 ILCS 105/5.811 new)

Sec. 5.811. The Working Capital Revolving Loan Fund.

(30 ILCS 105/8r new)

Sec. 8r. Transfer to the Working Capital Revolving Loan Fund.

(a) Except as provided in subsection (b), upon the written request of the Secretary of Transportation, the State Comptroller shall order and the State Treasurer shall transfer amounts not to exceed $3,000,000 in aggregate during a fiscal year, for a period of 10 years, from the Road Fund to the Working Capital Revolving Loan Fund at such times as requested by the Secretary of Transportation or as soon thereafter as may be practical.

(b) No transfer may be requested or ordered if the available balance in the Working Capital Revolving Loan Fund is equal to or greater than $6,000,000. ".

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