Full Text of SB2491 97th General Assembly
SB2491eng 97TH GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning State government.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Department of Transportation Law of the
| 5 | | Civil Administrative Code of Illinois is amended by adding | 6 | | Section 2705-605 as follows: | 7 | | (20 ILCS 2705/2705-605 new) | 8 | | Sec. 2705-605. Disadvantaged business revolving loan | 9 | | program. | 10 | | (a) For the purposes of this Section: | 11 | | "Contractor" means one who participates, through a | 12 | | contract or subcontract at any tier, in a United States | 13 | | Department of Transportation-assisted highway, transit, or | 14 | | airport program. | 15 | | "Escrow account" means a fiduciary account established | 16 | | with (i) a banking corporation which is both organized | 17 | | under the Illinois Banking Act and authorized to accept and | 18 | | administer trusts in this State; (ii) a national banking | 19 | | association which has its principal place of business in | 20 | | this State and which is authorized to accept and administer | 21 | | trusts in this State; or (ii) an Illinois State agency. | 22 | | "Fund Control Agent" means a person who holds the | 23 | | authority to manage a loan under this Section. |
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| 1 | | (b) The Department has the power to enter into agreements | 2 | | to make low-interest loans to minority-owned businesses, | 3 | | female-owned businesses, and disadvantaged business | 4 | | enterprises certified by the Department for participation on | 5 | | Department-procured construction and construction-related | 6 | | contracts. For purposes of this Section, the terms | 7 | | "minority-owned business" and "female-owned business" have the | 8 | | meanings ascribed to them by Section 2 of the Business | 9 | | Enterprise for Minorities, Females, and Persons with | 10 | | Disabilities Act. For purposes of this Section, the term | 11 | | "disadvantaged business enterprise" has the meaning ascribed | 12 | | to it by 49 CFR Part 26. | 13 | | (c) Loan funds shall be disbursed to the escrow account, | 14 | | subject to appropriation, from the Working Capital Revolving | 15 | | Loan Fund established as a special fund in the State treasury. | 16 | | Loaned funds that are repaid to the Department shall be | 17 | | deposited into the Working Capital Revolving Loan Fund. Other | 18 | | appropriations, grants, awards, and donations to the | 19 | | Department for the purpose of the revolving loan program | 20 | | established by this Section shall be deposited into the Working | 21 | | Capital Revolving Loan Fund. | 22 | | (d) A funds control process will be established to serve as | 23 | | an intermediary between the Department and the contractor to | 24 | | verify payments and to ensure paperwork is properly filed. The | 25 | | Fund Control Agent and contractor shall enter into an agreement | 26 | | regarding the control and disbursement of all payments to be |
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| 1 | | made by the Fund Control Agent under the contract. The | 2 | | Department will authorize and direct the Fund Control Agent to | 3 | | review all disbursement requests and supporting documents | 4 | | received from the contractor. The Fund Control Agent will | 5 | | direct the escrow account to disburse escrow funds to the | 6 | | subcontractor, material supplier, and other appropriate | 7 | | entities by written request for the disbursement. | 8 | | (e) Loan assistance funds shall be allowed for current | 9 | | liabilities or working capital expenses associated with | 10 | | participation in the performance of contracts procured by the | 11 | | Department for transportation construction and | 12 | | construction-related purposes. Loan funds shall not be used for | 13 | | (1) refinancing or payment of existing long-term debt; (2) | 14 | | payment of non-current taxes; (3) payments, advances, or loans | 15 | | to stockholders, officers, directors, partners, or member | 16 | | owners of limited liability companies; or (4) the purchase or | 17 | | lease of non-construction motor vehicles or equipment. The loan | 18 | | agreement shall provide for the terms and conditions of | 19 | | repayment which shall not extend repayment longer than one year | 20 | | after completion and acceptance of the work authorized for loan | 21 | | assistance under the program. The funds may be loaned with or | 22 | | without interest. | 23 | | (f) The Department shall establish through administrative | 24 | | rules the requirements for eligibility and criteria for loan | 25 | | applications, approved use of funds, amount of loans, interest | 26 | | rates, collateral, and terms. The Department is authorized to |
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| 1 | | adopt rules to implement this Section. | 2 | | (g) Nothing in this Section is intended nor shall be | 3 | | construed to vest applicants denied funds by the Department in | 4 | | accordance with this Section a right to challenge, protest, or | 5 | | contest the awarding of funds by the Department to successful | 6 | | applicants or any loan or agreement executed in connection | 7 | | therewith. | 8 | | (h) Investment income which is attributable to the | 9 | | investment of moneys in the Working Capital Revolving Loan Fund | 10 | | shall be retained in the Working Capital Revolving Loan Fund. | 11 | | (i) By January 1, 2014 and by January 1 of each succeeding | 12 | | year, the Department shall report to the Governor and the | 13 | | General Assembly on the utilization and status of the revolving | 14 | | loan program. The report shall, at a minimum, include the | 15 | | amount transferred from the Road Fund to the Working Capital | 16 | | Revolving Loan Fund, the number and size of approved loans, the | 17 | | amounts disbursed to and from the escrow account, the amounts, | 18 | | if any, repaid to the Working Capital Revolving Loan Fund, the | 19 | | interest and fees paid by loan recipients, and the interest | 20 | | earned on balances in the Working Capital Revolving Loan Fund. | 21 | | (j) The Department's authority to execute additional loans | 22 | | or request transfers to the Working Capital Revolving Loan Fund | 23 | | expires on June 1, 2022. The Comptroller shall order | 24 | | transferred and the Treasurer shall transfer any available | 25 | | balance remaining in the Working Capital Revolving Loan Fund to | 26 | | the Road Fund on January 1, 2023, or as soon thereafter as may |
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| 1 | | be practical. Any loan repayments, interest, or fees that are | 2 | | by the terms of a loan agreement payable to the Working Capital | 3 | | Revolving Loan Fund after June 20, 2022 shall instead be paid | 4 | | into the Road Fund as the successor fund to the Working Capital | 5 | | Loan repayment Fund.
| 6 | | Section 10. The State Finance Act is amended by adding | 7 | | Sections 5.811 and 8r as follows: | 8 | | (30 ILCS 105/5.811 new) | 9 | | Sec. 5.811. The Working Capital Revolving Loan Fund. | 10 | | (30 ILCS 105/8r new) | 11 | | Sec. 8r. Transfer to the Working Capital Revolving Loan | 12 | | Fund. | 13 | | (a) Except as provided in subsection (b), upon the written | 14 | | request of the Secretary of Transportation, the State | 15 | | Comptroller shall order and the State Treasurer shall transfer | 16 | | amounts not to exceed $3,000,000 in aggregate during a fiscal | 17 | | year, for a period of 10 years, from the Road Fund to the | 18 | | Working Capital Revolving Loan Fund at such times as requested | 19 | | by the Secretary of Transportation or as soon thereafter as may | 20 | | be practical. | 21 | | (b) No transfer may be requested or ordered if the | 22 | | available balance in the Working Capital Revolving Loan Fund is | 23 | | equal to or greater than $6,000,000. |
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| 1 | | Section 99. Effective date. This Act takes effect upon | 2 | | becoming law. |
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