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91_SB0040eng SB40 Engrossed LRB9101877PTmb 1 AN ACT concerning economic development. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 ARTICLE 5. 5 Section 5-1. Short title. This Article may be cited as 6 the Economic Development for a Growing Economy Tax Credit 7 Act. 8 Section 5-3. Purpose. The General Assembly finds that 9 the Illinois economy, although currently strong, is still 10 highly vulnerable to other states and nations that have major 11 financial incentive programs for medium-sized and large firm 12 relocations. Because of the incentive programs of these 13 competitor locations, Illinois must move aggressively with 14 new business development investment tools so that Illinois is 15 more competitive in site location decision-making. The State 16 must not only continue to work with firms to help them locate 17 their new plants and facilities in Illinois but also must 18 provide competitive investment location tax credits in 19 support of the location and expansion of medium-sized and 20 large operations of commerce and industry. In an increasingly 21 global economy, Illinois' long-term development would benefit 22 from rational, strategic use of State resources in support of 23 business development and growth. 24 Section 5-5. Definitions. As used in this Act: 25 "Agreement" means the Agreement between a Taxpayer and 26 the Department under the provisions of Section 5-50 of this 27 Act. 28 "Applicant" means a Taxpayer that is operating a business 29 located or that the Taxpayer plans to locate within the State SB40 Engrossed -2- LRB9101877PTmb 1 of Illinois and that is engaged in interstate or intrastate 2 commerce for the purpose of manufacturing, processing, 3 assembling, warehousing, or distributing products, conducting 4 research and development, providing tourism services, or 5 providing services in interstate commerce, office industries, 6 or agricultural processing, but excluding retail, retail 7 food, health, or professional services. "Applicant" does not 8 include a Taxpayer who closes or substantially reduces an 9 operation at one location in the State and relocates 10 substantially the same operation to another location in the 11 State. This does not prohibit a Taxpayer from expanding its 12 operations at another location in the State, provided that 13 existing operations of a similar nature located within the 14 State are not closed or substantially reduced. This also does 15 not prohibit a Taxpayer from moving its operations from one 16 location in the State to another location in the State for 17 the purpose of expanding the operation provided that the 18 Department determines that expansion cannot reasonably be 19 accommodated within the municipality in which the business is 20 located, or in the case of a business located in an 21 incorporated area of the county, within the county in which 22 the business is located, after conferring with the chief 23 elected official of the municipality or county and taking 24 into consideration any evidence offered by the municipality 25 or county regarding the ability to accommodate expansion 26 within the municipality or county. 27 "Committee" means the Illinois Business Investment 28 Committee created under Section 5-25 of this Act within the 29 Illinois Economic Development Board. 30 "Credit" means the amount agreed to between the 31 Department and Applicant under this Act, but not to exceed 32 the Incremental Income Tax attributable to the Applicant's 33 project. 34 "Department" means the Department of Commerce and SB40 Engrossed -3- LRB9101877PTmb 1 Community Affairs. 2 "Director" means the Director of Commerce and Community 3 Affairs. 4 "Full-time Employee" means an individual who is employed 5 for consideration for at least 35 hours each week or who 6 renders any other standard of service generally accepted by 7 industry custom or practice as full-time employment. 8 "Incremental Income Tax" means the total amount withheld 9 during the taxable year from the compensation of New 10 Employees under Article 7 of the Illinois Income Tax Act 11 arising from employment at a project that is the subject of 12 an Agreement. 13 "New Employee" means: 14 (a) A Full-time Employee first employed by a 15 Taxpayer in the project that is the subject of an 16 Agreement and who is hired after the Taxpayer enters into 17 the tax credit Agreement. 18 (b) The term "New Employee" does not include: 19 (1) an employee of the Taxpayer who performs a 20 job that was previously performed by another 21 employee, if that job existed for at least 6 months 22 before hiring the employee; 23 (2) an employee of the Taxpayer who was 24 previously employed in Illinois by a Related Member 25 of the Taxpayer and whose employment was shifted to 26 the Taxpayer after the Taxpayer entered into the tax 27 credit Agreement; or 28 (3) a child, grandchild, parent, or spouse, 29 other than a spouse who is legally separated from 30 the individual, of any individual who has a direct 31 or an indirect ownership interest of at least 5% in 32 the profits, capital, or value of the Taxpayer. 33 (c) Notwithstanding paragraph (1) of subsection 34 (b), an employee may be considered a New Employee under SB40 Engrossed -4- LRB9101877PTmb 1 the Agreement if the employee performs a job that was 2 previously performed by an employee who was: 3 (1) treated under the Agreement as a New 4 Employee; and 5 (2) promoted by the Taxpayer to another job. 6 (d) Notwithstanding subsection (a), the Department 7 may award Credit to an Applicant with respect to an 8 employee hired prior to the date of the Agreement if: 9 (1) the Applicant is in receipt of a letter 10 from the Department stating an intent to enter into 11 a credit Agreement; 12 (2) the letter described in paragraph (1) is 13 issued by the Department not later than 15 days 14 after the effective date of this Act; and 15 (3) the employee was hired after the date the 16 letter described in paragraph (1) was issued. 17 "Noncompliance Date" means, in the case of a Taxpayer 18 that is not complying with the requirements of the Agreement 19 or the provisions of this Act, the day following the last 20 date upon which the Taxpayer was in compliance with the 21 requirements of the Agreement and the provisions of this Act, 22 as determined by the Director, pursuant to Section 5-65. 23 "Pass Through Entity" means an entity that is exempt from 24 the tax under subsection (b) or (c) of Section 205 of the 25 Illinois Income Tax Act. 26 "Related Member" means a person that, with respect to the 27 Taxpayer during any portion of the taxable year, is any one 28 of the following: 29 (1) An individual stockholder, if the stockholder 30 and the members of the stockholder's family (as defined 31 in Section 318 of the Internal Revenue Code) own 32 directly, indirectly, beneficially, or constructively, in 33 the aggregate, at least 50% of the value of the 34 Taxpayer's outstanding stock. SB40 Engrossed -5- LRB9101877PTmb 1 (2) A partnership, estate, or trust and any partner 2 or beneficiary, if the partnership, estate, or trust, and 3 its partners or beneficiaries own directly, indirectly, 4 beneficially, or constructively, in the aggregate, at 5 least 50% of the profits, capitol, stock, or value of the 6 Taxpayer. 7 (3) A corporation, and any party related to the 8 corporation in a manner that would require an attribution 9 of stock from the corporation to the party or from the 10 party to the corporation under the attribution rules of 11 Section 318 of the Internal Revenue Code, if the Taxpayer 12 owns directly, indirectly, beneficially, or 13 constructively at least 50% of the value of the 14 corporation's outstanding stock. 15 (4) A corporation and any party related to that 16 corporation in a manner that would require an attribution 17 of stock from the corporation to the party or from the 18 party to the corporation under the attribution rules of 19 Section 318 of the Internal Revenue Code, if the 20 corporation and all such related parties own in the 21 aggregate at least 50% of the profits, capital, stock, or 22 value of the Taxpayer. 23 (5) A person to or from whom there is attribution 24 of stock ownership in accordance with Section 1563(e) of 25 the Internal Revenue Code, except, for purposes of 26 determining whether a person is a Related Member under 27 this paragraph, 20% shall be substituted for 5% wherever 28 5% appears in Section 1563(e) of the Internal Revenue 29 Code. 30 "Taxpayer" means an individual, corporation, partnership, 31 or other entity that has any Illinois Income Tax liability. 32 Section 5-10. Powers of the Department. The 33 Department, in addition to those powers granted under the SB40 Engrossed -6- LRB9101877PTmb 1 Civil Administrative Code of Illinois, is granted and shall 2 have all the powers necessary or convenient to carry out and 3 effectuate the purposes and provisions of this Act, 4 including, but not limited to, power and authority to: 5 (a) Promulgate procedures, rules, or regulations deemed 6 necessary and appropriate for the administration of the 7 programs; establish forms for applications, notifications, 8 contracts, or any other agreements; and accept applications 9 at any time during the year. 10 (b) Provide and assist Taxpayers pursuant to the 11 provisions of this Act, and cooperate with Taxpayers that are 12 parties to Agreements to promote, foster, and support 13 economic development, capital investment, and job creation or 14 retention within the State. 15 (c) Enter into agreements and memoranda of understanding 16 for participation of and engage in cooperation with agencies 17 of the federal government, local units of government, 18 universities, research foundations or institutions, regional 19 economic development corporations, or other organizations for 20 the purposes of this Act. 21 (d) Gather information and conduct inquiries, in the 22 manner and by the methods as it deems desirable, including 23 without limitation, gathering information with respect to 24 Applicants for the purpose of making any designations or 25 certifications necessary or desirable or to gather 26 information to assist the Committee with any recommendation 27 or guidance in the furtherance of the purposes of this Act. 28 (e) Establish, negotiate and effectuate any term, 29 agreement or other document with any person, necessary or 30 appropriate to accomplish the purposes of this Act; and to 31 consent, subject to the provisions of any Agreement with 32 another party, to the modification or restructuring of any 33 Agreement to which the Department is a party. 34 (f) Fix, determine, charge, and collect any premiums, SB40 Engrossed -7- LRB9101877PTmb 1 fees, charges, costs, and expenses from Applicants, 2 including, without limitation, any application fees, 3 commitment fees, program fees, financing charges, or 4 publication fees as deemed appropriate to pay expenses 5 necessary or incident to the administration, staffing, or 6 operation in connection with the Department's or Committee's 7 activities under this Act, or for preparation, 8 implementation, and enforcement of the terms of the 9 Agreement, or for consultation, advisory and legal fees, and 10 other costs; however, all fees and expenses incident thereto 11 shall be the responsibility of the Applicant. 12 (g) Provide for sufficient personnel to permit 13 administration, staffing, operation, and related support 14 required to adequately discharge its duties and 15 responsibilities described in this Act from funds made 16 available through charges to Applicants or from funds as may 17 be appropriated by the General Assembly for the 18 administration of this Act. 19 (h) Require Applicants, upon written request, to issue 20 any necessary authorization to the appropriate federal, 21 state, or local authority for the release of information 22 concerning a project being considered under the provisions of 23 this Act, with the information requested to include, but not 24 be limited to, financial reports, returns, or records 25 relating to the Taxpayers' or its project. 26 (i) Require that a Taxpayer shall at all times keep 27 proper books of record and account in accordance with 28 generally accepted accounting principles consistently 29 applied, with the books, records, or papers related to the 30 Agreement in the custody or control of the Taxpayer open for 31 reasonable Department inspection and audits, and including, 32 without limitation, the making of copies of the books, 33 records, or papers, and the inspection or appraisal of any of 34 the Taxpayer or project assets. SB40 Engrossed -8- LRB9101877PTmb 1 (j) Take whatever actions are necessary or appropriate 2 to protect the State's interest in the event of bankruptcy, 3 default, foreclosure, or noncompliance with the terms and 4 conditions of financial assistance or participation required 5 under this Act, including the power to sell, dispose, lease, 6 or rent, upon terms and conditions determined by the Director 7 to be appropriate, real or personal property that the 8 Department may receive as a result of these actions. 9 Section 5-15. Tax Credit Awards. Subject to the 10 conditions set forth in this Act, a Taxpayer is entitled to a 11 Credit against taxes imposed pursuant to subsections (a) and 12 (b) of Section 201 of the Illinois Income Tax Act that may be 13 imposed on the Taxpayer for a taxable year beginning on or 14 after January 1, 1999, if the Taxpayer is awarded a Credit by 15 the Department under this Act for that taxable year. 16 (a) The Department shall make Credit awards under this 17 Act to foster job creation and retention in Illinois. 18 (b) A person that proposes a project to create new jobs 19 in Illinois must enter into an Agreement with the Department 20 for the Credit under this Act. 21 (c) The Credit shall be claimed for the taxable years 22 specified in the Agreement. 23 (d) The Credit shall not exceed the Incremental Income 24 Tax attributable to the project that is the subject of the 25 Agreement. 26 Section 5-20. Application for a project to create and 27 retain new jobs. 28 (a) Any Taxpayer proposing a project located or planned 29 to be located in Illinois may request consideration for 30 designation of its project, by formal written letter of 31 request or by formal application to the Department, in which 32 the Applicant states its intent to make at least a specified SB40 Engrossed -9- LRB9101877PTmb 1 level of investment and intends to hire or retain a specified 2 number of full-time employees at a designated location in 3 Illinois. As circumstances require, the Department may 4 require a formal application from an Applicant and a formal 5 letter of request for assistance. 6 (b) In order to qualify for Credits under this Act, an 7 Applicant's project must: 8 (1) involve an investment of at least $5,000,000 in 9 capital improvements to be placed in service and to 10 employ at least 25 New Employees within the State as a 11 direct result of the project; and 12 (2) involve an investment of at least an amount (to 13 be expressly specified by the Department and the 14 Committee) in capital improvements to be placed in 15 service and will employ at least an amount (to be 16 expressly specified by the Department and the Committee) 17 of New Employees within the State, provided that the 18 Department and the Committee have determined that the 19 project will provide a substantial economic benefit to 20 the State. 21 (c) After receipt of an application, the Department may 22 enter into an Agreement with the Applicant if the application 23 is accepted in accordance with Section 5-25. 24 Section 5-25. Review of Application. 25 (a) In addition to those duties granted under the 26 Illinois Economic Development Board Act, the Illinois 27 Economic Development Board shall form a Business Investment 28 Committee for the purpose of making recommendations for 29 applications. At the request of the Board, the Director of 30 Commerce and Community Affairs or his or her designee, the 31 Director of the Bureau of the Budget or his or her designee, 32 the Director of Revenue or his or her designee, the Director 33 of Employment Security or his or her designee, and an elected SB40 Engrossed -10- LRB9101877PTmb 1 official of the affected locality, such as the chair of the 2 county board or the mayor, may serve as members of the 3 Committee to assist with its analysis and deliberations. 4 (b) At the Department's request, the Committee shall 5 convene, make inquiries, and conduct studies in the manner 6 and by the methods as it deems desirable, review information 7 with respect to Applicants, and make recommendations for 8 projects to benefit the State. In making its recommendation 9 that an Applicant's application for Credit should or should 10 not be accepted, which shall occur within a reasonable time 11 frame as determined by the nature of the application, the 12 Committee shall determine that all the following conditions 13 exist: 14 (1) The Applicant's project intends, as required by 15 subsection (b) of Section 5-20 to make the required 16 investment in the State and intends to hire the required 17 number of New Employees in Illinois as a result of that 18 project. 19 (2) The Applicant's project is economically sound 20 and will benefit the people of the State of Illinois by 21 increasing opportunities for employment and strengthen 22 the economy of Illinois. 23 (3) That, if not for the Credit, the project would 24 not occur in Illinois, which may be demonstrated by any 25 means including, but not limited to, evidence the 26 Applicant has multi-state location options and could 27 reasonably and efficiently locate outside of the State, 28 or demonstration that at least one other state is being 29 considered for the project, or evidence the receipt of 30 the Credit is a major factor in the Applicant's decision 31 and that without the Credit, the Applicant likely would 32 not create new jobs in Illinois, or demonstration that 33 receiving the Credit is essential to the Applicant's 34 decision to create or retain new jobs in the State. SB40 Engrossed -11- LRB9101877PTmb 1 (4) A cost differential is identified, using best 2 available data, in the projected costs for the 3 Applicant's project compared to the costs in the 4 competing state, including the impact of the competing 5 state's incentive programs. The competing state's 6 incentive programs shall include state, local, private, 7 and federal funds available. 8 (5) The political subdivisions affected by the 9 project have committed local incentives with respect to 10 the project, considering local ability to assist. 11 (6) Awarding the Credit will result in an overall 12 positive fiscal impact to the State, as certified by the 13 Committee using the best available data. 14 (7) The Credit is not prohibited by Section 5-35 of 15 this Act. 16 Section 5-30. Limitation to amount of costs of specified 17 items. The total amount of the Credit allowed during all tax 18 years may not exceed the aggregate amount of costs incurred 19 by the Taxpayer during all prior tax years for the following 20 items, to the extent provided in the Agreement: 21 (1) capital investment, including, but not limited 22 to, equipment, buildings, or land; 23 (2) infrastructure development; 24 (3) debt service, except refinancing of current 25 debt; 26 (4) research and development; 27 (5) job training and education; 28 (6) lease costs; or 29 (7) relocation costs. 30 Section 5-35. Relocation of jobs in Illinois. A 31 Taxpayer is not entitled to claim the Credit provided by this 32 Act with respect to any jobs that the Taxpayer relocates from SB40 Engrossed -12- LRB9101877PTmb 1 one site in Illinois to another site in Illinois. 2 Determinations under this Section shall be made by the 3 Department. 4 Section 5-40. Determination of Amount of the Credit. In 5 determining the amount of the Credit that should be awarded, 6 the Committee shall provide guidance on, and the Department 7 shall take into consideration, the following factors: 8 (1) The number and location of jobs created and 9 retained in relation to the economy of the county where 10 the projected investment is to occur. 11 (2) The potential impact on the economy of 12 Illinois. 13 (3) The magnitude of the cost differential between 14 Illinois and the competing state. 15 (4) The incremental payroll attributable to the 16 project. 17 (5) The capital investment attributable to the 18 project. 19 (6) The amount of the average wage and benefits 20 paid by the Applicant in relation to the wage and 21 benefits of the area of the project. 22 (7) The costs to Illinois and the affected 23 political subdivisions with respect to the project. 24 (8) The financial assistance that is otherwise 25 provided by Illinois and the affected political 26 subdivisions. 27 Section 5-45. Amount and duration of the Credit. The 28 Department shall determine the amount and duration of the 29 Credit awarded under this Act. The duration of the Credit may 30 not exceed 10 taxable years. The Credit may be stated as a 31 percentage of the Incremental Income Tax attributable to the 32 Applicant's project and may include a fixed dollar SB40 Engrossed -13- LRB9101877PTmb 1 limitation. 2 Section 5-50. Contents of Agreements with Applicants. 3 The Department shall enter into an Agreement with an 4 Applicant that is awarded a Credit under this Act. The 5 Agreement must include all of the following: 6 (1) A detailed description of the project that is 7 the subject of the Agreement, including the location and 8 amount of the investment and jobs created or retained. 9 (2) The duration of the Credit and the first 10 taxable year for which the Credit may be claimed. 11 (3) The Credit amount that will be allowed for each 12 taxable year. 13 (4) A requirement that the Taxpayer shall maintain 14 operations at the project location that shall be stated 15 as a minimum number of years not to exceed 10. 16 (5) A specific method for determining the number of 17 New Employees employed during a taxable year. 18 (6) A requirement that the Taxpayer shall annually 19 report to the Department the number of New Employees, the 20 Incremental Income Tax withheld in connection with the 21 New Employees, and any other information the Director 22 needs to perform the Director's duties under this Act. 23 (7) A requirement that the Director is authorized 24 to verify with the appropriate State agencies the amounts 25 reported under paragraph (6), and after doing so shall 26 issue a certificate to the Taxpayer stating that the 27 amounts have been verified. 28 (8) A requirement that the Taxpayer shall provide 29 written notification to the Director not more than 30 30 days after the Taxpayer makes or receives a proposal that 31 would transfer the Taxpayer's State tax liability 32 obligations to a successor Taxpayer. 33 (9) A detailed description of the number of New SB40 Engrossed -14- LRB9101877PTmb 1 Employees to be hired, and the occupation and payroll of 2 the full-time jobs to be created or retained as a result 3 of the project. 4 (10) The minimum investment the business enterprise 5 will make in capital improvements, the time period for 6 placing the property in service, and the designated 7 location in Illinois for the investment. 8 (11) A requirement that the Taxpayer shall provide 9 written notification to the Director and the Committee 10 not more than 30 days after the Taxpayer determines that 11 the minimum job creation or retention, employment 12 payroll, or investment no longer is being or will be 13 achieved or maintained as set forth in the terms and 14 conditions of the Agreement. 15 (12) A provision that, if the total number of New 16 Employees falls below a specified level, the allowance of 17 Credit shall be suspended until the number of New 18 Employees equals or exceeds the Agreement amount. 19 (13) A detailed description of the items for which 20 the costs incurred by the Taxpayer will be included in 21 the limitation on the Credit provided in Section 5-30. 22 (14) Any other performance conditions or contract 23 provisions as the Department determines are appropriate. 24 Section 5-55. Certificate of verification; submission to 25 the Department of Revenue. A Taxpayer claiming a Credit 26 under this Act shall submit to the Department of Revenue a 27 copy of the Director's certificate of verification under this 28 Act for the taxable year. However, failure to submit a copy 29 of the certificate with the Taxpayer's tax return shall not 30 invalidate a claim for a Credit. 31 For a Taxpayer to be eligible for a certificate of 32 verification, the Taxpayer shall provide proof as required by 33 the Department prior to the end of each calendar year, SB40 Engrossed -15- LRB9101877PTmb 1 including, but not limited to, attestation by the Taxpayer 2 that: 3 (1) The project has substantially achieved the 4 level of new full-time jobs specified in its Agreement. 5 (2) The project has substantially achieved the 6 level of annual payroll in Illinois specified in its 7 Agreement. 8 (3) The project has substantially achieved the 9 level of capital investment in Illinois specified in its 10 Agreement. 11 Section 5-60. Pass through entity. 12 (a) The shareholders or partners of a Taxpayer that is a 13 Pass Through Entity shall be entitled to the Credit allowed 14 under the Agreement. 15 (b) The Credit provided under subsection (a) is in 16 addition to any Credit to which a shareholder or partner is 17 otherwise entitled under a separate Agreement under this Act. 18 A Pass Through Entity and a shareholder or partner of the 19 Pass Through Entity may not claim more than one Credit under 20 the same Agreement. 21 Section 5-65. Noncompliance; notice; assessment. If the 22 Director determines that a Taxpayer who has received a Credit 23 under this Act is not complying with the requirements of the 24 Agreement or all of the provisions of this Act, the Director 25 shall provide notice to the Taxpayer of the alleged 26 noncompliance, and allow the Taxpayer a hearing under the 27 provisions of the Illinois Administrative Procedure Act. If, 28 after such notice and any hearing, the Director determines 29 that a noncompliance exists, the Director shall issue to the 30 Department of Revenue notice to that effect, stating the 31 Noncompliance Date. SB40 Engrossed -16- LRB9101877PTmb 1 Section 5-70. Annual report. On or before July 1 each 2 year, the Committee shall submit a report to the Department 3 on the tax credit program under this Act to the Governor and 4 the General Assembly. The report shall include information on 5 the number of Agreements that were entered into under this 6 Act during the preceding calendar year, a description of the 7 project that is the subject of each Agreement, an update on 8 the status of projects under Agreements entered into before 9 the preceding calendar year, and the sum of the Credits 10 awarded under this Act. A copy of the report shall be 11 delivered to the Governor and to each member of the General 12 Assembly. 13 Section 5-75. Evaluation of tax credit program. On a 14 biennial basis, the Department shall evaluate the tax credit 15 program. The evaluation shall include an assessment of the 16 effectiveness of the program in creating new jobs in Illinois 17 and of the revenue impact of the program, and may include a 18 review of the practices and experiences of other states with 19 similar programs. The Director shall submit a report on the 20 evaluation to the Governor and the General Assembly after 21 June 30 and before November 1 in each odd-numbered year. 22 Section 5-80. Adoption of rules. The Department may 23 adopt rules necessary to implement this Act. The rules may 24 provide for recipients of Credits under this Act to be 25 charged fees to cover administrative costs of the tax credit 26 program. Fees collected shall be deposited into the Economic 27 Development for a Growing Economy Fund. 28 Section 5-85. The Economic Development for a Growing 29 Economy Fund. 30 (a) The Economic Development for a Growing Economy Fund 31 is established to be used exclusively for the purposes of SB40 Engrossed -17- LRB9101877PTmb 1 this Act, including paying for the costs of administering 2 this Act. The Fund shall be administered by the Department. 3 (b) The Fund consists of collected fees, appropriations 4 from the General Assembly, and gifts and grants to the Fund. 5 (c) The State Treasurer shall invest the money in the 6 Fund not currently needed to meet the obligations of the Fund 7 in the same manner as other public funds may be invested. 8 Interest that accrues from these investments shall be 9 deposited into the Fund. 10 (d) The money in the Fund at the end of a State fiscal 11 year remains in the Fund to be used exclusively for the 12 purposes of this Act. Expenditures from the Fund are subject 13 to appropriation by the General Assembly. 14 Section 5-90. Program Terms and Conditions. 15 (a) Any documentary materials or data made available or 16 received by any member of a Committee or any agent or 17 employee of the Department shall be deemed confidential and 18 shall not be deemed public records to the extent that the 19 materials or data consists of trade secrets, commercial or 20 financial information regarding the operation of the business 21 conducted by the Applicant for or recipient of any tax credit 22 under this Act, or any information regarding the competitive 23 position of a business in a particular field of endeavor. 24 (b) Nothing in this Act shall be construed as creating 25 any rights in any Applicant to enter into an Agreement or in 26 any person to challenge the terms of any Agreement. 27 Section 5-105. The Civil Administrative Code of Illinois 28 is amended by changing Section 46.62 as follows: 29 (20 ILCS 605/46.62) (from Ch. 127, par. 46.62) 30 Sec. 46.62. To establish and administer a Technology 31 Challenge Grant Program and an Illinois
AdvancedTechnology SB40 Engrossed -18- LRB9101877PTmb 1 Enterprise Development and Investment Program as provided by 2 the Technology Advancement and Development Act and to expend 3 appropriations in accordance therewith. 4 (Source: P.A. 86-870; 86-1028.) 5 Section 5-110. The State Finance Act is amended by 6 adding Section 5.490 as follows: 7 (30 ILCS 105/5.490 new) 8 Sec. 5.490. The Economic Development for a Growing 9 Economy Fund. 10 Section 5-115. The Illinois Income Tax Act is amended by 11 adding Section 211 as follows: 12 (35 ILCS 5/211 new) 13 Sec. 211. Economic Development for a Growing Economy Tax 14 Credit. For tax years beginning on or after January 1, 1999, 15 a Taxpayer who has entered an Agreement under the Economic 16 Development for a Growing Economy Tax Credit Act is entitled 17 to a credit against the taxes imposed under subsections (a) 18 and (b) of Section 201 of this Act in an amount to be 19 determined in the Agreement. If the Taxpayer is a partnership 20 or Subchapter S corporation, the credit shall be allowed to 21 the partners or shareholders in accordance with the 22 determination of income and distributive share of income 23 under Sections 702 and 704 and subchapter S of the Internal 24 Revenue Code. The Department, in cooperation with the 25 Department of Commerce and Community Affairs, shall prescribe 26 rules to enforce and administer the provisions of this 27 Section. This Section is exempt from the provisions of 28 Section 250 of this Act. 29 The credit shall be subject to the conditions set forth 30 in the Agreement and the following limitations: SB40 Engrossed -19- LRB9101877PTmb 1 (1) The tax credit shall not exceed the Incremental 2 Income Tax (as defined in Section 5-5 of the Economic 3 Development for a Growing Economy Tax Credit Act) with 4 respect to the project. 5 (2) The amount of the credit allowed during the tax 6 year plus the sum of all amounts allowed in prior years 7 shall not exceed 100% of the aggregate amount expended by 8 the Taxpayer during all prior tax years on approved costs 9 defined by Agreement. 10 (3) The amount of the credit shall be determined on 11 an annual basis; however, the credit against any State 12 tax liability may not extend beyond 10 taxable years 13 after the project is first approved and may not extend 14 beyond the expiration of the Agreement. 15 (4) The credit may not exceed the amount of taxes 16 imposed pursuant to subsections (a) and (b) of Section 17 201 of this Act. Any credit that is unused in the year 18 the credit is computed may be carried forward and applied 19 to the tax liability of the 5 taxable years following the 20 excess credit year. The credit shall be applied to the 21 earliest year for which there is a tax liability. If 22 there are credits from more than one tax year that are 23 available to offset a liability, the earlier credit shall 24 be applied first. 25 (5) No credit shall be allowed with respect to any 26 Agreement for any taxable year ending after the 27 Noncompliance Date. Upon receiving notification by the 28 Department of Commerce and Community Affairs of the 29 noncompliance of a Taxpayer with an Agreement, the 30 Department shall notify the Taxpayer that no credit is 31 allowed with respect to that Agreement for any taxable 32 year ending after the Noncompliance Date, as stated in 33 such notification. If any credit has been allowed with 34 respect to an Agreement for a taxable year ending after SB40 Engrossed -20- LRB9101877PTmb 1 the Noncompliance Date for that Agreement, any refund 2 paid to the Taxpayer for that taxable year shall, to the 3 extent of that credit allowed, be an erroneous refund 4 within the meaning of Section 912 of this Act. 5 (6) For purposes of this Section, the terms 6 "Agreement", "Incremental Income Tax", and 7 "Noncompliance Date" have the same meaning as when used 8 in the Economic Development for a Growing Economy Tax 9 Credit Act. 10 Section 5-120. The Technology Advancement and 11 Development Act is amended by changing Sections 1002, 1003, 12 1004, 2001, 2002, 2003, the Article 3 heading, Sections 3001, 13 3002, 3003, 3004.5 and 4003 and adding the Article 3.5 14 heading and Sections 3501, 3505, 3510, 3515, 3520, 3525, and 15 3530 as follows: 16 (20 ILCS 700/1002) (from Ch. 127, par. 3701-2) 17 Sec. 1002. Findings and declaration of policy. The 18 General Assembly hereby finds that numerous economic 19 challenges confront the State, including dramatic increases 20 in foreign productivity and global market competition which 21 have forced a retrenchment in key business sectors and a 22 reduction in high paying manufacturing jobs which threaten to 23 undermine Illinois' standard of living and quality of life. 24 In order to avoid economic stagnation and decline, Illinois 25 must keep pace with the global revolution in manufacturing 26 technology that is occurring in virtually every major 27 industrialized nation competing in the international 28 marketplace. 29 The General Assembly further finds that an appropriate 30 economic response would require increasing the level of 31 investment in research and development; utilizing industry, 32 State and local government, andlabor, and academia to create SB40 Engrossed -21- LRB9101877PTmb 1 state-wide programs; and fostering an improved environment 2 for productivity and technological competitiveness. These 3 various programs would utilize Illinois' present resources in 4 many developing areas including health care and biomedical 5 research, information and telecommunications, computing and 6 electronic equipment, manufacturing technologies and 7 materials research, transportation and aerospace, geoscience, 8 financial and service industries, and agriculture and 9 biotechnology. 10 It is the purpose of this Act to identify, develop and 11 commercialize technology which will permit Illinois firms to 12 successfully compete in today's world markets, and to 13 authorize State and local government to promote 14 systematically, within the provisions of this Act, those 15 private sector and nonprofit research institution efforts 16 that will serve as intermediaries to achieve the programs 17 authorized under this Act; and continue to insure Illinois' 18 economic vitality and competitiveness through (i) 19 commercialization of new technology products; (ii) 20 modernization of services by technology enterprises; and 21 (iii) modernization of the industrial base of small and 22 medium-sized manufacturers. 23 (Source: P.A. 86-870.) 24 (20 ILCS 700/1003) (from Ch. 127, par. 3701-3) 25 Sec. 1003. Definitions. The following words and 26 phrases, for the purposes of this Act, shall have the 27 meanings respectively ascribed to them, except when the 28 context otherwise requires, or except as otherwise provided 29 in this Act: 30 (a)"Advanced technology project" means any area of 31 basic or applied research or development which is designed to 32 foster greater knowledge or understanding, or which is 33 designed for the purposes of improving, designing, SB40 Engrossed -22- LRB9101877PTmb 1 developing, prototyping, producing or commercializing new 2 products, techniques, processes or technical devices in 3 present or emerging fields of health care and biomedical 4 research, information and communication systems, computing 5 and computer services, electronics, manufacturing, robotics 6 and materials research, transportation and aerospace, 7 agriculture and biotechnology, and finance and services. 8 (b)"Business expense" includes working capital 9 financing, the purchase or lease of machinery and equipment, 10 or the lease or purchase of real property, including 11 construction, renovation, or leasehold improvements, but does 12 not include refinancing current debt. 13 (c)"Business project" means any specific economic 14 development activity of a commercial, industrial, 15 manufacturing, agricultural, scientific, financial, service 16 or other not-for-profit nature, which is expected to yield an 17 increase in jobs or to result in the retention of jobs or an 18 improvement in production efficiency. 19 (d)"Department" means the Illinois Department of 20 Commerce and Community Affairs. 21 (e)"Director" means the Director of the Illinois 22 Department of Commerce and Community Affairs. 23 (f)"Financial assistance" means a loan, investment, 24 grant or the purchase of qualified securities or other means 25 whereby financial aid is made to or on behalf of a business 26 project or advanced technology project. 27 "Intermediary organization" means any participating 28 organization including not-for-profit entities, for-profit 29 entities, State development authorities, institutions of 30 higher education, other public or private corporations, which 31 may include the Illinois Coalition, or other entities 32 necessary or desirable to further the purpose of this Act 33 engaged by the Department through any contract, agreement, 34 memoranda of understanding, or other cooperative arrangement SB40 Engrossed -23- LRB9101877PTmb 1 to deliver programs authorized under this Act. 2 "Investment loan" means any loan structured so that the 3 applicant repays the principal and interest and provides a 4 qualified security investment to serve both as additional 5 loan security and as an additional source of repayment. 6 (g)"Loan" means acceptance of any note, bond, 7 debenture, or evidence of indebtedness, whether unsecured or 8 secured by a mortgage, pledge, deed of trust, or other lien 9 on any property, or any certificate of, receipt for, 10 participation in, or an option to any of the foregoing. A 11 loan shall bear such interest rate, with such terms of 12 repayment, secured by such collateral, with other terms and 13 conditions, as the Department shall deem necessary or 14 appropriate. 15 (h)"Participating lender or investor" means any trust 16 company, bank, savings bank, credit union, merchant bank, 17 investment bank, broker, investment trust, pension fund, 18 building and loan association, savings and loan association, 19 insurance company, venture capital company or other 20 institution, community or State development corporation, 21 development authority authorized to do business by an Act of 22 this State, or other public or private financing intermediary 23 approved by the Department whose purposes include financing, 24 promoting, or encouraging economic development financing. 25 (i)"Qualified security investments" means any stock, 26 convertible security, treasury stock, limited partnership 27 interest, certificate of interest or participation in any 28 profit sharing agreement, preorganization certificate or 29 subscription, transferable share, investment contract, 30 certificate of interest or participation in a patent or 31 application or, in general, any interest or instrument 32 commonly known as a "security" or any certificate for, 33 receipt for, guarantee of, or option, warrant or right to 34 subscribe to or purchase any of the foregoing, but not SB40 Engrossed -24- LRB9101877PTmb 1 including any instrument which contains voting rights or 2 which can be converted to contain voting rights in the 3 possession of the Department. 4 (Source: P.A. 88-453.) 5 (20 ILCS 700/1004) (from Ch. 127, par. 3701-4) 6 Sec. 1004. Duties and powers. The Department of 7 Commerce and Community Affairs shall establish and administer 8 any of the programs authorized under this Act subject to the 9 availability of funds appropriated by the General Assembly. 10 The Department may a Challenge Grant Program and an Advanced11 Technology Investment Program and shallmake awards from 12 general revenue fund appropriations, federal reimbursement 13 funds, the Technology Cooperation Fund, and the New 14 Technology Recovery Fund as provided under the provisions of 15 this Act. The Department, in addition to those powers 16 granted under The Civil Administrative Code of Illinois, is 17 granted the following powers to help administer the 18 provisions of this Act: 19 (a) To provide financial assistance as direct or 20 participation grants, loans or qualified security investments 21 to, or on behalf of, eligible applicants. Loans, grants and 22 investments shall be made for the purpose of increasing 23 research and development, commercializing technology, 24 adopting advanced production and processing techniques, and 25 promoting job creation and retention within Illinois; 26 (b) To enter into agreements, accept funds or grants, 27 and engage in cooperation with agencies of the federal 28 government, local units of government, universities, research 29 foundations or institutions, regional economic development 30 corporations or other organizations for the purposes of this 31 Act; 32 (c) To enter into contracts, and letter of credit33 agreements, and memoranda of understanding; and to provide SB40 Engrossed -25- LRB9101877PTmb 1 funds for participation agreements or to make any other 2 agreements or contracts or to invest, grant, or loan funds to 3 any participating intermediary organizations including, 4 not-for-profit entities, for-profit entities, State agencies 5 or authorities, government owned and contract operated 6 facilities, institutions of higher education, other lender,7 private investor,public or private development corporations 8 corporation, or other entities entitynecessary or desirable 9 to further the purpose of this Act. Any such agreement or 10 contract by an intermediary organization to deliver programs 11 authorized under this Act may include terms and provisions 12 including, but not limited to organization and development of 13 documentation, review and approval of projects, servicing and 14 disbursement of funds and other related activities; 15 (d) To fix, determine, charge and collect any premiums, 16 fees, charges, costs and expenses, including without 17 limitation, any application fees, commitment fees, program 18 fees, financing charges, or publication fees in connection 19 with the Department's activities under this Act; 20 (e) To establish forms for applications, notifications, 21 contracts, or any other agreements, and to promulgate 22 procedures, rules or regulations deemed necessary and 23 appropriate; 24 (f) To establish and regulate the terms and conditions 25 of the Department's agreements and to consent, subject to the 26 provisions of any agreement with another party, to the 27 modification or restructuring of any agreement to which the 28 Department is a party; 29 (g) To require that recipients of financial assistance 30 shall at all times keep proper books of record and account in 31 accordance with generally accepted accounting principles 32 consistently applied, with such books open for reasonable 33 Department inspection and audits, including, without 34 limitation, the making of copies thereof; SB40 Engrossed -26- LRB9101877PTmb 1 (h) To require applicants or grantees receiving funds 2 under this Act to permit the Department to: (i) inspect and 3 audit any books, records or papers related to the project in 4 the custody or control of the applicant, including the making 5 of copies or extracts thereof, and (ii) inspect or appraise 6 any of the applicant's or grantee's business assets; 7 (i) To require applicants or grantees, upon written 8 request by the Department, to issue any necessary 9 authorization to the appropriate federal, State or local 10 authority for the release of information concerning a 11 business or business project financed under the provisions of 12 this Act, with the information requested to include, but not 13 be limited to, financial reports, returns, or records 14 relating to that business or business project; 15 (i-5) To provide staffing, administration, and related 16 support required to manage the programs authorized under this 17 Act and to pay for staffing and administration from the New 18 Technology Recovery Fund as appropriated by the General 19 Assembly. Administrative responsibilities may include, but 20 are not limited to, research and identification of the needs 21 of commerce and industry in this State; design of 22 comprehensive statewide plans and programs; direction, 23 management, and control of specific projects; and 24 communication and cooperation with entities about technology 25 commercialization and business modernization; 26 (j) To take whatever actions are necessary or 27 appropriate to protect the State's interest in the event of 28 bankruptcy, default, foreclosure or noncompliance with the 29 terms and conditions of financial assistance or participation 30 required under this Act, including the power to sell, 31 dispose, lease or rent, upon terms and conditions determined 32 by the Director to be appropriate, real or personal property 33 which the Department may receive as a result thereof; and 34 (k) exercise such other powers as are necessary to SB40 Engrossed -27- LRB9101877PTmb 1 carry out the purposes of this Act. 2 (Source: P.A. 88-453.) 3 (20 ILCS 700/2001) (from Ch. 127, par. 3702-1) 4 Sec. 2001. Technology Challenge Grant Program. 5 (a) The Department may shall, subject to appropriated 6 funds, establish a Technology Challenge Grant Program to 7 provide initial grant funding requirements to help secure 8 federal research and development projects for this State and 9 to identify and develop technology programs capable of 10 commercialization or establish one or more programs 11 authorized under this Article as part of its Technology 12 Challenge Grant Program Initiative to serve as a catalyst and 13 assure a strong base to develop, transfer, or commercialize 14 new technologies. The Department shall, pursuant to Section 15 2003 of this Article, evaluate which grant applications best 16 serve the economic and technological objectives of the State. 17 (b) Grants shall be awarded from appropriations made for 18 that purpose to: (i) universities, colleges, community 19 colleges, nonprofit research foundations or laboratories, 20 State research institutions, industry technology 21 associations, or(ii) technology partnerships or technology 22 consortiums established by a formal joint project agreement 23 between: (1) two or more private industries, or (2) any 24 combination of one or more private industries with one or 25 more universities, colleges, community colleges, nonprofit 26 research laboratories, nonprofit research foundations, or 27 State research institutions, or (iii) any private enterprise 28 developing or commercializing technology or leveraging 29 federal technology development financing, including, but not 30 limited to, the small business innovative research program. 31 (Source: P.A. 88-453.) 32 (20 ILCS 700/2002) (from Ch. 127, par. 3702-2) SB40 Engrossed -28- LRB9101877PTmb 1 Sec. 2002. Grant purposes. 2 (a) Grants authorized under this Article shall be 3 awarded only for the following purposes: (i) applied 4 innovation research that provides initial grant funding to 5 help serve critical research and development projects to 6 respond to unique, advanced technology projects for which no7 other source of funding is availableand which foster the 8 development of Illinois' economy through the advancement of 9 the State's economic, scientific, and technological assets, 10 or which are recognized as technology programs of exemplary 11 and outstanding research in the field of science and 12 technology; or (ii)to assist eligible applicants in the 13 State apply for, or qualify for and leverage, federal funds 14 awarded for advanced technology projects concerning research 15 and development, business innovation research or technical 16 development, or the transfer of useful technology to the 17 private sector; (ii) university and industry partnerships 18 that create high-skill employment opportunities and 19 internship activities in the communities that enable 20 graduates and faculty to stay in Illinois and university and 21 industry initiatives that strengthen the relationship between 22 industry and academia in Illinois so that applied university 23 research is responsive to the needs of the various state 24 industries and industry clusters; (iii) centers of excellence 25 in technology commercialization, innovation evaluation, and 26 intellectual property management that encourages the growth 27 of new enterprises based on technologies developed at 28 Illinois research centers including to fundtechnology 29 partnerships, technology consortiums or research centers and 30 industry technology associations that are, or will be, 31 established to perform research and development in present 32 and emerging technologies that can be developed for use by 33 commerce and industry; and (iv) , or to transfertechnology 34 transfer projects involving promotion of new or innovative SB40 Engrossed -29- LRB9101877PTmb 1 technologies among small and medium-sized Illinois 2 manufacturers where the technologies have immediate 3 commercial application; and conducttraining and information 4 dissemination that is directly applicable to small and 5 medium-sized Illinois manufacturer needs; or information 6 transfer to Illinois based research institution regarding 7 best practice in industrial commercialization of technology 8 developments; (v) planning and operational support for 9 statewide support that improve practices in technology 10 commercialization including and (iv) to assist in theneeds 11 assessment and evaluation of the status of technology 12 implementation throughout the State. 13 (b) Grants awarded pursuant to this Article may be used 14 to help subsidize expenses, as approved by the Department, 15 for capital improvements, equipment, contractual services, 16 commodities, personnel, support costs, including 17 telecommunication, electronic data and commodities, or other 18 costs. 19 (Source: P.A. 88-453.) 20 (20 ILCS 700/2003) (from Ch. 127, par. 3702-3) 21 Sec. 2003. Grant evaluation and amounts. 22 (a) The Department shall evaluate grant applications 23 based upon criteria provided under this Section. The 24 Department shall not award any Challenge Grant that is not 25 recommended for funding by the Illinois Governor'sScience 26 and Technology Advisory Committee and the Illinois or27 associated private sectorCoalition. In determining which 28 grant applicants shall be awarded a Challenge Grant, the 29 Department shall conduct an evaluation of prior compliance 30 with loan or grant agreements for any grant applicant 31 previously funded by the Department. In addition, the 32 Department shall consider the following criteria in 33 determining grant awards: the relationship of a proposed SB40 Engrossed -30- LRB9101877PTmb 1 advanced technology project to the State's future economic 2 growth; the qualifications and expertise of consultants, 3 firms or organizations undertaking the effort; the potential 4 for leveraging federal or private research dollars, or both, 5 for the initiative; the extent of the capacity of the 6 applicant or the applicant partnership or consortium to 7 finance the initiative; the potential for adapting, 8 commercializing or adopting the results of the applicant's 9 project for the economic benefit of the State; and the 10 likelihood that the project has a potential for creating new 11 jobs or retaining current jobs in the State. 12 (b) The Director of the Department shall determine the 13 level of the grant award and shall determine the share of 14 total directly attributable costs of an advanced technology 15 project which may be considered for funding under this 16 Article. 17 (c) The Department and the Department of Natural 18 Resources are hereby authorized to cooperate with and provide 19 support to the Illinois Governor'sScience and Technology 20 Advisory Committee and the Illinois its associated private21 sectorCoalition. Such support may include the provision of 22 office space and may be technical, advisory or operational in 23 nature. 24 (Source: P.A. 89-445, eff. 2-7-96; revised 12-2-98.) 25 (20 ILCS 700/Art. 3 heading) 26 ARTICLE 3. ILLINOIS ADVANCEDTECHNOLOGY 27 ENTERPRISE DEVELOPMENT AND INVESTMENT PROGRAM 28 (20 ILCS 700/3001) (from Ch. 127, par. 3703-1) 29 Sec. 3001. Illinois AdvancedTechnology Enterprise 30 Development and Investment Program. The Department shall, 31 subject to appropriated funds, establish an Advanced 32 Technology Enterprise Development InvestmentProgram to: (i) SB40 Engrossed -31- LRB9101877PTmb 1 provide investments, loans, or qualified security investments 2 to or on behalf of young or growing businesses, in 3 cooperation with private investment companies, private 4 investors or conventional lending institutions which also 5 assume a portion of the investment loan or financing for a 6 business project, or on behalf of new or emerging business 7 through financial intermediaries as they commercialize 8 advanced technology projects; (ii) fund regional technology 9 enterprise development centers that make available resources 10 and expertise in furthering the technical or managerial 11 skills of owners; aid the ventures in locating financing; and 12 help new companies with product development and marketing 13 provide loans to, or on behalf of, the State's mature, small14 or medium-sized businesses for the modernization and15 installation of advanced technologies or processes which will16 improve the business' production systems and work17 organization, which in turn will preserve and create private18 sector jobs by increasing the firm's long-term competitive19 viability; (iii) provide grants to, or on behalf of,20 Illinois' mature, small or medium-sized businesses21 undertaking feasibility studies, competitiveness assessments22 and productivity audits to restore their businesses'23 competitiveness; and (iv) provide qualified investments,24 loans or grants to development credit corporations, financial25 intermediaries or other entities whose purpose includes26 financing, promoting or encouraging commercialization,27 adoption or implementation of advanced technologies,28 processes or products. 29 (Source: P.A. 86-870.) 30 (20 ILCS 700/3002) (from Ch. 127, par. 3703-2) 31 Sec. 3002. Investment requirements. Any direct 32 financial assistance shall: 33 (a) Be awarded only if other financing with respect to SB40 Engrossed -32- LRB9101877PTmb 1 the business project is provided. Other financing may be in 2 the form of any loan, equity position, convertible preferred 3 stock, letter of credit, guarantee, limited partnership 4 interest, bond purchase or any other form approved by the 5 Department; 6 (b) Be protected by adequate security. Financial 7 assistance may be secured by first or second mortgage 8 positions on real or personal property, by royalty payments, 9 by personal notes or guarantees, or by any other security 10 satisfactory to the Department to secure repayment, if 11 required, by the financial assistance agreement; 12 (c) Be in such principal amount and form, and contain 13 such terms and provisions with respect to the property, 14 insurance, repairs, alteration, payment of taxes and 15 assessments, delinquency charges, default remedies, 16 additional security and other matters as the Department shall 17 determine adequate to protect the public interest. 18 (Source: P.A. 88-453.) 19 (20 ILCS 700/3003) (from Ch. 127, par. 3703-3) 20 Sec. 3003. Applications. 21 (a) An application for direct financial assistance shall 22 be submitted to the Department in accordance with forms and 23 filing fees prescribed by the Department. The application 24 may require facts about the company's history, job 25 opportunities, stability of employment, past and present 26 condition and structure, actual and pro-forma income 27 statements, present and future market prospects and 28 management qualification, and any other facts deemed material 29 to the financing request. The Department shall obtain such 30 additional information concerning the application as it deems 31 necessary and diligent. 32 The Department may create a credit review committee which 33 shall, on the basis of the application, and any other SB40 Engrossed -33- LRB9101877PTmb 1 information, prepare a report concerning the 2 credit-worthiness of the proposed borrower, the financial 3 commitment of other investors, the manner in which the 4 proposed business project will advance the economy of the 5 State, and the soundness of the proposed financial assistance 6 agreement. 7 After consideration of such report, and after such other 8 action as it deems appropriate, the Department shall approve 9 or deny the application. If the Department approves the 10 application, its approval shall specify the amount of funds 11 to be provided and the financial assistance agreement 12 provisions which shall apply to the applicant. The applicant 13 shall be promptly notified of such action by the Department. 14 (b) The Department may, subject to available 15 appropriated funds, provide grants or investments in 16 revolving fund portfolios with intermediary organizations or 17 participating lenders or investors. The financial assistance 18 may be made available to intermediaries that assume a 19 responsibility for the administration of the projects funded 20 through the grant or investment. 21 Applications shall be submitted to the Department in 22 accordance with forms and filing fees prescribed by the 23 Department. The application may require facts about the 24 intermediary's history, past, and present condition and 25 structure, actual, and pro-forma income statements, present 26 and future market prospects and management qualification, and 27 any other facts deemed material to the financing request. 28 (Source: P.A. 86-870.) 29 (20 ILCS 700/3004) (from Ch. 127, par. 3703-4) 30 Sec. 3004. Investment purpose. 31 (a) Direct qualified investments, loans, or 32 participation investments in loan andinvestment or loan 33 portfolios with financial intermediariesauthorized by this SB40 Engrossed -34- LRB9101877PTmb 1 Article 1of this Act may be made for the purpose of 2 financing any new process, technique, product, service or 3 device which is, or which may be, capable of being reduced to 4 practice, and which is, or which may be, commercially 5 exploitable by (i) young newor growing Illinois businesses 6 or (ii) to helpapplicants who have qualified for Federal 7 Small Business Innovation Research funds. 8 Financial assistance proceeds may be used for expenses 9 that include, but are not limited to, costs incurred for 10 research and development, amortizable organizational costs, 11 working capital financing, the purchase or lease of machinery 12 and equipment, and the acquisition, improvement or 13 rehabilitation of land and buildings. In determining if 14 direct or participationqualified security investments or 15 loans are to be made, the Department shall find that there is 16 a likelihood of commercial feasibility given the state of 17 development of the proposed product, process, or technical 18 device, and that there is a likelihood of increased job 19 opportunities in the near term as a result of the security 20 investment. Direct qualified security investments or 21 investment loans the Department's participation in the22 qualified security investment or loan portfolio of an23 authorized financial intermediaryfor an eligible applicant 24 shall not be made for more than $500,000 and shall not be 25 made for more than 50% of the business project costs unless 26 the Director determines that a waiver of these limits is 27 required to meet the purpose of this Act. In making a 28 determination to participate in an the qualified security29 investment or loan portfolio of an authorized participating 30 lender or investor financial intermediaryon behalf of 31 eligible applicants, the Department shall find that the 32 administering financial intermediary is capable of 33 effectively evaluating the commercialization feasibility of 34 the proposed product, process, service or technical device SB40 Engrossed -35- LRB9101877PTmb 1 technology and the likelihood of increased job creation 2 impact that may result from project financing. In no 3 instance shall the Department's participation in an the4 qualifiedinvestment or andloan portfolio of any authorized 5 participating lender or investor financial intermediary6 exceed $2,000,000 at one time. 7 (b) A loan made for company modernization or retooling 8 may be for any purpose consistent with the objectives of this 9 Act including, but not limited to, purchases of advanced 10 machinery, equipment and tooling; organizational expenses for 11 services, personnel training, corporate restructuring; 12 working capital; acquisition, improvement or rehabilitation 13 of land and buildings which are an integral part of a new 14 production or process technology; or any other business 15 expense reasonably related to the project. In determining if 16 a loan is to be provided, the Department shall determine 17 whether there will be an expected improvement in production 18 levels, quality of output or timeliness of delivery and that 19 the number of jobs to be created or retained is reasonable in 20 relation to the loan funds requested. A loan to eligible 21 applicants for modernization or retooling shall not be made 22 for more than $500,000 or for more than 25% of the business 23 project costs unless the Director of the Department 24 determines that a waiver of these limits is required to meet 25 the purposes of this Act. 26 (c) Grants may be made for the purpose of financing 27 feasibility studies, competitive assessments or productivity 28 services which the Department determines may result in 29 technology enhancement, retooling, restructuring or other 30 competitiveness improvements. In determining the amount of a 31 grant, the Department shall: (i) examine the level of 32 expertise of the consultant or firm undertaking the 33 feasibility study or competitive assessment; (ii) evaluate 34 the likelihood of an applicant's proposed feasibility study SB40 Engrossed -36- LRB9101877PTmb 1 or competitive assessment resulting in a substantial 2 improvement in the applicant's operations; (iii) determine 3 whether that improvement will result in the creation or 4 retention of jobs. Grants to eligible applicants shall not 5 exceed $100,000 or 50% of the project costs unless the 6 Director of the Department determines that a waiver of these 7 limits is required to meet the purposes of this Act. 8 (Source: P.A. 88-453.) 9 (20 ILCS 700/3004.5 new) 10 Sec. 3004.5. Illinois Technology Enterprise Centers 11 Requirements. 12 (a) The Department may, subject to available 13 appropriated funds, working with the Illinois Coalition, 14 establish one or more regional technology enterprise 15 development centers whose mission is to assist entrepreneurs, 16 innovators, and start-up firms in high-growth, high 17 technology sectors in furthering the technical or managerial 18 skills of owners; aid the ventures in locating financing; and 19 help new companies with product development and marketing in 20 support of new venture formation within the State. 21 (b) The Department may provide grants or may provide 22 cost share or reimbursements pursuant to this Section to 23 support the operation of technology enterprise development 24 centers. Grants awarded pursuant to this Article may be used 25 to help subsidize expenses, as approved by the Department, 26 for revolving funds, personnel, support costs, capital 27 improvements, equipment, contractual services, commodities, 28 including telecommunication or other costs. 29 (c) Technology enterprise development centers may 30 provide crucial business information at affordable prices for 31 firms that are developing early-stage, technology-oriented 32 manufacturing including (i) general or short-term assistance, 33 general outreach, feasibility studies for new venture SB40 Engrossed -37- LRB9101877PTmb 1 formation, and research assistance for new venture creation; 2 (ii) innovation evaluation and market research to evaluate 3 the viability of technology, product, or service or the 4 market potential of technology, product, or service; (iii) 5 technical assistance related to management and operations and 6 strategic partnering and assistance in the implementation of 7 strategic manufacturing and marketing alliances; and (iv) 8 service in locating new technologies or technological 9 solutions. 10 (d) Technology enterprise development centers may 11 provide financial services that include (i) financial 12 packaging to enhance proposals and make companies more 13 competitive for federal or private funding; (ii) access to 14 private investor capital through venture capital events and 15 regional venture capital networking programs; and (iii) 16 management of local for-profit or limited profit seed capital 17 funds. 18 (e) Technology enterprise development centers may address 19 local shortfalls of capital to commercialize new technology 20 by providing pre-seed financing to start-up, technology-based 21 businesses. Financing options could include micro-loans, 22 small grants, and equity investment capital for seed funding, 23 product commercialization and prototype development, and 24 commercial introduction and marketing. 25 (f) The Department may provide grant funds made 26 available to support professional development and capacity 27 building of the technology enterprise development centers 28 within the State as may be required for the administration, 29 operations, research, analysis, or training of the centers. 30 (g) In determining which applicants shall be awarded a 31 grant, the Department shall conduct an evaluation of prior 32 compliance with loan or grant awards; the relationship of a 33 proposed project to the State's future economic growth; the 34 qualifications and expertise of organizations undertaking the SB40 Engrossed -38- LRB9101877PTmb 1 effort; the applicant's understanding of the requirements and 2 needs of entrepreneurs, innovators, and start-up firms in 3 high-growth, high technology sectors; the potential of the 4 applicant's project to provide an economic benefit of the 5 State; and the likelihood that the project has a potential 6 for creating new ventures in the State. 7 (h) The Director of the Department shall determine the 8 level of the grant award and shall determine the share of 9 total directly attributable costs of the project that may be 10 considered for funding under this Article. 11 (20 ILCS 700/Art. 3.5 heading new) 12 ARTICLE 3.5. BUSINESS MODERNIZATION INITIATIVE 13 (20 ILCS 700/3501 new) 14 Sec. 3501. Business Modernization Initiative. The 15 Department may create one or more programs under this Article 16 to assist the State's existing mature business and industry 17 base to adopt and use appropriate technologies. The programs 18 may vary in breadth of activities, services, and projects in 19 accordance with the level or complexity of the manufacturers' 20 needs or problems. The Department's programs shall emphasize 21 the provision of comprehensive assistance. 22 (20 ILCS 700/3505 new) 23 Sec. 3505. Modernization Retooling Loan Program. 24 (a) The Department may establish, subject to available 25 appropriated funds, a loan program that will improve 26 businesses' production systems and work organization to 27 preserve and create private sector jobs by increasing the 28 firms' long-term competitive viability. The program may 29 provide loans to, or on behalf of, the State's mature, small, 30 or medium-sized businesses for the modernization and 31 installation of advanced technologies or processes. SB40 Engrossed -39- LRB9101877PTmb 1 (b) A loan made for company modernization or retooling 2 may be for any purpose consistent with the objectives of this 3 Act including, but not limited to, purchases of advanced 4 machinery, equipment, and tooling; organizational expenses 5 for services, personnel training, and corporate 6 restructuring; working capital; acquisition, improvement, 7 or rehabilitation of land and buildings that are an integral 8 part of a new production or process technology; or any other 9 business expense reasonably related to the project. No loan 10 made by the Department shall be used to pay for the 11 retirement of previous debt unless the debt is a part of the 12 purchase or lease of machinery or equipment that is being 13 upgraded. 14 (c) In determining if a loan is to be provided, the 15 Department shall determine whether there will be an expected 16 improvement in production levels, quality of output, or 17 timeliness of delivery and that the number of jobs to be 18 created or retained is reasonable in relation to the loan 19 funds requested. A loan to an eligible applicant for 20 modernization or retooling shall not be made for more than 21 $500,000 or for more than 25% of the business project costs 22 unless the Director determines that a waiver of these limits 23 is required to meet the purposes of this Act. 24 (20 ILCS 700/3510 new) 25 Sec. 3510. Development Corporation Program. 26 (a) The Department may provide, subject to available 27 appropriated funds, financial assistance to the State's 28 mature, small, or medium-sized businesses through development 29 corporations that assume a responsibility for the 30 administration of the loan projects for the modernization and 31 installation of advanced technologies. 32 (b) Development corporation financial assistance may be 33 in the form of direct loans, grants, or purchases of SB40 Engrossed -40- LRB9101877PTmb 1 qualified security investments or financial assistance. 2 Development credit corporations, financial intermediaries, or 3 other entities whose purpose includes financing, promoting, 4 or encouraging commercialization, adoption, or implementation 5 of advanced technologies, processes, or products, as 6 determined by the Department, may participate in this 7 program. 8 (c) Financial assistance authorized under this Section 9 shall be used by the development corporation for loans or 10 investments to firms to improve the businesses' production 11 systems and work organization that will preserve and create 12 private sector jobs by increasing the firms' long-term 13 competitive viability and may be used for the planning and 14 operation of the development corporation as approved by the 15 Department through its agreement with the development 16 corporation. 17 (d) The Department is authorized to rely upon, and may 18 provide for in the execution of an agreement, the 19 participating lender's or investor's review on behalf of the 20 State and approval of the credit, collateral security, and 21 documentation; determination of eligibility, economic results 22 expected, and the prospects for viability and repayment; the 23 collection and use of fees, premiums, or charges; the 24 organization, servicing, and disbursement of financial 25 assistance; and such other purposes and activities as the 26 Department, in its sole discretion, shall determine to be 27 reasonable, appropriate, and consistent with the purposes of 28 this Article. 29 (20 ILCS 700/3515 new) 30 Sec. 3515. Modernization grants. 31 (a) Subject to available appropriated funds, 32 modernization grants may be made for the purpose of 33 financing, competitive assessments, or productivity SB40 Engrossed -41- LRB9101877PTmb 1 improvement services that the Department determines may 2 result in technology enhancement, retooling, restructuring, 3 or other competitiveness improvements. Grants may be made 4 to, or on behalf of, Illinois' mature, small, or medium-sized 5 businesses for (i) undertaking feasibility studies, 6 competitiveness assessments, and productivity audits to 7 restore their businesses' competitiveness or (ii) the 8 modernization and installation of advanced manufacturing 9 systems or processes that will improve the businesses' 10 production systems and work organization, or will preserve 11 and create private sector jobs by increasing the firms' 12 long-term competitive viability. 13 (b) Assistance authorized under this Section may be in 14 the form of direct grant agreements, agreements with private 15 sector consultants on behalf of a firm, or agreements with 16 participating intermediary organizations as authorized under 17 Article 1. 18 (c) In determining the amount of a modernization grant, 19 the Department shall: (i) examine the level of expertise of 20 the consultant or firm undertaking the competitiveness 21 assessment or productivity improvement services; (ii) 22 evaluate the likelihood of an applicant's proposed 23 competitiveness assessment or productivity improvement 24 services resulting in a substantial improvement in the 25 applicant's operations; and (iii) determine whether 26 improvement will result in the creation or retention of jobs. 27 Modernization grants to eligible applicants shall not exceed 28 $100,000 or 50% of the project costs, unless the Director 29 determines that a waiver of these limits is required to meet 30 the purposes of this Act. 31 (20 ILCS 700/3520 new) 32 Sec. 3520. Manufacturing Extension Program. 33 (a) The Department may establish, subject to available SB40 Engrossed -42- LRB9101877PTmb 1 appropriated funds, a program of statewide manufacturing 2 extension centers serving the geographic needs of the State's 3 manufacturers, whose mission is to assist small or 4 medium-sized manufacturers with technological advancement, 5 for continuous improvement of business practices for these 6 firms to be better positioned to succeed against global 7 competition. 8 (b) The Department may provide grants or may provide 9 cost share or reimbursements under this Section to support 10 the operation of manufacturing extension deliverers, 11 including organizations financed through a federal 12 manufacturing extension partnership program. Manufacturing 13 extension deliverers can include universities and colleges, 14 regional or sectorial based organizations, technical 15 societies, or other similar groups. 16 (c) The Department may provide grant funds made 17 available under this Act to support professional development 18 and capacity building of the manufacturing extension system 19 within the State as may be required for the administration, 20 operations, research, analysis, promotion, or training of 21 geographic based manufacturing extension centers. 22 (d) In determining which applicants shall be awarded a 23 grant, the Department shall conduct an evaluation of prior 24 compliance with awards programs; the relationship of a 25 proposed project to the State's future economic growth; the 26 qualifications and expertise of organizations undertaking the 27 effort; the applicant's understanding of the requirements and 28 needs of the target groups served; the potential of the 29 applicant's project to provide an economic benefit of the 30 State; the methods engaged to measure and track performance; 31 and the likelihood that the project has a potential for 32 improving the competitiveness of small and mid-sized 33 manufacturers. SB40 Engrossed -43- LRB9101877PTmb 1 (20 ILCS 700/3525 new) 2 Sec. 3525. Manufacturing and Export Base Services. 3 (a) The Department may, subject to available appropriated 4 funds, establish a program of statewide assistance to the 5 manufacturing and services export base of the State serving 6 the sector-wide needs of small and medium-sized companies. 7 (b) The Department may provide grants, cost share funds, 8 or reimbursements: to State or substate programs providing 9 better access to information; to reduce the impediments to 10 the flow of technical information; and to provide Illinois 11 manufacturers, producer firms, and export services firms with 12 better or more timely access to the State's and the nation's 13 technology base, including industrial and engineering 14 consulting practices, university and research laboratory 15 based engineers, private commercial product vendors, and 16 other sources of technology or non-technology services. 17 (c) The Department may provide grants to those private, 18 public, and non-profit research institutions and 19 organizations that agree to serve as an intermediary to 20 achieve the purpose set forth in this Section that continues 21 to ensure Illinois' economic vitality and competitiveness. 22 (d) The Department may seek out applicants that may be 23 considered for a grant, and may provide an award based on the 24 qualifications and expertise of organizations undertaking the 25 effort, the applicants understanding of the requirements and 26 needs of the target groups served, and the likelihood that 27 the proposed project will improve the State's future economic 28 potential. 29 (20 ILCS 700/3530 new) 30 Sec. 3530. Eligible applicants; forms of assistance. 31 Financial assistance may be made to, or on behalf of, any 32 for-profit entity, sole proprietorship, partnership, 33 corporation, or joint venture carrying on business, or SB40 Engrossed -44- LRB9101877PTmb 1 organized to carry on business, in this State. Financial 2 assistance authorized under this Article may be made 3 available to not-for-profit organizations, including 4 educational agencies, business or trade associations, 5 economic development organizations, and participating 6 lenders, in the form of participation agreements, direct 7 loans, grant agreements, purchases of qualified security, or 8 any other form as determined by the Department. 9 (20 ILCS 700/4003) (from Ch. 127, par. 3704-3) 10 Sec. 4003. Federal programs. The Department is authorized 11 to accept and expend federal monies in furtherance of this 12 Act and to use funds appropriated under this Act for programs 13 pending reimbursement from federal funds, except that the 14 terms and conditions established under this Act, which are 15 inconsistent with or prohibited by the federal authorization 16 under which such monies are made available, shall not apply 17 with respect to the expenditure of such monies. 18 (Source: P.A. 86-870.) 19 ARTICLE 10. 20 Section 10-5. The Civil Administrative Code of Illinois 21 is amended by changing Section 46.32a as follows: 22 (20 ILCS 605/46.32a) (from Ch. 127, par. 46.32a) 23 Sec. 46.32a. Labor-management-community relations. 24 (a) Because economic development investment programs 25 must be supplemented with efforts to maintain a skilled, 26 stable, and diverse workforce able to meet the needs of new 27 and growing business enterprises, the Department shall 28 promote better labor-management-community and government 29 operations by providing labor-management relations and30 provideassistance in the development of local SB40 Engrossed -45- LRB9101877PTmb 1 labor-management-community labor-managementcommittees and 2 coalitions established to address employment issues facing 3 families and by helping Illinois current and prospective 4 employers attract and retain a diverse and productive 5 workforce through the promotion and support of dependent care 6 policies and programs in the workplace and community. 7 In the Department there shall be a 8 Labor-Management-Community Labor-ManagementCooperation 9 Committee composed of 18 12public members appointed by the 10 Governor with the advice and consent of the Senate. Six 11 members shall represent executive level management of 12 businesses, that employ labor union members and6 members 13 shall represent major labor union leadership, and 6 members 14 shall represent community leadership. The Governor shall 15 designate 1 business representative and 1 labor 16 representative as cochairmen. Appointed members shall not be 17 represented at a meeting by another person. There shall be 9 18 ex officio 6 ex officiononvoting members: the Director of 19 the Department, who shall serve as Secretary, the Director of20 the Departmentof Labor, the Secretary of Human Services, the 21 Director of Public Health, the Director of Employment 22 Security, the President of the Senate, the Minority Leader of 23 the Senate, the Speaker of the House of Representatives and 24 the Minority Leader of the House of Representatives. Each ex 25 officio member shall serve during the term of his or her 26 office. Ex officio members may be represented by duly 27 authorized substitutes. 28 In making the initial public member appointments to the 29 Committee, 3 of the business representatives and 3 of the 30 labor union representatives shall be appointed for terms 31 expiring July 1, 1987. The remaining public members shall be 32 appointed for terms expiring July 1, 1988. The public 33 members appointed under this amendatory Act of the 91st 34 General Assembly shall be divided into 2 groups with the SB40 Engrossed -46- LRB9101877PTmb 1 first group having terms that expire on July 1, 2002 and the 2 second group having terms that expire on July 1, 2003. 3 Thereafter, public members of the Committee shall be 4 appointed for terms of 2 years expiring on July 1, or until 5 their successors are appointed and qualified. The Governor 6 may at any time, with the advice and consent of the Senate, 7 make appointments to fill vacancies for the balance of an 8 unexpired term. Public members shall serve without 9 compensation, but shall be reimbursed by the Department for 10 necessary expenses incurred in the performance of their 11 duties. The Department shall provide staff assistance to the 12 Committee. 13 The Committee shall have the following duties: 14 (1) to improve communications between labor, and15 management, and communities on significant economic 16 problems facing the State especially with respect to 17 identifying new ways to attract and retain employees and 18 provide an environment in which employees can do their 19 best work; 20 (2) to encourage and support the development of 21 local labor, management, and community labor-management22 committees at the plant, industry and area levels across 23 the State and encourage and support the development of 24 local coalitions to support the implementation of 25 family-friendly policies in the workplace; 26 (3) to assess the progress of area 27 labor-management-community labor-managementcommittees 28 and local coalitions that have been formed across the 29 State and provide input to the Governor and General 30 Assembly Director of the Departmentconcerning matching31 grants to area labor-management committees or othergrant 32 programs established in this Act; 33 (4) to convene a Statewide conference on 34 labor-management-community labor-managementconcerns at SB40 Engrossed -47- LRB9101877PTmb 1 least once every 2 years and to convene a series of 2 regional work, family, and community planning conferences 3 throughout the State for employers, unions, and community 4 leaders to form local coalitions to share information, 5 pool resources, and address work and family concerns in 6 their own communities; 7 (5) to issue a report on labor-management-community 8 and employment-related family labor-managementconcerns 9 to the Governor and the General Assembly every 2 years 10 commencing in March of 1987. This report shall outline 11 the accomplishments of the Committee and specific 12 recommendations for improving Statewide 13 labor-management-community labor-managementrelations and 14 supporting the adoption of family-friendly work practices 15 throughout the State; .16 (6) to advise the Department on dependent care and 17 other employment-related family initiatives; and 18 (7) to advise the Department on other initiatives 19 to foster maintenance and development of productive, 20 stable, and diverse workforces to supplement and advance 21 community and State investment-based economic development 22 programs. 23 (b) The Director, with the advice of the 24 Labor-Management-Community Labor-ManagementCooperation 25 Committee, shall have the authority to provide grants to 26 employee coalitions or other coalitions that enhance or 27 promote work and family programs and address specific 28 community concerns, and to provide matching grants, grants 29 and other resources to establish or assist area 30 labor-management-community labor-managementcommittees and 31 other projects which serve to enhance 32 labor-management-community labor-managementrelations. The 33 Department shall have the authority, with the advice of the 34 Labor-Management-Community Labor-ManagementCooperation SB40 Engrossed -48- LRB9101877PTmb 1 Committee, to award grants or matching grants in the 2 following fourareas: 3 (1) To provide At least 60 percent of the annual4 appropriation to the Department, for providing5 labor-management grants and resources shall be awarded as6 matching grants to existing local 7 labor-management-community labor-managementcommittees. 8 To be eligible for matching grants pursuant to this 9 subsection, local labor-management-community 10 labor-managementcommittees shall: 11 (i) Be a formal, not-for-profit organization 12 structured for continuing service with voluntary 13 membership; 14 (ii) Be composed of labor, andmanagement, and 15 community representatives; 16 (iii) Service a distinct and identifiable 17 geographic region; 18 (iv) Be staffed by a professional chief 19 executive officer; 20 (v) Have been established with the Department 21 for at least 2 twoyears; 22 (vi) Operate in compliance with rules set 23 forth by the Department with the advice of the 24 Labor-Management-Community Labor-Management25 Cooperation Committee; and 26 (vii) Ensure that its efforts and activities 27 are coordinated with relevant agencies, including 28 but not limited to the following: 29 Department of Commerce and Community Affairs 30 Illinois Department of Labor 31 Economic development agencies 32 Corridor councils33 Planning agencies 34 Colleges, universities and community colleges SB40 Engrossed -49- LRB9101877PTmb 1 U.S. Department of Labor 2 Statewide Job Training Partnership Act entities 3 or any successor federal workforce training and 4 development legislation. 5 Further, the purpose of the local 6 labor-management-community labor-managementcommittees 7 will include, but not be limited to: 8 (i) Enhancing the positive 9 labor-management-community labor-management10 relationship within the State, region, community 11 and/or work place; 12 (ii) Assisting in the retention, expansion and 13 attraction of businesses and jobs within the State 14 through special training programs, gathering and 15 dissemination of information and providing 16 assistance in local economic development efforts as 17 appropriate; 18 (iii) Creating and maintaining a regular 19 nonadversarial forum for ongoing dialogue between 20 labor, andmanagement, and community representatives 21 to discuss and resolve issues of mutual concern 22 outside the realm of the traditional collective 23 bargaining process; 24 (iv) Acting as an intermediary for initiating 25 local programs between unions and employers which 26 would generally improve economic conditions in a 27 region; 28 (v) Encouraging, assisting and facilitating 29 the development of work-site and industry 30 labor-management-community labor-management31 committees in the region. 32 Any local labor-management-community 33 labor-managementcommittee meeting these criteria may 34 apply to the Department for annual matching grants, SB40 Engrossed -50- LRB9101877PTmb 1 provided providingthat the local committee contributes 2 at least 25 percent in matching funds, of which no more 3 than 50 percent shall be "in-kind" services. Funds 4 received by a local committee pursuant to this subsection 5 shall be used for the ordinary operating expenses of the 6 local committee. 7 (2) To provide Up to 20 percent of the annual8 appropriation to the Department for providing9 labor-management grants and resources may be awarded as10 matching grants to local labor-management-community 11 labor-managementcommittees which do not meet all of the 12 eligibility criteria set forth in subsection (1). 13 However, to be eligible to apply for a grant under this 14 subsection, the local labor-management-community 15 labor-managementcommittee, at a minimum, shall: 16 (i) Be composed of labor, andmanagement, and 17 community representatives; 18 (ii) Service a distinct and identifiable 19 geographic region; 20 (iii) Operate in compliance with the rules set 21 forth by the Department with the advice of the 22 Labor-Management-Community Labor-Management23 Cooperation Committee; 24 (iv) Ensure that its efforts and activities 25 are directed toward enhancing the 26 labor-management-community labor-management27 relationship within the State, region, community 28 and/or work place. 29 Any local labor-management-community 30 labor-managementcommittee meeting these criteria may 31 apply to the Department for an annual matching grant, 32 provided providingthat the local committee contributes 33 at least 25 percent in matching funds of which no more 34 than 50 percent shall be "in-kind" services. Funds SB40 Engrossed -51- LRB9101877PTmb 1 received by a local committee pursuant to paragraph (2) 2 of subsection (b) of this Section shall be used for the 3 ordinary and operating expenses of the local committee. 4 Eligible committees shall be limited to three years of 5 funding under this subsection. With respect to those 6 committees participating in this program prior to 7 enactment of this amendatory Act of 1988 which fail to 8 qualify under paragraph (1) of subsection (b) of this 9 Section, previous years' funding shall be counted in 10 determining whether those committees have reached their 11 funding limit under this paragraph (2). 12 (3) To provide Up to 10 percent of the annual13 appropriation to the Department for providing14 labor-management grants and resources may be awarded as15 grants to develop and conduct specialized education and 16 training programs of direct benefit to representatives of 17 labor, management, labor-management-community 18 labor-managementcommittees and/or their staff. The type 19 of education and training programs to be developed and 20 offered will be determined and prioritized annually by 21 the Department, with the advice of the 22 Labor-Management-Community Labor-ManagementCooperation 23 Committee. The Department will develop and issue an 24 annual request for proposals proposaldetailing the 25 program specifications. 26 (4) To provide Up to 10 percent of the annual27 appropriation to the Department for providing28 labor-management grants and resources may be awarded as29 grants for research and development projects related to 30 labor-management-community or employment-related family 31 labor-managementissues. The Department, with the advice 32 of the Labor-Management-Community Labor-Management33 Cooperation Committee, will develop and prioritize 34 annually the type and scope of the research and SB40 Engrossed -52- LRB9101877PTmb 1 development projects deemed necessary. 2 (5) To provide grants of up to a maximum of $5,000 3 to support the planning of regional work, family, and 4 community planning conferences that will be based on 5 specific community concerns. 6 (6) To provide grants to initiate or support 7 recently created employer-led coalitions to establish 8 pilot projects that promote the understanding of the work 9 and family issues and support local workforce dependent 10 care services. 11 The Department is authorized to establish 12 applications, application procedures and promulgate any 13 rules deemed necessary in the administration of such 14 grants. 15 (c) To administer the grant programs created by this 16 Act, the Department shall establish an Office of Work and 17 Family Issues Labor-Management Cooperation. The purpose of 18 this office shall include, but not be limited to: 19 (1) To administer the grant programs, including 20 developing grant applications and requests for proposals 21 proposal, program monitoring and evaluation. 22 (2) To serve as State liaison with other state, 23 regional and national organizations devoted to promoting 24 labor-management-community labor-managementcooperation 25 and employment-related family issues; disseminating 26 pertinent information secured through these state, 27 regional and national affiliations to local 28 labor-management-community labor-managementcommittees, 29 the Labor-Management-Community Labor-Management30 Cooperation Committee, employer coalitions, Illinois 31 Employment and Training Centers, and other interested 32 parties throughout the State. 33 (3) To provide technical assistance to area, 34 industry or work-site labor-management-community SB40 Engrossed -53- LRB9101877PTmb 1 labor-managementcommittees as requested. 2 (4) To serve as a clearinghouse for information 3 related to labor-management-community labor-management4 cooperation. 5 (5) To serve as a catalyst to developing and 6 strengthening a partnership among local, state, regional 7 and national organizations and agencies devoted to 8 enhancing labor-management-community labor-management9 cooperation and employment-related family issues. 10 (6) To provide any other programs or services which 11 enhance labor-management-community labor-management12 cooperation or that may promote the adoption of 13 family-friendly workplace practices at companies located 14 within the State of Illinois as determined by the 15 Director with the advice of the 16 Labor-Management-Community Labor-ManagementCooperation 17 Committee. 18 (7) To establish an Illinois Work and Family 19 Clearinghouse to disseminate best-practice work and 20 family policies and practices throughout the State, 21 including through the Illinois Employment and Training 22 Centers; to provide and develop a computerized database 23 listing dependent care information and referral services; 24 to help employers by providing information about options 25 for dependent care assistance, to conduct and compile 26 research on elder care, child care, and other 27 employment-related family issues in Illinois; and to 28 compile and disseminate any other information or services 29 that support the adoption of family-friendly workplace 30 practices at companies located in the State. 31 (Source: P.A. 88-456; revised 10-31-98.) 32 ARTICLE 15. SB40 Engrossed -54- LRB9101877PTmb 1 Section 15-1. Short Title. This Article may be cited as 2 the Illinois Business Regulatory Review Act. 3 Section 15-5. Purpose. The General Assembly finds that 4 small businesses and their growth are critical to the 5 economic health of the State. Small businesses, more so than 6 larger firms, often need assistance to negotiate through 7 complex government forms, rules, and regulations. The 8 current overall business climate of the State would be made 9 more attractive and competitive and would otherwise benefit 10 from reductions in unnecessarily burdensome rules and 11 regulations. A formal method to generate private sector 12 analysis, input, and guidance on methods of regulatory review 13 for the Governor and executive agencies, the constitutional 14 officers, and the General Assembly is needed for this 15 purpose. 16 Section 15-10. Illinois Economic Development Board 17 responsibilities. In addition to its duties under the Civil 18 Administrative Code of Illinois and the Illinois Economic 19 Development Board Act, the Illinois Economic Development 20 Board shall form a Business Regulatory Committee to generate 21 private sector analysis, input, and guidance on methods of 22 regulatory assistance and review. 23 Section 15-15. Economic Development Board Regulatory 24 Committee membership. Membership, composition, bylaws, and 25 methods of operation of the Committee shall be determined by 26 the Board. At the determination of the Board, individual 27 small business owners and operators; national, State, and 28 regional organizations representative of small firms; and 29 representatives of existing State or regional councils of 30 business may be designated as members of this Business 31 Regulatory Committee. SB40 Engrossed -55- LRB9101877PTmb 1 Section 15-20. Regulatory policy responsibilities of the 2 Committee. In addition to those duties and responsibilities 3 as directed by the Board, the Committee shall analyze, 4 determine, and report to the Board, so that the Board may 5 report to the Governor and executive agencies under the 6 control of the Governor, the constitutional officers, and the 7 General Assembly, overall methods of achieving greater small 8 business impact of the regulatory process the following 9 information: 10 (1) Identify specific ways in which existing 11 regulations and regulatory programs can be made more 12 responsive and responsible to small business. 13 (2) Identify more effective ways of eliciting 14 participation from the private sector in efforts to 15 simplify and clarify regulations so that they are not 16 overly complex or burdensome. 17 (3) Provide suggestions for involving small 18 business owners and their representatives in the 19 rulemaking process in a more meaningful way. 20 (4) Provide constructive suggestions for reducing 21 forms and paperwork particularly where they are 22 duplicative, overly complicated, or otherwise burdensome 23 for small business. 24 (5) Determine effective ways to communicate with 25 small business owners and to assist them in their 26 understanding and implementation of complex regulations. 27 (6) Recommend non-punitive methods of ensuring 28 compliance with regulatory objectives or requirements 29 including pre-inspection programs, advisory services, 30 education and training, and industry self-regulation. 31 Section 15-25. Regulatory review responsibilities of the 32 Business Regulatory Review Committee. At the direction and 33 request of the Board, the Committee shall review and analyze SB40 Engrossed -56- LRB9101877PTmb 1 regulations and make specific recommendations, from the 2 perspective of cost and benefit, reasonableness and common 3 sense, and permissiveness of community economic growth and 4 development, on the following: 5 (1) Selected regulatory topics to provide guidance 6 to State agencies regarding the formulation of and 7 revision to specific rules and regulations. 8 (2) Existing and proposed rules and regulations for 9 the purpose of determining whether the rule is 10 excessively burdensome or imposes undue hardship on those 11 subject to the regulation. 12 (3) Whether the public benefit derived from a rule 13 or a proposed rule exceeds the increased public and 14 private cost of complying with the rule being imposed. 15 (4) Less restrictive, less costly, or less 16 burdensome means to achieve the same result. 17 Section 15-30. Advisory responsibilities of the Business 18 Regulatory Review Committee. At the direction and request of 19 the Board, the Committee shall provide the following advisory 20 assistance: 21 (1) To advise the Office of the Governor regarding 22 agency rulemaking and to offer recommendations that 23 improve the State rulemaking process, which may include 24 alternative standards that might be set for enforcement 25 by regulatory agencies. 26 (2) To advise the General Assembly about whether 27 the State should adopt small business regulatory 28 enforcement fairness legislation modeled after the 29 equivalent federal legislation and regarding how Illinois 30 laws compare with those of other states and how Illinois 31 might implement reforms adopting the better or best 32 practices of these other states. 33 (3) To advise the Department of Commerce and SB40 Engrossed -57- LRB9101877PTmb 1 Community Affairs with the operations of the First Stop, 2 small business regulatory review, and similar department 3 programs. 4 (4) To advise relevant State agencies on the 5 formulation of federally required State rules. 6 Section 15-35. Support for Committee. The Committee 7 shall be provided staff support services by the Department of 8 Commerce and Community Affairs, the Office of the Governor, 9 and various regulatory agencies. Members of the Committee 10 shall serve without compensation, but may be reimbursed for 11 expenses. 12 Section 15-105. The Civil Administrative Code of 13 Illinois is amended by changing 46.19a as follows: 14 (20 ILCS 605/46.19a) (from Ch. 127, par. 46.19a) 15 Sec. 46.19a. Employment and technology grants. 16 (1) Grants to provide training in fields affected by 17 critical demands for certain skills may be made as provided 18 in this subsection. 19 (a) The Director of the Department may make grants 20 to eligible employers or to other eligible entities on 21 behalf of employers as authorized in paragraph (b) to 22 provide training for employees in fields for which there 23 are critical demands for certain skills. 24 (b) The Director may accept applications for 25 training grant funds and grant requests from: (i) 26 entities sponsoring multi-company eligible employee 27 training projects as defined in paragraph (c), including 28 business associations, strategic business partnerships, 29 institutions of secondary or higher education, large 30 manufacturers for supplier network companies, federal Job SB40 Engrossed -58- LRB9101877PTmb 1 Training Partnership Act administrative entities or grant 2 recipients, and labor organizations when those projects 3 will address common training needs identified by 4 participating companies; and (ii) individual employers 5 that are undertaking eligible employee training projects 6 as defined in paragraph (c), including intermediaries and 7 training agents. 8 (c) The Director may make grants to eligible 9 applicants as defined in paragraph (b) for employee 10 training projects that include, but need not be limited 11 to, one or more of the following: 12 (i) training programs in response to new or 13 changing technology being introduced in the 14 workplace; 15 (ii) job-linked training that offers special 16 skills for career advancement or that is preparatory 17 for, and leads directly to, jobs with definite 18 career potential and long-term job security; 19 (iii) training necessary to implement total 20 quality management or improvement or both management 21 and improvement systems within the workplace; 22 (iv) training related to new machinery or 23 equipment; 24 (v) training of employees of companies that 25 are expanding into new markets or expanding exports 26 from Illinois; 27 (vi) basic, remedial, or both basic and 28 remedial training of employees as a prerequisite for 29 other vocational or technical skills training or as 30 a condition for sustained employment; 31 (vii) self-employment training of the 32 unemployed and underemployed with comprehensive, 33 competency-based instructional programs and services 34 , entrepreneurial education and training initiatives SB40 Engrossed -59- LRB9101877PTmb 1 for youth and adult learners in cooperation with the 2 Illinois Institute for Entrepreneurial Education, 3 training and education, conferences, workshops, and 4 best practice information for local program 5 operators of entrepreneurial education and 6 self-employment training programs; and 7 (viii) other training activities, projects, or 8 both training activities and projects related to the 9 support, development, or evaluation of job training 10 programs, activities, and delivery systems, 11 including training needs assessment and design. 12 (d) Grants shall be made on the terms and 13 conditions that the Department shall determine, provided, 14 however, that no grant made under the provisions of 15 paragraph (c) of this subsection shall exceed 50% of the 16 direct costs of all approved training programs provided 17 by the employer or the employer's training agent or other 18 entity as defined in paragraph (b). Under this Section, 19 allowable costs include, but are not limited to: 20 (i) administrative costs of tracking, 21 documenting, reporting, and processing training 22 funds or project costs; 23 (ii) curriculum development; 24 (iii) wages and fringe benefits of employees; 25 (iv) training materials, including scrap 26 product costs; 27 (v) trainee travel expenses; 28 (vi) instructor costs, including wages, fringe 29 benefits, tuition, and travel expenses; 30 (vii) rent, purchase, or lease of training 31 equipment; and 32 (viii) other usual and customary training 33 costs. 34 (e) The Director will ensure that a minimum of one SB40 Engrossed -60- LRB9101877PTmb 1 on-site grant monitoring visit is conducted by the 2 Department either during the course of the grant period 3 or within 6 months following the end of the grant period. 4 The Department shall verify that the grantee's financial 5 management system is structured to provide for accurate, 6 current, and complete disclosure of the financial results 7 of the grant program in accordance with all provisions, 8 terms, and conditions contained in the grant contract. 9 (f) The Director may establish and collect a 10 schedule of charges from subgrantee entities and other 11 system users under federal job-training programs for 12 participating in and utilizing the department's automated 13 job-training program information systems where such 14 systems and the necessary participation and utilization 15 is a requirement of the federal job-training programs. 16 All monies collected pursuant to this paragraph shall be 17 deposited into the Federal Job-Training Information 18 Systems Revolving Fund created in subsection (5). 19 (2) The Department is authorized to establish a program 20 of grants to universities, community colleges, research 21 institutions, research consortiums, other not-for-profit 22 entities, and Illinois businesses for the purpose of 23 fostering research and development in the high technology and 24 the service sector leading to the development of new products 25 and services that can be marketed by Illinois businesses. All 26 grant awards shall include a contract which may provide for 27 payment of negotiated royalties to the Department if the 28 product or service to be developed by the grantee is 29 subsequently licensed for production. 30 (a) Grants may be awarded to universities and 31 research institutions to assist them in making their 32 faculties and facilities available to Illinois 33 businesses. Such grants may be used by a university or 34 research institution for, including but not limited to SB40 Engrossed -61- LRB9101877PTmb 1 the following purposes: (i) to establish or enhance 2 computerized cataloging of all research labs and 3 university staff and make such catalogues available to 4 Illinois businesses; (ii) to market products developed by 5 the university to Illinois businesses; (iii) to review 6 publications in order to identify, catalog, and inform 7 Illinois businesses of new practices in areas such as 8 robotics, biotechnology; (iv) to build an on-line, 9 information and technology system that relies on other 10 computerized networks in the United States; (v) to assist 11 in securing temporary replacement for faculty who are 12 granted a leave of absence from their teaching duties for 13 the purpose of working full-time for an Illinois business 14 to assist that business with technology transfer. 15 (b) Grants may be awarded to universities and 16 research institutions, research consortiums and other 17 not-for-profit entities for the purpose of identifying 18 and supporting Illinois businesses engaged in high 19 technology and service sector enterprises. Such Illinois 20 businesses identified and funded shall include recipients 21 of Small Business Innovation Research Program funds under 22 subsections (e) through (k) of Section 9 of the Small 23 Business Act. (Title 15 United States Codes, subsections 24 638(e)-638(k)). Entities receiving grants under this 25 paragraph (b) shall be known as commercialization centers 26 and shall engage in one or more of the following 27 activities: 28 (i) directing research assistance for new 29 venture creations; 30 (ii) general feasibility studies of new 31 venture ideas; 32 (iii) furthering the technical and 33 intellectual skills of the managers and owners of 34 Illinois small businesses; SB40 Engrossed -62- LRB9101877PTmb 1 (iv) commercialization of technology and 2 research; 3 (v) development of prototypes and testing new 4 products; 5 (vi) identify and assist in securing 6 financing; 7 (vii) marketing assistance; and 8 (viii) assisting Illinois inventors in finding 9 Illinois manufacturers to produce and market their 10 inventions. 11 A commercialization center may charge a nominal fee 12 or accept royalty agreements for conducting feasibility 13 studies and other services. 14 (c) Grants may be awarded by the Department to 15 Illinois businesses to fund research and consultation 16 arrangements between businesses and universities, 17 community colleges, research institutions, research 18 consortiums and other not-for-profit entities within this 19 State. 20 The Department shall give priority to Illinois small 21 businesses in awarding grants. Each grant awarded under 22 this paragraph (c) shall provide funding for up to 50% of 23 the cost of the research or consultation arrangements, 24 not to exceed $100,000; provided that the grant recipient 25 utilizes Illinois not for profit research and academic 26 institutions to perform the research and development 27 function for which grant funds were requested. 28 (d) Grants may be awarded to research consortium 29 and other qualified applicants, in conjunction with 30 private sector or federal funding, for other creative 31 systems that bridge university resources and business, 32 technological, production and development concerns. 33 (e) For the purposes of subsection (2), (i) 34 "Illinois business" means a "small business concern" as SB40 Engrossed -63- LRB9101877PTmb 1 defined in Title 15 United States Code, Section 632, 2 which primarily conducts its business in Illinois; (ii) 3 "high technology" means any area of research or 4 development designed to foster greater knowledge or 5 understanding in fields such as computer science, 6 electronics, physics, chemistry or biology for the 7 purpose of producing designing, developing or improving 8 prototypes and new processes; (iii) "private sector" 9 shall have the meaning ascribed to it in Title 29 United 10 States Code, Section 1503; (iv) "University" means either 11 a degree granting institution located in Illinois as 12 defined in Section 2 of the Academic Degree Act, or a 13 State-supported institution of higher learning 14 administered by the Board of Trustees of the University 15 of Illinois, the Board of Trustees of Southern Illinois 16 University, the Board of Trustees of Chicago State 17 University, the Board of Trustees of Eastern Illinois 18 University, the Board of Trustees of Governors State 19 University, the Board of Trustees of Illinois State 20 University, the Board of Trustees of Northeastern 21 Illinois University, the Board of Trustees of Northern 22 Illinois University, the Board of Trustees of Western 23 Illinois University, or the Illinois Community College 24 Board; (v) "venture" means any Illinois business engaged 25 in research and development to create new products or 26 services with high growth potential; (vi) Illinois 27 research institutions refers to not-for-profit entities, 28 which include federally-funded research laboratories, 29 that conduct research and development activities for the 30 purpose of producing, designing, developing, or improving 31 prototypes and new processes; and (vii) other 32 not-for-profit entities means non-profit organizations 33 based in Illinois that are primarily devoted to new 34 enterprise or product development. SB40 Engrossed -64- LRB9101877PTmb 1 (f) The Department may establish a program of grant 2 assistance on a matching basis to universities, community 3 colleges, small business development centers, community 4 action agencies and other not-for-profit economic 5 development agencies to encourage new enterprise 6 development and new business formation and to encourage 7 enterprises in this State. The Department may provide 8 grants, which shall be exempt from the provisions of 9 subsection (3) of this Section, to universities, 10 community colleges, small business development centers, 11 community action agencies and other not-for-profit 12 economic development entities for the purpose of making 13 loans to small businesses. All grant applications shall 14 contain information as required by the Department, 15 including the following: a program operation plan; a 16 certification and assurance that the small business 17 applicants have received business development training or 18 education, have a business and finance plan and have 19 experience in the proposed business area; and a 20 description of the support services which the grant 21 recipient will provide to the small business. No more 22 than 10% of the grant may be used by the grant recipient 23 for administrative costs associated with the grant. 24 Grant recipients may use grant funds under this program 25 to make loans on terms and conditions favorable to the 26 small business and shall give priority to those 27 businesses located in high poverty areas, enterprise 28 zones, or both. 29 (3) There is created within the Department, a Technology 30 Innovation and Commercialization Grants-in-Aid Council which 31 shall consist of 2 representatives of the Department of 32 Commerce and Community Affairs appointed by the Department; 33 one representative of the Illinois Board of Higher Education, 34 appointed by the Board; one representative of science or SB40 Engrossed -65- LRB9101877PTmb 1 engineering appointed by the Governor; two representatives of 2 business, appointed by the Governor; one representative of 3 small business, appointed by the Governor; one representative 4 of the Department of Agriculture, appointed by the Director 5 of Agriculture; and one representative of agribusiness, 6 appointed by the Director of Agriculture. The Director of 7 Commerce and Community Affairs shall appoint one of the 8 Department's representatives to serve as chairman of the 9 Council. The Council members shall receive no compensation 10 for their services but shall be reimbursed for their expenses 11 actually incurred by them in the performance of their duties 12 under this subsection. The Department shall provide staff 13 services to the Council. The Council shall provide for review 14 and evaluation of all applications received by the Department 15 under subsection (2) of this Section and make recommendations 16 on those projects to be funded. The Council shall also assist 17 the Department in monitoring the projects and in evaluating 18 the impact of the program on technological innovation and 19 business development within the State. 20 (4) There is hereby created a special fund in the State 21 Treasury to be known as the Technology Innovation and 22 Commercialization Fund. The moneys in such Fund may be used, 23 subject to appropriation, only for making grants pursuant to 24 subsection (2) of this Section and for the purposes of the 25 Technology Advancement and Development Act. All royalties 26 received by the Department shall be deposited in such Fund. 27 (5) There is hereby created a special fund in the State 28 treasury to be known as the Federal Job-Training Information 29 Systems Revolving Fund. The deposit of monies into this fund 30 shall be limited to the collection of charges pursuant to 31 paragraph (f) of subsection (1) of this Section. The monies 32 in the fund may only be used, subject to appropriation by the 33 General Assembly for the purpose of financing the maintenance 34 and operation of the automated Federal Job-Training SB40 Engrossed -66- LRB9101877PTmb 1 Information Systems pursuant to paragraph (f) of subsection 2 (1) of this Section. 3 (6) When the Department is involved in developing a 4 federal or State funded training or retraining program for 5 any employer, the Department will assist and encourage that 6 employer in making every effort to reemploy individuals 7 previously employed at the facility. Further, the Department 8 will provide a list of said employees to said employer for 9 consideration for reemployment and will report the results of 10 this effort to the Illinois Job Training Coordinating 11 Council. This requirement shall be in effect when the 12 following conditions are met: 13 (a) the employer is reopening, or is proposing to 14 reopen, a facility which was last closed during the 15 preceding 2 years, 16 (b) a substantial number of the persons who were 17 employed at the facility before its most recent closure 18 remain unemployed, and 19 (c) the product or service produced by, or proposed 20 to be produced by, the employer at the facility is 21 substantially similar to the product or service produced 22 at the facility before its most recent closure. 23 (7) The Department, in cooperation with the Departments 24 of Human Services and Employment Security, may establish a 25 program to encourage community action agencies to establish 26 programs that will help unemployed and underemployed single 27 parents to identify, access, and develop, through such means 28 as counseling or mentoring, internal and external resources 29 that will enable those single parents to become emotionally 30 and financially self-sufficient. The intended primary 31 beneficiaries of the local programs shall be female heads of 32 households who are at least 22 but less than 46 years of age 33 and who are physically able to work but are unemployed or 34 underemployed. The Department may make grants, subject to SB40 Engrossed -67- LRB9101877PTmb 1 the availability of funding, to communities and local 2 agencies for the purpose of establishing local programs as 3 described in this subsection (7). A grant under this 4 subsection (7) shall be made for a period of one year and may 5 be renewed if the Department determines that the program is 6 successful in meeting its objectives. If the Department 7 determines that implementation of a program has resulted in a 8 savings of State moneys that otherwise would have been paid 9 to beneficiaries of the program, the Department, on renewing 10 a grant, may adjust the grant amount for those demonstrated 11 savings. For purposes of this subsection, a person is 12 underemployed if his or her income from employment is less 13 than 185% of the federal official poverty income guideline. 14 (Source: P.A. 89-4, eff. 1-1-96; 89-507, eff. 7-1-97; 90-454, 15 eff. 8-16-97.) 16 Section 15-110. The Women's Business Ownership Act is 17 amended by changing Section 20 as follows: 18 (20 ILCS 705/20) 19 (Section scheduled to be repealed on September 1, 1999) 20 Sec. 20. Repeal. This Act is repealed September 1, 2004 21 1999. 22 (Source: P.A. 88-597, eff. 8-28-94.) 23 Section 15-115. The Illinois Economic Development Board 24 Act is amended by changing Section 3 and adding Section 4.5 25 as follows: 26 (20 ILCS 3965/3) (from Ch. 127, par. 3953) 27 Sec. 3. The board shall be composed of citizens from 28 both the private and public sectors who are actively engaged 29 in organizations and businesses that support economic 30 expansion, industry enhancement and job creation. The board SB40 Engrossed -68- LRB9101877PTmb 1 shall be composed of the following persons: 2 (a) the Governor or his or her designee; 3 (b) four formembers of the General Assembly, one 4 each appointed by the President of the Senate, the 5 Speaker of the House of Representatives, and the minority 6 leaders of the Senate and House of Representatives; 7 (c) 20 members appointed by the Governor including 8 representatives of small business, minority owned 9 companies, women owned companies, manufacturing, economic 10 development professionals, and citizens at large. one11 representative of a manufacturing company employing more12 than 1,000 persons;13 (d) (blank) one representative of a manufacturing14 company employing fewer than 100 persons; 15 (e) (blank) one representative of a manufacturing16 company employing between 100 and 1,000 persons; 17 (f) (blank) three representatives from organized18 labor; 19 (g) (blank) one representative from a major20 financial institution; 21 (h) (blank) one representative from agriculture; 22 (i) (blank) one representative from education; 23 (j) (blank) one representative from the retail24 industry; 25 (k) (blank) one representative from the service26 industry; 27 (l) (blank); one economic development professional;28 and29 (m) (blank) five citizens at large. 30 The director of the Department of Commerce and Community 31 Affairs shall serve as an ex officio member of the board. 32 The Governor shall appoint the members of the board 33 specified in subsections (c) through (m) of this Section, 34 subject to the advice and consent of the Senate, within 30 SB40 Engrossed -69- LRB9101877PTmb 1 days after the effective date of this Act. The first meeting 2 of the board shall occur within 60 days after the effective 3 date of this Act. 4 The Governor shall appoint a chairperson and a vice 5 chairperson of the board. Members shall serve 2-year terms. 6 The position of a legislative member shall become vacant if 7 the member ceases to be a member of the General Assembly. A 8 vacancy in a board position shall be filled by the original 9 appointing authority. 10 The board shall include representation from each of the 11 State's geographic areas. 12 The board shall meet quarterly or at the call of the 13 chair and shall create subcommittees as needed to deal with 14 specific issues and concerns. Members shall serve without 15 compensation but may be reimbursed for expenses. 16 (Source: P.A. 86-1430.) 17 (20 ILCS 3965/4.5 new) 18 Sec. 4.5. Additional duties. In addition to those 19 duties granted under Section 4, the Illinois Economic 20 Development Board shall: 21 (1) Establish a Business Investment Location 22 Development Committee for the purpose of making 23 recommendations for designated economic development 24 projects. At the request of the Board, the Director of 25 Commerce and Community Affairs or his or her designee; 26 the Director of the Bureau of the Budget, or his or her 27 designee; the Director of Revenue, or his or her 28 designee; the Director of Employment Security, or his or 29 her designee; and an elected official of the affected 30 locality, such as the chair of the county board or the 31 mayor, may serve as members of the Committee to assist 32 with its analysis and deliberations. 33 (2) Establish a Business Regulatory Review SB40 Engrossed -70- LRB9101877PTmb 1 Committee to generate private sector analysis, input, and 2 guidance on methods of regulatory assistance and review. 3 At the determination of the Board, individual small 4 business owners and operators; national, State, and 5 regional organizations representative of small firms; and 6 representatives of existing State or regional councils of 7 business may be designated as members of this Business 8 Regulatory Review Committee. 9 Section 15-120. The Business Enterprise for Minorities, 10 Females, and Persons with Disabilities Act is amended by 11 changing Section 9 as follows: 12 (30 ILCS 575/9) (from Ch. 127, par. 132.609) 13 (Section scheduled to be repealed on September 6, 1999.) 14 Sec. 9. This Act is repealed September 6, 2004 1999. 15 (Source: P.A. 88-597, eff. 8-28-94.) 16 ARTICLE 20 17 Section 20-1. Short Title. This Article may be cited as 18 the State and Regional Development Strategy Act. 19 Section 20-5. Purpose. The General Assembly finds that 20 an essential step to assist the Illinois economy, both on a 21 statewide and on a local level, to respond to increasingly 22 competitive global conditions and economic trends is to 23 establish a consensus on a long-term economic development 24 strategy that recognizes both the competitive position of the 25 State's regions and needs of commerce and industry. A unique 26 partnership between State and local development groups and 27 between the private and public sectors can set a 28 comprehensive and responsive agenda of community improvement 29 and community economic development. SB40 Engrossed -71- LRB9101877PTmb 1 Section 20-10. Strategic Planning. The Department of 2 Commerce and Community Affairs has the following powers: 3 By no later than February 1, 2000, the Department shall 4 prepare an economic development strategy for Illinois for the 5 period beginning on July 1, 2000 and ending on June 30, 2005, 6 and for the 4 years next ensuing. By no later than February 7 1, 2000 and annually thereafter, the Department shall make 8 modifications in the economic development strategy for the 4 9 years beginning on the next ensuing July 1 as the 10 modifications are warranted by changes in economic conditions 11 or by other factors, including changes in policy, and shall 12 prepare an economic development strategy for the fifth year 13 beginning after the next ensuing July 1. In preparing the 14 strategy and in making modifications to the strategy, the 15 Department shall take cognizance of the special economic 16 attributes of the various component areas of the State. 17 (1) The "component areas" shall be determined by the 18 Department after a county by county economic analysis and 19 shall group counties that are close in geographical 20 proximity and share common economic traits such as labor 21 market areas. 22 (2) The strategy shall recommend specific 23 legislative, administrative, and programmatic action at 24 both the State and area level for promoting sustained 25 economic growth at or above national rates of economic 26 growth while keeping the rate of unemployment below 27 national levels of unemployment. 28 (3) The strategy shall include an assessment of 29 historical patterns of economic activity for the State as 30 a whole and by area, and projections of future economic 31 trends for the State as a whole and by area. National 32 economic trends and projections shall be considered in 33 the formulation of the State and area projections. All 34 assumptions made in the formulation of the State and area SB40 Engrossed -72- LRB9101877PTmb 1 projections shall be clearly and explicitly set forth in 2 the strategy. 3 (4) The strategy shall identify, for each area, 4 those community economic improvement characteristics that 5 most likely will influence whether the area will exceed 6 or fall below the rate of overall State economic growth. 7 (5) The strategy shall recommend programmatic action 8 to be taken to foster and promote economic growth in 9 specific areas, taking into account the resources and 10 economic factors indigenous to the areas. 11 (A) The strategy shall identify for the State 12 and each region the critical business development 13 approaches being considered or to be considered. 14 The approaches may include, but are not limited to: 15 investment recruitment, such as industry attraction, 16 expansion and retention; trade development efforts 17 including international trade, support for small 18 businesses' efforts to export products and services, 19 tourism attraction and development including 20 cultural tourism; technology development efforts 21 including technology commercialization and 22 manufacturing modernization; and business 23 development efforts, including entrepreneurship and 24 entrepreneurial education, small business management 25 assistance, and business financing. 26 (B) The strategy shall identify for the State 27 and each region the critical workforce training and 28 development being considered or to be considered. 29 The approaches may include, but are not limited to: 30 customized job training, retraining and skill 31 upgrading, economic adjustment, job creation and 32 addressing labor shortages in areas of high demand; 33 the market for and quality of the local labor force; 34 the quality of the education and workforce SB40 Engrossed -73- LRB9101877PTmb 1 infrastructure; and related issues. 2 (C) The strategy shall identify for the State 3 and each region the critical community development 4 approaches being considered or to be considered. 5 The approaches may include, but are not limited to: 6 community growth management such as regional 7 planning and smart growth; area revitalization 8 including brownfields redevelopment and facility 9 reuse; and family self-sufficiency such as through 10 housing conservation and economic opportunity. 11 (D) The strategy shall identify for the State 12 and each region the critical public facilities 13 development approaches being considered or to be 14 considered. The approaches may include, but are not 15 limited to: local public services; the local, 16 regional, and State tax and regulatory climate; the 17 physical infrastructure, including communications 18 and transportation systems; the capacity of area 19 utilities; and the quality of public institutions 20 such as schools. 21 (E) The strategy shall identify for the State 22 and each region the other critical marketplace 23 systems, including: the financial marketplace; the 24 competitive advantages of the area in terms of 25 natural resources, capital resources or technology 26 resources; and other factors affecting area 27 development. 28 (6) In preparing the strategy or modifications to 29 the strategy, the Department shall work with State 30 agencies, boards, and commissions whose programs and 31 activities significantly affect economic activity in the 32 State including the Illinois Development Finance 33 Authority, the Department of Revenue, the Department of 34 Transportation, the Department of Employment Security, SB40 Engrossed -74- LRB9101877PTmb 1 the Department of Agriculture, the Department of Natural 2 Resources, the Environmental Protection Agency, and other 3 agencies, boards, or commissions as appropriate. The 4 Directors of the agencies, boards, and commissions shall 5 provide the assistance to the Department as the Governor 6 deems appropriate. 7 (7) In preparing the strategies for the component 8 areas, the Department shall consult with local and 9 regional economic development organizations, local 10 elected officials, community-based organizations, service 11 delivery providers, and other organizations whose 12 programs and activities significantly affect economic 13 activity in the area. 14 (8) In preparing the economic development strategy, 15 the Department shall take into consideration any 16 decisions or recommendations related to programs, 17 services, and government regulations contained in the 18 strategy that have been rendered as a result of a 19 Statewide Performance Review. 20 (9) The strategy shall be presented to the Governor, 21 the President and Minority Leader of the Senate, the 22 Speaker and Minority Leader of the House of 23 Representatives, the members of the Illinois Economic 24 Development Board, and the Chair of the Economic and 25 Fiscal Commission on February 1, 2000 and annually 26 thereafter. 27 (10) The strategy shall be published and made 28 available to the public in both paper and electronic 29 media. 30 (20 ILCS 605/46.44 rep.) 31 Section 20-105. The Civil Administrative Code of 32 Illinois is amended by repealing Section 46.44. SB40 Engrossed -75- LRB9101877PTmb 1 ARTICLE 999. 2 Section 999-1. Effective date. This Act takes effect 3 upon becoming law.
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