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Public Act 91-0476
SB40 Enrolled LRB9101877PTmb
AN ACT concerning economic development.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
ARTICLE 5.
Section 5-1. Short title. This Article may be cited as
the Economic Development for a Growing Economy Tax Credit
Act.
Section 5-3. Purpose. The General Assembly finds that
the Illinois economy, although currently strong, is still
highly vulnerable to other states and nations that have major
financial incentive programs for medium-sized and large firm
relocations. Because of the incentive programs of these
competitor locations, Illinois must move aggressively with
new business development investment tools so that Illinois is
more competitive in site location decision-making. The State
must not only continue to work with firms to help them locate
their new plants and facilities in Illinois but also must
provide competitive investment location tax credits in
support of the location and expansion of medium-sized and
large operations of commerce and industry. In an increasingly
global economy, Illinois' long-term development would benefit
from rational, strategic use of State resources in support of
business development and growth.
Section 5-5. Definitions. As used in this Act:
"Agreement" means the Agreement between a Taxpayer and
the Department under the provisions of Section 5-50 of this
Act.
"Applicant" means a Taxpayer that is operating a business
located or that the Taxpayer plans to locate within the State
of Illinois and that is engaged in interstate or intrastate
commerce for the purpose of manufacturing, processing,
assembling, warehousing, or distributing products, conducting
research and development, providing tourism services, or
providing services in interstate commerce, office industries,
or agricultural processing, but excluding retail, retail
food, health, or professional services. "Applicant" does not
include a Taxpayer who closes or substantially reduces an
operation at one location in the State and relocates
substantially the same operation to another location in the
State. This does not prohibit a Taxpayer from expanding its
operations at another location in the State, provided that
existing operations of a similar nature located within the
State are not closed or substantially reduced. This also does
not prohibit a Taxpayer from moving its operations from one
location in the State to another location in the State for
the purpose of expanding the operation provided that the
Department determines that expansion cannot reasonably be
accommodated within the municipality in which the business is
located, or in the case of a business located in an
incorporated area of the county, within the county in which
the business is located, after conferring with the chief
elected official of the municipality or county and taking
into consideration any evidence offered by the municipality
or county regarding the ability to accommodate expansion
within the municipality or county.
"Committee" means the Illinois Business Investment
Committee created under Section 5-25 of this Act within the
Illinois Economic Development Board.
"Credit" means the amount agreed to between the
Department and Applicant under this Act, but not to exceed
the Incremental Income Tax attributable to the Applicant's
project.
"Department" means the Department of Commerce and
Community Affairs.
"Director" means the Director of Commerce and Community
Affairs.
"Full-time Employee" means an individual who is employed
for consideration for at least 35 hours each week or who
renders any other standard of service generally accepted by
industry custom or practice as full-time employment.
"Incremental Income Tax" means the total amount withheld
during the taxable year from the compensation of New
Employees under Article 7 of the Illinois Income Tax Act
arising from employment at a project that is the subject of
an Agreement.
"New Employee" means:
(a) A Full-time Employee first employed by a
Taxpayer in the project that is the subject of an
Agreement and who is hired after the Taxpayer enters into
the tax credit Agreement.
(b) The term "New Employee" does not include:
(1) an employee of the Taxpayer who performs a
job that was previously performed by another
employee, if that job existed for at least 6 months
before hiring the employee;
(2) an employee of the Taxpayer who was
previously employed in Illinois by a Related Member
of the Taxpayer and whose employment was shifted to
the Taxpayer after the Taxpayer entered into the tax
credit Agreement; or
(3) a child, grandchild, parent, or spouse,
other than a spouse who is legally separated from
the individual, of any individual who has a direct
or an indirect ownership interest of at least 5% in
the profits, capital, or value of the Taxpayer.
(c) Notwithstanding paragraph (1) of subsection
(b), an employee may be considered a New Employee under
the Agreement if the employee performs a job that was
previously performed by an employee who was:
(1) treated under the Agreement as a New
Employee; and
(2) promoted by the Taxpayer to another job.
(d) Notwithstanding subsection (a), the Department
may award Credit to an Applicant with respect to an
employee hired prior to the date of the Agreement if:
(1) the Applicant is in receipt of a letter
from the Department stating an intent to enter into
a credit Agreement;
(2) the letter described in paragraph (1) is
issued by the Department not later than 15 days
after the effective date of this Act; and
(3) the employee was hired after the date the
letter described in paragraph (1) was issued.
"Noncompliance Date" means, in the case of a Taxpayer
that is not complying with the requirements of the Agreement
or the provisions of this Act, the day following the last
date upon which the Taxpayer was in compliance with the
requirements of the Agreement and the provisions of this Act,
as determined by the Director, pursuant to Section 5-65.
"Pass Through Entity" means an entity that is exempt from
the tax under subsection (b) or (c) of Section 205 of the
Illinois Income Tax Act.
"Related Member" means a person that, with respect to the
Taxpayer during any portion of the taxable year, is any one
of the following:
(1) An individual stockholder, if the stockholder
and the members of the stockholder's family (as defined
in Section 318 of the Internal Revenue Code) own
directly, indirectly, beneficially, or constructively, in
the aggregate, at least 50% of the value of the
Taxpayer's outstanding stock.
(2) A partnership, estate, or trust and any partner
or beneficiary, if the partnership, estate, or trust, and
its partners or beneficiaries own directly, indirectly,
beneficially, or constructively, in the aggregate, at
least 50% of the profits, capitol, stock, or value of the
Taxpayer.
(3) A corporation, and any party related to the
corporation in a manner that would require an attribution
of stock from the corporation to the party or from the
party to the corporation under the attribution rules of
Section 318 of the Internal Revenue Code, if the Taxpayer
owns directly, indirectly, beneficially, or
constructively at least 50% of the value of the
corporation's outstanding stock.
(4) A corporation and any party related to that
corporation in a manner that would require an attribution
of stock from the corporation to the party or from the
party to the corporation under the attribution rules of
Section 318 of the Internal Revenue Code, if the
corporation and all such related parties own in the
aggregate at least 50% of the profits, capital, stock, or
value of the Taxpayer.
(5) A person to or from whom there is attribution
of stock ownership in accordance with Section 1563(e) of
the Internal Revenue Code, except, for purposes of
determining whether a person is a Related Member under
this paragraph, 20% shall be substituted for 5% wherever
5% appears in Section 1563(e) of the Internal Revenue
Code.
"Taxpayer" means an individual, corporation, partnership,
or other entity that has any Illinois Income Tax liability.
Section 5-10. Powers of the Department. The
Department, in addition to those powers granted under the
Civil Administrative Code of Illinois, is granted and shall
have all the powers necessary or convenient to carry out and
effectuate the purposes and provisions of this Act,
including, but not limited to, power and authority to:
(a) Promulgate procedures, rules, or regulations deemed
necessary and appropriate for the administration of the
programs; establish forms for applications, notifications,
contracts, or any other agreements; and accept applications
at any time during the year.
(b) Provide and assist Taxpayers pursuant to the
provisions of this Act, and cooperate with Taxpayers that are
parties to Agreements to promote, foster, and support
economic development, capital investment, and job creation or
retention within the State.
(c) Enter into agreements and memoranda of understanding
for participation of and engage in cooperation with agencies
of the federal government, local units of government,
universities, research foundations or institutions, regional
economic development corporations, or other organizations for
the purposes of this Act.
(d) Gather information and conduct inquiries, in the
manner and by the methods as it deems desirable, including
without limitation, gathering information with respect to
Applicants for the purpose of making any designations or
certifications necessary or desirable or to gather
information to assist the Committee with any recommendation
or guidance in the furtherance of the purposes of this Act.
(e) Establish, negotiate and effectuate any term,
agreement or other document with any person, necessary or
appropriate to accomplish the purposes of this Act; and to
consent, subject to the provisions of any Agreement with
another party, to the modification or restructuring of any
Agreement to which the Department is a party.
(f) Fix, determine, charge, and collect any premiums,
fees, charges, costs, and expenses from Applicants,
including, without limitation, any application fees,
commitment fees, program fees, financing charges, or
publication fees as deemed appropriate to pay expenses
necessary or incident to the administration, staffing, or
operation in connection with the Department's or Committee's
activities under this Act, or for preparation,
implementation, and enforcement of the terms of the
Agreement, or for consultation, advisory and legal fees, and
other costs; however, all fees and expenses incident thereto
shall be the responsibility of the Applicant.
(g) Provide for sufficient personnel to permit
administration, staffing, operation, and related support
required to adequately discharge its duties and
responsibilities described in this Act from funds made
available through charges to Applicants or from funds as may
be appropriated by the General Assembly for the
administration of this Act.
(h) Require Applicants, upon written request, to issue
any necessary authorization to the appropriate federal,
state, or local authority for the release of information
concerning a project being considered under the provisions of
this Act, with the information requested to include, but not
be limited to, financial reports, returns, or records
relating to the Taxpayers' or its project.
(i) Require that a Taxpayer shall at all times keep
proper books of record and account in accordance with
generally accepted accounting principles consistently
applied, with the books, records, or papers related to the
Agreement in the custody or control of the Taxpayer open for
reasonable Department inspection and audits, and including,
without limitation, the making of copies of the books,
records, or papers, and the inspection or appraisal of any of
the Taxpayer or project assets.
(j) Take whatever actions are necessary or appropriate
to protect the State's interest in the event of bankruptcy,
default, foreclosure, or noncompliance with the terms and
conditions of financial assistance or participation required
under this Act, including the power to sell, dispose, lease,
or rent, upon terms and conditions determined by the Director
to be appropriate, real or personal property that the
Department may receive as a result of these actions.
Section 5-15. Tax Credit Awards. Subject to the
conditions set forth in this Act, a Taxpayer is entitled to a
Credit against taxes imposed pursuant to subsections (a) and
(b) of Section 201 of the Illinois Income Tax Act that may be
imposed on the Taxpayer for a taxable year beginning on or
after January 1, 1999, if the Taxpayer is awarded a Credit by
the Department under this Act for that taxable year.
(a) The Department shall make Credit awards under this
Act to foster job creation and retention in Illinois.
(b) A person that proposes a project to create new jobs
in Illinois must enter into an Agreement with the Department
for the Credit under this Act.
(c) The Credit shall be claimed for the taxable years
specified in the Agreement.
(d) The Credit shall not exceed the Incremental Income
Tax attributable to the project that is the subject of the
Agreement.
Section 5-20. Application for a project to create and
retain new jobs.
(a) Any Taxpayer proposing a project located or planned
to be located in Illinois may request consideration for
designation of its project, by formal written letter of
request or by formal application to the Department, in which
the Applicant states its intent to make at least a specified
level of investment and intends to hire or retain a specified
number of full-time employees at a designated location in
Illinois. As circumstances require, the Department may
require a formal application from an Applicant and a formal
letter of request for assistance.
(b) In order to qualify for Credits under this Act, an
Applicant's project must:
(1) involve an investment of at least $5,000,000 in
capital improvements to be placed in service and to
employ at least 25 New Employees within the State as a
direct result of the project; or
(2) involve an investment of at least an amount (to
be expressly specified by the Department and the
Committee) in capital improvements to be placed in
service and will employ at least an amount (to be
expressly specified by the Department and the Committee)
of New Employees within the State, provided that the
Department and the Committee have determined that the
project will provide a substantial economic benefit to
the State.
(c) After receipt of an application, the Department may
enter into an Agreement with the Applicant if the application
is accepted in accordance with Section 5-25.
Section 5-25. Review of Application.
(a) In addition to those duties granted under the
Illinois Economic Development Board Act, the Illinois
Economic Development Board shall form a Business Investment
Committee for the purpose of making recommendations for
applications. At the request of the Board, the Director of
Commerce and Community Affairs or his or her designee, the
Director of the Bureau of the Budget or his or her designee,
the Director of Revenue or his or her designee, the Director
of Employment Security or his or her designee, and an elected
official of the affected locality, such as the chair of the
county board or the mayor, may serve as members of the
Committee to assist with its analysis and deliberations.
(b) At the Department's request, the Committee shall
convene, make inquiries, and conduct studies in the manner
and by the methods as it deems desirable, review information
with respect to Applicants, and make recommendations for
projects to benefit the State. In making its recommendation
that an Applicant's application for Credit should or should
not be accepted, which shall occur within a reasonable time
frame as determined by the nature of the application, the
Committee shall determine that all the following conditions
exist:
(1) The Applicant's project intends, as required by
subsection (b) of Section 5-20 to make the required
investment in the State and intends to hire the required
number of New Employees in Illinois as a result of that
project.
(2) The Applicant's project is economically sound
and will benefit the people of the State of Illinois by
increasing opportunities for employment and strengthen
the economy of Illinois.
(3) That, if not for the Credit, the project would
not occur in Illinois, which may be demonstrated by any
means including, but not limited to, evidence the
Applicant has multi-state location options and could
reasonably and efficiently locate outside of the State,
or demonstration that at least one other state is being
considered for the project, or evidence the receipt of
the Credit is a major factor in the Applicant's decision
and that without the Credit, the Applicant likely would
not create new jobs in Illinois, or demonstration that
receiving the Credit is essential to the Applicant's
decision to create or retain new jobs in the State.
(4) A cost differential is identified, using best
available data, in the projected costs for the
Applicant's project compared to the costs in the
competing state, including the impact of the competing
state's incentive programs. The competing state's
incentive programs shall include state, local, private,
and federal funds available.
(5) The political subdivisions affected by the
project have committed local incentives with respect to
the project, considering local ability to assist.
(6) Awarding the Credit will result in an overall
positive fiscal impact to the State, as certified by the
Committee using the best available data.
(7) The Credit is not prohibited by Section 5-35 of
this Act.
Section 5-30. Limitation to amount of costs of specified
items. The total amount of the Credit allowed during all tax
years may not exceed the aggregate amount of costs incurred
by the Taxpayer during all prior tax years for the following
items, to the extent provided in the Agreement:
(1) capital investment, including, but not limited
to, equipment, buildings, or land;
(2) infrastructure development;
(3) debt service, except refinancing of current
debt;
(4) research and development;
(5) job training and education;
(6) lease costs; or
(7) relocation costs.
Section 5-35. Relocation of jobs in Illinois. A
Taxpayer is not entitled to claim the Credit provided by this
Act with respect to any jobs that the Taxpayer relocates from
one site in Illinois to another site in Illinois.
Determinations under this Section shall be made by the
Department.
Section 5-40. Determination of Amount of the Credit. In
determining the amount of the Credit that should be awarded,
the Committee shall provide guidance on, and the Department
shall take into consideration, the following factors:
(1) The number and location of jobs created and
retained in relation to the economy of the county where
the projected investment is to occur.
(2) The potential impact on the economy of
Illinois.
(3) The magnitude of the cost differential between
Illinois and the competing state.
(4) The incremental payroll attributable to the
project.
(5) The capital investment attributable to the
project.
(6) The amount of the average wage and benefits
paid by the Applicant in relation to the wage and
benefits of the area of the project.
(7) The costs to Illinois and the affected
political subdivisions with respect to the project.
(8) The financial assistance that is otherwise
provided by Illinois and the affected political
subdivisions.
Section 5-45. Amount and duration of the Credit. The
Department shall determine the amount and duration of the
Credit awarded under this Act. The duration of the Credit may
not exceed 10 taxable years. The Credit may be stated as a
percentage of the Incremental Income Tax attributable to the
Applicant's project and may include a fixed dollar
limitation.
Section 5-50. Contents of Agreements with Applicants.
The Department shall enter into an Agreement with an
Applicant that is awarded a Credit under this Act. The
Agreement must include all of the following:
(1) A detailed description of the project that is
the subject of the Agreement, including the location and
amount of the investment and jobs created or retained.
(2) The duration of the Credit and the first
taxable year for which the Credit may be claimed.
(3) The Credit amount that will be allowed for each
taxable year.
(4) A requirement that the Taxpayer shall maintain
operations at the project location that shall be stated
as a minimum number of years not to exceed 10.
(5) A specific method for determining the number of
New Employees employed during a taxable year.
(6) A requirement that the Taxpayer shall annually
report to the Department the number of New Employees, the
Incremental Income Tax withheld in connection with the
New Employees, and any other information the Director
needs to perform the Director's duties under this Act.
(7) A requirement that the Director is authorized
to verify with the appropriate State agencies the amounts
reported under paragraph (6), and after doing so shall
issue a certificate to the Taxpayer stating that the
amounts have been verified.
(8) A requirement that the Taxpayer shall provide
written notification to the Director not more than 30
days after the Taxpayer makes or receives a proposal that
would transfer the Taxpayer's State tax liability
obligations to a successor Taxpayer.
(9) A detailed description of the number of New
Employees to be hired, and the occupation and payroll of
the full-time jobs to be created or retained as a result
of the project.
(10) The minimum investment the business enterprise
will make in capital improvements, the time period for
placing the property in service, and the designated
location in Illinois for the investment.
(11) A requirement that the Taxpayer shall provide
written notification to the Director and the Committee
not more than 30 days after the Taxpayer determines that
the minimum job creation or retention, employment
payroll, or investment no longer is being or will be
achieved or maintained as set forth in the terms and
conditions of the Agreement.
(12) A provision that, if the total number of New
Employees falls below a specified level, the allowance of
Credit shall be suspended until the number of New
Employees equals or exceeds the Agreement amount.
(13) A detailed description of the items for which
the costs incurred by the Taxpayer will be included in
the limitation on the Credit provided in Section 5-30.
(14) Any other performance conditions or contract
provisions as the Department determines are appropriate.
Section 5-55. Certificate of verification; submission to
the Department of Revenue. A Taxpayer claiming a Credit
under this Act shall submit to the Department of Revenue a
copy of the Director's certificate of verification under this
Act for the taxable year. However, failure to submit a copy
of the certificate with the Taxpayer's tax return shall not
invalidate a claim for a Credit.
For a Taxpayer to be eligible for a certificate of
verification, the Taxpayer shall provide proof as required by
the Department prior to the end of each calendar year,
including, but not limited to, attestation by the Taxpayer
that:
(1) The project has substantially achieved the
level of new full-time jobs specified in its Agreement.
(2) The project has substantially achieved the
level of annual payroll in Illinois specified in its
Agreement.
(3) The project has substantially achieved the
level of capital investment in Illinois specified in its
Agreement.
Section 5-60. Pass through entity.
(a) The shareholders or partners of a Taxpayer that is a
Pass Through Entity shall be entitled to the Credit allowed
under the Agreement.
(b) The Credit provided under subsection (a) is in
addition to any Credit to which a shareholder or partner is
otherwise entitled under a separate Agreement under this Act.
A Pass Through Entity and a shareholder or partner of the
Pass Through Entity may not claim more than one Credit under
the same Agreement.
Section 5-65. Noncompliance; notice; assessment. If the
Director determines that a Taxpayer who has received a Credit
under this Act is not complying with the requirements of the
Agreement or all of the provisions of this Act, the Director
shall provide notice to the Taxpayer of the alleged
noncompliance, and allow the Taxpayer a hearing under the
provisions of the Illinois Administrative Procedure Act. If,
after such notice and any hearing, the Director determines
that a noncompliance exists, the Director shall issue to the
Department of Revenue notice to that effect, stating the
Noncompliance Date.
Section 5-70. Annual report. On or before July 1 each
year, the Committee shall submit a report to the Department
on the tax credit program under this Act to the Governor and
the General Assembly. The report shall include information on
the number of Agreements that were entered into under this
Act during the preceding calendar year, a description of the
project that is the subject of each Agreement, an update on
the status of projects under Agreements entered into before
the preceding calendar year, and the sum of the Credits
awarded under this Act. A copy of the report shall be
delivered to the Governor and to each member of the General
Assembly.
Section 5-75. Evaluation of tax credit program. On a
biennial basis, the Department shall evaluate the tax credit
program. The evaluation shall include an assessment of the
effectiveness of the program in creating new jobs in Illinois
and of the revenue impact of the program, and may include a
review of the practices and experiences of other states with
similar programs. The Director shall submit a report on the
evaluation to the Governor and the General Assembly after
June 30 and before November 1 in each odd-numbered year.
Section 5-80. Adoption of rules. The Department may
adopt rules necessary to implement this Act. The rules may
provide for recipients of Credits under this Act to be
charged fees to cover administrative costs of the tax credit
program. Fees collected shall be deposited into the Economic
Development for a Growing Economy Fund.
Section 5-85. The Economic Development for a Growing
Economy Fund.
(a) The Economic Development for a Growing Economy Fund
is established to be used exclusively for the purposes of
this Act, including paying for the costs of administering
this Act. The Fund shall be administered by the Department.
(b) The Fund consists of collected fees, appropriations
from the General Assembly, and gifts and grants to the Fund.
(c) The State Treasurer shall invest the money in the
Fund not currently needed to meet the obligations of the Fund
in the same manner as other public funds may be invested.
Interest that accrues from these investments shall be
deposited into the Fund.
(d) The money in the Fund at the end of a State fiscal
year remains in the Fund to be used exclusively for the
purposes of this Act. Expenditures from the Fund are subject
to appropriation by the General Assembly.
Section 5-90. Program Terms and Conditions.
(a) Any documentary materials or data made available or
received by any member of a Committee or any agent or
employee of the Department shall be deemed confidential and
shall not be deemed public records to the extent that the
materials or data consists of trade secrets, commercial or
financial information regarding the operation of the business
conducted by the Applicant for or recipient of any tax credit
under this Act, or any information regarding the competitive
position of a business in a particular field of endeavor.
(b) Nothing in this Act shall be construed as creating
any rights in any Applicant to enter into an Agreement or in
any person to challenge the terms of any Agreement.
Section 5-105. The Civil Administrative Code of Illinois
is amended by changing Section 46.62 as follows:
(20 ILCS 605/46.62) (from Ch. 127, par. 46.62)
Sec. 46.62. To establish and administer a Technology
Challenge Grant Program and an Illinois Advanced Technology
Enterprise Development and Investment Program as provided by
the Technology Advancement and Development Act and to expend
appropriations in accordance therewith.
(Source: P.A. 86-870; 86-1028.)
Section 5-110. The State Finance Act is amended by
adding Section 5.490 as follows:
(30 ILCS 105/5.490 new)
Sec. 5.490. The Economic Development for a Growing
Economy Fund.
Section 5-115. The Illinois Income Tax Act is amended by
adding Section 211 as follows:
(35 ILCS 5/211 new)
Sec. 211. Economic Development for a Growing Economy Tax
Credit. For tax years beginning on or after January 1, 1999,
a Taxpayer who has entered an Agreement under the Economic
Development for a Growing Economy Tax Credit Act is entitled
to a credit against the taxes imposed under subsections (a)
and (b) of Section 201 of this Act in an amount to be
determined in the Agreement. If the Taxpayer is a partnership
or Subchapter S corporation, the credit shall be allowed to
the partners or shareholders in accordance with the
determination of income and distributive share of income
under Sections 702 and 704 and subchapter S of the Internal
Revenue Code. The Department, in cooperation with the
Department of Commerce and Community Affairs, shall prescribe
rules to enforce and administer the provisions of this
Section. This Section is exempt from the provisions of
Section 250 of this Act.
The credit shall be subject to the conditions set forth
in the Agreement and the following limitations:
(1) The tax credit shall not exceed the Incremental
Income Tax (as defined in Section 5-5 of the Economic
Development for a Growing Economy Tax Credit Act) with
respect to the project.
(2) The amount of the credit allowed during the tax
year plus the sum of all amounts allowed in prior years
shall not exceed 100% of the aggregate amount expended by
the Taxpayer during all prior tax years on approved costs
defined by Agreement.
(3) The amount of the credit shall be determined on
an annual basis; however, the credit against any State
tax liability may not extend beyond 10 taxable years
after the project is first approved and may not extend
beyond the expiration of the Agreement.
(4) The credit may not exceed the amount of taxes
imposed pursuant to subsections (a) and (b) of Section
201 of this Act. Any credit that is unused in the year
the credit is computed may be carried forward and applied
to the tax liability of the 5 taxable years following the
excess credit year. The credit shall be applied to the
earliest year for which there is a tax liability. If
there are credits from more than one tax year that are
available to offset a liability, the earlier credit shall
be applied first.
(5) No credit shall be allowed with respect to any
Agreement for any taxable year ending after the
Noncompliance Date. Upon receiving notification by the
Department of Commerce and Community Affairs of the
noncompliance of a Taxpayer with an Agreement, the
Department shall notify the Taxpayer that no credit is
allowed with respect to that Agreement for any taxable
year ending after the Noncompliance Date, as stated in
such notification. If any credit has been allowed with
respect to an Agreement for a taxable year ending after
the Noncompliance Date for that Agreement, any refund
paid to the Taxpayer for that taxable year shall, to the
extent of that credit allowed, be an erroneous refund
within the meaning of Section 912 of this Act.
(6) For purposes of this Section, the terms
"Agreement", "Incremental Income Tax", and
"Noncompliance Date" have the same meaning as when used
in the Economic Development for a Growing Economy Tax
Credit Act.
Section 5-120. The Technology Advancement and
Development Act is amended by changing Sections 1002, 1003,
1004, 2001, 2002, 2003, the Article 3 heading, Sections 3001,
3002, 3003, 3004.5 and 4003 and adding the Article 3.5
heading and Sections 3501, 3505, 3510, 3515, 3520, 3525, and
3530 as follows:
(20 ILCS 700/1002) (from Ch. 127, par. 3701-2)
Sec. 1002. Findings and declaration of policy. The
General Assembly hereby finds that numerous economic
challenges confront the State, including dramatic increases
in foreign productivity and global market competition which
have forced a retrenchment in key business sectors and a
reduction in high paying manufacturing jobs which threaten to
undermine Illinois' standard of living and quality of life.
In order to avoid economic stagnation and decline, Illinois
must keep pace with the global revolution in manufacturing
technology that is occurring in virtually every major
industrialized nation competing in the international
marketplace.
The General Assembly further finds that an appropriate
economic response would require increasing the level of
investment in research and development; utilizing industry,
State and local government, and labor, and academia to create
state-wide programs; and fostering an improved environment
for productivity and technological competitiveness. These
various programs would utilize Illinois' present resources in
many developing areas including health care and biomedical
research, information and telecommunications, computing and
electronic equipment, manufacturing technologies and
materials research, transportation and aerospace, geoscience,
financial and service industries, and agriculture and
biotechnology.
It is the purpose of this Act to identify, develop and
commercialize technology which will permit Illinois firms to
successfully compete in today's world markets, and to
authorize State and local government to promote
systematically, within the provisions of this Act, those
private sector and nonprofit research institution efforts
that will serve as intermediaries to achieve the programs
authorized under this Act; and continue to insure Illinois'
economic vitality and competitiveness through (i)
commercialization of new technology products; (ii)
modernization of services by technology enterprises; and
(iii) modernization of the industrial base of small and
medium-sized manufacturers.
(Source: P.A. 86-870.)
(20 ILCS 700/1003) (from Ch. 127, par. 3701-3)
Sec. 1003. Definitions. The following words and
phrases, for the purposes of this Act, shall have the
meanings respectively ascribed to them, except when the
context otherwise requires, or except as otherwise provided
in this Act:
(a) "Advanced technology project" means any area of
basic or applied research or development which is designed to
foster greater knowledge or understanding, or which is
designed for the purposes of improving, designing,
developing, prototyping, producing or commercializing new
products, techniques, processes or technical devices in
present or emerging fields of health care and biomedical
research, information and communication systems, computing
and computer services, electronics, manufacturing, robotics
and materials research, transportation and aerospace,
agriculture and biotechnology, and finance and services.
(b) "Business expense" includes working capital
financing, the purchase or lease of machinery and equipment,
or the lease or purchase of real property, including
construction, renovation, or leasehold improvements, but does
not include refinancing current debt.
(c) "Business project" means any specific economic
development activity of a commercial, industrial,
manufacturing, agricultural, scientific, financial, service
or other not-for-profit nature, which is expected to yield an
increase in jobs or to result in the retention of jobs or an
improvement in production efficiency.
(d) "Department" means the Illinois Department of
Commerce and Community Affairs.
(e) "Director" means the Director of the Illinois
Department of Commerce and Community Affairs.
(f) "Financial assistance" means a loan, investment,
grant or the purchase of qualified securities or other means
whereby financial aid is made to or on behalf of a business
project or advanced technology project.
"Intermediary organization" means any participating
organization including not-for-profit entities, for-profit
entities, State development authorities, institutions of
higher education, other public or private corporations, which
may include the Illinois Coalition, or other entities
necessary or desirable to further the purpose of this Act
engaged by the Department through any contract, agreement,
memoranda of understanding, or other cooperative arrangement
to deliver programs authorized under this Act.
"Investment loan" means any loan structured so that the
applicant repays the principal and interest and provides a
qualified security investment to serve both as additional
loan security and as an additional source of repayment.
(g) "Loan" means acceptance of any note, bond,
debenture, or evidence of indebtedness, whether unsecured or
secured by a mortgage, pledge, deed of trust, or other lien
on any property, or any certificate of, receipt for,
participation in, or an option to any of the foregoing. A
loan shall bear such interest rate, with such terms of
repayment, secured by such collateral, with other terms and
conditions, as the Department shall deem necessary or
appropriate.
(h) "Participating lender or investor" means any trust
company, bank, savings bank, credit union, merchant bank,
investment bank, broker, investment trust, pension fund,
building and loan association, savings and loan association,
insurance company, venture capital company or other
institution, community or State development corporation,
development authority authorized to do business by an Act of
this State, or other public or private financing intermediary
approved by the Department whose purposes include financing,
promoting, or encouraging economic development financing.
(i) "Qualified security investments" means any stock,
convertible security, treasury stock, limited partnership
interest, certificate of interest or participation in any
profit sharing agreement, preorganization certificate or
subscription, transferable share, investment contract,
certificate of interest or participation in a patent or
application or, in general, any interest or instrument
commonly known as a "security" or any certificate for,
receipt for, guarantee of, or option, warrant or right to
subscribe to or purchase any of the foregoing, but not
including any instrument which contains voting rights or
which can be converted to contain voting rights in the
possession of the Department.
(Source: P.A. 88-453.)
(20 ILCS 700/1004) (from Ch. 127, par. 3701-4)
Sec. 1004. Duties and powers. The Department of
Commerce and Community Affairs shall establish and administer
any of the programs authorized under this Act subject to the
availability of funds appropriated by the General Assembly.
The Department may a Challenge Grant Program and an Advanced
Technology Investment Program and shall make awards from
general revenue fund appropriations, federal reimbursement
funds, the Technology Cooperation Fund, and the New
Technology Recovery Fund as provided under the provisions of
this Act. The Department, in addition to those powers
granted under The Civil Administrative Code of Illinois, is
granted the following powers to help administer the
provisions of this Act:
(a) To provide financial assistance as direct or
participation grants, loans or qualified security investments
to, or on behalf of, eligible applicants. Loans, grants and
investments shall be made for the purpose of increasing
research and development, commercializing technology,
adopting advanced production and processing techniques, and
promoting job creation and retention within Illinois;
(b) To enter into agreements, accept funds or grants,
and engage in cooperation with agencies of the federal
government, local units of government, universities, research
foundations or institutions, regional economic development
corporations or other organizations for the purposes of this
Act;
(c) To enter into contracts, and letter of credit
agreements, and memoranda of understanding; and to provide
funds for participation agreements or to make any other
agreements or contracts or to invest, grant, or loan funds to
any participating intermediary organizations including,
not-for-profit entities, for-profit entities, State agencies
or authorities, government owned and contract operated
facilities, institutions of higher education, other lender,
private investor, public or private development corporations
corporation, or other entities entity necessary or desirable
to further the purpose of this Act. Any such agreement or
contract by an intermediary organization to deliver programs
authorized under this Act may include terms and provisions
including, but not limited to organization and development of
documentation, review and approval of projects, servicing and
disbursement of funds and other related activities;
(d) To fix, determine, charge and collect any premiums,
fees, charges, costs and expenses, including without
limitation, any application fees, commitment fees, program
fees, financing charges, or publication fees in connection
with the Department's activities under this Act;
(e) To establish forms for applications, notifications,
contracts, or any other agreements, and to promulgate
procedures, rules or regulations deemed necessary and
appropriate;
(f) To establish and regulate the terms and conditions
of the Department's agreements and to consent, subject to the
provisions of any agreement with another party, to the
modification or restructuring of any agreement to which the
Department is a party;
(g) To require that recipients of financial assistance
shall at all times keep proper books of record and account in
accordance with generally accepted accounting principles
consistently applied, with such books open for reasonable
Department inspection and audits, including, without
limitation, the making of copies thereof;
(h) To require applicants or grantees receiving funds
under this Act to permit the Department to: (i) inspect and
audit any books, records or papers related to the project in
the custody or control of the applicant, including the making
of copies or extracts thereof, and (ii) inspect or appraise
any of the applicant's or grantee's business assets;
(i) To require applicants or grantees, upon written
request by the Department, to issue any necessary
authorization to the appropriate federal, State or local
authority for the release of information concerning a
business or business project financed under the provisions of
this Act, with the information requested to include, but not
be limited to, financial reports, returns, or records
relating to that business or business project;
(i-5) To provide staffing, administration, and related
support required to manage the programs authorized under this
Act and to pay for staffing and administration from the New
Technology Recovery Fund as appropriated by the General
Assembly. Administrative responsibilities may include, but
are not limited to, research and identification of the needs
of commerce and industry in this State; design of
comprehensive statewide plans and programs; direction,
management, and control of specific projects; and
communication and cooperation with entities about technology
commercialization and business modernization;
(j) To take whatever actions are necessary or
appropriate to protect the State's interest in the event of
bankruptcy, default, foreclosure or noncompliance with the
terms and conditions of financial assistance or participation
required under this Act, including the power to sell,
dispose, lease or rent, upon terms and conditions determined
by the Director to be appropriate, real or personal property
which the Department may receive as a result thereof; and
(k) exercise such other powers as are necessary to
carry out the purposes of this Act.
(Source: P.A. 88-453.)
(20 ILCS 700/2001) (from Ch. 127, par. 3702-1)
Sec. 2001. Technology Challenge Grant Program.
(a) The Department may shall, subject to appropriated
funds, establish a Technology Challenge Grant Program to
provide initial grant funding requirements to help secure
federal research and development projects for this State and
to identify and develop technology programs capable of
commercialization or establish one or more programs
authorized under this Article as part of its Technology
Challenge Grant Program Initiative to serve as a catalyst and
assure a strong base to develop, transfer, or commercialize
new technologies. The Department shall, pursuant to Section
2003 of this Article, evaluate which grant applications best
serve the economic and technological objectives of the State.
(b) Grants shall be awarded from appropriations made for
that purpose to: (i) universities, colleges, community
colleges, nonprofit research foundations or laboratories,
State research institutions, industry technology
associations, or (ii) technology partnerships or technology
consortiums established by a formal joint project agreement
between: (1) two or more private industries, or (2) any
combination of one or more private industries with one or
more universities, colleges, community colleges, nonprofit
research laboratories, nonprofit research foundations, or
State research institutions, or (iii) any private enterprise
developing or commercializing technology or leveraging
federal technology development financing, including, but not
limited to, the small business innovative research program.
(Source: P.A. 88-453.)
(20 ILCS 700/2002) (from Ch. 127, par. 3702-2)
Sec. 2002. Grant purposes.
(a) Grants authorized under this Article shall be
awarded only for the following purposes: (i) applied
innovation research that provides initial grant funding to
help serve critical research and development projects to
respond to unique, advanced technology projects for which no
other source of funding is available and which foster the
development of Illinois' economy through the advancement of
the State's economic, scientific, and technological assets,
or which are recognized as technology programs of exemplary
and outstanding research in the field of science and
technology; or (ii) to assist eligible applicants in the
State apply for, or qualify for and leverage, federal funds
awarded for advanced technology projects concerning research
and development, business innovation research or technical
development, or the transfer of useful technology to the
private sector; (ii) university and industry partnerships
that create high-skill employment opportunities and
internship activities in the communities that enable
graduates and faculty to stay in Illinois and university and
industry initiatives that strengthen the relationship between
industry and academia in Illinois so that applied university
research is responsive to the needs of the various state
industries and industry clusters; (iii) centers of excellence
in technology commercialization, innovation evaluation, and
intellectual property management that encourages the growth
of new enterprises based on technologies developed at
Illinois research centers including to fund technology
partnerships, technology consortiums or research centers and
industry technology associations that are, or will be,
established to perform research and development in present
and emerging technologies that can be developed for use by
commerce and industry; and (iv) , or to transfer technology
transfer projects involving promotion of new or innovative
technologies among small and medium-sized Illinois
manufacturers where the technologies have immediate
commercial application; and conduct training and information
dissemination that is directly applicable to small and
medium-sized Illinois manufacturer needs; or information
transfer to Illinois based research institution regarding
best practice in industrial commercialization of technology
developments; (v) planning and operational support for
statewide support that improve practices in technology
commercialization including and (iv) to assist in the needs
assessment and evaluation of the status of technology
implementation throughout the State.
(b) Grants awarded pursuant to this Article may be used
to help subsidize expenses, as approved by the Department,
for capital improvements, equipment, contractual services,
commodities, personnel, support costs, including
telecommunication, electronic data and commodities, or other
costs.
(Source: P.A. 88-453.)
(20 ILCS 700/2003) (from Ch. 127, par. 3702-3)
Sec. 2003. Grant evaluation and amounts.
(a) The Department shall evaluate grant applications
based upon criteria provided under this Section. The
Department shall not award any Challenge Grant that is not
recommended for funding by the Illinois Governor's Science
and Technology Advisory Committee and the Illinois or
associated private sector Coalition. In determining which
grant applicants shall be awarded a Challenge Grant, the
Department shall conduct an evaluation of prior compliance
with loan or grant agreements for any grant applicant
previously funded by the Department. In addition, the
Department shall consider the following criteria in
determining grant awards: the relationship of a proposed
advanced technology project to the State's future economic
growth; the qualifications and expertise of consultants,
firms or organizations undertaking the effort; the potential
for leveraging federal or private research dollars, or both,
for the initiative; the extent of the capacity of the
applicant or the applicant partnership or consortium to
finance the initiative; the potential for adapting,
commercializing or adopting the results of the applicant's
project for the economic benefit of the State; and the
likelihood that the project has a potential for creating new
jobs or retaining current jobs in the State.
(b) The Director of the Department shall determine the
level of the grant award and shall determine the share of
total directly attributable costs of an advanced technology
project which may be considered for funding under this
Article.
(c) The Department and the Department of Natural
Resources are hereby authorized to cooperate with and provide
support to the Illinois Governor's Science and Technology
Advisory Committee and the Illinois its associated private
sector Coalition. Such support may include the provision of
office space and may be technical, advisory or operational in
nature.
(Source: P.A. 89-445, eff. 2-7-96; revised 12-2-98.)
(20 ILCS 700/Art. 3 heading)
ARTICLE 3. ILLINOIS ADVANCED TECHNOLOGY
ENTERPRISE DEVELOPMENT AND INVESTMENT PROGRAM
(20 ILCS 700/3001) (from Ch. 127, par. 3703-1)
Sec. 3001. Illinois Advanced Technology Enterprise
Development and Investment Program. The Department shall,
subject to appropriated funds, establish an Advanced
Technology Enterprise Development Investment Program to: (i)
provide investments, loans, or qualified security investments
to or on behalf of young or growing businesses, in
cooperation with private investment companies, private
investors or conventional lending institutions which also
assume a portion of the investment loan or financing for a
business project, or on behalf of new or emerging business
through financial intermediaries as they commercialize
advanced technology projects; (ii) fund regional technology
enterprise development centers that make available resources
and expertise in furthering the technical or managerial
skills of owners; aid the ventures in locating financing; and
help new companies with product development and marketing
provide loans to, or on behalf of, the State's mature, small
or medium-sized businesses for the modernization and
installation of advanced technologies or processes which will
improve the business' production systems and work
organization, which in turn will preserve and create private
sector jobs by increasing the firm's long-term competitive
viability; (iii) provide grants to, or on behalf of,
Illinois' mature, small or medium-sized businesses
undertaking feasibility studies, competitiveness assessments
and productivity audits to restore their businesses'
competitiveness; and (iv) provide qualified investments,
loans or grants to development credit corporations, financial
intermediaries or other entities whose purpose includes
financing, promoting or encouraging commercialization,
adoption or implementation of advanced technologies,
processes or products.
(Source: P.A. 86-870.)
(20 ILCS 700/3002) (from Ch. 127, par. 3703-2)
Sec. 3002. Investment requirements. Any direct
financial assistance shall:
(a) Be awarded only if other financing with respect to
the business project is provided. Other financing may be in
the form of any loan, equity position, convertible preferred
stock, letter of credit, guarantee, limited partnership
interest, bond purchase or any other form approved by the
Department;
(b) Be protected by adequate security. Financial
assistance may be secured by first or second mortgage
positions on real or personal property, by royalty payments,
by personal notes or guarantees, or by any other security
satisfactory to the Department to secure repayment, if
required, by the financial assistance agreement;
(c) Be in such principal amount and form, and contain
such terms and provisions with respect to the property,
insurance, repairs, alteration, payment of taxes and
assessments, delinquency charges, default remedies,
additional security and other matters as the Department shall
determine adequate to protect the public interest.
(Source: P.A. 88-453.)
(20 ILCS 700/3003) (from Ch. 127, par. 3703-3)
Sec. 3003. Applications.
(a) An application for direct financial assistance shall
be submitted to the Department in accordance with forms and
filing fees prescribed by the Department. The application
may require facts about the company's history, job
opportunities, stability of employment, past and present
condition and structure, actual and pro-forma income
statements, present and future market prospects and
management qualification, and any other facts deemed material
to the financing request. The Department shall obtain such
additional information concerning the application as it deems
necessary and diligent.
The Department may create a credit review committee which
shall, on the basis of the application, and any other
information, prepare a report concerning the
credit-worthiness of the proposed borrower, the financial
commitment of other investors, the manner in which the
proposed business project will advance the economy of the
State, and the soundness of the proposed financial assistance
agreement.
After consideration of such report, and after such other
action as it deems appropriate, the Department shall approve
or deny the application. If the Department approves the
application, its approval shall specify the amount of funds
to be provided and the financial assistance agreement
provisions which shall apply to the applicant. The applicant
shall be promptly notified of such action by the Department.
(b) The Department may, subject to available
appropriated funds, provide grants or investments in
revolving fund portfolios with intermediary organizations or
participating lenders or investors. The financial assistance
may be made available to intermediaries that assume a
responsibility for the administration of the projects funded
through the grant or investment.
Applications shall be submitted to the Department in
accordance with forms and filing fees prescribed by the
Department. The application may require facts about the
intermediary's history, past, and present condition and
structure, actual, and pro-forma income statements, present
and future market prospects and management qualification, and
any other facts deemed material to the financing request.
(Source: P.A. 86-870.)
(20 ILCS 700/3004) (from Ch. 127, par. 3703-4)
Sec. 3004. Investment purpose.
(a) Direct qualified investments, loans, or
participation investments in loan and investment or loan
portfolios with financial intermediaries authorized by this
Article 1 of this Act may be made for the purpose of
financing any new process, technique, product, service or
device which is, or which may be, capable of being reduced to
practice, and which is, or which may be, commercially
exploitable by (i) young new or growing Illinois businesses
or (ii) to help applicants who have qualified for Federal
Small Business Innovation Research funds.
Financial assistance proceeds may be used for expenses
that include, but are not limited to, costs incurred for
research and development, amortizable organizational costs,
working capital financing, the purchase or lease of machinery
and equipment, and the acquisition, improvement or
rehabilitation of land and buildings. In determining if
direct or participation qualified security investments or
loans are to be made, the Department shall find that there is
a likelihood of commercial feasibility given the state of
development of the proposed product, process, or technical
device, and that there is a likelihood of increased job
opportunities in the near term as a result of the security
investment. Direct qualified security investments or
investment loans the Department's participation in the
qualified security investment or loan portfolio of an
authorized financial intermediary for an eligible applicant
shall not be made for more than $500,000 and shall not be
made for more than 50% of the business project costs unless
the Director determines that a waiver of these limits is
required to meet the purpose of this Act. In making a
determination to participate in an the qualified security
investment or loan portfolio of an authorized participating
lender or investor financial intermediary on behalf of
eligible applicants, the Department shall find that the
administering financial intermediary is capable of
effectively evaluating the commercialization feasibility of
the proposed product, process, service or technical device
technology and the likelihood of increased job creation
impact that may result from project financing. In no
instance shall the Department's participation in an the
qualified investment or and loan portfolio of any authorized
participating lender or investor financial intermediary
exceed $2,000,000 at one time.
(b) A loan made for company modernization or retooling
may be for any purpose consistent with the objectives of this
Act including, but not limited to, purchases of advanced
machinery, equipment and tooling; organizational expenses for
services, personnel training, corporate restructuring;
working capital; acquisition, improvement or rehabilitation
of land and buildings which are an integral part of a new
production or process technology; or any other business
expense reasonably related to the project. In determining if
a loan is to be provided, the Department shall determine
whether there will be an expected improvement in production
levels, quality of output or timeliness of delivery and that
the number of jobs to be created or retained is reasonable in
relation to the loan funds requested. A loan to eligible
applicants for modernization or retooling shall not be made
for more than $500,000 or for more than 25% of the business
project costs unless the Director of the Department
determines that a waiver of these limits is required to meet
the purposes of this Act.
(c) Grants may be made for the purpose of financing
feasibility studies, competitive assessments or productivity
services which the Department determines may result in
technology enhancement, retooling, restructuring or other
competitiveness improvements. In determining the amount of a
grant, the Department shall: (i) examine the level of
expertise of the consultant or firm undertaking the
feasibility study or competitive assessment; (ii) evaluate
the likelihood of an applicant's proposed feasibility study
or competitive assessment resulting in a substantial
improvement in the applicant's operations; (iii) determine
whether that improvement will result in the creation or
retention of jobs. Grants to eligible applicants shall not
exceed $100,000 or 50% of the project costs unless the
Director of the Department determines that a waiver of these
limits is required to meet the purposes of this Act.
(Source: P.A. 88-453.)
(20 ILCS 700/3004.5 new)
Sec. 3004.5. Illinois Technology Enterprise Centers
Requirements.
(a) The Department may, subject to available
appropriated funds, working with the Illinois Coalition,
establish one or more regional technology enterprise
development centers whose mission is to assist entrepreneurs,
innovators, and start-up firms in high-growth, high
technology sectors in furthering the technical or managerial
skills of owners; aid the ventures in locating financing; and
help new companies with product development and marketing in
support of new venture formation within the State.
(b) The Department may provide grants or may provide
cost share or reimbursements pursuant to this Section to
support the operation of technology enterprise development
centers. Grants awarded pursuant to this Article may be used
to help subsidize expenses, as approved by the Department,
for revolving funds, personnel, support costs, capital
improvements, equipment, contractual services, commodities,
including telecommunication or other costs.
(c) Technology enterprise development centers may
provide crucial business information at affordable prices for
firms that are developing early-stage, technology-oriented
manufacturing including (i) general or short-term assistance,
general outreach, feasibility studies for new venture
formation, and research assistance for new venture creation;
(ii) innovation evaluation and market research to evaluate
the viability of technology, product, or service or the
market potential of technology, product, or service; (iii)
technical assistance related to management and operations and
strategic partnering and assistance in the implementation of
strategic manufacturing and marketing alliances; and (iv)
service in locating new technologies or technological
solutions.
(d) Technology enterprise development centers may
provide financial services that include (i) financial
packaging to enhance proposals and make companies more
competitive for federal or private funding; (ii) access to
private investor capital through venture capital events and
regional venture capital networking programs; and (iii)
management of local for-profit or limited profit seed capital
funds.
(e) Technology enterprise development centers may address
local shortfalls of capital to commercialize new technology
by providing pre-seed financing to start-up, technology-based
businesses. Financing options could include micro-loans,
small grants, and equity investment capital for seed funding,
product commercialization and prototype development, and
commercial introduction and marketing.
(f) The Department may provide grant funds made
available to support professional development and capacity
building of the technology enterprise development centers
within the State as may be required for the administration,
operations, research, analysis, or training of the centers.
(g) In determining which applicants shall be awarded a
grant, the Department shall conduct an evaluation of prior
compliance with loan or grant awards; the relationship of a
proposed project to the State's future economic growth; the
qualifications and expertise of organizations undertaking the
effort; the applicant's understanding of the requirements and
needs of entrepreneurs, innovators, and start-up firms in
high-growth, high technology sectors; the potential of the
applicant's project to provide an economic benefit of the
State; and the likelihood that the project has a potential
for creating new ventures in the State.
(h) The Director of the Department shall determine the
level of the grant award and shall determine the share of
total directly attributable costs of the project that may be
considered for funding under this Article.
(20 ILCS 700/Art. 3.5 heading new)
ARTICLE 3.5. BUSINESS MODERNIZATION INITIATIVE
(20 ILCS 700/3501 new)
Sec. 3501. Business Modernization Initiative. The
Department may create one or more programs under this Article
to assist the State's existing mature business and industry
base to adopt and use appropriate technologies. The programs
may vary in breadth of activities, services, and projects in
accordance with the level or complexity of the manufacturers'
needs or problems. The Department's programs shall emphasize
the provision of comprehensive assistance.
(20 ILCS 700/3505 new)
Sec. 3505. Modernization Retooling Loan Program.
(a) The Department may establish, subject to available
appropriated funds, a loan program that will improve
businesses' production systems and work organization to
preserve and create private sector jobs by increasing the
firms' long-term competitive viability. The program may
provide loans to, or on behalf of, the State's mature, small,
or medium-sized businesses for the modernization and
installation of advanced technologies or processes.
(b) A loan made for company modernization or retooling
may be for any purpose consistent with the objectives of this
Act including, but not limited to, purchases of advanced
machinery, equipment, and tooling; organizational expenses
for services, personnel training, and corporate
restructuring; working capital; acquisition, improvement,
or rehabilitation of land and buildings that are an integral
part of a new production or process technology; or any other
business expense reasonably related to the project. No loan
made by the Department shall be used to pay for the
retirement of previous debt unless the debt is a part of the
purchase or lease of machinery or equipment that is being
upgraded.
(c) In determining if a loan is to be provided, the
Department shall determine whether there will be an expected
improvement in production levels, quality of output, or
timeliness of delivery and that the number of jobs to be
created or retained is reasonable in relation to the loan
funds requested. A loan to an eligible applicant for
modernization or retooling shall not be made for more than
$500,000 or for more than 25% of the business project costs
unless the Director determines that a waiver of these limits
is required to meet the purposes of this Act.
(20 ILCS 700/3510 new)
Sec. 3510. Development Corporation Program.
(a) The Department may provide, subject to available
appropriated funds, financial assistance to the State's
mature, small, or medium-sized businesses through development
corporations that assume a responsibility for the
administration of the loan projects for the modernization and
installation of advanced technologies.
(b) Development corporation financial assistance may be
in the form of direct loans, grants, or purchases of
qualified security investments or financial assistance.
Development credit corporations, financial intermediaries, or
other entities whose purpose includes financing, promoting,
or encouraging commercialization, adoption, or implementation
of advanced technologies, processes, or products, as
determined by the Department, may participate in this
program.
(c) Financial assistance authorized under this Section
shall be used by the development corporation for loans or
investments to firms to improve the businesses' production
systems and work organization that will preserve and create
private sector jobs by increasing the firms' long-term
competitive viability and may be used for the planning and
operation of the development corporation as approved by the
Department through its agreement with the development
corporation.
(d) The Department is authorized to rely upon, and may
provide for in the execution of an agreement, the
participating lender's or investor's review on behalf of the
State and approval of the credit, collateral security, and
documentation; determination of eligibility, economic results
expected, and the prospects for viability and repayment; the
collection and use of fees, premiums, or charges; the
organization, servicing, and disbursement of financial
assistance; and such other purposes and activities as the
Department, in its sole discretion, shall determine to be
reasonable, appropriate, and consistent with the purposes of
this Article.
(20 ILCS 700/3515 new)
Sec. 3515. Modernization grants.
(a) Subject to available appropriated funds,
modernization grants may be made for the purpose of
financing, competitive assessments, or productivity
improvement services that the Department determines may
result in technology enhancement, retooling, restructuring,
or other competitiveness improvements. Grants may be made
to, or on behalf of, Illinois' mature, small, or medium-sized
businesses for (i) undertaking feasibility studies,
competitiveness assessments, and productivity audits to
restore their businesses' competitiveness or (ii) the
modernization and installation of advanced manufacturing
systems or processes that will improve the businesses'
production systems and work organization, or will preserve
and create private sector jobs by increasing the firms'
long-term competitive viability.
(b) Assistance authorized under this Section may be in
the form of direct grant agreements, agreements with private
sector consultants on behalf of a firm, or agreements with
participating intermediary organizations as authorized under
Article 1.
(c) In determining the amount of a modernization grant,
the Department shall: (i) examine the level of expertise of
the consultant or firm undertaking the competitiveness
assessment or productivity improvement services; (ii)
evaluate the likelihood of an applicant's proposed
competitiveness assessment or productivity improvement
services resulting in a substantial improvement in the
applicant's operations; and (iii) determine whether
improvement will result in the creation or retention of jobs.
Modernization grants to eligible applicants shall not exceed
$100,000 or 50% of the project costs, unless the Director
determines that a waiver of these limits is required to meet
the purposes of this Act.
(20 ILCS 700/3520 new)
Sec. 3520. Manufacturing Extension Program.
(a) The Department may establish, subject to available
appropriated funds, a program of statewide manufacturing
extension centers serving the geographic needs of the State's
manufacturers, whose mission is to assist small or
medium-sized manufacturers with technological advancement,
for continuous improvement of business practices for these
firms to be better positioned to succeed against global
competition.
(b) The Department may provide grants or may provide
cost share or reimbursements under this Section to support
the operation of manufacturing extension deliverers,
including organizations financed through a federal
manufacturing extension partnership program. Manufacturing
extension deliverers can include universities and colleges,
regional or sectorial based organizations, technical
societies, or other similar groups.
(c) The Department may provide grant funds made
available under this Act to support professional development
and capacity building of the manufacturing extension system
within the State as may be required for the administration,
operations, research, analysis, promotion, or training of
geographic based manufacturing extension centers.
(d) In determining which applicants shall be awarded a
grant, the Department shall conduct an evaluation of prior
compliance with awards programs; the relationship of a
proposed project to the State's future economic growth; the
qualifications and expertise of organizations undertaking the
effort; the applicant's understanding of the requirements and
needs of the target groups served; the potential of the
applicant's project to provide an economic benefit of the
State; the methods engaged to measure and track performance;
and the likelihood that the project has a potential for
improving the competitiveness of small and mid-sized
manufacturers.
(20 ILCS 700/3525 new)
Sec. 3525. Manufacturing and Export Base Services.
(a) The Department may, subject to available appropriated
funds, establish a program of statewide assistance to the
manufacturing and services export base of the State serving
the sector-wide needs of small and medium-sized companies.
(b) The Department may provide grants, cost share funds,
or reimbursements: to State or substate programs providing
better access to information; to reduce the impediments to
the flow of technical information; and to provide Illinois
manufacturers, producer firms, and export services firms with
better or more timely access to the State's and the nation's
technology base, including industrial and engineering
consulting practices, university and research laboratory
based engineers, private commercial product vendors, and
other sources of technology or non-technology services.
(c) The Department may provide grants to those private,
public, and non-profit research institutions and
organizations that agree to serve as an intermediary to
achieve the purpose set forth in this Section that continues
to ensure Illinois' economic vitality and competitiveness.
(d) The Department may seek out applicants that may be
considered for a grant, and may provide an award based on the
qualifications and expertise of organizations undertaking the
effort, the applicants understanding of the requirements and
needs of the target groups served, and the likelihood that
the proposed project will improve the State's future economic
potential.
(20 ILCS 700/3530 new)
Sec. 3530. Eligible applicants; forms of assistance.
Financial assistance may be made to, or on behalf of, any
for-profit entity, sole proprietorship, partnership,
corporation, or joint venture carrying on business, or
organized to carry on business, in this State. Financial
assistance authorized under this Article may be made
available to not-for-profit organizations, including
educational agencies, business or trade associations,
economic development organizations, and participating
lenders, in the form of participation agreements, direct
loans, grant agreements, purchases of qualified security, or
any other form as determined by the Department.
(20 ILCS 700/4003) (from Ch. 127, par. 3704-3)
Sec. 4003. Federal programs. The Department is authorized
to accept and expend federal monies in furtherance of this
Act and to use funds appropriated under this Act for programs
pending reimbursement from federal funds, except that the
terms and conditions established under this Act, which are
inconsistent with or prohibited by the federal authorization
under which such monies are made available, shall not apply
with respect to the expenditure of such monies.
(Source: P.A. 86-870.)
ARTICLE 10.
Section 10-5. The Civil Administrative Code of Illinois
is amended by changing Section 46.32a as follows:
(20 ILCS 605/46.32a) (from Ch. 127, par. 46.32a)
Sec. 46.32a. Labor-management-community relations.
(a) Because economic development investment programs
must be supplemented with efforts to maintain a skilled,
stable, and diverse workforce able to meet the needs of new
and growing business enterprises, the Department shall
promote better labor-management-community and government
operations by providing labor-management relations and
provide assistance in the development of local
labor-management-community labor-management committees and
coalitions established to address employment issues facing
families and by helping Illinois current and prospective
employers attract and retain a diverse and productive
workforce through the promotion and support of dependent care
policies and programs in the workplace and community.
In the Department there shall be a
Labor-Management-Community Labor-Management Cooperation
Committee composed of 18 12 public members appointed by the
Governor with the advice and consent of the Senate. Six
members shall represent executive level management of
businesses, that employ labor union members and 6 members
shall represent major labor union leadership, and 6 members
shall represent community leadership. The Governor shall
designate 1 business representative and 1 labor
representative as cochairmen. Appointed members shall not be
represented at a meeting by another person. There shall be 9
ex officio 6 ex officio nonvoting members: the Director of
the Department, who shall serve as Secretary, the Director of
the Department of Labor, the Secretary of Human Services, the
Director of Public Health, the Director of Employment
Security, the President of the Senate, the Minority Leader of
the Senate, the Speaker of the House of Representatives and
the Minority Leader of the House of Representatives. Each ex
officio member shall serve during the term of his or her
office. Ex officio members may be represented by duly
authorized substitutes.
In making the initial public member appointments to the
Committee, 3 of the business representatives and 3 of the
labor union representatives shall be appointed for terms
expiring July 1, 1987. The remaining public members shall be
appointed for terms expiring July 1, 1988. The public
members appointed under this amendatory Act of the 91st
General Assembly shall be divided into 2 groups with the
first group having terms that expire on July 1, 2002 and the
second group having terms that expire on July 1, 2003.
Thereafter, public members of the Committee shall be
appointed for terms of 2 years expiring on July 1, or until
their successors are appointed and qualified. The Governor
may at any time, with the advice and consent of the Senate,
make appointments to fill vacancies for the balance of an
unexpired term. Public members shall serve without
compensation, but shall be reimbursed by the Department for
necessary expenses incurred in the performance of their
duties. The Department shall provide staff assistance to the
Committee.
The Committee shall have the following duties:
(1) to improve communications between labor, and
management, and communities on significant economic
problems facing the State especially with respect to
identifying new ways to attract and retain employees and
provide an environment in which employees can do their
best work;
(2) to encourage and support the development of
local labor, management, and community labor-management
committees at the plant, industry and area levels across
the State and encourage and support the development of
local coalitions to support the implementation of
family-friendly policies in the workplace;
(3) to assess the progress of area
labor-management-community labor-management committees
and local coalitions that have been formed across the
State and provide input to the Governor and General
Assembly Director of the Department concerning matching
grants to area labor-management committees or other grant
programs established in this Act;
(4) to convene a Statewide conference on
labor-management-community labor-management concerns at
least once every 2 years and to convene a series of
regional work, family, and community planning conferences
throughout the State for employers, unions, and community
leaders to form local coalitions to share information,
pool resources, and address work and family concerns in
their own communities;
(5) to issue a report on labor-management-community
and employment-related family labor-management concerns
to the Governor and the General Assembly every 2 years
commencing in March of 1987. This report shall outline
the accomplishments of the Committee and specific
recommendations for improving Statewide
labor-management-community labor-management relations and
supporting the adoption of family-friendly work practices
throughout the State;.
(6) to advise the Department on dependent care and
other employment-related family initiatives; and
(7) to advise the Department on other initiatives
to foster maintenance and development of productive,
stable, and diverse workforces to supplement and advance
community and State investment-based economic development
programs.
(b) The Director, with the advice of the
Labor-Management-Community Labor-Management Cooperation
Committee, shall have the authority to provide grants to
employee coalitions or other coalitions that enhance or
promote work and family programs and address specific
community concerns, and to provide matching grants, grants
and other resources to establish or assist area
labor-management-community labor-management committees and
other projects which serve to enhance
labor-management-community labor-management relations. The
Department shall have the authority, with the advice of the
Labor-Management-Community Labor-Management Cooperation
Committee, to award grants or matching grants in the
following four areas:
(1) To provide At least 60 percent of the annual
appropriation to the Department, for providing
labor-management grants and resources shall be awarded as
matching grants to existing local
labor-management-community labor-management committees.
To be eligible for matching grants pursuant to this
subsection, local labor-management-community
labor-management committees shall:
(i) Be a formal, not-for-profit organization
structured for continuing service with voluntary
membership;
(ii) Be composed of labor, and management, and
community representatives;
(iii) Service a distinct and identifiable
geographic region;
(iv) Be staffed by a professional chief
executive officer;
(v) Have been established with the Department
for at least 2 two years;
(vi) Operate in compliance with rules set
forth by the Department with the advice of the
Labor-Management-Community Labor-Management
Cooperation Committee; and
(vii) Ensure that its efforts and activities
are coordinated with relevant agencies, including
but not limited to the following:
Department of Commerce and Community Affairs
Illinois Department of Labor
Economic development agencies
Corridor councils
Planning agencies
Colleges, universities and community colleges
U.S. Department of Labor
Statewide Job Training Partnership Act entities
or any successor federal workforce training and
development legislation.
Further, the purpose of the local
labor-management-community labor-management committees
will include, but not be limited to:
(i) Enhancing the positive
labor-management-community labor-management
relationship within the State, region, community
and/or work place;
(ii) Assisting in the retention, expansion and
attraction of businesses and jobs within the State
through special training programs, gathering and
dissemination of information and providing
assistance in local economic development efforts as
appropriate;
(iii) Creating and maintaining a regular
nonadversarial forum for ongoing dialogue between
labor, and management, and community representatives
to discuss and resolve issues of mutual concern
outside the realm of the traditional collective
bargaining process;
(iv) Acting as an intermediary for initiating
local programs between unions and employers which
would generally improve economic conditions in a
region;
(v) Encouraging, assisting and facilitating
the development of work-site and industry
labor-management-community labor-management
committees in the region.
Any local labor-management-community
labor-management committee meeting these criteria may
apply to the Department for annual matching grants,
provided providing that the local committee contributes
at least 25 percent in matching funds, of which no more
than 50 percent shall be "in-kind" services. Funds
received by a local committee pursuant to this subsection
shall be used for the ordinary operating expenses of the
local committee.
(2) To provide Up to 20 percent of the annual
appropriation to the Department for providing
labor-management grants and resources may be awarded as
matching grants to local labor-management-community
labor-management committees which do not meet all of the
eligibility criteria set forth in subsection (1).
However, to be eligible to apply for a grant under this
subsection, the local labor-management-community
labor-management committee, at a minimum, shall:
(i) Be composed of labor, and management, and
community representatives;
(ii) Service a distinct and identifiable
geographic region;
(iii) Operate in compliance with the rules set
forth by the Department with the advice of the
Labor-Management-Community Labor-Management
Cooperation Committee;
(iv) Ensure that its efforts and activities
are directed toward enhancing the
labor-management-community labor-management
relationship within the State, region, community
and/or work place.
Any local labor-management-community
labor-management committee meeting these criteria may
apply to the Department for an annual matching grant,
provided providing that the local committee contributes
at least 25 percent in matching funds of which no more
than 50 percent shall be "in-kind" services. Funds
received by a local committee pursuant to paragraph (2)
of subsection (b) of this Section shall be used for the
ordinary and operating expenses of the local committee.
Eligible committees shall be limited to three years of
funding under this subsection. With respect to those
committees participating in this program prior to
enactment of this amendatory Act of 1988 which fail to
qualify under paragraph (1) of subsection (b) of this
Section, previous years' funding shall be counted in
determining whether those committees have reached their
funding limit under this paragraph (2).
(3) To provide Up to 10 percent of the annual
appropriation to the Department for providing
labor-management grants and resources may be awarded as
grants to develop and conduct specialized education and
training programs of direct benefit to representatives of
labor, management, labor-management-community
labor-management committees and/or their staff. The type
of education and training programs to be developed and
offered will be determined and prioritized annually by
the Department, with the advice of the
Labor-Management-Community Labor-Management Cooperation
Committee. The Department will develop and issue an
annual request for proposals proposal detailing the
program specifications.
(4) To provide Up to 10 percent of the annual
appropriation to the Department for providing
labor-management grants and resources may be awarded as
grants for research and development projects related to
labor-management-community or employment-related family
labor-management issues. The Department, with the advice
of the Labor-Management-Community Labor-Management
Cooperation Committee, will develop and prioritize
annually the type and scope of the research and
development projects deemed necessary.
(5) To provide grants of up to a maximum of $5,000
to support the planning of regional work, family, and
community planning conferences that will be based on
specific community concerns.
(6) To provide grants to initiate or support
recently created employer-led coalitions to establish
pilot projects that promote the understanding of the work
and family issues and support local workforce dependent
care services.
The Department is authorized to establish
applications, application procedures and promulgate any
rules deemed necessary in the administration of such
grants.
(c) To administer the grant programs created by this
Act, the Department shall establish an Office of Work and
Family Issues Labor-Management Cooperation. The purpose of
this office shall include, but not be limited to:
(1) To administer the grant programs, including
developing grant applications and requests for proposals
proposal, program monitoring and evaluation.
(2) To serve as State liaison with other state,
regional and national organizations devoted to promoting
labor-management-community labor-management cooperation
and employment-related family issues; disseminating
pertinent information secured through these state,
regional and national affiliations to local
labor-management-community labor-management committees,
the Labor-Management-Community Labor-Management
Cooperation Committee, employer coalitions, Illinois
Employment and Training Centers, and other interested
parties throughout the State.
(3) To provide technical assistance to area,
industry or work-site labor-management-community
labor-management committees as requested.
(4) To serve as a clearinghouse for information
related to labor-management-community labor-management
cooperation.
(5) To serve as a catalyst to developing and
strengthening a partnership among local, state, regional
and national organizations and agencies devoted to
enhancing labor-management-community labor-management
cooperation and employment-related family issues.
(6) To provide any other programs or services which
enhance labor-management-community labor-management
cooperation or that may promote the adoption of
family-friendly workplace practices at companies located
within the State of Illinois as determined by the
Director with the advice of the
Labor-Management-Community Labor-Management Cooperation
Committee.
(7) To establish an Illinois Work and Family
Clearinghouse to disseminate best-practice work and
family policies and practices throughout the State,
including through the Illinois Employment and Training
Centers; to provide and develop a computerized database
listing dependent care information and referral services;
to help employers by providing information about options
for dependent care assistance, to conduct and compile
research on elder care, child care, and other
employment-related family issues in Illinois; and to
compile and disseminate any other information or services
that support the adoption of family-friendly workplace
practices at companies located in the State.
(Source: P.A. 88-456; revised 10-31-98.)
ARTICLE 15.
Section 15-1. Short Title. This Article may be cited as
the Illinois Business Regulatory Review Act.
Section 15-5. Purpose. The General Assembly finds that
small businesses and their growth are critical to the
economic health of the State. Small businesses, more so than
larger firms, often need assistance to negotiate through
complex government forms, rules, and regulations. The
current overall business climate of the State would be made
more attractive and competitive and would otherwise benefit
from reductions in unnecessarily burdensome rules and
regulations. A formal method to generate private sector
analysis, input, and guidance on methods of regulatory review
for the Governor and executive agencies, the constitutional
officers, and the General Assembly is needed for this
purpose.
Section 15-10. Illinois Economic Development Board
responsibilities. In addition to its duties under the Civil
Administrative Code of Illinois and the Illinois Economic
Development Board Act, the Illinois Economic Development
Board shall form a Business Regulatory Committee to generate
private sector analysis, input, and guidance on methods of
regulatory assistance and review.
Section 15-15. Economic Development Board Regulatory
Committee membership. Membership, composition, bylaws, and
methods of operation of the Committee shall be determined by
the Board. At the determination of the Board, individual
small business owners and operators; national, State, and
regional organizations representative of small firms; and
representatives of existing State or regional councils of
business may be designated as members of this Business
Regulatory Committee.
Section 15-20. Regulatory policy responsibilities of the
Committee. In addition to those duties and responsibilities
as directed by the Board, the Committee shall analyze,
determine, and report to the Board, so that the Board may
report to the Governor and executive agencies under the
control of the Governor, the constitutional officers, and the
General Assembly, overall methods of achieving greater small
business impact of the regulatory process the following
information:
(1) Identify specific ways in which existing
regulations and regulatory programs can be made more
responsive and responsible to small business.
(2) Identify more effective ways of eliciting
participation from the private sector in efforts to
simplify and clarify regulations so that they are not
overly complex or burdensome.
(3) Provide suggestions for involving small
business owners and their representatives in the
rulemaking process in a more meaningful way.
(4) Provide constructive suggestions for reducing
forms and paperwork particularly where they are
duplicative, overly complicated, or otherwise burdensome
for small business.
(5) Determine effective ways to communicate with
small business owners and to assist them in their
understanding and implementation of complex regulations.
(6) Recommend non-punitive methods of ensuring
compliance with regulatory objectives or requirements
including pre-inspection programs, advisory services,
education and training, and industry self-regulation.
Section 15-25. Regulatory review responsibilities of the
Business Regulatory Review Committee. At the direction and
request of the Board, the Committee shall review and analyze
regulations and make specific recommendations, from the
perspective of cost and benefit, reasonableness and common
sense, and permissiveness of community economic growth and
development, on the following:
(1) Selected regulatory topics to provide guidance
to State agencies regarding the formulation of and
revision to specific rules and regulations.
(2) Existing and proposed rules and regulations for
the purpose of determining whether the rule is
excessively burdensome or imposes undue hardship on those
subject to the regulation.
(3) Whether the public benefit derived from a rule
or a proposed rule exceeds the increased public and
private cost of complying with the rule being imposed.
(4) Less restrictive, less costly, or less
burdensome means to achieve the same result.
Section 15-30. Advisory responsibilities of the Business
Regulatory Review Committee. At the direction and request of
the Board, the Committee shall provide the following advisory
assistance:
(1) To advise the Office of the Governor regarding
agency rulemaking and to offer recommendations that
improve the State rulemaking process, which may include
alternative standards that might be set for enforcement
by regulatory agencies.
(2) To advise the General Assembly about whether
the State should adopt small business regulatory
enforcement fairness legislation modeled after the
equivalent federal legislation and regarding how Illinois
laws compare with those of other states and how Illinois
might implement reforms adopting the better or best
practices of these other states.
(3) To advise the Department of Commerce and
Community Affairs with the operations of the First Stop,
small business regulatory review, and similar department
programs.
(4) To advise relevant State agencies on the
formulation of federally required State rules.
Section 15-35. Support for Committee. The Committee
shall be provided staff support services by the Department of
Commerce and Community Affairs, the Office of the Governor,
and various regulatory agencies. Members of the Committee
shall serve without compensation, but may be reimbursed for
expenses.
Section 15-105. The Civil Administrative Code of
Illinois is amended by changing 46.19a as follows:
(20 ILCS 605/46.19a) (from Ch. 127, par. 46.19a)
Sec. 46.19a. Employment and technology grants.
(1) Grants to provide training in fields affected by
critical demands for certain skills may be made as provided
in this subsection.
(a) The Director of the Department may make grants
to eligible employers or to other eligible entities on
behalf of employers as authorized in paragraph (b) to
provide training for employees in fields for which there
are critical demands for certain skills.
(b) The Director may accept applications for
training grant funds and grant requests from: (i)
entities sponsoring multi-company eligible employee
training projects as defined in paragraph (c), including
business associations, strategic business partnerships,
institutions of secondary or higher education, large
manufacturers for supplier network companies, federal Job
Training Partnership Act administrative entities or grant
recipients, and labor organizations when those projects
will address common training needs identified by
participating companies; and (ii) individual employers
that are undertaking eligible employee training projects
as defined in paragraph (c), including intermediaries and
training agents.
(c) The Director may make grants to eligible
applicants as defined in paragraph (b) for employee
training projects that include, but need not be limited
to, one or more of the following:
(i) training programs in response to new or
changing technology being introduced in the
workplace;
(ii) job-linked training that offers special
skills for career advancement or that is preparatory
for, and leads directly to, jobs with definite
career potential and long-term job security;
(iii) training necessary to implement total
quality management or improvement or both management
and improvement systems within the workplace;
(iv) training related to new machinery or
equipment;
(v) training of employees of companies that
are expanding into new markets or expanding exports
from Illinois;
(vi) basic, remedial, or both basic and
remedial training of employees as a prerequisite for
other vocational or technical skills training or as
a condition for sustained employment;
(vii) self-employment training of the
unemployed and underemployed with comprehensive,
competency-based instructional programs and
services, entrepreneurial education and training
initiatives for youth and adult learners in
cooperation with the Illinois Institute for
Entrepreneurial Education, training and education,
conferences, workshops, and best practice
information for local program operators of
entrepreneurial education and self-employment
training programs; and
(viii) other training activities, projects, or
both training activities and projects related to the
support, development, or evaluation of job training
programs, activities, and delivery systems,
including training needs assessment and design.
(d) Grants shall be made on the terms and
conditions that the Department shall determine, provided,
however, that no grant made under the provisions of
paragraph (c) of this subsection shall exceed 50% of the
direct costs of all approved training programs provided
by the employer or the employer's training agent or other
entity as defined in paragraph (b). Under this Section,
allowable costs include, but are not limited to:
(i) administrative costs of tracking,
documenting, reporting, and processing training
funds or project costs;
(ii) curriculum development;
(iii) wages and fringe benefits of employees;
(iv) training materials, including scrap
product costs;
(v) trainee travel expenses;
(vi) instructor costs, including wages, fringe
benefits, tuition, and travel expenses;
(vii) rent, purchase, or lease of training
equipment; and
(viii) other usual and customary training
costs.
(e) The Director will ensure that a minimum of one
on-site grant monitoring visit is conducted by the
Department either during the course of the grant period
or within 6 months following the end of the grant period.
The Department shall verify that the grantee's financial
management system is structured to provide for accurate,
current, and complete disclosure of the financial results
of the grant program in accordance with all provisions,
terms, and conditions contained in the grant contract.
(f) The Director may establish and collect a
schedule of charges from subgrantee entities and other
system users under federal job-training programs for
participating in and utilizing the department's automated
job-training program information systems where such
systems and the necessary participation and utilization
is a requirement of the federal job-training programs.
All monies collected pursuant to this paragraph shall be
deposited into the Federal Job-Training Information
Systems Revolving Fund created in subsection (5).
(2) The Department is authorized to establish a program
of grants to universities, community colleges, research
institutions, research consortiums, other not-for-profit
entities, and Illinois businesses for the purpose of
fostering research and development in the high technology and
the service sector leading to the development of new products
and services that can be marketed by Illinois businesses. All
grant awards shall include a contract which may provide for
payment of negotiated royalties to the Department if the
product or service to be developed by the grantee is
subsequently licensed for production.
(a) Grants may be awarded to universities and
research institutions to assist them in making their
faculties and facilities available to Illinois
businesses. Such grants may be used by a university or
research institution for, including but not limited to
the following purposes: (i) to establish or enhance
computerized cataloging of all research labs and
university staff and make such catalogues available to
Illinois businesses; (ii) to market products developed by
the university to Illinois businesses; (iii) to review
publications in order to identify, catalog, and inform
Illinois businesses of new practices in areas such as
robotics, biotechnology; (iv) to build an on-line,
information and technology system that relies on other
computerized networks in the United States; (v) to assist
in securing temporary replacement for faculty who are
granted a leave of absence from their teaching duties for
the purpose of working full-time for an Illinois business
to assist that business with technology transfer.
(b) Grants may be awarded to universities and
research institutions, research consortiums and other
not-for-profit entities for the purpose of identifying
and supporting Illinois businesses engaged in high
technology and service sector enterprises. Such Illinois
businesses identified and funded shall include recipients
of Small Business Innovation Research Program funds under
subsections (e) through (k) of Section 9 of the Small
Business Act. (Title 15 United States Codes, subsections
638(e)-638(k)). Entities receiving grants under this
paragraph (b) shall be known as commercialization centers
and shall engage in one or more of the following
activities:
(i) directing research assistance for new
venture creations;
(ii) general feasibility studies of new
venture ideas;
(iii) furthering the technical and
intellectual skills of the managers and owners of
Illinois small businesses;
(iv) commercialization of technology and
research;
(v) development of prototypes and testing new
products;
(vi) identify and assist in securing
financing;
(vii) marketing assistance; and
(viii) assisting Illinois inventors in finding
Illinois manufacturers to produce and market their
inventions.
A commercialization center may charge a nominal fee
or accept royalty agreements for conducting feasibility
studies and other services.
(c) Grants may be awarded by the Department to
Illinois businesses to fund research and consultation
arrangements between businesses and universities,
community colleges, research institutions, research
consortiums and other not-for-profit entities within this
State.
The Department shall give priority to Illinois small
businesses in awarding grants. Each grant awarded under
this paragraph (c) shall provide funding for up to 50% of
the cost of the research or consultation arrangements,
not to exceed $100,000; provided that the grant recipient
utilizes Illinois not for profit research and academic
institutions to perform the research and development
function for which grant funds were requested.
(d) Grants may be awarded to research consortium
and other qualified applicants, in conjunction with
private sector or federal funding, for other creative
systems that bridge university resources and business,
technological, production and development concerns.
(e) For the purposes of subsection (2), (i)
"Illinois business" means a "small business concern" as
defined in Title 15 United States Code, Section 632,
which primarily conducts its business in Illinois; (ii)
"high technology" means any area of research or
development designed to foster greater knowledge or
understanding in fields such as computer science,
electronics, physics, chemistry or biology for the
purpose of producing designing, developing or improving
prototypes and new processes; (iii) "private sector"
shall have the meaning ascribed to it in Title 29 United
States Code, Section 1503; (iv) "University" means either
a degree granting institution located in Illinois as
defined in Section 2 of the Academic Degree Act, or a
State-supported institution of higher learning
administered by the Board of Trustees of the University
of Illinois, the Board of Trustees of Southern Illinois
University, the Board of Trustees of Chicago State
University, the Board of Trustees of Eastern Illinois
University, the Board of Trustees of Governors State
University, the Board of Trustees of Illinois State
University, the Board of Trustees of Northeastern
Illinois University, the Board of Trustees of Northern
Illinois University, the Board of Trustees of Western
Illinois University, or the Illinois Community College
Board; (v) "venture" means any Illinois business engaged
in research and development to create new products or
services with high growth potential; (vi) Illinois
research institutions refers to not-for-profit entities,
which include federally-funded research laboratories,
that conduct research and development activities for the
purpose of producing, designing, developing, or improving
prototypes and new processes; and (vii) other
not-for-profit entities means non-profit organizations
based in Illinois that are primarily devoted to new
enterprise or product development.
(f) The Department may establish a program of grant
assistance on a matching basis to universities, community
colleges, small business development centers, community
action agencies and other not-for-profit economic
development agencies to encourage new enterprise
development and new business formation and to encourage
enterprises in this State. The Department may provide
grants, which shall be exempt from the provisions of
subsection (3) of this Section, to universities,
community colleges, small business development centers,
community action agencies and other not-for-profit
economic development entities for the purpose of making
loans to small businesses. All grant applications shall
contain information as required by the Department,
including the following: a program operation plan; a
certification and assurance that the small business
applicants have received business development training or
education, have a business and finance plan and have
experience in the proposed business area; and a
description of the support services which the grant
recipient will provide to the small business. No more
than 10% of the grant may be used by the grant recipient
for administrative costs associated with the grant.
Grant recipients may use grant funds under this program
to make loans on terms and conditions favorable to the
small business and shall give priority to those
businesses located in high poverty areas, enterprise
zones, or both.
(3) There is created within the Department, a Technology
Innovation and Commercialization Grants-in-Aid Council which
shall consist of 2 representatives of the Department of
Commerce and Community Affairs appointed by the Department;
one representative of the Illinois Board of Higher Education,
appointed by the Board; one representative of science or
engineering appointed by the Governor; two representatives of
business, appointed by the Governor; one representative of
small business, appointed by the Governor; one representative
of the Department of Agriculture, appointed by the Director
of Agriculture; and one representative of agribusiness,
appointed by the Director of Agriculture. The Director of
Commerce and Community Affairs shall appoint one of the
Department's representatives to serve as chairman of the
Council. The Council members shall receive no compensation
for their services but shall be reimbursed for their expenses
actually incurred by them in the performance of their duties
under this subsection. The Department shall provide staff
services to the Council. The Council shall provide for review
and evaluation of all applications received by the Department
under subsection (2) of this Section and make recommendations
on those projects to be funded. The Council shall also assist
the Department in monitoring the projects and in evaluating
the impact of the program on technological innovation and
business development within the State.
(4) There is hereby created a special fund in the State
Treasury to be known as the Technology Innovation and
Commercialization Fund. The moneys in such Fund may be used,
subject to appropriation, only for making grants pursuant to
subsection (2) of this Section and for the purposes of the
Technology Advancement and Development Act. All royalties
received by the Department shall be deposited in such Fund.
(5) There is hereby created a special fund in the State
treasury to be known as the Federal Job-Training Information
Systems Revolving Fund. The deposit of monies into this fund
shall be limited to the collection of charges pursuant to
paragraph (f) of subsection (1) of this Section. The monies
in the fund may only be used, subject to appropriation by the
General Assembly for the purpose of financing the maintenance
and operation of the automated Federal Job-Training
Information Systems pursuant to paragraph (f) of subsection
(1) of this Section.
(6) When the Department is involved in developing a
federal or State funded training or retraining program for
any employer, the Department will assist and encourage that
employer in making every effort to reemploy individuals
previously employed at the facility. Further, the Department
will provide a list of said employees to said employer for
consideration for reemployment and will report the results of
this effort to the Illinois Job Training Coordinating
Council. This requirement shall be in effect when the
following conditions are met:
(a) the employer is reopening, or is proposing to
reopen, a facility which was last closed during the
preceding 2 years,
(b) a substantial number of the persons who were
employed at the facility before its most recent closure
remain unemployed, and
(c) the product or service produced by, or proposed
to be produced by, the employer at the facility is
substantially similar to the product or service produced
at the facility before its most recent closure.
(7) The Department, in cooperation with the Departments
of Human Services and Employment Security, may establish a
program to encourage community action agencies to establish
programs that will help unemployed and underemployed single
parents to identify, access, and develop, through such means
as counseling or mentoring, internal and external resources
that will enable those single parents to become emotionally
and financially self-sufficient. The intended primary
beneficiaries of the local programs shall be female heads of
households who are at least 22 but less than 46 years of age
and who are physically able to work but are unemployed or
underemployed. The Department may make grants, subject to
the availability of funding, to communities and local
agencies for the purpose of establishing local programs as
described in this subsection (7). A grant under this
subsection (7) shall be made for a period of one year and may
be renewed if the Department determines that the program is
successful in meeting its objectives. If the Department
determines that implementation of a program has resulted in a
savings of State moneys that otherwise would have been paid
to beneficiaries of the program, the Department, on renewing
a grant, may adjust the grant amount for those demonstrated
savings. For purposes of this subsection, a person is
underemployed if his or her income from employment is less
than 185% of the federal official poverty income guideline.
(Source: P.A. 89-4, eff. 1-1-96; 89-507, eff. 7-1-97; 90-454,
eff. 8-16-97.)
Section 15-110. The Women's Business Ownership Act is
amended by changing Section 20 as follows:
(20 ILCS 705/20)
(Section scheduled to be repealed on September 1, 1999)
Sec. 20. Repeal. This Act is repealed September 1, 2004
1999.
(Source: P.A. 88-597, eff. 8-28-94.)
Section 15-115. The Illinois Economic Development Board
Act is amended by changing Section 3 and adding Section 4.5
as follows:
(20 ILCS 3965/3) (from Ch. 127, par. 3953)
Sec. 3. The board shall be composed of citizens from
both the private and public sectors who are actively engaged
in organizations and businesses that support economic
expansion, industry enhancement and job creation. The board
shall be composed of the following persons:
(a) the Governor or his or her designee;
(b) four for members of the General Assembly, one
each appointed by the President of the Senate, the
Speaker of the House of Representatives, and the minority
leaders of the Senate and House of Representatives;
(c) 20 members appointed by the Governor including
representatives of small business, minority owned
companies, women owned companies, manufacturing, economic
development professionals, and citizens at large. one
representative of a manufacturing company employing more
than 1,000 persons;
(d) (blank) one representative of a manufacturing
company employing fewer than 100 persons;
(e) (blank) one representative of a manufacturing
company employing between 100 and 1,000 persons;
(f) (blank) three representatives from organized
labor;
(g) (blank) one representative from a major
financial institution;
(h) (blank) one representative from agriculture;
(i) (blank) one representative from education;
(j) (blank) one representative from the retail
industry;
(k) (blank) one representative from the service
industry;
(l) (blank); one economic development professional;
and
(m) (blank) five citizens at large.
The director of the Department of Commerce and Community
Affairs shall serve as an ex officio member of the board.
The Governor shall appoint the members of the board
specified in subsections (c) through (m) of this Section,
subject to the advice and consent of the Senate, within 30
days after the effective date of this Act. The first meeting
of the board shall occur within 60 days after the effective
date of this Act.
The Governor shall appoint a chairperson and a vice
chairperson of the board. Members shall serve 2-year terms.
The position of a legislative member shall become vacant if
the member ceases to be a member of the General Assembly. A
vacancy in a board position shall be filled by the original
appointing authority.
The board shall include representation from each of the
State's geographic areas.
The board shall meet quarterly or at the call of the
chair and shall create subcommittees as needed to deal with
specific issues and concerns. Members shall serve without
compensation but may be reimbursed for expenses.
(Source: P.A. 86-1430.)
(20 ILCS 3965/4.5 new)
Sec. 4.5. Additional duties. In addition to those
duties granted under Section 4, the Illinois Economic
Development Board shall:
(1) Establish a Business Investment Location
Development Committee for the purpose of making
recommendations for designated economic development
projects. At the request of the Board, the Director of
Commerce and Community Affairs or his or her designee;
the Director of the Bureau of the Budget, or his or her
designee; the Director of Revenue, or his or her
designee; the Director of Employment Security, or his or
her designee; and an elected official of the affected
locality, such as the chair of the county board or the
mayor, may serve as members of the Committee to assist
with its analysis and deliberations.
(2) Establish a Business Regulatory Review
Committee to generate private sector analysis, input, and
guidance on methods of regulatory assistance and review.
At the determination of the Board, individual small
business owners and operators; national, State, and
regional organizations representative of small firms; and
representatives of existing State or regional councils of
business may be designated as members of this Business
Regulatory Review Committee.
Section 15-120. The Business Enterprise for Minorities,
Females, and Persons with Disabilities Act is amended by
changing Section 9 as follows:
(30 ILCS 575/9) (from Ch. 127, par. 132.609)
(Section scheduled to be repealed on September 6, 1999.)
Sec. 9. This Act is repealed September 6, 2004 1999.
(Source: P.A. 88-597, eff. 8-28-94.)
ARTICLE 20
Section 20-1. Short Title. This Article may be cited as
the State and Regional Development Strategy Act.
Section 20-5. Purpose. The General Assembly finds that
an essential step to assist the Illinois economy, both on a
statewide and on a local level, to respond to increasingly
competitive global conditions and economic trends is to
establish a consensus on a long-term economic development
strategy that recognizes both the competitive position of the
State's regions and needs of commerce and industry. A unique
partnership between State and local development groups and
between the private and public sectors can set a
comprehensive and responsive agenda of community improvement
and community economic development.
Section 20-10. Strategic Planning. The Department of
Commerce and Community Affairs has the following powers:
By no later than February 1, 2000, the Department shall
prepare an economic development strategy for Illinois for the
period beginning on July 1, 2000 and ending on June 30, 2005,
and for the 4 years next ensuing. By no later than February
1, 2000 and annually thereafter, the Department shall make
modifications in the economic development strategy for the 4
years beginning on the next ensuing July 1 as the
modifications are warranted by changes in economic conditions
or by other factors, including changes in policy, and shall
prepare an economic development strategy for the fifth year
beginning after the next ensuing July 1. In preparing the
strategy and in making modifications to the strategy, the
Department shall take cognizance of the special economic
attributes of the various component areas of the State.
(1) The "component areas" shall be determined by the
Department after a county by county economic analysis and
shall group counties that are close in geographical
proximity and share common economic traits such as labor
market areas.
(2) The strategy shall recommend specific
legislative, administrative, and programmatic action at
both the State and area level for promoting sustained
economic growth at or above national rates of economic
growth while keeping the rate of unemployment below
national levels of unemployment.
(3) The strategy shall include an assessment of
historical patterns of economic activity for the State as
a whole and by area, and projections of future economic
trends for the State as a whole and by area. National
economic trends and projections shall be considered in
the formulation of the State and area projections. All
assumptions made in the formulation of the State and area
projections shall be clearly and explicitly set forth in
the strategy.
(4) The strategy shall identify, for each area,
those community economic improvement characteristics that
most likely will influence whether the area will exceed
or fall below the rate of overall State economic growth.
(5) The strategy shall recommend programmatic action
to be taken to foster and promote economic growth in
specific areas, taking into account the resources and
economic factors indigenous to the areas.
(A) The strategy shall identify for the State
and each region the critical business development
approaches being considered or to be considered.
The approaches may include, but are not limited to:
investment recruitment, such as industry attraction,
expansion and retention; trade development efforts
including international trade, support for small
businesses' efforts to export products and services,
tourism attraction and development including
cultural tourism; technology development efforts
including technology commercialization and
manufacturing modernization; and business
development efforts, including entrepreneurship and
entrepreneurial education, small business management
assistance, and business financing.
(B) The strategy shall identify for the State
and each region the critical workforce training and
development being considered or to be considered.
The approaches may include, but are not limited to:
customized job training, retraining and skill
upgrading, economic adjustment, job creation and
addressing labor shortages in areas of high demand;
the market for and quality of the local labor force;
the quality of the education and workforce
infrastructure; and related issues.
(C) The strategy shall identify for the State
and each region the critical community development
approaches being considered or to be considered.
The approaches may include, but are not limited to:
community growth management such as regional
planning and smart growth; area revitalization
including brownfields redevelopment and facility
reuse; and family self-sufficiency such as through
housing conservation and economic opportunity.
(D) The strategy shall identify for the State
and each region the critical public facilities
development approaches being considered or to be
considered. The approaches may include, but are not
limited to: local public services; the local,
regional, and State tax and regulatory climate; the
physical infrastructure, including communications
and transportation systems; the capacity of area
utilities; and the quality of public institutions
such as schools.
(E) The strategy shall identify for the State
and each region the other critical marketplace
systems, including: the financial marketplace; the
competitive advantages of the area in terms of
natural resources, capital resources or technology
resources; and other factors affecting area
development.
(6) In preparing the strategy or modifications to
the strategy, the Department shall work with State
agencies, boards, and commissions whose programs and
activities significantly affect economic activity in the
State including the Illinois Development Finance
Authority, the Department of Revenue, the Department of
Transportation, the Department of Employment Security,
the Department of Agriculture, the Department of Natural
Resources, the Environmental Protection Agency, and other
agencies, boards, or commissions as appropriate. The
Directors of the agencies, boards, and commissions shall
provide the assistance to the Department as the Governor
deems appropriate.
(7) In preparing the strategies for the component
areas, the Department shall consult with local and
regional economic development organizations, local
elected officials, community-based organizations, service
delivery providers, and other organizations whose
programs and activities significantly affect economic
activity in the area.
(8) In preparing the economic development strategy,
the Department shall take into consideration any
decisions or recommendations related to programs,
services, and government regulations contained in the
strategy that have been rendered as a result of a
Statewide Performance Review.
(9) The strategy shall be presented to the Governor,
the President and Minority Leader of the Senate, the
Speaker and Minority Leader of the House of
Representatives, the members of the Illinois Economic
Development Board, and the Chair of the Economic and
Fiscal Commission on February 1, 2000 and annually
thereafter.
(10) The strategy shall be published and made
available to the public in both paper and electronic
media.
(20 ILCS 605/46.44 rep.)
Section 20-105. The Civil Administrative Code of
Illinois is amended by repealing Section 46.44.
ARTICLE 999.
Section 999-1. Effective date. This Act takes effect
upon becoming law.
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