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91_SB0040enr
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1 AN ACT concerning economic development.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 ARTICLE 5.
5 Section 5-1. Short title. This Article may be cited as
6 the Economic Development for a Growing Economy Tax Credit
7 Act.
8 Section 5-3. Purpose. The General Assembly finds that
9 the Illinois economy, although currently strong, is still
10 highly vulnerable to other states and nations that have major
11 financial incentive programs for medium-sized and large firm
12 relocations. Because of the incentive programs of these
13 competitor locations, Illinois must move aggressively with
14 new business development investment tools so that Illinois is
15 more competitive in site location decision-making. The State
16 must not only continue to work with firms to help them locate
17 their new plants and facilities in Illinois but also must
18 provide competitive investment location tax credits in
19 support of the location and expansion of medium-sized and
20 large operations of commerce and industry. In an increasingly
21 global economy, Illinois' long-term development would benefit
22 from rational, strategic use of State resources in support of
23 business development and growth.
24 Section 5-5. Definitions. As used in this Act:
25 "Agreement" means the Agreement between a Taxpayer and
26 the Department under the provisions of Section 5-50 of this
27 Act.
28 "Applicant" means a Taxpayer that is operating a business
29 located or that the Taxpayer plans to locate within the State
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1 of Illinois and that is engaged in interstate or intrastate
2 commerce for the purpose of manufacturing, processing,
3 assembling, warehousing, or distributing products, conducting
4 research and development, providing tourism services, or
5 providing services in interstate commerce, office industries,
6 or agricultural processing, but excluding retail, retail
7 food, health, or professional services. "Applicant" does not
8 include a Taxpayer who closes or substantially reduces an
9 operation at one location in the State and relocates
10 substantially the same operation to another location in the
11 State. This does not prohibit a Taxpayer from expanding its
12 operations at another location in the State, provided that
13 existing operations of a similar nature located within the
14 State are not closed or substantially reduced. This also does
15 not prohibit a Taxpayer from moving its operations from one
16 location in the State to another location in the State for
17 the purpose of expanding the operation provided that the
18 Department determines that expansion cannot reasonably be
19 accommodated within the municipality in which the business is
20 located, or in the case of a business located in an
21 incorporated area of the county, within the county in which
22 the business is located, after conferring with the chief
23 elected official of the municipality or county and taking
24 into consideration any evidence offered by the municipality
25 or county regarding the ability to accommodate expansion
26 within the municipality or county.
27 "Committee" means the Illinois Business Investment
28 Committee created under Section 5-25 of this Act within the
29 Illinois Economic Development Board.
30 "Credit" means the amount agreed to between the
31 Department and Applicant under this Act, but not to exceed
32 the Incremental Income Tax attributable to the Applicant's
33 project.
34 "Department" means the Department of Commerce and
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1 Community Affairs.
2 "Director" means the Director of Commerce and Community
3 Affairs.
4 "Full-time Employee" means an individual who is employed
5 for consideration for at least 35 hours each week or who
6 renders any other standard of service generally accepted by
7 industry custom or practice as full-time employment.
8 "Incremental Income Tax" means the total amount withheld
9 during the taxable year from the compensation of New
10 Employees under Article 7 of the Illinois Income Tax Act
11 arising from employment at a project that is the subject of
12 an Agreement.
13 "New Employee" means:
14 (a) A Full-time Employee first employed by a
15 Taxpayer in the project that is the subject of an
16 Agreement and who is hired after the Taxpayer enters into
17 the tax credit Agreement.
18 (b) The term "New Employee" does not include:
19 (1) an employee of the Taxpayer who performs a
20 job that was previously performed by another
21 employee, if that job existed for at least 6 months
22 before hiring the employee;
23 (2) an employee of the Taxpayer who was
24 previously employed in Illinois by a Related Member
25 of the Taxpayer and whose employment was shifted to
26 the Taxpayer after the Taxpayer entered into the tax
27 credit Agreement; or
28 (3) a child, grandchild, parent, or spouse,
29 other than a spouse who is legally separated from
30 the individual, of any individual who has a direct
31 or an indirect ownership interest of at least 5% in
32 the profits, capital, or value of the Taxpayer.
33 (c) Notwithstanding paragraph (1) of subsection
34 (b), an employee may be considered a New Employee under
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1 the Agreement if the employee performs a job that was
2 previously performed by an employee who was:
3 (1) treated under the Agreement as a New
4 Employee; and
5 (2) promoted by the Taxpayer to another job.
6 (d) Notwithstanding subsection (a), the Department
7 may award Credit to an Applicant with respect to an
8 employee hired prior to the date of the Agreement if:
9 (1) the Applicant is in receipt of a letter
10 from the Department stating an intent to enter into
11 a credit Agreement;
12 (2) the letter described in paragraph (1) is
13 issued by the Department not later than 15 days
14 after the effective date of this Act; and
15 (3) the employee was hired after the date the
16 letter described in paragraph (1) was issued.
17 "Noncompliance Date" means, in the case of a Taxpayer
18 that is not complying with the requirements of the Agreement
19 or the provisions of this Act, the day following the last
20 date upon which the Taxpayer was in compliance with the
21 requirements of the Agreement and the provisions of this Act,
22 as determined by the Director, pursuant to Section 5-65.
23 "Pass Through Entity" means an entity that is exempt from
24 the tax under subsection (b) or (c) of Section 205 of the
25 Illinois Income Tax Act.
26 "Related Member" means a person that, with respect to the
27 Taxpayer during any portion of the taxable year, is any one
28 of the following:
29 (1) An individual stockholder, if the stockholder
30 and the members of the stockholder's family (as defined
31 in Section 318 of the Internal Revenue Code) own
32 directly, indirectly, beneficially, or constructively, in
33 the aggregate, at least 50% of the value of the
34 Taxpayer's outstanding stock.
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1 (2) A partnership, estate, or trust and any partner
2 or beneficiary, if the partnership, estate, or trust, and
3 its partners or beneficiaries own directly, indirectly,
4 beneficially, or constructively, in the aggregate, at
5 least 50% of the profits, capitol, stock, or value of the
6 Taxpayer.
7 (3) A corporation, and any party related to the
8 corporation in a manner that would require an attribution
9 of stock from the corporation to the party or from the
10 party to the corporation under the attribution rules of
11 Section 318 of the Internal Revenue Code, if the Taxpayer
12 owns directly, indirectly, beneficially, or
13 constructively at least 50% of the value of the
14 corporation's outstanding stock.
15 (4) A corporation and any party related to that
16 corporation in a manner that would require an attribution
17 of stock from the corporation to the party or from the
18 party to the corporation under the attribution rules of
19 Section 318 of the Internal Revenue Code, if the
20 corporation and all such related parties own in the
21 aggregate at least 50% of the profits, capital, stock, or
22 value of the Taxpayer.
23 (5) A person to or from whom there is attribution
24 of stock ownership in accordance with Section 1563(e) of
25 the Internal Revenue Code, except, for purposes of
26 determining whether a person is a Related Member under
27 this paragraph, 20% shall be substituted for 5% wherever
28 5% appears in Section 1563(e) of the Internal Revenue
29 Code.
30 "Taxpayer" means an individual, corporation, partnership,
31 or other entity that has any Illinois Income Tax liability.
32 Section 5-10. Powers of the Department. The
33 Department, in addition to those powers granted under the
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1 Civil Administrative Code of Illinois, is granted and shall
2 have all the powers necessary or convenient to carry out and
3 effectuate the purposes and provisions of this Act,
4 including, but not limited to, power and authority to:
5 (a) Promulgate procedures, rules, or regulations deemed
6 necessary and appropriate for the administration of the
7 programs; establish forms for applications, notifications,
8 contracts, or any other agreements; and accept applications
9 at any time during the year.
10 (b) Provide and assist Taxpayers pursuant to the
11 provisions of this Act, and cooperate with Taxpayers that are
12 parties to Agreements to promote, foster, and support
13 economic development, capital investment, and job creation or
14 retention within the State.
15 (c) Enter into agreements and memoranda of understanding
16 for participation of and engage in cooperation with agencies
17 of the federal government, local units of government,
18 universities, research foundations or institutions, regional
19 economic development corporations, or other organizations for
20 the purposes of this Act.
21 (d) Gather information and conduct inquiries, in the
22 manner and by the methods as it deems desirable, including
23 without limitation, gathering information with respect to
24 Applicants for the purpose of making any designations or
25 certifications necessary or desirable or to gather
26 information to assist the Committee with any recommendation
27 or guidance in the furtherance of the purposes of this Act.
28 (e) Establish, negotiate and effectuate any term,
29 agreement or other document with any person, necessary or
30 appropriate to accomplish the purposes of this Act; and to
31 consent, subject to the provisions of any Agreement with
32 another party, to the modification or restructuring of any
33 Agreement to which the Department is a party.
34 (f) Fix, determine, charge, and collect any premiums,
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1 fees, charges, costs, and expenses from Applicants,
2 including, without limitation, any application fees,
3 commitment fees, program fees, financing charges, or
4 publication fees as deemed appropriate to pay expenses
5 necessary or incident to the administration, staffing, or
6 operation in connection with the Department's or Committee's
7 activities under this Act, or for preparation,
8 implementation, and enforcement of the terms of the
9 Agreement, or for consultation, advisory and legal fees, and
10 other costs; however, all fees and expenses incident thereto
11 shall be the responsibility of the Applicant.
12 (g) Provide for sufficient personnel to permit
13 administration, staffing, operation, and related support
14 required to adequately discharge its duties and
15 responsibilities described in this Act from funds made
16 available through charges to Applicants or from funds as may
17 be appropriated by the General Assembly for the
18 administration of this Act.
19 (h) Require Applicants, upon written request, to issue
20 any necessary authorization to the appropriate federal,
21 state, or local authority for the release of information
22 concerning a project being considered under the provisions of
23 this Act, with the information requested to include, but not
24 be limited to, financial reports, returns, or records
25 relating to the Taxpayers' or its project.
26 (i) Require that a Taxpayer shall at all times keep
27 proper books of record and account in accordance with
28 generally accepted accounting principles consistently
29 applied, with the books, records, or papers related to the
30 Agreement in the custody or control of the Taxpayer open for
31 reasonable Department inspection and audits, and including,
32 without limitation, the making of copies of the books,
33 records, or papers, and the inspection or appraisal of any of
34 the Taxpayer or project assets.
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1 (j) Take whatever actions are necessary or appropriate
2 to protect the State's interest in the event of bankruptcy,
3 default, foreclosure, or noncompliance with the terms and
4 conditions of financial assistance or participation required
5 under this Act, including the power to sell, dispose, lease,
6 or rent, upon terms and conditions determined by the Director
7 to be appropriate, real or personal property that the
8 Department may receive as a result of these actions.
9 Section 5-15. Tax Credit Awards. Subject to the
10 conditions set forth in this Act, a Taxpayer is entitled to a
11 Credit against taxes imposed pursuant to subsections (a) and
12 (b) of Section 201 of the Illinois Income Tax Act that may be
13 imposed on the Taxpayer for a taxable year beginning on or
14 after January 1, 1999, if the Taxpayer is awarded a Credit by
15 the Department under this Act for that taxable year.
16 (a) The Department shall make Credit awards under this
17 Act to foster job creation and retention in Illinois.
18 (b) A person that proposes a project to create new jobs
19 in Illinois must enter into an Agreement with the Department
20 for the Credit under this Act.
21 (c) The Credit shall be claimed for the taxable years
22 specified in the Agreement.
23 (d) The Credit shall not exceed the Incremental Income
24 Tax attributable to the project that is the subject of the
25 Agreement.
26 Section 5-20. Application for a project to create and
27 retain new jobs.
28 (a) Any Taxpayer proposing a project located or planned
29 to be located in Illinois may request consideration for
30 designation of its project, by formal written letter of
31 request or by formal application to the Department, in which
32 the Applicant states its intent to make at least a specified
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1 level of investment and intends to hire or retain a specified
2 number of full-time employees at a designated location in
3 Illinois. As circumstances require, the Department may
4 require a formal application from an Applicant and a formal
5 letter of request for assistance.
6 (b) In order to qualify for Credits under this Act, an
7 Applicant's project must:
8 (1) involve an investment of at least $5,000,000 in
9 capital improvements to be placed in service and to
10 employ at least 25 New Employees within the State as a
11 direct result of the project; or
12 (2) involve an investment of at least an amount (to
13 be expressly specified by the Department and the
14 Committee) in capital improvements to be placed in
15 service and will employ at least an amount (to be
16 expressly specified by the Department and the Committee)
17 of New Employees within the State, provided that the
18 Department and the Committee have determined that the
19 project will provide a substantial economic benefit to
20 the State.
21 (c) After receipt of an application, the Department may
22 enter into an Agreement with the Applicant if the application
23 is accepted in accordance with Section 5-25.
24 Section 5-25. Review of Application.
25 (a) In addition to those duties granted under the
26 Illinois Economic Development Board Act, the Illinois
27 Economic Development Board shall form a Business Investment
28 Committee for the purpose of making recommendations for
29 applications. At the request of the Board, the Director of
30 Commerce and Community Affairs or his or her designee, the
31 Director of the Bureau of the Budget or his or her designee,
32 the Director of Revenue or his or her designee, the Director
33 of Employment Security or his or her designee, and an elected
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1 official of the affected locality, such as the chair of the
2 county board or the mayor, may serve as members of the
3 Committee to assist with its analysis and deliberations.
4 (b) At the Department's request, the Committee shall
5 convene, make inquiries, and conduct studies in the manner
6 and by the methods as it deems desirable, review information
7 with respect to Applicants, and make recommendations for
8 projects to benefit the State. In making its recommendation
9 that an Applicant's application for Credit should or should
10 not be accepted, which shall occur within a reasonable time
11 frame as determined by the nature of the application, the
12 Committee shall determine that all the following conditions
13 exist:
14 (1) The Applicant's project intends, as required by
15 subsection (b) of Section 5-20 to make the required
16 investment in the State and intends to hire the required
17 number of New Employees in Illinois as a result of that
18 project.
19 (2) The Applicant's project is economically sound
20 and will benefit the people of the State of Illinois by
21 increasing opportunities for employment and strengthen
22 the economy of Illinois.
23 (3) That, if not for the Credit, the project would
24 not occur in Illinois, which may be demonstrated by any
25 means including, but not limited to, evidence the
26 Applicant has multi-state location options and could
27 reasonably and efficiently locate outside of the State,
28 or demonstration that at least one other state is being
29 considered for the project, or evidence the receipt of
30 the Credit is a major factor in the Applicant's decision
31 and that without the Credit, the Applicant likely would
32 not create new jobs in Illinois, or demonstration that
33 receiving the Credit is essential to the Applicant's
34 decision to create or retain new jobs in the State.
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1 (4) A cost differential is identified, using best
2 available data, in the projected costs for the
3 Applicant's project compared to the costs in the
4 competing state, including the impact of the competing
5 state's incentive programs. The competing state's
6 incentive programs shall include state, local, private,
7 and federal funds available.
8 (5) The political subdivisions affected by the
9 project have committed local incentives with respect to
10 the project, considering local ability to assist.
11 (6) Awarding the Credit will result in an overall
12 positive fiscal impact to the State, as certified by the
13 Committee using the best available data.
14 (7) The Credit is not prohibited by Section 5-35 of
15 this Act.
16 Section 5-30. Limitation to amount of costs of specified
17 items. The total amount of the Credit allowed during all tax
18 years may not exceed the aggregate amount of costs incurred
19 by the Taxpayer during all prior tax years for the following
20 items, to the extent provided in the Agreement:
21 (1) capital investment, including, but not limited
22 to, equipment, buildings, or land;
23 (2) infrastructure development;
24 (3) debt service, except refinancing of current
25 debt;
26 (4) research and development;
27 (5) job training and education;
28 (6) lease costs; or
29 (7) relocation costs.
30 Section 5-35. Relocation of jobs in Illinois. A
31 Taxpayer is not entitled to claim the Credit provided by this
32 Act with respect to any jobs that the Taxpayer relocates from
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1 one site in Illinois to another site in Illinois.
2 Determinations under this Section shall be made by the
3 Department.
4 Section 5-40. Determination of Amount of the Credit. In
5 determining the amount of the Credit that should be awarded,
6 the Committee shall provide guidance on, and the Department
7 shall take into consideration, the following factors:
8 (1) The number and location of jobs created and
9 retained in relation to the economy of the county where
10 the projected investment is to occur.
11 (2) The potential impact on the economy of
12 Illinois.
13 (3) The magnitude of the cost differential between
14 Illinois and the competing state.
15 (4) The incremental payroll attributable to the
16 project.
17 (5) The capital investment attributable to the
18 project.
19 (6) The amount of the average wage and benefits
20 paid by the Applicant in relation to the wage and
21 benefits of the area of the project.
22 (7) The costs to Illinois and the affected
23 political subdivisions with respect to the project.
24 (8) The financial assistance that is otherwise
25 provided by Illinois and the affected political
26 subdivisions.
27 Section 5-45. Amount and duration of the Credit. The
28 Department shall determine the amount and duration of the
29 Credit awarded under this Act. The duration of the Credit may
30 not exceed 10 taxable years. The Credit may be stated as a
31 percentage of the Incremental Income Tax attributable to the
32 Applicant's project and may include a fixed dollar
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1 limitation.
2 Section 5-50. Contents of Agreements with Applicants.
3 The Department shall enter into an Agreement with an
4 Applicant that is awarded a Credit under this Act. The
5 Agreement must include all of the following:
6 (1) A detailed description of the project that is
7 the subject of the Agreement, including the location and
8 amount of the investment and jobs created or retained.
9 (2) The duration of the Credit and the first
10 taxable year for which the Credit may be claimed.
11 (3) The Credit amount that will be allowed for each
12 taxable year.
13 (4) A requirement that the Taxpayer shall maintain
14 operations at the project location that shall be stated
15 as a minimum number of years not to exceed 10.
16 (5) A specific method for determining the number of
17 New Employees employed during a taxable year.
18 (6) A requirement that the Taxpayer shall annually
19 report to the Department the number of New Employees, the
20 Incremental Income Tax withheld in connection with the
21 New Employees, and any other information the Director
22 needs to perform the Director's duties under this Act.
23 (7) A requirement that the Director is authorized
24 to verify with the appropriate State agencies the amounts
25 reported under paragraph (6), and after doing so shall
26 issue a certificate to the Taxpayer stating that the
27 amounts have been verified.
28 (8) A requirement that the Taxpayer shall provide
29 written notification to the Director not more than 30
30 days after the Taxpayer makes or receives a proposal that
31 would transfer the Taxpayer's State tax liability
32 obligations to a successor Taxpayer.
33 (9) A detailed description of the number of New
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1 Employees to be hired, and the occupation and payroll of
2 the full-time jobs to be created or retained as a result
3 of the project.
4 (10) The minimum investment the business enterprise
5 will make in capital improvements, the time period for
6 placing the property in service, and the designated
7 location in Illinois for the investment.
8 (11) A requirement that the Taxpayer shall provide
9 written notification to the Director and the Committee
10 not more than 30 days after the Taxpayer determines that
11 the minimum job creation or retention, employment
12 payroll, or investment no longer is being or will be
13 achieved or maintained as set forth in the terms and
14 conditions of the Agreement.
15 (12) A provision that, if the total number of New
16 Employees falls below a specified level, the allowance of
17 Credit shall be suspended until the number of New
18 Employees equals or exceeds the Agreement amount.
19 (13) A detailed description of the items for which
20 the costs incurred by the Taxpayer will be included in
21 the limitation on the Credit provided in Section 5-30.
22 (14) Any other performance conditions or contract
23 provisions as the Department determines are appropriate.
24 Section 5-55. Certificate of verification; submission to
25 the Department of Revenue. A Taxpayer claiming a Credit
26 under this Act shall submit to the Department of Revenue a
27 copy of the Director's certificate of verification under this
28 Act for the taxable year. However, failure to submit a copy
29 of the certificate with the Taxpayer's tax return shall not
30 invalidate a claim for a Credit.
31 For a Taxpayer to be eligible for a certificate of
32 verification, the Taxpayer shall provide proof as required by
33 the Department prior to the end of each calendar year,
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1 including, but not limited to, attestation by the Taxpayer
2 that:
3 (1) The project has substantially achieved the
4 level of new full-time jobs specified in its Agreement.
5 (2) The project has substantially achieved the
6 level of annual payroll in Illinois specified in its
7 Agreement.
8 (3) The project has substantially achieved the
9 level of capital investment in Illinois specified in its
10 Agreement.
11 Section 5-60. Pass through entity.
12 (a) The shareholders or partners of a Taxpayer that is a
13 Pass Through Entity shall be entitled to the Credit allowed
14 under the Agreement.
15 (b) The Credit provided under subsection (a) is in
16 addition to any Credit to which a shareholder or partner is
17 otherwise entitled under a separate Agreement under this Act.
18 A Pass Through Entity and a shareholder or partner of the
19 Pass Through Entity may not claim more than one Credit under
20 the same Agreement.
21 Section 5-65. Noncompliance; notice; assessment. If the
22 Director determines that a Taxpayer who has received a Credit
23 under this Act is not complying with the requirements of the
24 Agreement or all of the provisions of this Act, the Director
25 shall provide notice to the Taxpayer of the alleged
26 noncompliance, and allow the Taxpayer a hearing under the
27 provisions of the Illinois Administrative Procedure Act. If,
28 after such notice and any hearing, the Director determines
29 that a noncompliance exists, the Director shall issue to the
30 Department of Revenue notice to that effect, stating the
31 Noncompliance Date.
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1 Section 5-70. Annual report. On or before July 1 each
2 year, the Committee shall submit a report to the Department
3 on the tax credit program under this Act to the Governor and
4 the General Assembly. The report shall include information on
5 the number of Agreements that were entered into under this
6 Act during the preceding calendar year, a description of the
7 project that is the subject of each Agreement, an update on
8 the status of projects under Agreements entered into before
9 the preceding calendar year, and the sum of the Credits
10 awarded under this Act. A copy of the report shall be
11 delivered to the Governor and to each member of the General
12 Assembly.
13 Section 5-75. Evaluation of tax credit program. On a
14 biennial basis, the Department shall evaluate the tax credit
15 program. The evaluation shall include an assessment of the
16 effectiveness of the program in creating new jobs in Illinois
17 and of the revenue impact of the program, and may include a
18 review of the practices and experiences of other states with
19 similar programs. The Director shall submit a report on the
20 evaluation to the Governor and the General Assembly after
21 June 30 and before November 1 in each odd-numbered year.
22 Section 5-80. Adoption of rules. The Department may
23 adopt rules necessary to implement this Act. The rules may
24 provide for recipients of Credits under this Act to be
25 charged fees to cover administrative costs of the tax credit
26 program. Fees collected shall be deposited into the Economic
27 Development for a Growing Economy Fund.
28 Section 5-85. The Economic Development for a Growing
29 Economy Fund.
30 (a) The Economic Development for a Growing Economy Fund
31 is established to be used exclusively for the purposes of
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1 this Act, including paying for the costs of administering
2 this Act. The Fund shall be administered by the Department.
3 (b) The Fund consists of collected fees, appropriations
4 from the General Assembly, and gifts and grants to the Fund.
5 (c) The State Treasurer shall invest the money in the
6 Fund not currently needed to meet the obligations of the Fund
7 in the same manner as other public funds may be invested.
8 Interest that accrues from these investments shall be
9 deposited into the Fund.
10 (d) The money in the Fund at the end of a State fiscal
11 year remains in the Fund to be used exclusively for the
12 purposes of this Act. Expenditures from the Fund are subject
13 to appropriation by the General Assembly.
14 Section 5-90. Program Terms and Conditions.
15 (a) Any documentary materials or data made available or
16 received by any member of a Committee or any agent or
17 employee of the Department shall be deemed confidential and
18 shall not be deemed public records to the extent that the
19 materials or data consists of trade secrets, commercial or
20 financial information regarding the operation of the business
21 conducted by the Applicant for or recipient of any tax credit
22 under this Act, or any information regarding the competitive
23 position of a business in a particular field of endeavor.
24 (b) Nothing in this Act shall be construed as creating
25 any rights in any Applicant to enter into an Agreement or in
26 any person to challenge the terms of any Agreement.
27 Section 5-105. The Civil Administrative Code of Illinois
28 is amended by changing Section 46.62 as follows:
29 (20 ILCS 605/46.62) (from Ch. 127, par. 46.62)
30 Sec. 46.62. To establish and administer a Technology
31 Challenge Grant Program and an Illinois Advanced Technology
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1 Enterprise Development and Investment Program as provided by
2 the Technology Advancement and Development Act and to expend
3 appropriations in accordance therewith.
4 (Source: P.A. 86-870; 86-1028.)
5 Section 5-110. The State Finance Act is amended by
6 adding Section 5.490 as follows:
7 (30 ILCS 105/5.490 new)
8 Sec. 5.490. The Economic Development for a Growing
9 Economy Fund.
10 Section 5-115. The Illinois Income Tax Act is amended by
11 adding Section 211 as follows:
12 (35 ILCS 5/211 new)
13 Sec. 211. Economic Development for a Growing Economy Tax
14 Credit. For tax years beginning on or after January 1, 1999,
15 a Taxpayer who has entered an Agreement under the Economic
16 Development for a Growing Economy Tax Credit Act is entitled
17 to a credit against the taxes imposed under subsections (a)
18 and (b) of Section 201 of this Act in an amount to be
19 determined in the Agreement. If the Taxpayer is a partnership
20 or Subchapter S corporation, the credit shall be allowed to
21 the partners or shareholders in accordance with the
22 determination of income and distributive share of income
23 under Sections 702 and 704 and subchapter S of the Internal
24 Revenue Code. The Department, in cooperation with the
25 Department of Commerce and Community Affairs, shall prescribe
26 rules to enforce and administer the provisions of this
27 Section. This Section is exempt from the provisions of
28 Section 250 of this Act.
29 The credit shall be subject to the conditions set forth
30 in the Agreement and the following limitations:
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1 (1) The tax credit shall not exceed the Incremental
2 Income Tax (as defined in Section 5-5 of the Economic
3 Development for a Growing Economy Tax Credit Act) with
4 respect to the project.
5 (2) The amount of the credit allowed during the tax
6 year plus the sum of all amounts allowed in prior years
7 shall not exceed 100% of the aggregate amount expended by
8 the Taxpayer during all prior tax years on approved costs
9 defined by Agreement.
10 (3) The amount of the credit shall be determined on
11 an annual basis; however, the credit against any State
12 tax liability may not extend beyond 10 taxable years
13 after the project is first approved and may not extend
14 beyond the expiration of the Agreement.
15 (4) The credit may not exceed the amount of taxes
16 imposed pursuant to subsections (a) and (b) of Section
17 201 of this Act. Any credit that is unused in the year
18 the credit is computed may be carried forward and applied
19 to the tax liability of the 5 taxable years following the
20 excess credit year. The credit shall be applied to the
21 earliest year for which there is a tax liability. If
22 there are credits from more than one tax year that are
23 available to offset a liability, the earlier credit shall
24 be applied first.
25 (5) No credit shall be allowed with respect to any
26 Agreement for any taxable year ending after the
27 Noncompliance Date. Upon receiving notification by the
28 Department of Commerce and Community Affairs of the
29 noncompliance of a Taxpayer with an Agreement, the
30 Department shall notify the Taxpayer that no credit is
31 allowed with respect to that Agreement for any taxable
32 year ending after the Noncompliance Date, as stated in
33 such notification. If any credit has been allowed with
34 respect to an Agreement for a taxable year ending after
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1 the Noncompliance Date for that Agreement, any refund
2 paid to the Taxpayer for that taxable year shall, to the
3 extent of that credit allowed, be an erroneous refund
4 within the meaning of Section 912 of this Act.
5 (6) For purposes of this Section, the terms
6 "Agreement", "Incremental Income Tax", and
7 "Noncompliance Date" have the same meaning as when used
8 in the Economic Development for a Growing Economy Tax
9 Credit Act.
10 Section 5-120. The Technology Advancement and
11 Development Act is amended by changing Sections 1002, 1003,
12 1004, 2001, 2002, 2003, the Article 3 heading, Sections 3001,
13 3002, 3003, 3004.5 and 4003 and adding the Article 3.5
14 heading and Sections 3501, 3505, 3510, 3515, 3520, 3525, and
15 3530 as follows:
16 (20 ILCS 700/1002) (from Ch. 127, par. 3701-2)
17 Sec. 1002. Findings and declaration of policy. The
18 General Assembly hereby finds that numerous economic
19 challenges confront the State, including dramatic increases
20 in foreign productivity and global market competition which
21 have forced a retrenchment in key business sectors and a
22 reduction in high paying manufacturing jobs which threaten to
23 undermine Illinois' standard of living and quality of life.
24 In order to avoid economic stagnation and decline, Illinois
25 must keep pace with the global revolution in manufacturing
26 technology that is occurring in virtually every major
27 industrialized nation competing in the international
28 marketplace.
29 The General Assembly further finds that an appropriate
30 economic response would require increasing the level of
31 investment in research and development; utilizing industry,
32 State and local government, and labor, and academia to create
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1 state-wide programs; and fostering an improved environment
2 for productivity and technological competitiveness. These
3 various programs would utilize Illinois' present resources in
4 many developing areas including health care and biomedical
5 research, information and telecommunications, computing and
6 electronic equipment, manufacturing technologies and
7 materials research, transportation and aerospace, geoscience,
8 financial and service industries, and agriculture and
9 biotechnology.
10 It is the purpose of this Act to identify, develop and
11 commercialize technology which will permit Illinois firms to
12 successfully compete in today's world markets, and to
13 authorize State and local government to promote
14 systematically, within the provisions of this Act, those
15 private sector and nonprofit research institution efforts
16 that will serve as intermediaries to achieve the programs
17 authorized under this Act; and continue to insure Illinois'
18 economic vitality and competitiveness through (i)
19 commercialization of new technology products; (ii)
20 modernization of services by technology enterprises; and
21 (iii) modernization of the industrial base of small and
22 medium-sized manufacturers.
23 (Source: P.A. 86-870.)
24 (20 ILCS 700/1003) (from Ch. 127, par. 3701-3)
25 Sec. 1003. Definitions. The following words and
26 phrases, for the purposes of this Act, shall have the
27 meanings respectively ascribed to them, except when the
28 context otherwise requires, or except as otherwise provided
29 in this Act:
30 (a) "Advanced technology project" means any area of
31 basic or applied research or development which is designed to
32 foster greater knowledge or understanding, or which is
33 designed for the purposes of improving, designing,
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1 developing, prototyping, producing or commercializing new
2 products, techniques, processes or technical devices in
3 present or emerging fields of health care and biomedical
4 research, information and communication systems, computing
5 and computer services, electronics, manufacturing, robotics
6 and materials research, transportation and aerospace,
7 agriculture and biotechnology, and finance and services.
8 (b) "Business expense" includes working capital
9 financing, the purchase or lease of machinery and equipment,
10 or the lease or purchase of real property, including
11 construction, renovation, or leasehold improvements, but does
12 not include refinancing current debt.
13 (c) "Business project" means any specific economic
14 development activity of a commercial, industrial,
15 manufacturing, agricultural, scientific, financial, service
16 or other not-for-profit nature, which is expected to yield an
17 increase in jobs or to result in the retention of jobs or an
18 improvement in production efficiency.
19 (d) "Department" means the Illinois Department of
20 Commerce and Community Affairs.
21 (e) "Director" means the Director of the Illinois
22 Department of Commerce and Community Affairs.
23 (f) "Financial assistance" means a loan, investment,
24 grant or the purchase of qualified securities or other means
25 whereby financial aid is made to or on behalf of a business
26 project or advanced technology project.
27 "Intermediary organization" means any participating
28 organization including not-for-profit entities, for-profit
29 entities, State development authorities, institutions of
30 higher education, other public or private corporations, which
31 may include the Illinois Coalition, or other entities
32 necessary or desirable to further the purpose of this Act
33 engaged by the Department through any contract, agreement,
34 memoranda of understanding, or other cooperative arrangement
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1 to deliver programs authorized under this Act.
2 "Investment loan" means any loan structured so that the
3 applicant repays the principal and interest and provides a
4 qualified security investment to serve both as additional
5 loan security and as an additional source of repayment.
6 (g) "Loan" means acceptance of any note, bond,
7 debenture, or evidence of indebtedness, whether unsecured or
8 secured by a mortgage, pledge, deed of trust, or other lien
9 on any property, or any certificate of, receipt for,
10 participation in, or an option to any of the foregoing. A
11 loan shall bear such interest rate, with such terms of
12 repayment, secured by such collateral, with other terms and
13 conditions, as the Department shall deem necessary or
14 appropriate.
15 (h) "Participating lender or investor" means any trust
16 company, bank, savings bank, credit union, merchant bank,
17 investment bank, broker, investment trust, pension fund,
18 building and loan association, savings and loan association,
19 insurance company, venture capital company or other
20 institution, community or State development corporation,
21 development authority authorized to do business by an Act of
22 this State, or other public or private financing intermediary
23 approved by the Department whose purposes include financing,
24 promoting, or encouraging economic development financing.
25 (i) "Qualified security investments" means any stock,
26 convertible security, treasury stock, limited partnership
27 interest, certificate of interest or participation in any
28 profit sharing agreement, preorganization certificate or
29 subscription, transferable share, investment contract,
30 certificate of interest or participation in a patent or
31 application or, in general, any interest or instrument
32 commonly known as a "security" or any certificate for,
33 receipt for, guarantee of, or option, warrant or right to
34 subscribe to or purchase any of the foregoing, but not
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1 including any instrument which contains voting rights or
2 which can be converted to contain voting rights in the
3 possession of the Department.
4 (Source: P.A. 88-453.)
5 (20 ILCS 700/1004) (from Ch. 127, par. 3701-4)
6 Sec. 1004. Duties and powers. The Department of
7 Commerce and Community Affairs shall establish and administer
8 any of the programs authorized under this Act subject to the
9 availability of funds appropriated by the General Assembly.
10 The Department may a Challenge Grant Program and an Advanced
11 Technology Investment Program and shall make awards from
12 general revenue fund appropriations, federal reimbursement
13 funds, the Technology Cooperation Fund, and the New
14 Technology Recovery Fund as provided under the provisions of
15 this Act. The Department, in addition to those powers
16 granted under The Civil Administrative Code of Illinois, is
17 granted the following powers to help administer the
18 provisions of this Act:
19 (a) To provide financial assistance as direct or
20 participation grants, loans or qualified security investments
21 to, or on behalf of, eligible applicants. Loans, grants and
22 investments shall be made for the purpose of increasing
23 research and development, commercializing technology,
24 adopting advanced production and processing techniques, and
25 promoting job creation and retention within Illinois;
26 (b) To enter into agreements, accept funds or grants,
27 and engage in cooperation with agencies of the federal
28 government, local units of government, universities, research
29 foundations or institutions, regional economic development
30 corporations or other organizations for the purposes of this
31 Act;
32 (c) To enter into contracts, and letter of credit
33 agreements, and memoranda of understanding; and to provide
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1 funds for participation agreements or to make any other
2 agreements or contracts or to invest, grant, or loan funds to
3 any participating intermediary organizations including,
4 not-for-profit entities, for-profit entities, State agencies
5 or authorities, government owned and contract operated
6 facilities, institutions of higher education, other lender,
7 private investor, public or private development corporations
8 corporation, or other entities entity necessary or desirable
9 to further the purpose of this Act. Any such agreement or
10 contract by an intermediary organization to deliver programs
11 authorized under this Act may include terms and provisions
12 including, but not limited to organization and development of
13 documentation, review and approval of projects, servicing and
14 disbursement of funds and other related activities;
15 (d) To fix, determine, charge and collect any premiums,
16 fees, charges, costs and expenses, including without
17 limitation, any application fees, commitment fees, program
18 fees, financing charges, or publication fees in connection
19 with the Department's activities under this Act;
20 (e) To establish forms for applications, notifications,
21 contracts, or any other agreements, and to promulgate
22 procedures, rules or regulations deemed necessary and
23 appropriate;
24 (f) To establish and regulate the terms and conditions
25 of the Department's agreements and to consent, subject to the
26 provisions of any agreement with another party, to the
27 modification or restructuring of any agreement to which the
28 Department is a party;
29 (g) To require that recipients of financial assistance
30 shall at all times keep proper books of record and account in
31 accordance with generally accepted accounting principles
32 consistently applied, with such books open for reasonable
33 Department inspection and audits, including, without
34 limitation, the making of copies thereof;
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1 (h) To require applicants or grantees receiving funds
2 under this Act to permit the Department to: (i) inspect and
3 audit any books, records or papers related to the project in
4 the custody or control of the applicant, including the making
5 of copies or extracts thereof, and (ii) inspect or appraise
6 any of the applicant's or grantee's business assets;
7 (i) To require applicants or grantees, upon written
8 request by the Department, to issue any necessary
9 authorization to the appropriate federal, State or local
10 authority for the release of information concerning a
11 business or business project financed under the provisions of
12 this Act, with the information requested to include, but not
13 be limited to, financial reports, returns, or records
14 relating to that business or business project;
15 (i-5) To provide staffing, administration, and related
16 support required to manage the programs authorized under this
17 Act and to pay for staffing and administration from the New
18 Technology Recovery Fund as appropriated by the General
19 Assembly. Administrative responsibilities may include, but
20 are not limited to, research and identification of the needs
21 of commerce and industry in this State; design of
22 comprehensive statewide plans and programs; direction,
23 management, and control of specific projects; and
24 communication and cooperation with entities about technology
25 commercialization and business modernization;
26 (j) To take whatever actions are necessary or
27 appropriate to protect the State's interest in the event of
28 bankruptcy, default, foreclosure or noncompliance with the
29 terms and conditions of financial assistance or participation
30 required under this Act, including the power to sell,
31 dispose, lease or rent, upon terms and conditions determined
32 by the Director to be appropriate, real or personal property
33 which the Department may receive as a result thereof; and
34 (k) exercise such other powers as are necessary to
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1 carry out the purposes of this Act.
2 (Source: P.A. 88-453.)
3 (20 ILCS 700/2001) (from Ch. 127, par. 3702-1)
4 Sec. 2001. Technology Challenge Grant Program.
5 (a) The Department may shall, subject to appropriated
6 funds, establish a Technology Challenge Grant Program to
7 provide initial grant funding requirements to help secure
8 federal research and development projects for this State and
9 to identify and develop technology programs capable of
10 commercialization or establish one or more programs
11 authorized under this Article as part of its Technology
12 Challenge Grant Program Initiative to serve as a catalyst and
13 assure a strong base to develop, transfer, or commercialize
14 new technologies. The Department shall, pursuant to Section
15 2003 of this Article, evaluate which grant applications best
16 serve the economic and technological objectives of the State.
17 (b) Grants shall be awarded from appropriations made for
18 that purpose to: (i) universities, colleges, community
19 colleges, nonprofit research foundations or laboratories,
20 State research institutions, industry technology
21 associations, or (ii) technology partnerships or technology
22 consortiums established by a formal joint project agreement
23 between: (1) two or more private industries, or (2) any
24 combination of one or more private industries with one or
25 more universities, colleges, community colleges, nonprofit
26 research laboratories, nonprofit research foundations, or
27 State research institutions, or (iii) any private enterprise
28 developing or commercializing technology or leveraging
29 federal technology development financing, including, but not
30 limited to, the small business innovative research program.
31 (Source: P.A. 88-453.)
32 (20 ILCS 700/2002) (from Ch. 127, par. 3702-2)
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1 Sec. 2002. Grant purposes.
2 (a) Grants authorized under this Article shall be
3 awarded only for the following purposes: (i) applied
4 innovation research that provides initial grant funding to
5 help serve critical research and development projects to
6 respond to unique, advanced technology projects for which no
7 other source of funding is available and which foster the
8 development of Illinois' economy through the advancement of
9 the State's economic, scientific, and technological assets,
10 or which are recognized as technology programs of exemplary
11 and outstanding research in the field of science and
12 technology; or (ii) to assist eligible applicants in the
13 State apply for, or qualify for and leverage, federal funds
14 awarded for advanced technology projects concerning research
15 and development, business innovation research or technical
16 development, or the transfer of useful technology to the
17 private sector; (ii) university and industry partnerships
18 that create high-skill employment opportunities and
19 internship activities in the communities that enable
20 graduates and faculty to stay in Illinois and university and
21 industry initiatives that strengthen the relationship between
22 industry and academia in Illinois so that applied university
23 research is responsive to the needs of the various state
24 industries and industry clusters; (iii) centers of excellence
25 in technology commercialization, innovation evaluation, and
26 intellectual property management that encourages the growth
27 of new enterprises based on technologies developed at
28 Illinois research centers including to fund technology
29 partnerships, technology consortiums or research centers and
30 industry technology associations that are, or will be,
31 established to perform research and development in present
32 and emerging technologies that can be developed for use by
33 commerce and industry; and (iv) , or to transfer technology
34 transfer projects involving promotion of new or innovative
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1 technologies among small and medium-sized Illinois
2 manufacturers where the technologies have immediate
3 commercial application; and conduct training and information
4 dissemination that is directly applicable to small and
5 medium-sized Illinois manufacturer needs; or information
6 transfer to Illinois based research institution regarding
7 best practice in industrial commercialization of technology
8 developments; (v) planning and operational support for
9 statewide support that improve practices in technology
10 commercialization including and (iv) to assist in the needs
11 assessment and evaluation of the status of technology
12 implementation throughout the State.
13 (b) Grants awarded pursuant to this Article may be used
14 to help subsidize expenses, as approved by the Department,
15 for capital improvements, equipment, contractual services,
16 commodities, personnel, support costs, including
17 telecommunication, electronic data and commodities, or other
18 costs.
19 (Source: P.A. 88-453.)
20 (20 ILCS 700/2003) (from Ch. 127, par. 3702-3)
21 Sec. 2003. Grant evaluation and amounts.
22 (a) The Department shall evaluate grant applications
23 based upon criteria provided under this Section. The
24 Department shall not award any Challenge Grant that is not
25 recommended for funding by the Illinois Governor's Science
26 and Technology Advisory Committee and the Illinois or
27 associated private sector Coalition. In determining which
28 grant applicants shall be awarded a Challenge Grant, the
29 Department shall conduct an evaluation of prior compliance
30 with loan or grant agreements for any grant applicant
31 previously funded by the Department. In addition, the
32 Department shall consider the following criteria in
33 determining grant awards: the relationship of a proposed
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1 advanced technology project to the State's future economic
2 growth; the qualifications and expertise of consultants,
3 firms or organizations undertaking the effort; the potential
4 for leveraging federal or private research dollars, or both,
5 for the initiative; the extent of the capacity of the
6 applicant or the applicant partnership or consortium to
7 finance the initiative; the potential for adapting,
8 commercializing or adopting the results of the applicant's
9 project for the economic benefit of the State; and the
10 likelihood that the project has a potential for creating new
11 jobs or retaining current jobs in the State.
12 (b) The Director of the Department shall determine the
13 level of the grant award and shall determine the share of
14 total directly attributable costs of an advanced technology
15 project which may be considered for funding under this
16 Article.
17 (c) The Department and the Department of Natural
18 Resources are hereby authorized to cooperate with and provide
19 support to the Illinois Governor's Science and Technology
20 Advisory Committee and the Illinois its associated private
21 sector Coalition. Such support may include the provision of
22 office space and may be technical, advisory or operational in
23 nature.
24 (Source: P.A. 89-445, eff. 2-7-96; revised 12-2-98.)
25 (20 ILCS 700/Art. 3 heading)
26 ARTICLE 3. ILLINOIS ADVANCED TECHNOLOGY
27 ENTERPRISE DEVELOPMENT AND INVESTMENT PROGRAM
28 (20 ILCS 700/3001) (from Ch. 127, par. 3703-1)
29 Sec. 3001. Illinois Advanced Technology Enterprise
30 Development and Investment Program. The Department shall,
31 subject to appropriated funds, establish an Advanced
32 Technology Enterprise Development Investment Program to: (i)
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1 provide investments, loans, or qualified security investments
2 to or on behalf of young or growing businesses, in
3 cooperation with private investment companies, private
4 investors or conventional lending institutions which also
5 assume a portion of the investment loan or financing for a
6 business project, or on behalf of new or emerging business
7 through financial intermediaries as they commercialize
8 advanced technology projects; (ii) fund regional technology
9 enterprise development centers that make available resources
10 and expertise in furthering the technical or managerial
11 skills of owners; aid the ventures in locating financing; and
12 help new companies with product development and marketing
13 provide loans to, or on behalf of, the State's mature, small
14 or medium-sized businesses for the modernization and
15 installation of advanced technologies or processes which will
16 improve the business' production systems and work
17 organization, which in turn will preserve and create private
18 sector jobs by increasing the firm's long-term competitive
19 viability; (iii) provide grants to, or on behalf of,
20 Illinois' mature, small or medium-sized businesses
21 undertaking feasibility studies, competitiveness assessments
22 and productivity audits to restore their businesses'
23 competitiveness; and (iv) provide qualified investments,
24 loans or grants to development credit corporations, financial
25 intermediaries or other entities whose purpose includes
26 financing, promoting or encouraging commercialization,
27 adoption or implementation of advanced technologies,
28 processes or products.
29 (Source: P.A. 86-870.)
30 (20 ILCS 700/3002) (from Ch. 127, par. 3703-2)
31 Sec. 3002. Investment requirements. Any direct
32 financial assistance shall:
33 (a) Be awarded only if other financing with respect to
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1 the business project is provided. Other financing may be in
2 the form of any loan, equity position, convertible preferred
3 stock, letter of credit, guarantee, limited partnership
4 interest, bond purchase or any other form approved by the
5 Department;
6 (b) Be protected by adequate security. Financial
7 assistance may be secured by first or second mortgage
8 positions on real or personal property, by royalty payments,
9 by personal notes or guarantees, or by any other security
10 satisfactory to the Department to secure repayment, if
11 required, by the financial assistance agreement;
12 (c) Be in such principal amount and form, and contain
13 such terms and provisions with respect to the property,
14 insurance, repairs, alteration, payment of taxes and
15 assessments, delinquency charges, default remedies,
16 additional security and other matters as the Department shall
17 determine adequate to protect the public interest.
18 (Source: P.A. 88-453.)
19 (20 ILCS 700/3003) (from Ch. 127, par. 3703-3)
20 Sec. 3003. Applications.
21 (a) An application for direct financial assistance shall
22 be submitted to the Department in accordance with forms and
23 filing fees prescribed by the Department. The application
24 may require facts about the company's history, job
25 opportunities, stability of employment, past and present
26 condition and structure, actual and pro-forma income
27 statements, present and future market prospects and
28 management qualification, and any other facts deemed material
29 to the financing request. The Department shall obtain such
30 additional information concerning the application as it deems
31 necessary and diligent.
32 The Department may create a credit review committee which
33 shall, on the basis of the application, and any other
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1 information, prepare a report concerning the
2 credit-worthiness of the proposed borrower, the financial
3 commitment of other investors, the manner in which the
4 proposed business project will advance the economy of the
5 State, and the soundness of the proposed financial assistance
6 agreement.
7 After consideration of such report, and after such other
8 action as it deems appropriate, the Department shall approve
9 or deny the application. If the Department approves the
10 application, its approval shall specify the amount of funds
11 to be provided and the financial assistance agreement
12 provisions which shall apply to the applicant. The applicant
13 shall be promptly notified of such action by the Department.
14 (b) The Department may, subject to available
15 appropriated funds, provide grants or investments in
16 revolving fund portfolios with intermediary organizations or
17 participating lenders or investors. The financial assistance
18 may be made available to intermediaries that assume a
19 responsibility for the administration of the projects funded
20 through the grant or investment.
21 Applications shall be submitted to the Department in
22 accordance with forms and filing fees prescribed by the
23 Department. The application may require facts about the
24 intermediary's history, past, and present condition and
25 structure, actual, and pro-forma income statements, present
26 and future market prospects and management qualification, and
27 any other facts deemed material to the financing request.
28 (Source: P.A. 86-870.)
29 (20 ILCS 700/3004) (from Ch. 127, par. 3703-4)
30 Sec. 3004. Investment purpose.
31 (a) Direct qualified investments, loans, or
32 participation investments in loan and investment or loan
33 portfolios with financial intermediaries authorized by this
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1 Article 1 of this Act may be made for the purpose of
2 financing any new process, technique, product, service or
3 device which is, or which may be, capable of being reduced to
4 practice, and which is, or which may be, commercially
5 exploitable by (i) young new or growing Illinois businesses
6 or (ii) to help applicants who have qualified for Federal
7 Small Business Innovation Research funds.
8 Financial assistance proceeds may be used for expenses
9 that include, but are not limited to, costs incurred for
10 research and development, amortizable organizational costs,
11 working capital financing, the purchase or lease of machinery
12 and equipment, and the acquisition, improvement or
13 rehabilitation of land and buildings. In determining if
14 direct or participation qualified security investments or
15 loans are to be made, the Department shall find that there is
16 a likelihood of commercial feasibility given the state of
17 development of the proposed product, process, or technical
18 device, and that there is a likelihood of increased job
19 opportunities in the near term as a result of the security
20 investment. Direct qualified security investments or
21 investment loans the Department's participation in the
22 qualified security investment or loan portfolio of an
23 authorized financial intermediary for an eligible applicant
24 shall not be made for more than $500,000 and shall not be
25 made for more than 50% of the business project costs unless
26 the Director determines that a waiver of these limits is
27 required to meet the purpose of this Act. In making a
28 determination to participate in an the qualified security
29 investment or loan portfolio of an authorized participating
30 lender or investor financial intermediary on behalf of
31 eligible applicants, the Department shall find that the
32 administering financial intermediary is capable of
33 effectively evaluating the commercialization feasibility of
34 the proposed product, process, service or technical device
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1 technology and the likelihood of increased job creation
2 impact that may result from project financing. In no
3 instance shall the Department's participation in an the
4 qualified investment or and loan portfolio of any authorized
5 participating lender or investor financial intermediary
6 exceed $2,000,000 at one time.
7 (b) A loan made for company modernization or retooling
8 may be for any purpose consistent with the objectives of this
9 Act including, but not limited to, purchases of advanced
10 machinery, equipment and tooling; organizational expenses for
11 services, personnel training, corporate restructuring;
12 working capital; acquisition, improvement or rehabilitation
13 of land and buildings which are an integral part of a new
14 production or process technology; or any other business
15 expense reasonably related to the project. In determining if
16 a loan is to be provided, the Department shall determine
17 whether there will be an expected improvement in production
18 levels, quality of output or timeliness of delivery and that
19 the number of jobs to be created or retained is reasonable in
20 relation to the loan funds requested. A loan to eligible
21 applicants for modernization or retooling shall not be made
22 for more than $500,000 or for more than 25% of the business
23 project costs unless the Director of the Department
24 determines that a waiver of these limits is required to meet
25 the purposes of this Act.
26 (c) Grants may be made for the purpose of financing
27 feasibility studies, competitive assessments or productivity
28 services which the Department determines may result in
29 technology enhancement, retooling, restructuring or other
30 competitiveness improvements. In determining the amount of a
31 grant, the Department shall: (i) examine the level of
32 expertise of the consultant or firm undertaking the
33 feasibility study or competitive assessment; (ii) evaluate
34 the likelihood of an applicant's proposed feasibility study
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1 or competitive assessment resulting in a substantial
2 improvement in the applicant's operations; (iii) determine
3 whether that improvement will result in the creation or
4 retention of jobs. Grants to eligible applicants shall not
5 exceed $100,000 or 50% of the project costs unless the
6 Director of the Department determines that a waiver of these
7 limits is required to meet the purposes of this Act.
8 (Source: P.A. 88-453.)
9 (20 ILCS 700/3004.5 new)
10 Sec. 3004.5. Illinois Technology Enterprise Centers
11 Requirements.
12 (a) The Department may, subject to available
13 appropriated funds, working with the Illinois Coalition,
14 establish one or more regional technology enterprise
15 development centers whose mission is to assist entrepreneurs,
16 innovators, and start-up firms in high-growth, high
17 technology sectors in furthering the technical or managerial
18 skills of owners; aid the ventures in locating financing; and
19 help new companies with product development and marketing in
20 support of new venture formation within the State.
21 (b) The Department may provide grants or may provide
22 cost share or reimbursements pursuant to this Section to
23 support the operation of technology enterprise development
24 centers. Grants awarded pursuant to this Article may be used
25 to help subsidize expenses, as approved by the Department,
26 for revolving funds, personnel, support costs, capital
27 improvements, equipment, contractual services, commodities,
28 including telecommunication or other costs.
29 (c) Technology enterprise development centers may
30 provide crucial business information at affordable prices for
31 firms that are developing early-stage, technology-oriented
32 manufacturing including (i) general or short-term assistance,
33 general outreach, feasibility studies for new venture
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1 formation, and research assistance for new venture creation;
2 (ii) innovation evaluation and market research to evaluate
3 the viability of technology, product, or service or the
4 market potential of technology, product, or service; (iii)
5 technical assistance related to management and operations and
6 strategic partnering and assistance in the implementation of
7 strategic manufacturing and marketing alliances; and (iv)
8 service in locating new technologies or technological
9 solutions.
10 (d) Technology enterprise development centers may
11 provide financial services that include (i) financial
12 packaging to enhance proposals and make companies more
13 competitive for federal or private funding; (ii) access to
14 private investor capital through venture capital events and
15 regional venture capital networking programs; and (iii)
16 management of local for-profit or limited profit seed capital
17 funds.
18 (e) Technology enterprise development centers may address
19 local shortfalls of capital to commercialize new technology
20 by providing pre-seed financing to start-up, technology-based
21 businesses. Financing options could include micro-loans,
22 small grants, and equity investment capital for seed funding,
23 product commercialization and prototype development, and
24 commercial introduction and marketing.
25 (f) The Department may provide grant funds made
26 available to support professional development and capacity
27 building of the technology enterprise development centers
28 within the State as may be required for the administration,
29 operations, research, analysis, or training of the centers.
30 (g) In determining which applicants shall be awarded a
31 grant, the Department shall conduct an evaluation of prior
32 compliance with loan or grant awards; the relationship of a
33 proposed project to the State's future economic growth; the
34 qualifications and expertise of organizations undertaking the
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1 effort; the applicant's understanding of the requirements and
2 needs of entrepreneurs, innovators, and start-up firms in
3 high-growth, high technology sectors; the potential of the
4 applicant's project to provide an economic benefit of the
5 State; and the likelihood that the project has a potential
6 for creating new ventures in the State.
7 (h) The Director of the Department shall determine the
8 level of the grant award and shall determine the share of
9 total directly attributable costs of the project that may be
10 considered for funding under this Article.
11 (20 ILCS 700/Art. 3.5 heading new)
12 ARTICLE 3.5. BUSINESS MODERNIZATION INITIATIVE
13 (20 ILCS 700/3501 new)
14 Sec. 3501. Business Modernization Initiative. The
15 Department may create one or more programs under this Article
16 to assist the State's existing mature business and industry
17 base to adopt and use appropriate technologies. The programs
18 may vary in breadth of activities, services, and projects in
19 accordance with the level or complexity of the manufacturers'
20 needs or problems. The Department's programs shall emphasize
21 the provision of comprehensive assistance.
22 (20 ILCS 700/3505 new)
23 Sec. 3505. Modernization Retooling Loan Program.
24 (a) The Department may establish, subject to available
25 appropriated funds, a loan program that will improve
26 businesses' production systems and work organization to
27 preserve and create private sector jobs by increasing the
28 firms' long-term competitive viability. The program may
29 provide loans to, or on behalf of, the State's mature, small,
30 or medium-sized businesses for the modernization and
31 installation of advanced technologies or processes.
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1 (b) A loan made for company modernization or retooling
2 may be for any purpose consistent with the objectives of this
3 Act including, but not limited to, purchases of advanced
4 machinery, equipment, and tooling; organizational expenses
5 for services, personnel training, and corporate
6 restructuring; working capital; acquisition, improvement,
7 or rehabilitation of land and buildings that are an integral
8 part of a new production or process technology; or any other
9 business expense reasonably related to the project. No loan
10 made by the Department shall be used to pay for the
11 retirement of previous debt unless the debt is a part of the
12 purchase or lease of machinery or equipment that is being
13 upgraded.
14 (c) In determining if a loan is to be provided, the
15 Department shall determine whether there will be an expected
16 improvement in production levels, quality of output, or
17 timeliness of delivery and that the number of jobs to be
18 created or retained is reasonable in relation to the loan
19 funds requested. A loan to an eligible applicant for
20 modernization or retooling shall not be made for more than
21 $500,000 or for more than 25% of the business project costs
22 unless the Director determines that a waiver of these limits
23 is required to meet the purposes of this Act.
24 (20 ILCS 700/3510 new)
25 Sec. 3510. Development Corporation Program.
26 (a) The Department may provide, subject to available
27 appropriated funds, financial assistance to the State's
28 mature, small, or medium-sized businesses through development
29 corporations that assume a responsibility for the
30 administration of the loan projects for the modernization and
31 installation of advanced technologies.
32 (b) Development corporation financial assistance may be
33 in the form of direct loans, grants, or purchases of
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1 qualified security investments or financial assistance.
2 Development credit corporations, financial intermediaries, or
3 other entities whose purpose includes financing, promoting,
4 or encouraging commercialization, adoption, or implementation
5 of advanced technologies, processes, or products, as
6 determined by the Department, may participate in this
7 program.
8 (c) Financial assistance authorized under this Section
9 shall be used by the development corporation for loans or
10 investments to firms to improve the businesses' production
11 systems and work organization that will preserve and create
12 private sector jobs by increasing the firms' long-term
13 competitive viability and may be used for the planning and
14 operation of the development corporation as approved by the
15 Department through its agreement with the development
16 corporation.
17 (d) The Department is authorized to rely upon, and may
18 provide for in the execution of an agreement, the
19 participating lender's or investor's review on behalf of the
20 State and approval of the credit, collateral security, and
21 documentation; determination of eligibility, economic results
22 expected, and the prospects for viability and repayment; the
23 collection and use of fees, premiums, or charges; the
24 organization, servicing, and disbursement of financial
25 assistance; and such other purposes and activities as the
26 Department, in its sole discretion, shall determine to be
27 reasonable, appropriate, and consistent with the purposes of
28 this Article.
29 (20 ILCS 700/3515 new)
30 Sec. 3515. Modernization grants.
31 (a) Subject to available appropriated funds,
32 modernization grants may be made for the purpose of
33 financing, competitive assessments, or productivity
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1 improvement services that the Department determines may
2 result in technology enhancement, retooling, restructuring,
3 or other competitiveness improvements. Grants may be made
4 to, or on behalf of, Illinois' mature, small, or medium-sized
5 businesses for (i) undertaking feasibility studies,
6 competitiveness assessments, and productivity audits to
7 restore their businesses' competitiveness or (ii) the
8 modernization and installation of advanced manufacturing
9 systems or processes that will improve the businesses'
10 production systems and work organization, or will preserve
11 and create private sector jobs by increasing the firms'
12 long-term competitive viability.
13 (b) Assistance authorized under this Section may be in
14 the form of direct grant agreements, agreements with private
15 sector consultants on behalf of a firm, or agreements with
16 participating intermediary organizations as authorized under
17 Article 1.
18 (c) In determining the amount of a modernization grant,
19 the Department shall: (i) examine the level of expertise of
20 the consultant or firm undertaking the competitiveness
21 assessment or productivity improvement services; (ii)
22 evaluate the likelihood of an applicant's proposed
23 competitiveness assessment or productivity improvement
24 services resulting in a substantial improvement in the
25 applicant's operations; and (iii) determine whether
26 improvement will result in the creation or retention of jobs.
27 Modernization grants to eligible applicants shall not exceed
28 $100,000 or 50% of the project costs, unless the Director
29 determines that a waiver of these limits is required to meet
30 the purposes of this Act.
31 (20 ILCS 700/3520 new)
32 Sec. 3520. Manufacturing Extension Program.
33 (a) The Department may establish, subject to available
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1 appropriated funds, a program of statewide manufacturing
2 extension centers serving the geographic needs of the State's
3 manufacturers, whose mission is to assist small or
4 medium-sized manufacturers with technological advancement,
5 for continuous improvement of business practices for these
6 firms to be better positioned to succeed against global
7 competition.
8 (b) The Department may provide grants or may provide
9 cost share or reimbursements under this Section to support
10 the operation of manufacturing extension deliverers,
11 including organizations financed through a federal
12 manufacturing extension partnership program. Manufacturing
13 extension deliverers can include universities and colleges,
14 regional or sectorial based organizations, technical
15 societies, or other similar groups.
16 (c) The Department may provide grant funds made
17 available under this Act to support professional development
18 and capacity building of the manufacturing extension system
19 within the State as may be required for the administration,
20 operations, research, analysis, promotion, or training of
21 geographic based manufacturing extension centers.
22 (d) In determining which applicants shall be awarded a
23 grant, the Department shall conduct an evaluation of prior
24 compliance with awards programs; the relationship of a
25 proposed project to the State's future economic growth; the
26 qualifications and expertise of organizations undertaking the
27 effort; the applicant's understanding of the requirements and
28 needs of the target groups served; the potential of the
29 applicant's project to provide an economic benefit of the
30 State; the methods engaged to measure and track performance;
31 and the likelihood that the project has a potential for
32 improving the competitiveness of small and mid-sized
33 manufacturers.
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1 (20 ILCS 700/3525 new)
2 Sec. 3525. Manufacturing and Export Base Services.
3 (a) The Department may, subject to available appropriated
4 funds, establish a program of statewide assistance to the
5 manufacturing and services export base of the State serving
6 the sector-wide needs of small and medium-sized companies.
7 (b) The Department may provide grants, cost share funds,
8 or reimbursements: to State or substate programs providing
9 better access to information; to reduce the impediments to
10 the flow of technical information; and to provide Illinois
11 manufacturers, producer firms, and export services firms with
12 better or more timely access to the State's and the nation's
13 technology base, including industrial and engineering
14 consulting practices, university and research laboratory
15 based engineers, private commercial product vendors, and
16 other sources of technology or non-technology services.
17 (c) The Department may provide grants to those private,
18 public, and non-profit research institutions and
19 organizations that agree to serve as an intermediary to
20 achieve the purpose set forth in this Section that continues
21 to ensure Illinois' economic vitality and competitiveness.
22 (d) The Department may seek out applicants that may be
23 considered for a grant, and may provide an award based on the
24 qualifications and expertise of organizations undertaking the
25 effort, the applicants understanding of the requirements and
26 needs of the target groups served, and the likelihood that
27 the proposed project will improve the State's future economic
28 potential.
29 (20 ILCS 700/3530 new)
30 Sec. 3530. Eligible applicants; forms of assistance.
31 Financial assistance may be made to, or on behalf of, any
32 for-profit entity, sole proprietorship, partnership,
33 corporation, or joint venture carrying on business, or
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1 organized to carry on business, in this State. Financial
2 assistance authorized under this Article may be made
3 available to not-for-profit organizations, including
4 educational agencies, business or trade associations,
5 economic development organizations, and participating
6 lenders, in the form of participation agreements, direct
7 loans, grant agreements, purchases of qualified security, or
8 any other form as determined by the Department.
9 (20 ILCS 700/4003) (from Ch. 127, par. 3704-3)
10 Sec. 4003. Federal programs. The Department is authorized
11 to accept and expend federal monies in furtherance of this
12 Act and to use funds appropriated under this Act for programs
13 pending reimbursement from federal funds, except that the
14 terms and conditions established under this Act, which are
15 inconsistent with or prohibited by the federal authorization
16 under which such monies are made available, shall not apply
17 with respect to the expenditure of such monies.
18 (Source: P.A. 86-870.)
19 ARTICLE 10.
20 Section 10-5. The Civil Administrative Code of Illinois
21 is amended by changing Section 46.32a as follows:
22 (20 ILCS 605/46.32a) (from Ch. 127, par. 46.32a)
23 Sec. 46.32a. Labor-management-community relations.
24 (a) Because economic development investment programs
25 must be supplemented with efforts to maintain a skilled,
26 stable, and diverse workforce able to meet the needs of new
27 and growing business enterprises, the Department shall
28 promote better labor-management-community and government
29 operations by providing labor-management relations and
30 provide assistance in the development of local
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1 labor-management-community labor-management committees and
2 coalitions established to address employment issues facing
3 families and by helping Illinois current and prospective
4 employers attract and retain a diverse and productive
5 workforce through the promotion and support of dependent care
6 policies and programs in the workplace and community.
7 In the Department there shall be a
8 Labor-Management-Community Labor-Management Cooperation
9 Committee composed of 18 12 public members appointed by the
10 Governor with the advice and consent of the Senate. Six
11 members shall represent executive level management of
12 businesses, that employ labor union members and 6 members
13 shall represent major labor union leadership, and 6 members
14 shall represent community leadership. The Governor shall
15 designate 1 business representative and 1 labor
16 representative as cochairmen. Appointed members shall not be
17 represented at a meeting by another person. There shall be 9
18 ex officio 6 ex officio nonvoting members: the Director of
19 the Department, who shall serve as Secretary, the Director of
20 the Department of Labor, the Secretary of Human Services, the
21 Director of Public Health, the Director of Employment
22 Security, the President of the Senate, the Minority Leader of
23 the Senate, the Speaker of the House of Representatives and
24 the Minority Leader of the House of Representatives. Each ex
25 officio member shall serve during the term of his or her
26 office. Ex officio members may be represented by duly
27 authorized substitutes.
28 In making the initial public member appointments to the
29 Committee, 3 of the business representatives and 3 of the
30 labor union representatives shall be appointed for terms
31 expiring July 1, 1987. The remaining public members shall be
32 appointed for terms expiring July 1, 1988. The public
33 members appointed under this amendatory Act of the 91st
34 General Assembly shall be divided into 2 groups with the
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1 first group having terms that expire on July 1, 2002 and the
2 second group having terms that expire on July 1, 2003.
3 Thereafter, public members of the Committee shall be
4 appointed for terms of 2 years expiring on July 1, or until
5 their successors are appointed and qualified. The Governor
6 may at any time, with the advice and consent of the Senate,
7 make appointments to fill vacancies for the balance of an
8 unexpired term. Public members shall serve without
9 compensation, but shall be reimbursed by the Department for
10 necessary expenses incurred in the performance of their
11 duties. The Department shall provide staff assistance to the
12 Committee.
13 The Committee shall have the following duties:
14 (1) to improve communications between labor, and
15 management, and communities on significant economic
16 problems facing the State especially with respect to
17 identifying new ways to attract and retain employees and
18 provide an environment in which employees can do their
19 best work;
20 (2) to encourage and support the development of
21 local labor, management, and community labor-management
22 committees at the plant, industry and area levels across
23 the State and encourage and support the development of
24 local coalitions to support the implementation of
25 family-friendly policies in the workplace;
26 (3) to assess the progress of area
27 labor-management-community labor-management committees
28 and local coalitions that have been formed across the
29 State and provide input to the Governor and General
30 Assembly Director of the Department concerning matching
31 grants to area labor-management committees or other grant
32 programs established in this Act;
33 (4) to convene a Statewide conference on
34 labor-management-community labor-management concerns at
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1 least once every 2 years and to convene a series of
2 regional work, family, and community planning conferences
3 throughout the State for employers, unions, and community
4 leaders to form local coalitions to share information,
5 pool resources, and address work and family concerns in
6 their own communities;
7 (5) to issue a report on labor-management-community
8 and employment-related family labor-management concerns
9 to the Governor and the General Assembly every 2 years
10 commencing in March of 1987. This report shall outline
11 the accomplishments of the Committee and specific
12 recommendations for improving Statewide
13 labor-management-community labor-management relations and
14 supporting the adoption of family-friendly work practices
15 throughout the State;.
16 (6) to advise the Department on dependent care and
17 other employment-related family initiatives; and
18 (7) to advise the Department on other initiatives
19 to foster maintenance and development of productive,
20 stable, and diverse workforces to supplement and advance
21 community and State investment-based economic development
22 programs.
23 (b) The Director, with the advice of the
24 Labor-Management-Community Labor-Management Cooperation
25 Committee, shall have the authority to provide grants to
26 employee coalitions or other coalitions that enhance or
27 promote work and family programs and address specific
28 community concerns, and to provide matching grants, grants
29 and other resources to establish or assist area
30 labor-management-community labor-management committees and
31 other projects which serve to enhance
32 labor-management-community labor-management relations. The
33 Department shall have the authority, with the advice of the
34 Labor-Management-Community Labor-Management Cooperation
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1 Committee, to award grants or matching grants in the
2 following four areas:
3 (1) To provide At least 60 percent of the annual
4 appropriation to the Department, for providing
5 labor-management grants and resources shall be awarded as
6 labor-management committees.
8 To be eligible for matching grants pursuant to this
9 subsection, local labor-management-community
10 labor-management committees shall:
11 (i) Be a formal, not-for-profit organization
12 structured for continuing service with voluntary
13 membership;
14 (ii) Be composed of labor, and management, and
15 community representatives;
16 (iii) Service a distinct and identifiable
17 geographic region;
18 (iv) Be staffed by a professional chief
19 executive officer;
20 (v) Have been established with the Department
21 for at least 2 two years;
22 (vi) Operate in compliance with rules set
23 forth by the Department with the advice of the
24 Labor-Management-Community Labor-Management
25 Cooperation Committee; and
26 (vii) Ensure that its efforts and activities
27 are coordinated with relevant agencies, including
28 but not limited to the following:
29 Department of Commerce and Community Affairs
30 Illinois Department of Labor
31 Economic development agencies
32 Corridor councils
33 Planning agencies
34 Colleges, universities and community colleges
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1 U.S. Department of Labor
2 Statewide Job Training Partnership Act entities
3 or any successor federal workforce training and
4 development legislation.
5 Further, the purpose of the local
6 labor-management-community labor-management committees
7 will include, but not be limited to:
8 (i) Enhancing the positive
9 labor-management-community labor-management
10 relationship within the State, region, community
11 and/or work place;
12 (ii) Assisting in the retention, expansion and
13 attraction of businesses and jobs within the State
14 through special training programs, gathering and
15 dissemination of information and providing
16 assistance in local economic development efforts as
17 appropriate;
18 (iii) Creating and maintaining a regular
19 nonadversarial forum for ongoing dialogue between
20 labor, and management, and community representatives
21 to discuss and resolve issues of mutual concern
22 outside the realm of the traditional collective
23 bargaining process;
24 (iv) Acting as an intermediary for initiating
25 local programs between unions and employers which
26 would generally improve economic conditions in a
27 region;
28 (v) Encouraging, assisting and facilitating
29 the development of work-site and industry
30 labor-management-community labor-management
31 committees in the region.
32 Any local labor-management-community
33 labor-management committee meeting these criteria may
34 apply to the Department for annual matching grants,
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1 provided providing that the local committee contributes
2 at least 25 percent in matching funds, of which no more
3 than 50 percent shall be "in-kind" services. Funds
4 received by a local committee pursuant to this subsection
5 shall be used for the ordinary operating expenses of the
6 local committee.
7 (2) To provide Up to 20 percent of the annual
8 appropriation to the Department for providing
9 labor-management grants and resources may be awarded as
10 matching grants to local labor-management-community
11 labor-management committees which do not meet all of the
12 eligibility criteria set forth in subsection (1).
13 However, to be eligible to apply for a grant under this
14 subsection, the local labor-management-community
15 labor-management committee, at a minimum, shall:
16 (i) Be composed of labor, and management, and
17 community representatives;
18 (ii) Service a distinct and identifiable
19 geographic region;
20 (iii) Operate in compliance with the rules set
21 forth by the Department with the advice of the
22 Labor-Management-Community Labor-Management
23 Cooperation Committee;
24 (iv) Ensure that its efforts and activities
25 are directed toward enhancing the
26 labor-management-community labor-management
27 relationship within the State, region, community
28 and/or work place.
29 Any local labor-management-community
30 labor-management committee meeting these criteria may
31 apply to the Department for an annual matching grant,
32 provided providing that the local committee contributes
33 at least 25 percent in matching funds of which no more
34 than 50 percent shall be "in-kind" services. Funds
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1 received by a local committee pursuant to paragraph (2)
2 of subsection (b) of this Section shall be used for the
3 ordinary and operating expenses of the local committee.
4 Eligible committees shall be limited to three years of
5 funding under this subsection. With respect to those
6 committees participating in this program prior to
7 enactment of this amendatory Act of 1988 which fail to
8 qualify under paragraph (1) of subsection (b) of this
9 Section, previous years' funding shall be counted in
10 determining whether those committees have reached their
11 funding limit under this paragraph (2).
12 (3) To provide Up to 10 percent of the annual
13 appropriation to the Department for providing
14 labor-management grants and resources may be awarded as
15 grants to develop and conduct specialized education and
16 training programs of direct benefit to representatives of
17 labor, management, labor-management-community
18 labor-management committees and/or their staff. The type
19 of education and training programs to be developed and
20 offered will be determined and prioritized annually by
21 the Department, with the advice of the
22 Labor-Management-Community Labor-Management Cooperation
23 Committee. The Department will develop and issue an
24 annual request for proposals proposal detailing the
25 program specifications.
26 (4) To provide Up to 10 percent of the annual
27 appropriation to the Department for providing
28 labor-management grants and resources may be awarded as
29 grants for research and development projects related to
30 labor-management-community or employment-related family
31 labor-management issues. The Department, with the advice
32 of the Labor-Management-Community Labor-Management
33 Cooperation Committee, will develop and prioritize
34 annually the type and scope of the research and
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1 development projects deemed necessary.
2 (5) To provide grants of up to a maximum of $5,000
3 to support the planning of regional work, family, and
4 community planning conferences that will be based on
5 specific community concerns.
6 (6) To provide grants to initiate or support
7 recently created employer-led coalitions to establish
8 pilot projects that promote the understanding of the work
9 and family issues and support local workforce dependent
10 care services.
11 The Department is authorized to establish
12 applications, application procedures and promulgate any
13 rules deemed necessary in the administration of such
14 grants.
15 (c) To administer the grant programs created by this
16 Act, the Department shall establish an Office of Work and
17 Family Issues Labor-Management Cooperation. The purpose of
18 this office shall include, but not be limited to:
19 (1) To administer the grant programs, including
20 developing grant applications and requests for proposals
21 proposal, program monitoring and evaluation.
22 (2) To serve as State liaison with other state,
23 regional and national organizations devoted to promoting
24 labor-management-community labor-management cooperation
25 and employment-related family issues; disseminating
26 pertinent information secured through these state,
27 regional and national affiliations to local
28 labor-management-community labor-management committees,
29 the Labor-Management-Community Labor-Management
30 Cooperation Committee, employer coalitions, Illinois
31 Employment and Training Centers, and other interested
32 parties throughout the State.
33 (3) To provide technical assistance to area,
34 industry or work-site labor-management-community
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1 labor-management committees as requested.
2 (4) To serve as a clearinghouse for information
3 related to labor-management-community labor-management
4 cooperation.
5 (5) To serve as a catalyst to developing and
6 strengthening a partnership among local, state, regional
7 and national organizations and agencies devoted to
8 enhancing labor-management-community labor-management
9 cooperation and employment-related family issues.
10 (6) To provide any other programs or services which
11 enhance labor-management-community labor-management
12 cooperation or that may promote the adoption of
13 family-friendly workplace practices at companies located
14 within the State of Illinois as determined by the
15 Director with the advice of the
16 Labor-Management-Community Labor-Management Cooperation
17 Committee.
18 (7) To establish an Illinois Work and Family
19 Clearinghouse to disseminate best-practice work and
20 family policies and practices throughout the State,
21 including through the Illinois Employment and Training
22 Centers; to provide and develop a computerized database
23 listing dependent care information and referral services;
24 to help employers by providing information about options
25 for dependent care assistance, to conduct and compile
26 research on elder care, child care, and other
27 employment-related family issues in Illinois; and to
28 compile and disseminate any other information or services
29 that support the adoption of family-friendly workplace
30 practices at companies located in the State.
31 (Source: P.A. 88-456; revised 10-31-98.)
32 ARTICLE 15.
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1 Section 15-1. Short Title. This Article may be cited as
2 the Illinois Business Regulatory Review Act.
3 Section 15-5. Purpose. The General Assembly finds that
4 small businesses and their growth are critical to the
5 economic health of the State. Small businesses, more so than
6 larger firms, often need assistance to negotiate through
7 complex government forms, rules, and regulations. The
8 current overall business climate of the State would be made
9 more attractive and competitive and would otherwise benefit
10 from reductions in unnecessarily burdensome rules and
11 regulations. A formal method to generate private sector
12 analysis, input, and guidance on methods of regulatory review
13 for the Governor and executive agencies, the constitutional
14 officers, and the General Assembly is needed for this
15 purpose.
16 Section 15-10. Illinois Economic Development Board
17 responsibilities. In addition to its duties under the Civil
18 Administrative Code of Illinois and the Illinois Economic
19 Development Board Act, the Illinois Economic Development
20 Board shall form a Business Regulatory Committee to generate
21 private sector analysis, input, and guidance on methods of
22 regulatory assistance and review.
23 Section 15-15. Economic Development Board Regulatory
24 Committee membership. Membership, composition, bylaws, and
25 methods of operation of the Committee shall be determined by
26 the Board. At the determination of the Board, individual
27 small business owners and operators; national, State, and
28 regional organizations representative of small firms; and
29 representatives of existing State or regional councils of
30 business may be designated as members of this Business
31 Regulatory Committee.
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1 Section 15-20. Regulatory policy responsibilities of the
2 Committee. In addition to those duties and responsibilities
3 as directed by the Board, the Committee shall analyze,
4 determine, and report to the Board, so that the Board may
5 report to the Governor and executive agencies under the
6 control of the Governor, the constitutional officers, and the
7 General Assembly, overall methods of achieving greater small
8 business impact of the regulatory process the following
9 information:
10 (1) Identify specific ways in which existing
11 regulations and regulatory programs can be made more
12 responsive and responsible to small business.
13 (2) Identify more effective ways of eliciting
14 participation from the private sector in efforts to
15 simplify and clarify regulations so that they are not
16 overly complex or burdensome.
17 (3) Provide suggestions for involving small
18 business owners and their representatives in the
19 rulemaking process in a more meaningful way.
20 (4) Provide constructive suggestions for reducing
21 forms and paperwork particularly where they are
22 duplicative, overly complicated, or otherwise burdensome
23 for small business.
24 (5) Determine effective ways to communicate with
25 small business owners and to assist them in their
26 understanding and implementation of complex regulations.
27 (6) Recommend non-punitive methods of ensuring
28 compliance with regulatory objectives or requirements
29 including pre-inspection programs, advisory services,
30 education and training, and industry self-regulation.
31 Section 15-25. Regulatory review responsibilities of the
32 Business Regulatory Review Committee. At the direction and
33 request of the Board, the Committee shall review and analyze
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1 regulations and make specific recommendations, from the
2 perspective of cost and benefit, reasonableness and common
3 sense, and permissiveness of community economic growth and
4 development, on the following:
5 (1) Selected regulatory topics to provide guidance
6 to State agencies regarding the formulation of and
7 revision to specific rules and regulations.
8 (2) Existing and proposed rules and regulations for
9 the purpose of determining whether the rule is
10 excessively burdensome or imposes undue hardship on those
11 subject to the regulation.
12 (3) Whether the public benefit derived from a rule
13 or a proposed rule exceeds the increased public and
14 private cost of complying with the rule being imposed.
15 (4) Less restrictive, less costly, or less
16 burdensome means to achieve the same result.
17 Section 15-30. Advisory responsibilities of the Business
18 Regulatory Review Committee. At the direction and request of
19 the Board, the Committee shall provide the following advisory
20 assistance:
21 (1) To advise the Office of the Governor regarding
22 agency rulemaking and to offer recommendations that
23 improve the State rulemaking process, which may include
24 alternative standards that might be set for enforcement
25 by regulatory agencies.
26 (2) To advise the General Assembly about whether
27 the State should adopt small business regulatory
28 enforcement fairness legislation modeled after the
29 equivalent federal legislation and regarding how Illinois
30 laws compare with those of other states and how Illinois
31 might implement reforms adopting the better or best
32 practices of these other states.
33 (3) To advise the Department of Commerce and
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1 Community Affairs with the operations of the First Stop,
2 small business regulatory review, and similar department
3 programs.
4 (4) To advise relevant State agencies on the
5 formulation of federally required State rules.
6 Section 15-35. Support for Committee. The Committee
7 shall be provided staff support services by the Department of
8 Commerce and Community Affairs, the Office of the Governor,
9 and various regulatory agencies. Members of the Committee
10 shall serve without compensation, but may be reimbursed for
11 expenses.
12 Section 15-105. The Civil Administrative Code of
13 Illinois is amended by changing 46.19a as follows:
14 (20 ILCS 605/46.19a) (from Ch. 127, par. 46.19a)
15 Sec. 46.19a. Employment and technology grants.
16 (1) Grants to provide training in fields affected by
17 critical demands for certain skills may be made as provided
18 in this subsection.
19 (a) The Director of the Department may make grants
20 to eligible employers or to other eligible entities on
21 behalf of employers as authorized in paragraph (b) to
22 provide training for employees in fields for which there
23 are critical demands for certain skills.
24 (b) The Director may accept applications for
25 training grant funds and grant requests from: (i)
26 entities sponsoring multi-company eligible employee
27 training projects as defined in paragraph (c), including
28 business associations, strategic business partnerships,
29 institutions of secondary or higher education, large
30 manufacturers for supplier network companies, federal Job
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1 Training Partnership Act administrative entities or grant
2 recipients, and labor organizations when those projects
3 will address common training needs identified by
4 participating companies; and (ii) individual employers
5 that are undertaking eligible employee training projects
6 as defined in paragraph (c), including intermediaries and
7 training agents.
8 (c) The Director may make grants to eligible
9 applicants as defined in paragraph (b) for employee
10 training projects that include, but need not be limited
11 to, one or more of the following:
12 (i) training programs in response to new or
13 changing technology being introduced in the
14 workplace;
15 (ii) job-linked training that offers special
16 skills for career advancement or that is preparatory
17 for, and leads directly to, jobs with definite
18 career potential and long-term job security;
19 (iii) training necessary to implement total
20 quality management or improvement or both management
21 and improvement systems within the workplace;
22 (iv) training related to new machinery or
23 equipment;
24 (v) training of employees of companies that
25 are expanding into new markets or expanding exports
26 from Illinois;
27 (vi) basic, remedial, or both basic and
28 remedial training of employees as a prerequisite for
29 other vocational or technical skills training or as
30 a condition for sustained employment;
31 (vii) self-employment training of the
32 unemployed and underemployed with comprehensive,
33 competency-based instructional programs and services
34 , entrepreneurial education and training initiatives
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1 for youth and adult learners in cooperation with the
2 Illinois Institute for Entrepreneurial Education,
3 training and education, conferences, workshops, and
4 best practice information for local program
5 operators of entrepreneurial education and
6 self-employment training programs; and
7 (viii) other training activities, projects, or
8 both training activities and projects related to the
9 support, development, or evaluation of job training
10 programs, activities, and delivery systems,
11 including training needs assessment and design.
12 (d) Grants shall be made on the terms and
13 conditions that the Department shall determine, provided,
14 however, that no grant made under the provisions of
15 paragraph (c) of this subsection shall exceed 50% of the
16 direct costs of all approved training programs provided
17 by the employer or the employer's training agent or other
18 entity as defined in paragraph (b). Under this Section,
19 allowable costs include, but are not limited to:
20 (i) administrative costs of tracking,
21 documenting, reporting, and processing training
22 funds or project costs;
23 (ii) curriculum development;
24 (iii) wages and fringe benefits of employees;
25 (iv) training materials, including scrap
26 product costs;
27 (v) trainee travel expenses;
28 (vi) instructor costs, including wages, fringe
29 benefits, tuition, and travel expenses;
30 (vii) rent, purchase, or lease of training
31 equipment; and
32 (viii) other usual and customary training
33 costs.
34 (e) The Director will ensure that a minimum of one
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1 on-site grant monitoring visit is conducted by the
2 Department either during the course of the grant period
3 or within 6 months following the end of the grant period.
4 The Department shall verify that the grantee's financial
5 management system is structured to provide for accurate,
6 current, and complete disclosure of the financial results
7 of the grant program in accordance with all provisions,
8 terms, and conditions contained in the grant contract.
9 (f) The Director may establish and collect a
10 schedule of charges from subgrantee entities and other
11 system users under federal job-training programs for
12 participating in and utilizing the department's automated
13 job-training program information systems where such
14 systems and the necessary participation and utilization
15 is a requirement of the federal job-training programs.
16 All monies collected pursuant to this paragraph shall be
17 deposited into the Federal Job-Training Information
18 Systems Revolving Fund created in subsection (5).
19 (2) The Department is authorized to establish a program
20 of grants to universities, community colleges, research
21 institutions, research consortiums, other not-for-profit
22 entities, and Illinois businesses for the purpose of
23 fostering research and development in the high technology and
24 the service sector leading to the development of new products
25 and services that can be marketed by Illinois businesses. All
26 grant awards shall include a contract which may provide for
27 payment of negotiated royalties to the Department if the
28 product or service to be developed by the grantee is
29 subsequently licensed for production.
30 (a) Grants may be awarded to universities and
31 research institutions to assist them in making their
32 faculties and facilities available to Illinois
33 businesses. Such grants may be used by a university or
34 research institution for, including but not limited to
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1 the following purposes: (i) to establish or enhance
2 computerized cataloging of all research labs and
3 university staff and make such catalogues available to
4 Illinois businesses; (ii) to market products developed by
5 the university to Illinois businesses; (iii) to review
6 publications in order to identify, catalog, and inform
7 Illinois businesses of new practices in areas such as
8 robotics, biotechnology; (iv) to build an on-line,
9 information and technology system that relies on other
10 computerized networks in the United States; (v) to assist
11 in securing temporary replacement for faculty who are
12 granted a leave of absence from their teaching duties for
13 the purpose of working full-time for an Illinois business
14 to assist that business with technology transfer.
15 (b) Grants may be awarded to universities and
16 research institutions, research consortiums and other
17 not-for-profit entities for the purpose of identifying
18 and supporting Illinois businesses engaged in high
19 technology and service sector enterprises. Such Illinois
20 businesses identified and funded shall include recipients
21 of Small Business Innovation Research Program funds under
22 subsections (e) through (k) of Section 9 of the Small
23 Business Act. (Title 15 United States Codes, subsections
24 638(e)-638(k)). Entities receiving grants under this
25 paragraph (b) shall be known as commercialization centers
26 and shall engage in one or more of the following
27 activities:
28 (i) directing research assistance for new
29 venture creations;
30 (ii) general feasibility studies of new
31 venture ideas;
32 (iii) furthering the technical and
33 intellectual skills of the managers and owners of
34 Illinois small businesses;
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1 (iv) commercialization of technology and
2 research;
3 (v) development of prototypes and testing new
4 products;
5 (vi) identify and assist in securing
6 financing;
7 (vii) marketing assistance; and
8 (viii) assisting Illinois inventors in finding
9 Illinois manufacturers to produce and market their
10 inventions.
11 A commercialization center may charge a nominal fee
12 or accept royalty agreements for conducting feasibility
13 studies and other services.
14 (c) Grants may be awarded by the Department to
15 Illinois businesses to fund research and consultation
16 arrangements between businesses and universities,
17 community colleges, research institutions, research
18 consortiums and other not-for-profit entities within this
19 State.
20 The Department shall give priority to Illinois small
21 businesses in awarding grants. Each grant awarded under
22 this paragraph (c) shall provide funding for up to 50% of
23 the cost of the research or consultation arrangements,
24 not to exceed $100,000; provided that the grant recipient
25 utilizes Illinois not for profit research and academic
26 institutions to perform the research and development
27 function for which grant funds were requested.
28 (d) Grants may be awarded to research consortium
29 and other qualified applicants, in conjunction with
30 private sector or federal funding, for other creative
31 systems that bridge university resources and business,
32 technological, production and development concerns.
33 (e) For the purposes of subsection (2), (i)
34 "Illinois business" means a "small business concern" as
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1 defined in Title 15 United States Code, Section 632,
2 which primarily conducts its business in Illinois; (ii)
3 "high technology" means any area of research or
4 development designed to foster greater knowledge or
5 understanding in fields such as computer science,
6 electronics, physics, chemistry or biology for the
7 purpose of producing designing, developing or improving
8 prototypes and new processes; (iii) "private sector"
9 shall have the meaning ascribed to it in Title 29 United
10 States Code, Section 1503; (iv) "University" means either
11 a degree granting institution located in Illinois as
12 defined in Section 2 of the Academic Degree Act, or a
13 State-supported institution of higher learning
14 administered by the Board of Trustees of the University
15 of Illinois, the Board of Trustees of Southern Illinois
16 University, the Board of Trustees of Chicago State
17 University, the Board of Trustees of Eastern Illinois
18 University, the Board of Trustees of Governors State
19 University, the Board of Trustees of Illinois State
20 University, the Board of Trustees of Northeastern
21 Illinois University, the Board of Trustees of Northern
22 Illinois University, the Board of Trustees of Western
23 Illinois University, or the Illinois Community College
24 Board; (v) "venture" means any Illinois business engaged
25 in research and development to create new products or
26 services with high growth potential; (vi) Illinois
27 research institutions refers to not-for-profit entities,
28 which include federally-funded research laboratories,
29 that conduct research and development activities for the
30 purpose of producing, designing, developing, or improving
31 prototypes and new processes; and (vii) other
32 not-for-profit entities means non-profit organizations
33 based in Illinois that are primarily devoted to new
34 enterprise or product development.
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1 (f) The Department may establish a program of grant
2 assistance on a matching basis to universities, community
3 colleges, small business development centers, community
4 action agencies and other not-for-profit economic
5 development agencies to encourage new enterprise
6 development and new business formation and to encourage
7 enterprises in this State. The Department may provide
8 grants, which shall be exempt from the provisions of
9 subsection (3) of this Section, to universities,
10 community colleges, small business development centers,
11 community action agencies and other not-for-profit
12 economic development entities for the purpose of making
13 loans to small businesses. All grant applications shall
14 contain information as required by the Department,
15 including the following: a program operation plan; a
16 certification and assurance that the small business
17 applicants have received business development training or
18 education, have a business and finance plan and have
19 experience in the proposed business area; and a
20 description of the support services which the grant
21 recipient will provide to the small business. No more
22 than 10% of the grant may be used by the grant recipient
23 for administrative costs associated with the grant.
24 Grant recipients may use grant funds under this program
25 to make loans on terms and conditions favorable to the
26 small business and shall give priority to those
27 businesses located in high poverty areas, enterprise
28 zones, or both.
29 (3) There is created within the Department, a Technology
30 Innovation and Commercialization Grants-in-Aid Council which
31 shall consist of 2 representatives of the Department of
32 Commerce and Community Affairs appointed by the Department;
33 one representative of the Illinois Board of Higher Education,
34 appointed by the Board; one representative of science or
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1 engineering appointed by the Governor; two representatives of
2 business, appointed by the Governor; one representative of
3 small business, appointed by the Governor; one representative
4 of the Department of Agriculture, appointed by the Director
5 of Agriculture; and one representative of agribusiness,
6 appointed by the Director of Agriculture. The Director of
7 Commerce and Community Affairs shall appoint one of the
8 Department's representatives to serve as chairman of the
9 Council. The Council members shall receive no compensation
10 for their services but shall be reimbursed for their expenses
11 actually incurred by them in the performance of their duties
12 under this subsection. The Department shall provide staff
13 services to the Council. The Council shall provide for review
14 and evaluation of all applications received by the Department
15 under subsection (2) of this Section and make recommendations
16 on those projects to be funded. The Council shall also assist
17 the Department in monitoring the projects and in evaluating
18 the impact of the program on technological innovation and
19 business development within the State.
20 (4) There is hereby created a special fund in the State
21 Treasury to be known as the Technology Innovation and
22 Commercialization Fund. The moneys in such Fund may be used,
23 subject to appropriation, only for making grants pursuant to
24 subsection (2) of this Section and for the purposes of the
25 Technology Advancement and Development Act. All royalties
26 received by the Department shall be deposited in such Fund.
27 (5) There is hereby created a special fund in the State
28 treasury to be known as the Federal Job-Training Information
29 Systems Revolving Fund. The deposit of monies into this fund
30 shall be limited to the collection of charges pursuant to
31 paragraph (f) of subsection (1) of this Section. The monies
32 in the fund may only be used, subject to appropriation by the
33 General Assembly for the purpose of financing the maintenance
34 and operation of the automated Federal Job-Training
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1 Information Systems pursuant to paragraph (f) of subsection
2 (1) of this Section.
3 (6) When the Department is involved in developing a
4 federal or State funded training or retraining program for
5 any employer, the Department will assist and encourage that
6 employer in making every effort to reemploy individuals
7 previously employed at the facility. Further, the Department
8 will provide a list of said employees to said employer for
9 consideration for reemployment and will report the results of
10 this effort to the Illinois Job Training Coordinating
11 Council. This requirement shall be in effect when the
12 following conditions are met:
13 (a) the employer is reopening, or is proposing to
14 reopen, a facility which was last closed during the
15 preceding 2 years,
16 (b) a substantial number of the persons who were
17 employed at the facility before its most recent closure
18 remain unemployed, and
19 (c) the product or service produced by, or proposed
20 to be produced by, the employer at the facility is
21 substantially similar to the product or service produced
22 at the facility before its most recent closure.
23 (7) The Department, in cooperation with the Departments
24 of Human Services and Employment Security, may establish a
25 program to encourage community action agencies to establish
26 programs that will help unemployed and underemployed single
27 parents to identify, access, and develop, through such means
28 as counseling or mentoring, internal and external resources
29 that will enable those single parents to become emotionally
30 and financially self-sufficient. The intended primary
31 beneficiaries of the local programs shall be female heads of
32 households who are at least 22 but less than 46 years of age
33 and who are physically able to work but are unemployed or
34 underemployed. The Department may make grants, subject to
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1 the availability of funding, to communities and local
2 agencies for the purpose of establishing local programs as
3 described in this subsection (7). A grant under this
4 subsection (7) shall be made for a period of one year and may
5 be renewed if the Department determines that the program is
6 successful in meeting its objectives. If the Department
7 determines that implementation of a program has resulted in a
8 savings of State moneys that otherwise would have been paid
9 to beneficiaries of the program, the Department, on renewing
10 a grant, may adjust the grant amount for those demonstrated
11 savings. For purposes of this subsection, a person is
12 underemployed if his or her income from employment is less
13 than 185% of the federal official poverty income guideline.
14 (Source: P.A. 89-4, eff. 1-1-96; 89-507, eff. 7-1-97; 90-454,
15 eff. 8-16-97.)
16 Section 15-110. The Women's Business Ownership Act is
17 amended by changing Section 20 as follows:
18 (20 ILCS 705/20)
19 (Section scheduled to be repealed on September 1, 1999)
20 Sec. 20. Repeal. This Act is repealed September 1, 2004
21 1999.
22 (Source: P.A. 88-597, eff. 8-28-94.)
23 Section 15-115. The Illinois Economic Development Board
24 Act is amended by changing Section 3 and adding Section 4.5
25 as follows:
26 (20 ILCS 3965/3) (from Ch. 127, par. 3953)
27 Sec. 3. The board shall be composed of citizens from
28 both the private and public sectors who are actively engaged
29 in organizations and businesses that support economic
30 expansion, industry enhancement and job creation. The board
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1 shall be composed of the following persons:
2 (a) the Governor or his or her designee;
3 (b) four for members of the General Assembly, one
4 each appointed by the President of the Senate, the
5 Speaker of the House of Representatives, and the minority
6 leaders of the Senate and House of Representatives;
7 (c) 20 members appointed by the Governor including
8 representatives of small business, minority owned
9 companies, women owned companies, manufacturing, economic
10 development professionals, and citizens at large. one
11 representative of a manufacturing company employing more
12 than 1,000 persons;
13 (d) (blank) one representative of a manufacturing
14 company employing fewer than 100 persons;
15 (e) (blank) one representative of a manufacturing
16 company employing between 100 and 1,000 persons;
17 (f) (blank) three representatives from organized
18 labor;
19 (g) (blank) one representative from a major
20 financial institution;
21 (h) (blank) one representative from agriculture;
22 (i) (blank) one representative from education;
23 (j) (blank) one representative from the retail
24 industry;
25 (k) (blank) one representative from the service
26 industry;
27 (l) (blank); one economic development professional;
28 and
29 (m) (blank) five citizens at large.
30 The director of the Department of Commerce and Community
31 Affairs shall serve as an ex officio member of the board.
32 The Governor shall appoint the members of the board
33 specified in subsections (c) through (m) of this Section,
34 subject to the advice and consent of the Senate, within 30
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1 days after the effective date of this Act. The first meeting
2 of the board shall occur within 60 days after the effective
3 date of this Act.
4 The Governor shall appoint a chairperson and a vice
5 chairperson of the board. Members shall serve 2-year terms.
6 The position of a legislative member shall become vacant if
7 the member ceases to be a member of the General Assembly. A
8 vacancy in a board position shall be filled by the original
9 appointing authority.
10 The board shall include representation from each of the
11 State's geographic areas.
12 The board shall meet quarterly or at the call of the
13 chair and shall create subcommittees as needed to deal with
14 specific issues and concerns. Members shall serve without
15 compensation but may be reimbursed for expenses.
16 (Source: P.A. 86-1430.)
17 (20 ILCS 3965/4.5 new)
18 Sec. 4.5. Additional duties. In addition to those
19 duties granted under Section 4, the Illinois Economic
20 Development Board shall:
21 (1) Establish a Business Investment Location
22 Development Committee for the purpose of making
23 recommendations for designated economic development
24 projects. At the request of the Board, the Director of
25 Commerce and Community Affairs or his or her designee;
26 the Director of the Bureau of the Budget, or his or her
27 designee; the Director of Revenue, or his or her
28 designee; the Director of Employment Security, or his or
29 her designee; and an elected official of the affected
30 locality, such as the chair of the county board or the
31 mayor, may serve as members of the Committee to assist
32 with its analysis and deliberations.
33 (2) Establish a Business Regulatory Review
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1 Committee to generate private sector analysis, input, and
2 guidance on methods of regulatory assistance and review.
3 At the determination of the Board, individual small
4 business owners and operators; national, State, and
5 regional organizations representative of small firms; and
6 representatives of existing State or regional councils of
7 business may be designated as members of this Business
8 Regulatory Review Committee.
9 Section 15-120. The Business Enterprise for Minorities,
10 Females, and Persons with Disabilities Act is amended by
11 changing Section 9 as follows:
12 (30 ILCS 575/9) (from Ch. 127, par. 132.609)
13 (Section scheduled to be repealed on September 6, 1999.)
14 Sec. 9. This Act is repealed September 6, 2004 1999.
15 (Source: P.A. 88-597, eff. 8-28-94.)
16 ARTICLE 20
17 Section 20-1. Short Title. This Article may be cited as
18 the State and Regional Development Strategy Act.
19 Section 20-5. Purpose. The General Assembly finds that
20 an essential step to assist the Illinois economy, both on a
21 statewide and on a local level, to respond to increasingly
22 competitive global conditions and economic trends is to
23 establish a consensus on a long-term economic development
24 strategy that recognizes both the competitive position of the
25 State's regions and needs of commerce and industry. A unique
26 partnership between State and local development groups and
27 between the private and public sectors can set a
28 comprehensive and responsive agenda of community improvement
29 and community economic development.
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1 Section 20-10. Strategic Planning. The Department of
2 Commerce and Community Affairs has the following powers:
3 By no later than February 1, 2000, the Department shall
4 prepare an economic development strategy for Illinois for the
5 period beginning on July 1, 2000 and ending on June 30, 2005,
6 and for the 4 years next ensuing. By no later than February
7 1, 2000 and annually thereafter, the Department shall make
8 modifications in the economic development strategy for the 4
9 years beginning on the next ensuing July 1 as the
10 modifications are warranted by changes in economic conditions
11 or by other factors, including changes in policy, and shall
12 prepare an economic development strategy for the fifth year
13 beginning after the next ensuing July 1. In preparing the
14 strategy and in making modifications to the strategy, the
15 Department shall take cognizance of the special economic
16 attributes of the various component areas of the State.
17 (1) The "component areas" shall be determined by the
18 Department after a county by county economic analysis and
19 shall group counties that are close in geographical
20 proximity and share common economic traits such as labor
21 market areas.
22 (2) The strategy shall recommend specific
23 legislative, administrative, and programmatic action at
24 both the State and area level for promoting sustained
25 economic growth at or above national rates of economic
26 growth while keeping the rate of unemployment below
27 national levels of unemployment.
28 (3) The strategy shall include an assessment of
29 historical patterns of economic activity for the State as
30 a whole and by area, and projections of future economic
31 trends for the State as a whole and by area. National
32 economic trends and projections shall be considered in
33 the formulation of the State and area projections. All
34 assumptions made in the formulation of the State and area
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1 projections shall be clearly and explicitly set forth in
2 the strategy.
3 (4) The strategy shall identify, for each area,
4 those community economic improvement characteristics that
5 most likely will influence whether the area will exceed
6 or fall below the rate of overall State economic growth.
7 (5) The strategy shall recommend programmatic action
8 to be taken to foster and promote economic growth in
9 specific areas, taking into account the resources and
10 economic factors indigenous to the areas.
11 (A) The strategy shall identify for the State
12 and each region the critical business development
13 approaches being considered or to be considered.
14 The approaches may include, but are not limited to:
15 investment recruitment, such as industry attraction,
16 expansion and retention; trade development efforts
17 including international trade, support for small
18 businesses' efforts to export products and services,
19 tourism attraction and development including
20 cultural tourism; technology development efforts
21 including technology commercialization and
22 manufacturing modernization; and business
23 development efforts, including entrepreneurship and
24 entrepreneurial education, small business management
25 assistance, and business financing.
26 (B) The strategy shall identify for the State
27 and each region the critical workforce training and
28 development being considered or to be considered.
29 The approaches may include, but are not limited to:
30 customized job training, retraining and skill
31 upgrading, economic adjustment, job creation and
32 addressing labor shortages in areas of high demand;
33 the market for and quality of the local labor force;
34 the quality of the education and workforce
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1 infrastructure; and related issues.
2 (C) The strategy shall identify for the State
3 and each region the critical community development
4 approaches being considered or to be considered.
5 The approaches may include, but are not limited to:
6 community growth management such as regional
7 planning and smart growth; area revitalization
8 including brownfields redevelopment and facility
9 reuse; and family self-sufficiency such as through
10 housing conservation and economic opportunity.
11 (D) The strategy shall identify for the State
12 and each region the critical public facilities
13 development approaches being considered or to be
14 considered. The approaches may include, but are not
15 limited to: local public services; the local,
16 regional, and State tax and regulatory climate; the
17 physical infrastructure, including communications
18 and transportation systems; the capacity of area
19 utilities; and the quality of public institutions
20 such as schools.
21 (E) The strategy shall identify for the State
22 and each region the other critical marketplace
23 systems, including: the financial marketplace; the
24 competitive advantages of the area in terms of
25 natural resources, capital resources or technology
26 resources; and other factors affecting area
27 development.
28 (6) In preparing the strategy or modifications to
29 the strategy, the Department shall work with State
30 agencies, boards, and commissions whose programs and
31 activities significantly affect economic activity in the
32 State including the Illinois Development Finance
33 Authority, the Department of Revenue, the Department of
34 Transportation, the Department of Employment Security,
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1 the Department of Agriculture, the Department of Natural
2 Resources, the Environmental Protection Agency, and other
3 agencies, boards, or commissions as appropriate. The
4 Directors of the agencies, boards, and commissions shall
5 provide the assistance to the Department as the Governor
6 deems appropriate.
7 (7) In preparing the strategies for the component
8 areas, the Department shall consult with local and
9 regional economic development organizations, local
10 elected officials, community-based organizations, service
11 delivery providers, and other organizations whose
12 programs and activities significantly affect economic
13 activity in the area.
14 (8) In preparing the economic development strategy,
15 the Department shall take into consideration any
16 decisions or recommendations related to programs,
17 services, and government regulations contained in the
18 strategy that have been rendered as a result of a
19 Statewide Performance Review.
20 (9) The strategy shall be presented to the Governor,
21 the President and Minority Leader of the Senate, the
22 Speaker and Minority Leader of the House of
23 Representatives, the members of the Illinois Economic
24 Development Board, and the Chair of the Economic and
25 Fiscal Commission on February 1, 2000 and annually
26 thereafter.
27 (10) The strategy shall be published and made
28 available to the public in both paper and electronic
29 media.
30 (20 ILCS 605/46.44 rep.)
31 Section 20-105. The Civil Administrative Code of
32 Illinois is amended by repealing Section 46.44.
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1 ARTICLE 999.
2 Section 999-1. Effective date. This Act takes effect
3 upon becoming law.
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