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91_SB1080enr
SB1080 Enrolled LRB9105164EGfg
1 AN ACT in relation to business development.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Civil Administrative Code of Illinois is
5 amended by changing Sections 46.19j and 46.21 and adding
6 Sections 46.75 and 46.76 as follows:
7 (20 ILCS 605/46.19j)
8 Sec. 46.19j. Job Training and Economic Development
9 Demonstration Grant Program.
10 (a) Legislative findings. The General Assembly finds
11 that:
12 (1) despite the large number of unemployed job
13 seekers, many employers are having difficulty matching
14 the skills they require with the skills of workers; a
15 similar problem exists in industries where overall
16 employment may not be expanding but there is an acute
17 need for skilled workers in particular occupations;
18 (2) the State of Illinois should foster local
19 economic development by linking the job training of
20 unemployed disadvantaged citizens with the workforce
21 needs of local business and industry; and
22 (3) employers often need assistance in developing
23 training resources that will provide work opportunities
24 for disadvantaged populations.
25 (b) Definitions. As used in this Section:
26 "Community based provider" means a not-for-profit
27 organization, with local boards of directors, that directly
28 provides job training services.
29 "Disadvantaged persons" has the same meaning as the term
30 is defined in Titles II-A and II-C of the federal Job
31 Training Partnership Act.
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1 "Training partners" means a community-based provider and
2 one or more employers who have established training and
3 placement linkages.
4 (c) From funds appropriated for that purpose, the
5 Department of Commerce and Community Affairs shall administer
6 a Job Training and Economic Development Demonstration Grant
7 Program. The Director shall make not less than 12 and not
8 more than 20 demonstration project grants to community-based
9 providers. The grants shall be made to support the
10 following:
11 (1) partnerships between community-based providers
12 and employers for the customized training of existing
13 low-skilled, low-wage employees and newly hired
14 disadvantaged persons; and
15 (2) partnerships between community-based providers
16 and employers to develop and operate training programs
17 that link the work force needs of local industry with the
18 job training of disadvantaged persons.
19 (d) For projects created under paragraph (1) of
20 subsection (c):
21 (1) the Department shall give a priority to
22 projects that include an in-kind match by an employer in
23 partnership with a community-based provider and projects
24 that use instructional materials and training instructors
25 directly used in the specific industry sector of the
26 partnership employer; and
27 (2) the partnership employer must be an active
28 participant in the curriculum development, employ under
29 250 workers, and train primarily disadvantaged
30 populations.
31 (e) For projects created under paragraph (2) of
32 subsection (c):
33 (1) community based organizations shall assess the
34 employment barriers and needs of local residents and work
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1 in partnership with local economic development
2 organizations to identify the priority workforce needs of
3 the local industry;
4 (2) training partners, that is, community-based
5 organizations and employers, shall work together to
6 design programs with maximum benefits to local
7 disadvantaged persons and local employers;
8 (3) employers must be involved in identifying
9 specific skill-training needs, planning curriculum,
10 assisting in training activities, providing job
11 opportunities, and coordinating job retention for people
12 hired after training through this program and follow-up
13 support; and
14 (4) the community-based organizations shall serve
15 disadvantaged persons, including welfare recipients.
16 (f) The Department shall adopt rules for the grant
17 program and shall create a competitive application procedure
18 for those grants to be awarded beginning in fiscal year 1998.
19 Grants shall be based on a performance based contracting
20 system. Each grant shall be based on the cost of providing
21 the training services and the goals negotiated and made a
22 part of the contract between the Department and the training
23 partners. The goals shall include the number of people to be
24 trained, the number who stay in the program, the number who
25 complete the program, the number who enter employment, their
26 wages, and the number who retain employment. The level of
27 success in achieving employment, wage, and retention goals
28 shall be a primary consideration for determining contract
29 renewals and subsequent funding levels. In setting the
30 goals, due consideration shall be given to the education,
31 work experience, and job readiness of the trainees; their
32 barriers to employment; and the local job market. Periodic
33 payments under the contracts shall be based on the degree to
34 which the relevant negotiated goals have been met during the
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1 payment period.
2 (Source: P.A. 90-474, eff. 1-1-98; 90-655, eff. 7-30-98;
3 90-758, eff. 8-14-98.)
4 (20 ILCS 605/46.21) (from Ch. 127, par. 46.21)
5 Sec. 46.21. To make and enter into contracts, including
6 but not limited to making grants and loans to those units of
7 local government, private agencies as defined in the Illinois
8 State Auditing Act, and non-profit corporations, educational
9 institutions, and for-profit businesses as authorized
10 specified by the General Assembly pursuant to appropriations
11 by the General Assembly from the Build Illinois Bond Fund,
12 and the Build Illinois Purposes Fund, the Fund for Illinois'
13 Future, the Capital Development Fund, and the General Revenue
14 Fund, and generally to do all such things as, in its
15 judgment, may be necessary, proper and expedient in
16 accomplishing its duties.
17 (Source: P.A. 85-288.)
18 (20 ILCS 605/46.75 new)
19 Sec. 46.75. Federal Workforce Development Fund.
20 (a) The Department may accept gifts, grants, awards,
21 matching contributions, interest income, appropriations, and
22 cost sharings from individuals, businesses, governments, and
23 other third-party sources, on terms that the Director deems
24 advisable, for any or all of the following purposes:
25 (1) to assist recipients, including recipients
26 under the Temporary Assistance to Needy Families (TANF)
27 program, to obtain and retain employment and become
28 economically self-sufficient;
29 (2) to assist economically disadvantaged and other
30 youth to make a successful transition from school to
31 work; and
32 (3) to assist other individuals targeted for
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1 services through education, training, and workforce
2 development programs to obtain employment-related skills
3 and obtain employment.
4 (b) The Federal Workforce Development Fund is created as
5 a special fund in the State Treasury, and all moneys received
6 under this Section shall be deposited into that Fund. Moneys
7 in the Federal Workforce Development Fund may be expended for
8 purposes consistent with the conditions under which those
9 moneys are received, subject to appropriations made by the
10 General Assembly for those purposes.
11 (20 ILCS 605/46.76 new)
12 Sec. 46.76. Energy Assistance Contribution Fund.
13 (a) The Department may accept gifts, grants, awards,
14 matching contributions, interest income, appropriations, and
15 cost sharings from individuals, businesses, governments, and
16 other third-party sources, on terms that the Director deems
17 advisable, to assist eligible households, businesses,
18 industries, educational institutions, hospitals, health care
19 facilities, and not-for-profit entities to obtain and
20 maintain reliable and efficient energy related services, or
21 to improve the efficiency of such services.
22 (b) The Energy Assistance Contribution Fund is created
23 as a special fund in the State Treasury, and all moneys
24 received under this Section shall be deposited into that
25 Fund. Moneys in the Energy Assistance Contribution Fund may
26 be expended for purposes consistent with the conditions under
27 which those moneys are received, subject to appropriations
28 made by the General Assembly for those purposes.
29 Section 10. The State Finance Act is amended by adding
30 Sections 5.490 and 5.491 as follows:
31 (30 ILCS 105/5.490 new)
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1 Sec. 5.490. The Federal Workforce Development Fund.
2 (30 ILCS 105/5.491 new)
3 Sec. 5.491. The Energy Assistance Contribution Fund.
4 Section 15. The Build Illinois Act is amended by
5 changing Sections 8-3, 10-3 and 10-4 as follows:
6 (30 ILCS 750/8-3) (from Ch. 127, par. 2708-3)
7 Sec. 8-3. Powers of the Department. The Department has
8 the power to:
9 (a) provide business development public infrastructure
10 loans or grants from appropriations from the Build Illinois
11 Bond Fund, the Build Illinois Purposes Fund, the Fund for
12 Illinois' Future, and the Public Infrastructure Construction
13 Loan Fund to local governments to provide or improve a
14 community's public infrastructure so as to create or retain
15 private sector jobs pursuant to the provisions of this
16 Article;
17 (b) provide affordable financing of public
18 infrastructure loans and grants to, or on behalf of, local
19 governments, local public entities, medical facilities, and
20 public health clinics from appropriations from the Public
21 Infrastructure Construction Loan Fund for the purpose of
22 assisting with the financing, or application and access to
23 financing, of a community's public infrastructure necessary
24 to health, safety, and economic development;
25 (c) enter into agreements, accept funds or grants, and
26 engage in cooperation with agencies of the federal
27 government, or state or local governments to carry out the
28 purposes of this Article, and to use funds appropriated
29 pursuant to this Article to participate in federal
30 infrastructure loan and grant programs upon such terms and
31 conditions as may be established by the federal government;
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1 (d) establish application, notification, contract, and
2 other procedures, rules, or regulations deemed necessary and
3 appropriate to carry out the provisions of this Article;
4 (e) coordinate assistance under this program with
5 activities of the Illinois Development Finance Authority in
6 order to maximize the effectiveness and efficiency of State
7 development programs;
8 (f) coordinate assistance under the Affordable Financing
9 of Public Infrastructure Loan and Grant Program with the
10 activities of the Illinois Development Finance Authority,
11 Illinois Rural Bond Bank, Illinois Farm Development
12 Authority, Illinois Housing Development Authority, Illinois
13 Environmental Protection Agency, and other federal and State
14 programs and entities providing financing assistance to
15 communities for public health, safety, and economic
16 development infrastructure;
17 (f-5) provide staff, administration, and related support
18 required to manage the programs authorized under this Article
19 and pay for the staffing, administration, and related support
20 from the Public Infrastructure Construction Loan Revolving
21 Fund;
22 (g) exercise such other powers as are necessary or
23 incidental to the foregoing.
24 (Source: P.A. 90-454, eff. 8-16-97.)
25 (30 ILCS 750/10-3) (from Ch. 127, par. 2710-3)
26 Sec. 10-3. Powers and Duties. The Department has the
27 power to:
28 (a) Provide loans from the Build Illinois Bond Fund, the
29 Build Illinois Purposes Fund, the Fund for Illinois' Future,
30 or the Large Business Attraction Fund to a business
31 undertaking a project and accept mortgages or other evidences
32 of indebtedness or security of such business.
33 (b) Provide grants from the Build Illinois Bond Fund,
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1 the Build Illinois Purposes Fund, the Fund for Illinois'
2 Future, or the Large Business Attraction Fund to or for the
3 direct benefit of a business undertaking a project. Any such
4 grant shall (i) be made and used only for the purpose of
5 assisting the financing of the business for the project in
6 order to reduce the cost of financing to the business, (ii)
7 be made only if a participating lender, or other funding
8 source including the applicant, also provides a portion of
9 the financing with respect to the project, and only if the
10 Department determines, on the basis of all the information
11 available to it, that the project would not be undertaken in
12 Illinois unless the grant is provided, (iii) provide no more
13 than 25% of the total dollar amount of any single project
14 cost and be approved for amounts from the Fund not to exceed
15 $500,000 for any single project, unless waived by the
16 Director upon a finding that such waiver is appropriate to
17 accomplish the purpose of this Article, (iv) be made only
18 after the Department has determined that the grant will cause
19 a project to be undertaken which has the potential to create
20 substantial employment in relation to the amount of the
21 grant, and (v) be made with a business that has certified the
22 project is a new plant start-up or expansion and is not a
23 relocation of an existing business from another site in
24 Illinois unless that relocation results in substantial
25 employment growth.
26 (c) Enter into agreements, accept funds or grants and
27 cooperate with agencies of the federal government, local
28 units of government and local regional economic development
29 corporations or organizations for the purposes of carrying
30 out this Article.
31 (d) Enter into contracts, letters of credit or any other
32 agreements or contracts with financial institutions necessary
33 or desirable to carry out the purposes of this Article. Any
34 such agreement or contract may include, without limitation,
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1 terms and provisions relating to a specific project such as
2 loan documentation, review and approval procedures,
3 organization and servicing rights, default conditions and
4 other program aspects.
5 (e) Fix, determine, charge and collect any premiums,
6 fees, charges, costs and expenses, including application
7 fees, commitment fees, program fees, financing charges or
8 publication fees in connection with its activities under this
9 Article.
10 (f) Establish application, notification, contract and
11 other procedures, rules or regulations deemed necessary and
12 appropriate.
13 (g) Subject to the provisions of any contract with
14 another person and consent to the modification or
15 restructuring of any loan agreement to which the Department
16 is a party.
17 (h) Take any actions which are necessary or appropriate
18 to protect the State's interest in the event of bankruptcy,
19 default, foreclosure or noncompliance with the terms and
20 conditions of financial assistance or participation provided
21 under this Article, including the power to sell, dispose,
22 lease or rent, upon terms and conditions determined by the
23 Director to be appropriate, real or personal property which
24 the Department may receive as a result thereof.
25 (i) Acquire and accept by gift, grant, purchase or
26 otherwise, but not by condemnation, fee simple title, or such
27 lesser interest as may be desired, in land, and to improve or
28 arrange for the improvement of such land for industrial or
29 commercial site development purposes, and to lease or convey
30 such land, or interest in land, so acquired and so improved,
31 including sale and conveyance subject to a mortgage, for such
32 price, upon such terms and at such time as the Department may
33 determine, provided that prior to exercising its authority
34 under this subsection, the Director shall find that other
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1 means of financing and developing any such project are not
2 reasonably available and that such action is consistent with
3 the purposes and policies of this Article.
4 (j) Provide grants from the Build Illinois Bond Fund or
5 Build Illinois Purposes Fund to municipalities and counties
6 to demolish abandoned buildings pursuant to Section 11-31-1
7 of the Illinois Municipal Code or Section 5-1080 of the
8 Counties Code, for the purpose of making unimproved land
9 available for purchase by businesses for economic
10 development. Such grants shall be provided only when: (1) the
11 owner of property on which the abandoned building is situated
12 has entered into a contract to sell such property; (2) the
13 Department has determined that the grant will be used to
14 cause a project to be undertaken which will result in the
15 creation of employment; (3) the business which has entered
16 into a contract to purchase the property has certified that
17 it will use the property for a project which is a new plant
18 start-up or expansion or a new venture opportunity and is not
19 a relocation of an existing business from another site within
20 the State unless that relocation results in substantial
21 employment growth. If a municipality or county receives
22 grants under this paragraph, it shall file a notice of lien
23 against the owner or owners of such demolished buildings to
24 recover the costs and expenses incurred in the demolition of
25 such buildings pursuant to Section 11-31-1 of the Illinois
26 Municipal Code or Section 5-1080 of the Counties Code. All
27 such costs and expenses recovered by the county or
28 municipality shall be paid to the Department for deposit in
29 the Build Illinois Purposes Account. Priority shall be given
30 to enterprise zones or those areas with high unemployment
31 whose tax base is adversely impacted by the closing of
32 existing factories.
33 (k) Exercise such other powers as are necessary or
34 incidental to the foregoing.
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1 (Source: P.A. 88-45.)
2 (30 ILCS 750/10-4) (from Ch. 127, par. 2710-4)
3 Sec. 10-4. Loans. Any loan made under this Article
4 shall:
5 (a) Be made only if a participating lender or other
6 funding source, including the applicant, also provides a
7 portion of the financing with respect to the project and only
8 if the Department determines, on the basis of all the
9 information available to it, that the project would not be
10 undertaken in Illinois unless the loan is provided. The
11 other risk assumption may be in the form of a loan, letter of
12 credit, guarantee, loan participation, bond purchase, direct
13 cash payment, or other form approved by the Department.
14 (b) Finance no more than 25% of the total amount of any
15 single project and be approved for amounts from the Fund not
16 to exceed $2,000,000 for any single project, unless waived by
17 the Director upon a finding that a waiver is appropriate to
18 accomplish the purposes of this Article.
19 (c) Be protected by adequate security satisfactory to
20 the Department to secure payment of the loan agreement.
21 (d) Be in a principal amount and form and contain terms
22 and provisions with respect to property insurance, repairs,
23 alterations, payment of taxes and assessments, delinquency
24 charges, default remedies, additional security, and other
25 matters as the Department shall determine adequate to protect
26 the public interest.
27 (e) Include provisions to call the loan agreement as due
28 and payable if the project is not completed, if the project
29 fails to generate anticipated employment opportunities, or if
30 the business ceases to operate the project.
31 (f) Be made only after the Department has determined
32 that the loan will cause a project to be undertaken that has
33 the potential to create substantial employment in relation to
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1 the principal amount of the loan.
2 (g) Be made with a business that has certified the
3 project is a new plant start-up or expansion and is not a
4 relocation of an existing business from another site in
5 Illinois unless that relocation results in substantial
6 employment growth.
7 (h) All receipts, including principal and interest
8 payments, royalties, or other payments, paid to the
9 Department because of any loan made under this Article and
10 all proceeds of assets of whatever nature received by the
11 Department as a result of default and delinquency with
12 respect to loans made under this Article, including proceeds
13 from the sale, disposal, lease, or rental of real or personal
14 property that the Department may receive as a result of a
15 default or delinquency, shall be deposited into the Large
16 Business Attraction Fund General Revenue Fund.
17 (Source: P.A. 87-14.)
18 Section 99. Effective date. This Act takes effect July
19 1, 1999.
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