HB3337 102ND GENERAL ASSEMBLY

LRB102 14990 RJF 20345 b

102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB3337

Introduced 2/22/2021, by Rep. Jeff Keicher

SYNOPSIS AS INTRODUCED:

20 ILCS 605/605-1055 new

Amends the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois. Creates the Illinois Incubator and Collaborative Workspace Initiative Program to be implemented and administered by the Department of Commerce and Economic Opportunity. Provides that the Program shall support entrepreneurs by providing rent support grants and aiding collaborative workspaces in the acquisition of new tenants. Specifies grant requirements under the Program. Provides eligibility requirements for collaborative workspaces and tenants under the Program. Provides for the adoption of rules.

A BILL FOR

AN ACT concerning State government.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois is amended by adding Section 605-1055 as follows:

(20 ILCS 605/605-1055 new)

Sec. 605-1055. Illinois Incubator and Collaborative Workspace Initiative Program.

(a) There is hereby created the Illinois Incubator and Collaborative Workspace Initiative Program to be implemented and administered by the Department of Commerce and Economic Opportunity. The Program shall support entrepreneurs by providing rent support grants and aiding collaborative workspaces in the acquisition of new tenants.

(b) Subject to appropriation, grants under the Program shall support rent of early stage technology and life science companies in Illinois collaborative workspaces. Grants shall cover rent payments for 2, 4, or 6 month increments. A collaborative workspace must match the grant to the tenant company on a 1:2 ratio basis. The tenant company must commit to continuing to work from the collaborative workspace, including paying rent, for a period of no less than the Program and the collaborative workspaces combined months of grant support. Funding for grants under the Program may be drawn from federal funds received by the State for purposes related to the COVID-19 public health emergency.

(c) To qualify as an approved incubator and collaborative workspace under the Program, a collaborative workspace must meet the following criteria:

(1) be a located in Illinois;

(2) have a minimum of 5 unique paying tenants over the last 2 years;

(3) have an operating cost;

(4) offer at least one type of work space, including private office space, hot-desks, or dedicated desks;

(5) commit to hosting at least 10 innovation ecosystem building events in a year, including, but not limited to, meet-ups, speaker series, and office hours for lawyers, accountants, consultants, and investors;

(6) certify that the workspace charges rent to tenants and that the rent that would be charged to the startup and supported by the Program is market-rate;

(7) commit to matching the Program's grant to the tenant company on a 1:2 ratio basis; and

(8) meet any applicable certification requirements established under Illinois law or as may be required by the Department.

(d) When a collaborative workspace is approved for participation in the Program under subsection (c), it shall then be eligible to apply for a grant under the Program. As prerequisite to receiving a grant under the Program, a collaborative workspace must identify at least one tenant company it would like to offer support to for purposes of the Program.

(e) To qualify as an approved incubator and collaborative workspace tenant under the Program, a prospective tenant must meet the following criteria:

(1) be registered to do business in Illinois;

(2) provide a 2-page executive summary of their business;

(3) certify that it: (i) is a technology and life sciences company; (ii) is applying within 3 years after its date of formation; (iii) has fewer than 10 employees; (iv) has less than $1,000,000 in trailing 12-months gross sales from date of application submission; (v) has at least one full-time Illinois employee that will be working in the facility; and (vi) has not previously utilized another collaborative workspace in Illinois; and

(4) commit to working at the facility for the duration of the Program and the collaborative workspace's combined months of grant support.

(f) The Department shall adopt all rules necessary for the implementation and administration of the Program established under this Section.