SB1693ham002 102ND GENERAL ASSEMBLY

Rep. Lance Yednock

Filed: 3/25/2022

10200SB1693ham002 LRB102 10886 HLH 37971 a

AMENDMENT TO SENATE BILL 1693

AMENDMENT NO. ______. Amend Senate Bill 1693 by replacing everything after the enacting clause with the following:

"Article 1. Industrial Biotech Partnership Act

Section 1-1. Short title. This Act may be cited as the Industrial Biotech Partnership Act.

Section 1-5. Purpose. Illinois will actively pursue expansion of the industrial biotechnology and biorenewables industry. This growing field closely aligns with several key industries that the State is pursuing through the 2019 "Plan to Revitalize the Illinois Economy and Build the Workforce of the Future", such as agriculture, agriculture technology, life sciences, healthcare, and manufacturing. Illinois is well positioned to lead the nation with ample feedstocks, dedicated research facilities, specialized job training programs, and an existing manufacturing base required to lead this industry. Modifications to several existing programs will ensure the State provides the correct aid and incentives to help attract this growing industry.

Section 1-10. Definitions. As used in this Act:

"Department" means the Department of Commerce and Economic Opportunity.

"Industrial biotechnology" means biotechnology focused on new industrial products, such as industrial materials, chemicals and solvents, and feed and food, and new industrial processes. "Industrial biotechnology" does not include health biotechnology (pharmaceuticals), agricultural biotechnology (transgenic crops), or environmental biotechnology (bioremediation).

"Partnership" means the Industrial Biotechnology Public-Private Partnership established under this Act.

Section 1-15. Industrial Biotechnology Public-Private Partnership.

(a) There is hereby established the Industrial Biotechnology Public-Private Partnership as a State-sponsored board consisting of members from State agencies, research facilities, industry, and agriculture, to promote and market Illinois as the leading destination for research, development, and commercialization for industrial biotechnology.

(b) The Partnership shall consist of the following members:

(1) a representative of the Department of Agriculture, appointed by the Director of Agriculture;

(2) a representative of the Department of Commerce and Economic Opportunity, appointed by the Director of Commerce and Economic Opportunity;

(3) a representative of the Department of Labor, appointed by the Director of Labor;

(4) a representative of the National Corn to Ethanol Research Center, appointed by the Director of Commerce and Economic Opportunity;

(5) a representative of the Integrated Bioprocessing Research Laboratory, appointed by the Director of Commerce and Economic Opportunity;

(6) a representative of the National Center for Agricultural Utilization Research, who shall participate in a non-voting capacity, appointed by the Director of Commerce and Economic Opportunity in consultation with the Director of the Agricultural Research Service of the United States Department of Agriculture;

(7) a representative of an additional State-sponsored, university-affiliated laboratory or research institution conducting industrial biotechnology research, other than the entities described in paragraphs (4) and (5), appointed by the Director of Commerce and Economic Opportunity;

(8) a representative of an Illinois agricultural commodity group or farmer organization, appointed by the Director of Commerce and Economic Opportunity;

(9) a representative of a grain or oilseed processing company with current facilities located in Illinois, appointed by the Director of Commerce and Economic Opportunity;

(10) a representative of a biotechnology company, appointed by the Director of Commerce and Economic Opportunity;

(11) a representative of an environmental group committed to biorenewables, appointed by the Director of Commerce and Economic Opportunity; and

(12) a representative of a union of operating engineers, appointed by the Director of Commerce and Economic Opportunity.

(c) Members of the Partnership shall be appointed within 90 days after the effective date of this Act. The Partnership may meet quarterly and may hold its first meeting within 90 days after the appointment of all members. At the first meeting of the Partnership, a Chairperson shall be chosen from among the members. Members of the Partnership shall serve without compensation, but may be reimbursed for any expenses incurred in performing their duties.

(d) The Department, or a non-profit organization designated by the Department, shall provide administrative and other support to the Partnership.

Section 1-20. Duties. The Partnership shall have the following duties:

(1) Subject to appropriation and matching private funds as provided in Section 1-25, the Partnership shall develop and direct efforts to attract companies to use existing Illinois facilities for research, development, and pre-commercialization activities. Those efforts may include, without limitation: (i) representing Illinois at biotechnology conferences; (ii) developing promotional and marketing materials in coordination with existing research facilities to encourage the use of Illinois facilities; and (iii) facilitating meetings for companies that are prospective candidates for establishing a presence in this State.

(2) Subject to appropriation and matching private funds as provided in Section 1-25, the Partnership may develop programs to encourage emerging research, development, and commercializing biotechnology companies to locate production facilities in Illinois, including, but not limited to: (i) acting as an information clearinghouse for new companies on all State programs and investment incentives; and (ii) working with local and regional economic development groups.

(3) The Partnership may provide advice and recommendations to State agencies on the administration of grant programs directed at industrial biotechnology.

(4) On or before January 31 of the next calendar year to occur after the last day of any State fiscal year in which the Partnership receives State funding, the Partnership shall submit a report to the Department describing the use of appropriated funds by the Partnership in the State fiscal year for which the funds were allocated. The report shall include, but not be limited to, marketing materials produced by the Partnership, meetings attended by members of the Partnership related to Partnership business, and the hosting of companies visiting this State.

Section 1-25. Funding. The Partnership may receive funding through specific appropriations available for its purposes made to the Department. Moneys appropriated to the Department for the use of the Partnership as provided in this Act shall not be disbursed to the Partnership until the Partnership certifies to the Department that it has received at least $3 in private matching funds for every $1 so disbursed.

Section 1-30. Reports. On or before January 31 of the next calendar year to occur after the last day of any State fiscal year in which the Partnership receives State funding, the Department shall submit to the General Assembly and the Governor a report describing the use of appropriated funds by the Partnership in the State fiscal year for which the funds were allocated.

Section 1-35. Rules. The Department shall adopt all rules necessary for the implementation of this Act.

Section 1-40. Partnership dissolved. The Partnership is dissolved on December 31, 2025.

Section 1-45. Repeal. This Act is repealed on January 1, 2027.

Article 90. Amendatory Provisions

Section 90-5. The Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois is amended by adding Section 605-1095 as follows:

(20 ILCS 605/605-1095 new)

Sec. 605-1095. Industrial Biotechnology Workforce Development Grant Program.

(a) The Industrial Biotechnology Workforce Development Grant Program is hereby established as a program to be implemented and administered by the Department. The Program shall provide grants for the purpose of fostering a well-trained and well-skilled industrial biotechnology workforce.

(b) Subject to appropriation, grants under the Program may be awarded on an annual basis for one or more of the following:

(1) industrial biotechnology apprenticeships or apprenticeship programs;

(2) industrial biotechnology talent pipeline management programs that emphasize business-oriented strategies to increase workforce competitiveness, improve workforce diversity, and expand a regional talent pool around high-growth industries;

(3) industrial biotechnology industry-aligned credential (digital badging) expansion programs to increase the number of workers with in-demand skills needed to obtain a job or advance within the workplace and for merging competency-based education with responsive workforce training strategies; and

(4) high school and community college industrial biotechnology career pathway and pre-apprenticeship program development.

(c) To be eligible for grants provided under the Program, an entity must be either: (i) a State-sponsored, university-affiliated laboratory or research institution conducting collaboratives or for-hire research in the development of biorenewable chemicals, bio-based polymers, materials, novel feeds, or additional value-added biorenewables; or (ii) a State-accredited university or community college. An eligible entity must establish that it plans to use grant funds for a purpose specifically provided under subsection (b).

(d) On or before January 31 of the next calendar year to occur after the last day of any State fiscal year in which the Department of Commerce and Economic Opportunity receives State funding for the Program under this Section, the Department of Commerce and Economic Opportunity shall submit an annual report to the General Assembly and the Governor on the use of grant funds under the Program. The report shall include, but not be limited to: (i) the disbursement of grant funds, categorized by eligible entity; (ii) the number of persons enrolled in or taking advantage of a program established or maintained using grant funds; (iii) the number of persons completing a program established or maintained using grant funds; and (iv) the number of person gaining employment in the industrial biotechnology industry following completion of a program established or maintained using grant funds.

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

Section 90-10. The State Finance Act is amended by adding Sections 6z-130 and 6z-131 as follows:

(30 ILCS 105/6z-130 new)

Sec. 6z-130. Industrial Biotechnology Human Capital Fund.

(a) The Industrial Biotechnology Human Capital Fund is created as a special fund in the State treasury and may receive funds from any source, public or private, including moneys appropriated for use by the Department of Commerce and Economic Opportunity and laboratories and institutions conducting industrial biotechnology research. Subject to appropriation, the Industrial Biotechnology Human Capital Fund shall receive moneys from the General Revenue Fund until June 30, 2025. Each eligible entity receiving a grant under this Section shall, as a condition of receiving the grant, contribute moneys to the Fund as part of a cost-sharing agreement between the grantee and the Department of Commerce and Economic Opportunity in accordance with rules adopted by the Department of Commerce and Economic Opportunity. Grants issued under the Section may be for a period of 2 years. An eligible entity issued a grant under this Sections shall be eligible for more than one such grant, but no more than one grant annually, for the purpose of hiring and retaining Experts in Residence; however, such entity may maintain more than one grant at any given time.

(b) Subject to appropriation, moneys in the Fund shall be used for providing grants to laboratories and research institutions for the purpose of hiring and retaining in-house specialists, to be known as experts in residence, with the knowledge and experience in moving industrial biotechnology products through the development phase.

(c) To be eligible for grants provided from the Fund, an entity must be a State-sponsored, university-affiliated laboratory or research institution conducting collaboratives or for-hire research in the development of biorenewable chemicals, bio-based polymers, materials, novel feeds, or additional value added biorenewables. Eligible entities must also establish that the Expert-In-Residence they seek to hire or retain using the grant funds possesses expertise in fermentation engineering, process engineering, catalytic engineering, analytical chemistry, or is a scale-up specialist.

(d) On or before January 31 of the next calendar year to occur after the last day of any State fiscal year in which the Department of Commerce and Economic Opportunity receives State funding for the Program under this Section, the Department of Commerce and Economic Opportunity shall submit an annual report to the General Assembly and the Governor on the use of moneys in the Fund. The report shall include, but not be limited to: (i) the number of laboratories or institutions utilizing moneys in the Fund, including the name of such entities; (ii) the number of experts in residence hired by each laboratory or institution; (iii) the expertise or specialty area of each expert in residence hired or retained; and (iv) a summary of the benefit to the economy of the State of Illinois economy in providing the grants.

(e) The Department of Commerce and Economic Opportunity shall adopt all rules necessary for the implementation of this Section.

(30 ILCS 105/6z-131 new)

Sec. 6z-131. Industrial Biotechnology Capital Maintenance Fund.

(a) The Industrial Biotechnology Capital Maintenance Fund is created as a special fund in the State treasury and may receive funds from any source, public or private, including from moneys appropriated for use by the Department of Commerce and Economic Opportunity and laboratories and institutions conducting industrial biotechnology research.

(b) Subject to appropriation, moneys in the Fund shall be used for providing grants to laboratories and research institutions for the purpose of maintenance and repair of capital assets. Such maintenance and repairs of capital assets shall be designed to extend the serviceable life of equipment and buildings and expand the capacity of equipment and buildings by at least 10%. For the purposes of this Section, "capital assets" means equipment or buildings that have a value greater than $250,000.

(c) To be eligible for grants provided from the Fund, an entity must be a State-sponsored, university-affiliated laboratory or research institution conducting collaboratives or for-hire research in the development of biorenewable chemicals, bio-based polymers, materials, novel feeds, or additional value added biorenewables. The Department of Commerce and Economic Opportunity shall determine the disbursement of moneys for the purposes of this Section. Each eligible entity, as a condition of receiving a grant under this Section, shall match up to at least 50% of the moneys to be granted to the entity.

(d) On or before January 31 of the next calendar year to occur after the last day of any State fiscal year in which the Department of Commerce and Economic Opportunity receives State funding for the Program under this Section, the Department of Commerce and Economic Opportunity shall submit an annual report to the General Assembly and the Governor on the use of moneys in the Fund. The report shall include, but not be limited to: (i) the name of the institution or laboratory receiving funds; (ii) the capital assets that were maintained or repaired at each institution or laboratory; (iii) the expected usable life extension of each maintained or repaired asset; and (iv) the capacity increase of each maintained or repaired asset.

(e) The Department of Commerce and Economic Opportunity shall adopt all rules necessary for the implementation of this Section.".