HB1471ham001 96TH GENERAL ASSEMBLY

Rep. Luis Arroyo

Filed: 4/2/2009

09600HB1471ham001 LRB096 04981 HLH 24993 a

AMENDMENT TO HOUSE BILL 1471

AMENDMENT NO. ______. Amend House Bill 1471 by replacing everything after the enacting clause with the following:

"ARTICLE 1

Section 1-1. Short title. This Article may be cited as the Illinois Works for Illinoisans Law.

Section 1-5. Purpose. The purpose of this Article is to promote the State's interest in the creation and expansion of businesses, particularly those that create well-paying and sustainable jobs for the People of the State of Illinois.

Section 1-10. Businesses receiving contracts under a capital plan.

(a) If the State adopts a capital plan during the 96th General Assembly, then 60% of the businesses that receive contracts for transportation and infrastructure-related projects under that plan must be located within the State.

(b) Notwithstanding any other provision of law, it is established as a goal of the State that, of the workers who are employed on transportation or infrastructure-related projects funded by a capital plan, at least 40% shall be minority persons and at least 10% shall be female. For the purposes of this Section, "minority person" and "female" shall have the same meaning as defined in Section 2 of the Business Enterprise for Minorities, Females, and Persons with Disabilities Act.

ARTICLE 2

Section 2-1. Short title. This Article may be cited as the Structural Steel Coating Law.

Section 2-5. Structural steel coating requirements.

(a) All newly constructed State infrastructure that is comprised of structural steel must use a maintenance coating system to address critical corrosion, including crevice corrosion, corrosion between joints and connections, and corrosion involving frozen bearings.

(b) Within 90 days after the effective date of this Act, the Illinois Department of Transportation shall commence a study of all bridges within the State that have been in use for at least 5 years prior to the effective date of this Act. The study must address the level of corrosion on each of those bridges and the need for repair or maintenance.

ARTICLE 3

Section 3-1. Short title. This Article may be cited as the Business Creation and Expansion Law.

Section 3-5. Purpose. The purpose of this Article is to promote the State's interest in the creation and expansion of businesses, particularly those that create well-paying and sustainable jobs for the People of the State of Illinois.

Section 3-10. Definitions.

"Agreement" means one or more legally enforceable contracts executed by and between an agency and a contracting party for a business creation grant or business expansion loan.

"Business" means an individual, partnership, corporation, or other entity that is located or will be located within the State of Illinois and that is engaged in interstate or intrastate commerce or providing services in interstate or intrastate commerce.

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

"Grant" means a business creation grant.

"Loan" means a business expansion loan.

"Project" means any specific activity of a business, the result of which yields an increase in jobs, and may include capital investment.

Section 3-15. Business Creation and Expansion Program. Starting in State fiscal year 2009, moneys in the Business Creation and Expansion Fund, held solely for the benefit of eligible contracting parties, shall be appropriated to the Department to make business creation grants and business expansion loans to eligible businesses. No less than three-fourths of the funds may be used for business creation grants, and no more than one-fourth of the funds may be used for business expansion loans. The Department may provide a business creation grant or a business expansion loan to a business upon application to the Department on such terms as the Department may establish.

Section 3-20. Business Creation Grants.

(a) A grant to an eligible business may not exceed 10% of the total cost of a project.

(b) A grant to an eligible business may be used for any one or more of the following purposes:

(1) Capital investment including, but not limited to, equipment, buildings, and land.

(2) Infrastructure development.

(3) Debt service, except refinancing of current debt.

(4) Research and development.

(5) Job training and education.

(6) Lease costs.

(7) Relocation costs.

(c) A grant may not be extended for a project unless the Department determines that the project would not be undertaken unless the grant is extended.

(d) The Department shall approve or deny a grant application only after considering the history, job opportunities, financial statements, market prospects, and management qualifications of the business or project.

Section 3-25. Business Expansion Loans.

(a) A loan shall be a long-term, fixed-rate, low-interest loan. For purposes of this Section, "long-term fixed-rate, low-interest loan" means a term of more than 3 years at below the prime rate then current in the major money centers.

(b) A loan to an eligible business shall not finance more than 25% of the total cost of a project.

(c) A loan may not be extended for a project unless the Department determines that the project would not be undertaken unless the loan is extended.

(d) The Department shall approve or deny a loan application only after considering the history, job opportunities, financial statements, market prospects, and management qualifications of the business or project.

ARTICLE 5

Section 5-5. The State Finance Act is amended by adding Sections 5.721, 5.722, 6z-76, and 6z-77 as follows:

(30 ILCS 105/5.721 new)

Sec. 5.721. The GROW Illinois Fund.

(30 ILCS 105/5.722 new)

Sec. 5.722. The Business Creation and Expansion Fund.

(30 ILCS 105/6z-76 new)

Sec. 6z-76. The GROW Illinois Fund.

(a) There is created the GROW Illinois Fund, a special fund in the State treasury. GROW is an acronym for "Growing and Revitalizing Our Workforce".

(b) Expenditures and transfers may be made from the GROW Illinois Fund only as appropriated or directed by the General Assembly by law.

(c) Investment income that is attributable to the investment of moneys in the GROW Illinois Fund shall be retained in that fund for the uses specified in this Section.

(d) Notwithstanding subsection (b) of this Section, $2,000,000,000 of all moneys deposited into the Fund shall be transferred to the Business Creation and Expansion Fund. The remainder of the moneys shall be used for capital infrastructure purposes.

(30 ILCS 105/6z-77 new)

Sec. 6z-77. The Business Creation and Expansion Fund.

(a) The Business Creation and Expansion Fund is created as a special fund in the State Treasury. The Fund shall receive revenue from (i) the transfer required under subsection (e) of Section 6z-76 of this Act and (ii) the repayment of loans under subsection (e) of the Business Creation and Expansion Law.

(b) Expenditures and transfers may be made from the Business Creation and Expansion Fund only as appropriated or directed by the General Assembly by law.

(c) Investment income that is attributable to the investment of moneys in the Business Creation and Expansion Fund shall be retained in that Fund for the uses specified in this Section.

Section 5-10. The Business Enterprise for Minorities, Females, and Persons with Disabilities Act is amended by changing Section 4 as follows:

(30 ILCS 575/4) (from Ch. 127, par. 132.604)

(Section scheduled to be repealed on June 30, 2010)

Sec. 4. Award of State contracts.

(a) Except as provided in subsection (b), not less than 12% of the total dollar amount of State contracts, as defined by the Secretary of the Council and approved by the Council, shall be established as a goal to be awarded to businesses owned by minorities, females, and persons with disabilities; provided, however, that contracts representing at least five-twelfths of the total amount of all State contracts awarded to businesses owned by minorities, females, and persons with disabilities pursuant to this Section shall be awarded to female owned businesses, and that contracts representing at least one-sixth of the total amount of all State contracts awarded to businesses owned by minorities, females, and persons with disabilities pursuant to this Section shall be awarded to businesses owned by persons with disabilities.

The above percentage relates to the total dollar amount of State contracts during each State fiscal year, calculated by examining independently each type of contract for each agency or university which lets such contracts. Only that percentage of arrangements which represents the participation of businesses owned by minorities, females, and persons with disabilities on such contracts shall be included.

(b) In the case of State construction contracts, the provisions of subsection (a) requiring a portion of State contracts to be awarded to businesses owned and controlled by persons with disabilities do not apply. Not less than 10% of the total dollar amount of State construction contracts is established as a goal to be awarded to minority and female owned businesses, and contracts representing 50% of the amount of all State construction contracts awarded to minority and female owned businesses shall be awarded to female owned businesses.

(c) In the case of all contracts awarded with moneys from the GROW Illinois Fund for capital infrastructure purposes, the State shall establish a goal of awarding not less than 25% of the annual dollar value of those contracts to minority-owned businesses or businesses owned by a person with a disability and 5% of the annual dollar value of the contracts to female-owned businesses.

(Source: P.A. 87-701; 88-597, eff. 8-28-94.)".