Sen. Mattie Hunter

Filed: 5/9/2012

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 2842

2    AMENDMENT NO. ______. Amend House Bill 2842, by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Department of Transportation Law of the
5Civil Administrative Code of Illinois is amended by adding
6Section 2705-605 as follows:
 
7    (20 ILCS 2705/2705-605 new)
8    Sec. 2705-605. Disadvantaged business revolving loan
9program.
10    (a) For the purposes of this Section:
11        "Contractor" means one who participates, through a
12    contract or subcontract at any tier, in a United States
13    Department of Transportation-assisted highway, transit, or
14    airport program.
15        "Escrow account" means a fiduciary account established
16    with (i) a banking corporation which is both organized

 

 

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1    under the Illinois Banking Act and authorized to accept and
2    administer trusts in this State; (ii) a national banking
3    association which has its principal place of business in
4    this State and which is authorized to accept and administer
5    trusts in this State; or (ii) an Illinois State agency.
6        "Fund Control Agent" means a person who holds the
7    authority to manage a loan under this Section.
8    (b) The Department has the power to enter into agreements
9to make low-interest loans to minority-owned businesses,
10female-owned businesses, and disadvantaged business
11enterprises certified by the Department for participation on
12Department-procured construction and construction-related
13contracts. For purposes of this Section, the terms
14"minority-owned business" and "female-owned business" have the
15meanings ascribed to them by Section 2 of the Business
16Enterprise for Minorities, Females, and Persons with
17Disabilities Act. For purposes of this Section, the term
18"disadvantaged business enterprise" has the meaning ascribed
19to it by 49 CFR Part 26.
20    (c) Loan funds shall be disbursed to the escrow account,
21subject to appropriation, from the Working Capital Revolving
22Loan Fund established as a special fund in the State treasury.
23Loaned funds that are repaid to the Department shall be
24deposited into the Working Capital Revolving Loan Fund. Other
25appropriations, grants, awards, and donations to the
26Department for the purpose of the revolving loan program

 

 

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1established by this Section shall be deposited into the Working
2Capital Revolving Loan Fund.
3    (d) A funds control process will be established to serve as
4an intermediary between the Department and the contractor to
5verify payments and to ensure paperwork is properly filed. The
6Fund Control Agent and contractor shall enter into an agreement
7regarding the control and disbursement of all payments to be
8made by the Fund Control Agent under the contract. The
9Department will authorize and direct the Fund Control Agent to
10review all disbursement requests and supporting documents
11received from the contractor. The Fund Control Agent will
12direct the escrow account to disburse escrow funds to the
13subcontractor, material supplier, and other appropriate
14entities by written request for the disbursement.
15    (e) Loan assistance funds shall be allowed for current
16liabilities or working capital expenses associated with
17participation in the performance of contracts procured by the
18Department for transportation construction and
19construction-related purposes. Loan funds shall not be used for
20(1) refinancing or payment of existing long-term debt; (2)
21payment of non-current taxes; (3) payments, advances, or loans
22to stockholders, officers, directors, partners, or member
23owners of limited liability companies; or (4) the purchase or
24lease of non-construction motor vehicles or equipment. The loan
25agreement shall provide for the terms and conditions of
26repayment which shall not extend repayment longer than one year

 

 

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1after completion and acceptance of the work authorized for loan
2assistance under the program. The funds may be loaned with or
3without interest.
4    (f) The Department shall establish through administrative
5rules the requirements for eligibility and criteria for loan
6applications, approved use of funds, amount of loans, interest
7rates, collateral, and terms. The Department is authorized to
8adopt rules to implement this Section.
9    (g) Nothing in this Section is intended nor shall be
10construed to vest applicants denied funds by the Department in
11accordance with this Section a right to challenge, protest, or
12contest the awarding of funds by the Department to successful
13applicants or any loan or agreement executed in connection
14therewith.
15    (h) Investment income which is attributable to the
16investment of moneys in the Working Capital Revolving Loan Fund
17shall be retained in the Working Capital Revolving Loan Fund.
18    (i) By January 1, 2014 and by January 1 of each succeeding
19year, the Department shall report to the Governor and the
20General Assembly on the utilization and status of the revolving
21loan program. The report shall, at a minimum, include the
22amount transferred from the Road Fund to the Working Capital
23Revolving Loan Fund, the number and size of approved loans, the
24amounts disbursed to and from the escrow account, the amounts,
25if any, repaid to the Working Capital Revolving Loan Fund, the
26interest and fees paid by loan recipients, and the interest

 

 

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1earned on balances in the Working Capital Revolving Loan Fund.
2    (j) The Department's authority to execute additional loans
3or request transfers to the Working Capital Revolving Loan Fund
4expires on June 1, 2022. The Comptroller shall order
5transferred and the Treasurer shall transfer any available
6balance remaining in the Working Capital Revolving Loan Fund to
7the Road Fund on January 1, 2023, or as soon thereafter as may
8be practical. Any loan repayments, interest, or fees that are
9by the terms of a loan agreement payable to the Working Capital
10Revolving Loan Fund after June 20, 2022 shall instead be paid
11into the Road Fund as the successor fund to the Working Capital
12Revolving Loan Fund.
 
13    Section 10. The State Finance Act is amended by adding
14Sections 5.811 and 8r as follows:
 
15    (30 ILCS 105/5.811 new)
16    Sec. 5.811. The Working Capital Revolving Loan Fund.
 
17    (30 ILCS 105/8r new)
18    Sec. 8r. Transfer to the Working Capital Revolving Loan
19Fund.
20    (a) Except as provided in subsection (b), upon the written
21request of the Secretary of Transportation, the State
22Comptroller shall order and the State Treasurer shall transfer
23amounts not to exceed $3,000,000 in aggregate during a fiscal

 

 

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1year, for a period of 10 years, from the Road Fund to the
2Working Capital Revolving Loan Fund at such times as requested
3by the Secretary of Transportation or as soon thereafter as may
4be practical.
5    (b) No transfer may be requested or ordered if the
6available balance in the Working Capital Revolving Loan Fund is
7equal to or greater than $6,000,000.
 
8    Section 99. Effective date. This Act takes effect upon
9becoming law.".