SB3153 103RD GENERAL ASSEMBLY

LRB103 38408 MXP 68543 b

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB3153

Introduced 2/6/2024, by Sen. Napoleon Harris, III

SYNOPSIS AS INTRODUCED:

New Act

Creates the 21st Century Diversity Business Act. Provides that the Department of Commerce and Economic Opportunity shall create and administer the 21st Century Diversity Business Program to provide loans and financial assistance to minority-owned businesses in 21st Century Diversity Business districts. Provides for application, eligibility, and loan requirements. Requires the Department and its grantees to provide technical assistance to businesses receiving loans through the Program. Requires the Department to enter into an agreement with businesses receiving loans through the Program with specified content. Requires the Office of the Secretary of State to make available to the public on the Internet website of the Office of the Secretary of State a registry of self-certified minority business owners from which both public and private entities may seek services. Provides further requirements concerning the registry. 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 1. Short title. This Act may be cited as the 21st Century Diversity Business Act.

Section 5. Definitions. As used in this Act:

"21st Century Diversity Business District" or "District" means a designated area of economic and business growth created by a municipality, whose resident population is at least 51% minority, participating in the Program created under this Act for which Program loan funds are utilized. An area is qualified to become a 21st Century Diversity Business District which: (i) is a contiguous area; (ii) comprises a minimum of one-half square mile and not more than 5 square miles in total area, exclusive of lakes and waterways; (iii) is entirely within the municipal corporate boundaries; and (iv) 51% or more of the residents within district are minority individuals.

"Agreement" means the loan agreement between a business and the Department.

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

"Minority-owned business" means a business which is at least 51% owned by one or more minority persons, or in the case of a corporation, at least 51% of the stock in which is owned by one or more minority persons; and the management and daily business operations of which are controlled by one or more of the minority individuals who owns it.

"Minority person" shall mean a person who is a citizen or lawful permanent resident of the United States and who is any of the following:

(1) American Indian or Alaska Native (a person having origins in any of the original peoples of North and South America, including Central America, and who maintains tribal affiliation or community attachment).

(2) Asian (a person having origins in any of the original peoples of the Far East, Southeast Asia, or the Indian subcontinent, including, but not limited to, Cambodia, China, India, Japan, Korea, Malaysia, Pakistan, the Philippine Islands, Thailand, and Vietnam).

(3) Black or African American (a person having origins in any of the black racial groups of Africa).

(4) Hispanic or Latino (a person of Cuban, Mexican, Puerto Rican, South or Central American, or other Spanish culture or origin, regardless of race).

(5) Native Hawaiian or Other Pacific Islander (a person having origins in any of the original peoples of Hawaii, Guam, Samoa, or other Pacific Islands).

"Program" means the 21st Century Diversity Business Program created under this Act.

Section 10. 21st Century Diversity Business Program.

(a) The Department of Commerce and Economic Opportunity shall, subject to appropriation, create and administer the 21st Century Diversity Business Program to provide loans and financial assistance to minority-owned businesses in a 21st Century Diversity Business district as provided under this Act.

(b) Any municipality may apply, on an annual basis, to the Department to create a 21st Century Diversity Business District under the Program. To be eligible, an applicant municipality must pass an ordinance declaring its intent to create a 21st Century Diversity Business District in the municipality. No more than 5 eligible municipalities may be chosen by the Department to create districts under the Program per year. At no point shall more than 30 municipalities be participating in the Program.

(c) Any eligible municipality chosen by the Department under subsection (b) shall, subject to appropriation, be entitled to have minority-owned businesses in their 21st Century Diversity Business District apply for a subsidized loan from the Department. No individual business shall accumulate loans in aggregate greater than $1,000,000 under this Act. At no point, collectively, shall businesses in any participating municipality aggregate more than $5,000,000 in loans through the Program.

(d) Each municipality chosen by the Department to create a district under this Section shall, as prerequisite to participation, establish a 21st Century Diversity Business Investment Board with the purpose of helping grow minority-owned businesses.

(e) The Department and its grantees shall provide technical assistance to businesses receiving loans through the Program. This is including, but not limited to, support in business plans, business development, financial management, marketing, any other service that the Department may deem relevant to the establishment of a business for the purposes of this Act. At least once a year, the Department shall host an informational session, either in-person or virtually, for municipalities eligible to apply. At least once a year, the Department shall host an informational session, either in-person or virtually, for eligible businesses in the 21st Century Diversity Business district to learn more about opportunities for growth and access to state resources.

(f) The Department shall enter into an agreement with a business that has received a loan under this Act. The agreement must include all of the following:

(1) A requirement that the business shall make a good-faith effort to maintain operations in the State of Illinois for the duration of the loan.

(2) A requirement that the Director is authorized to verify with the appropriate State agencies information provided by the applicant.

(3) Any other performance conditions or contract provisions as the Department determines are appropriate.

Section 15. Minority-owned business database.

(a) The Office of the Secretary of State shall, subject to appropriation, make available to the public on the Internet website of the Office of the Secretary of State a registry of self-certified minority business owners from which both public and private entities may seek services.

(b) The registry shall allow for self-certified minority business owners to voluntarily add themselves to the registry. The Office of the Secretary of State may utilize data already held by other agencies. The Office of the Secretary of State may utilize existing forms to voluntarily collect self-reported information.

Section 20. Administrative rules. The Department shall adopt all rules necessary for the administration of the Program and the implementation of the requirements of this Act.