97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
SB2491

 

Introduced 10/12/2011, by Sen. Mattie Hunter

 

SYNOPSIS AS INTRODUCED:
 
20 ILCS 2705/2705-605 new
30 ILCS 105/5.786 new
30 ILCS 105/8r new

    Amends the Department of Transportation Law of the Civil Administrative Code of Illinois and the State Finance Act. Grants the Illinois Department of Transportation the power to enter into agreements to make direct grants and low-interest loans to minority-owned businesses, female-owned businesses, and disadvantaged business enterprises certified by the Department for participation on Department-procured construction and construction-related contracts. Provides that grant and loan funds shall be expended, subject to appropriation, from the Working Capital Loan Repayment Fund. Specifies permissible uses of funds and provides that funds may be loaned with or without interest. Provides that the Department shall establish the requirements for eligibility and criteria for grant and loan applications, approved use of funds, amount of loans or grants, interest rates, collateral, and terms. Creates the Working Capital Loan Repayment Fund and provides that the State Comptroller shall order and the State Treasurer shall transfer $10,000,000 from the Road Fund to the Working Capital Loan Repayment Fund.


LRB097 12732 HEP 57221 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB2491LRB097 12732 HEP 57221 b

1    AN ACT concerning State government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
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 and
9grant program.
10    (a) The Department has the power to enter into agreements
11to make direct grants and low-interest loans to minority-owned
12businesses, female-owned businesses, and disadvantaged
13business enterprises certified by the Department for
14participation on Department-procured construction and
15construction-related contracts. For purposes of this Section,
16the terms "minority-owned business" and "female-owned
17business" have the meanings ascribed to them by Section 2 of
18the Business Enterprise for Minorities, Females, and Persons
19with Disabilities Act. For purposes of this Section, the term
20"disadvantaged business enterprise" has the meaning ascribed
21to it by 49 CFR part 26.
22    (b) Grant and loan funds shall be expended, subject to
23appropriation, from the Working Capital Loan Repayment Fund

 

 

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1established as a special fund in the State Treasury. Loaned
2funds that are repaid to the Department shall be deposited into
3the fund from which expended. Other appropriations, grants,
4awards, and donations to the Department for the purpose of the
5revolving loan and grant program established by this Section
6shall be deposited into the Working Capital Loan Repayment
7Fund.
8    (c) Grant funds shall be allowed for the purpose of
9reimbursing certified businesses for current liabilities or
10expenses incurred in the preparation of bids and proposals for
11contracts accepted for loan assistance under the program.
12    (d) Loan assistance funds shall be allowed for current
13liabilities or working capital expenses associated with
14participation in the performance of contracts procured by the
15Department for transportation construction and
16construction-related purposes. Contracts providing for
17mobilization payments to a certified business are not eligible
18for loan assistance. Loan funds shall not be used for (1)
19refinancing or payment of existing long-term debt; (2) payment
20of non-current taxes; (3) payments, advances, or loans to
21stockholders, officers, directors, partners, or member owners
22of limited liability companies; or (4) the purchase or lease of
23non-construction motor vehicles or equipment. The loan
24agreement shall provide for the terms and conditions of
25repayment which shall not extend repayment longer than one year
26after completion and acceptance of the work authorized for loan

 

 

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1assistance under the program. The agreement shall provide for
2the security necessary to protect the State's interest and may
3include withholding of payments due under the contract accepted
4for loan assistance under the program. The funds may be loaned
5with or without interest.
6    (e) The Department shall establish the requirements for
7eligibility and criteria for grant and loan applications,
8approved use of funds, amount of loans or grants, interest
9rates, collateral, and terms. The Department is authorized to
10adopt rules to implement this Section.
11    (f) Nothing in this Section is intended nor shall be
12construed to vest applicants denied funds by the Department in
13accordance with this Section a right to challenge, protest, or
14contest the awarding of funds by the Department to successful
15applicants or any loan, grant, or agreement executed in
16connection therewith.
 
17    Section 10. The State Finance Act is amended by adding
18Sections 5.786 and 8r as follows:
 
19    (30 ILCS 105/5.786 new)
20    Sec. 5.786. The Working Capital Loan Repayment Fund.
 
21    (30 ILCS 105/8r new)
22    Sec. 8r. Transfer to the Working Capital Loan Repayment
23Fund. On July 1, 2012, or as soon thereafter as may be

 

 

SB2491- 4 -LRB097 12732 HEP 57221 b

1practical, the State Comptroller shall order and the State
2Treasurer shall transfer $10,000,000 from the Road Fund to the
3Working Capital Loan Repayment Fund.