Illinois General Assembly - Full Text of SB2491
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Full Text of SB2491  97th General Assembly




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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
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
17    under the Illinois Banking Act and authorized to accept and
18    administer trusts in this State; (ii) a national banking
19    association which has its principal place of business in
20    this State and which is authorized to accept and administer
21    trusts in this State; or (ii) an Illinois State agency.
22        "Fund Control Agent" means a person who holds the
23    authority to manage a loan under this Section.



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1    (b) The Department has the power to enter into agreements
2to make low-interest loans to minority-owned businesses,
3female-owned businesses, and disadvantaged business
4enterprises certified by the Department for participation on
5Department-procured construction and construction-related
6contracts. For purposes of this Section, the terms
7"minority-owned business" and "female-owned business" have the
8meanings ascribed to them by Section 2 of the Business
9Enterprise for Minorities, Females, and Persons with
10Disabilities Act. For purposes of this Section, the term
11"disadvantaged business enterprise" has the meaning ascribed
12to it by 49 CFR Part 26.
13    (c) Loan funds shall be disbursed to the escrow account,
14subject to appropriation, from the Working Capital Revolving
15Loan Fund established as a special fund in the State treasury.
16Loaned funds that are repaid to the Department shall be
17deposited into the Working Capital Revolving Loan Fund. Other
18appropriations, grants, awards, and donations to the
19Department for the purpose of the revolving loan program
20established by this Section shall be deposited into the Working
21Capital Revolving Loan Fund.
22    (d) A funds control process will be established to serve as
23an intermediary between the Department and the contractor to
24verify payments and to ensure paperwork is properly filed. The
25Fund Control Agent and contractor shall enter into an agreement
26regarding the control and disbursement of all payments to be



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1made by the Fund Control Agent under the contract. The
2Department will authorize and direct the Fund Control Agent to
3review all disbursement requests and supporting documents
4received from the contractor. The Fund Control Agent will
5direct the escrow account to disburse escrow funds to the
6subcontractor, material supplier, and other appropriate
7entities by written request for the disbursement.
8    (e) Loan assistance funds shall be allowed for current
9liabilities or working capital expenses associated with
10participation in the performance of contracts procured by the
11Department for transportation construction and
12construction-related purposes. Loan funds shall not be used for
13(1) refinancing or payment of existing long-term debt; (2)
14payment of non-current taxes; (3) payments, advances, or loans
15to stockholders, officers, directors, partners, or member
16owners of limited liability companies; or (4) the purchase or
17lease of non-construction motor vehicles or equipment. The loan
18agreement shall provide for the terms and conditions of
19repayment which shall not extend repayment longer than one year
20after completion and acceptance of the work authorized for loan
21assistance under the program. The funds may be loaned with or
22without interest.
23    (f) The Department shall establish through administrative
24rules the requirements for eligibility and criteria for loan
25applications, approved use of funds, amount of loans, interest
26rates, collateral, and terms. The Department is authorized to



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1adopt rules to implement this Section.
2    (g) Nothing in this Section is intended nor shall be
3construed to vest applicants denied funds by the Department in
4accordance with this Section a right to challenge, protest, or
5contest the awarding of funds by the Department to successful
6applicants or any loan or agreement executed in connection
8    (h) Investment income which is attributable to the
9investment of moneys in the Working Capital Revolving Loan Fund
10shall be retained in the Working Capital Revolving Loan Fund.
11    (i) By January 1, 2014 and by January 1 of each succeeding
12year, the Department shall report to the Governor and the
13General Assembly on the utilization and status of the revolving
14loan program. The report shall, at a minimum, include the
15amount transferred from the Road Fund to the Working Capital
16Revolving Loan Fund, the number and size of approved loans, the
17amounts disbursed to and from the escrow account, the amounts,
18if any, repaid to the Working Capital Revolving Loan Fund, the
19interest and fees paid by loan recipients, and the interest
20earned on balances in the Working Capital Revolving Loan Fund.
21    (j) The Department's authority to execute additional loans
22or request transfers to the Working Capital Revolving Loan Fund
23expires on June 1, 2022. The Comptroller shall order
24transferred and the Treasurer shall transfer any available
25balance remaining in the Working Capital Revolving Loan Fund to
26the Road Fund on January 1, 2023, or as soon thereafter as may



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1be practical. Any loan repayments, interest, or fees that are
2by the terms of a loan agreement payable to the Working Capital
3Revolving Loan Fund after June 20, 2022 shall instead be paid
4into the Road Fund as the successor fund to the Working Capital
5Loan repayment Fund.
6    Section 10. The State Finance Act is amended by adding
7Sections 5.811 and 8r as follows:
8    (30 ILCS 105/5.811 new)
9    Sec. 5.811. The Working Capital Revolving Loan Fund.
10    (30 ILCS 105/8r new)
11    Sec. 8r. Transfer to the Working Capital Revolving Loan
13    (a) Except as provided in subsection (b), upon the written
14request of the Secretary of Transportation, the State
15Comptroller shall order and the State Treasurer shall transfer
16amounts not to exceed $3,000,000 in aggregate during a fiscal
17year, for a period of 10 years, from the Road Fund to the
18Working Capital Revolving Loan Fund at such times as requested
19by the Secretary of Transportation or as soon thereafter as may
20be practical.
21    (b) No transfer may be requested or ordered if the
22available balance in the Working Capital Revolving Loan Fund is
23equal to or greater than $6,000,000.



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1    Section 99. Effective date. This Act takes effect upon
2becoming law.