HB0436eng 96TH GENERAL ASSEMBLY

HB0436 Engrossed LRB096 07997 RCE 18101 b

AN ACT concerning finance.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois is amended by adding Section 605-416 as follows:

(20 ILCS 605/605-416 new)

Sec. 605-416. Loans to qualified ex-offenders.

(a) The Department of Commerce and Economic Opportunity shall be responsible for the distribution of funds for the ex-offender loan program. Funding for this program shall come from the Ex-Offender Fund. The Department, if it so chooses, may contract out or provide sub-grants for the administrative services of the program to any organization that works with ex-offenders and their reentry into society. Organizations wishing to participate in the program must present an application to the Department in order to receive funding.

(b) Funding distributed from the Ex-Offender Fund may be used only for the following purposes:

(1) For the awarding of low-interest loans, not to exceed an interest rate of 3%, to ex-offenders so that these individuals may start and operate their own businesses that have a positive impact on society. The maximum amount of a loan that an ex-offender may receive shall not exceed $5,000.

(2) For the awarding of grants to qualified ex-offenders or to entities or organizations assisting ex-offenders, so that individual ex-offenders may develop a business plan to start up their own business. These grants are to be used for the sole purpose of acquiring a business plan developed by a credible source. In order to receive these grants, qualified ex-offenders must submit an application and provide 50% of the cost to develop the business plan.

(3) For the administration costs of the program.

(c) For purposes of this Section, "qualified ex-offender" means any person who:

(1) is an eligible offender, as defined under Section 5-5.5-5 of the Unified Code of Corrections;

(2) was sentenced to a period of incarceration in an Illinois adult correctional center; and

(3) presents to the Department an application and a professional business plan.

Section 10. The State Finance Act is amended by adding Section 5.719 as follows:

(30 ILCS 105/5.719 new)

Sec. 5.719. The Ex-Offender Fund.

Section 99. Effective date. This Act takes effect January 1, 2010.