Full Text of SB2491 97th General Assembly
SB2491 97TH GENERAL ASSEMBLY |
| | 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 | |
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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.
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| | | FISCAL NOTE ACT MAY APPLY | |
| | A BILL FOR |
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| 1 | | AN ACT concerning State government.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Department of Transportation Law of the
| 5 | | Civil Administrative Code of Illinois is amended by adding | 6 | | Section 2705-605 as follows: | 7 | | (20 ILCS 2705/2705-605 new) | 8 | | Sec. 2705-605. Disadvantaged business revolving loan and | 9 | | grant program. | 10 | | (a) The Department has the power to enter into agreements | 11 | | to make direct grants and low-interest loans to minority-owned | 12 | | businesses, female-owned businesses, and disadvantaged | 13 | | business enterprises certified by the Department for | 14 | | participation on Department-procured construction and | 15 | | construction-related contracts. For purposes of this Section, | 16 | | the terms "minority-owned business" and "female-owned | 17 | | business" have the meanings ascribed to them by Section 2 of | 18 | | the Business
Enterprise for Minorities, Females, and Persons | 19 | | with Disabilities Act. For purposes of this Section, the term | 20 | | "disadvantaged business enterprise" has the meaning ascribed | 21 | | to it by 49 CFR part 26. | 22 | | (b)
Grant and loan funds shall be expended, subject to | 23 | | appropriation, from the Working Capital Loan Repayment Fund |
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| 1 | | established as a special fund in the State Treasury. Loaned | 2 | | funds that are repaid to the Department shall be deposited into | 3 | | the fund from which expended. Other appropriations, grants, | 4 | | awards, and donations to the Department for the purpose of the | 5 | | revolving loan and grant program established by this Section | 6 | | shall be deposited into the Working Capital Loan Repayment | 7 | | Fund. | 8 | | (c)
Grant funds shall be allowed for the purpose of | 9 | | reimbursing certified businesses for current liabilities or | 10 | | expenses incurred in the preparation of bids and proposals for | 11 | | contracts accepted for loan assistance under the program. | 12 | | (d)
Loan assistance funds shall be allowed for current | 13 | | liabilities or working capital expenses
associated with | 14 | | participation in the performance of contracts procured by the | 15 | | Department for
transportation construction and | 16 | | construction-related purposes. Contracts providing for
| 17 | | mobilization payments to a certified business are not eligible | 18 | | for loan assistance. Loan funds
shall not be used for (1) | 19 | | refinancing or payment of existing long-term debt; (2) payment | 20 | | of non-current
taxes; (3) payments, advances, or loans to | 21 | | stockholders, officers, directors, partners, or member
owners | 22 | | of limited liability companies; or (4) the purchase or lease of | 23 | | non-construction motor vehicles or equipment. The loan | 24 | | agreement shall provide for the terms and conditions of | 25 | | repayment which shall not extend repayment longer than one year | 26 | | after completion and acceptance of the work authorized for loan |
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| 1 | | assistance under the program. The agreement shall provide for | 2 | | the security necessary to protect the State's interest and may | 3 | | include withholding of payments due under the contract accepted | 4 | | for loan assistance under the program. The funds may be loaned | 5 | | with or without interest. | 6 | | (e)
The Department shall establish the requirements for | 7 | | eligibility and criteria for grant and loan applications, | 8 | | approved use of funds, amount of loans or grants, interest | 9 | | rates, collateral, and terms. The Department is authorized to | 10 | | adopt rules to implement this Section. | 11 | | (f)
Nothing in this Section is intended nor shall be | 12 | | construed to vest applicants denied funds by the Department in | 13 | | accordance with this Section a right to challenge, protest, or | 14 | | contest the awarding of funds by the Department to successful | 15 | | applicants or any loan, grant, or agreement executed in | 16 | | connection therewith. | 17 | | Section 10. The State Finance Act is amended by adding | 18 | | Sections 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 | 23 | | Fund. On July 1, 2012, or as soon thereafter as may be |
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| 1 | | practical, the State Comptroller shall order and the State | 2 | | Treasurer shall transfer $10,000,000 from the Road Fund to the | 3 | | Working Capital Loan Repayment Fund.
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