SB2491 97TH GENERAL ASSEMBLY

LRB097 12732 HEP 57221 b

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.

FISCAL NOTE ACT MAY APPLY

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 5. The Department of Transportation Law of the Civil Administrative Code of Illinois is amended by adding Section 2705-605 as follows:

(20 ILCS 2705/2705-605 new)

Sec. 2705-605. Disadvantaged business revolving loan and grant program.

(a) The Department has 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. For purposes of this Section, the terms "minority-owned business" and "female-owned business" have the meanings ascribed to them by Section 2 of the Business Enterprise for Minorities, Females, and Persons with Disabilities Act. For purposes of this Section, the term "disadvantaged business enterprise" has the meaning ascribed to it by 49 CFR part 26.

(b) Grant and loan funds shall be expended, subject to appropriation, from the Working Capital Loan Repayment Fund established as a special fund in the State Treasury. Loaned funds that are repaid to the Department shall be deposited into the fund from which expended. Other appropriations, grants, awards, and donations to the Department for the purpose of the revolving loan and grant program established by this Section shall be deposited into the Working Capital Loan Repayment Fund.

(c) Grant funds shall be allowed for the purpose of reimbursing certified businesses for current liabilities or expenses incurred in the preparation of bids and proposals for contracts accepted for loan assistance under the program.

(d) Loan assistance funds shall be allowed for current liabilities or working capital expenses associated with participation in the performance of contracts procured by the Department for transportation construction and construction-related purposes. Contracts providing for mobilization payments to a certified business are not eligible for loan assistance. Loan funds shall not be used for (1) refinancing or payment of existing long-term debt; (2) payment of non-current taxes; (3) payments, advances, or loans to stockholders, officers, directors, partners, or member owners of limited liability companies; or (4) the purchase or lease of non-construction motor vehicles or equipment. The loan agreement shall provide for the terms and conditions of repayment which shall not extend repayment longer than one year after completion and acceptance of the work authorized for loan assistance under the program. The agreement shall provide for the security necessary to protect the State's interest and may include withholding of payments due under the contract accepted for loan assistance under the program. The funds may be loaned with or without interest.

(e) 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. The Department is authorized to adopt rules to implement this Section.

(f) Nothing in this Section is intended nor shall be construed to vest applicants denied funds by the Department in accordance with this Section a right to challenge, protest, or contest the awarding of funds by the Department to successful applicants or any loan, grant, or agreement executed in connection therewith.

Section 10. The State Finance Act is amended by adding Sections 5.786 and 8r as follows:

(30 ILCS 105/5.786 new)

Sec. 5.786. The Working Capital Loan Repayment Fund.

(30 ILCS 105/8r new)

Sec. 8r. Transfer to the Working Capital Loan Repayment Fund. On July 1, 2012, or as soon thereafter as may be practical, 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.