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


Sen. Mattie Hunter

Filed: 3/2/2012





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2    AMENDMENT NO. ______. Amend Senate Bill 2491 by replacing
3everything after the enacting clause with the following:
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        "Fund Control Agency" means an entity who establishes
16    agreements with well-established financial institutions to



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



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



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1of loans, interest rates, collateral, and terms. The Department
2is authorized to adopt rules to implement this Section.
3    (g) Nothing in this Section is intended nor shall be
4construed to vest applicants denied funds by the Department in
5accordance with this Section a right to challenge, protest, or
6contest the awarding of funds by the Department to successful
7applicants or any loan or agreement executed in connection
9    Section 10. The State Finance Act is amended by adding
10Sections 5.811 and 8r as follows:
11    (30 ILCS 105/5.811 new)
12    Sec. 5.811. The Working Capital Loan Repayment Fund.
13    (30 ILCS 105/8r new)
14    Sec. 8r. Transfer to the Working Capital Loan Repayment
15Fund. Upon the written request of the Secretary of
16Transportation, the State Comptroller shall order and the State
17Treasurer shall transfer amounts not to exceed $3,000,000 in
18aggregate during a fiscal year, for a period of 10 years, from
19the Road Fund to the Working Capital Loan Repayment Fund at
20such times as requested by the Secretary of Transportation or
21as soon thereafter as may be practical.".