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


Sen. Mattie Hunter

Filed: 3/26/2012





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2    AMENDMENT NO. ______. Amend Senate Bill 2491, AS AMENDED,
3by replacing everything after the enacting clause with the
5    "Section 5. The Department of Transportation Law of the
6Civil Administrative Code of Illinois is amended by adding
7Section 2705-605 as follows:
8    (20 ILCS 2705/2705-605 new)
9    Sec. 2705-605. Disadvantaged business revolving loan
11    (a) For the purposes of this Section:
12        "Contractor" means one who participates, through a
13    contract or subcontract at any tier, in a United States
14    Department of Transportation-assisted highway, transit, or
15    airport program.
16        "Escrow account" means a fiduciary account established



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1    with (i) a banking corporation which is both organized
2    under the Illinois Banking Act and authorized to accept and
3    administer trusts in this State; (ii) a national banking
4    association which has its principal place of business in
5    this State and which is authorized to accept and administer
6    trusts in this State; or (ii) an Illinois State agency.
7        "Fund Control Agent" means a person who holds the
8    authority to manage a loan under this Section.
9    (b) The Department has the power to enter into agreements
10to make low-interest loans to minority-owned businesses,
11female-owned businesses, and disadvantaged business
12enterprises certified by the Department for participation on
13Department-procured construction and construction-related
14contracts. For purposes of this Section, the terms
15"minority-owned business" and "female-owned business" have the
16meanings ascribed to them by Section 2 of the Business
17Enterprise for Minorities, Females, and Persons with
18Disabilities Act. For purposes of this Section, the term
19"disadvantaged business enterprise" has the meaning ascribed
20to it by 49 CFR Part 26.
21    (c) Loan funds shall be disbursed to the escrow account,
22subject to appropriation, from the Working Capital Revolving
23Loan Fund established as a special fund in the State treasury.
24Loaned funds that are repaid to the Department shall be
25deposited into the Working Capital Revolving Loan Fund. Other
26appropriations, grants, awards, and donations to the



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1Department for the purpose of the revolving loan program
2established by this Section shall be deposited into the Working
3Capital Revolving Loan Fund.
4    (d) A funds control process will be established to serve as
5an intermediary between the Department and the contractor to
6verify payments and to ensure paperwork is properly filed. The
7Fund Control Agent and contractor shall enter into an agreement
8regarding the control and disbursement of all payments to be
9made by the Fund Control Agent under the contract. The
10Department will authorize and direct the Fund Control Agent to
11review all disbursement requests and supporting documents
12received from the contractor. The Fund Control Agent will
13direct the escrow account to disburse escrow funds to the
14subcontractor, material supplier, and other appropriate
15entities by written request for the disbursement.
16    (e) Loan assistance funds shall be allowed for current
17liabilities or working capital expenses associated with
18participation in the performance of contracts procured by the
19Department for transportation construction and
20construction-related purposes. Loan funds shall not be used for
21(1) refinancing or payment of existing long-term debt; (2)
22payment of non-current taxes; (3) payments, advances, or loans
23to stockholders, officers, directors, partners, or member
24owners of limited liability companies; or (4) the purchase or
25lease of non-construction motor vehicles or equipment. The loan
26agreement shall provide for the terms and conditions of



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1repayment which shall not extend repayment longer than one year
2after completion and acceptance of the work authorized for loan
3assistance under the program. The funds may be loaned with or
4without interest.
5    (f) The Department shall establish through administrative
6rules the requirements for eligibility and criteria for loan
7applications, approved use of funds, amount of loans, interest
8rates, collateral, and terms. The Department is authorized to
9adopt rules to implement this Section.
10    (g) Nothing in this Section is intended nor shall be
11construed to vest applicants denied funds by the Department in
12accordance with this Section a right to challenge, protest, or
13contest the awarding of funds by the Department to successful
14applicants or any loan or agreement executed in connection
16    (h) Investment income which is attributable to the
17investment of moneys in the Working Capital Revolving Loan Fund
18shall be retained in the Working Capital Revolving Loan Fund.
19    (i) By January 1, 2014 and by January 1 of each succeeding
20year, the Department shall report to the Governor and the
21General Assembly on the utilization and status of the revolving
22loan program. The report shall, at a minimum, include the
23amount transferred from the Road Fund to the Working Capital
24Revolving Loan Fund, the number and size of approved loans, the
25amounts disbursed to and from the escrow account, the amounts,
26if any, repaid to the Working Capital Revolving Loan Fund, the



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1interest and fees paid by loan recipients, and the interest
2earned on balances in the Working Capital Revolving Loan Fund.
3    (j) The Department's authority to execute additional loans
4or request transfers to the Working Capital Revolving Loan Fund
5expires on June 1, 2022. The Comptroller shall order
6transferred and the Treasurer shall transfer any available
7balance remaining in the Working Capital Revolving Loan Fund to
8the Road Fund on January 1, 2023, or as soon thereafter as may
9be practical. Any loan repayments, interest, or fees that are
10by the terms of a loan agreement payable to the Working Capital
11Revolving Loan Fund after June 20, 2022 shall instead be paid
12into the Road Fund as the successor fund to the Working Capital
13Loan repayment Fund.
14    Section 10. The State Finance Act is amended by adding
15Sections 5.811 and 8r as follows:
16    (30 ILCS 105/5.811 new)
17    Sec. 5.811. The Working Capital Revolving Loan Fund.
18    (30 ILCS 105/8r new)
19    Sec. 8r. Transfer to the Working Capital Revolving Loan
21    (a) Except as provided in subsection (b), upon the written
22request of the Secretary of Transportation, the State
23Comptroller shall order and the State Treasurer shall transfer



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1amounts not to exceed $3,000,000 in aggregate during a fiscal
2year, for a period of 10 years, from the Road Fund to the
3Working Capital Revolving Loan Fund at such times as requested
4by the Secretary of Transportation or as soon thereafter as may
5be practical.
6    (b) No transfer may be requested or ordered if the
7available balance in the Working Capital Revolving Loan Fund is
8equal to or greater than $6,000,000. ".
9    Section 99. Effective date. This Act takes effect upon
10becoming law.".