State of Illinois
90th General Assembly
Legislation

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[ Introduced ][ Engrossed ][ Senate Amendment 002 ]

90_HB2061enr

      20 ILCS 605/46.70 new
      30 ILCS 105/5.449 new
          Amends the Civil Administrative Code of Illinois and  the
      State  Finance  Act  to  create  the Small Business Incubator
      Fund.  Provides that the Director of Commerce  and  Community
      Affairs   may   make  grants  to  small  business  incubators
      dedicated to the successful  development  of  entrepreneurial
      companies.   Provides that the grants shall not exceed 50% of
      the State income taxes paid in the previous calendar year  by
      qualified   businesses  leasing  space  from  eligible  small
      business incubators.  Provides that an amount equal to 50% of
      these taxes shall  be  annually  appropriated  to  the  fund.
      Establishes an application process for grants and limitations
      on the use of the grants.  Effective immediately.
                                                     LRB9005374PTcw
HB2061 Enrolled                                LRB9005374PTcw
 1        AN ACT concerning small businesses.
 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:
 4        Section 5.  The Civil Administrative Code of Illinois  is
 5    amended by adding Section 46.70 as follows:
 6        (20 ILCS 605/46.70 new)
 7        (Section scheduled to be repealed on December 31, 2002)
 8        Sec. 46.70.  Small business incubator grants.
 9        (a)   Subject  to  availability  of  funds  in  the Small
10    Business  Incubator  Fund,  the  Director  of  Commerce   and
11    Community  Affairs may make grants to eligible small business
12    incubators in an amount not to exceed  50%  of  State  income
13    taxes  paid in the previous calendar year by qualified tenant
14    businesses subject to the restrictions of this Section.
15        (b)  There  is  created  a  special  fund  in  the  State
16    Treasury  known  as  the  Small Business Incubator Fund.  The
17    money in the Fund may be used only for  making  grants  under
18    subsection  (a)  of  this Section.  The Department of Revenue
19    shall  certify by  March  1  of  each  year  to  the  General
20    Assembly  the  amount of State income taxes paid by qualified
21    tenant businesses in the previous year.   The  Department  of
22    Revenue  may,  by rule, prescribe forms necessary to identify
23    qualified tenant businesses under this  Section.   An  amount
24    equal  to  50%  of  the amount certified by the Department of
25    Revenue shall be appropriated into the Fund annually.
26        (c)  Eligible small business incubators  that  receive  a
27    grant  under  this Section may use the grant only for capital
28    improvements on  the  building  housing  the  eligible  small
29    business  incubator.  Each  small business incubator shall be
30    eligible for a grant equal to no more than 50% of the  amount
31    of  State income taxes paid in the previous year by qualified
HB2061 Enrolled             -2-                LRB9005374PTcw
 1    tenant businesses of  the  small  business  incubator,  minus
 2    administrative  costs.  The eligible small business incubator
 3    must keep written records of the use of the grant money for a
 4    period of 5 years from disbursement.
 5        (d)  By April 1 of each year, an eligible small  business
 6    incubator  may  apply for a grant under this Section on forms
 7    developed by the  Department.   The  Department  may  require
 8    applicants  to  provide proof of eligibility.  Upon review of
 9    the applications, the  Director  of  Commerce  and  Community
10    Affairs  shall approve or disapprove the application.  At the
11    start of each fiscal year or upon approval of the budget  for
12    that  fiscal  year,  whichever  is  later, the Director shall
13    determine the amount of funds available for grants under this
14    Section and shall then approve the grants.
15        (e)  For purposes of this Section:
16             (1)  "eligible small business  incubator"  means  an
17        entity that is dedicated to the successful development of
18        entrepreneurial  companies, has a specific written policy
19        identifying requirements for  a  business  "to  graduate"
20        from  the incubator, either owns or leases real estate in
21        which qualified tenant businesses operate,  and  provides
22        all  of  the  following  services:  management  guidance,
23        rental   spaces,   shared   basic   business   equipment,
24        technology  support services, and assistance in obtaining
25        financing.
26             (2)  "qualified tenant business"  means  a  business
27        that  currently  leases  space  from  an  eligible  small
28        business  incubator, is less than 5 years old, and either
29        has not fulfilled the eligible small business incubator's
30        graduation   requirements   or   has   fulfilled    these
31        requirements within the last 5 years.
32        (f)  Five  percent  of  the  amount  that is appropriated
33    annually into the Small  Business  Incubator  Fund  shall  be
34    allotted  to the Department of Commerce and Community Affairs
HB2061 Enrolled             -3-                LRB9005374PTcw
 1    for the purpose of administering, overseeing, and  evaluating
 2    the grant process and outcome.
 3        (g)  This  Section  is repealed on December 31, 2002. The
 4    evaluation of the effectiveness  of  the  grant  process  and
 5    subsequent   outcome  of  job  and  business  creation  shall
 6    recommend the continuation or the repeal of this Section  and
 7    shall  be  submitted to the Governor and the General Assembly
 8    before December 31, 2001.
 9        Section 10.  The State Finance Act is amended  by  adding
10    Section 5.449 as follows:
11        (30 ILCS 105/5.449 new)
12        Sec.  5.449.  The Small Business Incubator Fund.
13        Section  99.  Effective date.  This Act takes effect upon
14    becoming law.

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