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Public Act 91-0034
SB1080 Enrolled LRB9105164EGfg
AN ACT in relation to business development.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Civil Administrative Code of Illinois is
amended by changing Sections 46.19j and 46.21 and adding
Sections 46.75 and 46.76 as follows:
(20 ILCS 605/46.19j)
Sec. 46.19j. Job Training and Economic Development
Demonstration Grant Program.
(a) Legislative findings. The General Assembly finds
that:
(1) despite the large number of unemployed job
seekers, many employers are having difficulty matching
the skills they require with the skills of workers; a
similar problem exists in industries where overall
employment may not be expanding but there is an acute
need for skilled workers in particular occupations;
(2) the State of Illinois should foster local
economic development by linking the job training of
unemployed disadvantaged citizens with the workforce
needs of local business and industry; and
(3) employers often need assistance in developing
training resources that will provide work opportunities
for disadvantaged populations.
(b) Definitions. As used in this Section:
"Community based provider" means a not-for-profit
organization, with local boards of directors, that directly
provides job training services.
"Disadvantaged persons" has the same meaning as the term
is defined in Titles II-A and II-C of the federal Job
Training Partnership Act.
"Training partners" means a community-based provider and
one or more employers who have established training and
placement linkages.
(c) From funds appropriated for that purpose, the
Department of Commerce and Community Affairs shall administer
a Job Training and Economic Development Demonstration Grant
Program. The Director shall make not less than 12 and not
more than 20 demonstration project grants to community-based
providers. The grants shall be made to support the
following:
(1) partnerships between community-based providers
and employers for the customized training of existing
low-skilled, low-wage employees and newly hired
disadvantaged persons; and
(2) partnerships between community-based providers
and employers to develop and operate training programs
that link the work force needs of local industry with the
job training of disadvantaged persons.
(d) For projects created under paragraph (1) of
subsection (c):
(1) the Department shall give a priority to
projects that include an in-kind match by an employer in
partnership with a community-based provider and projects
that use instructional materials and training instructors
directly used in the specific industry sector of the
partnership employer; and
(2) the partnership employer must be an active
participant in the curriculum development, employ under
250 workers, and train primarily disadvantaged
populations.
(e) For projects created under paragraph (2) of
subsection (c):
(1) community based organizations shall assess the
employment barriers and needs of local residents and work
in partnership with local economic development
organizations to identify the priority workforce needs of
the local industry;
(2) training partners, that is, community-based
organizations and employers, shall work together to
design programs with maximum benefits to local
disadvantaged persons and local employers;
(3) employers must be involved in identifying
specific skill-training needs, planning curriculum,
assisting in training activities, providing job
opportunities, and coordinating job retention for people
hired after training through this program and follow-up
support; and
(4) the community-based organizations shall serve
disadvantaged persons, including welfare recipients.
(f) The Department shall adopt rules for the grant
program and shall create a competitive application procedure
for those grants to be awarded beginning in fiscal year 1998.
Grants shall be based on a performance based contracting
system. Each grant shall be based on the cost of providing
the training services and the goals negotiated and made a
part of the contract between the Department and the training
partners. The goals shall include the number of people to be
trained, the number who stay in the program, the number who
complete the program, the number who enter employment, their
wages, and the number who retain employment. The level of
success in achieving employment, wage, and retention goals
shall be a primary consideration for determining contract
renewals and subsequent funding levels. In setting the
goals, due consideration shall be given to the education,
work experience, and job readiness of the trainees; their
barriers to employment; and the local job market. Periodic
payments under the contracts shall be based on the degree to
which the relevant negotiated goals have been met during the
payment period.
(Source: P.A. 90-474, eff. 1-1-98; 90-655, eff. 7-30-98;
90-758, eff. 8-14-98.)
(20 ILCS 605/46.21) (from Ch. 127, par. 46.21)
Sec. 46.21. To make and enter into contracts, including
but not limited to making grants and loans to those units of
local government, private agencies as defined in the Illinois
State Auditing Act, and non-profit corporations, educational
institutions, and for-profit businesses as authorized
specified by the General Assembly pursuant to appropriations
by the General Assembly from the Build Illinois Bond Fund,
and the Build Illinois Purposes Fund, the Fund for Illinois'
Future, the Capital Development Fund, and the General Revenue
Fund, and generally to do all such things as, in its
judgment, may be necessary, proper and expedient in
accomplishing its duties.
(Source: P.A. 85-288.)
(20 ILCS 605/46.75 new)
Sec. 46.75. Federal Workforce Development Fund.
(a) The Department may accept gifts, grants, awards,
matching contributions, interest income, appropriations, and
cost sharings from individuals, businesses, governments, and
other third-party sources, on terms that the Director deems
advisable, for any or all of the following purposes:
(1) to assist recipients, including recipients
under the Temporary Assistance to Needy Families (TANF)
program, to obtain and retain employment and become
economically self-sufficient;
(2) to assist economically disadvantaged and other
youth to make a successful transition from school to
work; and
(3) to assist other individuals targeted for
services through education, training, and workforce
development programs to obtain employment-related skills
and obtain employment.
(b) The Federal Workforce Development Fund is created as
a special fund in the State Treasury, and all moneys received
under this Section shall be deposited into that Fund. Moneys
in the Federal Workforce Development Fund may be expended for
purposes consistent with the conditions under which those
moneys are received, subject to appropriations made by the
General Assembly for those purposes.
(20 ILCS 605/46.76 new)
Sec. 46.76. Energy Assistance Contribution Fund.
(a) The Department may accept gifts, grants, awards,
matching contributions, interest income, appropriations, and
cost sharings from individuals, businesses, governments, and
other third-party sources, on terms that the Director deems
advisable, to assist eligible households, businesses,
industries, educational institutions, hospitals, health care
facilities, and not-for-profit entities to obtain and
maintain reliable and efficient energy related services, or
to improve the efficiency of such services.
(b) The Energy Assistance Contribution Fund is created
as a special fund in the State Treasury, and all moneys
received under this Section shall be deposited into that
Fund. Moneys in the Energy Assistance Contribution Fund may
be expended for purposes consistent with the conditions under
which those moneys are received, subject to appropriations
made by the General Assembly for those purposes.
Section 10. The State Finance Act is amended by adding
Sections 5.490 and 5.491 as follows:
(30 ILCS 105/5.490 new)
Sec. 5.490. The Federal Workforce Development Fund.
(30 ILCS 105/5.491 new)
Sec. 5.491. The Energy Assistance Contribution Fund.
Section 15. The Build Illinois Act is amended by
changing Sections 8-3, 10-3 and 10-4 as follows:
(30 ILCS 750/8-3) (from Ch. 127, par. 2708-3)
Sec. 8-3. Powers of the Department. The Department has
the power to:
(a) provide business development public infrastructure
loans or grants from appropriations from the Build Illinois
Bond Fund, the Build Illinois Purposes Fund, the Fund for
Illinois' Future, and the Public Infrastructure Construction
Loan Fund to local governments to provide or improve a
community's public infrastructure so as to create or retain
private sector jobs pursuant to the provisions of this
Article;
(b) provide affordable financing of public
infrastructure loans and grants to, or on behalf of, local
governments, local public entities, medical facilities, and
public health clinics from appropriations from the Public
Infrastructure Construction Loan Fund for the purpose of
assisting with the financing, or application and access to
financing, of a community's public infrastructure necessary
to health, safety, and economic development;
(c) enter into agreements, accept funds or grants, and
engage in cooperation with agencies of the federal
government, or state or local governments to carry out the
purposes of this Article, and to use funds appropriated
pursuant to this Article to participate in federal
infrastructure loan and grant programs upon such terms and
conditions as may be established by the federal government;
(d) establish application, notification, contract, and
other procedures, rules, or regulations deemed necessary and
appropriate to carry out the provisions of this Article;
(e) coordinate assistance under this program with
activities of the Illinois Development Finance Authority in
order to maximize the effectiveness and efficiency of State
development programs;
(f) coordinate assistance under the Affordable Financing
of Public Infrastructure Loan and Grant Program with the
activities of the Illinois Development Finance Authority,
Illinois Rural Bond Bank, Illinois Farm Development
Authority, Illinois Housing Development Authority, Illinois
Environmental Protection Agency, and other federal and State
programs and entities providing financing assistance to
communities for public health, safety, and economic
development infrastructure;
(f-5) provide staff, administration, and related support
required to manage the programs authorized under this Article
and pay for the staffing, administration, and related support
from the Public Infrastructure Construction Loan Revolving
Fund;
(g) exercise such other powers as are necessary or
incidental to the foregoing.
(Source: P.A. 90-454, eff. 8-16-97.)
(30 ILCS 750/10-3) (from Ch. 127, par. 2710-3)
Sec. 10-3. Powers and Duties. The Department has the
power to:
(a) Provide loans from the Build Illinois Bond Fund, the
Build Illinois Purposes Fund, the Fund for Illinois' Future,
or the Large Business Attraction Fund to a business
undertaking a project and accept mortgages or other evidences
of indebtedness or security of such business.
(b) Provide grants from the Build Illinois Bond Fund,
the Build Illinois Purposes Fund, the Fund for Illinois'
Future, or the Large Business Attraction Fund to or for the
direct benefit of a business undertaking a project. Any such
grant shall (i) be made and used only for the purpose of
assisting the financing of the business for the project in
order to reduce the cost of financing to the business, (ii)
be made only if a participating lender, or other funding
source including the applicant, also provides a portion of
the financing with respect to the project, and only if the
Department determines, on the basis of all the information
available to it, that the project would not be undertaken in
Illinois unless the grant is provided, (iii) provide no more
than 25% of the total dollar amount of any single project
cost and be approved for amounts from the Fund not to exceed
$500,000 for any single project, unless waived by the
Director upon a finding that such waiver is appropriate to
accomplish the purpose of this Article, (iv) be made only
after the Department has determined that the grant will cause
a project to be undertaken which has the potential to create
substantial employment in relation to the amount of the
grant, and (v) be made with a business that has certified the
project is a new plant start-up or expansion and is not a
relocation of an existing business from another site in
Illinois unless that relocation results in substantial
employment growth.
(c) Enter into agreements, accept funds or grants and
cooperate with agencies of the federal government, local
units of government and local regional economic development
corporations or organizations for the purposes of carrying
out this Article.
(d) Enter into contracts, letters of credit or any other
agreements or contracts with financial institutions necessary
or desirable to carry out the purposes of this Article. Any
such agreement or contract may include, without limitation,
terms and provisions relating to a specific project such as
loan documentation, review and approval procedures,
organization and servicing rights, default conditions and
other program aspects.
(e) Fix, determine, charge and collect any premiums,
fees, charges, costs and expenses, including application
fees, commitment fees, program fees, financing charges or
publication fees in connection with its activities under this
Article.
(f) Establish application, notification, contract and
other procedures, rules or regulations deemed necessary and
appropriate.
(g) Subject to the provisions of any contract with
another person and consent to the modification or
restructuring of any loan agreement to which the Department
is a party.
(h) Take any actions which are necessary or appropriate
to protect the State's interest in the event of bankruptcy,
default, foreclosure or noncompliance with the terms and
conditions of financial assistance or participation provided
under this Article, including the power to sell, dispose,
lease or rent, upon terms and conditions determined by the
Director to be appropriate, real or personal property which
the Department may receive as a result thereof.
(i) Acquire and accept by gift, grant, purchase or
otherwise, but not by condemnation, fee simple title, or such
lesser interest as may be desired, in land, and to improve or
arrange for the improvement of such land for industrial or
commercial site development purposes, and to lease or convey
such land, or interest in land, so acquired and so improved,
including sale and conveyance subject to a mortgage, for such
price, upon such terms and at such time as the Department may
determine, provided that prior to exercising its authority
under this subsection, the Director shall find that other
means of financing and developing any such project are not
reasonably available and that such action is consistent with
the purposes and policies of this Article.
(j) Provide grants from the Build Illinois Bond Fund or
Build Illinois Purposes Fund to municipalities and counties
to demolish abandoned buildings pursuant to Section 11-31-1
of the Illinois Municipal Code or Section 5-1080 of the
Counties Code, for the purpose of making unimproved land
available for purchase by businesses for economic
development. Such grants shall be provided only when: (1) the
owner of property on which the abandoned building is situated
has entered into a contract to sell such property; (2) the
Department has determined that the grant will be used to
cause a project to be undertaken which will result in the
creation of employment; (3) the business which has entered
into a contract to purchase the property has certified that
it will use the property for a project which is a new plant
start-up or expansion or a new venture opportunity and is not
a relocation of an existing business from another site within
the State unless that relocation results in substantial
employment growth. If a municipality or county receives
grants under this paragraph, it shall file a notice of lien
against the owner or owners of such demolished buildings to
recover the costs and expenses incurred in the demolition of
such buildings pursuant to Section 11-31-1 of the Illinois
Municipal Code or Section 5-1080 of the Counties Code. All
such costs and expenses recovered by the county or
municipality shall be paid to the Department for deposit in
the Build Illinois Purposes Account. Priority shall be given
to enterprise zones or those areas with high unemployment
whose tax base is adversely impacted by the closing of
existing factories.
(k) Exercise such other powers as are necessary or
incidental to the foregoing.
(Source: P.A. 88-45.)
(30 ILCS 750/10-4) (from Ch. 127, par. 2710-4)
Sec. 10-4. Loans. Any loan made under this Article
shall:
(a) Be made only if a participating lender or other
funding source, including the applicant, also provides a
portion of the financing with respect to the project and only
if the Department determines, on the basis of all the
information available to it, that the project would not be
undertaken in Illinois unless the loan is provided. The
other risk assumption may be in the form of a loan, letter of
credit, guarantee, loan participation, bond purchase, direct
cash payment, or other form approved by the Department.
(b) Finance no more than 25% of the total amount of any
single project and be approved for amounts from the Fund not
to exceed $2,000,000 for any single project, unless waived by
the Director upon a finding that a waiver is appropriate to
accomplish the purposes of this Article.
(c) Be protected by adequate security satisfactory to
the Department to secure payment of the loan agreement.
(d) Be in a principal amount and form and contain terms
and provisions with respect to property insurance, repairs,
alterations, payment of taxes and assessments, delinquency
charges, default remedies, additional security, and other
matters as the Department shall determine adequate to protect
the public interest.
(e) Include provisions to call the loan agreement as due
and payable if the project is not completed, if the project
fails to generate anticipated employment opportunities, or if
the business ceases to operate the project.
(f) Be made only after the Department has determined
that the loan will cause a project to be undertaken that has
the potential to create substantial employment in relation to
the principal amount of the loan.
(g) Be made with a business that has certified the
project is a new plant start-up or expansion and is not a
relocation of an existing business from another site in
Illinois unless that relocation results in substantial
employment growth.
(h) All receipts, including principal and interest
payments, royalties, or other payments, paid to the
Department because of any loan made under this Article and
all proceeds of assets of whatever nature received by the
Department as a result of default and delinquency with
respect to loans made under this Article, including proceeds
from the sale, disposal, lease, or rental of real or personal
property that the Department may receive as a result of a
default or delinquency, shall be deposited into the Large
Business Attraction Fund General Revenue Fund.
(Source: P.A. 87-14.)
Section 99. Effective date. This Act takes effect July
1, 1999.
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