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91_HB2113eng HB2113 Engrossed LRB9103897MWpr 1 AN ACT concerning the Department of Commerce and 2 Community Affairs. 3 Be it enacted by the People of the State of Illinois, 4 represented in the General Assembly: 5 Section 5. The Civil Administrative Code of Illinois is 6 amended by changing Section 46.19a and adding Section 46.52a 7 as follows: 8 (20 ILCS 605/46.19a) (from Ch. 127, par. 46.19a) 9 Sec. 46.19a. Employment and technology grants. 10 (1) Grants to provide training in fields affected by 11 critical demands for certain skills may be made as provided 12 in this subsection. 13 (a) The Director of the Department may make grants 14 to eligible employers or to other eligible entities on 15 behalf of employers as authorized in paragraph (b) to 16 provide training for employees in fields for which there 17 are critical demands for certain skills. 18 (b) The Director may accept applications for 19 training grant funds and grant requests from: (i) 20 entities sponsoring multi-company eligible employee 21 training projects as defined in paragraph (c), including 22 business associations, strategic business partnerships, 23 institutions of secondary or higher education, large 24 manufacturers for supplier network companies, federal Job 25 Training Partnership Act administrative entities or grant 26 recipients, and labor organizations when those projects 27 will address common training needs identified by 28 participating companies; and (ii) individual employers 29 that are undertaking eligible employee training projects 30 as defined in paragraph (c), including intermediaries and 31 training agents. HB2113 Engrossed -2- LRB9103897MWpr 1 (c) The Director may make grants to eligible 2 applicants as defined in paragraph (b) for employee 3 training projects that include, but need not be limited 4 to, one or more of the following: 5 (i) training programs in response to new or 6 changing technology being introduced in the 7 workplace; 8 (ii) job-linked training that offers special 9 skills for career advancement or that is preparatory 10 for, and leads directly to, jobs with definite 11 career potential and long-term job security; 12 (iii) training necessary to implement total 13 quality management or improvement or both management 14 and improvement systems within the workplace; 15 (iv) training related to new machinery or 16 equipment; 17 (v) training of employees of companies that 18 are expanding into new markets or expanding exports 19 from Illinois; 20 (vi) basic, remedial, or both basic and 21 remedial training of employees as a prerequisite for 22 other vocational or technical skills training or as 23 a condition for sustained employment; 24 (vii) self-employment training of the 25 unemployed and underemployed with comprehensive, 26 competency-based instructional programs and 27 services; and 28 (viii) other training activities, projects, or 29 both training activities and projects related to the 30 support, development, or evaluation of job training 31 programs, activities, and delivery systems, 32 including training needs assessment and design. 33 (d) Grants shall be made on the terms and 34 conditions that the Department shall determine, provided, HB2113 Engrossed -3- LRB9103897MWpr 1 however, that no grant made under the provisions of 2 paragraph (c) of this subsection shall exceed 50% of the 3 direct costs of all approved training programs provided 4 by the employer or the employer's training agent or other 5 entity as defined in paragraph (b). Under this Section, 6 allowable costs include, but are not limited to: 7 (i) administrative costs of tracking, 8 documenting, reporting, and processing training 9 funds or project costs; 10 (ii) curriculum development; 11 (iii) wages and fringe benefits of employees; 12 (iv) training materials, including scrap 13 product costs; 14 (v) trainee travel expenses; 15 (vi) instructor costs, including wages, fringe 16 benefits, tuition, and travel expenses; 17 (vii) rent, purchase, or lease of training 18 equipment; and 19 (viii) other usual and customary training 20 costs. 21 (e) The Director will ensure that a minimum of one 22 on-site grant monitoring visit is conducted by the 23 Department either during the course of the grant period 24 or within 6 months following the end of the grant period. 25 The Department shall verify that the grantee's financial 26 management system is structured to provide for accurate, 27 current, and complete disclosure of the financial results 28 of the grant program in accordance with all provisions, 29 terms, and conditions contained in the grant contract. 30 (f) The Director may establish and collect a 31 schedule of charges from subgrantee entities and other 32 system users under federal job-training programs for 33 participating in and utilizing the department's automated 34 job-training program information systems where such HB2113 Engrossed -4- LRB9103897MWpr 1 systems and the necessary participation and utilization 2 is a requirement of the federal job-training programs. 3 All monies collected pursuant to this paragraph shall be 4 deposited into the Federal Job-Training Information 5 Systems Revolving Fund created in subsection (5). 6 (2) The Department is authorized to establish a program 7 of grants to universities, community colleges, research 8 institutions, research consortiums, other not-for-profit 9 entities, and Illinois businesses for the purpose of 10 fostering research and development in the high technology and 11 the service sector leading to the development of new products 12 and services that can be marketed by Illinois businesses. All 13 grant awards shall include a contract which may provide for 14 payment of negotiated royalties to the Department if the 15 product or service to be developed by the grantee is 16 subsequently licensed for production. 17 (a) Grants may be awarded to universities and 18 research institutions to assist them in making their 19 faculties and facilities available to Illinois 20 businesses. Such grants may be used by a university or 21 research institution for, including but not limited to 22 the following purposes: (i) to establish or enhance 23 computerized cataloging of all research labs and 24 university staff and make such catalogues available to 25 Illinois businesses; (ii) to market products developed by 26 the university to Illinois businesses; (iii) to review 27 publications in order to identify, catalog, and inform 28 Illinois businesses of new practices in areas such as 29 robotics, biotechnology; (iv) to build an on-line, 30 information and technology system that relies on other 31 computerized networks in the United States; (v) to assist 32 in securing temporary replacement for faculty who are 33 granted a leave of absence from their teaching duties for 34 the purpose of working full-time for an Illinois business HB2113 Engrossed -5- LRB9103897MWpr 1 to assist that business with technology transfer. 2 (b) Grants may be awarded to universities and 3 research institutions, research consortiums and other 4 not-for-profit entities for the purpose of identifying 5 and supporting Illinois businesses engaged in high 6 technology and service sector enterprises. Such Illinois 7 businesses identified and funded shall include recipients 8 of Small Business Innovation Research Program funds under 9 subsections (e) through (k) of Section 9 of the Small 10 Business Act. (Title 15 United States Codes, subsections 11 638(e)-638(k)). Entities receiving grants under this 12 paragraph (b) shall be known as commercialization centers 13 and shall engage in one or more of the following 14 activities: 15 (i) directing research assistance for new 16 venture creations; 17 (ii) general feasibility studies of new 18 venture ideas; 19 (iii) furthering the technical and 20 intellectual skills of the managers and owners of 21 Illinois small businesses; 22 (iv) commercialization of technology and 23 research; 24 (v) development of prototypes and testing new 25 products; 26 (vi) identify and assist in securing 27 financing; 28 (vii) marketing assistance; and 29 (viii) assisting Illinois inventors in finding 30 Illinois manufacturers to produce and market their 31 inventions. 32 A commercialization center may charge a nominal fee 33 or accept royalty agreements for conducting feasibility 34 studies and other services. HB2113 Engrossed -6- LRB9103897MWpr 1 (c) Grants may be awarded by the Department to 2 Illinois businesses to fund research and consultation 3 arrangements between businesses and universities, 4 community colleges, research institutions, research 5 consortiums and other not-for-profit entities within this 6 State. 7 The Department shall give priority to Illinois small 8 businesses in awarding grants. Each grant awarded under 9 this paragraph (c) shall provide funding for up to 50% of 10 the cost of the research or consultation arrangements, 11 not to exceed $100,000; provided that the grant recipient 12 utilizes Illinois not for profit research and academic 13 institutions to perform the research and development 14 function for which grant funds were requested. 15 (d) Grants may be awarded to research consortium 16 and other qualified applicants, in conjunction with 17 private sector or federal funding, for other creative 18 systems that bridge university resources and business, 19 technological, production and development concerns. 20 (e) For the purposes of subsection (2), (i) 21 "Illinois business" means a "small business concern" as 22 defined in Title 15 United States Code, Section 632, 23 which primarily conducts its business in Illinois; (ii) 24 "high technology" means any area of research or 25 development designed to foster greater knowledge or 26 understanding in fields such as computer science, 27 electronics, physics, chemistry or biology for the 28 purpose of producing designing, developing or improving 29 prototypes and new processes; (iii) "private sector" 30 shall have the meaning ascribed to it in Title 29 United 31 States Code, Section 1503; (iv) "University" means either 32 a degree granting institution located in Illinois as 33 defined in Section 2 of the Academic Degree Act, or a 34 State-supported institution of higher learning HB2113 Engrossed -7- LRB9103897MWpr 1 administered by the Board of Trustees of the University 2 of Illinois, the Board of Trustees of Southern Illinois 3 University, the Board of Trustees of Chicago State 4 University, the Board of Trustees of Eastern Illinois 5 University, the Board of Trustees of Governors State 6 University, the Board of Trustees of Illinois State 7 University, the Board of Trustees of Northeastern 8 Illinois University, the Board of Trustees of Northern 9 Illinois University, the Board of Trustees of Western 10 Illinois University, or the Illinois Community College 11 Board; (v) "venture" means any Illinois business engaged 12 in research and development to create new products or 13 services with high growth potential; (vi) Illinois 14 research institutions refers to not-for-profit entities, 15 which include federally-funded research laboratories, 16 that conduct research and development activities for the 17 purpose of producing, designing, developing, or improving 18 prototypes and new processes; and (vii) other 19 not-for-profit entities means non-profit organizations 20 based in Illinois that are primarily devoted to new 21 enterprise or product development. 22 (f) The Department may establish a program of grant 23 assistance on a matching basis to universities, community 24 colleges, small business development centers, community 25 action agencies and other not-for-profit economic 26 development agencies to encourage new enterprise 27 development and new business formation and to encourage 28 enterprises in this State. The Department may provide 29 grants, which shall be exempt from the provisions of 30 subsection (3) of this Section, to universities, 31 community colleges, small business development centers, 32 community action agencies and other not-for-profit 33 economic development entities for the purpose of making 34 loans to small businesses. All grant applications shall HB2113 Engrossed -8- LRB9103897MWpr 1 contain information as required by the Department, 2 including the following: a program operation plan; a 3 certification and assurance that the small business 4 applicants have received business development training or 5 education, have a business and finance plan and have 6 experience in the proposed business area; and a 7 description of the support services which the grant 8 recipient will provide to the small business. No more 9 than 10% of the grant may be used by the grant recipient 10 for administrative costs associated with the grant. 11 Grant recipients may use grant funds under this program 12 to make loans on terms and conditions favorable to the 13 small business and shall give priority to those 14 businesses located in high poverty areas, enterprise 15 zones, or both. 16 (3) There is created within the Department, a Technology 17 Innovation and Commercialization Grants-in-Aid Council which 18 shall consist of 2 representatives of the Department of 19 Commerce and Community Affairs appointed by the Department; 20 one representative of the Illinois Board of Higher Education, 21 appointed by the Board; one representative of science or 22 engineering appointed by the Governor; two representatives of 23 business, appointed by the Governor; one representative of 24 small business, appointed by the Governor; one representative 25 of the Department of Agriculture, appointed by the Director 26 of Agriculture; and one representative of agribusiness, 27 appointed by the Director of Agriculture. The Director of 28 Commerce and Community Affairs shall appoint one of the 29 Department's representatives to serve as chairman of the 30 Council. The Council members shall receive no compensation 31 for their services but shall be reimbursed for their expenses 32 actually incurred by them in the performance of their duties 33 under this subsection. The Department shall provide staff 34 services to the Council. The Council shall provide for review HB2113 Engrossed -9- LRB9103897MWpr 1 and evaluation of all applications received by the Department 2 under subsection (2) of this Section and make recommendations 3 on those projects to be funded. The Council shall also assist 4 the Department in monitoring the projects and in evaluating 5 the impact of the program on technological innovation and 6 business development within the State. 7 (4) There is hereby created a special fund in the State 8 Treasury to be known as the Technology Innovation and 9 Commercialization Fund. The moneys in such Fund may be used, 10 subject to appropriation, only for making grants pursuant to 11 subsection (2) of this Section and for the purposes of the 12 Technology Advancement and Development Act. All royalties 13 received by the Department shall be deposited in such Fund. 14 (5) There is hereby created a special fund in the State 15 treasury to be known as the Federal Job-Training Information 16 Systems Revolving Fund. The deposit of monies into this fund 17 shall be limited to the collection of charges pursuant to 18 paragraph (f) of subsection (1) of this Section. The monies 19 in the fund may only be used, subject to appropriation by the 20 General Assembly for the purpose of financing the maintenance 21 and operation of the automated Federal Job-Training 22 Information Systems pursuant to paragraph (f) of subsection 23 (1) of this Section. 24 (6) When the Department is involved in developing a 25 federal or State funded training or retraining program for 26 any employer, the Department will assist and encourage that 27 employer in making every effort to reemploy individuals 28 previously employed at the facility. Further, the Department 29 will provide a list of said employees to said employer for 30 consideration for reemployment and will report the results of 31 this effort to the Illinois Job Training Coordinating 32 Council. This requirement shall be in effect when the 33 following conditions are met: 34 (a) the employer is reopening, or is proposing to HB2113 Engrossed -10- LRB9103897MWpr 1 reopen, a facility which was last closed during the 2 preceding 2 years, 3 (b) a substantial number of the persons who were 4 employed at the facility before its most recent closure 5 remain unemployed, and 6 (c) the product or service produced by, or proposed 7 to be produced by, the employer at the facility is 8 substantially similar to the product or service produced 9 at the facility before its most recent closure. 10 (7) The Department, in cooperation with the Departments 11 of Human Services and Employment Security, may establish a 12 program to encourage community action agencies to establish 13 programs that will help unemployed and underemployed single 14 parents to identify, access, and develop, through such means 15 as counseling or mentoring, internal and external resources 16 that will enable those single parents to become emotionally 17 and financially self-sufficient. The intended primary 18 beneficiaries of the local programs shall be female heads of 19 households who are at least 22 but less than 46 years of age 20 and who are physically able to work but are unemployed or 21 underemployed. The Department may make grants, subject to 22 the availability of funding, to communities and local 23 agencies for the purpose of establishing local programs as 24 described in this subsection (7). A grant under this 25 subsection (7) shall be made for a period of one year and may 26 be renewed if the Department determines that the program is 27 successful in meeting its objectives. If the Department 28 determines that implementation of a program has resulted in a 29 savings of State moneys that otherwise would have been paid 30 to beneficiaries of the program, the Department, on renewing 31 a grant, may adjust the grant amount for those demonstrated 32 savings. For purposes of this subsection, a person is 33 underemployed if his or her income from employment is less 34 than 185% of the federal official poverty income guideline. HB2113 Engrossed -11- LRB9103897MWpr 1 (8) (a) Grants may be awarded by the Department to 2 foster cooperation among Illinois businesses by emphasizing 3 an industry-wide or sector-based approach to business 4 assistance. Grants will encourage groups of businesses to 5 work together on a cooperative development project that will 6 benefit all participants equally by providing matching funds 7 to industrial or regional business groups for the purpose of 8 solving common problems or meeting common needs such as joint 9 training, marketing, and exporting projects. The grant 10 recipients shall be not-for-profit corporations whose purpose 11 is to promote industrial and business development. 12 (b) Two or more Illinois businesses must cooperate 13 on the development project, and a 50% match is required. 14 The project must promote the development of one or more 15 sectors of Illinois industrial or business economy or the 16 economic development of a geographical region of the 17 State. 18 (Source: P.A. 89-4, eff. 1-1-96; 89-507, eff. 7-1-97; 90-454, 19 eff. 8-16-97.) 20 (20 ILCS 605/46.52a new) 21 Sec. 46.42a. Illinois Neighborhood Development Matching 22 Grant Program. 23 (a) Legislative findings and purpose. Nonprofit 24 community and neighborhood development organizations have 25 grown significantly over the past decade because this 26 organizational model has proven effective in: (i) sponsoring 27 projects and programs that help revitalize low-income 28 communities; (ii) encouraging meaningful resident involvement 29 in revitalization; (iii) developing local leadership; and 30 (iv) aggregating support from a multitude of public and 31 private sources. 32 This amendatory Act of the 91st General Assembly will 33 target State resources to support the development projects of HB2113 Engrossed -12- LRB9103897MWpr 1 new and expanding nonprofit community and neighborhood 2 economic development organizations that are combating 3 disinvestment in their local communities and neighborhoods. 4 (b) The Department of Commerce and Community Affairs 5 shall administer an Illinois Neighborhood Development 6 Matching Grant Program. The grant program shall: 7 (1) target State resources to offer State 2-to-1 8 matching grants, cash or in-kind, of a minimum amount of 9 $1,000 and a maximum amount of $50,000 with funds drawn 10 down on a quarterly or monthly reimbursement basis; and 11 (2) fund local administrative and development 12 costs, training, and professional services under 13 contract. For purposes of this paragraph: 14 (A) "professional services" include: planning 15 and research, such as feasibility studies, market 16 studies, and comprehensive and strategic plans; and 17 (B) "development costs" include: site 18 acquisition; site and community marketing; project 19 gap financing; construction, expansion, or 20 completion of sanitary sewers, roads and streets, 21 water lines, sidewalks, railroad spurs, and sidings; 22 viaduct clearance improvements; Phase I and Phase II 23 environmental site assessments; and environmental 24 remediation. 25 (c) Applicants shall be community development 26 corporations, community development organizations, community 27 based organizations, or similar not-for-profits. 28 (d) Funds may not be used for the provision of direct 29 financial assistance to businesses or development projects. 30 (e) The Department shall provide technical assistance on 31 preparing the grant application.