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91_HB4118eng HB4118 Engrossed LRB9110629MWgcA 1 AN ACT to amend the Department of Commerce and Community 2 Affairs Law of the Civil Administrative Code of Illinois by 3 adding Section 605-830. 4 Be it enacted by the People of the State of Illinois, 5 represented in the General Assembly: 6 Section 5. The Department of Commerce and Community 7 Affairs Law of the Civil Administrative Code of Illinois is 8 amended by adding Section 605-830 as follows: 9 (20 ILCS 605/605-830 new) 10 Sec. 605-830. Transportation to Work Program. 11 (a) There is created the Transportation to Work program 12 in the Department of Commerce and Community Affairs. The 13 program consists of the Transportation to Work Grants Program 14 and the Car Purchase Loans Program. 15 (b) Transportation to Work Grants Program. 16 (1) The Transportation to Work Grants Program is a 17 program of grants to units of local government for the 18 purpose of fulfilling plans those units of local 19 government have submitted to the Department for provision 20 of transportation assistance to low income workers to 21 allow those workers travel to and from their places of 22 employment. 23 (2) Except as otherwise provided in this paragraph, 24 the Department may not make more than one grant in any 25 one county of this State in any fiscal year. In counties 26 with a population of more than 3,000,000 containing a 27 municipality with a population of more than 1,000,000, 28 the municipality with a population of more than 1,000,000 29 and the other parts of the county shall each qualify as a 30 "county" for all purposes of this Section. The 31 Department must adopt, by rule, a system that distributes HB4118 Engrossed -2- LRB9110629MWgcA 1 the funds proportionately according to each county's 2 share of the statewide number of households that are 3 below 50% of the State median income. The distribution 4 system must also provide that in any year in which a 5 county's proportionate share of the funds appropriated 6 for the program would be below $5,000, that county may 7 not participate in the program and the available funds 8 shall be apportioned among the other counties. 9 (3) The Department shall solicit qualifying plans 10 from units of local government before each fiscal year 11 and shall include in the solicitation an estimate of the 12 expected level of available funds. In counties in which 13 more than one qualifying plan is submitted, the 14 Department must award the grant to the unit of local 15 government with the plan that will provide 16 transportation to work for the most low income workers 17 according to criteria established by the Department by 18 rule. If no unit of local government within a county 19 submits a plan by the deadline for submission of plans 20 announced by the Department, the funds allocated for that 21 county shall be proportionately distributed to increase 22 the grants made in that year to units of local government 23 in other counties. The Department shall make 24 proportional adjustments to the grants if the final 25 appropriation for the fiscal year differs from the 26 announced expected level of funding. 27 (4) The Department shall adopt rules for reports, 28 audits, review of public comments on plans, and 29 administration of the program. 30 (5) In this Section: 31 "Qualifying plan" means a plan that proposes to 32 use grant funds to provide transportation assistance 33 to low income workers. The plan must state the need 34 to be addressed in the specific locality, the plan HB4118 Engrossed -3- LRB9110629MWgcA 1 for addressing the need, the capacity of the unit of 2 local government to carry out the plan, the numbers 3 of low income workers residing in the locality 4 expected to be served with program funds, the means 5 of determining that the served workers are "low 6 income" as defined in this Section, the methods of 7 administration, and any other information specified 8 by the Department. The plan must take into account 9 public comments and suggestions and contain a 10 description of the process for gathering the 11 comments and suggestions and a summary of the 12 substance of the comments and suggestions submitted 13 in that process. Nothing in this Section prevents a 14 unit of local government from adding additional 15 funds from any source to its program. A qualifying 16 plan must also provide that no more than 10% of the 17 granted funds will be used for administration, and, 18 if funds other than granted funds will be used, it 19 must specify how administration will be paid for. 20 "Low income worker" means an employed person 21 living within, but not necessarily employed within, 22 the locality that has submitted a qualifying plan 23 whose gross income does not exceed 50% of the State 24 median income as annually announced by the 25 Department. The Department must adopt rules that 26 allow units of local government to presume that 27 people are low income workers when those persons 28 prove that they are current recipients of need-based 29 benefits or services as to which the eligibility 30 guidelines are at or below 50% of State median 31 income, including, but not limited to Kidcare, State 32 child care subsidies, food stamps, and school 33 breakfasts or lunches. 34 "Transportation assistance" means any HB4118 Engrossed -4- LRB9110629MWgcA 1 assistance that helps low income workers travel to 2 and from their places of employment, whether within 3 or outside of the locality submitting a qualifying 4 plan, and other places necessary to their work 5 effort, such as the location where their children 6 are cared for while they are at work. The unit of 7 local government shall specify the specific form of 8 assistance in a qualifying plan. There is no 9 limitation on the type of transportation assistance 10 that may be provided for in a qualifying plan. It 11 may, but need not necessarily, include subsidies for 12 public transportation or automobile mileage, 13 contracts with local taxi companies or public 14 transit companies, contracts for group travel in 15 vans, subsidies for car pooling, or other 16 transportation assistance strategies. 17 Transportation assistance must be available to low 18 income workers who meet the criteria specified in 19 the local plan as resources permit. 20 "Unit of local government" means a county or 21 one of its departments, a municipality or one of its 22 departments, a workforce board, a community college 23 or public university, a regional entity, or any 24 other unit of local government described in State 25 law. 26 (c) Car Purchase Loans Program. 27 (1) The Car Purchase Loans Program provides loans 28 to eligible workers who wish to purchase an automobile 29 that, in the judgment of the Department or contractor, is 30 in good condition and affordable to the worker, 31 considering all payments that will have to be made for 32 the acquisition and normal maintenance. 33 (2) Loans under the Car Purchase Loans Program 34 shall be available, to the extent resources permit, to HB4118 Engrossed -5- LRB9110629MWgcA 1 any person who qualifies as a "low income worker" under 2 paragraph (5) of subsection (b) and under the criteria 3 set by the Department for approval of loans. 4 (3) The Department shall contract out the 5 administration of the Car Purchase Loans Program to 6 non-profit organizations, to for-profit organizations on 7 a not-for-profit basis, or to units of local government. 8 The Department shall announce a request for proposals for 9 the contracting of the administration of the program. 10 Contracts may include a reasonable amount for 11 administrative expenses, with a maximum the Department 12 shall specify by rule. Legal proceedings for collection 13 on delinquent loans may be performed by the Department or 14 contracted separately. 15 (4) Loans may include an amount for the mechanical 16 inspection of the car being purchased to ascertain 17 whether it is in sufficiently "good condition", either as 18 is or with a reasonable amount of repairs, to be a 19 reliable source of transportation to and from work. 20 Loans may not be more than $2,500. Loans shall be a lien 21 on the title to the automobile. Loans must be made with 22 no more than 2% interest and must be repaid in equal 23 monthly installments over a period of not less than 24 24 months. If any payment is in default for more than 60 25 days, the contractor may pursue any remedies available 26 under law and the contract with the Department, but may 27 also extend additional forbearance on a case by case 28 basis. 29 At the option of the worker, and for a fee of $50 to 30 be added to the balance of the loan, if the worker has 31 payments to make on the automobile to a third party over 32 and above the amount of the loan, the first payment on 33 the loan may be delayed for up to one year from the 34 purchase of the automobile. When payments on the loan HB4118 Engrossed -6- LRB9110629MWgcA 1 begin, the worker shall receive a credit against the 2 principal of the loan of $25 for each month in which the 3 worker both makes the payment due on the loan and does 4 not receive cash assistance under the TANF program. 5 (5) The Department must adopt rules governing the 6 minimum standards contractors must observe in making and 7 collecting loans. The rules must leave reasonable leeway 8 for case-by-case decision-making by the contractor. The 9 Department must also adopt any other rules necessary for 10 the administration of the program. 11 Section 99. Effective date. This Act takes effect upon 12 becoming law.