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91_SB0040sam001
LRB9101877PTmbam02
1 AMENDMENT TO SENATE BILL 40
2 AMENDMENT NO. . Amend Senate Bill 40 by replacing
3 everything after the enacting clause with the following:
4 "ARTICLE 5.
5 Section 5-1. Short title. This Article may be cited as
6 the Economic Development for a Growing Economy Tax Credit
7 Act.
8 Section 5-3. Purpose. The General Assembly finds that
9 the Illinois economy, although currently strong, is still
10 highly vulnerable to other states and nations that have major
11 financial incentive programs for medium-sized and large firm
12 relocations. Because of the incentive programs of these
13 competitor locations, Illinois must move aggressively with
14 new business development investment tools so that Illinois is
15 more competitive in site location decision-making. The State
16 must not only continue to work with firms to help them locate
17 their new plants and facilities in Illinois but also must
18 provide competitive investment location tax credits in
19 support of the location and expansion of medium-sized and
20 large operations of commerce and industry. In an increasingly
21 global economy, Illinois' long-term development would benefit
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1 from rational, strategic use of State resources in support of
2 business development and growth.
3 Section 5-5. Definitions. As used in this Act:
4 "Agreement" means the Agreement between a Taxpayer and
5 the Department under the provisions of Section 5-50 of this
6 Act.
7 "Applicant" means a Taxpayer that is operating a business
8 located or that the Taxpayer plans to locate within the State
9 of Illinois and that is engaged in interstate or intrastate
10 commerce for the purpose of manufacturing, processing,
11 assembling, warehousing, or distributing products, conducting
12 research and development, providing tourism services, or
13 providing services in interstate commerce, office industries,
14 or agricultural processing, but excluding retail, retail
15 food, health, or professional services. "Applicant" does not
16 include a Taxpayer who closes or substantially reduces an
17 operation at one location in the State and relocates
18 substantially the same operation to another location in the
19 State. This does not prohibit a Taxpayer from expanding its
20 operations at another location in the State, provided that
21 existing operations of a similar nature located within the
22 State are not closed or substantially reduced. This also does
23 not prohibit a Taxpayer from moving its operations from one
24 location in the State to another location in the State for
25 the purpose of expanding the operation provided that the
26 Department determines that expansion cannot reasonably be
27 accommodated within the municipality in which the business is
28 located, or in the case of a business located in an
29 incorporated area of the county, within the county in which
30 the business is located, after conferring with the chief
31 elected official of the municipality or county and taking
32 into consideration any evidence offered by the municipality
33 or county regarding the ability to accommodate expansion
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1 within the municipality or county.
2 "Committee" means the Illinois Business Investment
3 Committee created under Section 5-25 of this Act within the
4 Illinois Economic Development Board.
5 "Credit" means the amount agreed to between the
6 Department and Applicant under this Act, but not to exceed
7 the Incremental Income Tax attributable to the Applicant's
8 project.
9 "Department" means the Department of Commerce and
10 Community Affairs.
11 "Director" means the Director of Commerce and Community
12 Affairs.
13 "Full-time Employee" means an individual who is employed
14 for consideration for at least 35 hours each week or who
15 renders any other standard of service generally accepted by
16 industry custom or practice as full-time employment.
17 "Incremental Income Tax" means the total amount withheld
18 during the taxable year from the compensation of New
19 Employees under Article 7 of the Illinois Income Tax Act
20 arising from employment at a project that is the subject of
21 an Agreement.
22 "New Employee" means:
23 (a) A Full-time Employee first employed by a
24 Taxpayer in the project that is the subject of an
25 Agreement and who is hired after the Taxpayer enters into
26 the tax credit Agreement.
27 (b) The term "New Employee" does not include:
28 (1) an employee of the Taxpayer who performs a
29 job that was previously performed by another
30 employee, if that job existed for at least 6 months
31 before hiring the employee;
32 (2) an employee of the Taxpayer who was
33 previously employed in Illinois by a Related Member
34 of the Taxpayer and whose employment was shifted to
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1 the Taxpayer after the Taxpayer entered into the tax
2 credit Agreement; or
3 (3) a child, grandchild, parent, or spouse,
4 other than a spouse who is legally separated from
5 the individual, of any individual who has a direct
6 or an indirect ownership interest of at least 5% in
7 the profits, capital, or value of the Taxpayer.
8 (c) Notwithstanding paragraph (1) of subsection
9 (b), an employee may be considered a New Employee under
10 the Agreement if the employee performs a job that was
11 previously performed by an employee who was:
12 (1) treated under the Agreement as a New
13 Employee; and
14 (2) promoted by the Taxpayer to another job.
15 (d) Notwithstanding subsection (a), the Department
16 may award Credit to an Applicant with respect to an
17 employee hired prior to the date of the Agreement if:
18 (1) the Applicant is in receipt of a letter
19 from the Department stating an intent to enter into
20 a credit Agreement;
21 (2) the letter described in paragraph (1) is
22 issued by the Department later than 15 days after
23 the effective date of this Act; and
24 (3) the employee was hired after the date the
25 letter described in paragraph (1) was issued.
26 "Noncompliance Date" means, in the case of a Taxpayer
27 that is not complying with the requirements of the Agreement
28 or the provisions of this Act, the last date upon which the
29 Taxpayer was in compliance with the requirements of the
30 Agreement and the provisions of this Act, as determined by
31 the Director, pursuant to Section 5-65.
32 "Pass Through Entity" means an entity that is exempt from
33 the tax under subsection (b) or (c) of Section 205 of the
34 Illinois Income Tax Act.
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1 "Related Member" means a person that, with respect to the
2 Taxpayer during any portion of the taxable year, is any one
3 of the following:
4 (1) An individual stockholder, if the stockholder
5 and the members of the stockholder's family (as defined
6 in Section 318 of the Internal Revenue Code) own
7 directly, indirectly, beneficially, or constructively, in
8 the aggregate, at least 50% of the value of the
9 Taxpayer's outstanding stock.
10 (2) A partnership, estate, or trust and any partner
11 or beneficiary, if the partnership, estate, or trust, and
12 its partners or beneficiaries own directly, indirectly,
13 beneficially, or constructively, in the aggregate, at
14 least 50% of the profits, capitol, stock, or value of the
15 Taxpayer.
16 (3) A corporation, and any party related to the
17 corporation in a manner that would require an attribution
18 of stock from the corporation to the party or from the
19 party to the corporation under the attribution rules of
20 Section 318 of the Internal Revenue Code, if the Taxpayer
21 owns directly, indirectly, beneficially, or
22 constructively at least 50% of the value of the
23 corporation's outstanding stock.
24 (4) A corporation and any party related to that
25 corporation in a manner that would require an attribution
26 of stock from the corporation to the party or from the
27 party to the corporation under the attribution rules of
28 Section 318 of the Internal Revenue Code, if the
29 corporation and all such related parties own in the
30 aggregate at least 50% of the profits, capital, stock, or
31 value of the Taxpayer.
32 (5) A person to or from whom there is attribution
33 of stock ownership in accordance with Section 1563(e) of
34 the Internal Revenue Code, except, for purposes of
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1 determining whether a person is a Related Member under
2 this paragraph, 20% shall be substituted for 5% wherever
3 5% appears in Section 1563(e) of the Internal Revenue
4 Code.
5 "Taxpayer" means an individual, corporation, partnership,
6 or other entity that has any Illinois Income Tax liability.
7 Section 5-10. Powers of the Department. The
8 Department, in addition to those powers granted under the
9 Civil Administrative Code of Illinois, is granted and shall
10 have all the powers necessary or convenient to carry out and
11 effectuate the purposes and provisions of this Act,
12 including, but not limited to, power and authority to:
13 (a) Promulgate procedures, rules, or regulations deemed
14 necessary and appropriate for the administration of the
15 programs; establish forms for applications, notifications,
16 contracts, or any other agreements; and accept applications
17 at any time during the year.
18 (b) Provide and assist Taxpayers pursuant to the
19 provisions of this Act, and cooperate with Taxpayers that are
20 parties to Agreements to promote, foster, and support
21 economic development, capital investment, and job creation or
22 retention within the State.
23 (c) Enter into agreements and memoranda of understanding
24 for participation of and engage in cooperation with agencies
25 of the federal government, local units of government,
26 universities, research foundations or institutions, regional
27 economic development corporations, or other organizations for
28 the purposes of this Act.
29 (d) Gather information and conduct inquiries, in the
30 manner and by the methods as it deems desirable, including
31 without limitation, gathering information with respect to
32 Applicants for the purpose of making any designations or
33 certifications necessary or desirable or to gather
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1 information to assist the Committee with any recommendation
2 or guidance in the furtherance of the purposes of this Act.
3 (e) Establish, negotiate and effectuate any term,
4 agreement or other document with any person, necessary or
5 appropriate to accomplish the purposes of this Act; and to
6 consent, subject to the provisions of any Agreement with
7 another party, to the modification or restructuring of any
8 Agreement to which the Department is a party.
9 (f) Fix, determine, charge, and collect any premiums,
10 fees, charges, costs, and expenses from Applicants,
11 including, without limitation, any application fees,
12 commitment fees, program fees, financing charges, or
13 publication fees as deemed appropriate to pay expenses
14 necessary or incident to the administration, staffing, or
15 operation in connection with the Department's or Committee's
16 activities under this Act, or for preparation,
17 implementation, and enforcement of the terms of the
18 Agreement, or for consultation, advisory and legal fees, and
19 other costs; however, all fees and expenses incident thereto
20 shall be the responsibility of the Applicant.
21 (g) Provide for sufficient personnel to permit
22 administration, staffing, operation, and related support
23 required to adequately discharge its duties and
24 responsibilities described in this Act from funds made
25 available through charges to Applicants or from funds as may
26 be appropriated by the General Assembly for the
27 administration of this Act.
28 (h) Require Applicants, upon written request, to issue
29 any necessary authorization to the appropriate federal,
30 state, or local authority for the release of information
31 concerning a project being considered under the provisions of
32 this Act, with the information requested to include, but not
33 be limited to, financial reports, returns, or records
34 relating to the Taxpayer's or its project.
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1 (i) Require that a Taxpayer shall at all times keep
2 proper books of record and account in accordance with
3 generally accepted accounting principles consistently
4 applied, with the books, records, or papers related to the
5 Agreement in the custody or control of the Taxpayer open for
6 reasonable Department inspection and audits, and including,
7 without limitation, the making of copies of the books,
8 records, or papers, and the inspection or appraisal of any of
9 the Taxpayer or project assets.
10 (j) Take whatever actions are necessary or appropriate
11 to protect the State's interest in the event of bankruptcy,
12 default, foreclosure, or noncompliance with the terms and
13 conditions of financial assistance or participation required
14 under this Act, including the power to sell, dispose, lease,
15 or rent, upon terms and conditions determined by the Director
16 to be appropriate, real or personal property that the
17 Department may receive as a result of these actions.
18 Section 5-15. Tax Credit Awards. Subject to the
19 conditions set forth in this Act, a Taxpayer is entitled to a
20 Credit against taxes imposed pursuant to subsections (a) and
21 (b) of Section 201 of the Illinois Income Tax Act that may be
22 imposed on the Taxpayer for a taxable year beginning on or
23 after January 1, 1999, if the Taxpayer is awarded a Credit by
24 the Department under this Act for that taxable year.
25 (a) The Department shall make Credit awards under this
26 Act to foster job creation and retention in Illinois.
27 (b) A person that proposes a project to create new jobs
28 in Illinois must enter into an Agreement with the Department
29 for the Credit under this Act.
30 (c) The Credit shall be claimed for the taxable years
31 specified in the Agreement.
32 (d) The Credit shall not exceed the Incremental Income
33 Tax attributable to the project that is the subject of the
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1 Agreement.
2 Section 5-20. Application for a project to create and
3 retain new jobs.
4 (a) Any Taxpayer proposing a project located or planned
5 to be located in Illinois may request consideration for
6 designation of its project, by formal written letter of
7 request or by formal application to the Department, in which
8 the Applicant states its intent to make at least a specified
9 level of investment and intends to hire or retain a specified
10 number of full-time employees at a designated location in
11 Illinois. As circumstances require, the Department may
12 require a formal application from an Applicant and a formal
13 letter of request for assistance.
14 (b) In order to qualify for Credits under this Act, an
15 Applicant's project must:
16 (1) involve an investment of at least $5,000,000 in
17 capital improvements to be placed in service and to
18 employ at least 25 New Employees within a designated
19 location within the State; or
20 (2) involve an investment of at least an amount (to
21 be expressly specified by the Department and the
22 Committee) in capital improvements to be placed in
23 service and will employ at least an amount (to be
24 expressly specified by the Department and the Committee)
25 of New Employees within a designated location within the
26 State, provided that the Department and the Committee
27 have determined that the project will provide a
28 substantial economic benefit to the State.
29 (c) After receipt of an application, the Department may
30 enter into an Agreement with the Applicant if the application
31 is accepted in accordance with Section 5-25.
32 Section 5-25. Review of Application.
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1 (a) In addition to those duties granted under the
2 Illinois Economic Development Board Act, the Illinois
3 Economic Development Board shall form a Business Investment
4 Committee for the purpose of making recommendations for
5 applications. At the request of the Board, the Director of
6 Commerce and Community Affairs or his or her designee, the
7 Director of the Bureau of the Budget or his or her designee,
8 the Director of Revenue or his or her designee, the Director
9 of Employment Security or his or her designee, and an elected
10 official of the affected locality, such as the chair of the
11 county board or the mayor, may serve as members of the
12 Committee to assist with its analysis and deliberations.
13 (b) At the Department's request, the Committee shall
14 convene, make inquiries, and conduct studies in the manner
15 and by the methods as it deems desirable, review information
16 with respect to Applicants, and make recommendations for
17 projects to benefit the State. In making its recommendation
18 that an Applicant's application for Credit should or should
19 not be accepted, which shall occur within a reasonable time
20 frame as determined by the nature of the application, the
21 Committee shall determine that all the following conditions
22 exist:
23 (1) The Applicant's project intends, as required by
24 subsection (b) of Section 5-20 to make the required
25 investment in the State and intends to hire the required
26 number of New Employees at a designated location in
27 Illinois.
28 (2) The Applicant's project is economically sound
29 and will benefit the people of the State of Illinois by
30 increasing opportunities for employment and strengthen
31 the economy of Illinois.
32 (3) That, if not for the Credit, the project would
33 not occur in Illinois, which may be demonstrated by any
34 means including, but not limited to, evidence the
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1 Applicant has multi-state location options and could
2 reasonably and efficiently locate outside of the State,
3 or demonstration that at least one other state is being
4 considered for the project, or evidence the receipt of
5 the Credit is a major factor in the Applicant's decision
6 and that without the Credit, the Applicant likely would
7 not create new jobs in Illinois, or demonstration that
8 receiving the Credit is essential to the Applicant's
9 decision to create or retain new jobs in the State.
10 (4) A cost differential is identified, using best
11 available data, in the projected costs for the
12 Applicant's project compared to the costs in the
13 competing state, including the impact of the competing
14 state's incentive programs. The competing state's
15 incentive programs shall include state, local, private,
16 and federal funds available.
17 (5) The political subdivisions affected by the
18 project have committed local incentives with respect to
19 the project.
20 (6) Awarding the Credit will result in an overall
21 positive fiscal impact to the State, as certified by the
22 Committee using the best available data.
23 (7) The Credit is not prohibited by Section 5-35 of
24 this Act.
25 Section 5-30. Limitation to amount of costs of specified
26 items. The total amount of the Credit allowed during all tax
27 years may not exceed the aggregate amount of costs incurred
28 by the Taxpayer during all prior tax years for the following
29 items, to the extent provided in the Agreement:
30 (1) capital investment, including, but not limited
31 to, equipment, buildings, or land;
32 (2) infrastructure development;
33 (3) debt service, except refinancing of current
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1 debt;
2 (4) research and development;
3 (5) job training and education;
4 (6) lease costs; or
5 (7) relocation costs.
6 Section 5-35. Relocation of jobs in Illinois. A
7 Taxpayer is not entitled to claim the Credit provided by this
8 Act with respect to any jobs that the Taxpayer relocates from
9 one site in Illinois to another site in Illinois.
10 Determinations under this Section shall be made by the
11 Department.
12 Section 5-40. Determination of Amount of the Credit. In
13 determining the amount of the Credit that should be awarded,
14 the Committee shall provide guidance on, and the Department
15 shall take into consideration, the following factors:
16 (1) The number and location of jobs created and
17 retained in relation to the economy of the county where
18 the projected investment is to occur.
19 (2) The potential impact on the economy of
20 Illinois.
21 (3) The magnitude of the cost differential between
22 Illinois and the competing state.
23 (4) The incremental payroll attributable to the
24 project.
25 (5) The capital investment attributable to the
26 project.
27 (6) The amount of the average wage and benefits
28 paid by the Applicant in relation to the wage and
29 benefits of the area of the project.
30 (7) The costs to Illinois and the affected
31 political subdivisions with respect to the project.
32 (8) The financial assistance that is otherwise
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1 provided by Illinois and the affected political
2 subdivisions.
3 Section 5-45. Amount and duration of the Credit. The
4 Department shall determine the amount and duration of the
5 Credit awarded under this Act. The duration of the Credit may
6 not exceed 10 taxable years. The Credit may be stated as a
7 percentage of the Incremental Income Tax attributable to the
8 Applicant's project and may include a fixed dollar
9 limitation.
10 Section 5-50. Contents of Agreements with Applicants.
11 The Department shall enter into an Agreement with an
12 Applicant that is awarded a Credit under this Act. The
13 Agreement must include all of the following:
14 (1) A detailed description of the project that is
15 the subject of the Agreement, including the location and
16 amount of the investment and jobs created or retained.
17 (2) The duration of the Credit and the first
18 taxable year for which the Credit may be claimed.
19 (3) The Credit amount that will be allowed for each
20 taxable year.
21 (4) A requirement that the Taxpayer shall maintain
22 operations at the project location that may be stated as
23 a minimum number of years or a multiple of the duration
24 of the Credit.
25 (5) A specific method for determining the number of
26 New Employees employed during a taxable year.
27 (6) A requirement that the Taxpayer shall annually
28 report to the Department the number of New Employees, the
29 Incremental Income Tax withheld in connection with the
30 New Employees, and any other information the Director
31 needs to perform the Director's duties under this Act.
32 (7) A requirement that the Director is authorized
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1 to verify with the appropriate State agencies the amounts
2 reported under paragraph (6), and after doing so shall
3 issue a certificate to the Taxpayer stating that the
4 amounts have been verified.
5 (8) A requirement that the Taxpayer shall provide
6 written notification to the Director not more than 30
7 days after the Taxpayer makes or receives a proposal that
8 would transfer the Taxpayer's State tax liability
9 obligations to a successor Taxpayer.
10 (9) A detailed description of the number of New
11 Employees to be hired, and the occupation and payroll of
12 the full-time jobs to be created or retained as a result
13 of the project.
14 (10) The minimum investment the business enterprise
15 will make in capital improvements, the time period for
16 placing the property in service, and the designated
17 location in Illinois for the investment.
18 (11) A requirement that the Taxpayer shall provide
19 written notification to the Director and the Committee
20 not more than 30 days after the Taxpayer determines that
21 the minimum job creation or retention, employment
22 payroll, or investment no longer is being or will be
23 achieved or maintained as set forth in the terms and
24 conditions of the Agreement.
25 (12) A provision that, if the total number of New
26 Employees falls below a specified level, the allowance of
27 Credit shall be suspended until the number of New
28 Employees equals or exceeds the Agreement amount.
29 (13) A detailed description of the items for which
30 the costs incurred by the Taxpayer will be included in
31 the limitation on the Credit provided in Section 5-30.
32 (14) Any other performance conditions or contract
33 provisions as the Department determines are appropriate.
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1 Section 5-55. Certificate of verification; submission to
2 the Department of Revenue. A Taxpayer claiming a Credit
3 under this Act shall submit to the Department of Revenue a
4 copy of the Director's certificate of verification under this
5 Act for the taxable year. However, failure to submit a copy
6 of the certificate with the Taxpayer's tax return shall not
7 invalidate a claim for a Credit.
8 For a Taxpayer to be eligible for a certificate of
9 verification, the Taxpayer shall provide proof as required by
10 the Department prior to the end of each calendar year,
11 including, but not limited to, attestation by the Taxpayer
12 that:
13 (1) The project has substantially achieved the
14 level of new full-time jobs specified in its Agreement.
15 (2) The project has substantially achieved the
16 level of annual payroll in Illinois specified in its
17 Agreement.
18 (3) The project has substantially achieved the
19 level of capital investment in Illinois specified in its
20 Agreement.
21 Section 5-60. Pass through entity.
22 (a) The shareholders or partners of a Taxpayer that is a
23 Pass Through Entity shall be entitled to the Credit allowed
24 under the Agreement.
25 (b) The Credit provided under subsection (a) is in
26 addition to any Credit to which a shareholder or partner is
27 otherwise entitled under a separate Agreement under this Act.
28 A Pass Through Entity and a shareholder or partner of the
29 Pass Through Entity may not claim more than one Credit under
30 the same Agreement.
31 Section 5-65. Noncompliance; notice; assessment. If the
32 Director determines that a Taxpayer who has received a Credit
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1 under this Act is not complying with the requirements of the
2 Agreement or all of the provisions of this Act, the Director
3 shall provide notice to the Taxpayer of the alleged
4 noncompliance, and allow the Taxpayer a hearing under the
5 provisions of the Illinois Administrative Procedure Act. If,
6 after such notice and any hearing, the Director determines
7 that a noncompliance exists, the Director shall issue to the
8 Department of Revenue notice to that effect, stating the
9 Noncompliance Date.
10 Section 5-70. Annual report. On or before July 1 each
11 year, the Committee shall submit a report to the Department
12 on the tax credit program under this Act to the Governor and
13 the General Assembly. The report shall include information on
14 the number of Agreements that were entered into under this
15 Act during the preceding calendar year, a description of the
16 project that is the subject of each Agreement, an update on
17 the status of projects under Agreements entered into before
18 the preceding calendar year, and the sum of the Credits
19 awarded under this Act. A copy of the report shall be
20 delivered to the Governor and to each member of the General
21 Assembly.
22 Section 5-75. Evaluation of tax credit program. On a
23 biennial basis, the Department shall evaluate the tax credit
24 program. The evaluation shall include an assessment of the
25 effectiveness of the program in creating new jobs in Illinois
26 and of the revenue impact of the program, and may include a
27 review of the practices and experiences of other states with
28 similar programs. The Director shall submit a report on the
29 evaluation to the Governor and the General Assembly after
30 June 30 and before November 1 in each odd-numbered year.
31 Section 5-80. Adoption of rules. The Department may
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1 adopt rules necessary to implement this Act. The rules may
2 provide for recipients of Credits under this Act to be
3 charged fees to cover administrative costs of the tax credit
4 program. Fees collected shall be deposited into the Economic
5 Development for a Growing Economy Fund.
6 Section 5-85. The Economic Development for a Growing
7 Economy Fund.
8 (a) The Economic Development for a Growing Economy Fund
9 is established to be used exclusively for the purposes of
10 this Act, including paying for the costs of administering
11 this Act. The Fund shall be administered by the Department.
12 (b) The Fund consists of collected fees, appropriations
13 from the General Assembly, and gifts and grants to the Fund.
14 (c) The State Treasurer shall invest the money in the
15 Fund not currently needed to meet the obligations of the Fund
16 in the same manner as other public funds may be invested.
17 Interest that accrues from these investments shall be
18 deposited into the Fund.
19 (d) The money in the Fund at the end of a State fiscal
20 year remains in the Fund to be used exclusively for the
21 purposes of this Act. Expenditures from the Fund are subject
22 to appropriation by the General Assembly.
23 Section 5-90. Program Terms and Conditions.
24 (a) Any documentary materials or data made available or
25 received by any member of a Committee or any agent or
26 employee of the Department shall be deemed confidential and
27 shall not be deemed public records to the extent that the
28 materials or data consists of trade secrets, commercial or
29 financial information regarding the operation of the business
30 conducted by the Applicant for or recipient of any tax credit
31 under this Act, or any information regarding the competitive
32 position of a business in a particular field of endeavor.
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1 (b) Nothing in this Act shall be construed as creating
2 any rights in any Applicant to enter into an Agreement or in
3 any person to challenge the terms of any Agreement.
4 Section 5-105. The Civil Administrative Code of Illinois
5 is amended by changing Section 46.62 as follows:
6 (20 ILCS 605/46.62) (from Ch. 127, par. 46.62)
7 Sec. 46.62. To establish and administer a Technology
8 Challenge Grant Program and an Illinois Advanced Technology
9 Enterprise Development and Investment Program as provided by
10 the Technology Advancement and Development Act and to expend
11 appropriations in accordance therewith.
12 (Source: P.A. 86-870; 86-1028.)
13 Section 5-110. The State Finance Act is amended by
14 adding Section 5.490 as follows:
15 (30 ILCS 105/5.490 new)
16 Sec. 5.490. The Economic Development for a Growing
17 Economy Fund.
18 Section 5-115. The Illinois Income Tax Act is amended by
19 adding Section 211 as follows:
20 (35 ILCS 5/211 new)
21 Sec. 211. Economic Development for a Growing Economy Tax
22 Credit. For tax years beginning on or after January 1, 1999,
23 a Taxpayer who has entered an Agreement under the Economic
24 Development for a Growing Economy Tax Credit Act is entitled
25 to a credit against the taxes imposed under subsections (a)
26 and (b) of Section 201 of this Act in an amount to be
27 determined in the Agreement. If the Taxpayer is a partnership
28 or Subchapter S corporation, the credit shall be allowed to
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1 the partners or shareholders in accordance with the
2 determination of income and distributive share of income
3 under Sections 702 and 704 and subchapter S of the Internal
4 Revenue Code. The Department, in cooperation with the
5 Department of Commerce and Community Affairs, shall prescribe
6 rules to enforce and administer the provisions of this
7 Section. This Section is exempt from the provisions of
8 Section 250 of this Act.
9 The credit shall be subject to the conditions set forth
10 in the Agreement and the following limitations:
11 (1) The tax credit shall not exceed the Incremental
12 Income Tax (as defined in Section 5-5 of the Economic
13 Development for a Growing Economy Tax Credit Act) with
14 respect to the project.
15 (2) The amount of the credit allowed during the tax
16 year plus the sum of all amounts allowed in prior years
17 shall not exceed 100% of the aggregate amount expended by
18 the Taxpayer during all prior tax years on approved costs
19 defined by Agreement.
20 (3) The amount of the credit shall be determined on
21 an annual basis; however, the credit against any State
22 tax liability may not extend beyond 10 taxable years
23 after the project is first approved and may not extend
24 beyond the expiration of the Agreement.
25 (4) The credit may not exceed the amount of taxes
26 imposed pursuant to subsections (a) and (b) of Section
27 201 of this Act. Any credit that is unused in the year
28 the credit is computed may be carried forward and applied
29 to the tax liability of the 5 taxable years following the
30 excess credit year. The credit shall be applied to the
31 earliest year for which there is a tax liability. If
32 there are credits from more than one tax year that are
33 available to offset a liability, the earlier credit shall
34 be applied first.
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1 (5) No credit shall be allowed with respect to any
2 Agreement for any taxable year ending after the
3 Noncompliance Date. Upon receiving notification by the
4 Department of Commerce and Community Affairs of the
5 noncompliance of a Taxpayer with an Agreement, the
6 Department shall notify the Taxpayer that no credit is
7 allowed with respect to that Agreement for any taxable
8 year ending after the Noncompliance Date, as stated in
9 such notification. If any credit has been allowed with
10 respect to an Agreement for a taxable year ending after
11 the Noncompliance Date for that Agreement, any refund
12 paid to the Taxpayer for that taxable year shall, to the
13 extent of that credit allowed, be an erroneous refund
14 within the meaning of Section 912 of this Act.
15 (6) For purposes of this Section, the terms
16 "Agreement", "Incremental Income Tax", and
17 "Noncompliance Date" have the same meaning as when used
18 in the Economic Development for a Growing Economy Tax
19 Credit Act.
20 Section 5-120. The Technology Advancement and
21 Development Act is amended by changing Sections 1002, 1003,
22 1004, 2001, 2002, 2003, the Article 3 heading, Sections 3001,
23 3002, 3003, 3004.5 and 4003 and adding the Article 3.5
24 heading and Sections 3501, 3505, 3510, 3515, 3520, 3525, and
25 3530 as follows:
26 (20 ILCS 700/1002) (from Ch. 127, par. 3701-2)
27 Sec. 1002. Findings and declaration of policy. The
28 General Assembly hereby finds that numerous economic
29 challenges confront the State, including dramatic increases
30 in foreign productivity and global market competition which
31 have forced a retrenchment in key business sectors and a
32 reduction in high paying manufacturing jobs which threaten to
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1 undermine Illinois' standard of living and quality of life.
2 In order to avoid economic stagnation and decline, Illinois
3 must keep pace with the global revolution in manufacturing
4 technology that is occurring in virtually every major
5 industrialized nation competing in the international
6 marketplace.
7 The General Assembly further finds that an appropriate
8 economic response would require increasing the level of
9 investment in research and development; utilizing industry,
10 State and local government, and labor, and academia to create
11 state-wide programs; and fostering an improved environment
12 for productivity and technological competitiveness. These
13 various programs would utilize Illinois' present resources in
14 many developing areas including health care and biomedical
15 research, information and telecommunications, computing and
16 electronic equipment, manufacturing technologies and
17 materials research, transportation and aerospace, geoscience,
18 financial and service industries, and agriculture and
19 biotechnology.
20 It is the purpose of this Act to identify, develop and
21 commercialize technology which will permit Illinois firms to
22 successfully compete in today's world markets, and to
23 authorize State and local government to promote
24 systematically, within the provisions of this Act, those
25 private sector and nonprofit research institution efforts
26 that will serve as intermediaries to achieve the programs
27 authorized under this Act; and continue to insure Illinois'
28 economic vitality and competitiveness through (i)
29 commercialization of new technology products; (ii)
30 modernization of services by technology enterprises; and
31 (iii) modernization of the industrial base of small and
32 medium-sized manufacturers.
33 (Source: P.A. 86-870.)
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1 (20 ILCS 700/1003) (from Ch. 127, par. 3701-3)
2 Sec. 1003. Definitions. The following words and
3 phrases, for the purposes of this Act, shall have the
4 meanings respectively ascribed to them, except when the
5 context otherwise requires, or except as otherwise provided
6 in this Act:
7 (a) "Advanced technology project" means any area of
8 basic or applied research or development which is designed to
9 foster greater knowledge or understanding, or which is
10 designed for the purposes of improving, designing,
11 developing, prototyping, producing or commercializing new
12 products, techniques, processes or technical devices in
13 present or emerging fields of health care and biomedical
14 research, information and communication systems, computing
15 and computer services, electronics, manufacturing, robotics
16 and materials research, transportation and aerospace,
17 agriculture and biotechnology, and finance and services.
18 (b) "Business expense" includes working capital
19 financing, the purchase or lease of machinery and equipment,
20 or the lease or purchase of real property, including
21 construction, renovation, or leasehold improvements, but does
22 not include refinancing current debt.
23 (c) "Business project" means any specific economic
24 development activity of a commercial, industrial,
25 manufacturing, agricultural, scientific, financial, service
26 or other not-for-profit nature, which is expected to yield an
27 increase in jobs or to result in the retention of jobs or an
28 improvement in production efficiency.
29 (d) "Department" means the Illinois Department of
30 Commerce and Community Affairs.
31 (e) "Director" means the Director of the Illinois
32 Department of Commerce and Community Affairs.
33 (f) "Financial assistance" means a loan, investment,
34 grant or the purchase of qualified securities or other means
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1 whereby financial aid is made to or on behalf of a business
2 project or advanced technology project.
3 "Intermediary organization" means any participating
4 organization including not-for-profit entities, for-profit
5 entities, State development authorities, institutions of
6 higher education, other public or private corporations, which
7 may include the Illinois Coalition, or other entities
8 necessary or desirable to further the purpose of this Act
9 engaged by the Department through any contract, agreement,
10 memoranda of understanding, or other cooperative arrangement
11 to deliver programs authorized under this Act.
12 "Investment loan" means any loan structured so that the
13 applicant repays the principal and interest and provides a
14 qualified security investment to serve both as additional
15 loan security and as an additional source of repayment.
16 (g) "Loan" means acceptance of any note, bond,
17 debenture, or evidence of indebtedness, whether unsecured or
18 secured by a mortgage, pledge, deed of trust, or other lien
19 on any property, or any certificate of, receipt for,
20 participation in, or an option to any of the foregoing. A
21 loan shall bear such interest rate, with such terms of
22 repayment, secured by such collateral, with other terms and
23 conditions, as the Department shall deem necessary or
24 appropriate.
25 (h) "Participating lender or investor" means any trust
26 company, bank, savings bank, credit union, merchant bank,
27 investment bank, broker, investment trust, pension fund,
28 building and loan association, savings and loan association,
29 insurance company, venture capital company or other
30 institution, community or State development corporation,
31 development authority authorized to do business by an Act of
32 this State, or other public or private financing intermediary
33 approved by the Department whose purposes include financing,
34 promoting, or encouraging economic development financing.
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1 (i) "Qualified security investments" means any stock,
2 convertible security, treasury stock, limited partnership
3 interest, certificate of interest or participation in any
4 profit sharing agreement, preorganization certificate or
5 subscription, transferable share, investment contract,
6 certificate of interest or participation in a patent or
7 application or, in general, any interest or instrument
8 commonly known as a "security" or any certificate for,
9 receipt for, guarantee of, or option, warrant or right to
10 subscribe to or purchase any of the foregoing, but not
11 including any instrument which contains voting rights or
12 which can be converted to contain voting rights in the
13 possession of the Department.
14 (Source: P.A. 88-453.)
15 (20 ILCS 700/1004) (from Ch. 127, par. 3701-4)
16 Sec. 1004. Duties and powers. The Department of
17 Commerce and Community Affairs shall establish and administer
18 any of the programs authorized under this Act subject to the
19 availability of funds appropriated by the General Assembly.
20 The Department may a Challenge Grant Program and an Advanced
21 Technology Investment Program and shall make awards from
22 general revenue fund appropriations, federal reimbursement
23 funds, the Technology Cooperation Fund, and the New
24 Technology Recovery Fund as provided under the provisions of
25 this Act. The Department, in addition to those powers
26 granted under The Civil Administrative Code of Illinois, is
27 granted the following powers to help administer the
28 provisions of this Act:
29 (a) To provide financial assistance as direct or
30 participation grants, loans or qualified security investments
31 to, or on behalf of, eligible applicants. Loans, grants and
32 investments shall be made for the purpose of increasing
33 research and development, commercializing technology,
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1 adopting advanced production and processing techniques, and
2 promoting job creation and retention within Illinois;
3 (b) To enter into agreements, accept funds or grants,
4 and engage in cooperation with agencies of the federal
5 government, local units of government, universities, research
6 foundations or institutions, regional economic development
7 corporations or other organizations for the purposes of this
8 Act;
9 (c) To enter into contracts, and letter of credit
10 agreements, and memoranda of understanding; and to provide
11 funds for participation agreements or to make any other
12 agreements or contracts or to invest, grant, or loan funds to
13 any participating intermediary organizations including,
14 not-for-profit entities, for-profit entities, State agencies
15 or authorities, government owned and contract operated
16 facilities, institutions of higher education, other lender,
17 private investor, public or private development corporations
18 corporation, or other entities entity necessary or desirable
19 to further the purpose of this Act. Any such agreement or
20 contract by an intermediary organization to deliver programs
21 authorized under this Act may include terms and provisions
22 including, but not limited to organization and development of
23 documentation, review and approval of projects, servicing and
24 disbursement of funds and other related activities;
25 (d) To fix, determine, charge and collect any premiums,
26 fees, charges, costs and expenses, including without
27 limitation, any application fees, commitment fees, program
28 fees, financing charges, or publication fees in connection
29 with the Department's activities under this Act;
30 (e) To establish forms for applications, notifications,
31 contracts, or any other agreements, and to promulgate
32 procedures, rules or regulations deemed necessary and
33 appropriate;
34 (f) To establish and regulate the terms and conditions
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1 of the Department's agreements and to consent, subject to the
2 provisions of any agreement with another party, to the
3 modification or restructuring of any agreement to which the
4 Department is a party;
5 (g) To require that recipients of financial assistance
6 shall at all times keep proper books of record and account in
7 accordance with generally accepted accounting principles
8 consistently applied, with such books open for reasonable
9 Department inspection and audits, including, without
10 limitation, the making of copies thereof;
11 (h) To require applicants or grantees receiving funds
12 under this Act to permit the Department to: (i) inspect and
13 audit any books, records or papers related to the project in
14 the custody or control of the applicant, including the making
15 of copies or extracts thereof, and (ii) inspect or appraise
16 any of the applicant's or grantee's business assets;
17 (i) To require applicants or grantees, upon written
18 request by the Department, to issue any necessary
19 authorization to the appropriate federal, State or local
20 authority for the release of information concerning a
21 business or business project financed under the provisions of
22 this Act, with the information requested to include, but not
23 be limited to, financial reports, returns, or records
24 relating to that business or business project;
25 (i-5) To provide staffing, administration, and related
26 support required to manage the programs authorized under this
27 Act and to pay for staffing and administration from the New
28 Technology Recovery Fund as appropriated by the General
29 Assembly. Administrative responsibilities may include, but
30 are not limited to, research and identification of the needs
31 of commerce and industry in this State; design of
32 comprehensive statewide plans and programs; direction,
33 management, and control of specific projects; and
34 communication and cooperation with entities about technology
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1 commercialization and business modernization;
2 (j) To take whatever actions are necessary or
3 appropriate to protect the State's interest in the event of
4 bankruptcy, default, foreclosure or noncompliance with the
5 terms and conditions of financial assistance or participation
6 required under this Act, including the power to sell,
7 dispose, lease or rent, upon terms and conditions determined
8 by the Director to be appropriate, real or personal property
9 which the Department may receive as a result thereof; and
10 (k) exercise such other powers as are necessary to
11 carry out the purposes of this Act.
12 (Source: P.A. 88-453.)
13 (20 ILCS 700/2001) (from Ch. 127, par. 3702-1)
14 Sec. 2001. Technology Challenge Grant Program.
15 (a) The Department may shall, subject to appropriated
16 funds, establish a Technology Challenge Grant Program to
17 provide initial grant funding requirements to help secure
18 federal research and development projects for this State and
19 to identify and develop technology programs capable of
20 commercialization or establish one or more programs
21 authorized under this Article as part of its Technology
22 Challenge Grant Program Initiative to serve as a catalyst and
23 assure a strong base to develop, transfer, or commercialize
24 new technologies. The Department shall, pursuant to Section
25 2003 of this Article, evaluate which grant applications best
26 serve the economic and technological objectives of the State.
27 (b) Grants shall be awarded from appropriations made for
28 that purpose to: (i) universities, colleges, community
29 colleges, nonprofit research foundations or laboratories,
30 State research institutions, industry technology
31 associations, or (ii) technology partnerships or technology
32 consortiums established by a formal joint project agreement
33 between: (1) two or more private industries, or (2) any
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1 combination of one or more private industries with one or
2 more universities, colleges, community colleges, nonprofit
3 research laboratories, nonprofit research foundations, or
4 State research institutions, or (iii) any private enterprise
5 developing or commercializing technology or leveraging
6 federal technology development financing, including, but not
7 limited to, the small business innovative research program.
8 (Source: P.A. 88-453.)
9 (20 ILCS 700/2002) (from Ch. 127, par. 3702-2)
10 Sec. 2002. Grant purposes.
11 (a) Grants authorized under this Article shall be
12 awarded only for the following purposes: (i) applied
13 innovation research that provides initial grant funding to
14 help serve critical research and development projects to
15 respond to unique, advanced technology projects for which no
16 other source of funding is available and which foster the
17 development of Illinois' economy through the advancement of
18 the State's economic, scientific, and technological assets,
19 or which are recognized as technology programs of exemplary
20 and outstanding research in the field of science and
21 technology; or (ii) to assist eligible applicants in the
22 State apply for, or qualify for and leverage, federal funds
23 awarded for advanced technology projects concerning research
24 and development, business innovation research or technical
25 development, or the transfer of useful technology to the
26 private sector; (ii) university and industry partnerships
27 that create high-skill employment opportunities and
28 internship activities in the communities that enable
29 graduates and faculty to stay in Illinois and university and
30 industry initiatives that strengthen the relationship between
31 industry and academia in Illinois so that applied university
32 research is responsive to the needs of the various state
33 industries and industry clusters; (iii) centers of excellence
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1 in technology commercialization, innovation evaluation, and
2 intellectual property management that encourages the growth
3 of new enterprises based on technologies developed at
4 Illinois research centers including to fund technology
5 partnerships, technology consortiums or research centers and
6 industry technology associations that are, or will be,
7 established to perform research and development in present
8 and emerging technologies that can be developed for use by
9 commerce and industry; and (iv) , or to transfer technology
10 transfer projects involving promotion of new or innovative
11 technologies among small and medium-sized Illinois
12 manufacturers where the technologies have immediate
13 commercial application; and conduct training and information
14 dissemination that is directly applicable to small and
15 medium-sized Illinois manufacturer needs; or information
16 transfer to Illinois based research institution regarding
17 best practice in industrial commercialization of technology
18 developments; (v) planning and operational support for
19 statewide support that improve practices in technology
20 commercialization including and (iv) to assist in the needs
21 assessment and evaluation of the status of technology
22 implementation throughout the State.
23 (b) Grants awarded pursuant to this Article may be used
24 to help subsidize expenses, as approved by the Department,
25 for capital improvements, equipment, contractual services,
26 commodities, personnel, support costs, including
27 telecommunication, electronic data and commodities, or other
28 costs.
29 (Source: P.A. 88-453.)
30 (20 ILCS 700/2003) (from Ch. 127, par. 3702-3)
31 Sec. 2003. Grant evaluation and amounts.
32 (a) The Department shall evaluate grant applications
33 based upon criteria provided under this Section. The
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1 Department shall not award any Challenge Grant that is not
2 recommended for funding by the Illinois Governor's Science
3 and Technology Advisory Committee and the Illinois or
4 associated private sector Coalition. In determining which
5 grant applicants shall be awarded a Challenge Grant, the
6 Department shall conduct an evaluation of prior compliance
7 with loan or grant agreements for any grant applicant
8 previously funded by the Department. In addition, the
9 Department shall consider the following criteria in
10 determining grant awards: the relationship of a proposed
11 advanced technology project to the State's future economic
12 growth; the qualifications and expertise of consultants,
13 firms or organizations undertaking the effort; the potential
14 for leveraging federal or private research dollars, or both,
15 for the initiative; the extent of the capacity of the
16 applicant or the applicant partnership or consortium to
17 finance the initiative; the potential for adapting,
18 commercializing or adopting the results of the applicant's
19 project for the economic benefit of the State; and the
20 likelihood that the project has a potential for creating new
21 jobs or retaining current jobs in the State.
22 (b) The Director of the Department shall determine the
23 level of the grant award and shall determine the share of
24 total directly attributable costs of an advanced technology
25 project which may be considered for funding under this
26 Article.
27 (c) The Department and the Department of Natural
28 Resources are hereby authorized to cooperate with and provide
29 support to the Illinois Governor's Science and Technology
30 Advisory Committee and the Illinois its associated private
31 sector Coalition. Such support may include the provision of
32 office space and may be technical, advisory or operational in
33 nature.
34 (Source: P.A. 89-445, eff. 2-7-96; revised 12-2-98.)
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1 (20 ILCS 700/Art. 3 heading)
2 ARTICLE 3. ILLINOIS ADVANCED TECHNOLOGY
3 ENTERPRISE DEVELOPMENT AND INVESTMENT PROGRAM
4 (20 ILCS 700/3001) (from Ch. 127, par. 3703-1)
5 Sec. 3001. Illinois Advanced Technology Enterprise
6 Development and Investment Program. The Department shall,
7 subject to appropriated funds, establish an Advanced
8 Technology Enterprise Development Investment Program to: (i)
9 provide investments, loans, or qualified security investments
10 to or on behalf of young or growing businesses, in
11 cooperation with private investment companies, private
12 investors or conventional lending institutions which also
13 assume a portion of the investment loan or financing for a
14 business project, or on behalf of new or emerging business
15 through financial intermediaries as they commercialize
16 advanced technology projects; (ii) fund regional technology
17 enterprise development centers that make available resources
18 and expertise in furthering the technical or managerial
19 skills of owners; aid the ventures in locating financing; and
20 help new companies with product development and marketing
21 provide loans to, or on behalf of, the State's mature, small
22 or medium-sized businesses for the modernization and
23 installation of advanced technologies or processes which will
24 improve the business' production systems and work
25 organization, which in turn will preserve and create private
26 sector jobs by increasing the firm's long-term competitive
27 viability; (iii) provide grants to, or on behalf of,
28 Illinois' mature, small or medium-sized businesses
29 undertaking feasibility studies, competitiveness assessments
30 and productivity audits to restore their businesses'
31 competitiveness; and (iv) provide qualified investments,
32 loans or grants to development credit corporations, financial
33 intermediaries or other entities whose purpose includes
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1 financing, promoting or encouraging commercialization,
2 adoption or implementation of advanced technologies,
3 processes or products.
4 (Source: P.A. 86-870.)
5 (20 ILCS 700/3002) (from Ch. 127, par. 3703-2)
6 Sec. 3002. Investment requirements. Any direct
7 financial assistance shall:
8 (a) Be awarded only if other financing with respect to
9 the business project is provided. Other financing may be in
10 the form of any loan, equity position, convertible preferred
11 stock, letter of credit, guarantee, limited partnership
12 interest, bond purchase or any other form approved by the
13 Department;
14 (b) Be protected by adequate security. Financial
15 assistance may be secured by first or second mortgage
16 positions on real or personal property, by royalty payments,
17 by personal notes or guarantees, or by any other security
18 satisfactory to the Department to secure repayment, if
19 required, by the financial assistance agreement;
20 (c) Be in such principal amount and form, and contain
21 such terms and provisions with respect to the property,
22 insurance, repairs, alteration, payment of taxes and
23 assessments, delinquency charges, default remedies,
24 additional security and other matters as the Department shall
25 determine adequate to protect the public interest.
26 (Source: P.A. 88-453.)
27 (20 ILCS 700/3003) (from Ch. 127, par. 3703-3)
28 Sec. 3003. Applications.
29 (a) An application for direct financial assistance shall
30 be submitted to the Department in accordance with forms and
31 filing fees prescribed by the Department. The application
32 may require facts about the company's history, job
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1 opportunities, stability of employment, past and present
2 condition and structure, actual and pro-forma income
3 statements, present and future market prospects and
4 management qualification, and any other facts deemed material
5 to the financing request. The Department shall obtain such
6 additional information concerning the application as it deems
7 necessary and diligent.
8 The Department may create a credit review committee which
9 shall, on the basis of the application, and any other
10 information, prepare a report concerning the
11 credit-worthiness of the proposed borrower, the financial
12 commitment of other investors, the manner in which the
13 proposed business project will advance the economy of the
14 State, and the soundness of the proposed financial assistance
15 agreement.
16 After consideration of such report, and after such other
17 action as it deems appropriate, the Department shall approve
18 or deny the application. If the Department approves the
19 application, its approval shall specify the amount of funds
20 to be provided and the financial assistance agreement
21 provisions which shall apply to the applicant. The applicant
22 shall be promptly notified of such action by the Department.
23 (b) The Department may, subject to available
24 appropriated funds, provide grants or investments in
25 revolving fund portfolios with intermediary organizations or
26 participating lenders or investors. The financial assistance
27 may be made be available to intermediaries that assume a
28 responsibility for the administration of the projects funded
29 through the grant or investment.
30 Applications shall be submitted to the Department in
31 accordance with forms and filing fees prescribed by the
32 Department. The application may require facts about the
33 intermediary's history, past, and present condition and
34 structure, actual, and pro-forma income statements, present
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1 and future market prospects and management qualification, and
2 any other facts deemed material to the financing request.
3 (Source: P.A. 86-870.)
4 (20 ILCS 700/3004) (from Ch. 127, par. 3703-4)
5 Sec. 3004. Investment purpose.
6 (a) Direct qualified investments, loans, or
7 participation investments in loan and investment or loan
8 portfolios with financial intermediaries authorized by this
9 Article 1 of this Act may be made for the purpose of
10 financing any new process, technique, product, service or
11 device which is, or which may be, capable of being reduced to
12 practice, and which is, or which may be, commercially
13 exploitable by (i) young new or growing Illinois businesses
14 or (ii) to help applicants who have qualified for Federal
15 Small Business Innovation Research funds.
16 Financial assistance proceeds may be used for expenses
17 that include, but are not limited to, costs incurred for
18 research and development, amortizable organizational costs,
19 working capital financing, the purchase or lease of machinery
20 and equipment, and the acquisition, improvement or
21 rehabilitation of land and buildings. In determining if
22 direct or participation qualified security investments or
23 loans are to be made, the Department shall find that there is
24 a likelihood of commercial feasibility given the state of
25 development of the proposed product, process, or technical
26 device, and that there is a likelihood of increased job
27 opportunities in the near term as a result of the security
28 investment. Direct qualified security investments or
29 investment loans the Department's participation in the
30 qualified security investment or loan portfolio of an
31 authorized financial intermediary for an eligible applicant
32 shall not be made for more than $500,000 and shall not be
33 made for more than 50% of the business project costs unless
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1 the Director determines that a waiver of these limits is
2 required to meet the purpose of this Act. In making a
3 determination to participate in an the qualified security
4 investment or loan portfolio of an authorized participating
5 lender or investor financial intermediary on behalf of
6 eligible applicants, the Department shall find that the
7 administering financial intermediary is capable of
8 effectively evaluating the commercialization feasibility of
9 the proposed product, process, service or technical device
10 technology and the likelihood of increased job creation
11 impact that may result from project financing. In no
12 instance shall the Department's participation in an the
13 qualified investment or and loan portfolio of any authorized
14 participating lender or investor financial intermediary
15 exceed $2,000,000 at one time.
16 (b) A loan made for company modernization or retooling
17 may be for any purpose consistent with the objectives of this
18 Act including, but not limited to, purchases of advanced
19 machinery, equipment and tooling; organizational expenses for
20 services, personnel training, corporate restructuring;
21 working capital; acquisition, improvement or rehabilitation
22 of land and buildings which are an integral part of a new
23 production or process technology; or any other business
24 expense reasonably related to the project. In determining if
25 a loan is to be provided, the Department shall determine
26 whether there will be an expected improvement in production
27 levels, quality of output or timeliness of delivery and that
28 the number of jobs to be created or retained is reasonable in
29 relation to the loan funds requested. A loan to eligible
30 applicants for modernization or retooling shall not be made
31 for more than $500,000 or for more than 25% of the business
32 project costs unless the Director of the Department
33 determines that a waiver of these limits is required to meet
34 the purposes of this Act.
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1 (c) Grants may be made for the purpose of financing
2 feasibility studies, competitive assessments or productivity
3 services which the Department determines may result in
4 technology enhancement, retooling, restructuring or other
5 competitiveness improvements. In determining the amount of a
6 grant, the Department shall: (i) examine the level of
7 expertise of the consultant or firm undertaking the
8 feasibility study or competitive assessment; (ii) evaluate
9 the likelihood of an applicant's proposed feasibility study
10 or competitive assessment resulting in a substantial
11 improvement in the applicant's operations; (iii) determine
12 whether that improvement will result in the creation or
13 retention of jobs. Grants to eligible applicants shall not
14 exceed $100,000 or 50% of the project costs unless the
15 Director of the Department determines that a waiver of these
16 limits is required to meet the purposes of this Act.
17 (Source: P.A. 88-453.)
18 (20 ILCS 700/3004.5 new)
19 Sec. 3004.5. Illinois Technology Enterprise Centers
20 Requirements.
21 (a) The Department may, subject to available
22 appropriated funds, working with the Illinois Coalition,
23 establish one or more regional technology enterprise
24 development centers whose mission is to assist entrepreneurs,
25 innovators, and start-up firms in high-growth, high
26 technology sectors in furthering the technical or managerial
27 skills of owners; aid the ventures in locating financing; and
28 help new companies with product development and marketing in
29 support of new venture formation within the State.
30 (b) The Department may provide grants or may provide
31 cost share or reimbursements pursuant to this Section to
32 support the operation of technology enterprise development
33 centers. Grants awarded pursuant to this Article may be used
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1 to help subsidize expenses, as approved by the Department,
2 for revolving funds, personnel, support costs, capital
3 improvements, equipment, contractual services, commodities,
4 including telecommunication or other costs.
5 (c) Technology enterprise development centers may
6 provide crucial business information at affordable prices for
7 firms that are developing early-stage, technology-oriented
8 manufacturing including (i) general or short-term assistance,
9 general outreach, feasibility studies for new venture
10 formation, and research assistance for new venture creation;
11 (ii) innovation evaluation and market research to evaluate
12 the viability of technology, product, or service or the
13 market potential of technology, product, or service; (iii)
14 technical assistance related to management and operations and
15 strategic partnering and assistance in the implementation of
16 strategic manufacturing and marketing alliances; and (iv)
17 service in locating new technologies or technological
18 solutions.
19 (d) Technology enterprise development centers may
20 provide financial services that include (i) financial
21 packaging to enhance proposals and make companies more
22 competitive for federal or private funding; (ii) access to
23 private investor capital through venture capital events and
24 regional venture capital networking programs; and (iii)
25 management of local for-profit or limited profit seed capital
26 funds.
27 (e) Technology enterprise development centers may address
28 local shortfalls of capital to commercialize new technology
29 by providing pre-seed financing to start-up, technology-based
30 businesses. Financing options could include micro-loans,
31 small grants, and equity investment capital for seed funding,
32 product commercialization and prototype development, and
33 commercial introduction and marketing.
34 (f) The Department may provide grant funds made
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1 available to support professional development and capacity
2 building of the technology enterprise development centers
3 within the State as may be required for the administration,
4 operations, research, analysis, or training of the centers.
5 (g) In determining which applicants shall be awarded a
6 grant, the Department shall conduct an evaluation of prior
7 compliance with loan or grant awards; the relationship of a
8 proposed project to the State's future economic growth; the
9 qualifications and expertise of organizations undertaking the
10 effort; the applicants understanding of the requirements and
11 needs of entrepreneurs, innovators, and start-up firms in
12 high-growth, high technology sectors; the potential of the
13 applicant's project to provide an economic benefit of the
14 State; and the likelihood that the project has a potential
15 for creating new ventures in the State.
16 (h) The Director of the Department shall determine the
17 level of the grant award and shall determine the share of
18 total directly attributable costs of the project that may be
19 considered for funding under this Article.
20 (20 ILCS 700/Art. 3.5 heading new)
21 ARTICLE 3.5. BUSINESS MODERNIZATION INITIATIVE
22 (20 ILCS 700/3501 new)
23 Section 3501. Business Modernization Initiative. The
24 Department may create one or more programs under this Article
25 to assist the State's existing mature business and industry
26 base to adopt and use appropriate technologies. The programs
27 may vary in breadth of activities, services, and projects in
28 accordance with the level or complexity of the manufacturers'
29 needs or problems. The Department's programs shall emphasize
30 the provision of comprehensive assistance.
31 (20 ILCS 700/3505 new)
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1 Section 3505. Modernization Retooling Loan Program.
2 (a) The Department may establish, subject to available
3 appropriated funds, a loan program that will improve
4 businesses' production systems and work organization to
5 preserve and create private sector jobs by increasing the
6 firms' long-term competitive viability. The program may
7 provide loans to, or on behalf of, the State's mature, small,
8 or medium-sized businesses for the modernization and
9 installation of advanced technologies or processes.
10 (b) A loan made for company modernization or retooling
11 may be for any purpose consistent with the objectives of this
12 Act including, but not limited to, purchases of advanced
13 machinery, equipment, and tooling; organizational expenses
14 for services, personnel training, and corporate
15 restructuring; working capital; acquisition, improvement,
16 or rehabilitation of land and buildings that are an integral
17 part of a new production or process technology; or any other
18 business expense reasonably related to the project. No loan
19 made by the Department shall be used to pay for the
20 retirement of previous debt unless the debt is a part of the
21 purchase or lease of machinery or equipment that is being
22 upgraded.
23 (c) In determining if a loan is to be provided, the
24 Department shall determine whether there will be an expected
25 improvement in production levels, quality of output, or
26 timeliness of delivery and that the number of jobs to be
27 created or retained is reasonable in relation to the loan
28 funds requested. A loan to an eligible applicant for
29 modernization or retooling shall not be made for more than
30 $500,000 or for more than 25% of the business project costs
31 unless the Director determines that a waiver of these limits
32 is required to meet the purposes of this Act.
33 (20 ILCS 700/3510 new)
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1 Section 3510. Development Corporation Program.
2 (a) The Department may provide, subject to available
3 appropriated funds, financial assistance to the State's
4 mature, small, or medium-sized businesses through development
5 corporations that assume a responsibility for the
6 administration of the loan projects for the modernization and
7 installation of advanced technologies.
8 (b) Development corporation financial assistance may be
9 in the form of direct loans, grants, or purchases of
10 qualified securities or financial assistance. Development
11 credit corporations, financial intermediaries, or other
12 entities whose purpose includes financing, promoting, or
13 encouraging commercialization, adoption, or implementation of
14 advanced technologies, processes, or products, as determined
15 by the Department, may participate in this program.
16 (c) Financial assistance authorized under this Section
17 shall be used by the development corporation for loans or
18 investments to firms to improve the business's production
19 systems and work organization that will preserve and create
20 private sector jobs by increasing the firm's long-term
21 competitive viability and may be used for the planning and
22 operation of the development corporation as approved by the
23 Department through its agreement with the development
24 corporation.
25 (d) The Department is authorized to rely upon, and may
26 provide for in the execution of an agreement, the
27 participating lender's or investor's review on behalf of the
28 State and approval of the credit, collateral security, and
29 documentation; determination of eligibility, economic results
30 expected, and the prospects for viability and repayment; the
31 collection and use of fees, premiums, or charges; the
32 organization, servicing, and disbursement of financial
33 assistance; and such other purposes and activities as the
34 Department, in its sole discretion, shall determine to be
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1 reasonable, appropriate, and consistent with the purposes of
2 this Article.
3 (20 ILCS 700/3515 new)
4 Section 3515. Modernization grants.
5 (a) Subject to available appropriated funds,
6 modernization grants may be made for the purpose of
7 financing, competitive assessments, or productivity
8 improvement services that the Department determines may
9 result in technology enhancement, retooling, restructuring,
10 or other competitiveness improvements. Grants may be made
11 to, or on behalf of, Illinois' mature, small, or medium-sized
12 businesses for (i) undertaking feasibility studies,
13 competitiveness assessments, and productivity audits to
14 restore their businesses' competitiveness or (ii) the
15 modernization and installation of advanced manufacturing
16 systems or processes that will improve the businesses'
17 production systems and work organization, or will preserve
18 and create private sector jobs by increasing the firms'
19 long-term competitive viability.
20 (b) Assistance authorized under this Section may be in
21 the form of direct grant agreements, agreements with private
22 sector consultants on behalf of a firm, or agreements with
23 participating intermediary organizations as authorized under
24 Article 1.
25 (c) In determining the amount of a modernization grant,
26 the Department shall: (i) examine the level of expertise of
27 the consultant or firm undertaking the competitiveness
28 assessment or productivity improvement services; (ii)
29 evaluate the likelihood of an applicant's proposed
30 competitiveness assessment or productivity improvement
31 services resulting in a substantial improvement in the
32 applicant's operations; and (iii) determine whether
33 improvement will result in the creation or retention of jobs.
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1 Modernization grants to eligible applicants shall not exceed
2 $100,000 or 50% of the project costs, unless the Director
3 determines that a waiver of these limits is required to meet
4 the purposes of this Act.
5 (20 ILCS 700/3520 new)
6 Section 3520. Manufacturing Extension Program.
7 (a) The Department may establish, subject to available
8 appropriated funds, a program of statewide manufacturing
9 extension centers serving the geographic needs of the State's
10 manufacturers, whose mission is to assist small or
11 medium-sized manufacturers with technological advancement,
12 for continuous improvement of business practices for these
13 firms to be better positioned to succeed against global
14 competition.
15 (b) The Department may provide grants or may provide
16 cost share or reimbursements under this Section to support
17 the operation of manufacturing extension deliverers,
18 including organizations financed through a federal
19 manufacturing extension partnership program. Manufacturing
20 extension deliverers can include universities and colleges,
21 regional or sectorial based organizations, technical
22 societies, or other similar groups.
23 (c) The Department may provide grant funds made
24 available under this Act to support professional development
25 and capacity building of the manufacturing extension system
26 within the State as may be required for the administration,
27 operations, research, analysis, promotion, or training of
28 geographic based manufacturing extension centers.
29 (d) In determining which applicants shall be awarded a
30 grant, the Department shall conduct an evaluation of prior
31 compliance with awards programs; the relationship of a
32 proposed project to the State's future economic growth; the
33 qualifications and expertise of organizations undertaking the
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1 effort; the applicant's understanding of the requirements and
2 needs of the target groups served; the potential of the
3 applicant's project to provide an economic benefit of the
4 State; the methods engaged to measure and track performance;
5 and the likelihood that the project has a potential for
6 improving the competitiveness of small and mid-sized
7 manufacturers.
8 (20 ILCS 700/3525 new)
9 Sec. 3525. Manufacturing and Export Base Services.
10 (a) The Department may, subject to available appropriated
11 funds, establish a program of statewide assistance to the
12 manufacturing and services export base of the State serving
13 the sector-wide needs of small and medium-sized companies.
14 (b) The Department may provide grants, cost share funds,
15 or reimbursements: to State or substate programs providing
16 better access to information; to reduce the impediments to
17 the flow of technical information; and to provide Illinois
18 manufacturers, producer firms, and export services firms with
19 better or more timely access to the State's and the nation's
20 technology base, including industrial and engineering
21 consulting practices, university and research laboratory
22 based engineers, private commercial product vendors, and
23 other sources of technology or non-technology services.
24 (c) The Department may provide grants to those private,
25 public, and non-profit research institutions and
26 organizations that agree to serve as an intermediary to
27 achieve the purpose set forth in this Section that continues
28 to ensure Illinois' economic vitality and competitiveness.
29 (d) The Department may seek out applicants that may be
30 considered for a grant, and may provide an award based on the
31 qualifications and expertise of organizations undertaking the
32 effort, the applicants understanding of the requirements and
33 needs of the target groups served, and the likelihood that
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1 the proposed project will improve the State's future economic
2 potential.
3 (20 ILCS 700/3530 new)
4 Sec. 3530. Eligible applicants; forms of assistance.
5 Financial assistance may be made to, or on behalf of, any
6 for-profit entity, sole proprietorship, partnership,
7 corporation, or joint venture carrying on business, or
8 organized to carry on business, in this State. Financial
9 assistance authorized under this Article may be made
10 available to not-for-profit organizations, including
11 educational agencies, business or trade associations,
12 economic development organizations, and participating
13 lenders, in the form of participation agreements, direct
14 loans, grant agreements, purchases of qualified security, or
15 any other form as determined by the Department.
16 (20 ILCS 700/4003) (from Ch. 127, par. 3704-3)
17 Sec. 4003. Federal programs. The Department is authorized
18 to accept and expend federal monies in furtherance of this
19 Act and to use funds appropriated under this Act for programs
20 pending reimbursement from federal funds, except that the
21 terms and conditions established under this Act, which are
22 inconsistent with or prohibited by the federal authorization
23 under which such monies are made available, shall not apply
24 with respect to the expenditure of such monies.
25 (Source: P.A. 86-870.)
26 ARTICLE 10.
27 Section 10-5. The Civil Administrative Code of Illinois
28 is amended by changing Section 46.32a as follows:
29 (20 ILCS 605/46.32a) (from Ch. 127, par. 46.32a)
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1 Sec. 46.32a. Labor-management-community relations.
2 (a) Because economic development investment programs
3 must be supplemented with efforts to maintain a skilled,
4 stable, and diverse workforce able to meet the needs of new
5 and growing business enterprises, the Department shall
6 promote better labor-management-community and government
7 operations by providing labor-management relations and
8 provide assistance in the development of local
9 labor-management-community labor-management committees and
10 coalitions established to address employment issues facing
11 families and by helping Illinois current and prospective
12 employers attract and retain a diverse and productive
13 workforce through the promotion and support of dependent care
14 policies and programs in the workplace and community.
15 In the Department there shall be a
16 Labor-Management-Community Labor-Management Cooperation
17 Committee composed of 18 12 public members appointed by the
18 Governor with the advice and consent of the Senate. Six
19 members shall represent executive level management of
20 businesses, that employ labor union members and 6 members
21 shall represent major labor union leadership, and 6 members
22 shall represent community leadership. The Governor shall
23 designate 1 business representative and 1 labor
24 representative as cochairmen. Appointed members shall not be
25 represented at a meeting by another person. There shall be 9
26 ex officio 6 ex officio nonvoting members: the Director of
27 the Department, who shall serve as Secretary, the Director of
28 the Department of Labor, the Secretary of Human Services, the
29 Director of Public Health, the Director of Employment
30 Security, the President of the Senate, the Minority Leader of
31 the Senate, the Speaker of the House of Representatives and
32 the Minority Leader of the House of Representatives. Each ex
33 officio member shall serve during the term of his or her
34 office. Ex officio members may be represented by duly
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1 authorized substitutes.
2 In making the initial public member appointments to the
3 Committee, 3 of the business representatives and 3 of the
4 labor union representatives shall be appointed for terms
5 expiring July 1, 1987. The remaining public members shall be
6 appointed for terms expiring July 1, 1988. The public
7 members appointed under this amendatory Act of the 91st
8 General Assembly shall be divided into 2 groups with the
9 first group having terms that expire on July 1, 2002 and the
10 second group having terms that expire on July 1, 2003.
11 Thereafter, public members of the Committee shall be
12 appointed for terms of 2 years expiring on July 1, or until
13 their successors are appointed and qualified. The Governor
14 may at any time, with the advice and consent of the Senate,
15 make appointments to fill vacancies for the balance of an
16 unexpired term. Public members shall serve without
17 compensation, but shall be reimbursed by the Department for
18 necessary expenses incurred in the performance of their
19 duties. The Department shall provide staff assistance to the
20 Committee.
21 The Committee shall have the following duties:
22 (1) to improve communications between labor, and
23 management, and communities on significant economic
24 problems facing the State especially with respect to
25 identifying new ways to attract and retain employees and
26 provide an environment in which employees can do their
27 best work;
28 (2) to encourage and support the development of
29 local labor, management, and community labor-management
30 committees at the plant, industry and area levels across
31 the State and encourage and support the development of
32 local coalitions to support the implementation of
33 family-friendly policies in the workplace;
34 (3) to assess the progress of area
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1 labor-management-community labor-management committees
2 and local coalitions that have been formed across the
3 State and provide input to the Governor and General
4 Assembly Director of the Department concerning matching
5 grants to area labor-management committees or other grant
6 programs established in this Act;
7 (4) to convene a Statewide conference on
8 labor-management-community labor-management concerns at
9 least once every 2 years and to convene a series of
10 regional work, family, and community planning conferences
11 throughout the State for employers, unions, and community
12 leaders to form local coalitions to share information,
13 pool resources, and address work and family concerns in
14 their own communities;
15 (5) to issue a report on labor-management-community
16 and employment-related family labor-management concerns
17 to the Governor and the General Assembly every 2 years
18 commencing in March of 1987. This report shall outline
19 the accomplishments of the Committee and specific
20 recommendations for improving Statewide
21 labor-management-community labor-management relations and
22 supporting the adoption of family-friendly work practices
23 throughout the State;.
24 (6) to advise the Department on dependent care and
25 other employment-related family initiatives; and
26 (7) to advise the Department on other initiatives
27 to foster maintenance and development of productive,
28 stable, and diverse workforces to supplement and advance
29 community and State investment-based economic development
30 programs.
31 (b) The Director, with the advice of the
32 Labor-Management-Community Labor-Management Cooperation
33 Committee, shall have the authority to provide grants to
34 employee coalitions or other coalitions that enhance or
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1 promote work and family programs and address specific
2 community concerns, and to provide matching grants, grants
3 and other resources to establish or assist area
4 labor-management-community labor-management committees and
5 other projects which serve to enhance
6 labor-management-community labor-management relations. The
7 Department shall have the authority, with the advice of the
8 Labor-Management-Community Labor-Management Cooperation
9 Committee, to award grants or matching grants in the
10 following four areas:
11 (1) To provide At least 60 percent of the annual
12 appropriation to the Department, for providing
13 labor-management grants and resources shall be awarded as
14 labor-management committees.
16 To be eligible for matching grants pursuant to this
17 subsection, local labor-management-community
18 labor-management committees shall:
19 (i) Be a formal, not-for-profit organization
20 structured for continuing service with voluntary
21 membership;
22 (ii) Be composed of labor, and management, and
23 community representatives;
24 (iii) Service a distinct and identifiable
25 geographic region;
26 (iv) Be staffed by a professional chief
27 executive officer;
28 (v) Have been established with the Department
29 for at least 2 two years;
30 (vi) Operate in compliance with rules set
31 forth by the Department with the advice of the
32 Labor-Management-Community Labor-Management
33 Cooperation Committee; and
34 (vii) Ensure that its efforts and activities
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1 are coordinated with relevant agencies, including
2 but not limited to the following:
3 Department of Commerce and Community Affairs
4 Illinois Department of Labor
5 Economic development agencies
6 Corridor councils
7 Planning agencies
8 Colleges, universities and community colleges
9 U.S. Department of Labor
10 Statewide Job Training Partnership Act entities
11 or any successor federal workforce training and
12 development legislation.
13 Further, the purpose of the local
14 labor-management-community labor-management committees
15 will include, but not be limited to:
16 (i) Enhancing the positive
17 labor-management-community labor-management
18 relationship within the State, region, community
19 and/or work place;
20 (ii) Assisting in the retention, expansion and
21 attraction of businesses and jobs within the State
22 through special training programs, gathering and
23 dissemination of information and providing
24 assistance in local economic development efforts as
25 appropriate;
26 (iii) Creating and maintaining a regular
27 nonadversarial forum for ongoing dialogue between
28 labor, and management, and community representatives
29 to discuss and resolve issues of mutual concern
30 outside the realm of the traditional collective
31 bargaining process;
32 (iv) Acting as an intermediary for initiating
33 local programs between unions and employers which
34 would generally improve economic conditions in a
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1 region;
2 (v) Encouraging, assisting and facilitating
3 the development of work-site and industry
4 labor-management-community labor-management
5 committees in the region.
6 Any local labor-management-community
7 labor-management committee meeting these criteria may
8 apply to the Department for annual matching grants,
9 provided providing that the local committee contributes
10 at least 25 percent in matching funds, of which no more
11 than 50 percent shall be "in-kind" services. Funds
12 received by a local committee pursuant to this subsection
13 shall be used for the ordinary operating expenses of the
14 local committee.
15 (2) To provide Up to 20 percent of the annual
16 appropriation to the Department for providing
17 labor-management grants and resources may be awarded as
18 matching grants to local labor-management-community
19 labor-management committees which do not meet all of the
20 eligibility criteria set forth in subsection (1).
21 However, to be eligible to apply for a grant under this
22 subsection, the local labor-management-community
23 labor-management committee, at a minimum, shall:
24 (i) Be composed of labor, and management, and
25 community representatives;
26 (ii) Service a distinct and identifiable
27 geographic region;
28 (iii) Operate in compliance with the rules set
29 forth by the Department with the advice of the
30 Labor-Management-Community Labor-Management
31 Cooperation Committee;
32 (iv) Ensure that its efforts and activities
33 are directed toward enhancing the
34 labor-management-community labor-management
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1 relationship within the State, region, community
2 and/or work place.
3 Any local labor-management-community
4 labor-management committee meeting these criteria may
5 apply to the Department for an annual matching grant,
6 provided providing that the local committee contributes
7 at least 25 percent in matching funds of which no more
8 than 50 percent shall be "in-kind" services. Funds
9 received by a local committee pursuant to paragraph (2)
10 of subsection (b) of this Section shall be used for the
11 ordinary and operating expenses of the local committee.
12 Eligible committees shall be limited to three years of
13 funding under this subsection. With respect to those
14 committees participating in this program prior to
15 enactment of this amendatory Act of 1988 which fail to
16 qualify under paragraph (1) of subsection (b) of this
17 Section, previous years' funding shall be counted in
18 determining whether those committees have reached their
19 funding limit under this paragraph (2).
20 (3) To provide Up to 10 percent of the annual
21 appropriation to the Department for providing
22 labor-management grants and resources may be awarded as
23 grants to develop and conduct specialized education and
24 training programs of direct benefit to representatives of
25 labor, management, labor-management-community
26 labor-management committees and/or their staff. The type
27 of education and training programs to be developed and
28 offered will be determined and prioritized annually by
29 the Department, with the advice of the
30 Labor-Management-Community Labor-Management Cooperation
31 Committee. The Department will develop and issue an
32 annual request for proposals proposal detailing the
33 program specifications.
34 (4) To provide Up to 10 percent of the annual
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1 appropriation to the Department for providing
2 labor-management grants and resources may be awarded as
3 grants for research and development projects related to
4 labor-management-community or employment-related family
5 labor-management issues. The Department, with the advice
6 of the Labor-Management-Community Labor-Management
7 Cooperation Committee, will develop and prioritize
8 annually the type and scope of the research and
9 development projects deemed necessary.
10 (5) To provide grants of up to a maximum of $5,000
11 to support the planning of regional work, family, and
12 community planning conferences that will be based on
13 specific community concerns.
14 (6) To provide grants to initiate or support
15 recently created employer-led coalitions to establish
16 pilot projects that promote the understanding of the work
17 and family issues and support local workforce dependent
18 care services.
19 The Department is authorized to establish
20 applications, application procedures and promulgate any
21 rules deemed necessary in the administration of such
22 grants.
23 (c) To administer the grant programs created by this
24 Act, the Department shall establish an Office of Work and
25 Family Issues Labor-Management Cooperation. The purpose of
26 this office shall include, but not be limited to:
27 (1) To administer the grant programs, including
28 developing grant applications and requests for proposals
29 proposal, program monitoring and evaluation.
30 (2) To serve as State liaison with other state,
31 regional and national organizations devoted to promoting
32 labor-management-community labor-management cooperation
33 and employment-related family issues; disseminating
34 pertinent information secured through these state,
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1 regional and national affiliations to local
2 labor-management-community labor-management committees,
3 the Labor-Management-Community Labor-Management
4 Cooperation Committee, employer coalitions, Illinois
5 Employment and Training Centers, and other interested
6 parties throughout the State.
7 (3) To provide technical assistance to area,
8 industry or work-site labor-management-community
9 labor-management committees as requested.
10 (4) To serve as a clearinghouse for information
11 related to labor-management-community labor-management
12 cooperation.
13 (5) To serve as a catalyst to developing and
14 strengthening a partnership among local, state, regional
15 and national organizations and agencies devoted to
16 enhancing labor-management-community labor-management
17 cooperation and employment-related family issues.
18 (6) To provide any other programs or services which
19 enhance labor-management-community labor-management
20 cooperation or that may promote the adoption of
21 family-friendly workplace practices at companies located
22 within the State of Illinois as determined by the
23 Director with the advice of the
24 Labor-Management-Community Labor-Management Cooperation
25 Committee.
26 (7) To establish an Illinois Work and Family
27 Clearinghouse to disseminate best-practice work and
28 family policies and practices throughout the State,
29 including through the Illinois Employment and Training
30 Centers; to provide and develop a computerized database
31 listing dependent care information and referral services;
32 to help employers by providing information about options
33 for dependent care assistance, to conduct and compile
34 research on elder care, child care, and other
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1 employment-related family issues in Illinois; and to
2 compile and disseminate any other information or services
3 that support the adoption of family-friendly workplace
4 practices at companies located in the State.
5 (Source: P.A. 88-456; revised 10-31-98.)
6 ARTICLE 15.
7 Section 15-1. Short Title. This Article may be cited as
8 the Illinois Business Regulatory Review Act.
9 Section 15-5. Purpose. The General Assembly finds that
10 small businesses and their growth are critical to the
11 economic health of the State. Small business, more so than
12 larger firms, often need assistance to negotiate through
13 complex government forms, rules, and regulations. The
14 current overall business climate of the State would be made
15 more attractive and competitive and would otherwise benefit
16 from reductions in unnecessarily burdensome rules and
17 regulations. A formal method to generate private sector
18 analysis, input, and guidance on methods of regulatory review
19 for the Governor and executive agencies, the constitutional
20 offices, and the General Assembly is needed for this purpose.
21 Section 15-10. Illinois Economic Development Board
22 responsibilities. In addition to its duties under the Civil
23 Administrative Code of Illinois and the Illinois Economic
24 Development Board Act, the Illinois Economic Development
25 Board shall form a Business Regulatory Committee to generate
26 private sector analysis, input, and guidance on methods of
27 regulatory assistance and review.
28 Section 15-15. Economic Development Board Regulatory
29 Committee membership. Membership, composition, bylaws, and
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1 methods of operation of the Committee shall be determined by
2 the Board. At the determination of the Board, individual
3 small business owners and operators; national, State, and
4 regional organizations representative of small firms; and
5 representatives of existing State or regional councils of
6 business may be designated as members of this Business
7 Regulatory Committee.
8 Section 15-20. Regulatory policy responsibilities of the
9 Committee. In addition to those duties and responsibilities
10 as directed by the Board, the Committee shall analyze,
11 determine, and report to the Board, so that the Board may
12 report to the Governor and executive agencies under the
13 control of the Governor, the constitutional offices, and the
14 General Assembly, overall methods of achieving greater small
15 business impact of the regulatory process the following
16 information:
17 (1) Identify specific ways in which existing
18 regulations and regulatory programs can be made more
19 responsive and responsible to small business.
20 (2) Identify more effective ways of eliciting
21 participation from the private sector in efforts to
22 simplify and clarify regulations so that they are not
23 overly complex or burdensome.
24 (3) Provide suggestions for involving small
25 business owners and their representatives in the
26 rulemaking process in a more meaningful way.
27 (4) Provide constructive suggestions for reducing
28 forms and paperwork particularly where they are
29 duplicative, overly complicated, or otherwise burdensome
30 for small business.
31 (5) Determine effective ways to communicate with
32 small business owners and to assist them in their
33 understanding and implementation of complex regulations.
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1 (6) Recommend non-punitive methods of ensuring
2 compliance with regulatory objectives or requirements
3 including pre-inspection programs, advisory services,
4 education and training, and industry self-regulation.
5 Section 15-25. Regulatory review responsibilities of the
6 Business Regulatory Review Committee. At the direction and
7 request of the Board, the Committee shall review and analyze
8 regulations and make specific recommendations, from the
9 perspective of cost and benefit, reasonableness and common
10 sense, and permissiveness of community economic growth and
11 development, on the following:
12 (1) Selected regulatory topics to provide guidance
13 to State agencies regarding the formulation of and
14 revision to specific rules and regulations.
15 (2) Existing and proposed rules and regulations for
16 the purpose of determining whether the rule is
17 excessively burdensome or imposes undue hardship on those
18 subject to the regulation.
19 (3) Whether the public benefit derived from a rule
20 or a proposed rule exceeds the increased public and
21 private cost of complying with the rule being imposed.
22 (4) Less restrictive, less costly, or less
23 burdensome means to achieve the same result.
24 Section 15-30. Advisory responsibilities of the Business
25 Regulatory Review Committee. At the direction and request of
26 the Board, the Committee shall provide the following advisory
27 assistance:
28 (1) To advise the Office of the Governor regarding
29 agency rulemaking and to offer recommendations that
30 improve the State rulemaking process, which may include
31 alternative standards that might be set for enforcement
32 by regulatory agencies.
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1 (2) To advise the General Assembly about whether
2 the State should adopt small business regulatory
3 enforcement fairness legislation modeled after the
4 equivalent federal legislation and regarding how Illinois
5 laws compare with those of other states and how Illinois
6 might implement reforms adopting the better or best
7 practices of these other states.
8 (3) To advise the Department of Commerce and
9 Community Affairs with the operations of the First Stop,
10 small business regulatory review, and similar department
11 programs.
12 (4) To advise relevant State agencies on the
13 formulation of federally required State rules.
14 Section 15-35. Support for Committee. The Committee
15 shall be provided staff support services by the Department of
16 Commerce and Community Affairs, the Office of the Governor,
17 and various regulatory agencies. Members of the Committee
18 shall serve without compensation, but may be reimbursed for
19 expenses.
20 Section 15-105. The Civil Administrative Code of
21 Illinois is amended by changing 46.19a as follows:
22 (20 ILCS 605/46.19a) (from Ch. 127, par. 46.19a)
23 Sec. 46.19a. Employment and technology grants.
24 (1) Grants to provide training in fields affected by
25 critical demands for certain skills may be made as provided
26 in this subsection.
27 (a) The Director of the Department may make grants
28 to eligible employers or to other eligible entities on
29 behalf of employers as authorized in paragraph (b) to
30 provide training for employees in fields for which there
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1 are critical demands for certain skills.
2 (b) The Director may accept applications for
3 training grant funds and grant requests from: (i)
4 entities sponsoring multi-company eligible employee
5 training projects as defined in paragraph (c), including
6 business associations, strategic business partnerships,
7 institutions of secondary or higher education, large
8 manufacturers for supplier network companies, federal Job
9 Training Partnership Act administrative entities or grant
10 recipients, and labor organizations when those projects
11 will address common training needs identified by
12 participating companies; and (ii) individual employers
13 that are undertaking eligible employee training projects
14 as defined in paragraph (c), including intermediaries and
15 training agents.
16 (c) The Director may make grants to eligible
17 applicants as defined in paragraph (b) for employee
18 training projects that include, but need not be limited
19 to, one or more of the following:
20 (i) training programs in response to new or
21 changing technology being introduced in the
22 workplace;
23 (ii) job-linked training that offers special
24 skills for career advancement or that is preparatory
25 for, and leads directly to, jobs with definite
26 career potential and long-term job security;
27 (iii) training necessary to implement total
28 quality management or improvement or both management
29 and improvement systems within the workplace;
30 (iv) training related to new machinery or
31 equipment;
32 (v) training of employees of companies that
33 are expanding into new markets or expanding exports
34 from Illinois;
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1 (vi) basic, remedial, or both basic and
2 remedial training of employees as a prerequisite for
3 other vocational or technical skills training or as
4 a condition for sustained employment;
5 (vii) self-employment training of the
6 unemployed and underemployed with comprehensive,
7 competency-based instructional programs and services
8 , entrepreneurial education and training initiatives
9 for youth and adult learners in cooperation with the
10 Illinois Institute for Entrepreneurial Education,
11 training and education, conferences, workships, and
12 best practice information for local program
13 operators of entrepreneurial education and
14 self-employment training programs; and
15 (viii) other training activities, projects, or
16 both training activities and projects related to the
17 support, development, or evaluation of job training
18 programs, activities, and delivery systems,
19 including training needs assessment and design.
20 (d) Grants shall be made on the terms and
21 conditions that the Department shall determine, provided,
22 however, that no grant made under the provisions of
23 paragraph (c) of this subsection shall exceed 50% of the
24 direct costs of all approved training programs provided
25 by the employer or the employer's training agent or other
26 entity as defined in paragraph (b). Under this Section,
27 allowable costs include, but are not limited to:
28 (i) administrative costs of tracking,
29 documenting, reporting, and processing training
30 funds or project costs;
31 (ii) curriculum development;
32 (iii) wages and fringe benefits of employees;
33 (iv) training materials, including scrap
34 product costs;
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1 (v) trainee travel expenses;
2 (vi) instructor costs, including wages, fringe
3 benefits, tuition, and travel expenses;
4 (vii) rent, purchase, or lease of training
5 equipment; and
6 (viii) other usual and customary training
7 costs.
8 (e) The Director will ensure that a minimum of one
9 on-site grant monitoring visit is conducted by the
10 Department either during the course of the grant period
11 or within 6 months following the end of the grant period.
12 The Department shall verify that the grantee's financial
13 management system is structured to provide for accurate,
14 current, and complete disclosure of the financial results
15 of the grant program in accordance with all provisions,
16 terms, and conditions contained in the grant contract.
17 (f) The Director may establish and collect a
18 schedule of charges from subgrantee entities and other
19 system users under federal job-training programs for
20 participating in and utilizing the department's automated
21 job-training program information systems where such
22 systems and the necessary participation and utilization
23 is a requirement of the federal job-training programs.
24 All monies collected pursuant to this paragraph shall be
25 deposited into the Federal Job-Training Information
26 Systems Revolving Fund created in subsection (5).
27 (2) The Department is authorized to establish a program
28 of grants to universities, community colleges, research
29 institutions, research consortiums, other not-for-profit
30 entities, and Illinois businesses for the purpose of
31 fostering research and development in the high technology and
32 the service sector leading to the development of new products
33 and services that can be marketed by Illinois businesses. All
34 grant awards shall include a contract which may provide for
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1 payment of negotiated royalties to the Department if the
2 product or service to be developed by the grantee is
3 subsequently licensed for production.
4 (a) Grants may be awarded to universities and
5 research institutions to assist them in making their
6 faculties and facilities available to Illinois
7 businesses. Such grants may be used by a university or
8 research institution for, including but not limited to
9 the following purposes: (i) to establish or enhance
10 computerized cataloging of all research labs and
11 university staff and make such catalogues available to
12 Illinois businesses; (ii) to market products developed by
13 the university to Illinois businesses; (iii) to review
14 publications in order to identify, catalog, and inform
15 Illinois businesses of new practices in areas such as
16 robotics, biotechnology; (iv) to build an on-line,
17 information and technology system that relies on other
18 computerized networks in the United States; (v) to assist
19 in securing temporary replacement for faculty who are
20 granted a leave of absence from their teaching duties for
21 the purpose of working full-time for an Illinois business
22 to assist that business with technology transfer.
23 (b) Grants may be awarded to universities and
24 research institutions, research consortiums and other
25 not-for-profit entities for the purpose of identifying
26 and supporting Illinois businesses engaged in high
27 technology and service sector enterprises. Such Illinois
28 businesses identified and funded shall include recipients
29 of Small Business Innovation Research Program funds under
30 subsections (e) through (k) of Section 9 of the Small
31 Business Act. (Title 15 United States Codes, subsections
32 638(e)-638(k)). Entities receiving grants under this
33 paragraph (b) shall be known as commercialization centers
34 and shall engage in one or more of the following
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1 activities:
2 (i) directing research assistance for new
3 venture creations;
4 (ii) general feasibility studies of new
5 venture ideas;
6 (iii) furthering the technical and
7 intellectual skills of the managers and owners of
8 Illinois small businesses;
9 (iv) commercialization of technology and
10 research;
11 (v) development of prototypes and testing new
12 products;
13 (vi) identify and assist in securing
14 financing;
15 (vii) marketing assistance; and
16 (viii) assisting Illinois inventors in finding
17 Illinois manufacturers to produce and market their
18 inventions.
19 A commercialization center may charge a nominal fee
20 or accept royalty agreements for conducting feasibility
21 studies and other services.
22 (c) Grants may be awarded by the Department to
23 Illinois businesses to fund research and consultation
24 arrangements between businesses and universities,
25 community colleges, research institutions, research
26 consortiums and other not-for-profit entities within this
27 State.
28 The Department shall give priority to Illinois small
29 businesses in awarding grants. Each grant awarded under
30 this paragraph (c) shall provide funding for up to 50% of
31 the cost of the research or consultation arrangements,
32 not to exceed $100,000; provided that the grant recipient
33 utilizes Illinois not for profit research and academic
34 institutions to perform the research and development
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1 function for which grant funds were requested.
2 (d) Grants may be awarded to research consortium
3 and other qualified applicants, in conjunction with
4 private sector or federal funding, for other creative
5 systems that bridge university resources and business,
6 technological, production and development concerns.
7 (e) For the purposes of subsection (2), (i)
8 "Illinois business" means a "small business concern" as
9 defined in Title 15 United States Code, Section 632,
10 which primarily conducts its business in Illinois; (ii)
11 "high technology" means any area of research or
12 development designed to foster greater knowledge or
13 understanding in fields such as computer science,
14 electronics, physics, chemistry or biology for the
15 purpose of producing designing, developing or improving
16 prototypes and new processes; (iii) "private sector"
17 shall have the meaning ascribed to it in Title 29 United
18 States Code, Section 1503; (iv) "University" means either
19 a degree granting institution located in Illinois as
20 defined in Section 2 of the Academic Degree Act, or a
21 State-supported institution of higher learning
22 administered by the Board of Trustees of the University
23 of Illinois, the Board of Trustees of Southern Illinois
24 University, the Board of Trustees of Chicago State
25 University, the Board of Trustees of Eastern Illinois
26 University, the Board of Trustees of Governors State
27 University, the Board of Trustees of Illinois State
28 University, the Board of Trustees of Northeastern
29 Illinois University, the Board of Trustees of Northern
30 Illinois University, the Board of Trustees of Western
31 Illinois University, or the Illinois Community College
32 Board; (v) "venture" means any Illinois business engaged
33 in research and development to create new products or
34 services with high growth potential; (vi) Illinois
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1 research institutions refers to not-for-profit entities,
2 which include federally-funded research laboratories,
3 that conduct research and development activities for the
4 purpose of producing, designing, developing, or improving
5 prototypes and new processes; and (vii) other
6 not-for-profit entities means non-profit organizations
7 based in Illinois that are primarily devoted to new
8 enterprise or product development.
9 (f) The Department may establish a program of grant
10 assistance on a matching basis to universities, community
11 colleges, small business development centers, community
12 action agencies and other not-for-profit economic
13 development agencies to encourage new enterprise
14 development and new business formation and to encourage
15 enterprises in this State. The Department may provide
16 grants, which shall be exempt from the provisions of
17 subsection (3) of this Section, to universities,
18 community colleges, small business development centers,
19 community action agencies and other not-for-profit
20 economic development entities for the purpose of making
21 loans to small businesses. All grant applications shall
22 contain information as required by the Department,
23 including the following: a program operation plan; a
24 certification and assurance that the small business
25 applicants have received business development training or
26 education, have a business and finance plan and have
27 experience in the proposed business area; and a
28 description of the support services which the grant
29 recipient will provide to the small business. No more
30 than 10% of the grant may be used by the grant recipient
31 for administrative costs associated with the grant.
32 Grant recipients may use grant funds under this program
33 to make loans on terms and conditions favorable to the
34 small business and shall give priority to those
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1 businesses located in high poverty areas, enterprise
2 zones, or both.
3 (3) There is created within the Department, a Technology
4 Innovation and Commercialization Grants-in-Aid Council which
5 shall consist of 2 representatives of the Department of
6 Commerce and Community Affairs appointed by the Department;
7 one representative of the Illinois Board of Higher Education,
8 appointed by the Board; one representative of science or
9 engineering appointed by the Governor; two representatives of
10 business, appointed by the Governor; one representative of
11 small business, appointed by the Governor; one representative
12 of the Department of Agriculture, appointed by the Director
13 of Agriculture; and one representative of agribusiness,
14 appointed by the Director of Agriculture. The Director of
15 Commerce and Community Affairs shall appoint one of the
16 Department's representatives to serve as chairman of the
17 Council. The Council members shall receive no compensation
18 for their services but shall be reimbursed for their expenses
19 actually incurred by them in the performance of their duties
20 under this subsection. The Department shall provide staff
21 services to the Council. The Council shall provide for review
22 and evaluation of all applications received by the Department
23 under subsection (2) of this Section and make recommendations
24 on those projects to be funded. The Council shall also assist
25 the Department in monitoring the projects and in evaluating
26 the impact of the program on technological innovation and
27 business development within the State.
28 (4) There is hereby created a special fund in the State
29 Treasury to be known as the Technology Innovation and
30 Commercialization Fund. The moneys in such Fund may be used,
31 subject to appropriation, only for making grants pursuant to
32 subsection (2) of this Section and for the purposes of the
33 Technology Advancement and Development Act. All royalties
34 received by the Department shall be deposited in such Fund.
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1 (5) There is hereby created a special fund in the State
2 treasury to be known as the Federal Job-Training Information
3 Systems Revolving Fund. The deposit of monies into this fund
4 shall be limited to the collection of charges pursuant to
5 paragraph (f) of subsection (1) of this Section. The monies
6 in the fund may only be used, subject to appropriation by the
7 General Assembly for the purpose of financing the maintenance
8 and operation of the automated Federal Job-Training
9 Information Systems pursuant to paragraph (f) of subsection
10 (1) of this Section.
11 (6) When the Department is involved in developing a
12 federal or State funded training or retraining program for
13 any employer, the Department will assist and encourage that
14 employer in making every effort to reemploy individuals
15 previously employed at the facility. Further, the Department
16 will provide a list of said employees to said employer for
17 consideration for reemployment and will report the results of
18 this effort to the Illinois Job Training Coordinating
19 Council. This requirement shall be in effect when the
20 following conditions are met:
21 (a) the employer is reopening, or is proposing to
22 reopen, a facility which was last closed during the
23 preceding 2 years,
24 (b) a substantial number of the persons who were
25 employed at the facility before its most recent closure
26 remain unemployed, and
27 (c) the product or service produced by, or proposed
28 to be produced by, the employer at the facility is
29 substantially similar to the product or service produced
30 at the facility before its most recent closure.
31 (7) The Department, in cooperation with the Departments
32 of Human Services and Employment Security, may establish a
33 program to encourage community action agencies to establish
34 programs that will help unemployed and underemployed single
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1 parents to identify, access, and develop, through such means
2 as counseling or mentoring, internal and external resources
3 that will enable those single parents to become emotionally
4 and financially self-sufficient. The intended primary
5 beneficiaries of the local programs shall be female heads of
6 households who are at least 22 but less than 46 years of age
7 and who are physically able to work but are unemployed or
8 underemployed. The Department may make grants, subject to
9 the availability of funding, to communities and local
10 agencies for the purpose of establishing local programs as
11 described in this subsection (7). A grant under this
12 subsection (7) shall be made for a period of one year and may
13 be renewed if the Department determines that the program is
14 successful in meeting its objectives. If the Department
15 determines that implementation of a program has resulted in a
16 savings of State moneys that otherwise would have been paid
17 to beneficiaries of the program, the Department, on renewing
18 a grant, may adjust the grant amount for those demonstrated
19 savings. For purposes of this subsection, a person is
20 underemployed if his or her income from employment is less
21 than 185% of the federal official poverty income guideline.
22 (Source: P.A. 89-4, eff. 1-1-96; 89-507, eff. 7-1-97; 90-454,
23 eff. 8-16-97.)
24 Section 15-110. The Women's Business Ownership Act is
25 amended by changing Section 20 as follows:
26 (20 ILCS 705/20)
27 (Section scheduled to be repealed on September 1, 1999)
28 Sec. 20. Repeal. This Act is repealed September 1, 2004
29 1999.
30 (Source: P.A. 88-597, eff. 8-28-94.)
31 Section 15-115. The Illinois Economic Development Board
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1 Act is amended by changing Section 3 and adding Section 4.5
2 as follows:
3 (20 ILCS 3965/3) (from Ch. 127, par. 3953)
4 Sec. 3. The board shall be composed of citizens from
5 both the private and public sectors who are actively engaged
6 in organizations and businesses that support economic
7 expansion, industry enhancement and job creation. The board
8 shall be composed of the following persons:
9 (a) the Governor or his or her designee;
10 (b) four for members of the General Assembly, one
11 each appointed by the President of the Senate, the
12 Speaker of the House of Representatives, and the minority
13 leaders of the Senate and House of Representatives;
14 (c) 20 members appointed by the Governor including
15 representatives of small business, minority owned
16 companies, women owned companies, manufacturing, economic
17 development professionals, and citizens at large. one
18 representative of a manufacturing company employing more
19 than 1,000 persons;
20 (d) (blank) one representative of a manufacturing
21 company employing fewer than 100 persons;
22 (e) (blank) one representative of a manufacturing
23 company employing between 100 and 1,000 persons;
24 (f) (blank) three representatives from organized
25 labor;
26 (g) (blank) one representative from a major
27 financial institution;
28 (h) (blank) one representative from agriculture;
29 (i) (blank) one representative from education;
30 (j) (blank) one representative from the retail
31 industry;
32 (k) (blank) one representative from the service
33 industry;
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1 (l) (blank); one economic development professional;
2 and
3 (m) (blank) five citizens at large.
4 The director of the Department of Commerce and Community
5 Affairs shall serve as an ex officio member of the board.
6 The Governor shall appoint the members of the board
7 specified in subsections (c) through (m) of this Section,
8 subject to the advice and consent of the Senate, within 30
9 days after the effective date of this Act. The first meeting
10 of the board shall occur within 60 days after the effective
11 date of this Act.
12 The Governor shall appoint a chairperson and a vice
13 chairperson of the board. Members shall serve 2-year terms.
14 The position of a legislative member shall become vacant if
15 the member ceases to be a member of the General Assembly. A
16 vacancy in a board position shall be filled by the original
17 appointing authority.
18 The board shall include representation from each of the
19 State's geographic areas.
20 The board shall meet quarterly or at the call of the
21 chair and shall create subcommittees as needed to deal with
22 specific issues and concerns. Members shall serve without
23 compensation but may be reimbursed for expenses.
24 (Source: P.A. 86-1430.)
25 (20 ILCS 3965/4.5 new)
26 Sec. 4.5. Additional duties. In addition to those
27 duties granted under Section 4, the Illinois Economic
28 Development Board shall:
29 (1) Establish a Business Investment Location
30 Development Committee for the purpose of making
31 recommendations for designated economic development
32 projects. At the request of the Board, the Director of
33 Commerce and Community Affairs or his or her designee;
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1 the Director of the Bureau of the Budget, or his or her
2 designee; the Director of Revenue, or his or her
3 designee; the Director of Employment Security, or his or
4 her designee; and an elected official of the affected
5 locality, such as the chair of the county board or the
6 mayor, may serve as members of the Committee to assist
7 with its analysis and deliberations.
8 (2) Establish a Business Regulatory Review
9 Committee to generate private sector analysis, input, and
10 guidance on methods of regulatory assistance and review.
11 At the determination of the Board, individual small
12 business owners and operators; national, State, and
13 regional organizations representative of small firms; and
14 representatives of existing State or regional councils of
15 business may be designated as members of this Business
16 Regulatory Review Committee.
17 Section 15-120. The Business Enterprise for Minorities,
18 Females, and Persons with Disabilities Act is amended by
19 changing Section 9 as follows:
20 (30 ILCS 575/9) (from Ch. 127, par. 132.609)
21 (Section scheduled to be repealed on September 6, 1999.)
22 Sec. 9. This Act is repealed September 6, 2004 1999.
23 (Source: P.A. 88-597, eff. 8-28-94.)
24 ARTICLE 20
25 Section 20-1. Short Title. This Article may be cited as
26 the State and Regional Development Strategy Act.
27 Section 20-5. Purpose. The General Assembly finds that
28 an essential step to assist the Illinois economy, both on a
29 statewide and on a local level, to respond to increasingly
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1 competitive global conditions and economic trends is to
2 establish a consensus on a long-term economic development
3 strategy that recognizes both the competitive position of the
4 State's regions and needs of commerce and industry. A unique
5 partnership between State and local development groups and
6 between the private and public sectors can set a
7 comprehensive and responsive agenda of community improvement
8 and community economic development.
9 Section 20-10. Strategic Planning. The Department of
10 Commerce and Community Affairs has the following powers:
11 By no later than February 1, 2000, the Department shall
12 prepare an economic development strategy for Illinois for the
13 period beginning on July 1, 2000 and ending on June 30, 2005,
14 and for the 4 years next ensuing. By no later than February
15 1, 2000 and annually thereafter, the Department shall make
16 modifications in the economic development strategy for the 4
17 years beginning on the next ensuing July 1 as the
18 modifications are warranted by changes in economic conditions
19 or by other factors, including changes in policy, and shall
20 prepare an economic development strategy for the fifth year
21 beginning after the next ensuing July 1. In preparing the
22 strategy and in making modifications to the strategy, the
23 Department shall take cognizance of the special economic
24 attributes of the various component areas of the State.
25 (1) The "component areas" shall be determined by the
26 Department after a county by county economic analysis and
27 shall group counties that are close in geographical
28 proximity and share common economic traits such as labor
29 market areas.
30 (2) The strategy shall recommend specific
31 legislative, administrative, and programmatic action at
32 both the State and area level for promoting sustained
33 economic growth at or above national rates of economic
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1 growth while keeping the rate of unemployment below
2 national levels of unemployment.
3 (3) The strategy shall include an assessment of
4 historical patterns of economic activity for the State as
5 a whole and by area, and projections of future economic
6 trends for the State as a whole and by area. National
7 economic trends and projections shall be considered in
8 the formulation of the State and area projections. All
9 assumptions made in the formulation of the State and area
10 projections shall be clearly and explicitly set forth in
11 the strategy.
12 (4) The strategy shall identify, for each area,
13 those community economic improvement characteristics that
14 most likely will influence whether the area will exceed
15 or fall below the rate of overall State economic growth.
16 (5) The strategy shall recommend programmatic action
17 to be taken to foster and promote economic growth in
18 specific areas, taking into account the resources and
19 economic factors indigenous to the areas.
20 (A) The strategy shall identify for the State
21 and each region the critical business development
22 approaches being considered or to be considered.
23 The approaches may include, but are not limited to:
24 investment recruitment, such as industry attraction,
25 expansion and retention; trade development efforts
26 including international trade, support for small
27 businesses' efforts to export products and services,
28 tourism attraction and development including
29 cultural tourism; technology development efforts
30 including technology commercialization and
31 manufacturing modernization; and business
32 development efforts, including entrepreneurship and
33 entrepreneurial education, small business management
34 assistance, and business financing.
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1 (B) The strategy shall identify for the State
2 and each region the critical workforce training and
3 development being considered or to be considered.
4 The approaches may include, but are not limited to:
5 customized job training, retraining and skill
6 upgrading, economic adjustment, job creation and
7 addressing labor shortages in areas of high demand;
8 the market for and quality of the local labor force;
9 the quality of the education and workforce
10 infrastructure; and related issues.
11 (C) The strategy shall identify for the State
12 and each region the critical community development
13 approaches being considered or to be considered.
14 The approaches may include, but are not limited to:
15 community growth management such as regional
16 planning and smart growth; area revitalization
17 including brownfields redevelopment and facility
18 reuse; and family self-sufficiency such as through
19 housing conservation and economic opportunity.
20 (D) The strategy shall identify for the State
21 and each region the critical public facilities
22 development approaches being considered or to be
23 considered. The approaches may include, but are not
24 limited to: local public services; the local,
25 regional, and State tax and regulatory climate; the
26 physical infrastructure, including communications
27 and transportation systems; the capacity of area
28 utilities; and the quality of public institutions
29 such as schools.
30 (E) The strategy shall identify for the State
31 and each region the other critical marketplace
32 systems, including: the financial marketplace; the
33 competitive advantages of the area in terms of
34 natural resources, capital resources or technology
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1 resources; and other factors affecting area
2 development.
3 (6) In preparing the strategy or modifications to
4 the strategy, the Department shall work with State
5 agencies, boards, and commissions whose programs and
6 activities significantly affect economic activity in the
7 State including the Illinois Development Finance
8 Authority, the Department of Revenue, the Department of
9 Transportation, the Department of Employment Security,
10 the Department of Agriculture, the Department of Natural
11 Resources, the Environmental Protection Agency, and other
12 agencies, boards, or commissions as appropriate. The
13 Directors of the agencies, boards, and commissions shall
14 provide the assistance to the Department as the Governor
15 deems appropriate.
16 (7) In preparing the strategies for the component
17 areas, the Department shall consult with local and
18 regional economic development organizations, local
19 elected officials, community-based organizations, service
20 delivery providers, and other organizations whose
21 programs and activities significantly affect economic
22 activity in the area.
23 (8) In preparing the economic development strategy,
24 the Department shall take into consideration any
25 decisions or recommendations related to programs,
26 services, and government regulations contained in the
27 strategy that have been rendered as a result of a
28 Statewide Performance Review.
29 (9) The strategy shall be presented to the Governor,
30 the President and Minority Leader of the Senate, the
31 Speaker and Minority Leader of the House of
32 Representatives, the members of the of the Illinois
33 Economic Development Board, and the Chair of the Economic
34 and Fiscal Commission on February 1, 2000 and annually
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1 thereafter.
2 (10) The strategy shall be published and made
3 available to the public in both paper and electronic
4 media.
5 (20 ILCS 605/46.44 rep.)
6 Section 20-105. The Civil Administrative Code of
7 Illinois is amended by repealing Section 46.44.
8 ARTICLE 999.
9 Section 999-1. Effective date. This Act takes effect
10 upon becoming law.".