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91_SB1080ccr001
LRB9105164EGfgccr3
1 91ST GENERAL ASSEMBLY
2 CONFERENCE COMMITTEE REPORT
3 ON SENATE BILL 1080
4 -------------------------------------------------------------
5 -------------------------------------------------------------
6 To the President of the Senate and the Speaker of the
7 House of Representatives:
8 We, the conference committee appointed to consider the
9 differences between the houses in relation to House Amendment
10 No. 1 to Senate Bill 1080, recommend the following:
11 (1) that the House recede from House Amendment No. 1;
12 and
13 (2) that Senate Bill 1080 be amended by replacing the
14 title with the following:
15 "AN ACT in relation to business development."; and
16 by replacing everything after the enacting clause with the
17 following:
18 "Section 5. The Civil Administrative Code of Illinois is
19 amended by changing Sections 46.19j and 46.21 and adding
20 Sections 46.75 and 46.76 as follows:
21 (20 ILCS 605/46.19j)
22 Sec. 46.19j. Job Training and Economic Development
23 Demonstration Grant Program.
24 (a) Legislative findings. The General Assembly finds
25 that:
26 (1) despite the large number of unemployed job
27 seekers, many employers are having difficulty matching
28 the skills they require with the skills of workers; a
29 similar problem exists in industries where overall
30 employment may not be expanding but there is an acute
31 need for skilled workers in particular occupations;
32 (2) the State of Illinois should foster local
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1 economic development by linking the job training of
2 unemployed disadvantaged citizens with the workforce
3 needs of local business and industry; and
4 (3) employers often need assistance in developing
5 training resources that will provide work opportunities
6 for disadvantaged populations.
7 (b) Definitions. As used in this Section:
8 "Community based provider" means a not-for-profit
9 organization, with local boards of directors, that directly
10 provides job training services.
11 "Disadvantaged persons" has the same meaning as the term
12 is defined in Titles II-A and II-C of the federal Job
13 Training Partnership Act.
14 "Training partners" means a community-based provider and
15 one or more employers who have established training and
16 placement linkages.
17 (c) From funds appropriated for that purpose, the
18 Department of Commerce and Community Affairs shall administer
19 a Job Training and Economic Development Demonstration Grant
20 Program. The Director shall make not less than 12 and not
21 more than 20 demonstration project grants to community-based
22 providers. The grants shall be made to support the
23 following:
24 (1) partnerships between community-based providers
25 and employers for the customized training of existing
26 low-skilled, low-wage employees and newly hired
27 disadvantaged persons; and
28 (2) partnerships between community-based providers
29 and employers to develop and operate training programs
30 that link the work force needs of local industry with the
31 job training of disadvantaged persons.
32 (d) For projects created under paragraph (1) of
33 subsection (c):
34 (1) the Department shall give a priority to
35 projects that include an in-kind match by an employer in
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1 partnership with a community-based provider and projects
2 that use instructional materials and training instructors
3 directly used in the specific industry sector of the
4 partnership employer; and
5 (2) the partnership employer must be an active
6 participant in the curriculum development, employ under
7 250 workers, and train primarily disadvantaged
8 populations.
9 (e) For projects created under paragraph (2) of
10 subsection (c):
11 (1) community based organizations shall assess the
12 employment barriers and needs of local residents and work
13 in partnership with local economic development
14 organizations to identify the priority workforce needs of
15 the local industry;
16 (2) training partners, that is, community-based
17 organizations and employers, shall work together to
18 design programs with maximum benefits to local
19 disadvantaged persons and local employers;
20 (3) employers must be involved in identifying
21 specific skill-training needs, planning curriculum,
22 assisting in training activities, providing job
23 opportunities, and coordinating job retention for people
24 hired after training through this program and follow-up
25 support; and
26 (4) the community-based organizations shall serve
27 disadvantaged persons, including welfare recipients.
28 (f) The Department shall adopt rules for the grant
29 program and shall create a competitive application procedure
30 for those grants to be awarded beginning in fiscal year 1998.
31 Grants shall be based on a performance based contracting
32 system. Each grant shall be based on the cost of providing
33 the training services and the goals negotiated and made a
34 part of the contract between the Department and the training
35 partners. The goals shall include the number of people to be
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1 trained, the number who stay in the program, the number who
2 complete the program, the number who enter employment, their
3 wages, and the number who retain employment. The level of
4 success in achieving employment, wage, and retention goals
5 shall be a primary consideration for determining contract
6 renewals and subsequent funding levels. In setting the
7 goals, due consideration shall be given to the education,
8 work experience, and job readiness of the trainees; their
9 barriers to employment; and the local job market. Periodic
10 payments under the contracts shall be based on the degree to
11 which the relevant negotiated goals have been met during the
12 payment period.
13 (Source: P.A. 90-474, eff. 1-1-98; 90-655, eff. 7-30-98;
14 90-758, eff. 8-14-98.)
15 (20 ILCS 605/46.21) (from Ch. 127, par. 46.21)
16 Sec. 46.21. To make and enter into contracts, including
17 but not limited to making grants and loans to those units of
18 local government, private agencies as defined in the Illinois
19 State Auditing Act, and non-profit corporations, educational
20 institutions, and for-profit businesses as authorized
21 specified by the General Assembly pursuant to appropriations
22 by the General Assembly from the Build Illinois Bond Fund,
23 and the Build Illinois Purposes Fund, the Fund for Illinois'
24 Future, the Capital Development Fund, and the General Revenue
25 Fund, and generally to do all such things as, in its
26 judgment, may be necessary, proper and expedient in
27 accomplishing its duties.
28 (Source: P.A. 85-288.)
29 (20 ILCS 605/46.75 new)
30 Sec. 46.75. Federal Workforce Development Fund.
31 (a) The Department may accept gifts, grants, awards,
32 matching contributions, interest income, appropriations, and
33 cost sharings from individuals, businesses, governments, and
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1 other third-party sources, on terms that the Director deems
2 advisable, for any or all of the following purposes:
3 (1) to assist recipients, including recipients
4 under the Temporary Assistance to Needy Families (TANF)
5 program, to obtain and retain employment and become
6 economically self-sufficient;
7 (2) to assist economically disadvantaged and other
8 youth to make a successful transition from school to
9 work; and
10 (3) to assist other individuals targeted for
11 services through education, training, and workforce
12 development programs to obtain employment-related skills
13 and obtain employment.
14 (b) The Federal Workforce Development Fund is created as
15 a special fund in the State Treasury, and all moneys received
16 under this Section shall be deposited into that Fund. Moneys
17 in the Federal Workforce Development Fund may be expended for
18 purposes consistent with the conditions under which those
19 moneys are received, subject to appropriations made by the
20 General Assembly for those purposes.
21 (20 ILCS 605/46.76 new)
22 Sec. 46.76. Energy Assistance Contribution Fund.
23 (a) The Department may accept gifts, grants, awards,
24 matching contributions, interest income, appropriations, and
25 cost sharings from individuals, businesses, governments, and
26 other third-party sources, on terms that the Director deems
27 advisable, to assist eligible households, businesses,
28 industries, educational institutions, hospitals, health care
29 facilities, and not-for-profit entities to obtain and
30 maintain reliable and efficient energy related services, or
31 to improve the efficiency of such services.
32 (b) The Energy Assistance Contribution Fund is created
33 as a special fund in the State Treasury, and all moneys
34 received under this Section shall be deposited into that
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1 Fund. Moneys in the Energy Assistance Contribution Fund may
2 be expended for purposes consistent with the conditions under
3 which those moneys are received, subject to appropriations
4 made by the General Assembly for those purposes.
5 Section 10. The State Finance Act is amended by adding
6 Sections 5.490 and 5.491 as follows:
7 (30 ILCS 105/5.490 new)
8 Sec. 5.490. The Federal Workforce Development Fund.
9 (30 ILCS 105/5.491 new)
10 Sec. 5.491. The Energy Assistance Contribution Fund.
11 Section 15. The Build Illinois Act is amended by
12 changing Sections 8-3, 10-3 and 10-4 as follows:
13 (30 ILCS 750/8-3) (from Ch. 127, par. 2708-3)
14 Sec. 8-3. Powers of the Department. The Department has
15 the power to:
16 (a) provide business development public infrastructure
17 loans or grants from appropriations from the Build Illinois
18 Bond Fund, the Build Illinois Purposes Fund, the Fund for
19 Illinois' Future, and the Public Infrastructure Construction
20 Loan Fund to local governments to provide or improve a
21 community's public infrastructure so as to create or retain
22 private sector jobs pursuant to the provisions of this
23 Article;
24 (b) provide affordable financing of public
25 infrastructure loans and grants to, or on behalf of, local
26 governments, local public entities, medical facilities, and
27 public health clinics from appropriations from the Public
28 Infrastructure Construction Loan Fund for the purpose of
29 assisting with the financing, or application and access to
30 financing, of a community's public infrastructure necessary
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1 to health, safety, and economic development;
2 (c) enter into agreements, accept funds or grants, and
3 engage in cooperation with agencies of the federal
4 government, or state or local governments to carry out the
5 purposes of this Article, and to use funds appropriated
6 pursuant to this Article to participate in federal
7 infrastructure loan and grant programs upon such terms and
8 conditions as may be established by the federal government;
9 (d) establish application, notification, contract, and
10 other procedures, rules, or regulations deemed necessary and
11 appropriate to carry out the provisions of this Article;
12 (e) coordinate assistance under this program with
13 activities of the Illinois Development Finance Authority in
14 order to maximize the effectiveness and efficiency of State
15 development programs;
16 (f) coordinate assistance under the Affordable Financing
17 of Public Infrastructure Loan and Grant Program with the
18 activities of the Illinois Development Finance Authority,
19 Illinois Rural Bond Bank, Illinois Farm Development
20 Authority, Illinois Housing Development Authority, Illinois
21 Environmental Protection Agency, and other federal and State
22 programs and entities providing financing assistance to
23 communities for public health, safety, and economic
24 development infrastructure;
25 (f-5) provide staff, administration, and related support
26 required to manage the programs authorized under this Article
27 and pay for the staffing, administration, and related support
28 from the Public Infrastructure Construction Loan Revolving
29 Fund;
30 (g) exercise such other powers as are necessary or
31 incidental to the foregoing.
32 (Source: P.A. 90-454, eff. 8-16-97.)
33 (30 ILCS 750/10-3) (from Ch. 127, par. 2710-3)
34 Sec. 10-3. Powers and Duties. The Department has the
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1 power to:
2 (a) Provide loans from the Build Illinois Bond Fund, the
3 Build Illinois Purposes Fund, the Fund for Illinois' Future,
4 or the Large Business Attraction Fund to a business
5 undertaking a project and accept mortgages or other evidences
6 of indebtedness or security of such business.
7 (b) Provide grants from the Build Illinois Bond Fund,
8 the Build Illinois Purposes Fund, the Fund for Illinois'
9 Future, or the Large Business Attraction Fund to or for the
10 direct benefit of a business undertaking a project. Any such
11 grant shall (i) be made and used only for the purpose of
12 assisting the financing of the business for the project in
13 order to reduce the cost of financing to the business, (ii)
14 be made only if a participating lender, or other funding
15 source including the applicant, also provides a portion of
16 the financing with respect to the project, and only if the
17 Department determines, on the basis of all the information
18 available to it, that the project would not be undertaken in
19 Illinois unless the grant is provided, (iii) provide no more
20 than 25% of the total dollar amount of any single project
21 cost and be approved for amounts from the Fund not to exceed
22 $500,000 for any single project, unless waived by the
23 Director upon a finding that such waiver is appropriate to
24 accomplish the purpose of this Article, (iv) be made only
25 after the Department has determined that the grant will cause
26 a project to be undertaken which has the potential to create
27 substantial employment in relation to the amount of the
28 grant, and (v) be made with a business that has certified the
29 project is a new plant start-up or expansion and is not a
30 relocation of an existing business from another site in
31 Illinois unless that relocation results in substantial
32 employment growth.
33 (c) Enter into agreements, accept funds or grants and
34 cooperate with agencies of the federal government, local
35 units of government and local regional economic development
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1 corporations or organizations for the purposes of carrying
2 out this Article.
3 (d) Enter into contracts, letters of credit or any other
4 agreements or contracts with financial institutions necessary
5 or desirable to carry out the purposes of this Article. Any
6 such agreement or contract may include, without limitation,
7 terms and provisions relating to a specific project such as
8 loan documentation, review and approval procedures,
9 organization and servicing rights, default conditions and
10 other program aspects.
11 (e) Fix, determine, charge and collect any premiums,
12 fees, charges, costs and expenses, including application
13 fees, commitment fees, program fees, financing charges or
14 publication fees in connection with its activities under this
15 Article.
16 (f) Establish application, notification, contract and
17 other procedures, rules or regulations deemed necessary and
18 appropriate.
19 (g) Subject to the provisions of any contract with
20 another person and consent to the modification or
21 restructuring of any loan agreement to which the Department
22 is a party.
23 (h) Take any actions which are necessary or appropriate
24 to protect the State's interest in the event of bankruptcy,
25 default, foreclosure or noncompliance with the terms and
26 conditions of financial assistance or participation provided
27 under this Article, including the power to sell, dispose,
28 lease or rent, upon terms and conditions determined by the
29 Director to be appropriate, real or personal property which
30 the Department may receive as a result thereof.
31 (i) Acquire and accept by gift, grant, purchase or
32 otherwise, but not by condemnation, fee simple title, or such
33 lesser interest as may be desired, in land, and to improve or
34 arrange for the improvement of such land for industrial or
35 commercial site development purposes, and to lease or convey
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1 such land, or interest in land, so acquired and so improved,
2 including sale and conveyance subject to a mortgage, for such
3 price, upon such terms and at such time as the Department may
4 determine, provided that prior to exercising its authority
5 under this subsection, the Director shall find that other
6 means of financing and developing any such project are not
7 reasonably available and that such action is consistent with
8 the purposes and policies of this Article.
9 (j) Provide grants from the Build Illinois Bond Fund or
10 Build Illinois Purposes Fund to municipalities and counties
11 to demolish abandoned buildings pursuant to Section 11-31-1
12 of the Illinois Municipal Code or Section 5-1080 of the
13 Counties Code, for the purpose of making unimproved land
14 available for purchase by businesses for economic
15 development. Such grants shall be provided only when: (1) the
16 owner of property on which the abandoned building is situated
17 has entered into a contract to sell such property; (2) the
18 Department has determined that the grant will be used to
19 cause a project to be undertaken which will result in the
20 creation of employment; (3) the business which has entered
21 into a contract to purchase the property has certified that
22 it will use the property for a project which is a new plant
23 start-up or expansion or a new venture opportunity and is not
24 a relocation of an existing business from another site within
25 the State unless that relocation results in substantial
26 employment growth. If a municipality or county receives
27 grants under this paragraph, it shall file a notice of lien
28 against the owner or owners of such demolished buildings to
29 recover the costs and expenses incurred in the demolition of
30 such buildings pursuant to Section 11-31-1 of the Illinois
31 Municipal Code or Section 5-1080 of the Counties Code. All
32 such costs and expenses recovered by the county or
33 municipality shall be paid to the Department for deposit in
34 the Build Illinois Purposes Account. Priority shall be given
35 to enterprise zones or those areas with high unemployment
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1 whose tax base is adversely impacted by the closing of
2 existing factories.
3 (k) Exercise such other powers as are necessary or
4 incidental to the foregoing.
5 (Source: P.A. 88-45.)
6 (30 ILCS 750/10-4) (from Ch. 127, par. 2710-4)
7 Sec. 10-4. Loans. Any loan made under this Article
8 shall:
9 (a) Be made only if a participating lender or other
10 funding source, including the applicant, also provides a
11 portion of the financing with respect to the project and only
12 if the Department determines, on the basis of all the
13 information available to it, that the project would not be
14 undertaken in Illinois unless the loan is provided. The
15 other risk assumption may be in the form of a loan, letter of
16 credit, guarantee, loan participation, bond purchase, direct
17 cash payment, or other form approved by the Department.
18 (b) Finance no more than 25% of the total amount of any
19 single project and be approved for amounts from the Fund not
20 to exceed $2,000,000 for any single project, unless waived by
21 the Director upon a finding that a waiver is appropriate to
22 accomplish the purposes of this Article.
23 (c) Be protected by adequate security satisfactory to
24 the Department to secure payment of the loan agreement.
25 (d) Be in a principal amount and form and contain terms
26 and provisions with respect to property insurance, repairs,
27 alterations, payment of taxes and assessments, delinquency
28 charges, default remedies, additional security, and other
29 matters as the Department shall determine adequate to protect
30 the public interest.
31 (e) Include provisions to call the loan agreement as due
32 and payable if the project is not completed, if the project
33 fails to generate anticipated employment opportunities, or if
34 the business ceases to operate the project.
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1 (f) Be made only after the Department has determined
2 that the loan will cause a project to be undertaken that has
3 the potential to create substantial employment in relation to
4 the principal amount of the loan.
5 (g) Be made with a business that has certified the
6 project is a new plant start-up or expansion and is not a
7 relocation of an existing business from another site in
8 Illinois unless that relocation results in substantial
9 employment growth.
10 (h) All receipts, including principal and interest
11 payments, royalties, or other payments, paid to the
12 Department because of any loan made under this Article and
13 all proceeds of assets of whatever nature received by the
14 Department as a result of default and delinquency with
15 respect to loans made under this Article, including proceeds
16 from the sale, disposal, lease, or rental of real or personal
17 property that the Department may receive as a result of a
18 default or delinquency, shall be deposited into the Large
19 Business Attraction Fund General Revenue Fund.
20 (Source: P.A. 87-14.)
21 Section 99. Effective date. This Act takes effect July
22 1, 1999.".
23 Submitted on May 27, 1999
24 s/Sen. Steven Rauschenberger Rep. Gary Hannig
25 s/Sen. John Maitland Rep. Jeffrey Schoenberg
26 s/Sen. Laura Kent Donahue Rep. Barbara Flynn Currie
27 Sen. Donne Trotter s/Rep. Art Tenhouse
28 s/Sen. Patrick Welch s/Rep. Tom Ryder
29 Committee for the Senate Committee for the House