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91_SB1080enr SB1080 Enrolled LRB9105164EGfg 1 AN ACT in relation to business development. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Civil Administrative Code of Illinois is 5 amended by changing Sections 46.19j and 46.21 and adding 6 Sections 46.75 and 46.76 as follows: 7 (20 ILCS 605/46.19j) 8 Sec. 46.19j. Job Training and Economic Development 9DemonstrationGrant Program. 10 (a) Legislative findings. The General Assembly finds 11 that: 12 (1) despite the large number of unemployed job 13 seekers, many employers are having difficulty matching 14 the skills they require with the skills of workers; a 15 similar problem exists in industries where overall 16 employment may not be expanding but there is an acute 17 need for skilled workers in particular occupations; 18 (2) the State of Illinois should foster local 19 economic development by linking the job training of 20 unemployed disadvantaged citizens with the workforce 21 needs of local business and industry; and 22 (3) employers often need assistance in developing 23 training resources that will provide work opportunities 24 for disadvantaged populations. 25 (b) Definitions. As used in this Section: 26 "Community based provider" means a not-for-profit 27 organization, with local boards of directors, that directly 28 provides job training services. 29 "Disadvantaged persons" has the same meaning as the term 30 is defined in Titles II-A and II-C of the federal Job 31 Training Partnership Act. SB1080 Enrolled -2- LRB9105164EGfg 1 "Training partners" means a community-based provider and 2 one or more employers who have established training and 3 placement linkages. 4 (c) From funds appropriated for that purpose, the 5 Department of Commerce and Community Affairs shall administer 6 a Job Training and Economic DevelopmentDemonstrationGrant 7 Program. The Director shall makenot less than 12 and not8more than 20 demonstration projectgrants to community-based 9 providers. The grants shall be made to support the 10 following: 11 (1) partnerships between community-based providers 12 and employers for the customized training of existing 13 low-skilled, low-wage employees and newly hired 14 disadvantaged persons; and 15 (2) partnerships between community-based providers 16 and employers to develop and operate training programs 17 that link the work force needs of local industry with the 18 job training of disadvantaged persons. 19 (d) For projects created under paragraph (1) of 20 subsection (c): 21 (1) the Department shall give a priority to 22 projects that include an in-kind match by an employer in 23 partnership with a community-based provider and projects 24 that use instructional materials and training instructors 25 directly used in the specific industry sector of the 26 partnership employer; and 27 (2) the partnership employer must be an active 28 participant in the curriculum development, employ under29250 workers,and train primarily disadvantaged 30 populations. 31 (e) For projects created under paragraph (2) of 32 subsection (c): 33 (1) community based organizations shall assess the 34 employment barriers and needs of local residents and work SB1080 Enrolled -3- LRB9105164EGfg 1 in partnership with local economic development 2 organizations to identify the priority workforce needs of 3 the local industry; 4 (2) training partners, that is, community-based 5 organizations and employers, shall work together to 6 design programs with maximum benefits to local 7 disadvantaged persons and local employers; 8 (3) employers must be involved in identifying 9 specific skill-training needs, planning curriculum, 10 assisting in training activities, providing job 11 opportunities, and coordinating job retention for people 12 hired after training through this program and follow-up 13 support; and 14 (4) the community-based organizations shall serve 15 disadvantaged persons, including welfare recipients. 16 (f) The Department shall adopt rules for the grant 17 program and shall create a competitive application procedure 18 for those grants to be awarded beginning in fiscal year 1998. 19 Grants shall be based on a performance based contracting 20 system. Each grant shall be based on the cost of providing 21 the training services and the goals negotiated and made a 22 part of the contract between the Department and the training 23 partners. The goals shall include the number of people to be 24 trained, the number who stay in the program, the number who 25 complete the program, the number who enter employment, their 26 wages, and the number who retain employment. The level of 27 success in achieving employment, wage, and retention goals 28 shall be a primary consideration for determining contract 29 renewals and subsequent funding levels. In setting the 30 goals, due consideration shall be given to the education, 31 work experience, and job readiness of the trainees; their 32 barriers to employment; and the local job market. Periodic 33 payments under the contracts shall be based on the degree to 34 which the relevant negotiated goals have been met during the SB1080 Enrolled -4- LRB9105164EGfg 1 payment period. 2 (Source: P.A. 90-474, eff. 1-1-98; 90-655, eff. 7-30-98; 3 90-758, eff. 8-14-98.) 4 (20 ILCS 605/46.21) (from Ch. 127, par. 46.21) 5 Sec. 46.21. To make and enter into contracts, including 6 but not limited to making grants and loans tothoseunits of 7 local government, private agencies as defined in the Illinois 8 State Auditing Act,andnon-profit corporations, educational 9 institutions, and for-profit businesses as authorized 10specified by the General Assemblypursuant to appropriations 11 by the General Assembly from the Build Illinois Bond Fund, 12andthe Build Illinois Purposes Fund, the Fund for Illinois' 13 Future, the Capital Development Fund, and the General Revenue 14 Fund, and generally to do all such things as, in its 15 judgment, may be necessary, proper and expedient in 16 accomplishing its duties. 17 (Source: P.A. 85-288.) 18 (20 ILCS 605/46.75 new) 19 Sec. 46.75. Federal Workforce Development Fund. 20 (a) The Department may accept gifts, grants, awards, 21 matching contributions, interest income, appropriations, and 22 cost sharings from individuals, businesses, governments, and 23 other third-party sources, on terms that the Director deems 24 advisable, for any or all of the following purposes: 25 (1) to assist recipients, including recipients 26 under the Temporary Assistance to Needy Families (TANF) 27 program, to obtain and retain employment and become 28 economically self-sufficient; 29 (2) to assist economically disadvantaged and other 30 youth to make a successful transition from school to 31 work; and 32 (3) to assist other individuals targeted for SB1080 Enrolled -5- LRB9105164EGfg 1 services through education, training, and workforce 2 development programs to obtain employment-related skills 3 and obtain employment. 4 (b) The Federal Workforce Development Fund is created as 5 a special fund in the State Treasury, and all moneys received 6 under this Section shall be deposited into that Fund. Moneys 7 in the Federal Workforce Development Fund may be expended for 8 purposes consistent with the conditions under which those 9 moneys are received, subject to appropriations made by the 10 General Assembly for those purposes. 11 (20 ILCS 605/46.76 new) 12 Sec. 46.76. Energy Assistance Contribution Fund. 13 (a) The Department may accept gifts, grants, awards, 14 matching contributions, interest income, appropriations, and 15 cost sharings from individuals, businesses, governments, and 16 other third-party sources, on terms that the Director deems 17 advisable, to assist eligible households, businesses, 18 industries, educational institutions, hospitals, health care 19 facilities, and not-for-profit entities to obtain and 20 maintain reliable and efficient energy related services, or 21 to improve the efficiency of such services. 22 (b) The Energy Assistance Contribution Fund is created 23 as a special fund in the State Treasury, and all moneys 24 received under this Section shall be deposited into that 25 Fund. Moneys in the Energy Assistance Contribution Fund may 26 be expended for purposes consistent with the conditions under 27 which those moneys are received, subject to appropriations 28 made by the General Assembly for those purposes. 29 Section 10. The State Finance Act is amended by adding 30 Sections 5.490 and 5.491 as follows: 31 (30 ILCS 105/5.490 new) SB1080 Enrolled -6- LRB9105164EGfg 1 Sec. 5.490. The Federal Workforce Development Fund. 2 (30 ILCS 105/5.491 new) 3 Sec. 5.491. The Energy Assistance Contribution Fund. 4 Section 15. The Build Illinois Act is amended by 5 changing Sections 8-3, 10-3 and 10-4 as follows: 6 (30 ILCS 750/8-3) (from Ch. 127, par. 2708-3) 7 Sec. 8-3. Powers of the Department. The Department has 8 the power to: 9 (a) provide business development public infrastructure 10 loans or grants from appropriations from the Build Illinois 11 Bond Fund, the Build Illinois Purposes Fund, the Fund for 12 Illinois' Future, and the Public Infrastructure Construction 13 Loan Fund to local governments to provide or improve a 14 community's public infrastructure so as to create or retain 15 private sector jobs pursuant to the provisions of this 16 Article; 17 (b) provide affordable financing of public 18 infrastructure loans and grants to, or on behalf of, local 19 governments, local public entities, medical facilities, and 20 public health clinics from appropriations from the Public 21 Infrastructure Construction Loan Fund for the purpose of 22 assisting with the financing, or application and access to 23 financing, of a community's public infrastructure necessary 24 to health, safety, and economic development; 25 (c) enter into agreements, accept funds or grants, and 26 engage in cooperation with agencies of the federal 27 government, or state or local governments to carry out the 28 purposes of this Article, and to use funds appropriated 29 pursuant to this Article to participate in federal 30 infrastructure loan and grant programs upon such terms and 31 conditions as may be established by the federal government; SB1080 Enrolled -7- LRB9105164EGfg 1 (d) establish application, notification, contract, and 2 other procedures, rules, or regulations deemed necessary and 3 appropriate to carry out the provisions of this Article; 4 (e) coordinate assistance under this program with 5 activities of the Illinois Development Finance Authority in 6 order to maximize the effectiveness and efficiency of State 7 development programs; 8 (f) coordinate assistance under the Affordable Financing 9 of Public Infrastructure Loan and Grant Program with the 10 activities of the Illinois Development Finance Authority, 11 Illinois Rural Bond Bank, Illinois Farm Development 12 Authority, Illinois Housing Development Authority, Illinois 13 Environmental Protection Agency, and other federal and State 14 programs and entities providing financing assistance to 15 communities for public health, safety, and economic 16 development infrastructure; 17 (f-5) provide staff, administration, and related support 18 required to manage the programs authorized under this Article 19 and pay for the staffing, administration, and related support 20 from the Public Infrastructure Construction Loan Revolving 21 Fund; 22 (g) exercise such other powers as are necessary or 23 incidental to the foregoing. 24 (Source: P.A. 90-454, eff. 8-16-97.) 25 (30 ILCS 750/10-3) (from Ch. 127, par. 2710-3) 26 Sec. 10-3. Powers and Duties. The Department has the 27 power to: 28 (a) Provide loans from the Build Illinois Bond Fund, the 29 Build Illinois Purposes Fund, the Fund for Illinois' Future, 30 or the Large Business Attraction Fund to a business 31 undertaking a project and accept mortgages or other evidences 32 of indebtedness or security of such business. 33 (b) Provide grants from the Build Illinois Bond Fund, SB1080 Enrolled -8- LRB9105164EGfg 1 the Build Illinois Purposes Fund, the Fund for Illinois' 2 Future, or the Large Business Attraction Fund to or for the 3 direct benefit of a business undertaking a project. Any such 4 grant shall (i) be made and used only for the purpose of 5 assisting the financing of the business for the project in 6 order to reduce the cost of financing to the business, (ii) 7 be made only if a participating lender, or other funding 8 source including the applicant, also provides a portion of 9 the financing with respect to the project, and only if the 10 Department determines, on the basis of all the information 11 available to it, that the project would not be undertaken in 12 Illinois unless the grant is provided, (iii) provide no more 13 than 25% of the total dollar amount of any single project 14 cost and be approved for amounts from the Fund not to exceed 15 $500,000 for any single project, unless waived by the 16 Director upon a finding that such waiver is appropriate to 17 accomplish the purpose of this Article, (iv) be made only 18 after the Department has determined that the grant will cause 19 a project to be undertaken which has the potential to create 20 substantial employment in relation to the amount of the 21 grant, and (v) be made with a business that has certified the 22 project is a new plant start-up or expansion and is not a 23 relocation of an existing business from another site in 24 Illinois unless that relocation results in substantial 25 employment growth. 26 (c) Enter into agreements, accept funds or grants and 27 cooperate with agencies of the federal government, local 28 units of government and local regional economic development 29 corporations or organizations for the purposes of carrying 30 out this Article. 31 (d) Enter into contracts, letters of credit or any other 32 agreements or contracts with financial institutions necessary 33 or desirable to carry out the purposes of this Article. Any 34 such agreement or contract may include, without limitation, SB1080 Enrolled -9- LRB9105164EGfg 1 terms and provisions relating to a specific project such as 2 loan documentation, review and approval procedures, 3 organization and servicing rights, default conditions and 4 other program aspects. 5 (e) Fix, determine, charge and collect any premiums, 6 fees, charges, costs and expenses, including application 7 fees, commitment fees, program fees, financing charges or 8 publication fees in connection with its activities under this 9 Article. 10 (f) Establish application, notification, contract and 11 other procedures, rules or regulations deemed necessary and 12 appropriate. 13 (g) Subject to the provisions of any contract with 14 another person and consent to the modification or 15 restructuring of any loan agreement to which the Department 16 is a party. 17 (h) Take any actions which are necessary or appropriate 18 to protect the State's interest in the event of bankruptcy, 19 default, foreclosure or noncompliance with the terms and 20 conditions of financial assistance or participation provided 21 under this Article, including the power to sell, dispose, 22 lease or rent, upon terms and conditions determined by the 23 Director to be appropriate, real or personal property which 24 the Department may receive as a result thereof. 25 (i) Acquire and accept by gift, grant, purchase or 26 otherwise, but not by condemnation, fee simple title, or such 27 lesser interest as may be desired, in land, and to improve or 28 arrange for the improvement of such land for industrial or 29 commercial site development purposes, and to lease or convey 30 such land, or interest in land, so acquired and so improved, 31 including sale and conveyance subject to a mortgage, for such 32 price, upon such terms and at such time as the Department may 33 determine, provided that prior to exercising its authority 34 under this subsection, the Director shall find that other SB1080 Enrolled -10- LRB9105164EGfg 1 means of financing and developing any such project are not 2 reasonably available and that such action is consistent with 3 the purposes and policies of this Article. 4 (j) Provide grants from the Build Illinois Bond Fund or 5 Build Illinois Purposes Fund to municipalities and counties 6 to demolish abandoned buildings pursuant to Section 11-31-1 7 of the Illinois Municipal Code or Section 5-1080 of the 8 Counties Code, for the purpose of making unimproved land 9 available for purchase by businesses for economic 10 development. Such grants shall be provided only when: (1) the 11 owner of property on which the abandoned building is situated 12 has entered into a contract to sell such property; (2) the 13 Department has determined that the grant will be used to 14 cause a project to be undertaken which will result in the 15 creation of employment; (3) the business which has entered 16 into a contract to purchase the property has certified that 17 it will use the property for a project which is a new plant 18 start-up or expansion or a new venture opportunity and is not 19 a relocation of an existing business from another site within 20 the State unless that relocation results in substantial 21 employment growth. If a municipality or county receives 22 grants under this paragraph, it shall file a notice of lien 23 against the owner or owners of such demolished buildings to 24 recover the costs and expenses incurred in the demolition of 25 such buildings pursuant to Section 11-31-1 of the Illinois 26 Municipal Code or Section 5-1080 of the Counties Code. All 27 such costs and expenses recovered by the county or 28 municipality shall be paid to the Department for deposit in 29 the Build Illinois Purposes Account. Priority shall be given 30 to enterprise zones or those areas with high unemployment 31 whose tax base is adversely impacted by the closing of 32 existing factories. 33 (k) Exercise such other powers as are necessary or 34 incidental to the foregoing. SB1080 Enrolled -11- LRB9105164EGfg 1 (Source: P.A. 88-45.) 2 (30 ILCS 750/10-4) (from Ch. 127, par. 2710-4) 3 Sec. 10-4. Loans. Any loan made under this Article 4 shall: 5 (a) Be made only if a participating lender or other 6 funding source, including the applicant, also provides a 7 portion of the financing with respect to the project and only 8 if the Department determines, on the basis of all the 9 information available to it, that the project would not be 10 undertaken in Illinois unless the loan is provided. The 11 other risk assumption may be in the form of a loan, letter of 12 credit, guarantee, loan participation, bond purchase, direct 13 cash payment, or other form approved by the Department. 14 (b) Finance no more than 25% of the total amount of any 15 single project and be approved for amounts from the Fund not 16 to exceed $2,000,000 for any single project, unless waived by 17 the Director upon a finding that a waiver is appropriate to 18 accomplish the purposes of this Article. 19 (c) Be protected by adequate security satisfactory to 20 the Department to secure payment of the loan agreement. 21 (d) Be in a principal amount and form and contain terms 22 and provisions with respect to property insurance, repairs, 23 alterations, payment of taxes and assessments, delinquency 24 charges, default remedies, additional security, and other 25 matters as the Department shall determine adequate to protect 26 the public interest. 27 (e) Include provisions to call the loan agreement as due 28 and payable if the project is not completed, if the project 29 fails to generate anticipated employment opportunities, or if 30 the business ceases to operate the project. 31 (f) Be made only after the Department has determined 32 that the loan will cause a project to be undertaken that has 33 the potential to create substantial employment in relation to SB1080 Enrolled -12- LRB9105164EGfg 1 the principal amount of the loan. 2 (g) Be made with a business that has certified the 3 project is a new plant start-up or expansion and is not a 4 relocation of an existing business from another site in 5 Illinois unless that relocation results in substantial 6 employment growth. 7 (h) All receipts, including principal and interest 8 payments, royalties, or other payments, paid to the 9 Department because of any loan made under this Article and 10 all proceeds of assets of whatever nature received by the 11 Department as a result of default and delinquency with 12 respect to loans made under this Article, including proceeds 13 from the sale, disposal, lease, or rental of real or personal 14 property that the Department may receive as a result of a 15 default or delinquency, shall be deposited into the Large 16 Business Attraction FundGeneral Revenue Fund. 17 (Source: P.A. 87-14.) 18 Section 99. Effective date. This Act takes effect July 19 1, 1999.