Illinois-2019-HB5198-Introduced

101ST GENERAL ASSEMBLY State of Illinois 2019 and 2020 HB5198

Introduced , by Rep. Marcus C. Evans, Jr.

SYNOPSIS AS INTRODUCED:

20 ILCS 605/605-503 new

Amends the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois. Requires the Department of Commerce and Economic Opportunity to establish and support, subject to appropriation, entrepreneurship assistance centers, including the issuance of grants, at career education agencies and not-for-profit corporations. Provides criteria for the selection and designation of centers Provides requirements for the establishment and operation of each center. Provides requirements for grant applicants. Provides reporting requirements. Defines terms.

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FISCAL NOTE ACT MAY APPLY

A BILL FOR

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1 AN ACT concerning State government.

2 Be it enacted by the People of the State of Illinois,

3 represented in the General Assembly:

4 Section 5. The Department of Commerce and Economic

5 Opportunity Law of the Civil Administrative Code of Illinois is

6 amended by adding Section 605-503 as follows:

7 (20 ILCS 605/605-503 new)

8 Sec. 605-503. Entrepreneurship assistance centers.

9 (a) The Department shall establish and support, subject to

10 appropriation, entrepreneurship assistance centers, including

11 the issuance of grants, at career education agencies and

12 not-for-profit corporations including, but not limited to,

13 local development corporations, chambers of commerce,

14 community-based business outreach centers, and other

15 community-based organizations. The purpose of the centers

16 shall be to train minority group members, women, individuals

17 with a disability, dislocated workers, and veterans in the

18 principles and practice of entrepreneurship in order to prepare

19 those persons to pursue self-employment opportunities and to

20 pursue a minority business enterprise or a women-owned business

21 enterprise. The centers shall provide for training in all

22 aspects of business development and small business management

23 as defined by the Department.

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1 (b) The Department shall establish criteria for selection

2 and designation of the centers which shall include, but not be

3 limited to:

4 (1) the level of support for the center from local

5 post-secondary education institutions, businesses, and

6 government;

7 (2) the level of financial assistance provided at the

8 local and federal level to support the operations of the

9 center;

10 (3) the applicant's understanding of program goals and

11 objectives articulated by the Department;

12 (4) the plans of the center to supplement State and

13 local funding through fees for services which may be based

14 on a sliding scale based on ability to pay;

15 (5) the need for and anticipated impact of the center

16 on the community in which it will function;

17 (6) the quality of the proposed work plan and staff of

18 the center; and

19 (7) the extent of economic distress in the area to be

20 served.

21 (c) Each center shall:

22 (1) be operated by a board of directors representing

23 community leaders in business, education, finance and

24 government;

25 (2) be incorporated as a not-for-profit corporation;

26 (3) be located in an area accessible to eligible

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1 clients;

2 (4) establish an advisory group of community business

3 experts, at least one-half of whom shall be representative

4 of the clientele to be served by the center, which shall

5 constitute a support network to provide counseling and

6 mentoring services to minority group members, women,

7 individuals with a disability, dislocated workers, and

8 veterans from the concept stage of development through the

9 first one to 2 years of existence on a regular basis and as

10 needed thereafter; and

11 (5) establish a referral system and linkages to

12 existing area small business assistance programs and

13 financing sources.

14 (d) Each entrepreneurship assistance center shall provide

15 needed services to eligible clients, including, but not limited

16 to: (i) orientation and screening of prospective

17 entrepreneurs; (ii) analysis of business concepts and

18 technical feasibility; (iii) market analysis; (iv) management

19 analysis and counseling; (v) business planning and financial

20 planning assistance; (vi) referrals to financial resources;

21 (vii) referrals to existing educational programs for training

22 in such areas as marketing, accounting, and other training

23 programs as may be necessary and available; and (viii)

24 referrals to business incubator facilities, when appropriate,

25 for the purpose of entering into agreements to access shared

26 support services.

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1 (e) Applications for grants made under this Section shall

2 be made in the manner and on forms prescribed by the

3 Department. The application shall include, but shall not be

4 limited to:

5 (1) a description of the training programs available

6 within the geographic area to be served by the center to

7 which eligible clients may be referred;

8 (2) designation of a program director;

9 (3) plans for providing ongoing technical assistance

10 to program graduates, including linkages with providers of

11 other entrepreneurial assistance programs and with

12 providers of small business technical assistance and

13 services;

14 (4) a program budget, including matching funds,

15 in-kind and otherwise, to be provided by the applicant; and

16 (5) any other requirements as deemed necessary by the

17 Department.

18 (f) Grants made under this Section shall be disbursed for

19 payment of the cost of services and expenses of the program

20 director, the instructors of the participating career

21 education agency or not-for-profit corporation, the faculty

22 and support personnel thereof, and any other person in the

23 service of providing instruction and counseling in furtherance

24 of the program.

25 (g) The Department shall monitor the performance of each

26 entrepreneurial assistance center and require quarterly

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1 reports from each center at such time and in such a manner as

2 prescribed by the Department.

3 The Department shall also evaluate the entrepreneurial

4 assistance centers established under this Section and report

5 annually beginning on January 1, 2022, and on or before January

6 1 of each year thereafter, the results of the evaluation to the

7 Governor and the General Assembly. The report shall discuss the

8 extent to which the centers serve minority group members,

9 women, individuals with a disability, dislocated workers, and

10 veterans; the extent to which the training program is

11 coordinated with other assistance programs targeted to small

12 and new businesses; the ability of the program to leverage

13 other sources of funding and support; and the success of the

14 program in aiding entrepreneurs to start up new businesses,

15 including the number of new business start-ups resulting from

16 the program. The report shall recommend changes and

17 improvements in the training program and in the quality of

18 supplemental technical assistance offered to graduates of the

19 training programs. The report shall be made available to the

20 public on the Department's website. Between evaluation due

21 dates, the Department shall maintain the necessary records and

22 data required to satisfy the evaluation requirements.

23 (h) For purposes of this Section:

24 "Entrepreneurship assistance center" or "center" means the

25 business development centers or programs which provide

26 assistance to primarily minority group members, women,

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1 individuals with a disability, dislocated workers and veterans

2 under this Section.

3 "Disability" means, with respect to an individual: (i) a

4 physical or mental impairment that substantially limits one or

5 more of the major life activities of an individual; (ii) a

6 record of such an impairment; or (iii) being regarded as having

7 an impairment.

8 "Minority business enterprise" has the same meaning as

9 provided for "minority-owned business" under Section 2 of the

10 Business Enterprise for Minorities, Women, and Persons with

11 Disabilities Act.

12 "Minority group member" has the same meaning as provided

13 for "minority person" under Section 2 of the Business

14 Enterprise for Minorities, Women, and Persons with

15 Disabilities Act.

16 "Women-owned business enterprise" has the same meaning as

17 provided for "women-owned business" under Section 2 of the

18 Business Enterprise for Minorities, Women, and Persons with

19 Disabilities Act.

20 "Veteran" means a person who served in and who has received

21 an honorable or general discharge from, the United States Army,

22 Navy, Air Force, Marines, Coast Guard, or reserves thereof, or

23 who served in the Army National Guard, Air National Guard, or

24 Illinois National Guard.