(30 ILCS 750/Art. 11 heading)
Article 11
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(30 ILCS 750/11-1) (from Ch. 127, par. 2711-1)
Sec. 11-1.
Short Title.
This Article shall
be known and may be cited as the "Illinois Small Business
Incubator Act".
(Source: P.A. 84-109.)
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(30 ILCS 750/11-2) (from Ch. 127, par. 2711-2)
Sec. 11-2. Definitions. As used in this Article:
(a) "Small business incubator" or "Incubator"
means a property described in Sections 11-7 and 11-8.
(b) "Community Advisory Board" or "Board" means a
board created pursuant to Section 11-4.
(c) "Department" means the Illinois Department of Commerce
and
Economic Opportunity.
(d) "Educational institution" means a local school
district, a private junior college or university, or a State
supported community college or university within the State.
(e) "Local governmental unit" means a county,
township, city, village or incorporated town within this State.
(f) "Non-profit organization" means local
chambers of commerce, business and economic development
corporations and associations, and such other similar organizations
so designated by the Department.
(g) "Sponsor" means an educational institution,
local governmental unit or non-profit organization which
receives Department funds under this Article.
(h) "Costs of establishment" means the actual
costs of acquisition, whether by lease, purchase or other
devices, and of construction and renovation of the incubator.
(i) "Costs of administration" means the costs of
wages or salary for the incubator manager and related clerical
and administrative costs.
(Source: P.A. 94-793, eff. 5-19-06.)
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(30 ILCS 750/11-3) (from Ch. 127, par. 2711-3)
Sec. 11-3.
Incubator Benefits.
A small business
incubator shall provide the following benefits to its tenants:
(a) Physical space within the incubator;
(b) Business and management assistance, agreed
upon by the sponsor and the Department, which may include
access to local experts in professional areas such as bookkeeping,
legal services, accounting, financing, product
marketing, engineering and other business support services;
(c) Facility services, agreed upon by the sponsor
and the Department, available within the incubator which may
include but are not limited to typing and reception; cleaning
and building security; conference, laboratory and library
facilities; and duplicating machines, computers and other
electronic equipment; and
(d) As determined by the sponsor, certain professional
services which focus on but are not limited to:
information on government small business regulations; basic
management skills; detailed advertising, promotion, marketing
and sales information; control of inventory levels; recruitment
of employees; labor relations; and financial counseling
in areas such as venture capital, risk management, taxes,
insurance and qualifying for government small business loans.
(Source: P.A. 84-109.)
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(30 ILCS 750/11-4) (from Ch. 127, par. 2711-4)
Sec. 11-4.
Community Advisory Board.
(a) A
local governmental unit, non-profit organization or educational
institution that desires to have an unoccupied or
nearly unoccupied building or site designated, in whole or in
part, as a small business incubator shall appoint, in conjunction
with local governmental units, educational institutions,
private individuals or organizations or other entities that
agree to contribute monetarily or in-kind to the incubator, a
Community Advisory Board to perform the duties required of
the Board by this Article.
(b) A local governmental unit, non-profit organization
or educational institution may designate the board of
an existing, consenting economic development entity, such as
a local development corporation or a chamber of commerce, as
the Community Advisory Board.
(c) The Community Advisory Board shall be of a
size that the appointing body determines to be appropriate.
The members of the Community Advisory Board shall consist of
representatives from key segments of the community, including
but not limited to government, finance, business, labor and
education. The Board shall elect from its members a chairperson.
(d) An existing board of an economic development
entity designated as a Community Advisory Board pursuant to
subsection (b) must meet the composition requirements of
subsection (c).
(e) Community Advisory Board members shall serve
without compensation and shall serve at the pleasure of the
appointing body or until the Community Advisory Board's task
is completed, whichever occurs first.
(Source: P.A. 84-109.)
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(30 ILCS 750/11-5) (from Ch. 127, par. 2711-5)
Sec. 11-5.
Board Duties.
(a) Upon appointment,
the Community Advisory Board shall:
(l) Identify the property under consideration for
designation as a small business incubator;
(2) Market the concept of a small business incubator
in the surrounding area;
(3) Solicit the views of the community concerning
the designation of the property under consideration as a
small business incubator;
(4) Identify probable tenants for the small business
incubator; and
(5) Obtain commitments from persons, organizations,
businesses, local governmental units or other sources for a
share of those costs not covered by rental fees or grants and
for other types of incubator support.
(b) If, after performing the duties required by
subsection (a), the Board determines that a designation of
the property under consideration as a small business incubator
is desirable and possible, the Board shall notify the Department
of its intent to conduct a feasibility study.
(Source: P.A. 84-109.)
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(30 ILCS 750/11-6) (from Ch. 127, par. 2711-6)
Sec. 11-6.
Feasibility Study and Petition.
(a) After filing a notice
with the Department pursuant to Section 11-5, the Community Advisory Board,
with the advice of the Department, shall conduct, complete and deliver to the
Department, within time lines given by the Department, an in-depth incubator
feasibility study. The study shall include but not be limited
to all of the following factors:
(1) Costs of establishment of the incubator such
as necessary lease, purchase, renovation or construction
costs associated with the site and structures;
(2) Estimated costs of maintenance of the site and
structures including utility costs and costs of financing;
(3) Estimated wage and salary rates for the incubator
manager and related administrative costs;
(4) Estimated costs of providing incubator benefits
identified in Section 11-3;
(5) Estimated income from the incubator including
the estimated rental fees collected from lessees within the
incubator, the estimated annual local cash subsidies, the
value of in-kind services, the value of anticipated grants
from other sources and the amount of Department funds requested;
(6) Prospects of attracting suitable businesses
to the incubator and the ability of the community to develop
and market the incubator; and
(7) The ability of the community to provide necessary
support for the incubator, including but not limited to
technical assistance and training, assistance in attracting
employees, assistance in locating prospective tenants and
assistance in business start-up financing.
(b) If, after performing the duties required by
subsection (a), the Board determines that a designation of
the property under consideration as a small business incubator is
desirable, the Board shall transmit a completed copy
of the feasibility study to the Department along with a
petition from the local governmental unit, non-profit organization or
educational institution requesting designation of
the incubator.
(Source: P.A. 84-1124.)
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(30 ILCS 750/11-7) (from Ch. 127, par. 2711-7)
Sec. 11-7.
Government or Non-Profit Organization Sponsored Incubator.
(a) In designating small business incubators sponsored by a unit of local
government or non-profit organization, priority shall be given to those
proposals that the Department determines:
(1) Are sponsored by a local governmental unit or
| | non-profit organization which agrees to contribute monetarily or in-kind;
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(2) Consist of an unoccupied or nearly unoccupied
| | building or group of buildings on a contiguous site, an unimproved or partially improved site, or an existing incubator facility;
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(3) Have a financial commitment of at least 50% of
| | the projected costs for the establishment and administration of a building in a manner suitable for occupancy by small firms;
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(4) Have a financial commitment for the projected
| | unreimbursed costs of maintenance of the incubator for the first 3 years; unreimbursed costs of maintenance meaning total operating costs, excluding costs of administration, less rental receipts;
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(5) Are supported by local representatives of
| | business, labor and education;
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(6) Will generate a significant number of jobs;
(7) Will provide the benefits and services identified
| | in Section 11-3, including mechanisms to provide detailed management assistance to start-up firms; and
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(8) Include local funding commitments to assist in
| | the financing of start-up firms.
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(b) During the first 5 years of operation of an
incubator designated pursuant to subsection (a) the Department may provide
funding, subject to appropriation, for no
more than 50% of the costs of establishment and administration and
development and operation.
(c) The Department may provide ongoing funding for an incubator
located in an area that qualifies for assistance under the Financially
Distressed City Law.
(Source: P.A. 87-558.)
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(30 ILCS 750/11-8) (from Ch. 127, par. 2711-8)
Sec. 11-8.
Educational Institution Sponsored
Incubator. (a) In designating small business incubators
sponsored by an educational institution, priority shall be
given to those proposals the Department determines:
(l) Are sponsored by an educational institution
which agrees to contribute monetarily or in kind;
(2) Consist of an existing incubator facility, an unoccupied or
nearly unoccupied building or group of buildings on a contiguous site or
unoccupied or nearly unoccupied
property or unimproved or partially improved site in close
proximity to the sponsoring educational institution;
(3) Have a financial commitment of at least 25%
of the projected costs for the establishment and
administration of a site in a manner appropriate for commercial
or industrial use by advanced technology firms, including
the costs of necessary laboratory structures and establishing
a structure suitable for occupancy by small and medium sized
advanced technology firms;
(4) Have a financial commitment for the unreimbursed
costs of maintenance of the incubator for the first 3
years; unreimbursed costs of maintenance meaning total operating
costs, excluding costs of administration, less rental receipts;
(5) Are supported by local representatives of
business, labor and government;
(6) Will generate a significant number of jobs;
(7) Will provide the benefits and services
identified in Section 11-3, including mechanisms to provide
detailed management assistance to start-up firms; and
(8) Include local funding commitments to assist in
the financing of start-up firms.
(b) During the first 3 years of operation of an
incubator designated pursuant to subsection (a), the Department
may provide funding subject to appropriation, for not
more than 75% of the costs of establishment and administration and
development and operation.
(Source: P.A. 84-1124.)
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(30 ILCS 750/11-9) (from Ch. 127, par. 2711-9)
Sec. 11-9.
Department Decision.
(a) The
Department may designate unoccupied or nearly unoccupied
properties as small business incubators for the purpose of
encouraging and assisting the establishment and expansion of
small businesses within this State. Designation of properties as small
business incubators shall be made only upon Department receipt of a
petition and feasibility study pursuant to this Article.
(b) Within 45 calendar days after receipt of the
feasibility study and petition, the Department shall notify
the Board of its decision to designate or withhold designation based upon
the study and the criteria set forth in this
Article. If the Department does not designate the property as a
small business incubator, the Department shall set forth the
reasons for its decision in its notification to the Board. A
Board receiving a negative response may reapply for designation of the
property when circumstances which led to its
initial rejection have been remedied.
(c) The Department shall administer State funding
for the incubators it designates. The funding may be provided in the form
of a grant or an interest free or below
market rate loan. The repayment of a loan may be deferred or waived by
the Department so long as the incubator continues to operate.
The Department shall not provide any State funding under this
Article to a designated small business incubator after the
incubator's first 3 years of operation.
(d) The level of funding provided to a designated
incubator shall be based in part on the ability of the
incubator to generate adequate financing for small businesses
entering the incubator, on the potential of the incubator to
create new jobs, on the amount of matching community resources
provided to support the incubator and on related factors.
(e) The total amount of principal and interest
due on any Department loan to an incubator shall be amortized
over the life of the incubator or a maximum of 15 years.
(Source: P.A. 84-1124.)
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(30 ILCS 750/11-10) (from Ch. 127, par. 2711-10)
Sec. 11-10.
Community Funding.
A local governmental unit,
educational institution or other community
organization, public or private, singly or cooperatively,
shall participate in the initial funding and in the maintenance of any
facility that a sponsor requests to have
designated as a small business incubator. The funding shall
be in an amount sufficient to cover the costs of establishment,
administration and maintenance that are not covered by
rental fees or Department funds. The community shall provide
funding assistance to the incubator as long as the facility
needs such assistance to operate properly.
(Source: P.A. 84-109.)
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(30 ILCS 750/11-11) (from Ch. 127, par. 2711-11)
Sec. 11-11.
Operation of the Incubator.
(a) The sponsor of a small
business incubator or its agent may
hold title to the incubator facility or may lease the property
from the titleholder.
(b) Except as provided in subsection (c), designation of a building or
site as a small business incubator
shall remain in effect for 15 years unless otherwise agreed
to at any time during the period of designation by the
Department and the sponsor.
(c) The titleholder of a building or site designated as a small business
incubator who desires to have the
building or site returned to its previous use before the
expiration of the 15 year designation shall notify the
sponsor 5 years before the time the building will be needed.
The sponsor shall notify the Department and shall publicize
the closing date of the incubator, the lessees of the incubator
and to the community.
(d) The local governmental unit, non-profit organization or educational
institution providing the feasibility
study and petition to create an incubator shall provide for
the continual operation of the incubator and may enter into
agreements with public or private entities or with the
Community Advisory Board to recommend potential applicants
pursuant to Sections 11-12 and 11-13 or to provide small
business incubator services pursuant to Section 11-3.
(e) The incubator sponsor may reserve a reasonable
portion of the incubator facility for related public purposes
such as laboratory or research facilities or offices of the
incubator manager.
(f) The incubator sponsor shall report in writing
at least annually to the Department on the activities of the
small business incubator. The report shall include the
balance sheet and profit and loss statement of the incubator;
the name of each applicant it rejects and the reasons for the
rejection; the name of each applicant it favorably evaluates,
a description of the applicant's business and the number and
types of jobs created; and the types of services provided
within the incubator and other economic benefits.
(Source: P.A. 84-109.)
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(30 ILCS 750/11-12) (from Ch. 127, par. 2711-12)
Sec. 11-12.
Small Business Applications.
When
a building is designated as a small business incubator, the
incubator sponsor may begin accepting applications from
persons desiring to start or expand a small business and to
locate that business within a small business incubator. The
application form, subject to the approval of the Department,
shall request information pertaining to:
(a) The type of business that the applicant wishes
to start or expand;
(b) An estimate of the number of employees the
applicant will need in order to start or expand the business
and a 2 year projection of future employment;
(c) The skill and educational level of the employees that the applicant plans to hire;
(d) The ability of the applicant to start or
operate a successful business;
(e) A general statement as to why the applicant
wishes to be accepted into the small business incubator;
(f) A signed statement by the applicant that he
or she understands and accepts the obligations placed upon
him or her under Section 11-14; and
(g) Information that the applicant considers to be
of a proprietary nature and that he or she does not want to
be made public.
(Source: P.A. 84-109.)
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(30 ILCS 750/11-13) (from Ch. 127, par. 2711-13)
Sec. 11-13.
Evaluation of Applicants.
(a) The
incubator sponsor shall evaluate all applicants who want to
start or expand a small business and to locate within the
small business incubator. The evaluation of applicants shall
be based upon, but not be limited to, all of the following
factors:
(1) The likelihood that the business will be
profitable;
(2) Whether the product to be manufactured or the
service to be rendered would be new or improved;
(3) Whether the potential market for the product
or service is regional, statewide or national;
(4) The likelihood that the business will generate
a significant number of new jobs and not eliminate existing
community or area jobs;
(5) Certification that the business is a new plant
start-up or new venture opportunity and is not an area or
regional relocation of an existing business, unless that
relocation results in substantial growth of the business;
(6) The likelihood that the business will be
substantially aided by its location in the small business
incubator.
(b) The incubator sponsor shall forward to each
local governmental unit, educational institution or other
agency that has agreed to contribute monetarily or in-kind to
the incubator, and to each applicant for incubator space that
it favorably evaluates, notification of its decision and
whether space exists.
(c) The incubator sponsor shall notify each applicant it rejects and
shall provide the reasons for the rejection.
(Source: P.A. 84-109.)
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(30 ILCS 750/11-14) (from Ch. 127, par. 2711-14)
Sec. 11-14.
Lessee Responsibilities.
A business which leases space
within a designated incubator shall do all of the following:
(a) Pay rent determined by the incubator sponsor.
The sponsor may agree to have the rent for a predetermined
number of months payable at a later date by which time the
business is expected to have received committed starting
capital.
(b) Pay utilities and other associated costs
determined by the sponsor.
(c) Make every effort to relocate to a permanent
location not later than 36 months after entering a small
business incubator. A business may request suspension of
this requirement for periods of not more than 12 months at a
time. The sponsor may suspend the requirement for 12 months
at a time upon a determination that a business still requires
the services of the incubator.
(Source: P.A. 84-109.)
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(30 ILCS 750/11-15) (from Ch. 127, par. 2711-15)
Sec. 11-15.
Department Responsibilities.
The
Department shall work closely with the designated small
business incubators, offering advice and assistance when
possible, and shall promote, through advertising and other
appropriate means, the concept, benefits and availability
of small business incubators. The Department shall cooperate
with the Community Advisory Boards, local governmental units,
non-profit organizations and educational institutions to
effectuate the purposes of this Article. The Department, if it
finds that a Community Advisory Board or sponsor of an incubator is not
operating in compliance with this Article, may withdraw State funding from the
incubator. The Department shall
report each January l to the Governor and the committees of
the Senate and House of Representatives responsible for
economic development as to the operations of the preceding
fiscal year and the implementation of this Article. This shall
include information relating to the number of applicants
accepted into small business incubators, the number of small
businesses in operation at the time of the report, and the
structure and operations characteristics of each incubator.
(Source: P.A. 84-109.)
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(30 ILCS 750/11-16) (from Ch. 127, par. 2711-16)
Sec. 11-16.
Open Meetings and Confidentiality.
(a) Except as provided in subsection (c), the business of
the Community Advisory Board or the incubator sponsor or its
agent with respect to meeting the requirements of this
Article shall be conducted in compliance with the Open
Meetings Act. Public notice of the time, date and place of
meetings shall be given in the manner required by the Open
Meetings Act.
(b) Except as provided in subsection (c), any
written materials prepared, owned, used, possessed by or
retained by the Community Advisory Board or the sponsor or
its agent in the performance of an official function shall be
made available to the public in compliance with The Freedom
of Information Act.
(c) The Community Advisory Board or the sponsor or
its agent shall not disclose, either orally or in writing,
matters of a proprietary nature such as commercial or financial
information, trade secrets and confidential personal information without
the consent of the party submitting the information.
(Source: P.A. 84-109.)
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(30 ILCS 750/11-17) (from Ch. 127, par. 2711-17)
Sec. 11-17.
Federal Programs.
The Department is
authorized to accept and expend federal monies pursuant to
this Article except that the terms and conditions hereunder
which are inconsistent with or prohibited by the federal
authorization under which such monies are made available
shall not apply with respect to the expenditures of such monies.
(Source: P.A. 84-109.)
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(30 ILCS 750/23-1) (from Ch. 127, par. 2723-1)
Sec. 23-1.
Wages of laborers, mechanics and other workers employed on
all "public works" projects undertaken pursuant to contracts financed with
appropriations from the Build Illinois Bond Fund or the Build Illinois
Purposes Fund shall be subject to the provisions of
the Prevailing Wage Act.
(Source: P.A. 86-1475.)
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