Bill Amendment: IL HB0574 | 2015-2016 | 99th General Assembly

NOTE: For additional amemendments please see the Bill Drafting List

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Bill Title: STATE GOVERNMENT-TECH

Status: 2015-06-23 - Referred to Assignments [HB0574 Detail]

Download: Illinois-2015-HB0574-House_Amendment_002.html

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Rep. Barbara Flynn Currie

Filed: 6/22/2015

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AMENDMENT TO HOUSE BILL 574
AMENDMENT NO. ______. Amend House Bill 574 by replacing
everything after the enacting clause with the following:
"Article I.
Section 1-1. Short title. This Article may be cited as the
Illinois Business and Economic Development Partnership Act.
Section 1-5. Findings. The General Assembly finds that
targeted efforts to promote and foster business growth, job
creation, and tourism are necessary for economic growth in
Illinois to provide more prosperity and opportunities for
Illinois residents. As both the public and private sectors have
a shared interest in fostering the economic vitality of the
State, it is the purpose of this Act to implement economic
development policy in the State by means of collaboration
between the government and a not-for-profit corporation.

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Article II.
Section 2-1. Short title. This Article may be cited as the
Illinois Business and Economic Development Corporation Act.
References in this Article to "this Act" mean this Article.
Section 2-5. Definitions. For the purposes of this Act:
"Board" means the board of directors of the corporation.
"Chief Executive Officer" means the chief executive
officer of the corporation.
"Conflict party" means a director, officer, or employee of
the corporation; the spouse of a director, officer, or employee
of the corporation; or an immediate family member of a
director, officer, or employee of the corporation residing in
the same residence as the director, officer or employee.
"Corporation" means the Illinois Business and Economic
Development Corporation incorporated by the Department
pursuant to Section 2-10.
"Department" means the Illinois Department of Commerce and
Economic Opportunity.
"Director" means the Director of Commerce and Economic
Opportunity.
Section 2-10. Creation of the Illinois Business and
Economic Development Corporation.

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(a) The General Assembly authorizes the Department, in
accordance with Section 10 of the State Agency Entity Creation
Act, to incorporate the Illinois Business and Economic
Development Corporation as a not-for-profit corporation
pursuant to the General Not For Profit Corporation Act of 1986.
(b) The purpose of the corporation shall be to promote the
economic development and well-being of the State. The
corporation shall focus on business development, small and
minority-owned business incubation, trade and investment,
tourism and film. The corporation shall:
(1) develop best practices for economic development in
consultation with the Department;
(2) enter into grant agreements with the Department and
sub-grants with other persons and entities;
(3) maintain and develop economic data and research
that is beneficial to business development in the State;
(4) maintain and develop information about specific
statewide and regional economic incentives and benefits
that may be available to a business to expand within, or
relocate to, the State; and provide such information to
prospective businesses;
(5) formulate and pursue programs and local
partnerships for encouraging the location of new
businesses in the State and for retaining and fostering the
growth of existing businesses;
(6) negotiate tax incentives with private businesses,

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subject to Department approval; and
(7) cooperate with and provide information to State
agencies, local governments, community colleges, and State
universities on economic development matters.
(c) For the purposes described in this Act, the corporation
shall collaborate with the Department; with other State
agencies, authorities, boards, and commissions whose programs
and activities significantly affect economic activity in the
State as appropriate; and with local and regional economic
development organizations, local elected officials,
community-based organizations, service delivery providers, and
other organizations whose programs and activities
significantly affect economic activity. The Department and
each other State agency, authority, board, or commission with
which the corporation seeks to collaborate shall assist the
corporation in carrying out its purposes as directed by the
Governor.
(d) The corporation shall not be considered, in whole or in
part, an agency, political subdivision, or instrumentality of
the State. The corporation shall not exercise any sovereign
power of the State. Employees and officers of the corporation
shall not be considered employees or officers of the State or
subject to Personnel Code or other laws applicable to State
employees and officers. The corporation does not have authority
to pledge the credit of the State; the State shall not be
liable for the debts or obligations of the corporation; and all

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debts and obligations of the corporation shall be payable
solely from the corporation's funds.
(e) The corporation shall have such powers, rights, and
obligations as are conferred upon a not-for-profit corporation
under the General Not For Profit Corporation Act of 1986,
including to accept grants, loans, or other amounts from the
State, the federal government, or other persons; to enter into
contracts; and to employ personnel and other agents.
(f) The corporation shall be established, maintained, and
operated so that donations and bequests to the corporation
qualify as tax deductible under State income tax laws and
Section 501(c)(3) of the Internal Revenue Code.
(g) The articles of incorporation and bylaws of the
corporation shall provide for (1) governance and efficient
management of the corporation, (2) a board of directors
satisfying the requirements of Section 2-15, (3) a conflict
of interest policy satisfying the requirements of Section
2-30, and (4) financial operations of the corporation,
including the authority to receive and expend funds from
public and private sources and to use its property, money,
and other resources for the purposes of the corporation.
Section 2-15. Board of Directors and Chief Executive
Officer of the corporation.
(a) The affairs of the corporation shall be managed by or
under the direction of the board of directors of the

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corporation.
(b) The board shall comprise 16 directors as follows:
(1) The Governor or his or designee shall be a director
ex officio and serve as chairperson of the board.
(2) The Governor shall appoint 11 directors, including
(i) one director with professional experience in finance,
insurance, or investment banking, (ii) one director with
professional experience in small business development,
(iii) one director with professional experience in the
tourism or hospitality industry, and (iv) eight directors
who are actively employed in the private, for-profit sector
or who otherwise have substantial experience in economic
development. Of those eight directors described in clause
(iv), there shall be at least one director from each
industry cluster as identified to the Governor by the
Director. Of the 11 directors appointed pursuant to this
paragraph, at least 4 directors shall be representatives of
minority-owned and women-owned businesses.
(3) The Speaker and Minority Leader of the House of
Representatives and the President and Minority Leader of
the Senate each shall appoint one director who is employed
in, or retired from employment in, a private business,
not-for-profit organization, or academic organization.
(c) To facilitate communication and cooperation between
the corporation and State agencies involved in economic
development, the director or head of each of the following

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agencies shall serve as a non-voting, non-director member of
the board: Department of Commerce and Economic Opportunity,
Department of Agriculture, Department of Natural Resources,
Department of Financial and Professional Regulation, Illinois
Finance Authority, Department of Revenue, Department of Labor,
Veterans' Affairs, Central Management Services, Illinois
Environmental Protection Agency and Department of Employment
Security.
(d) Except for the Governor or his or her designee, each
director shall serve a term of three years. The articles of
incorporation or bylaws shall divide the other 15 directors
into three equal classes, with the terms of one class of
directors expiring each year.
(e) The Governor shall select an initial Chief Executive
Officer of the corporation, subject to confirmation by a
majority of members of the board. After the initial Chief
Executive Officer, each subsequent Chief Executive Officer
shall be selected and confirmed by a majority vote of the
Board.
Section 2-20. Office of Economic Development and Tourism.
Within the Department, there shall be created a new division
called the Office of Economic Development and Tourism. That
office shall collaborate with the corporation and be
responsible for the following functions of the Department:
business development; entrepreneurship, innovation, and

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technology; trade and investment; and tourism and film. The
director of that office shall report directly to the Director.
Section 2-25. Transparency and accountability.
(a) Within the Office of the Director there is created a
new division called the Office of Accountability and
Transparency. Such division shall be responsible for
monitoring all grants made by the Department; for ensuring
compliance by the Department and its grantees, including the
corporation, with all applicable laws and grant terms and
conditions; and for ensuring transparency in the Department's
grant-making and other activities.
(b) With respect to any grant agreement entered into
between the corporation and the Department, the corporation
shall comply with the following provisions:
(1) For the purposes of the Freedom of Information Act,
the corporation shall be considered a contractor
performing a governmental function on behalf of the
Department in accordance with subsection (2) of Section 7
of such Act, notwithstanding whether the corporation
receives a grant from or enters into a contract with the
Department.
(2) The corporation shall post copies of minutes of its
board meetings on its publicly-accessible website. Any
redactions shall be limited to information exempt from
disclosure pursuant to subsection (1) of Section 7 of the

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Freedom of Information Act or other applicable law.
(3) The corporation shall post copies of all final
grant agreements and tax incentives on its
publicly-accessible website. Any redactions shall be
limited to information exempt from disclosure pursuant to
subsection (1) of Section 7 of the Freedom of Information
Act or other applicable law.
(4) The corporation shall develop procedures,
standards, and objectives for evaluating all sub-grant
applicants and sub-grants awarded to ensure that State
funds spent by the corporation and its sub-grantees
optimize return on investment for Illinois taxpayers. Such
procedures, standards, and objectives shall be disclosed
on the corporation's publicly-accessibly website.
(5) The corporation shall assess and report its efforts
and results to the public and the Department's Office of
Accountability and Transparency. In addition, the
corporation shall comply with all grant monitoring
procedures issued by the Department for the monitoring of
grants of State and federal funds.
(6) The corporation shall conduct an annual audit
performed by a certified public accountant in accordance
with generally accepted accounting procedures. Such audit
shall be filed with the Department's Office of
Accountability and Transparency and made available to the
public.

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(7) The corporation shall be subject to bi-annual
audits by the Auditor General.
(8) The Corporation shall submit an annual report to
the Governor, the General Assembly, and the Department's
Office of Accountability and Transparency that describes
the corporation's operations and activities during the
prior fiscal year, including (A) the corporation's
complete, audited financial statements, including a
description of the corporation's financial conditions and
operations; (B) a listing of all public sources of funds
received by the corporation; (C) a listing of all private
sources of funds received by the corporation; (D) a listing
of all firms and individuals who provided assistance or
resources to the corporation without compensation,
including the approximate value of the assistance or
resources provided; and (E) a description of how the
operations and activities of the corporation serve the
interests of the State and promote economic development.
(9) The corporation shall comply with all applicable
State and federal laws, including all applicable terms of
the Grant Accountability and Transparency Act.
Section 2-30. Conflicts of interest.
(a) In the conduct of their service to the corporation,
directors, officers, and employees of the corporation shall
behave ethically and in the best interests of the corporation

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and shall seek to avoid actual and potential conflicts of
interest.
(b) The corporation shall adopt and maintain a
comprehensive conflicts of interest policy. Such policy shall
include, without limitation, the following:
(1) Any pecuniary interest held by or for a conflict
party in a grant from or contract with the corporation
shall be disclosed in writing and identified in the minutes
of the board.
(2) A conflict party who holds a pecuniary interest in
a grant from or contract with the corporation, or for whom
such an interest is held, shall not participate in any
corporate action with respect to such grant or contract.
(3) A conflict party may not acquire a pecuniary
interest in a grant from or contract with the corporation
during the time that the conflict party (or the spouse or
immediate family member of the conflict party) serves as a
director, officer, or employee of the corporation and for
one year after termination of such service.
(4) The corporation will not enter into any grant or
contract with any entity in which a conflict party is
entitled to receive more than 7.5%, or in which a conflict
party together with his or her spouse and immediate family
members residing in his or her residence are entitled to
receive more than 15%, of the total distribution income of
the entity.

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Section 2-35. Fundraising. The corporation shall raise and
accept funds from private donors to support its economic
development efforts and other operations.
Article III.
(20 ILCS 605/605-300 rep.)
Section 3-5. The Department of Commerce and Economic
Opportunity Law of the Civil Administrative Code of Illinois is
amended by repealing Section 605-300.
Article IV.
Section 4-99. Effective date. This Act takes effect upon
becoming law.".