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

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Bill Title: Amends the Public Education Affinity Credit Card Act. Makes a technical change in a Section concerning the purpose of the Act.

Spectrum: Slight Partisan Bill (Democrat 3-1)

Status: (Engrossed - Dead) 2015-06-23 - Referred to Assignments [HB0574 Detail]

Download: Illinois-2015-HB0574-Engrossed.html

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AN ACT concerning State government.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 1. Short title. This Act may be cited as the
Illinois Business and Economic Development Corporation Act.
Section 3. 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.
Section 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

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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 10.
"Department" means the Illinois Department of Commerce and
Economic Opportunity.
"Director" means the Director of Commerce and Economic
Opportunity.
Section 10. Creation of the Illinois Business and Economic
Development Corporation.
(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 operate
exclusively for charitable purposes within the government, by
promoting 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, subject to

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Department approval;
(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,
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

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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 make every effort to focus on
small business development and incentives and programs
designed to assist minority-owned and women-owned businesses
and businesses that will create jobs in areas with high
unemployment or poverty.
(e) 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 the 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
debts and obligations of the corporation shall be payable
solely from the corporation's funds.
(f) 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.

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(g) 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
Sections 170(c)(2) and 501(c)(3) of the Internal Revenue Code.
(h) 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 15, (3) a conflict of
interest policy satisfying the requirements of Section 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 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
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,

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(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 6 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
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,
Department of Veterans' Affairs, Department of Central
Management Services, Illinois Environmental Protection Agency,
and Department of Employment Security.

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(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. In the event of a vacancy on the
Board, the Governor shall appoint a replacement member within
60 days. In the event of a position appointed by a legislative
leader, the leader making the original appointment shall fill
the vacancy within 60 days.
(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.
(f) The members of the board are prohibited from making any
contributions to any political committee established to
support the Governor or any candidate for Governor.
Section 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 for the
purpose of collaborating with the corporation, issuing grants
and transferring funds to the corporation, subject to
appropriation, and being responsible for the following
functions of the Department: business development;

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entrepreneurship, innovation, and technology; trade and
investment; and tourism and film. The director of that office
shall report directly to the Director.
Section 25. Accountability and transparency.
(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, 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 within 10 business days of the
later of the execution of the final agreement or incentive
or the public announcement of the final agreement or
incentive. 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-accessible 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 principles. Such audit

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shall be filed with the Department's Office of
Accountability and Transparency and made available to the
public.
(7) The corporation shall be subject to bi-annual
audits by the Auditor General.
(8) The corporation shall submit an annual report by
March 31 of each year 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 and a
detailed account of how private funds were utilized versus
public funds; (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; (E) a description of how the operations
and activities of the corporation serve the interests of
the State and promote economic development; (F) an analysis
of the State's return on investment; and (G) a listing of
all conflicts of interest from directors, officers, and
employees identified in the board meeting minutes.

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(9) The corporation shall comply with all applicable
State and federal laws, including all applicable terms of
the Grant Accountability and Transparency Act. For
purposes of the Illinois Grant Funds Recovery Act, all
sub-grants of grant funds made by the corporation shall be
treated as grant funds in accordance with Section 12 of
that Act.
Section 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 State and
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 or a
tax incentive from the Department shall be disclosed in
writing and identified in the minutes of the board. Such
conflict must be disclosed before the approval of any
grant, contract, or incentive.
(2) A conflict party who holds a pecuniary interest in
a grant from or contract with the corporation or a tax
incentive from the Department, or for whom such an interest
is held, shall not participate in any corporate action,

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including deliberations on such action, with respect to
such grant, contract, or incentive.
(3) A conflict party may not acquire a pecuniary
interest in a grant from or contract with the corporation
or a tax incentive from the Department 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 shall 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 distributable income of
the entity. For purposes of this paragraph (4),
"distributable income" means the income of a company after
payment of all expenses, including employee salary and
bonus, and retained earnings, which is distributed to those
entitled to receive a share of the income. In the case of a
for-profit corporation, "distributable" income means
dividends. When calculating entitlement to distributable
income the entitlement shall be determined at the end of
the company's most recent fiscal year.
(5) The board of directors shall determine appropriate
penalties for any violations of these provisions.

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Section 33. Prohibition on political contributions. Any
business entity whose cumulative pending applications for
grants or tax incentives or previously approved grants or tax
incentives in the aggregate value more than $50,000, and any
affiliated entities or affiliated persons of such business
entity, are prohibited from making any contributions to any
political committees established to support the Governor or any
candidate for Governor.
Section 35. Fundraising. The corporation shall raise and
accept funds from private donors to support its economic
development efforts and other operations.
Section 40. Repeal. This Act is repealed 3 years after the
effective date of this Act.
(20 ILCS 605/605-300 rep.)
Section 90. The Department of Commerce and Economic
Opportunity Law of the Civil Administrative Code of Illinois is
amended by repealing Section 605-300.