Full Text of SB3219 93rd General Assembly
SB3219eng 93RD GENERAL ASSEMBLY
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| AN ACT to increase the availability and facilitate the | 2 |
| delivery of venture
capital
to emerging and expanding | 3 |
| enterprises in the State of Illinois.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 1. Short title. This Act may be cited as the | 7 |
| Illinois Opportunity
Fund
Act.
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| Section 5. Findings and purposes.
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| (a) The State of Illinois finds that the traditional means | 10 |
| by which venture
capital
and private equity investors direct | 11 |
| capital to Illinois markets are
inadequately serving the
| 12 |
| State's needs for
that capital and that the shortage is | 13 |
| impairing the ability of the State to
create jobs, new
markets | 14 |
| for goods and services, and sustainable economic growth | 15 |
| throughout
Illinois.
The State of Illinois desires to | 16 |
| strengthen the overall economy of the State by
increasing
the | 17 |
| availability and delivery of venture capital for emerging and | 18 |
| expanding
enterprises in
Illinois, and to do so in a way that | 19 |
| provides for financial returns to private
investors.
| 20 |
| (b) Furthermore, the State of Illinois finds that certain | 21 |
| geographic areas
and
populations within the State have been | 22 |
| subject to economic disparities and have
lacked
access to the | 23 |
| private capital needed to create jobs and economic | 24 |
| opportunities.
| 25 |
| (c) Venture capital shall be directed to geographic areas | 26 |
| and populations
within
the State that have been subject to | 27 |
| economic disparities and have lacked access
to the
private | 28 |
| capital needed to create jobs and economic opportunities, and | 29 |
| to
sectors
considered to be strategic industries for the State | 30 |
| of Illinois as determined
by the
Department of Commerce and | 31 |
| Economic Opportunity in coordination with the entities
formed | 32 |
| under this Act.
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| (d) These investments are intended to create high-quality | 2 |
| and sustainable
employment opportunities for Illinoisans, | 3 |
| create domestic and global markets
for the
products and | 4 |
| services of funded enterprises, and help to strengthen the | 5 |
| State's
economic
base. This Act has the mission of mobilizing | 6 |
| private investment in a broad
variety of
venture capital funds | 7 |
| in diversified industries and geographic regions of the
State | 8 |
| of
Illinois. To achieve this mission, the General Assembly | 9 |
| believes that it is
important to
retain the private sector | 10 |
| culture of focusing on rate of return in the
investing process.
| 11 |
| Therefore, this Act is intended to facilitate the establishment | 12 |
| of the Illinois
Opportunity
Fund, seek private investment, and | 13 |
| create interest in these investments by
offering State
credit | 14 |
| enhancements that limit risk to private investors. This Act | 15 |
| also has the
mission of
facilitating and
enhancing the flow of | 16 |
| venture capital into the State of Illinois and improving
the
| 17 |
| infrastructure through which capital is delivered throughout | 18 |
| the State so as to
grow commerce in the State of Illinois. It | 19 |
| is the goal and intent of this
legislation to accomplish
these | 20 |
| missions in such a manner as to minimize any appropriations by | 21 |
| the State
of Illinois
to effectuate these purposes.
| 22 |
| Section 10. Definitions. In this Act, unless the context | 23 |
| requires otherwise:
| 24 |
| "DCEO" means Department of Commerce and Economic | 25 |
| Opportunity, or its
successor agency.
| 26 |
| "Certificate" means an assignable contract between DCEO | 27 |
| and an investor in
the
Illinois Opportunity Fund under which | 28 |
| the terms of the tax credits being issued
for the
benefit of | 29 |
| the investor, or any assignee of the investor, as established | 30 |
| by
DCEO, are
set forth.
| 31 |
| "Person" means an individual, a corporation, a | 32 |
| partnership, or any other
lawfully
organized entity, whether | 33 |
| domiciled in Illinois or outside of Illinois.
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| "Illinois Capital Investment Corporation" means the | 35 |
| private not-for-profit
corporation established pursuant to |
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| this Act.
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| "Illinois Opportunity Fund" means the private for-profit | 3 |
| fund established by
the
Illinois Capital Investment | 4 |
| Corporation pursuant to this Act.
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| "Tax credits" means credits against taxes imposed pursuant | 6 |
| to Section 201 of
the
Illinois Income Tax Act for any taxable | 7 |
| year ending after December 31, 2009,
and
having such terms as | 8 |
| are established by DCEO in accordance with Section 25 of
this | 9 |
| Act,
including any contingencies on redemption.
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| "SBIC" means small business investment company within the | 11 |
| meaning of the
federal Small Business Investment Act of 1958.
| 12 |
| "CDFI" and "CDVC". CDFI means a "community development | 13 |
| financial
institution" as defined in the Illinois Investment | 14 |
| and Development Authority
Act, and
CDVC means community | 15 |
| development venture capital, a type of CDFI specific to
| 16 |
| investing equity interests in Illinois firms with the dual goal | 17 |
| of financial
returns and
economic and social benefit.
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| Section 15. Illinois Capital Investment Corporation.
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| (a) DCEO shall create the Illinois Capital Investment | 20 |
| Corporation as a
private not-for-profit corporation under the | 21 |
| General Not For Profit Corporation Act of 1986
and not
as a | 22 |
| public corporation or instrumentality of the State. The | 23 |
| corporation shall
not enjoy
any of the privileges nor be | 24 |
| required to comply with any of the requirements of
a State
| 25 |
| agency. Except as provided in this Act, nothing in this Act | 26 |
| exempts the
Illinois Capital
Investment Corporation from the | 27 |
| same requirements under State law that apply to
other
| 28 |
| corporations organized under the General Not For Profit | 29 |
| Corporation Act of
1986. The
Director or Acting Director of | 30 |
| DCEO or his or her designee shall be the
incorporator of
the | 31 |
| Illinois Capital Investment Corporation.
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| (b) The Illinois Capital Investment Corporation shall | 33 |
| recommend and DCEO
shall approve investment objectives and | 34 |
| criteria for the Illinois
Opportunity Fund established to | 35 |
| provide financial returns to investors, create
jobs, and
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| strengthen the economy of the State of Illinois. DCEO shall | 2 |
| supervise the
operations of
the Illinois Capital Investment | 3 |
| Corporation, assist the corporation in
performing its duties, | 4 |
| and
undertake such other responsibilities as are set forth in | 5 |
| this Act or as
may be
necessary or appropriate to give effect | 6 |
| to the intent and purposes of this Act.
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| (c) Subject to the direction and supervision of DCEO, the | 8 |
| Illinois Capital
Investment Corporation shall receive | 9 |
| investment returns from the Illinois
Opportunity
Fund and shall | 10 |
| reinvest those funds in further venture capital investments
| 11 |
| subject to the
provisions of this Act, and shall have | 12 |
| responsibility for organizing and
overseeing the
management of | 13 |
| the Illinois Opportunity Fund, identifying and engaging a | 14 |
| private
fund manager or managers for the Illinois Opportunity | 15 |
| Fund,
and establishing investment objectives for the Illinois
| 16 |
| Opportunity Fund designed to create jobs and strengthen the | 17 |
| economy of the
State of
Illinois.
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| (d) The Illinois Capital Investment Corporation shall | 19 |
| exercise no
governmental
functions. Without limiting the | 20 |
| authority of DCEO to
issue
tax credits pursuant to this Act | 21 |
| under certificates that are binding on DCEO
and the
Illinois | 22 |
| Department of Revenue, the obligations of the Illinois Capital
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| Investment
Corporation are not obligations of the State or any | 24 |
| political subdivision of
the State
within the meaning of any | 25 |
| constitutional or statutory debt limitations, but are
| 26 |
| obligations
of the corporation payable solely and only from the | 27 |
| corporation's funds. The
Illinois
Capital Investment | 28 |
| Corporation shall itself have no authority to pledge the
credit | 29 |
| or
taxing power of the State or any political subdivision of | 30 |
| the State or make its
debts
payable out of any moneys except | 31 |
| those of the corporation.
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| (e) The board of directors of the Illinois Capital | 33 |
| Investment Corporation
shall
have not less than 7 nor more than | 34 |
| 11 members. The Director or Acting
Director
of DCEO or his or | 35 |
| her designee shall be a member of the board of directors of
the | 36 |
| Illinois
Capital Investment Corporation. The Governor, with |
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| the advice and consent of the Senate, shall appoint the | 2 |
| remaining
members of
the board of directors of the Illinois | 3 |
| Capital Investment Corporation and fill
any
vacancies in | 4 |
| consultation with DCEO and the remaining
directors.
DCEO shall | 5 |
| recommend to the Governor candidates for the board and shall | 6 |
| advise
the
Governor as to the qualifications of any other | 7 |
| candidates the Governor desires
to
consider. In recommending | 8 |
| and selecting directors, DCEO and the Governor shall
seek
to | 9 |
| ensure that (i) each candidate has meaningful experience | 10 |
| reviewing,
preparing,
analyzing, or interpreting financial | 11 |
| statements or has sophistication in
financial matters
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| generally, has meaningful experience in the supervision or | 13 |
| management of
venture capital
or private equity investments, | 14 |
| has meaningful experience operating
or
managing investments in | 15 |
| businesses engaged in the industries or sectors
targeted by
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| DCEO as candidates for investment by the Illinois Opportunity | 17 |
| Fund, or has
meaningful
experience managing or selecting | 18 |
| investments for institutional, seed, angel,
mezzanine, or
| 19 |
| community
development venture capital funds or SBIC's; (ii) the | 20 |
| board includes minority
and female
representatives; (iii) the | 21 |
| board includes representatives of geographic areas
beyond Cook
| 22 |
| County and the collar counties; and (iv) the board includes at | 23 |
| least 3
venture capital professionals. A conflict of interest | 24 |
| shall be deemed to exist in any contractual relationship in | 25 |
| which a director, officer, agent, or employee of the Board, or | 26 |
| any for-profit firm or corporation in which that director, | 27 |
| officer, agent, or employee or any member of his or her | 28 |
| immediate family is an officer, partner, or principal | 29 |
| stockholder, shall directly or indirectly buy or sell goods or | 30 |
| services to, or otherwise contract with the Board. Upon a | 31 |
| showing that a conflict of interest exists, the director, | 32 |
| officer, agent, or employee is subject to removal and the | 33 |
| contract shall be deemed unenforceable as against the Board | 34 |
| unless the records of the Board reflect that the director, | 35 |
| officer, agent, or employee fully and publicly disclosed all | 36 |
| such interests, and unless that contractual relationship was |
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| secured by competitive bidding following a public invitation to | 2 |
| bid. If a director, officer, agent, or employee holds such an | 3 |
| interest, he or she shall refrain from any further official | 4 |
| involvement in regard to that contract or agreement, from | 5 |
| voting on any matter pertaining to that contract or agreement, | 6 |
| and from communicating with other Board members, officers, | 7 |
| agents, or employees concerning that contract or agreement.
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| (f) In consultation with the Department, the Illinois | 9 |
| Capital Investment Corporation shall establish a committee and | 10 |
| procedures to select a private fund manager or managers for the | 11 |
| Illinois Opportunity Fund. The committee shall include 2 | 12 |
| members of the board of directors of the Illinois Capital | 13 |
| Investment Corporation and one public member. The public member | 14 |
| may not be employed or associated with the Department or the | 15 |
| Illinois Capital Investment Corporation.
The committee shall | 16 |
| receive and review applications for the position of private | 17 |
| fund manager. In reviewing applications, the committee shall | 18 |
| consider each applicant's level of experience in | 19 |
| institutional, seed, angel, mezzanine, or community | 20 |
| development venture capital or SBIC's investing, its quality of | 21 |
| management, its investment philosophy, its plan for | 22 |
| fundraising, and its prior investment fund results. Any fund | 23 |
| manager selected shall demonstrate substantial experience in | 24 |
| the design, implementation, and management of institutional, | 25 |
| seed, angel, mezzanine, or community development venture | 26 |
| capital investment programs or of SBIC's and in capital | 27 |
| formation. Each applicant shall submit an investment plan for | 28 |
| review by the Illinois Capital Investment Corporation, which | 29 |
| shall describe the applicant's plan for seeking investment | 30 |
| opportunities, evaluating and structuring investments, and | 31 |
| achieving the financial and policy goals of this Act. Upon | 32 |
| completion of this evaluation, the committee shall rank the | 33 |
| applicants based on their qualifications and recommend a | 34 |
| private fund manager or private fund managers for selection to | 35 |
| the board of directors of the Illinois Capital Investment | 36 |
| Corporation.
In consultation with the Department, the board of |
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| directors of the Illinois Capital Investment Corporation shall | 2 |
| select an applicant or applicants based on the recommendations | 3 |
| of the committee, and shall notify the applicant or applicants | 4 |
| selected in writing.
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| (g) The Illinois Capital Investment Corporation may charge | 6 |
| a fee to the
Illinois
Opportunity Fund, which shall be in | 7 |
| addition to any fee payable by the Illinois
Opportunity Fund to | 8 |
| the fund manager or managers engaged. The fee
payable
to the | 9 |
| Illinois Capital Investment Corporation shall be structured to | 10 |
| cover the
reasonable
costs of the corporation in fulfilling its | 11 |
| oversight functions and of DCEO in
fulfilling its
obligations | 12 |
| under this Section and Section 25.
| 13 |
| (h) Directors of the Illinois Capital Investment | 14 |
| Corporation shall be
compensated
for direct expenses and | 15 |
| mileage but shall not receive a director's fee or
salary for | 16 |
| their
service as directors.
| 17 |
| (i) The Illinois Capital Investment Corporation shall have | 18 |
| the power to
engage
consultants, expend funds, invest funds, | 19 |
| contract, bond or insure against loss,
and
perform any other | 20 |
| act necessary to carry out its mission.
| 21 |
| (j) The directors of the Illinois Capital Investment | 22 |
| Corporation shall adopt
bylaws,
policies, and procedures | 23 |
| necessary to administer the affairs of the
corporation.
| 24 |
| (k) Upon the dissolution of Illinois Capital Investment | 25 |
| Corporation, any
assets owned
by it shall thereupon be | 26 |
| distributed to the State of Illinois.
| 27 |
| (l) The meetings of the directors are subject to the | 28 |
| Illinois Open Meeting Act, 5 ILCS 120/. Any information | 29 |
| submitted to or compiled by the Illinois Capital Investment | 30 |
| Corporation with respect to the marketing plans, financial | 31 |
| statements, trade secrets, research concepts, methods or | 32 |
| products, or any other proprietary information of persons, | 33 |
| firms, associations, partnerships, agencies, corporations, or | 34 |
| other entities shall be confidential, except to the extent that | 35 |
| the person or entity that provided the information or that is | 36 |
| the subject of the information consents to disclosure. |
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| Executive sessions may be held to discuss such materials if | 2 |
| deemed necessary by the Directors.
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| Section 20. Illinois Opportunity Fund.
| 4 |
| (a) Following the organization of the Illinois Capital | 5 |
| Investment
Corporation, the
corporation shall organize the | 6 |
| Illinois Opportunity Fund for the purpose of
making
investments | 7 |
| in private institutional, seed, angel, mezzanine, or community
| 8 |
| development
venture
capital funds or SBIC's in a manner that is | 9 |
| intended to strengthen the economy
of the
State, help
business | 10 |
| in Illinois gain access to capital resources, help build a
| 11 |
| significant, permanent
resource available to serve the needs of | 12 |
| Illinois businesses, and accomplish
all these
benefits in a way | 13 |
| that minimizes the use of tax credits and provides market
rate | 14 |
| returns to
the Illinois Opportunity Fund. The Illinois Capital | 15 |
| Investment Corporation
shall organize
the Illinois Opportunity | 16 |
| Fund as a for-profit limited partnership or limited
liability
| 17 |
| company under Illinois law pursuant to which the Illinois | 18 |
| Capital Investment
Corporation
shall be the general partner or | 19 |
| managing member, as the case may be.
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| (b) Qualified investors shall be permitted to invest in | 21 |
| equity interests or
debt obligations of
the Illinois | 22 |
| Opportunity Fund. Such interests or obligations shall provide | 23 |
| for
a fixed or
variable rate of return established by the | 24 |
| Illinois Capital Investment
Corporation and
approved by DCEO. | 25 |
| DCEO may award contingent tax credits to investors in the
| 26 |
| Illinois
Opportunity Fund that shall be redeemable if the | 27 |
| Illinois Opportunity Fund
fails to
achieve results sufficient | 28 |
| to repay the amounts invested by such investors and
provide
| 29 |
| them with specified returns. Returns on investments generated | 30 |
| by the Illinois
Opportunity Fund in excess of amounts required | 31 |
| to (i) repay the amounts
invested by
investors and provide them | 32 |
| with specified returns, and (ii) pay all or an
agreed upon
| 33 |
| portion of DCEO's costs for establishing and operating | 34 |
| specified business
development
programs designed to promote | 35 |
| economic development within the State of Illinois,
including by |
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| increasing the availability of viable investment
opportunities | 2 |
| and
business start-ups in all regions of the State, shall be | 3 |
| reinvested
by the Illinois
Opportunity Fund in investments in | 4 |
| private institutional, seed, angel,
mezzanine, or
community
| 5 |
| development venture capital funds, SBIC's, or other entities in | 6 |
| the manner
described in
this
Section.
| 7 |
| (c) The Illinois Opportunity Fund shall operate primarily | 8 |
| as a fund of funds
that
invests principally in high-quality | 9 |
| institutional, seed, angel, mezzanine, and
community
| 10 |
| development
venture capital funds and SBIC's that (i) maintain | 11 |
| a meaningful physical
presence in the
State of
Illinois, (ii) | 12 |
| are
managed by private investment managers who commit
that | 13 |
| their funds will invest not less than the amount invested with | 14 |
| them by the
Illinois Opportunity Fund in businesses that are | 15 |
| headquartered or maintain
meaningful business operations in | 16 |
| the State of Illinois, and (iii) meet the
investment objectives
| 17 |
| and criteria
established by DCEO and this Act. In establishing | 18 |
| these objectives and
criteria,
DCEO
shall consult with leaders | 19 |
| in business, science, and government to identify
strategic
| 20 |
| industries and sectors that offer the potential to create | 21 |
| high-quality and
sustainable
employment opportunities for | 22 |
| Illinoisans and create domestic and global markets
for the
| 23 |
| products and services of investee companies. In addition, in | 24 |
| establishing these
objectives
and criteria, DCEO shall seek to | 25 |
| ensure that funds will be available for
investment by the
| 26 |
| Illinois Opportunity Fund in seed funds, angel funds, and CDVC | 27 |
| or other CDFI
funds in
diverse geographies within Illinois.
| 28 |
| (d) The Illinois Opportunity Fund shall have the power to | 29 |
| engage
consultants,
expend funds, invest funds, contract, bond | 30 |
| or insure against loss, and perform
any other
act necessary to | 31 |
| carry out its mission. Without limiting the foregoing, the
| 32 |
| Illinois
Opportunity Fund may (i) issue debt
or equity | 33 |
| securities and borrow such funds as may be needed to
accomplish | 34 |
| its goals, (ii) open and manage bank and short-term investment
| 35 |
| accounts as
deemed necessary by its fund manager or managers, | 36 |
| and (iii) expend
funds to
secure investment ratings.
The |
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| Illinois Opportunity Fund shall adopt investment and | 2 |
| diversification
policies.
| 3 |
| (e) The Illinois Opportunity Fund shall engage a certified | 4 |
| public accountant
to
conduct an annual audit of its financial | 5 |
| condition and results of operations.
| 6 |
| (f) DCEO shall provide to the Governor and the General | 7 |
| Assembly reports on
the performance of the Illinois Opportunity | 8 |
| Fund and other pertinent
information concerning the Illinois | 9 |
| Opportunity Fund and the Illinois Capital
Investment | 10 |
| Corporation, except for trade secrets and commercial or | 11 |
| financial
information obtained from a
person or business if the | 12 |
| information is proprietary, privileged, or
confidential or if | 13 |
| disclosure may cause competitive harm or could reasonably be
| 14 |
| expected to produce private gain or public loss.
| 15 |
| (g) Fifty years after the formation of the Illinois | 16 |
| Opportunity Fund, it
shall be
liquidated and its assets shall | 17 |
| be distributed in accordance with law.
| 18 |
| Section 25. Contingent tax credits.
| 19 |
| (a) The State of Illinois hereby allows an aggregate of | 20 |
| $200,000,000 of
contingent
tax credits, which may be allocated | 21 |
| and issued by DCEO to qualified investors
in the
Illinois | 22 |
| Opportunity Fund. DCEO shall not be obligated to issue | 23 |
| certificates
equal to
the full aggregate amount allowed by the | 24 |
| State of Illinois, and it may elect to
suspend or
terminate the | 25 |
| issuance of certificates at any time if it does not believe | 26 |
| that
the continued
issuance of certificates will assist the | 27 |
| State of Illinois in meeting the
objectives of this
Act. Tax | 28 |
| credits may be redeemed in any year redemption is permitted to | 29 |
| the
extent the
Illinois Opportunity Fund is unable to make | 30 |
| required repayments to its
investors of the
amounts invested by | 31 |
| them and provide them with specified fixed or variable rate
| 32 |
| returns.
Tax credits shall be redeemable not earlier than | 33 |
| January 1, 2010 nor later than
December 31, 2033
as may be | 34 |
| specified in any certificate.
| 35 |
| (b) DCEO shall determine the amount of tax credits to be |
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| allowed to
investors
in
the Illinois Opportunity Fund and the | 2 |
| years those tax credits may first be
redeemed.
The aggregate | 3 |
| redemptions of tax credits issued by DCEO, however, shall
not
| 4 |
| exceed $40,000,000 in any fiscal year of the State of Illinois.
| 5 |
| (c) All tax credits shall be evidenced by certificates. | 6 |
| DCEO shall establish
and
set forth in each certificate all | 7 |
| terms and conditions under
which tax
credits may be redeemed. | 8 |
| In establishing the terms of any tax credits and
issuing
| 9 |
| certificates, DCEO shall seek to promote the purposes of this | 10 |
| Act. Tax credits
may not
be redeemed except in accordance with | 11 |
| the terms of the certificate under which
they
have been issued. | 12 |
| The certificates shall, upon proper issuance to investors in
| 13 |
| the Illinois
Opportunity Fund, be binding on DCEO and the | 14 |
| Illinois Department of Revenue.
| 15 |
| (d) Tax credits issued pursuant to this Section shall be | 16 |
| freely transferable
by their
holders. DCEO shall, in | 17 |
| conjunction with the Illinois Department of
Revenue,
develop a | 18 |
| system for registration of any tax credits allowed or | 19 |
| transferred
pursuant to this
Act that permits verification that | 20 |
| any tax credit claimed upon a tax return is
valid and
properly | 21 |
| taken in the year of claim, and that any transfers of the tax | 22 |
| credit
are made in
accordance with the requirements of this | 23 |
| Act.
| 24 |
| (e) Tax credits allowed or transferred pursuant to this Act | 25 |
| shall not be
considered
securities under any Illinois law | 26 |
| relating to securities.
| 27 |
| Section 30. Powers and effectiveness. Nothing contained in | 28 |
| this Act is or
shall be
construed as a restriction or | 29 |
| limitation upon any powers that DCEO might
otherwise have
under | 30 |
| any other law of this State, and the provisions of this Act are
| 31 |
| cumulative to those
powers. The provisions of this Act do and | 32 |
| shall be construed to provide a
complete,
additional, and | 33 |
| alternative method for the doing of the things authorized and
| 34 |
| shall be
regarded as supplemental and additional to powers | 35 |
| conferred by any other laws.
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| Section 35. Acceptable investments. Investments by | 2 |
| designated investors in
the
Illinois Opportunity Fund shall be | 3 |
| deemed permissible investments for State
chartered
banks and | 4 |
| for domestic insurance companies under the appropriate laws of | 5 |
| the
State of
Illinois.
| 6 |
| Section 40. Business development grants. DCEO may | 7 |
| establish a business
planning and development assistance grant | 8 |
| program to provide grant funds to
help entrepreneurs with | 9 |
| business creation and expansion or related activities,
subject | 10 |
| to appropriation.
| 11 |
| Section 45. Illinois Opportunity Special Projects Fund. | 12 |
| The Illinois
Opportunity Special Projects Fund is created as a | 13 |
| special fund in the State
treasury. DCEO may accept | 14 |
| disbursements from the Illinois Opportunity Fund for
deposit | 15 |
| into the Illinois Opportunity Special Projects Fund and
expend | 16 |
| those funds for the purposes set forth in Sections 15(g) and | 17 |
| 20(b) of
this Act, subject to appropriation.
| 18 |
| Section 95. The Illinois State Auditing Act is amended by | 19 |
| changing Section 3-1 as follows:
| 20 |
| (30 ILCS 5/3-1) (from Ch. 15, par. 303-1)
| 21 |
| Sec. 3-1. Jurisdiction of Auditor General. The Auditor | 22 |
| General has
jurisdiction over all State agencies to make post | 23 |
| audits and investigations
authorized by or under this Act or | 24 |
| the Constitution.
| 25 |
| The Auditor General has jurisdiction over local government | 26 |
| agencies
and private agencies only:
| 27 |
| (a) to make such post audits authorized by or under | 28 |
| this Act as are
necessary and incidental to a post audit of | 29 |
| a State agency or of a
program administered by a State | 30 |
| agency involving public funds of the
State, but this | 31 |
| jurisdiction does not include any authority to review
local |
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| governmental agencies in the obligation, receipt, | 2 |
| expenditure or
use of public funds of the State that are | 3 |
| granted without limitation or
condition imposed by law, | 4 |
| other than the general limitation that such
funds be used | 5 |
| for public purposes;
| 6 |
| (b) to make investigations authorized by or under this | 7 |
| Act or the
Constitution; and
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| (c) to make audits of the records of local government | 9 |
| agencies to verify
actual costs of state-mandated programs | 10 |
| when directed to do so by the
Legislative Audit Commission | 11 |
| at the request of the State Board of Appeals
under the | 12 |
| State Mandates Act.
| 13 |
| In addition to the foregoing, the Auditor General may | 14 |
| conduct an
audit of the Metropolitan Pier and Exposition | 15 |
| Authority, the
Regional Transportation Authority, the Suburban | 16 |
| Bus Division, the Commuter
Rail Division and the Chicago | 17 |
| Transit Authority and any other subsidized
carrier when | 18 |
| authorized by the Legislative Audit Commission. Such audit
may | 19 |
| be a financial, management or program audit, or any combination | 20 |
| thereof.
| 21 |
| The audit shall determine whether they are operating in | 22 |
| accordance with
all applicable laws and regulations. Subject to | 23 |
| the limitations of this
Act, the Legislative Audit Commission | 24 |
| may by resolution specify additional
determinations to be | 25 |
| included in the scope of the audit.
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| In addition to the foregoing, the Auditor General must also | 27 |
| conduct a
financial audit of
the Illinois Sports Facilities | 28 |
| Authority's expenditures of public funds in
connection with the | 29 |
| reconstruction, renovation, remodeling, extension, or
| 30 |
| improvement of all or substantially all of any existing | 31 |
| "facility", as that
term is defined in the Illinois Sports | 32 |
| Facilities Authority Act.
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| The Auditor General may also conduct an audit, when | 34 |
| authorized by
the Legislative Audit Commission, of any hospital | 35 |
| which receives 10% or
more of its gross revenues from payments | 36 |
| from the State of Illinois,
Department of Public Aid, Medical |
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| Assistance Program.
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| The Auditor General is authorized to conduct financial and | 3 |
| compliance
audits of the Illinois Distance Learning Foundation | 4 |
| and the Illinois
Conservation Foundation.
| 5 |
| As soon as practical after the effective date of this | 6 |
| amendatory Act of
1995, the Auditor General shall conduct a | 7 |
| compliance and management audit of
the City of
Chicago and any | 8 |
| other entity with regard to the operation of Chicago O'Hare
| 9 |
| International Airport, Chicago Midway Airport and Merrill C. | 10 |
| Meigs Field. The
audit shall include, but not be limited to, an | 11 |
| examination of revenues,
expenses, and transfers of funds; | 12 |
| purchasing and contracting policies and
practices; staffing | 13 |
| levels; and hiring practices and procedures. When
completed, | 14 |
| the audit required by this paragraph shall be distributed in
| 15 |
| accordance with Section 3-14.
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| The Auditor General shall conduct a financial and | 17 |
| compliance and program
audit of distributions from the | 18 |
| Municipal Economic Development Fund
during the immediately | 19 |
| preceding calendar year pursuant to Section 8-403.1 of
the | 20 |
| Public Utilities Act at no cost to the city, village, or | 21 |
| incorporated town
that received the distributions.
| 22 |
| The Auditor General must conduct an audit of the Health | 23 |
| Facilities Planning
Board pursuant to Section 19.5 of the | 24 |
| Illinois Health Facilities Planning
Act.
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| The Auditor General of the State of Illinois shall annually | 26 |
| conduct or
cause to be conducted a financial and compliance | 27 |
| audit of the books and records
of any county water commission | 28 |
| organized pursuant to the Water Commission Act
of 1985 and | 29 |
| shall file a copy of the report of that audit with the Governor | 30 |
| and
the Legislative Audit Commission. The filed audit shall be | 31 |
| open to the public
for inspection. The cost of the audit shall | 32 |
| be charged to the county water
commission in accordance with | 33 |
| Section 6z-27 of the State Finance Act. The
county water | 34 |
| commission shall make available to the Auditor General its | 35 |
| books
and records and any other documentation, whether in the | 36 |
| possession of its
trustees or other parties, necessary to |
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| conduct the audit required. These
audit requirements apply only | 2 |
| through July 1, 2007.
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| The Auditor General must conduct audits of the Rend Lake | 4 |
| Conservancy
District as provided in Section 25.5 of the River | 5 |
| Conservancy Districts Act.
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| The Auditor General is authorized to conduct financial and | 7 |
| compliance audits of the Illinois Capital Investment | 8 |
| Corporation and the Illinois Opportunity Fund.
| 9 |
| (Source: P.A. 93-226, eff. 7-22-03; 93-259, eff. 7-22-03; | 10 |
| 93-275, eff.
7-22-03; revised 8-25-03.)
| 11 |
| Section 96. The State Finance Act is amended by adding | 12 |
| Section 5.625 as
follows:
| 13 |
| (30 ILCS 105/5.625 new)
| 14 |
| Sec. 5.625. The Illinois Opportunity Special Projects | 15 |
| Fund.
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| Section 99. This Act takes effect upon becoming law.
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