Section 555.10  Purpose

 

Section 605-707 of the Civil Administrative Code of Illinois (International Tourism Program) [20 ILCS 605/605-707] authorizes the Department of Commerce and Economic Opportunity to award grants to and work in cooperation with certified local tourism and convention bureaus and regional tourism development organizations to develop, coordinate and promote international tourism efforts.

 

(Source:  Amended at 38 Ill. Reg. 3577, effective January 23, 2014)

 

Section 555.20  Definitions

 

The following definitions are applicable to this Part:

 

            "Applicant": means a certified local tourism and convention bureau or a certified regional tourism development organization submitting an Application for Program Grant Funds as provided for under the Statute.

 

            "Application": means a written  request for Program Grant Funds, containing and  including the required information and/or attachments.

 

"Approved Expenditures": means costs approved to be expended for the completion of the Project.

 

            "Department": means the Department of Commerce and Economic Opportunity.

 

            "Director": means the Director of the Department of Commerce and Economic Opportunity.

 

            "Eligible Expenditure": means costs that are considered appropriate and, if a grant is awarded, are costs approved by the Department for funding.  Examples of Eligible Expenditures are set forth in Section 555.40(a).

 

            "Fiscal Year": means the period from July 1 of any given year through June 30 of the subsequent year.

 

"Grant Agreement": means a written document executed between the Grantee and the Department setting forth the obligations and rights of the parties, describing the purpose of the grant, identifying the manner in which Grant Funds will be disbursed, specifying the grant term during which Grant Funds shall be expended, and requiring unobligated and/or unspent Grant Funds to be returned to the Department.

 

"Grant Amount" or "Grant Funds": means a monetary amount that the Department awarded to a Grantee to be expended on Approved Expenditures.

 

            "Grantee" means an Applicant that has been awarded a grant under the  Program based on submission of its Application.

 

"Ineligible Expenditures": means costs that are not eligible for consideration for funding and cannot be paid for with Grant Funds and Matching Funds.  Examples of Ineligible Expenditures are set forth in Section 555.40(b).

 

"In-kind Contribution" means noncash contributions necessary to complete the Project for which the cash value is easily documented (i.e., donated labor, equipment, supplies and materials) and are otherwise eligible grant and match expenditures as set forth in Sections 555.40 and 555.70.

 

"Illinois Office of Tourism": means the division of the Department that has the delegated authority to perform all administrative functions related to the Statute.

 

            "International": means any country other than the United States.

 

"Local Convention and Tourism Bureau": means a not-for-profit entity or unit of local government that meets the certification requirements as set forth in 14 Ill. Adm. Code 550.40 and is certified by the Department.

 

            "Matching Funds": means the portion of the Total Project Cost that is required to be provided by the Grantee through cash expenditures and/or In-kind Contributions.

 

            "Program": means the International Tourism Grant Program.

 

            "Project": means the activities that were described by the Applicant in its Application and approved by the Department for funding.

 

"Regional Tourism Development Organization": means a not-for-profit entity that meets the certification requirements set forth in the Regional Tourism Development Organization Program rules (14 Ill. Adm. Code 515.60) and is certified by the Department.

 

            "Statute": means Section 605-707 of the Civil Administrative Code of Illinois, which is the statutory authority for the Program [20 ILCS 605/605-707].

 

            "Total Project Cost": means all necessary and reasonable Eligible Expenditures required to complete the Project as identified in the budget of the Grant Agreement.

 

(Source:  Amended at 38 Ill. Reg. 3577, effective January 23, 2014)

 

Section 555.30  Eligible Applicants

 

Certified Local Tourism and Convention Bureaus or Regional Tourism Development Organizations certified   by the Department  may apply for Program funding.

 

(Source:  Amended at 38 Ill. Reg. 3577, effective January 23, 2014)

 

Section 555.40  Eligible Use of Funds

 

Expenditures and activities for which grant funds can be utilized by Grantees located outside Chicago include, but are not limited to, the following:

 

a)         Eligible Expenditures, including, but not limited to,  brochures that target international markets, advertising, web site development and maintenance, in-country trade representations, familiarization tours, trade shows, sales missions, translation services, research, promotional items, technical assistance, training, association fees, travel expenses, and salaries for international program staff performing duties set forth in the Grant Agreement's scope of work.

 

b)         Ineligible Expenditures include, but are not limited to, the purchase of equipment, administrative expenses, salaries not associated with international activities and the purchase of alcoholic beverages.

 

(Source:  Amended at 38 Ill. Reg. 3577, effective January 23, 2014)

 

Section 555.50  Form of Application

 

a)         All communications relating to the Application procedures defined in Section 555.60 shall be addressed to the International Tourism Grant Program Manager and sent to: Illinois Department of Commerce and Economic Opportunity, Illinois Office of Tourism, 100 W. Randolph Street, Suite 3-400, Chicago, Illinois 60601.

 

b)         An Application shall be typed in the current approved format provided by the Department, which shall be sent to an eligible Applicant upon request.

 

c)         An Application shall contain one original and 6 copies.

 

d)         An Application shall include supporting documents and attachments under a single cover.

 

(Source:  Amended at 38 Ill. Reg. 3577, effective January 23, 2014)

 

Section 555.60  Application Procedure

 

a)         Applications for funding under this Program must be received no less than 60 days prior to the beginning of the Department's Fiscal Year or as otherwise determined by the Department.

 

b)         An Application will be considered delivered and submitted on the date it is postmarked or hand delivered to the Illinois Office of Tourism's Chicago office (see Section 555.50) .

 

c)         Within 30 business days after the Department receives the Application, the International Tourism Program Manager shall notify the Applicant whether, after a brief initial review, the Application and attachments, if any, are complete.  This notice is not in any way an acknowledgment by the Department as to the adequacy of the substance of the Application.  If the Application and attachments are incomplete, the Applicant shall be notified of the deficiencies. The Applicant will then have 20 business days to cure any deficiencies.  In the event the Applicant fails to cure all deficiencies within the 20 business days, the Application shall be considered null and void and returned to the Applicant.

 

d)         Within 90 days from the date an Application is determined to be complete, the International Tourism Grant Program Manager shall notify the Applicant whether the Application has been approved or rejected.  If the Application has been rejected, the program manager shall state the reasons for the determination.

 

(Source:  Amended at 38 Ill. Reg. 3577, effective January 23, 2014)

 

Section 555.70  Matching Funds

 

a)         The Grantee shall provide Matching Funds to be expended towards the Total Project Cost that are:

 

1)         Under the control of the Grantee.  For purposes of the Grant, control shall mean that the Grantee can successfully demonstrate the following control and accountability requirements:

 

A)        The Grantee's chief executive officer maintains responsibility for establishing review and approval policies and procedures with respect to the Grantee's daily operations; and

 

B)        The Grantee's chief executive officer has approval authority for expenses charged to the Grantee's operating budget and approval over the Grantee expenses attributable to the Grant.  Within this requirement, the Grantee's chief executive officer must be the person that reviews and approves the payment of invoices related to the grant and match expenditures.

 

2)         Identified  in the Applicant's grant application for the applicable Fiscal Year.

 

3)         Expended during the applicable grant award period.

 

4)         Supported by records of deposit and documentation of Eligible Expenditures.

 

5)         Necessary and irrevocably obligated and used towards completion of the Project.

 

b)         Each Grantee shall provide matching funds equal to no less than 50% of the Grant Amount.  If Grantee fails to match any portion of the grant award in a given Fiscal Year, that portion of the grant shall be refunded to the Department in accordance with the terms of the Grant Agreement.  In-kind contributions shall not exceed 25% of Matching Funds.

 

c)         Allowable Matching Funds include:

 

1)         Local hotel/motel taxes;

 

2)         Membership dues;

 

3)         Interest earned on local monies and Grant Funds;

 

4)         Cash contributions;

 

5)         Federal dollars deposited directly to the Grantee for tourism promotion purposes that do not require a match; and

 

6)         In-kind Contributions necessary to complete the Project.  In-kind Contributions shall not exceed 25% of the match requirement.

 

d)         Ineligible Match:  The following monies shall not be considered Matching Funds and may not be used as a match for Grant Funds:

 

1)         Costs incurred or funds expended outside the grant term identified in the Grant Agreement unless those costs are approved by the Director as otherwise being compliant with this Part and consistent with the purposes of the Statute;

 

2)         Funds from any other Department funded grant program, regardless of whether the other grant funds were awarded and expended to further the Project;

 

3)         Funds used to match any other State and/or federal grants;

 

4)         Penalties, fines, late payment fees or interest charges; and

 

5)         Purchase of alcohol beverages.

 

(Source:  Amended at 38 Ill. Reg. 3577, effective January 23, 2014)

 

Section 555.80  Computation of Time

 

Computation of any period of time prescribed by this Part shall begin with the first business day following the day on which the act, event or development initiating that period of time occurs, and shall run until the end of the last day or the next business day if the last day is a Saturday, Sunday, federal or State holiday.  Timeliness shall be deemed the date of postmark or the date of hand delivery.

 

(Source:  Amended at 38 Ill. Reg. 3577, effective January 23, 2014)

 

Section 555.90  Evaluation and Selection Process

 

a)         The Department's internal review committee shall evaluate each Application.  The criteria used in determining whether an Application will be considered for a grant award includes, but is not limited to, the potential to increase overnight stays in Illinois and/or demonstrate the potential to develop international marketing materials or efforts as described in Section 555.40.  Each question will be scored using a rating system of 1 through 10, with 10 being the highest possible score per question, with a maximum possible score of 100.  The criteria used in determining whether an Application will be considered for funding include the following:

 

1)         To what extent does the Project support and augment the international tourism efforts of the Illinois Bureau of Tourism?

 

2)         To what extent is the Project part of a marketing plan based upon research to increase international visitors to the area?

 

3)         To what extent does the Project have potential interest, or show existing interest, for the chosen international market?

 

4)         To what extent does the Project include repeat marketing efforts and to what extent do the results from those efforts justify repeat funding?

 

5)         To what extent does the Project include adequate tracking and evaluation measures?

 

6)         To what extent are there measurable ways to evaluate the Project's effectiveness and return on investment?

 

7)         To what extent will the Project have a significant impact on the area's overall tourism efforts?

 

8)         To what extent will the Project have a significant impact on the State's overall tourism efforts?

 

9)         To what extent is the destination visitor-ready for international visitors?

 

10)        The effectiveness of the applicant's overall efforts.

 

b)         The Department's internal review committee's scores are averaged to obtain the Application's final score.  An Application's final score must be at least 50 of 100 possible points to be considered eligible for funding.  The internal review committee shall forward all eligible Applications, together with its recommendations, to the Director for final review and determination.  During the final review process, the Director will determine whether an eligible Application is awarded a grant.

 

(Source:  Amended at 38 Ill. Reg. 3577, effective January 23, 2014)

 

Section 555.100  Allocation of Appropriations

 

Annual appropriations made by the General Assembly to the Department for the purpose of awarding grants under this Program may be used by the Department in any county in the State of Illinois.

 

a)         All of the amounts deposited into the Fund in Fiscal Year 2012 and thereafter shall be used for administrative expenses and grants authorized under the Statute and development of international tourism in areas outside of Chicago, of which not less than $1,000,000 shall be used annually to make grants to convention and tourism bureaus in cities other than Chicago that demonstrate their international tourism appeal and request to develop or expand their international tourism marketing program, and may also be used to provide grants for the development of or the enhancement of international tourism attractions. [20 ILCS 605/605-707].

 

b)         If sufficient local funds cannot be raised to match any grant issued under this Part, the appropriation may be allocated in whole or in part to any Applicants able to qualify for a grant or may be used by the Department to promote international tourism to the State of Illinois.

 

(Source:  Amended at 38 Ill. Reg. 3577, effective January 23, 2014)

 

Section 555.110  Funding Limitation

 

The Department shall provide Grant Funds not to exceed 50% of the Total Project Cost. Except that, during Fiscal Year 2013, the Department shall provide Grant Funds not to exceed two-thirds of the Total Project Cost.

 

(Source:  Amended at 38 Ill. Reg. 3577, effective January 23, 2014)

 

Section 555.120  Grant Agreement

 

a)         When an Application has been approved for funding, a grant award shall be made and the Grantee and the Department shall execute a Grant Agreement.  If the Project is initiated and costs are incurred before the Department approves the Application, the Department bears no responsibility for those costs in the event the Application is denied or the grant is funded at less than the amount requested.

 

b)         The Agreement shall contain substantive provisions including, but not limited to, the following:

 

1)         A recitation of legal authority pursuant to which the agreement is made;

 

2)         An identification of the Project scope and schedule, and the work or services to be performed or conducted by the Grantee;

 

3)         An identification of the Grant Amount or grant award;

 

4)         The condition and manner by which the Department shall pay/distribute the grant award, which is at all times subject to sufficient annual appropriations by the Illinois General Assembly;

 

5)         The irrevocable promise of the Grantee to pay the local match of the Total Project Cost;

 

6)         A promise by the Grantee not to assign or transfer any of its rights, duties or obligations without the Department's writtenacknowledgment;

 

7)         A promise by the Grantee not to amend the Grant Agreement without the written consent of the Department.  Failure to do so will result in a cost disallowance. The Project must be completed by the completion date on the notice of grant award, unless a written request for an extension is submitted no later than 30 days prior to the award completion date and thereafter approved by the Department;

 

8)         A covenant that the Grantee shall expend the grant award and any accrued interest only for the purposes of the project as stated in the Application and approved by the Department;

 

9)         A covenant that the Grantee shall refrain from entering into any written or oral agreement or understanding with any party that might be construed as an obligation of the State of Illinois or the Department for the payment of any funds under the Program; and

 

10)       A covenant that the Grantee agrees to acknowledge the Department's participation in the Project by displaying the Department's current logo and/or providing a statement that identifies the Project as being developed and/or funded in cooperation with the Illinois Office of Tourism.  Grantee's failure to properly use the Department's current logo (e.g., size, placement, etc.) or failure to include the acknowledgment/recognition statement will result in a 10% deduction of the Total Project Cost.  Failure to include the logo or acknowledgment/recognition statement will result in the entire Project being disallowed.

 

(Source:  Amended at 38 Ill. Reg. 3577, effective January 23, 2014)

 

Section 555.130  Grant Administrative Requirements

 

a)         Grant Termination

 

1)       Termination Due to Loss of Funding. In the absence of State funding for a Fiscal Year, all grants for that year will be terminated in full.  In the event of a partial loss of State funding, the Department will make proportionate cuts to all Grants.  In the event the Department suffers such a loss of funding in full or in part, the Department will give the Grantee written notice setting forth the effective date of full or partial termination or, if a change in funding is required, setting forth the change in funding and changes in the approved budget.

 

2)         Termination for Cause

 

A)        If the Department determines that the Grantee failed to comply with the terms and conditions of the Grant Agreement or this Part, the Department may terminate the grant in whole or in part at any time before the date of completion.  Circumstances that will result in the termination of a grant include, but are not limited to: consistent failure to submit required reports; failure to maintain required books and records; evidence of fraud and/or abuse; and consistent failure to meet performance standards.  These circumstances are further explained in the Grant Agreement.

 

B)        The Department shall notify the Grantee in writing, within 10 working days after the determination to terminate is made, of the reasons for termination and the effective termination date.  Distribution of Grant Funds or recovery of Grant Funds shall be made in accordance with the legal rights and liabilities in the Grant Agreement and the Illinois Grant Funds Recovery Act [30 ILCS 705].

 

3)       Termination by Agreement.  The Department and the Grantee may terminate the grant in whole or in part if the Department and the Grantee agree that continuation of the Program objectives would not produce beneficial results commensurate with the future expenditure of Grant Funds.  The Department and the Grantee shall agree upon termination conditions, including the effective date and, in case of partial termination, the portion of funding to be terminated.  The Grantee shall not incur new obligations for the terminated portion of the grant after the effective date, and shall cancel as many outstanding obligations as possible.  The Department shall allow full credit to the Grantee for the Department's share of the noncancelable obligations properly incurred by the Grantee prior to termination.

 

b)         Interest on Grant Funds.  In accordance with Section 10 of the Illinois Grant Funds Recovery Act, all interest earned on Grant Funds held by the Grantee under the grant shall become part of the grant when earned.  Any interest earned under the grant and not expended as grant principal during the term of the grant shall be returned to the Department as directed by the grant close-out process described in subsection (c).

 

c)         Grant Close-out.  In accordance with Section 5 of the Illinois Grant Funds Recovery Act, Grant Funds not expended or legally obligated, including any interest, remaining at the end of the grant term or upon termination of the grant shall be returned to the Department within 45 days after the end of the grant term or termination.

 

d)         Audits.  A Grantee shall be responsible for securing an audit for any grant award exceeding $500,000.  Additionally, an audit may be required when certain risk conditions exist, including, but not limited to, a negative compliance history and previous material audit findings.  The audit shall be performed by an independent certified public accountant, licensed by the authority of the State of Illinois pursuant to the Illinois Public Accounting Act [225 ILCS 450].  The audit shall be conducted in accordance with current generally accepted auditing standards as contained in the most current publication entitled AICPA Professional Standards, American Institute of Certified Public Accountants, 1211 Avenue of the Americas, New York NY 10036.

 

e)         Special Audits.  The Department reserves the right to conduct special audits, including but not limited to an agency wide audit of grant funds expended under any of the Department's grant programs.  A special audit shall be conducted during normal working hours (8:30 a.m. to 5:00 p.m.) with at least 24 hours notice.

 

f)         Monitoring and Evaluation.  Grantee shall permit any agency authorized by the Department, the Office of Inspector General, the Auditor General of the State of Illinois, the Illinois Attorney General, or any of their duly authorized representatives, upon presentation of credentials, in accordance with the constitutional limitation on administrative searches, to have full access to and the right to examine any of the Grantee's documents, papers and records involving transactions related to a grant awarded by the Department.  Once the Department concludes its monitoring activities, the Department will notify the Grantee of the Department's determination and findings, if any.  If a determination contains a finding of noncompliance, the Grantee will be allowed an opportunity to cure any and all noncompliance issues.  If any noncompliance issues cannot be resolved, the Department will issue a final determination requesting the Grantee to repay any funds that the Department determined to have been spent in violation of the Grant Agreement.  In the event the noncompliance issue pertains to a grant covenant that does not have a corresponding expenditure amount, the Department has the discretion to disallow all Grant Funds for the noncompliance.  If the Grantee fails to comply with the Department's final determination, the Department shall issue a final notice to the Grantee providing it the opportunity to invoke its rights under the Illinois Grant Funds Recovery Act.

 

g)         Complaint Process.  An administrative hearing may be initiated by an Applicant or Grantee by serving a petition for hearing on the Department.  The Department may initiate the administrative hearing process by serving a notice of charges on the Grantee.  In any case, the Applicant, Grantee or Department shall follow the Department's administrative hearing rules set forth in 56 Ill. Adm. Code 2605.

 

h)         Certifications.  The Grantee shall certify that it has not been barred from contracting with a unit of local government or with any agency of the State of Illinois as a result of a violation of Sections 33E-3 or 33E-4 of the Criminal Code of 1961 (Bid-rigging or bid rotating) [720 ILCS 5/33E-3 or 33E-4].

 

i)          Reports.  The Grantee shall submit reports on the Project's financial status and outcome/results, as required by the Department in the Grant Agreement.  The Grantee's failure to comply with any reporting requirements will be considered a violation of the Grant Agreement and the Department may seek recovery of all Grant Funds as described in subsection (f). 

 

(Source:  Amended at 38 Ill. Reg. 3577, effective January 23, 2014)