SB0773 99TH GENERAL ASSEMBLY

LRB099 08164 HLH 28315 b

99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
SB0773

Introduced 2/4/2015, by Sen. Michael Connelly

SYNOPSIS AS INTRODUCED:

New Act

Creates the Illinois Economic Development Corporation Act. Creates the Illinois Economic Development Corporation. Creates the board of directors of the Corporation and sets forth the membership of the board. Provides that the board shall develop and implement economic programs to provide business support and expertise and financial assistance to companies that are investing and creating jobs in Illinois and to support new business start-ups and business expansion and growth in Illinois. Sets forth the powers of the board. Creates the Illinois Small Business Development Center within the corporation to provide business counseling and educational programs developed at the local, regional, and State level to support Illinois small business creation and growth. Provides that the Center shall provide assistance, in the form of training, counseling, and information resources, to startup businesses and job-creator firms regarding the startup process. Provides that the board shall submit annual reports to the members of the General Assembly. Effective immediately.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

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 Economic Development Corporation Act.

Section 5. Definitions. As used in this Act, except as otherwise provided:

"Board" means the board of directors of the corporation.

"Center" means the Illinois Small Business Development Center.

"Corporation" means the Illinois Economic Development Corporation.

"Economic development program" means a program or activity having the primary purpose of encouraging the establishment and growth of business in this State, including the creation and retention of jobs.

Section 10. Illinois Economic Corporation; creation.

(a) The Illinois Economic Development Corporation is created. The board of directors of the corporation is created and shall consist of the Governor, who shall serve as chairperson of the board, and 8 members, at least 2 of whom are employed in the private sector. The members of the board shall be appointed by the Governor, with the advice and consent of the Senate, and shall serve at the pleasure of the Governor. The Director of Central Management Services and the Director of Revenue shall also serve as nonvoting members of the board.

(b) A majority of the voting members of the board constitutes a quorum for the purpose of conducting its business and exercising its powers and for all other purposes, notwithstanding the existence of vacancies. Action may be taken by the board upon a vote of a majority of the voting members present.

(c) An executive director shall be appointed by the Governor, with the advice and consent of the Senate, and shall serve at the pleasure of the Governor. The board may delegate to the executive director any powers and duties the board considers proper. The executive director shall receive compensation as determined by the board.

Section 15. Duties of the board.

(a) The board shall develop and implement economic programs to provide business support and expertise and financial assistance to companies that are investing and creating jobs in Illinois and to support new business start-ups and business expansion and growth in Illinois. The board may also develop and implement any other programs related to economic development in Illinois.

(b) For each program developed and implemented by the board, the board shall do all of the following:

(1) establish clear and measurable goals for the program that are tied to statutory or programmatic policy objectives;

(2) establish at least one quantifiable benchmark for each program goal described in paragraph (1);

(3) require that each recipient of a grant or loan under the program submit a report to the corporation; each contract with a recipient of a grant or loan under the program must specify the frequency and format of the report to be submitted to the corporation and the performance measures to be included in the report;

(4) establish a method for evaluating the projected results of the program with actual outcomes as determined by evaluating the information described in paragraphs (1) and (2); and

(5) annually and independently verify, from a sample of grants and loans, the accuracy of the information required to be reported under paragraph (3).

(c) The board shall require for each program developed and implemented by the board all of the following:

(1) that each recipient of a grant or loan under the program of at least $100,000 submit to the corporation a verified statement describing the recipient's expenditure of the grant or loan funds, signed by both an independent certified public accountant and the director or principal officer of the recipient to attest to the accuracy of the verified statement; the board shall also require the recipient of such a grant or loan to make available for inspection the documents supporting the verified statement; the board must include the requirement in the contract with grant or loan recipients; and

(2) that the board, if a recipient of a grant or loan under the program submits false or misleading information to the corporation or fails to comply with the terms of a contract entered into with the corporation, without providing satisfactory explanation for the noncompliance, do all of the following:

(A) recoup payments made to the recipient;

(B) withhold future payments to be made to the recipient; and

(C) impose a financial penalty on the recipient.

Section 20. Powers of the board. The board shall have all the powers necessary or convenient to carry out the purposes and provisions of this Act. In addition to all other powers granted the board under this Act, the board may specifically:

(1) adopt, amend, and repeal any bylaws, policies, and procedures for the regulation of its affairs and the conduct of its business;

(2) have a seal and alter the seal at pleasure;

(3) maintain an office;

(4) sue and be sued;

(5) accept gifts, grants, loans, or other contributions from private or public sources;

(6) establish the corporation's annual budget and monitor the fiscal management of the corporation;

(7) execute contracts and other instruments required for the operation of the corporation;

(8) employ any officers, agents, and employees that it may require and determine their qualifications, duties, and compensation;

(9) issue notes, bonds, and any other obligations;

(10) make loans and provide grants;

(11) incur debt; and

(12) procure liability insurance.

Section 25. Illinois Small Business Development Center.

(a) The Illinois Small Business Development Center is created within the corporation to provide business counseling and educational programs developed at the local, regional, and State level to support Illinois small business creation and growth. The Center shall be administered by an advisory council.

(b) The advisory council is created and shall consist of 7 members appointed by the board. The members shall be persons of recognized expertise and ability in the field of small business creation and growth. A majority of the members of the advisory council constitutes a quorum for the purpose of conducting its business and exercising its powers and for all other purposes, notwithstanding the existence of vacancies. Action may be taken by the advisory council upon a vote of a majority of the members present.

(c) The Center shall provide assistance, in the form of training, counseling, and information resources, to startup businesses and job-creator firms regarding the following separate steps in the startup process:

(1) executing and filing articles of incorporation, articles of organization, or any other papers required to form a business;

(2) building management skills; and

(3) developing a market analysis.

Section 30. Administrative support.

(a) If requested by the board, the Department of Commerce and Economic Opportunity shall provide staff or other resources to assist the board in carrying out the purposes and provisions of this Act.

(b) To the extent practical, the Department of Commerce and Economic Opportunity and the board shall seek to coordinate their economic development programs.

Section 35. Liability limited. Neither the State nor any political subdivision of the State, nor any officer, employee, or agent of the State or a political subdivision of the State who is acting within the scope of employment or agency, is liable for any debt, obligation, act, or omission of the corporation.

Section 40. Annual reports.

(a) Annually, by January 1, the board shall submit to the members of the General Assembly a report identifying the economic development projects that the board intends to develop and implement during the current calendar year.

(b) Annually, no later than October l, the board shall submit to the members of the General Assembly a report for the previous fiscal year on each of the economic development programs of the corporation that contains all of the following:

(1) a description of each program;

(2) a comparison of expected and actual program outcomes;

(3) the number of grants made under the program;

(4) the number of loans made under the program;

(5) the amount of each grant and loan made under the program;

(6) the recipient of each grant or loan made under the program;

(7) the sum total of all grants and loans awarded to and received by each recipient under the program; and

(8) any recommended changes to the program.

(c) The board shall make readily accessible to the public on its official Internet website the information required under subsection (b).

Section 99. Effective date. This Act takes effect upon becoming law.