SB0014eng 94TH GENERAL ASSEMBLY

SB0014 Engrossed LRB094 07034 AJO 37176 b

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 Opportunity Fund Act.

Section 5. Findings and purposes.

(a) The State of Illinois finds that the traditional means by which venture capital and private equity investors direct capital to Illinois markets does not adequately serve the State's needs. The lack of sufficient capital impairs the ability of the State to create jobs, new markets for goods and services, and sustainable economic growth throughout Illinois. The State of Illinois finds that venture capital and private equity investments traditionally have been an efficient means to create jobs, expand new markets for products and services, and generally encourage economic growth. The State of Illinois desires to strengthen the overall economy of the State by increasing the availability and delivery of venture capital and private equity investments for emerging, expanding, and distressed enterprises in Illinois, and to do so in a way that provides for financial returns to private investors.

(b) Furthermore, the State of Illinois finds that certain geographic areas and populations within the State have been subject to economic disparities and have lacked access to the private capital needed to create jobs and economic opportunities.

(c) Venture capital and private equity investment should be directed to geographic areas and populations within the State that have been subject to economic disparities, have lacked access to the private capital needed to create jobs and economic opportunities, and to sectors considered to be strategic industries for the State of Illinois.

(d) This Act has the mission of mobilizing private capital investment in a broad variety of venture capital and private equity investment funds in diversified industries and geographic regions of the State of Illinois. To achieve this mission, the General Assembly believes that it is necessary to retain the private sector culture of focusing on rate of return in the investing process. Therefore, this Act is intended to facilitate the establishment of the Illinois Opportunity Fund, seek private investment, and create interest in these investments by offering State credit enhancements that limit risk to private investors. This Act also has the mission of facilitating and enhancing the flow of venture capital and private equity into the State of Illinois and improving the infrastructure through which capital is delivered throughout the State including to those geographic areas and populations within the State that have been subject to economic disparities, so as to create jobs in Illinois, expand new markets for Illinois products and Illinois services, and to generally grow the Illinois economy. It is the goal and intent of this legislation to accomplish these missions in such a manner as to minimize any appropriations by the State of Illinois to effectuate these purposes.

Section 10. Definitions. In this Act, unless the context requires otherwise:

"DCEO" means Department of Commerce and Economic Opportunity, or its successor agency.

"Corporation" means the Illinois Capital Investment Corporation created by this Act.

"Certificate" means an assignable contract between DCEO and an investor in the Illinois Opportunity Fund under which the terms of the tax credits being issued for the benefit of the investor, or any assignee of the investor, as established by DCEO, are set forth.

"Person" means an individual, a corporation, a partnership, or any other lawfully organized entity, whether domiciled in Illinois or outside of Illinois.

"Illinois Capital Investment Corporation" means the private not-for-profit corporation established pursuant to this Act.

"Illinois Opportunity Fund" means the private for-profit fund established by the Illinois Capital Investment Corporation pursuant to this Act.

"Tax credits" means credits against taxes imposed pursuant to Section 201 of the Illinois Income Tax Act for any taxable year ending after December 31, 2009, and having such terms as are established by DCEO in accordance with Section 25 of this Act, including any contingencies on redemption.

"SBIC" means small business investment company within the meaning of the federal Small Business Investment Act of 1958.

"CDFI" and "CDVC". CDFI means a "community development financial institution" as defined in the Illinois Investment and Development Authority Act, and CDVC means community development venture capital, a type of CDFI specific to investing equity interests in Illinois firms with the dual goal of financial returns and economic and social benefit.

"Venture capital and private equity investment" includes private institutional, angel, incubator, mezzanine, seed/start-up stage, early stage, expansions stage, later stage, community development venture capital investments and management buyouts, recapitalization of existing companies, and other structured growth private equity transactions.

"Venture Capital and Private Equity Professional" means an individual with substantial professional experience, as a principal and not as an intermediary, managing venture capital and private equity funds, who has demonstrated a track record of successful performance that includes realized or exited investments. For purposes of this definition "principal" means an individual with an ownership interest in the venture capital and private equity fund which that individual manages or operates.

Section 15. Illinois Capital Investment Corporation.

(a) DCEO shall create the Illinois Capital Investment Corporation as a private not-for-profit corporation under the General Not For Profit Corporation Act of 1986 and not as a public corporation or instrumentality of the State. The corporation shall not enjoy any of the privileges nor be required to comply with any of the requirements of a State agency except as provided in this Act. Except as provided in this Act, nothing in this Act exempts the Corporation from the same requirements under State law that apply to other Corporations organized under the General Not For Profit Corporation Act of 1986. The Director or Acting Director of DCEO or his or her designee shall be the incorporator of the Corporation.

(b) The Corporation shall establish investment objectives and criteria for venture capital and private equity investment undertaken through the Illinois Opportunity Fund. In establishing these investment objectives and criteria, the Corporation shall consider whether the venture capital and private equity investment is reasonably anticipated (i) to be consistent with a private sector focus on rate of return in the investment process; (ii) to provide financial returns sufficient to meet any obligations to private investors undertaken by the Corporation in accordance with this Act; (iii) to attract investment from private markets in investments within the State of Illinois; and (iv) to result in the strengthening of the State's economy. In establishing these investment objectives and criteria, the Corporation shall consult with leaders in the private sector venture capital and private equity community, business, science, and government to identify strategic industries and sectors that offer the potential to create high quality and sustainable employment opportunities for Illinois residents and create domestic and global markets for the products and services of the investee companies. In addition, in establishing these objectives and criteria, the Corporation shall consider whether venture capital and private equity investment will occur through the Illinois Opportunity Fund in diverse geographies and among populations that have been subject to economic disparities and have lacked access to private capital within Illinois.

(c) DCEO shall assist the corporation in performing its duties, and undertake such other responsibilities as are set forth in this Act or as may be necessary or appropriate to give effect to the intent and purposes of this Act.

(d) The Corporation shall cooperate and coordinate with DCEO to fulfill the economic development policy of the State as established by the Governor and the General Assembly and implemented by DCEO.

(e) The Corporation shall have responsibility for organizing and overseeing the management of the Illinois Opportunity Fund and identifying and engaging a private fund manager or managers for the Illinois Opportunity Fund. The board of directors of the Corporation shall make investment decisions after considering the recommendations of the fund manager or managers. The Corporation shall receive investment returns from the Illinois Opportunity Fund and shall reinvest those funds in venture capital and private equity investments subject to the provisions of this Act.

(f) The Corporation shall exercise no governmental functions. Without limiting the authority of DCEO to issue tax credits pursuant to this Act under certificates that are binding on DCEO and the Illinois Department of Revenue, the obligations of the Corporation are not obligations of the State or any political subdivision of the State within the meaning of any Constitutional or statutory debt limitations, but are obligations of the Corporation payable solely and only from the corporation's funds. The Corporation shall itself have no authority to pledge the credit or taxing power of the State or make its debts payable out of any moneys except those of the Corporation.

(g) The Corporation shall consist of a board of directors of 7 members, who shall be appointed by the Governor with the advice and consent of the Senate. Upon appointment of the board of directors and every 2 years thereafter, the chairperson of the Corporation shall be selected by the Governor to serve as chairperson for 2 years. The Director or Acting Director of DCEO or his or her designee shall be one of the 7 members of the board of directors of the Corporation. A quorum of the board of directors must exist in order for the board to transact business. A quorum of the board of directors shall consist of a majority of directors then in office but in no event less than 3 directors. The appointment of the board of directors of the Corporation shall reflect the geographic and social diversity of the State. At least 3 members of the board of directors shall be Venture Capital and Private Equity Professionals. In making appointments to the Corporation's board of directors, it shall be considered whether (i) each candidate has meaningful experience reviewing, preparing, analyzing, or interpreting financial statements or has sophistication in financial matters generally, (ii) has meaningful experience in the supervision or management of venture capital or private equity investments, (iii) has meaningful experience operating or managing investments in businesses engaged in the industries or sectors targeted as candidates for investment by the Corporation, or (iv) has meaningful experience managing or selecting investments for institutional, seed, angel, mezzanine, or community development venture capital and private equity investment funds or SBIC's. At the time of appointment, the Governor shall designate 3 directors to serve until the third Monday of July 2006, one of whom shall be a Venture Capital and Private Equity Professional, and 3 directors to serve until the third Monday in July 2007, 2 of whom shall be Venture Capital and Private Equity Professionals. Thereafter, appointments shall be made for 3-year terms. A director shall serve until his or her successor shall be appointed and have qualified for office. The Governor may remove any director of the Corporation for cause.

(h) A conflict of interest shall be deemed to exist if the Corporation considers entering into a contract with or directly or indirectly sells goods or services to a director, officer, employee of the Board, or the fund manager of the Illinois Opportunity Fund, or any for-profit firm or corporation in which that director, officer, employee, the fund manager of the Illinois Opportunity Fund or any member of his or her immediate family is an officer, partner, or principal stockholder. Upon a showing that a conflict of interest exists, the director, officer, employee, or fund manager of the Illinois Opportunity Fund shall abstain from any discussion or decision making with respect to that contract or agreement, from voting on any matter pertaining to that contract or agreement, and from communicating with other Board members, officers, agents, or employees concerning that contract or agreement. In no event shall the board of directors make any investment in a fund in which a member of the board of directors is a general partner or a limited partner. The Corporation, its board of directors, its officers, its employees, and the fund manager of the Illinois Opportunity Fund are subject to the prohibitions contained in Section 5-55 of the State Officials and Employees Ethics Act.

(i) The board of directors of the Corporation shall establish a committee for the selection and evaluation of applicants for the position or positions of fund manager or managers for the Illinois Opportunity Fund. The board of directors of the Corporation shall also establish procedures for the selection and evaluation of applicants for the position or positions of fund manager for the Illinois Opportunity Fund. The committee shall include not more than 3 members of the board of directors of the Corporation, one of which shall be the Director of DCEO or his or her designee. The chairman shall appoint the remaining 2 members of the committee from the members of the board of directors of the Corporation and at least one of whom shall be a Venture Capital and Private Equity Professional. The committee shall receive and review applications for the position of fund manager of the Illinois Opportunity Fund. Any applicant selected to be a fund manager of the Illinois Opportunity Fund shall demonstrate substantial experience in the design, implementation, and management of institutional, seed, angel, mezzanine, or community development venture capital investment and private equity programs or of SBIC's and in capital formation. In reviewing applications, the committee shall consider each applicant's (i) senior level decision making experience in institutional, seed, angel, mezzanine, or community development venture capital and private equity investments or SBIC's investing, including whether the applicant has at least 5 years of such experience, (ii) quality of management, (iii) investment philosophy, (iv) plan for fundraising, (v) ties to Illinois including whether it has a meaningful physical presence in Illinois and knowledge and experience in working with the Illinois venture capital and private equity investment community, and (vi) prior investment fund results, including a track record with a substantial number of realized or exited investments, a time frame over which the track record was achieved, the number of investments the track record is based upon and the economic conditions existing during the time frame of the track record, and shall include a preference that each applicant's experience be financial (as with a formal investment fund) rather than strategic (such as mergers and acquisitions). Each applicant shall submit an investment plan for review by the Corporation, which shall describe the applicant's plan for seeking investment opportunities, evaluating and structuring investments fulfilling the investment objectives and criteria established by the Corporation, and achieving the financial and policy goals of this Act. Upon completion of this evaluation, the committee shall rank the applicants based on their qualifications and recommend a fund manager or managers for selection to the board of directors of the Corporation. The board of directors of the Corporation shall select an applicant or applicants based on the recommendations of the committee, and shall notify the applicant or applicants selected in writing.

(j) The Corporation may charge a fee to the Illinois Opportunity Fund, which shall be in addition to any fee payable by the Illinois Opportunity Fund to the fund manager or managers engaged. The fee payable to the Corporation shall be structured to cover the reasonable costs of the corporation in fulfilling its oversight functions and of DCEO in fulfilling its obligations under this Section and Section 25.

(k) The directors of the Corporation shall be compensated from the Illinois Opportunity Fund for direct expenses and mileage but shall not receive a director's fee or salary for their service as directors.

(l) The Corporation shall indemnify and defend members of the board of directors of the Corporation for any and all claims against the members of the board of directors arising from or related to the performance of their duties to the Corporation.

(m) The Corporation shall have the power to engage consultants, expend funds, invest funds, contract, bond or insure against loss, engage counsel, and perform any other act necessary to carry out its mission. Without limiting the foregoing, the Corporation may (i) borrow such funds as may be needed to accomplish its goals; (ii) open and manage bank and short-term investment accounts deemed necessary by its fund manager or managers; and (iii) expend funds to secure investment ratings. The Corporation shall not borrow more than the difference between the aggregate amount of contingent tax credits allowed and the aggregate amount of contingent tax credits issued pursuant to Section 25 of this Act. The Corporation shall engage a certified public accountant to conduct an annual audit of its financial condition and operations, including the Illinois Opportunity Fund.

(n) The directors of the Corporation shall adopt bylaws, policies, and procedures necessary to administer the affairs of the corporation.

(o) Upon the dissolution of the Corporation, any assets owned by it shall thereupon be distributed to the General Revenue Fund of the State of Illinois.

(p) The meetings of the Board of directors, and any committee thereof, are subject to the requirements of the Open Meetings Act. The Board of Directors, and any committees thereof, may hold a closed session to discuss and evaluate any information submitted by applicants to be a fund manager of the Illinois Opportunity Fund to the extent that information is exempt from disclosure under subsection 1(g) or 1(h) of Section 7 of the Freedom of Information Act. The procedural requirements of the Open Meetings Act shall apply to this closed session.

Section 16. Fund Managers of the Illinois Opportunity Fund.

(a) Once selected by the directors of the Corporation, the fund manager or managers of the Illinois Opportunity Fund shall research and select venture capital and private equity investment funds to recommend to the Corporation's board of directors.

(b) The fund manager or managers of the Illinois Opportunity Fund shall be compensated from funds raised for and investment returns from the Illinois Opportunity Fund at a level to be established by the directors of the Corporation and consistent with industry norms.

(c) No less than 90 days after a majority of the members of the Board of Directors of the Illinois Capital Investment Corporation are nominated by the Governor and approved by the Senate, the Board shall develop a policy adopted by resolution of the Board stating the Board's plan for the use of financial services corporations owned by minorities, females, and persons with disabilities, as defined under the Business Enterprise for Minorities, Females, and Persons with Disabilities Act. The Board shall provide a copy of this resolution to the Governor and the General Assembly upon its adoption.

(d) On December 31st of each year, the Board shall report to the General Assembly and the Governor regarding the use of financial services corporations owned by minorities, females, and persons with disabilities, as defined under the Business Enterprise for Minorities, Females, and Persons with Disabilities Act.

Section 20. Illinois Opportunity Fund.

(a) The Corporation shall organize the Illinois Opportunity Fund as a for-profit limited partnership or limited liability company under Illinois law pursuant to which the Corporation shall be the general partner or managing member, as the case may be.

(b) The Corporation is authorized to issue such interests or obligations that shall provide for a fixed or variable rate of return as established by the Corporation with the consent of DCEO. Consistent with this Act, DCEO may award contingent tax credits to investors in the Illinois Opportunity Fund that shall be redeemable if the Illinois Opportunity Fund fails to achieve results sufficient to repay the amounts invested by the investors and provide them with specified returns. Returns on investments generated by the Illinois Opportunity Fund in excess of amounts required to (i) repay the amounts invested by investors and provide them with specified returns, (ii) pay the operating costs of the Corporation, including but not limited to the agreed upon compensation of the fund manager or managers, and (iii) pay all or an agreed upon portion of DCEO's costs incurred in connection with the start-up of the Corporation and the Illinois Opportunity Fund and such other costs incurred by DCEO by providing assistance to the Corporation consistent with this Act.

(c) The Illinois Opportunity Fund shall operate as a fund of funds that invests principally in high-quality institutional, seed, angel, mezzanine, and community development venture capital funds and SBIC's that (i) maintain a meaningful physical presence in the State of Illinois, (ii) are managed by fund managers who commit that their funds will invest not less than the amount invested with them by the Illinois Opportunity Fund in businesses that are headquartered or maintain meaningful business operations in the State of Illinois, and (iii) meet the investment objectives and criteria established by the Corporation consistent with this Act.

(d) No more than 5% of the fully funded (as articulated in Section 25 of this Act) Illinois Opportunity Fund shall be invested in any single investment vehicle. No more than 33 1/3% of the fully funded (as articulated in Section 25 of this Act) Illinois Opportunity Fund shall be invested in any one calendar year. In no event shall the Illinois Opportunity Fund represent or compromise more than 25% of any single investment vehicle or fund.

(e) Beginning on September 1 of the next calendar year following the effective date of this Act and continuing on every subsequent September 1 thereafter, the Corporation shall provide to the General Assembly an annual report on its activities and on the performance of the Illinois Opportunity Fund.

(f) Twenty-five years after the creation of the Illinois Opportunity Fund by the Corporation, the assets of the Fund shall be liquidated following the payment of any obligations of the Corporation or the Illinois Opportunity Fund as authorized by this Act; any remaining assets shall be deposited into the General Revenue Fund of the State treasury.

Section 25. Contingent tax credits.

(a) There is authorized to be awarded an aggregate of $200,000,000 of contingent tax credits, reduced by the amount of indebtedness to the Corporation, if any, which may be allocated and issued by DCEO to investors in the Illinois Opportunity Fund. DCEO shall not be obligated to issue certificates equal to the full aggregate amount allowed by the State of Illinois, and it may elect to suspend or terminate the issuance of certificates at any time if it does not believe that the continued issuance of certificates will assist the State of Illinois in meeting the objectives of this Act. Tax credits may be redeemed in any year but only as and to the extent the Illinois Opportunity Fund is unable to return to its investors the amounts initially invested plus the rate of return specified in the interests or obligations authorized pursuant to Section 20(b) of this Act. Tax credits shall be redeemable not earlier than January 1, 2010 nor later than December 31, 2033 as may be specified in any certificate.

(b) The aggregate redemptions of tax credits issued by DCEO, however, shall not exceed $40,000,000 in any fiscal year of the State of Illinois.

(c) All tax credits shall be evidenced by certificates. DCEO shall establish and set forth in each certificate all terms and conditions, including the return of the investment principal and any fixed or variable rate of return, under which tax credits may be redeemed. In establishing the terms of any tax credits and issuing certificates, DCEO shall seek to promote the purposes of this Act. Tax credits may not be redeemed except in accordance with the terms of the certificate under which they have been issued. The certificates shall, upon proper issuance, be binding on DCEO and the Illinois Department of Revenue. The State of Illinois irrevocably pledges and covenants that, prior to the redemption of all certificates awarded under this Act, it will not take action to limit or restrict the ability of the holders of the certificates to redeem the certificates in the form of tax credits.

(d) Each certificate shall be redeemable in the form of a tax credit upon the date set forth in the certificate, which date shall not be earlier than January 1, 2010 nor later than December 31, 2033. The value of each certificate at redemption shall be its compounded value, equal to its face amount at the date of issuance plus an additional amount equal to the face amount multiplied by the rate of return established pursuant to Section 20(b) of this Act. This additional amount shall be calculated on an annual basis and added annually to the value of the certificate in determining the compounded value upon redemption. To the extent that the compounded value of any certificate upon redemption thereof exceeds the amount of applicable taxes imposed pursuant to Section 201 of the Illinois Income Tax Act, the amount of that excess may be taken as a tax credit in the subsequent tax year or years; provided that the compounded value of a certificate shall not be increased after its redemption date. DCEO and the Department of Revenue shall promulgate rules regarding tax credits, tax credit certificates, and the redemption thereof, and setting forth, among other matters, the procedures for the calculating of the compounded value of certificates and ability of a certificate holder to redeem a portion of the compounded value of any certificate in a year or years after the year of redemption. The rate of return on each certificate shall under no circumstances exceed the greater of 13 1/2% or 200% of the rate for the most recent date shown in 20 G.O. Bonds Index of Average Municipal Bond Yields as published in the most recent edition of the Bond Buyer published in New York, New York, (or any successor publication or index of long-term municipal bond yields then selected by DCEO) at the time the certificate is issued. Certificates may be redeemed only as and to the extent that the Illinois Opportunity Fund is unable to return to its investors the amounts initially invested plus the rate of return specified in the interests or obligations authorized pursuant to Section 20 (b) of this Act.

(e) Tax credits issued pursuant to this Section shall be freely transferable by their holders. DCEO shall, in conjunction with the Illinois Department of Revenue, develop a system for registration of any tax credits allowed or transferred pursuant to this Act that permits verification that any tax credit claimed upon a tax return is valid and properly taken in the year of claim, and that any transfers of the tax credit are made in accordance with the requirements of this Act.

(f) Tax credits allowed or transferred pursuant to this Act shall not be considered securities under any Illinois law relating to securities.

Section 30. Powers and effectiveness. Nothing contained in this Act is or shall be construed as a restriction or limitation upon any powers that DCEO might otherwise have under any other law of this State, and the provisions of this Act are cumulative to those powers. The provisions of this Act do and shall be construed to provide a complete, additional, and alternative method for the doing of the things authorized and shall be regarded as supplemental and additional to powers conferred by any other laws.

Section 35. Acceptable investments. Investments by designated investors in the Illinois Opportunity Fund shall be deemed permissible investments for State chartered banks and for domestic insurance companies under the appropriate laws of the State of Illinois.

Section 40. Illinois Opportunity Special Projects Fund. The Illinois Opportunity Special Projects Fund is created as a special fund in the State treasury. DCEO may accept disbursements from the Illinois Opportunity Fund for deposit into the Illinois Opportunity Special Projects Fund and expend those funds for the purposes set forth in Sections 15(g), 16(b), and 20(b) of this Act, subject to appropriation.

Section 100. The Illinois State Auditing Act is amended by changing Section 3-1 as follows:

(30 ILCS 5/3-1) (from Ch. 15, par. 303-1)

Sec. 3-1. Jurisdiction of Auditor General. The Auditor General has jurisdiction over all State agencies to make post audits and investigations authorized by or under this Act or the Constitution.

The Auditor General has jurisdiction over local government agencies and private agencies only:

(a) to make such post audits authorized by or under this Act as are necessary and incidental to a post audit of a State agency or of a program administered by a State agency involving public funds of the State, but this jurisdiction does not include any authority to review local governmental agencies in the obligation, receipt, expenditure or use of public funds of the State that are granted without limitation or condition imposed by law, other than the general limitation that such funds be used for public purposes;

(b) to make investigations authorized by or under this Act or the Constitution; and

(c) to make audits of the records of local government agencies to verify actual costs of state-mandated programs when directed to do so by the Legislative Audit Commission at the request of the State Board of Appeals under the State Mandates Act.

In addition to the foregoing, the Auditor General may conduct an audit of the Metropolitan Pier and Exposition Authority, the Regional Transportation Authority, the Suburban Bus Division, the Commuter Rail Division and the Chicago Transit Authority and any other subsidized carrier when authorized by the Legislative Audit Commission. Such audit may be a financial, management or program audit, or any combination thereof.

The audit shall determine whether they are operating in accordance with all applicable laws and regulations. Subject to the limitations of this Act, the Legislative Audit Commission may by resolution specify additional determinations to be included in the scope of the audit.

In addition to the foregoing, the Auditor General must also conduct a financial audit of the Illinois Sports Facilities Authority's expenditures of public funds in connection with the reconstruction, renovation, remodeling, extension, or improvement of all or substantially all of any existing "facility", as that term is defined in the Illinois Sports Facilities Authority Act.

The Auditor General may also conduct an audit, when authorized by the Legislative Audit Commission, of any hospital which receives 10% or more of its gross revenues from payments from the State of Illinois, Department of Public Aid, Medical Assistance Program.

The Auditor General is authorized to conduct financial and compliance audits of the Illinois Distance Learning Foundation and the Illinois Conservation Foundation.

As soon as practical after the effective date of this amendatory Act of 1995, the Auditor General shall conduct a compliance and management audit of the City of Chicago and any other entity with regard to the operation of Chicago O'Hare International Airport, Chicago Midway Airport and Merrill C. Meigs Field. The audit shall include, but not be limited to, an examination of revenues, expenses, and transfers of funds; purchasing and contracting policies and practices; staffing levels; and hiring practices and procedures. When completed, the audit required by this paragraph shall be distributed in accordance with Section 3-14.

The Auditor General shall conduct a financial and compliance and program audit of distributions from the Municipal Economic Development Fund during the immediately preceding calendar year pursuant to Section 8-403.1 of the Public Utilities Act at no cost to the city, village, or incorporated town that received the distributions.

The Auditor General must conduct an audit of the Health Facilities Planning Board pursuant to Section 19.5 of the Illinois Health Facilities Planning Act.

The Auditor General of the State of Illinois shall annually conduct or cause to be conducted a financial and compliance audit of the books and records of any county water commission organized pursuant to the Water Commission Act of 1985 and shall file a copy of the report of that audit with the Governor and the Legislative Audit Commission. The filed audit shall be open to the public for inspection. The cost of the audit shall be charged to the county water commission in accordance with Section 6z-27 of the State Finance Act. The county water commission shall make available to the Auditor General its books and records and any other documentation, whether in the possession of its trustees or other parties, necessary to conduct the audit required. These audit requirements apply only through July 1, 2007.

The Auditor General must conduct audits of the Rend Lake Conservancy District as provided in Section 25.5 of the River Conservancy Districts Act.

The Auditor General must conduct financial audits of the Southeastern Illinois Economic Development Authority as provided in Section 70 of the Southeastern Illinois Economic Development Authority Act.

The Auditor General must conduct financial and compliance audits of the Illinois Capital Investment Corporation and the Illinois Opportunity Fund.

(Source: P.A. 93-226, eff. 7-22-03; 93-259, eff. 7-22-03; 93-275, eff. 7-22-03; 93-968, eff. 8-20-04.)

Section 105. The State Finance Act is amended by adding Section 5.640 as follows:

(30 ILCS 105/5.640 new)

Sec. 5.640. The Illinois Opportunity Special Projects Fund.

Section 110. Severability. The provisions of this Act are severable under Section 1.31 of the Statute on Statutes.

Section 999. Effective date. This Act takes effect upon becoming law.