Rep. Barbara Flynn Currie

Filed: 6/22/2015





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2    AMENDMENT NO. ______. Amend House Bill 574 by replacing
3everything after the enacting clause with the following:
"Article I.

5    Section 1-1. Short title. This Article may be cited as the
6Illinois Business and Economic Development Partnership Act.
7    Section 1-5. Findings. The General Assembly finds that
8targeted efforts to promote and foster business growth, job
9creation, and tourism are necessary for economic growth in
10Illinois to provide more prosperity and opportunities for
11Illinois residents. As both the public and private sectors have
12a shared interest in fostering the economic vitality of the
13State, it is the purpose of this Act to implement economic
14development policy in the State by means of collaboration
15between the government and a not-for-profit corporation.



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Article II.

2    Section 2-1. Short title. This Article may be cited as the
3Illinois Business and Economic Development Corporation Act.
4References in this Article to "this Act" mean this Article.
5    Section 2-5. Definitions. For the purposes of this Act:
6    "Board" means the board of directors of the corporation.
7    "Chief Executive Officer" means the chief executive
8officer of the corporation.
9    "Conflict party" means a director, officer, or employee of
10the corporation; the spouse of a director, officer, or employee
11of the corporation; or an immediate family member of a
12director, officer, or employee of the corporation residing in
13the same residence as the director, officer or employee.
14    "Corporation" means the Illinois Business and Economic
15Development Corporation incorporated by the Department
16pursuant to Section 2-10.
17    "Department" means the Illinois Department of Commerce and
18Economic Opportunity.
19    "Director" means the Director of Commerce and Economic
21    Section 2-10. Creation of the Illinois Business and
22Economic Development Corporation.



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1    (a) The General Assembly authorizes the Department, in
2accordance with Section 10 of the State Agency Entity Creation
3Act, to incorporate the Illinois Business and Economic
4Development Corporation as a not-for-profit corporation
5pursuant to the General Not For Profit Corporation Act of 1986.
6    (b) The purpose of the corporation shall be to promote the
7economic development and well-being of the State. The
8corporation shall focus on business development, small and
9minority-owned business incubation, trade and investment,
10tourism and film. The corporation shall:
11        (1) develop best practices for economic development in
12    consultation with the Department;
13        (2) enter into grant agreements with the Department and
14    sub-grants with other persons and entities;
15        (3) maintain and develop economic data and research
16    that is beneficial to business development in the State;
17        (4) maintain and develop information about specific
18    statewide and regional economic incentives and benefits
19    that may be available to a business to expand within, or
20    relocate to, the State; and provide such information to
21    prospective businesses;
22        (5) formulate and pursue programs and local
23    partnerships for encouraging the location of new
24    businesses in the State and for retaining and fostering the
25    growth of existing businesses;
26        (6) negotiate tax incentives with private businesses,



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1    subject to Department approval; and
2        (7) cooperate with and provide information to State
3    agencies, local governments, community colleges, and State
4    universities on economic development matters.
5    (c) For the purposes described in this Act, the corporation
6shall collaborate with the Department; with other State
7agencies, authorities, boards, and commissions whose programs
8and activities significantly affect economic activity in the
9State as appropriate; and with local and regional economic
10development organizations, local elected officials,
11community-based organizations, service delivery providers, and
12other organizations whose programs and activities
13significantly affect economic activity. The Department and
14each other State agency, authority, board, or commission with
15which the corporation seeks to collaborate shall assist the
16corporation in carrying out its purposes as directed by the
18    (d) The corporation shall not be considered, in whole or in
19part, an agency, political subdivision, or instrumentality of
20the State. The corporation shall not exercise any sovereign
21power of the State. Employees and officers of the corporation
22shall not be considered employees or officers of the State or
23subject to Personnel Code or other laws applicable to State
24employees and officers. The corporation does not have authority
25to pledge the credit of the State; the State shall not be
26liable for the debts or obligations of the corporation; and all



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1debts and obligations of the corporation shall be payable
2solely from the corporation's funds.
3    (e) The corporation shall have such powers, rights, and
4obligations as are conferred upon a not-for-profit corporation
5under the General Not For Profit Corporation Act of 1986,
6including to accept grants, loans, or other amounts from the
7State, the federal government, or other persons; to enter into
8contracts; and to employ personnel and other agents.
9    (f) The corporation shall be established, maintained, and
10operated so that donations and bequests to the corporation
11qualify as tax deductible under State income tax laws and
12Section 501(c)(3) of the Internal Revenue Code.
13        (g) The articles of incorporation and bylaws of the
14    corporation shall provide for (1) governance and efficient
15    management of the corporation, (2) a board of directors
16    satisfying the requirements of Section 2-15, (3) a conflict
17    of interest policy satisfying the requirements of Section
18    2-30, and (4) financial operations of the corporation,
19    including the authority to receive and expend funds from
20    public and private sources and to use its property, money,
21    and other resources for the purposes of the corporation.
22    Section 2-15. Board of Directors and Chief Executive
23Officer of the corporation.
24    (a) The affairs of the corporation shall be managed by or
25under the direction of the board of directors of the



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2    (b) The board shall comprise 16 directors as follows:
3        (1) The Governor or his or designee shall be a director
4    ex officio and serve as chairperson of the board.
5        (2) The Governor shall appoint 11 directors, including
6    (i) one director with professional experience in finance,
7    insurance, or investment banking, (ii) one director with
8    professional experience in small business development,
9    (iii) one director with professional experience in the
10    tourism or hospitality industry, and (iv) eight directors
11    who are actively employed in the private, for-profit sector
12    or who otherwise have substantial experience in economic
13    development. Of those eight directors described in clause
14    (iv), there shall be at least one director from each
15    industry cluster as identified to the Governor by the
16    Director. Of the 11 directors appointed pursuant to this
17    paragraph, at least 4 directors shall be representatives of
18    minority-owned and women-owned businesses.
19        (3) The Speaker and Minority Leader of the House of
20    Representatives and the President and Minority Leader of
21    the Senate each shall appoint one director who is employed
22    in, or retired from employment in, a private business,
23    not-for-profit organization, or academic organization.
24    (c) To facilitate communication and cooperation between
25the corporation and State agencies involved in economic
26development, the director or head of each of the following



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1agencies shall serve as a non-voting, non-director member of
2the board: Department of Commerce and Economic Opportunity,
3Department of Agriculture, Department of Natural Resources,
4Department of Financial and Professional Regulation, Illinois
5Finance Authority, Department of Revenue, Department of Labor,
6Veterans' Affairs, Central Management Services, Illinois
7Environmental Protection Agency and Department of Employment
9    (d) Except for the Governor or his or her designee, each
10director shall serve a term of three years. The articles of
11incorporation or bylaws shall divide the other 15 directors
12into three equal classes, with the terms of one class of
13directors expiring each year.
14    (e) The Governor shall select an initial Chief Executive
15Officer of the corporation, subject to confirmation by a
16majority of members of the board. After the initial Chief
17Executive Officer, each subsequent Chief Executive Officer
18shall be selected and confirmed by a majority vote of the
20    Section 2-20. Office of Economic Development and Tourism.
21Within the Department, there shall be created a new division
22called the Office of Economic Development and Tourism. That
23office shall collaborate with the corporation and be
24responsible for the following functions of the Department:
25business development; entrepreneurship, innovation, and



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1technology; trade and investment; and tourism and film. The
2director of that office shall report directly to the Director.
3    Section 2-25. Transparency and accountability.
4    (a) Within the Office of the Director there is created a
5new division called the Office of Accountability and
6Transparency. Such division shall be responsible for
7monitoring all grants made by the Department; for ensuring
8compliance by the Department and its grantees, including the
9corporation, with all applicable laws and grant terms and
10conditions; and for ensuring transparency in the Department's
11grant-making and other activities.
12    (b) With respect to any grant agreement entered into
13between the corporation and the Department, the corporation
14shall comply with the following provisions:
15        (1) For the purposes of the Freedom of Information Act,
16    the corporation shall be considered a contractor
17    performing a governmental function on behalf of the
18    Department in accordance with subsection (2) of Section 7
19    of such Act, notwithstanding whether the corporation
20    receives a grant from or enters into a contract with the
21    Department.
22        (2) The corporation shall post copies of minutes of its
23    board meetings on its publicly-accessible website. Any
24    redactions shall be limited to information exempt from
25    disclosure pursuant to subsection (1) of Section 7 of the



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1    Freedom of Information Act or other applicable law.
2        (3) The corporation shall post copies of all final
3    grant agreements and tax incentives on its
4    publicly-accessible website. Any redactions shall be
5    limited to information exempt from disclosure pursuant to
6    subsection (1) of Section 7 of the Freedom of Information
7    Act or other applicable law.
8        (4) The corporation shall develop procedures,
9    standards, and objectives for evaluating all sub-grant
10    applicants and sub-grants awarded to ensure that State
11    funds spent by the corporation and its sub-grantees
12    optimize return on investment for Illinois taxpayers. Such
13    procedures, standards, and objectives shall be disclosed
14    on the corporation's publicly-accessibly website.
15        (5) The corporation shall assess and report its efforts
16    and results to the public and the Department's Office of
17    Accountability and Transparency. In addition, the
18    corporation shall comply with all grant monitoring
19    procedures issued by the Department for the monitoring of
20    grants of State and federal funds.
21        (6) The corporation shall conduct an annual audit
22    performed by a certified public accountant in accordance
23    with generally accepted accounting procedures. Such audit
24    shall be filed with the Department's Office of
25    Accountability and Transparency and made available to the
26    public.



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1        (7) The corporation shall be subject to bi-annual
2    audits by the Auditor General.
3        (8) The Corporation shall submit an annual report to
4    the Governor, the General Assembly, and the Department's
5    Office of Accountability and Transparency that describes
6    the corporation's operations and activities during the
7    prior fiscal year, including (A) the corporation's
8    complete, audited financial statements, including a
9    description of the corporation's financial conditions and
10    operations; (B) a listing of all public sources of funds
11    received by the corporation; (C) a listing of all private
12    sources of funds received by the corporation; (D) a listing
13    of all firms and individuals who provided assistance or
14    resources to the corporation without compensation,
15    including the approximate value of the assistance or
16    resources provided; and (E) a description of how the
17    operations and activities of the corporation serve the
18    interests of the State and promote economic development.
19        (9) The corporation shall comply with all applicable
20    State and federal laws, including all applicable terms of
21    the Grant Accountability and Transparency Act.
22    Section 2-30. Conflicts of interest.
23    (a) In the conduct of their service to the corporation,
24directors, officers, and employees of the corporation shall
25behave ethically and in the best interests of the corporation



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1and shall seek to avoid actual and potential conflicts of
3    (b) The corporation shall adopt and maintain a
4comprehensive conflicts of interest policy. Such policy shall
5include, without limitation, the following:
6        (1) Any pecuniary interest held by or for a conflict
7    party in a grant from or contract with the corporation
8    shall be disclosed in writing and identified in the minutes
9    of the board.
10        (2) A conflict party who holds a pecuniary interest in
11    a grant from or contract with the corporation, or for whom
12    such an interest is held, shall not participate in any
13    corporate action with respect to such grant or contract.
14        (3) A conflict party may not acquire a pecuniary
15    interest in a grant from or contract with the corporation
16    during the time that the conflict party (or the spouse or
17    immediate family member of the conflict party) serves as a
18    director, officer, or employee of the corporation and for
19    one year after termination of such service.
20        (4) The corporation will not enter into any grant or
21    contract with any entity in which a conflict party is
22    entitled to receive more than 7.5%, or in which a conflict
23    party together with his or her spouse and immediate family
24    members residing in his or her residence are entitled to
25    receive more than 15%, of the total distribution income of
26    the entity.



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1    Section 2-35. Fundraising. The corporation shall raise and
2accept funds from private donors to support its economic
3development efforts and other operations.
Article III.

5    (20 ILCS 605/605-300 rep.)
6    Section 3-5. The Department of Commerce and Economic
7Opportunity Law of the Civil Administrative Code of Illinois is
8amended by repealing Section 605-300.
Article IV.

10    Section 4-99. Effective date. This Act takes effect upon
11becoming law.".