Illinois General Assembly - Full Text of HB0574
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Full Text of HB0574  99th General Assembly


Rep. Barbara Flynn Currie

Filed: 6/22/2015





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2    AMENDMENT NO. ______. Amend House Bill 574, AS AMENDED, by
3replacing everything after the enacting clause with the
5    "Section 1. Short title. This Act may be cited as the
6Illinois Business and Economic Development Corporation Act.
7    Section 3. 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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1    Section 5. Definitions. For the purposes of this Act:
2    "Board" means the board of directors of the corporation.
3    "Chief Executive Officer" means the chief executive
4officer of the corporation.
5    "Conflict party" means a director, officer, or employee of
6the corporation; the spouse of a director, officer, or employee
7of the corporation; or an immediate family member of a
8director, officer, or employee of the corporation residing in
9the same residence as the director, officer or employee.
10    "Corporation" means the Illinois Business and Economic
11Development Corporation incorporated by the Department
12pursuant to Section 10.
13    "Department" means the Illinois Department of Commerce and
14Economic Opportunity.
15    "Director" means the Director of Commerce and Economic
17    Section 10. Creation of the Illinois Business and Economic
18Development Corporation.
19    (a) The General Assembly authorizes the Department, in
20accordance with Section 10 of the State Agency Entity Creation
21Act, to incorporate the Illinois Business and Economic
22Development Corporation as a not-for-profit corporation
23pursuant to the General Not For Profit Corporation Act of 1986.
24    (b) The purpose of the corporation shall be to operate
25exclusively for charitable purposes within the government, by



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1promoting the economic development and well-being of the State.
2The corporation shall focus on business development, small and
3minority-owned business incubation, trade and investment,
4tourism and film. The corporation shall:
5        (1) develop best practices for economic development in
6    consultation with the Department;
7        (2) enter into grant agreements with the Department and
8    sub-grants with other persons and entities;
9        (3) maintain and develop economic data and research
10    that is beneficial to business development in the State;
11        (4) maintain and develop information about specific
12    statewide and regional economic incentives and benefits
13    that may be available to a business to expand within, or
14    relocate to, the State; and provide such information to
15    prospective businesses;
16        (5) formulate and pursue programs and local
17    partnerships for encouraging the location of new
18    businesses in the State and for retaining and fostering the
19    growth of existing businesses;
20        (6) negotiate tax incentives with private businesses,
21    subject to Department approval; and
22        (7) cooperate with and provide information to State
23    agencies, local governments, community colleges, and State
24    universities on economic development matters.
25    (c) For the purposes described in this Act, the corporation
26shall collaborate with the Department; with other State



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1agencies, authorities, boards, and commissions whose programs
2and activities significantly affect economic activity in the
3State as appropriate; and with local and regional economic
4development organizations, local elected officials,
5community-based organizations, service delivery providers, and
6other organizations whose programs and activities
7significantly affect economic activity. The Department and
8each other State agency, authority, board, or commission with
9which the corporation seeks to collaborate shall assist the
10corporation in carrying out its purposes as directed by the
12    (d) The corporation shall not be considered, in whole or in
13part, an agency, political subdivision, or instrumentality of
14the State. The corporation shall not exercise any sovereign
15power of the State. Employees and officers of the corporation
16shall not be considered employees or officers of the State or
17subject to the Personnel Code or other laws applicable to State
18employees and officers. The corporation does not have authority
19to pledge the credit of the State; the State shall not be
20liable for the debts or obligations of the corporation; and all
21debts and obligations of the corporation shall be payable
22solely from the corporation's funds.
23    (e) The corporation shall have such powers, rights, and
24obligations as are conferred upon a not-for-profit corporation
25under the General Not For Profit Corporation Act of 1986,
26including to accept grants, loans, or other amounts from the



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1State, the federal government, or other persons; to enter into
2contracts; and to employ personnel and other agents.
3    (f) The corporation shall be established, maintained, and
4operated so that donations and bequests to the corporation
5qualify as tax deductible under State income tax laws and
6Sections 170(c)(2) and 501(c)(3) of the Internal Revenue Code.
7    (g) The articles of incorporation and bylaws of the
8corporation shall provide for (1) governance and efficient
9management of the corporation, (2) a board of directors
10satisfying the requirements of Section 15, (3) a conflict of
11interest policy satisfying the requirements of Section 30, and
12(4) financial operations of the corporation, including the
13authority to receive and expend funds from public and private
14sources and to use its property, money, and other resources for
15the purposes of the corporation.
16    Section 15. Board of directors and Chief Executive Officer
17of the corporation.
18    (a) The affairs of the corporation shall be managed by or
19under the direction of the board of directors of the
21    (b) The board shall comprise 16 directors as follows:
22        (1) The Governor or his or designee shall be a director
23    ex officio and serve as chairperson of the board.
24        (2) The Governor shall appoint 11 directors, including
25    (i) one director with professional experience in finance,



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1    insurance, or investment banking, (ii) one director with
2    professional experience in small business development,
3    (iii) one director with professional experience in the
4    tourism or hospitality industry, and (iv) eight directors
5    who are actively employed in the private, for-profit sector
6    or who otherwise have substantial experience in economic
7    development. Of those eight directors described in clause
8    (iv), there shall be at least one director from each
9    industry cluster as identified to the Governor by the
10    Director. Of the 11 directors appointed pursuant to this
11    paragraph, at least 4 directors shall be representatives of
12    minority-owned and women-owned businesses.
13        (3) The Speaker and Minority Leader of the House of
14    Representatives and the President and Minority Leader of
15    the Senate each shall appoint one director who is employed
16    in, or retired from employment in, a private business,
17    not-for-profit organization, or academic organization.
18    (c) To facilitate communication and cooperation between
19the corporation and State agencies involved in economic
20development, the director or head of each of the following
21agencies shall serve as a non-voting, non-director member of
22the board: Department of Commerce and Economic Opportunity,
23Department of Agriculture, Department of Natural Resources,
24Department of Financial and Professional Regulation, Illinois
25Finance Authority, Department of Revenue, Department of Labor,
26Department of Veterans' Affairs, Department of Central



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1Management Services, Illinois Environmental Protection Agency,
2and Department of Employment Security.
3    (d) Except for the Governor or his or her designee, each
4director shall serve a term of three years. The articles of
5incorporation or bylaws shall divide the other 15 directors
6into three equal classes, with the terms of one class of
7directors expiring each year. In the event of a vacancy on the
8Board, the Governor shall appoint a replacement member within
960 days. In the event of a position appointed by a legislative
10leader, the leader making the original appointment shall fill
11the vacancy within 60 days.
12    (e) The Governor shall select an initial Chief Executive
13Officer of the corporation, subject to confirmation by a
14majority of members of the board. After the initial Chief
15Executive Officer, each subsequent Chief Executive Officer
16shall be selected and confirmed by a majority vote of the
18    Section 20. Office of Economic Development and Tourism.
19Within the Department, there shall be created a new division
20called the Office of Economic Development and Tourism for the
21purpose of collaborating with the corporation, issuing grants
22to the corporation, and being responsible for the following
23functions of the Department: business development;
24entrepreneurship, innovation, and technology; trade and
25investment; and tourism and film. The director of that office



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



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



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



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1    sub-grants of grant funds made by the corporation shall be
2    treated as grant funds in accordance with Section 12 of
3    that Act.
4    Section 30. Conflicts of interest.
5    (a) In the conduct of their service to the corporation,
6directors, officers, and employees of the corporation shall
7behave ethically and in the best interests of the State and
8avoid actual and potential conflicts of interest.
9    (b) The corporation shall adopt and maintain a
10comprehensive conflicts of interest policy. Such policy shall
11include, without limitation, the following:
12        (1) Any pecuniary interest held by or for a conflict
13    party in a grant from or contract with the corporation or a
14    tax incentive from the Department shall be disclosed in
15    writing and identified in the minutes of the board. Such
16    conflict must be disclosed before the approval of any
17    grant, contract, or incentive.
18        (2) A conflict party who holds a pecuniary interest in
19    a grant from or contract with the corporation or a tax
20    incentive from the Department, or for whom such an interest
21    is held, shall not participate in any corporate action,
22    including deliberations on such action, with respect to
23    such grant, contract, or incentive.
24        (3) A conflict party may not acquire a pecuniary
25    interest in a grant from or contract with the corporation



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1    or a tax incentive from the Department during the time that
2    the conflict party (or the spouse or immediate family
3    member of the conflict party) serves as a director,
4    officer, or employee of the corporation and for one year
5    after termination of such service.
6        (4) The corporation shall not enter into any grant or
7    contract with any entity in which a conflict party is
8    entitled to receive more than 7.5%, or in which a conflict
9    party together with his or her spouse and immediate family
10    members residing in his or her residence are entitled to
11    receive more than 15%, of the total distributable income of
12    the entity. For purposes of this paragraph (4),
13    "distributable income" means the income of a company after
14    payment of all expenses, including employee salary and
15    bonus, and retained earnings, which is distributed to those
16    entitled to receive a share of the income. In the case of a
17    for-profit corporation, "distributable" income means
18    dividends. When calculating entitlement to distributable
19    income the entitlement shall be determined at the end of
20    the company's most recent fiscal year.
21        (5) The board of directors shall determine appropriate
22    penalties for any violations of these provisions.
23    Section 35. Fundraising. The corporation shall raise and
24accept funds from private donors to support its economic
25development efforts and other operations.



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1    (20 ILCS 605/605-300 rep.)
2    Section 90. The Department of Commerce and Economic
3Opportunity Law of the Civil Administrative Code of Illinois is
4amended by repealing Section 605-300.".