Section 550.10  Purpose

 

Section 605-705(a) of the Civil Administrative Code of Illinois [20 ILCS 605/605-705(a) authorizes a program for the establishment of grants with local tourism and convention bureaus from the Convention and Local Tourism Account in the Tourism Fund.  The intent of the program is to generate increased hotel/motel occupancy and travel into and throughout the State of Illinois impacting the economic growth of the tourism industry.  This Part establishes rules for the implementation and administration of the Local Tourism and Convention Bureau Program.

 

Section 550.20  Definitions

 

"Act" − means Section 605-705(a) of the Civil Administrative Code of Illinois [20 ILCS 605/605-705(a)] that establishes a grant program to be referred to as the Local Tourism and Convention Bureau Program.

 

"Applicant" − means a not-for-profit organization or unit of local government that meets the eligibility requirements.

 

"Application" − means the completed standardized "Grant Application Form", plus the program specific addendum.

 

"Bureau" − means a certified local tourism and convention bureau.

 

"Certification/Re-certification" − means the written request submitted by an applicant requesting to be a certified local tourism and convention bureau and requesting grant funds authorized by the Act.

 

"Chief Executive Officer" − means a full-time (at least 35 hours per week), paid professional of a bureau authorized and qualified to manage and implement a bureau's marketing plan and fulfill all requirements under an LTCB grant whose sole function shall be to promote tourism development within the bureau's designated service area.

 

"Commodities" − means supplies and materials, including premiums, office products, equipment and printing. 

 

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

 

"Department Logo" − means a form of recognition as stipulated and supplied by the Department to identify a promotional project/product as being produced in whole or in part through grant funds from the Department.

 

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

 

"Feasibility Study" − means a study to determine if a tourism promotional project will result in an increase in overnight stays and visitor travel and if the promotional project is capable of being successfully completed.

 

"Fiscal Year" − means each period of July 1 through June 30, the fiscal year of the State of Illinois.

 

"Fiscal Year Marketing Plan" − means the planned program of tourism promotional activities for the fiscal year, including goals, objectives, strategies, anticipated results, and performance measures.

 

"Grant Agreement" − means the executed agreement between the grantee and the Department defining their respective rights and obligations with regard to the awarding of grant funds.

 

"Grantee" − means a bureau receiving LTCB Program funds from the Department for purposes of promoting tourism in a designated geographic area of the State.

 

"Illinois Bureau of Tourism" or "IBOT" − means the division of the Department that has statutory authority to establish, develop, and implement a grant program for local tourism and convention bureaus.

 

"In-Kind Contributions" − means donated services, donated space, donated equipment, services of volunteers, services in lieu of cash or any non-monetary item.

 

"Market Research" − means to research potential economic impact on the grantee's service area, including but not limited to researching recruitment of present and future target markets, such as leisure and business travelers and visitor distribution.

 

"Matching Funds" − means that portion of the Project Budget Plan that is required to be provided by the grantee.

 

"Municipality" − means "municipality" as defined in Section 1-1-2(1) of the Illinois Municipal Code [65 ILCS 5/1-1-2(1)].

 

"Pass-Through Funds" − means funds received by a bureau from a local entity within its designated geographic service area that are designated for payment of any expenses incurred without proportionate value, either programmatically or financially, being added by the bureau. 

 

"Population Served" − means the population of the bureau's designated service area according to the latest certified census figures.

 

"Premium Items" − means tourism promotional items purchased with grant funds and distributed or disseminated at no cost for tourism promotional purposes, including but not limited to tee-shirts, pins, hats, travel packages, and award plaques.

 

"Program" − means the Local Tourism and Convention Bureau (LTCB) Program.

 

"Project Budget Plan" − means an itemized budget category breakdown of planned grant and match expenditures associated with the activities described in the Fiscal Year Marketing Plan.

 

"Promotional Projects" − means Department approved tourism promotional activities that are designed to encourage tourism as described in the Fiscal Year Marketing Plan.

 

"Service Area" − means a designated geographic area for which the bureau is certified to provide tourism promotional services.

 

"Services" − means the furnishing of labor by a vendor not involving the delivery of a tangible product other than accompanying reports, designs, logos, or similar artistic services.

 

"Sponsorship" − means a financial contribution made by a bureau to another entity for the purpose of attracting or retaining an event that will generate tourism in the designated service area.

 

"Tourism" − means travel by either State residents or out-of-state visitors traveling away from home overnight in paid accommodations or on day trips to places 50 miles or more from the visitor's home.

 

"Travel/Trade Show" − means an exhibit/marketplace of travel-related products and/or services.

 

"Unit of Local Government" − means a county, municipality, or township having authority to enact laws and ordinances, administer laws and ordinances, and raise taxes or spend public funds.

 

(Source:  Amended at 38 Ill. Reg. 3359, effective January 15, 2014)

 

Section 550.30  Allocation of Appropriations to Grantees

 

a)         In accordance with the Act, annual appropriations made by the General Assembly to the Department for the purpose of this program are allocated as follows:

 

1)         18% of the annual appropriation shall be used for grants to convention and tourism bureaus located within Chicago; and

 

2          82% of the annual appropriation shall be used for grants to convention and tourism bureaus in the remainder of the State, in accordance with the formula in subsection (b). [20 ILCS 605/605-705(b)] 

 

b)         Subject to the maximum grant amount set forth in subsection (c), the funds to be distributed under subsection (a)(2) will be distributed based on a formula that will be applied to the available appropriations.  The formula will contain the following weighted factors, as they apply to the prior calendar year: 5% population of the bureau service area; 30% food/beverage tax collected in the bureau service area; and 65% of the State's hotel/motel tax collected in the bureau service area. 

 

c)         With the exception of bureaus located in Chicago, no bureau shall receive a grant in excess of $720,000 in State fiscal year 2005.  Each fiscal year thereafter, the cap shall be raised or lowered by the same percentage change that is made to the Department's appropriation to the Program, using State fiscal year 2005 as the base year.

 

(Source:  Amended at 45 Ill. Reg. 602, effective December 23, 2020)

 

Section 550.40  Certification Process

 

a)         Notification.  Each year, on or about January 1, the Department will publish three times within a 10-day period, in the official State newspaper, a notification that includes the following:

 

1)         Availability of funds under the LTCB program as of July 1;

 

2)         A statement directing applicants to contact the Department to obtain certification criteria and forms; and

 

3)         Instructions directing applicants to submit their request for certification by March 31. The Director shall not waive this submittal deadline unless the Director finds that to do so would:

 

A)        Allow the Department to further the purposes of the Program; 

 

B)        Allow the Department to consider funding of an applicant that is otherwise eligible under the Program; and

 

C)        Prevent loss of representation and promotional services to a designated geographic area of the State.  The Director's waiver must be in writing to be effective.

 

b)         Eligibility Criteria for Previously Certified Applicants.  Previously certified applicants must meet all of the following criteria to be re-certified as eligible to receive LTCB funds:

 

1)         Be either a unit of local government or incorporated as a not-for-profit organization in good standing with applicable State authorities, including, but not limited to, the Illinois Secretary of State, Illinois Department of Revenue, Illinois Department of Labor, and the Office of the Illinois Attorney General;

 

2)         Employ a full-time (minimum of 35 hours per week) paid professional Chief Executive Officer; and

 

3)         Have been in legal existence for a minimum of two years, representing one county or contiguous counties or one or more municipalities, and receive hotel-motel tax receipts from one or more municipalities or counties in the applicant's proposed service area.

 

c)         Eligibility Criteria for New Applicants.  Applicants requesting certification for the first time must satisfy the criteria described in subsections (b)(1) and (b)(2), as well as the following criteria:

 

1)         Have been in legal existence for a minimum of two years with paid full-time tourism staff whose sole purpose is to promote tourism in the designated service area;

 

2)         Receive local hotel/motel tax receipts from multiple municipalities in the applicant's proposed service area; and

 

3)         Represent more than one municipality or contiguous counties in the applicant's proposed service area.

 

d)         Service Area for New Applicants.  A new applicant will be certified to represent an area that is encompassed in an existing grantee's designated service area if:

 

1)         Documentation has been provided showing that the proposed area has provided substantial financial support to the existing grantee and received unsatisfactory representation; or

 

2)         The new applicant and the existing grantee provide a copy of a written mutual agreement supporting the new applicant's proposed service area and demonstrate support from the governing bodies of municipalities or counties in the proposed service area that it is in the best interest of the Program to create a new local tourism and convention bureau.

 

e)         Required Documentation

 

1)         Previously Certified Applicants.  Previously certified applicants must submit the following materials to be re-certified:

 

A)        A request for certification;

 

B)        A copy of current by-laws and a listing of names of the members of the board of directors or other governing board;

 

C)        A summary of tourism related experience and duties of the chief executive officer;

 

D)        A statement listing the municipalities or counties included in the applicant's proposed service area, including a current letter from the governing bodies of each of these entities indicating that the applicant is recognized as their tourism promotion organization;

 

E)        A statement by the applicant's fiscal officer, accountant, or treasurer of local funds specifying the local hotel/motel tax revenues and/or other funding received/projected by the bureau that can be used for matching funds.

 

2)         New Applicants. Applicants that have not been previously certified must submit the following to be considered for certification:

 

A)        A request for certification;

 

B)        Documentation verifying the applicant is an Illinois not-for-profit entity and has been in good standing on the date of application with either the Illinois Secretary of State or the Office of the Illinois Attorney General for a minimum of two years, under the applicable incorporation laws, or if a unit of local government, a statement/resolution signed by the head of the unit of local government the applicant represents;

 

C)        A copy of current by-laws and a list of board members or governing board representative of the applicant's proposed service area;

 

D)        A description of efforts to further the growth of the State's travel industry as evidenced by previous promotional and marketing activities (e.g., copies of published advertisements, brochures or pamphlets used to promote tourism) used by the convention and visitors bureau during the two years prior to the request for certification;

 

E)        A statement that it has demonstrated its commitment to tourism by operating a convention and visitors bureau with paid full-time staff dedicated solely to promoting tourism within the designated service area for a minimum of two years prior to requesting certification;

 

F)         A statement that it employs a full-time professional paid chief executive officer;

 

G)        A statement listing the municipalities or counties in its service area;

 

H)        A complete listing of hotels/motels collecting the State's hotel/motel tax (including addresses and telephone numbers) within its service area and the number of rooms/units in each;

 

I)         A statement certified by the applicant's fiscal officer, accountant, or treasurer specifying the local hotel/motel tax revenues and/or other government funding received/projected and/or expended by the bureau in the fiscal year prior to certification that can be used for match for the State grant; and

 

J)         If the proposed area is currently served all or in part by a grantee, documentation must be provided demonstrating that the area has provided financial support to the grantee but received unsatisfactory representation, or the new applicant and grantee must provide a copy of a written agreement stating that it is in the best interest of tourism to create a new convention and visitors bureau.

 

f)         Certification Determinations/Denials.  Prior to May 31, the Department shall send notice to each applicant informing the applicant of its certification status.

 

1)         When a single applicant seeks certification for a designated service area and has submitted all required documentation, and the documentation meets the approval of the Department, the applicant shall be certified by the Department.  The Department shall send notification of certification that includes the amount of funds available and a request for application (RFA) for grant funds.

 

2)         When more than one applicant seeks certification for an identical service area, with the exception of the City of Chicago, the Department shall send each applicant a request for proposal (RFP), which must be returned to the Department within 30 days and shall provide the following information: 

 

A)        Applicant's background, organization, experience and staff qualifications;

 

B)        A detailed marketing plan that includes a description of activities contemplated by the applicant, objectives (long and short-term), methodology used to measure program effectiveness, intended audience, distribution targets for promotional materials, and a projected economic impact and benefit to tourism; and

 

C)        Any marketing or feasibility studies in support of the plan.

 

3)         Within 15 days after receipt of the RFPs, the Department shall notify in writing each applicant as follows:

 

A)        The Department shall send written notification of certification, amount of funds available, and an RFA for grant funds to the certified bureau, and notify all other applicants that their applications have been denied.

 

B)        Denied applicants shall have the right to appeal the Department's certification decision to the Director within 10 calendar days after the date of the denial notice.  The request for review shall be submitted in writing to the Department and shall set forth the reasons for appeal and any additional tourism-related information the applicant chooses to submit in support of its appeal.  The Director shall render a decision within 15 days after receipt. 

 

4)         A previously certified applicant found to be in substantial noncompliance with the terms and conditions of the grant agreements issued in the prior two years may be considered for certification only if the applicant has submitted a plan for corrective action, satisfactory to the Department, by the earlier of 45 days from notification by the Department of material noncompliance or March 31 (certification request deadline).

 

g)         Denial of New Applicants.  The Department shall reserve the right to deny certification to a new applicant if the Department determines that certification is not in the best interest of the Program.  In making this determination, the Department shall consider: the size of the proposed service area and whether any portion of the proposed service area is currently serviced by another tourism entity.

 

h)         Denial of Previously Certified Applicants. 

 

1)         The Department may deny certification to a previously certified applicant with a new service area if the Department determines that to certify the new service area is not in the best interest of the Program. In making this determination, the Department shall consider such factors as:

 

A)        the size of the proposed service area;

 

B)        the historic tourism promotional relationship between the applicant's previous service area and the new service area; and

 

C)        whether any portion of the new service area is currently serviced by another bureau.  

 

2)         The Department may recertify an applicant's previous service area if the Department determines that the tourism objectives of the new service area are not consistent with the tourism objectives of the applicant's previous service area.

 

(Source:  Amended at 45 Ill. Reg. 602, effective December 23, 2020)

 

Section 550.50  Grant Application Process

 

Application by Bureaus for Funds Under the Act

 

a)         All bureaus shall complete an application  and any additional Department required forms or assessments for funding.  The bureau shall retain one copy and submit one original of the application to the Department's Springfield address.  Failure to provide any information requested in the application will result in the application not being processed.  A bureau's application for funding under the Local Tourism and Convention Bureau Program shall include, but not be limited to, the following information:

 

1)         Standardized application form;

 

2)         Name and signature of the bureau's chief executive officer, salary, and length of employment with the bureau;

 

3)         A Marketing Plan detailing all activities to be initiated through the LTCB grant during the fiscal year;

 

4)         Area to be served, such as municipalities, counties, etc.;

 

5)         Project Budget Plan itemizing budget expenditure activities proposed for LTCB grant and eligible match monies;

 

6)         Line-item breakout of source of local match funds;

 

7)         A certified statement, from the authorized official of the municipalities or counties that support the bureau with local hotel/motel taxes, specifying the amount of local hotel/motel tax that will be provided to the bureau during the fiscal year for the bureau's use and expenditure on eligible program activities and for match for the State grant;

 

8)         Name of the financial institution that will serve as the depository for LTCB grant and match funds;

 

9)         Fund account number for LTCB grant and match funds; and

 

10)         Names, titles, and sample signatures for those persons who will be required to authorize all account transactions, with a minimum of two signatures required.

 

b)         Upon receipt of applications from bureaus, the Department shall review the applications and:

 

1)         Grant the full amount requested; or

 

2)         Take the following action:

 

A)        Ask for additional information to clarify or document the information contained in the application; and/or

 

B)        Reduce the amount of grant funds requested if there are insufficient match funds, or the projects presented in the Marketing Plan do not focus on important tourism promotional activities and have little substance, i.e., no media promotions planned, no promotional materials being developed, the projects are not reasonable and are not consistent and workable, and the bureau cannot effectively carry out the projects.  In the event that funding of a grant request is reduced, the bureau may appeal to the Director of the Department within 10 days after notification.  The request for review shall be submitted in writing to the Director and shall contain the reasons for appeal and any additional tourism related information the bureau chooses to submit in support of its appeal.  The Department shall notify the bureau in writing of the Director's decision within 15 days after receipt of the appeal.

 

(Source:  Amended at 45 Ill. Reg. 602, effective December 23, 2020)

 

Section 550.60  Program Requirements

 

a)         Fiscal Year Marketing Plan and Project Budget Plan Approval

 

1)         A Fiscal Year Marketing Plan and detailed Project Budget Plan identifying proposed tourism promotional activities and associated administrative expenditures utilizing LTCB grant and match funds shall be submitted by the applicant as a part of the application.

 

2)         Salaries and related payroll expenses for the program year paid with LTCB grant funds shall not exceed 50% of the total grant funds awarded, except that, in fiscal years 2021, 2022, and 2023, these expenses may represent up to 60% of the total grant funds awarded.

 

A)        100% of tourism sales/promotion staff persons' salary may be applied toward the 50% cap and 60% cap in fiscal years 2021, 2022, and 2023 only.

 

B)        50% of the Chief Executive Officer's salary may be applied toward the 50% cap, except that in fiscal years 2021, 2022, and 2023 the allotment for this salary may be up to 100% of the 60% cap.

 

3)         Grantees are prohibited from hiring any immediate family member of staff or of a board member who is involved in the hiring decision of staff if grant or match funds are utilized to pay the family member's salary.  Immediate family members include the spouse, mother, father, daughter, son, or siblings and their children.

 

b)         Promotional Projects Paid from LTCB Grant Funds

 

1)         Promotional Costs.  Promotional costs shall total at least 90% of the grant funds awarded.

 

2)         Bids/Proposals.  When the amount paid to any one vendor for a project totals $10,000 or more for commodities, or $20,000 or more for services, a minimum of two bids using identical specifications shall be obtained and the grantee shall select the lowest qualified bidder for commodities and the most qualified proposer for services.  Evidence of compliance with this subsection (i.e., copies of at least two bid proposals) shall be retained by the grantee for review by the Department.

 

3)         All promotional products produced with grant funds shall incorporate the current Department logo, which identifies the Department's participation in the tourism promotional activity.  A grantee that fails to include the Department logo shall reimburse the Department for grant funds used in support of the project unless the Department finds that the omission of the logo was beyond the grantee's control.

 

4)         The print date and quantity printed shall appear on all brochures.

 

5)         The grantee shall be responsible for the accuracy of information contained within material produced with grant funds.

 

6)         All printed promotional materials and premium items that are produced with grant funds shall be available free of charge.

 

7)         Within 30 days after completion of a printing project, but only upon the Department's request, up to 10% of the materials printed must be sent to the Department's tourist information centers.

 

8)         Costs identified under this Program shall not be claimed for any other project funded by the Department.

 

9)         Examples of eligible promotional activities include, but are not limited to:

 

A)        Production of printed materials, e.g., brochures, visitor guides, rack cards, and/or maps that promote:

 

i)          the entire destination;

 

ii)         multiple attractions within a destination; or

 

iii)        a festival or event that will attract a minimum of 25% of its visitors from outside a 50-mile radius and that has been advertised, with at least 75% of promotion outside a 50-mile radius.  This third provision may be waived at the Department's discretion if documentation is submitted to show that the destination or event attracts more than 50 percent of its overnight stays from within a 50-mile radius;

 

B)        Travel/trade show booth space rental, purchase of booth, registration fees, and/or associated travel expenses (transportation, lodging, per diem at State rate) for a maximum of two bureau staff.  Justification is required for additional people to attend; 

 

C)        Hosting of familiarization tours;

 

D)        Placement and production costs of Internet, newspaper, magazine, radio, or television advertising to promote travel to the area.  Advertising shall be distributed outside a 50-mile radius of the promoted destination or event. Bureaus that provide documentation to the Department that at least 25% of their overnight visitors are from within a 50-mile radius may place that documented percentage of their advertising dollars for distribution within the 50-mile radius of the destination or event.  Advertising placed in the cities of Chicago or St. Louis that is circulated to the entire distribution area does not require the above documentation;

 

E)        Membership dues for travel/tourism related associations or organizations;

 

F)         Billboards utilized for tourism promotion, including design/installation of advertising and rental of space;

 

G)        Premiums for tourism promotional purposes bearing the Department logo;

 

H)        Production of tourism promotional videos;

 

I)         Salaries;

 

J)         Postage used in fulfillment and direct mail promotions;

 

K)        Marketing research studies;

 

L)        Telephone charges related to provision of tourism products/services information;

 

M)       Internet sites that are linked to enjoyillinois.com; and

 

N)        Sponsorships that are evidenced by a prior written agreement between the grantee and the recipient entity describing the activities to be undertaken with the sponsorship. 

 

i)          Sponsorship funds may be used for reasonably necessary event expenses, provided, however, that:

 

•           No more than 50% of the sponsorship amount comes from grant funds, the balance being paid from matching funds; and

 

•           Sponsorship funds are expended on eligible promotional activities. 

 

ii)         A sponsorship may be disallowed in whole or in part as an eligible grant promotional or match expenditure if it is determined by the Department that the purpose of entering into the sponsorship was to circumvent the prohibition against "pass-through funds".

 

10)         Bureaus must retain documentation regarding all revenue sources and expenditures from grant or match funds claimed in conjunction with the Program.  This documentation shall include, but is not limited to, original invoices, original cancelled checks, proof of performance, bids, schedules of travel expenses, and any other information needed to clarify Program reports.  With regard to proof of performance, examples include brochures, the full tear sheet for advertisements (the name and date of the publication appearing on the advertisement or a copy of the publication), samples of promotional items, and photos of billboards and street banners.  The Department logo on each proof of performance must be easily readable.

 

11)         Examples of activities ineligible for payment from grant promotional funds include, but are not limited to:

 

A)        Any administrative/operational expenses (copying, insurance, audits, accounting services, rent, office supplies, equipment, normal office postage, and non-promotional telephone expenses);

 

B)        Purchase of any alcoholic beverage;

 

C)        Feasibility studies; and

 

D)        Salaries of administrative or clerical support staff.

 

12)         Grant funds cannot be used by a bureau to complete a promotional project if those funds will allow the bureau to realize a profit on that promotional project (e.g., revenues from all sources exceed the cost of the promotional project).  Bureaus must keep records documenting all costs incurred and revenue generated from any promotional project containing paid advertising.

 

c)         Administrative Activities/Expenditures

 

1)         Administrative costs shall be limited to 10% of the grant funds awarded. Examples of projects eligible for payment from grant administrative funding include, but are not limited to:

 

A)        Administrative expenses (copying, normal office postage, insurance, audits, accounting services, phone, rent, office supplies, or equipment lease/rental) associated with tourism promotional activities of the bureau; and

 

B)        Salaries of bureau administrative or clerical support staff.

 

2)         Examples of activities/expenditures ineligible for payment from the grant administrative funds include, but are not limited to:

 

A)        Lease/purchase agreements for any items;

 

B)        Purchase of equipment;

 

C)        Purchase of any alcoholic beverage;

 

D)        Feasibility studies; and

 

E)        Penalties, fines, fees or interest charges assessed as a result of late payment.

 

d)         All project activities shall be subject to prior approval as stated under subsection (a).

 

(Source:  Amended at 46 Ill. Reg. 3113, effective February 10, 2022)

 

Section 550.70  Administrative Match Requirements

 

Matching Funds.  Each grantee must provide match for grant funds received under the Program.  Match expenditures must be no less than 50% of the grant funds expended, as well as any interest earned on grant funds that is also expended, except that, during fiscal years 2021 and 2022, the Department shall require that any grantee shall provide matching funds equal to no less than 25% of the grant amount. [20 ILCS 605/605-705(b)]  If a 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 be used to satisfy match requirements.

 

a)         Eligible matching funds must satisfy all of the following criteria:  

 

1)         Be provided to the grantee for general tourism promotional purposes in the designated service area;

 

2)         Be identified in the grantee's Project Budget Plan for the applicable fiscal year;

 

3)         Be available for expenditure during the applicable grant term;

 

4)         Be supported by grantee's records of deposit;

 

5)         Be expended by the grantee solely for eligible tourism promotional activities and associated administrative costs; and

 

6)         Not be refunded to the provider of the match.

 

b)         Eligible Sources of Matching Funds.  The following sources may be used as match for grant funds:

 

1)         Local  hotel/motel tax receipts;

 

2)         Membership dues;

 

3)         Interest on local monies available for expenditure on tourism promotional activities;

 

4)         Cash contributions meeting all requirements of subsection (a); and

 

5)         Federal funds provided directly to the grantee for tourism promotional purposes that do not require match.

 

c)         Ineligible  Sources and/or Expenditures of Matching Funds.  These include, but are not limited to:

 

1)         In-kind contributions;

 

2)         State or federal funds other than those allowed in subsection (b)(5);

 

3)         Monies used as match for other State or federal grants;

 

4)         Penalties, fines, fees, or interest charges assessed as a result of late payment;

 

5)         Pass-through funds; and

 

6)         Any purchase of alcoholic beverages.

 

(Source:  Amended at 46 Ill. Reg. 3113, effective February 10, 2022)

 

Section 550.80  Contractual Requirements

 

a)         Method of Compensation.  Payments pursuant to a grant shall be subject to the availability of funds appropriated by the General Assembly.

 

1)         The grantee shall receive grant funds, as stipulated in the Grant Agreement, upon approval of its application by the Department and execution of the Grant Agreement by the Chief Executive Officer (CEO) and by the Department.

 

2)         Prior to funds being awarded, a grantee shall employ a full-time, paid, professional CEO.  In the event of the resignation of a bureau's CEO, an interim CEO must be named within 30 days.  When a new CEO is hired, the bureau must provide the Department with the individual's tourism related experience and qualifications for the position.  The interim CEO shall fulfill all duties of the position.

 

b)         Reporting Requirements:  The grantee shall submit, within the timeframes specified in the Grant Agreement, reports on the financial status of its Fiscal Year Marketing Plan/Project Budget Plan and reports on the outcomes and results of its grant-related activity.  Failure to comply with the timely submission of financial and programmatic reports may result in withholding of subsequent monthly grant checks.  The Department reserves the right to request additional information to clarify or document information contained in the reports.

 

c)         Financial Management Standards.  A grantee's financial management systems shall be structured under generally accepted accounting standards, which include maintaining effective control and accountability over all funds, property, and other assets acquired with grant and match funds.

 

d)         Travel Expenses.  Travel expenses that are paid with grant funds must be in compliance with the latest State of Illinois Department of Central Management Services Travel Regulations (80 Ill. Adm. Code 2800) and shall be allowable for expenses of transportation, lodging, per diem, and related items incurred by bureau employees who are on travel status for allowable tourism promotional purposes outside the grantee's service area.  The grantee shall retain receipts to document travel expenses.

 

e)         Monitoring.  The Department shall periodically conduct on-site monitoring of each grantee funded under this Program.  The Department will use its best efforts to notify the grantee at least two working days in advance of monitoring visits unless the Department has reason to believe that a monitoring visit must be conducted immediately.  The grantee's internal procedures, financial reporting, and performance shall be evaluated for compliance with terms and conditions of the Grant Agreement.  The Department reserves the right to request additional information prior to, during, or subsequent to monitoring visits.

 

f)         Interest on Grant Funds.  All interest earned on grant funds shall be accounted for by the grantee and shall be expended on eligible tourism promotional activities or returned to the Department.

 

g)         Obligation of Grant and Match Funds.  All grant and match funds shall be  legally obligated for expenditure  no later than June 30 of the fiscal year and must be paid out no later than the date stated in the Grant Agreement.  Any unexpended grant funds, including accrued interest, shall be returned to the Department.  In addition, the grantee shall return any funds that are determined by the Department to have been spent in violation of this Part or the Grant Agreement.

 

h)         Audits.  The grantee shall be responsible for securing a compliance audit pursuant to 44 Ill. Adm. Code 7000.90 (GATA Auditing Standards).  In addition to having to return grant funds spent in violation of this Part or the Grant Agreement, the grantee may be deemed ineligible to apply for and receive funds under this Program for a maximum of two years.  The Department shall reserve the right to perform special audits of these funds during normal working hours.

 

i)          Nondiscrimination.  Grantees shall refrain from unlawful discrimination in employment and will undertake affirmative action to assure equality of employment opportunity and eliminate the effects of past discrimination in accordance with the Illinois Human Rights Act [775 ILCS 5]; section 504, and the equal opportunity clause promulgated thereto, of the Rehabilitation Act of 1973, as amended (29 USC 794); the Age Discrimination Act of 1975 (42 USC 6101 et seq.); and Title VI of the Civil Rights Act of 1964, as amended (42 USC 1981 et seq.).

 

j)          Complaint Process.  In the case of a grantee complaint, the Department shall follow the procedures outlined in 56 Ill. Adm. Code 2605 (Administrative Hearing Rules).

 

k)         When expending LTCB grant and match funds, two authorizing signatures shall be required on all checks over the amount of $500.

 

l)          Suspension and Termination

 

1)         If a grantee fails to comply with this Part or the Grant Agreement, the Department may suspend the grant until the grantee has cured the deficiency.  Failure to cure the deficiency within the time frame established by the Department may result in termination of the Grant Agreement and recovery of grant funds in accordance with the Illinois Grant Funds Recovery Act [30 ILCS 705].  The Department will find that a grantee has failed to comply with the Grant Agreement if the grantee has been notified in writing of a deficiency and fails to submit a corrective plan for Department approval within 30 days after the deficiency notice. 

 

2)         A Grant Agreement may be terminated for cause notwithstanding availability of appropriated funds and sufficient revenues for the grant.

 

m)        Reallocation of Funds.  On or before May 1 of the fiscal year, the grantee shall be required to identify grant funds that will not be fully expended or legally obligated by June 30, including any grant funds for which there will be insufficient match.  The Grant Agreement shall be modified to decrease the grant award accordingly and the funds may be reallocated by the Department.

 

n)         Conflict of Interest.  The grantee shall comply with all provisions of  the Grant Agreement with respect to hiring or awarding contracts to family members of bureau officers, principals and board members.

 

(Source:  Amended at 45 Ill. Reg. 602, effective December 23, 2020)