SB2407 Engrossed LRB093 15608 JAM 41215 b

1     AN ACT concerning technology development.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The Technology Development Act is amended by
5 changing Section 10 and adding Section 20 as follows:
 
6     (30 ILCS 265/10)
7     Sec. 10. Technology Development Account.
8     (a) The State Treasurer may segregate a portion of the
9 Treasurer's investment portfolio, that at no time shall be
10 greater than 1% of the portfolio, in the Technology Development
11 Account, an account that shall be maintained separately and
12 apart from other moneys invested by the Treasurer. The
13 Treasurer may make investments from the Account that help
14 attract, assist, and retain quality technology businesses in
15 Illinois. The earnings on the Account shall be accounted for
16 separately from other investments made by the Treasurer.
17     (b) Moneys in the Account may be invested by the State
18 Treasurer to provide venture capital to technology businesses
19 seeking to locate, expand, or remain in Illinois by placing
20 money with Illinois venture capital firms for investment by the
21 venture capital firms in technology businesses. "Venture
22 capital", as used in this Act, means equity financing that is
23 provided for starting up, expanding, or relocating a company,
24 or related purposes such as financing for seed capital,
25 research and development, introduction of a product or process
26 into the marketplace, or similar needs requiring risk capital.
27 "Technology business", as used in this Act, means a company
28 that has as its principal function the providing of services
29 including computer, information transfer, communication,
30 distribution, processing, administrative, laboratory,
31 experimental, developmental, technical, testing services,
32 manufacture of goods or materials, the processing of goods or

 

 

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1 materials by physical or chemical change, computer related
2 activities, robotics, biological or pharmaceutical industrial
3 activity, or technology oriented or emerging industrial
4 activity. "Illinois venture capital firms", as used in this
5 Act, means an entity that has a majority of its employees in
6 Illinois or that has at least one managing partner domiciled in
7 Illinois that has made significant capital investments in
8 Illinois companies and that provides equity financing for
9 starting up or expanding a company, or related purposes such as
10 financing for seed capital, research and development,
11 introduction of a product or process into the marketplace, or
12 similar needs requiring risk capital.
13     (c) Any fund created by an Illinois venture capital firm in
14 which the State Treasurer places money pursuant to this Act
15 shall be required by the State Treasurer to seek investments in
16 technology businesses seeking to locate, expand, or remain in
17 Illinois.
18     (d) The investment of the State Treasurer in any fund
19 created by an Illinois venture capital firm in which the State
20 Treasurer places money pursuant to this Act shall not exceed
21 10% of the total investments in the fund.
22     (e) The State Treasurer shall not invest more than
23 one-third of the Technology Development Account in any given
24 calendar year.
25     (f) The Treasurer may deposit no more than 10% of the
26 earnings of the investments in the Technology Development
27 Account into the Technology Development Fund.
28 (Source: P.A. 92-851, eff. 8-26-02.)
 
29     (30 ILCS 265/20 new)
30     Sec. 20. Technology Development Fund. The Technology
31 Development Fund is created as a special fund outside the State
32 treasury with the State Treasurer as custodian. Moneys in the
33 Fund may be used by the State Treasurer to pay expenses related
34 to investments from the Technology Development Account. Moneys
35 in the Fund in excess of those expenses may be provided as

 

 

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1 grants to Illinois schools to purchase computers and to upgrade
2 technology.
 
3     Section 99. Effective date. This Act takes effect upon
4 becoming law.