|
|||||||
| |||||||
| |||||||
1 | AN ACT concerning finance.
| ||||||
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 | adding Section 11 as follows: | ||||||
6 | (30 ILCS 265/11 new) | ||||||
7 | Sec. 11. Technology Development Account II. | ||||||
8 | (a) In addition to the amount provided in Section 10 of | ||||||
9 | this Act, the State Treasurer may segregate a portion of the | ||||||
10 | Treasurer's investment portfolio, that at no time shall be | ||||||
11 | greater than 2% of the portfolio, in the Technology Development | ||||||
12 | Account IIa ("TDA IIa"), an account that shall be maintained | ||||||
13 | separately and apart from other moneys invested by the | ||||||
14 | Treasurer. Distributions from the investments in TDA IIa may be | ||||||
15 | reinvested into TDA IIa without being counted against the 2% | ||||||
16 | cap. The Treasurer may make investments from TDA IIa that help | ||||||
17 | attract, assist, and retain quality technology businesses in | ||||||
18 | Illinois. The earnings on TDA IIa shall be accounted for | ||||||
19 | separately from other investments made by the Treasurer. | ||||||
20 | (b) The Treasurer may solicit proposals from entities to | ||||||
21 | manage and be the General Partner of a separate fund | ||||||
22 | ("Technology Development Account IIb" or "TDA IIb") consisting | ||||||
23 | of investments from private sector investors that must invest, |
| |||||||
| |||||||
1 | at the direction of the Treasurer, in tandem with TDA IIa in a | ||||||
2 | pro-rata portion. The Treasurer may enter into an agreement | ||||||
3 | with the entity managing TDA IIb to advise on the investment | ||||||
4 | strategy of TDA IIa and TDA IIb (collectively "Technology | ||||||
5 | Development Account II" or "TDA II") and fulfill other mutually | ||||||
6 | agreeable terms. Funds in TDA IIb shall be kept separate and | ||||||
7 | apart from moneys in the State treasury. | ||||||
8 | (c) Moneys in TDA IIa may be invested by the State | ||||||
9 | Treasurer to provide venture capital to technology businesses | ||||||
10 | seeking to locate, expand, or remain in Illinois by placing | ||||||
11 | money with Illinois venture capital firms for investment by the | ||||||
12 | venture capital firms in technology businesses. "Venture | ||||||
13 | capital", as used in this Section, means equity financing that | ||||||
14 | is provided for starting up, expanding, or relocating a | ||||||
15 | company, or related purposes such as financing for seed | ||||||
16 | capital, research and development, introduction of a product or | ||||||
17 | process into the marketplace, or similar needs requiring risk | ||||||
18 | capital. "Technology business", as used in this Section, means | ||||||
19 | a company that has as its principal function the providing of | ||||||
20 | services, including computer, information transfer, | ||||||
21 | communication, distribution, processing, administrative, | ||||||
22 | laboratory, experimental, developmental, technical, or testing | ||||||
23 | services, manufacture of goods or materials, the processing of | ||||||
24 | goods or materials by physical or chemical change, computer | ||||||
25 | related activities, robotics, biological or pharmaceutical | ||||||
26 | industrial activity, or technology oriented or emerging |
| |||||||
| |||||||
1 | industrial activity. "Illinois venture capital firm", as used | ||||||
2 | in this Section, means an entity that has a majority of its | ||||||
3 | employees in Illinois or that has at least one managing partner | ||||||
4 | or member of the general partner domiciled in Illinois, and | ||||||
5 | that provides equity financing for starting up or expanding a | ||||||
6 | company, or related purposes such as financing for seed | ||||||
7 | capital, research and development, introduction of a product or | ||||||
8 | process into the marketplace, or similar needs requiring risk | ||||||
9 | capital. "Illinois venture capital firm" may also mean an | ||||||
10 | entity that has a track record of identifying, evaluating, and | ||||||
11 | investing in Illinois companies and that provides equity | ||||||
12 | financing for starting up or expanding a company, or related | ||||||
13 | purposes such as financing for seed capital, research and | ||||||
14 | development, introduction of a product or process into the | ||||||
15 | marketplace, or similar needs requiring risk capital. For | ||||||
16 | purposes of this Section, "track record" means having made, on | ||||||
17 | average, at least one investment in an Illinois company in each | ||||||
18 | of its funds if the Illinois venture capital firm has multiple | ||||||
19 | funds or at least 2 investments in Illinois companies if the | ||||||
20 | Illinois venture capital firm has only one fund. In no case | ||||||
21 | shall more than 10% of the capital in the TDA IIa be invested | ||||||
22 | in firms based outside of Illinois. | ||||||
23 | (d) Any fund created by an Illinois venture capital firm in | ||||||
24 | which the State Treasurer places money pursuant to this Section | ||||||
25 | shall be required by the State Treasurer to seek investments in | ||||||
26 | technology businesses seeking to locate, expand, or remain in |
| |||||||
| |||||||
1 | Illinois. | ||||||
2 | (e) Notwithstanding the limitation found in subsection (d) | ||||||
3 | of Section 10 of this Act, the investment of the State | ||||||
4 | Treasurer in any fund created by an Illinois venture capital | ||||||
5 | firm in which the State Treasurer places money pursuant to this | ||||||
6 | Section shall not exceed 15% of the total investments in the | ||||||
7 | fund. | ||||||
8 | (f) The State Treasurer shall not invest more than | ||||||
9 | one-third of Technology Development Account II in any given | ||||||
10 | calendar year. If in any calendar year less than one-third of | ||||||
11 | Technology Development Account II is invested, 50% of the | ||||||
12 | shortfall may be invested in the following calendar year in | ||||||
13 | addition to the regular one-third investment. | ||||||
14 | (g) The Treasurer may deposit no more than 10% of the | ||||||
15 | earnings of the investments in the Technology Development | ||||||
16 | Account IIa into the Technology Development Fund.
| ||||||
17 | Section 99. Effective date. This Act takes effect upon | ||||||
18 | becoming law.
|