Full Text of SB0107 97th General Assembly
SB0107eng 97TH GENERAL ASSEMBLY |
| | SB0107 Engrossed | | LRB097 06114 PJG 46187 b |
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| 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, |
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| 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 |
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| 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 |
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| 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.
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