Full Text of SB3028 101st General Assembly
SB3028eng 101ST GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning State government.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 1. Short title. This Act may be cited as the | 5 | | Infrastructure Development Act. | 6 | | Section 5. Definitions. As used in this Act:
| 7 | | "Development capital" means financing for investments in | 8 | | which the underlying assets involve direct ownership of | 9 | | non-financial assets for developing or expanding in Illinois.
| 10 | | "Illinois infrastructure development firm" means an entity | 11 | | that: (i) has more than 50% of its employees in Illinois or | 12 | | that has at least one general partner or principal domiciled in | 13 | | Illinois; (ii) provides financing for investments in which the | 14 | | underlying assets involve direct ownership of non-financial | 15 | | assets to develop or expand in Illinois; or (iii) has a track | 16 | | record of identifying, evaluating, and investing in Illinois | 17 | | infrastructure development projects and providing financing | 18 | | for investments in which the underlying assets involve direct | 19 | | ownership of non-financial assets to develop or expand in | 20 | | Illinois.
| 21 | | "Illinois infrastructure development project" means a | 22 | | project that has as its principal function investing in real | 23 | | assets to develop economic and social infrastructure |
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| 1 | | including, but not limited to, land, buildings, | 2 | | transportation, utilities, communication, renewable energy, | 3 | | schools, healthcare, and other real assets.
| 4 | | "Significant presence" means at least one physical office | 5 | | and one full-time employee within the geographic borders of | 6 | | this State.
| 7 | | "Track record" means having made, on average, at least one | 8 | | investment in an Illinois infrastructure development project | 9 | | in each of its funds if the Illinois infrastructure development | 10 | | firm has multiple funds or at least 2 investments in Illinois | 11 | | infrastructure development projects if the Illinois | 12 | | infrastructure development firm has only one fund.
| 13 | | Section 10. Infrastructure Development Account.
| 14 | | (a) The State Treasurer shall segregate a portion of the | 15 | | Treasurer's State investment portfolio, which at no time shall | 16 | | be greater than 5% of the portfolio, in the Infrastructure | 17 | | Development Account, an account that shall be maintained | 18 | | separately and apart from other moneys invested by the State | 19 | | Treasurer. Distributions from the investments in the | 20 | | Infrastructure Development Account may be reinvested into the | 21 | | Infrastructure Development Account without being counted | 22 | | against the 5% cap. The aggregate investment in the | 23 | | Infrastructure Development Account and the aggregate | 24 | | commitment of investment capital in an Infrastructure | 25 | | Development Account-Recipient Fund shall at no time be greater |
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| 1 | | than 5% of the State's investment portfolio, which shall be | 2 | | calculated as: (i) the balance at the inception of the State | 3 | | fiscal year; or (ii) the average balance in the immediately | 4 | | preceding 5 fiscal years, whichever number is greater. | 5 | | Distributions from an Infrastructure Development | 6 | | Account-Recipient Fund, in an amount not to exceed the | 7 | | commitment amount and the total distributions, may be | 8 | | reinvested into the Infrastructure Development Account without | 9 | | being counted against the 5% cap. The State Treasurer may make | 10 | | investments from the Infrastructure Development Account that | 11 | | help attract, assist, and support quality infrastructure | 12 | | development projects in Illinois. A portion of the investment | 13 | | earnings on the Infrastructure Development Account may be | 14 | | deposited into the Infrastructure Development Fund and | 15 | | reinvested by the State Treasurer.
| 16 | | (b) The State Treasurer may solicit proposals from entities | 17 | | to manage the Infrastructure Development Account consisting of | 18 | | investments from private sector investors that must invest, at | 19 | | the direction of the general partner, in tandem with the | 20 | | Infrastructure Development Account in a pro-rata portion. The | 21 | | State Treasurer may enter into an agreement with the entity | 22 | | managing the Infrastructure Development Account to advise on | 23 | | the investment strategy of the Infrastructure Development | 24 | | Account and fulfill other mutually agreeable terms. Funds in | 25 | | the Infrastructure Development Account shall be kept separate | 26 | | and apart from moneys in the State treasury.
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| 1 | | (c) All or a portion of the moneys in the Infrastructure | 2 | | Development Account shall be invested by the State Treasurer to | 3 | | provide development capital to infrastructure development | 4 | | projects, seeking to locate, expand, or remain in Illinois by | 5 | | placing money with Illinois infrastructure development firms. | 6 | | In no case shall more than 15% of the capital in the | 7 | | Infrastructure Development Account be invested in firms based | 8 | | outside of Illinois.
| 9 | | (d) Any Infrastructure Development Account-Recipient Fund | 10 | | created by an Illinois infrastructure development firm in which | 11 | | the State Treasurer places money pursuant to this Section shall | 12 | | be required by the State Treasurer to seek investments in | 13 | | Illinois infrastructure development projects seeking to | 14 | | locate, expand, or remain in Illinois. Any Infrastructure | 15 | | Development Account-Recipient Fund created by an Illinois | 16 | | infrastructure development firm in which the State Treasurer | 17 | | places money under this Section shall invest a minimum of twice | 18 | | the aggregate amount of investable capital that is received | 19 | | from the State Treasurer under this Section in Illinois | 20 | | infrastructure development projects during the life of the | 21 | | fund. Investable capital is calculated as committed capital, as | 22 | | defined in the firm's applicable fund's governing documents, | 23 | | less related estimated fees and expenses to be incurred during | 24 | | the life of the fund.
| 25 | | (e) All Infrastructure Development Account-Recipient Funds | 26 | | shall also invest additional capital in Illinois |
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| 1 | | infrastructure development projects during the life of the fund | 2 | | if, as determined by the fund's manager, the investment:
| 3 | | (1) is consistent with the firm's fiduciary | 4 | | responsibility to its limited partners;
| 5 | | (2) is consistent with the fund manager's investment | 6 | | strategy; and
| 7 | | (3) demonstrates the potential to create risk-adjusted | 8 | | financial returns consistent with the fund manager's | 9 | | investment goals.
| 10 | | (f) All Infrastructure Development Account-Recipient Funds | 11 | | shall report the following information to the State Treasurer | 12 | | on a quarterly or annual basis, as determined by the State | 13 | | Treasurer, for all investments, including but not limited to:
| 14 | | (1) the names of companies or infrastructure | 15 | | development projects invested in during the applicable | 16 | | investment period;
| 17 | | (2) the geographic location of infrastructure | 18 | | development projects;
| 19 | | (3) the date of the initial and any follow-on | 20 | | investments;
| 21 | | (4) the cost of the investment; and
| 22 | | (5) the current fair market value of the investment.
| 23 | | (g) If, as of the earlier to occur of (i) the fourth year | 24 | | of the investment period of any Infrastructure Development | 25 | | Account-Recipient Fund or (ii) when that Infrastructure | 26 | | Development Account-Recipient Fund has drawn more than 60% of |
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| 1 | | the investable capital of all limited partners, that | 2 | | Infrastructure Development Account-Recipient Fund has failed | 3 | | to invest the minimum amount required under this Section in | 4 | | Illinois infrastructure development projects, then the State | 5 | | Treasurer shall deliver written notice to the manager of that | 6 | | fund seeking compliance with the minimum amount requirement | 7 | | under this Section. If, after 180 days after delivery of | 8 | | notice, the Infrastructure Development Account-Recipient Fund | 9 | | has still failed to invest the minimum amount required under | 10 | | this Section in Illinois companies, then the State Treasurer | 11 | | may elect, in writing, to terminate any further commitment to | 12 | | make capital contributions to that fund which otherwise would | 13 | | have been made under this Section.
| 14 | | Section 15. Rules. The State Treasurer may adopt rules | 15 | | necessary to implement this Act. | 16 | | Section 20. Infrastructure Development Fund. The | 17 | | Infrastructure Development Fund is created as a special fund in | 18 | | the State treasury, which may receive a portion of earnings | 19 | | from the Infrastructure Development Account and may be used by | 20 | | the State Treasurer to pay expenses related to this Act. | 21 | | Section 90. The State Finance Act is amended by adding | 22 | | Section 5.930 as follows: |
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| 1 | | (30 ILCS 105/5.930 new) | 2 | | Sec. 5.930. The Infrastructure Development Fund.
| 3 | | Section 99. Effective date. This Act takes effect upon | 4 | | becoming law.
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