State of Illinois
92nd General Assembly
Legislation

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[ House Amendment 001 ]


92_HB3212sam001

 










                                           LRB9206261JMmbam08

 1                    AMENDMENT TO HOUSE BILL 3212

 2        AMENDMENT NO.     .  Amend House Bill 3212  by  replacing
 3    the title with the following:
 4        "AN ACT concerning the State Treasurer."; and

 5    by  replacing  everything  after the enacting clause with the
 6    following:

 7        "Section 1.  Short title.  This Act may be cited  as  the
 8    Technology Development Act.

 9        Section  5.  Policy.  The Illinois General Assembly finds
10    that it is important for the State  to  encourage  technology
11    development  in  the  State.   The  purpose of this Act is to
12    attract, assist, and retain quality technology businesses  in
13    Illinois.  The creation of the Technology Development Account
14    will allow the State to bring together, and add to, Illinois'
15    rich science, technology, and business communities.

16        Section 10.  Technology Development Account.
17        (a)  The  State  Treasurer may segregate a portion of the
18    Treasurer's investment portfolio, that at no  time  shall  be
19    greater   than   1%  of  the  portfolio,  in  the  Technology
20    Development Account, an  account  that  shall  be  maintained
 
                            -2-            LRB9206261JMmbam08
 1    separately  and  apart  from  other  moneys  invested  by the
 2    Treasurer.  The  Treasurer  may  make  investments  from  the
 3    Account   that  help  attract,  assist,  and  retain  quality
 4    technology businesses  in  Illinois.   The  earnings  on  the
 5    Account   shall   be  accounted  for  separately  from  other
 6    investments made by the Treasurer.
 7        (b)  Moneys in the Account may be invested by  the  State
 8    Treasurer to provide venture capital to technology businesses
 9    seeking  to  locate, expand, or remain in Illinois by placing
10    money with Illinois venture capital firms for  investment  by
11    the venture capital firms in technology businesses.  "Venture
12    capital", as used in this Act, means equity financing that is
13    provided for starting up, expanding, or relocating a company,
14    or  related  purposes  such  as  financing  for seed capital,
15    research  and  development,  introduction  of  a  product  or
16    process into the marketplace, or similar needs requiring risk
17    capital.  "Technology business", as used in this Act, means a
18    company that has as its principal function the  providing  of
19    services    including    computer,    information   transfer,
20    communication,  distribution,   processing,   administrative,
21    laboratory,  experimental,  developmental, technical, testing
22    services, manufacture of goods or materials,  the  processing
23    of  goods  or  materials  by  physical  or  chemical  change,
24    computer   related   activities,   robotics,   biological  or
25    pharmaceutical industrial activity, or technology oriented or
26    emerging  industrial  activity.   "Illinois  venture  capital
27    firms", as used in this Act,  means  an  entity  that  has  a
28    majority  of  its  employees in Illinois or that has at least
29    one managing partner domiciled  in  Illinois  that  has  made
30    significant  capital  investments  in  Illinois companies and
31    that provides equity financing for starting up or expanding a
32    company, or related  purposes  such  as  financing  for  seed
33    capital,  research and development, introduction of a product
34    or process into the marketplace, or similar  needs  requiring
 
                            -3-            LRB9206261JMmbam08
 1    risk capital.
 2        (c)  Any fund created by an Illinois venture capital firm
 3    in  which  the  State Treasurer places money pursuant to this
 4    Act  shall  be  required  by  the  State  Treasurer  to  seek
 5    investments  in  technology  businesses  seeking  to  locate,
 6    expand, or remain in Illinois.
 7        (d)  The investment of the State Treasurer  in  any  fund
 8    created  by  an  Illinois  venture  capital firm in which the
 9    State Treasurer places money pursuant to this Act  shall  not
10    exceed 10% of the total investments in the fund.
11        (e)  The  State  Treasurer  shall  not  invest  more than
12    one-third of the Technology Development Account in any  given
13    calendar year.

14        Section  15.   Rules.  The State Treasurer may promulgate
15    rules to implement this Act.

16        Section 90.  The Deposit of State Moneys Act  is  amended
17    by changing Section 22.5 as follows:

18        (15 ILCS 520/22.5) (from Ch. 130, par. 41a)
19        Sec. 22.5.  The State Treasurer may, with the approval of
20    the  Governor,  invest  and  reinvest  any State money in the
21    treasury which is  not needed for current expenditures due or
22    about to become due, in obligations of  the    United  States
23    government   or   its   agencies   or  of  National  Mortgage
24    Associations established by or  under  the  National  Housing
25    Act,  1201  U.S.C. 1701 et seq., or in mortgage participation
26    certificates representing undivided interests  in  specified,
27    first-lien  conventional  residential Illinois mortgages that
28    are underwritten, insured, guaranteed, or  purchased  by  the
29    Federal  Home  Loan  Mortgage  Corporation  or  in Affordable
30    Housing Program Trust Fund Bonds or Notes as defined  in  and
31    issued pursuant to the Illinois Housing Development Act.  All
 
                            -4-            LRB9206261JMmbam08
 1    such  obligations  shall  be  considered  as  cash and may be
 2    delivered over as cash by a State Treasurer to his successor.
 3        The  State  Treasurer  may,  with  the  approval  of  the
 4    Governor, purchase any state bonds  with  any  money  in  the
 5    State  Treasury  that  has  been  set  aside and held for the
 6    payment  of the principal of and interest on the  bonds.  The
 7    bonds  shall  be considered as cash and may be delivered over
 8    as cash by the State Treasurer to his successor.
 9        The  State  Treasurer  may,  with  the  approval  of  the
10    Governor, invest or reinvest any  State money in the treasury
11    that is not needed for current expenditure due  or  about  to
12    become  due, or any money in the State Treasury that has been
13    set aside and held for the payment of the  principal  of  and
14    the  interest  on  any  State  bonds, in shares, withdrawable
15    accounts, and investment certificates of savings and building
16    and loan associations,  incorporated under the laws  of  this
17    State  or  any  other  state  or under the laws of the United
18    States; provided, however, that investments may be made  only
19    in  those  savings and loan or building and loan associations
20    the shares and  withdrawable  accounts  or   other  forms  of
21    investment  securities  of  which  are insured by the Federal
22    Deposit Insurance Corporation.
23        The State Treasurer may not invest  State  money  in  any
24    savings  and  loan  or building and loan association unless a
25    commitment by the savings and loan  (or  building  and  loan)
26    association,  executed  by  the  president or chief executive
27    officer of that association,  is submitted in  the  following
28    form:
29             The .................. Savings and Loan (or Building
30        and  Loan) Association pledges not  to reject arbitrarily
31        mortgage loans  for  residential  properties  within  any
32        specific  part of the community served by the savings and
33        loan (or building and loan) association because   of  the
34        location  of  the  property.   The  savings  and loan (or
 
                            -5-            LRB9206261JMmbam08
 1        building and loan) association also pledges to make loans
 2        available on low and moderate income residential property
 3        throughout the community within the limits of  its  legal
 4        restrictions and prudent financial practices.
 5        The  State  Treasurer  may,  with  the  approval  of  the
 6    Governor,  invest  or reinvest, at a price not to exceed par,
 7    any State money in  the  treasury  that  is  not  needed  for
 8    current expenditures due or about to become due, or any money
 9    in  the  State Treasury  that has been set aside and held for
10    the payment of the principal of and interest  on   any  State
11    bonds,  in bonds issued by counties or municipal corporations
12    of the State of Illinois.
13        The  State  Treasurer  may,  with  the  approval  of  the
14    Governor, invest or reinvest any State money in the  Treasury
15    which  is not needed for current expenditure, due or about to
16    become due, or any money in the State Treasury which has been
17    set aside and held for the payment of the  principal  of  and
18    the  interest on any State bonds, in participations in loans,
19    the principal of which participation is fully  guaranteed  by
20    an agency or instrumentality of the United States government;
21    provided,   however,   that   such  loan  participations  are
22    represented by certificates issued only by  banks  which  are
23    incorporated  under the laws of this State or any other state
24    or under the laws of the United States, and such  banks,  but
25    not  the  loan participation certificates, are insured by the
26    Federal Deposit Insurance Corporation.
27        The  State  Treasurer  may,  with  the  approval  of  the
28    Governor, invest or reinvest any State money in the  Treasury
29    that  is  not needed for current expenditure, due or about to
30    become due, or any money in the State Treasury that has  been
31    set  aside  and  held for the payment of the principal of and
32    the interest on any State bonds, in any of the following:
33             (1)  Bonds,  notes,  certificates  of  indebtedness,
34        Treasury bills, or  other  securities  now  or  hereafter
 
                            -6-            LRB9206261JMmbam08
 1        issued  that  are guaranteed by the full faith and credit
 2        of the United States  of  America  as  to  principal  and
 3        interest.
 4             (2)  Bonds,  notes,  debentures,  or  other  similar
 5        obligations   of   the  United  States  of  America,  its
 6        agencies, and instrumentalities.
 7             (3)  Interest-bearing       savings        accounts,
 8        interest-bearing       certificates      of      deposit,
 9        interest-bearing time deposits, or any other  investments
10        constituting direct obligations of any bank as defined by
11        the Illinois Banking Act.
12             (4)  Interest-bearing   accounts,   certificates  of
13        deposit, or any  other  investments  constituting  direct
14        obligations   of   any   savings  and  loan  associations
15        incorporated under the laws of this State  or  any  other
16        state or under the laws of the United States.
17             (5)  Dividend-bearing    share    accounts,    share
18        certificate  accounts,  or  class  of share accounts of a
19        credit union chartered under the laws of  this  State  or
20        the  laws  of  the  United States; provided, however, the
21        principal office of the  credit  union  must  be  located
22        within the State of Illinois.
23             (6)  Bankers'  acceptances  of  banks  whose  senior
24        obligations are rated in the top 2 rating categories by 2
25        national  rating agencies and maintain that rating during
26        the term of the investment.
27             (7)  Short-term    obligations    of    corporations
28        organized in the  United  States  with  assets  exceeding
29        $500,000,000 if (i) the obligations are rated at the time
30        of  purchase  at  one  of  the  3 highest classifications
31        established by at least 2 standard  rating  services  and
32        mature not later than 180 days from the date of purchase,
33        (ii) the purchases do not exceed 10% of the corporation's
34        outstanding obligations, and (iii) no more than one-third
 
                            -7-            LRB9206261JMmbam08
 1        of  the  public agency's funds are invested in short-term
 2        obligations of corporations.
 3             (8)  Money market mutual funds registered under  the
 4        Investment   Company  Act  of  1940,  provided  that  the
 5        portfolio of the money market mutual fund is  limited  to
 6        obligations  described  in this Section and to agreements
 7        to repurchase such obligations.
 8             (9)  The Public Treasurers' Investment Pool  created
 9        under  Section 17 of the State Treasurer Act or in a fund
10        managed, operated, and administered by a bank.
11             (10)  Repurchase agreements of government securities
12        having the meaning set out in the  Government  Securities
13        Act of 1986 subject to the provisions of that Act and the
14        regulations issued thereunder.
15             (11)  Investments   made   in  accordance  with  the
16        Technology Development Act.
17        For purposes of this Section, "agencies"  of  the  United
18    States Government includes:
19             (i)  the  federal  land  banks, federal intermediate
20        credit banks, banks for cooperatives, federal farm credit
21        banks, or any  other  entity  authorized  to  issue  debt
22        obligations  under the Farm Credit Act of 1971 (12 U.S.C.
23        2001 et seq.) and Acts amendatory thereto;
24             (ii)  the federal home loan banks  and  the  federal
25        home loan mortgage corporation;
26             (iii)  the Commodity Credit Corporation; and
27             (iv)  any other agency created by Act of Congress.
28        The  Treasurer  may,  with  the approval of the Governor,
29    lend  any  securities  acquired  under  this  Act.   However,
30    securities may be lent under this Section only in  accordance
31    with   Federal   Financial  Institution  Examination  Council
32    guidelines and only if the securities are collateralized at a
33    level sufficient to assure  the  safety  of  the  securities,
34    taking into account market value fluctuation.  The securities
 
                            -8-            LRB9206261JMmbam08
 1    may  be collateralized by cash or collateral acceptable under
 2    Sections 11 and 11.1.
 3    (Source: P.A. 90-655, eff. 7-30-98.)

 4        Section 99.  Effective date.  This Act takes effect  upon
 5    becoming law.".

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