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Public Act 92-0851
HB3212 Enrolled LRB9206261JMmb
AN ACT concerning the State Treasurer.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 1. Short title. This Act may be cited as the
Technology Development Act.
Section 5. Policy. The Illinois General Assembly finds
that it is important for the State to encourage technology
development in the State. The purpose of this Act is to
attract, assist, and retain quality technology businesses in
Illinois. The creation of the Technology Development Account
will allow the State to bring together, and add to, Illinois'
rich science, technology, and business communities.
Section 10. Technology Development Account.
(a) The State Treasurer may segregate a portion of the
Treasurer's investment portfolio, that at no time shall be
greater than 1% of the portfolio, in the Technology
Development Account, an account that shall be maintained
separately and apart from other moneys invested by the
Treasurer. The Treasurer may make investments from the
Account that help attract, assist, and retain quality
technology businesses in Illinois. The earnings on the
Account shall be accounted for separately from other
investments made by the Treasurer.
(b) Moneys in the Account may be invested by the State
Treasurer to provide venture capital to technology businesses
seeking to locate, expand, or remain in Illinois by placing
money with Illinois venture capital firms for investment by
the venture capital firms in technology businesses. "Venture
capital", as used in this Act, means equity financing that is
provided for starting up, expanding, or relocating a company,
or related purposes such as financing for seed capital,
research and development, introduction of a product or
process into the marketplace, or similar needs requiring risk
capital. "Technology business", as used in this Act, means a
company that has as its principal function the providing of
services including computer, information transfer,
communication, distribution, processing, administrative,
laboratory, experimental, developmental, technical, testing
services, manufacture of goods or materials, the processing
of goods or materials by physical or chemical change,
computer related activities, robotics, biological or
pharmaceutical industrial activity, or technology oriented or
emerging industrial activity. "Illinois venture capital
firms", as used in this Act, means an entity that has a
majority of its employees in Illinois or that has at least
one managing partner domiciled in Illinois that has made
significant capital investments in Illinois companies and
that provides equity financing for starting up or expanding a
company, or related purposes such as financing for seed
capital, research and development, introduction of a product
or process into the marketplace, or similar needs requiring
risk capital.
(c) Any fund created by an Illinois venture capital firm
in which the State Treasurer places money pursuant to this
Act shall be required by the State Treasurer to seek
investments in technology businesses seeking to locate,
expand, or remain in Illinois.
(d) The investment of the State Treasurer in any fund
created by an Illinois venture capital firm in which the
State Treasurer places money pursuant to this Act shall not
exceed 10% of the total investments in the fund.
(e) The State Treasurer shall not invest more than
one-third of the Technology Development Account in any given
calendar year.
Section 15. Rules. The State Treasurer may promulgate
rules to implement this Act.
Section 90. The Deposit of State Moneys Act is amended
by changing Section 22.5 as follows:
(15 ILCS 520/22.5) (from Ch. 130, par. 41a)
Sec. 22.5. The State Treasurer may, with the approval of
the Governor, invest and reinvest any State money in the
treasury which is not needed for current expenditures due or
about to become due, in obligations of the United States
government or its agencies or of National Mortgage
Associations established by or under the National Housing
Act, 1201 U.S.C. 1701 et seq., or in mortgage participation
certificates representing undivided interests in specified,
first-lien conventional residential Illinois mortgages that
are underwritten, insured, guaranteed, or purchased by the
Federal Home Loan Mortgage Corporation or in Affordable
Housing Program Trust Fund Bonds or Notes as defined in and
issued pursuant to the Illinois Housing Development Act. All
such obligations shall be considered as cash and may be
delivered over as cash by a State Treasurer to his successor.
The State Treasurer may, with the approval of the
Governor, purchase any state bonds with any money in the
State Treasury that has been set aside and held for the
payment of the principal of and interest on the bonds. The
bonds shall be considered as cash and may be delivered over
as cash by the State Treasurer to his successor.
The State Treasurer may, with the approval of the
Governor, invest or reinvest any State money in the treasury
that is not needed for current expenditure due or about to
become due, or any money in the State Treasury that has been
set aside and held for the payment of the principal of and
the interest on any State bonds, in shares, withdrawable
accounts, and investment certificates of savings and building
and loan associations, incorporated under the laws of this
State or any other state or under the laws of the United
States; provided, however, that investments may be made only
in those savings and loan or building and loan associations
the shares and withdrawable accounts or other forms of
investment securities of which are insured by the Federal
Deposit Insurance Corporation.
The State Treasurer may not invest State money in any
savings and loan or building and loan association unless a
commitment by the savings and loan (or building and loan)
association, executed by the president or chief executive
officer of that association, is submitted in the following
form:
The .................. Savings and Loan (or Building
and Loan) Association pledges not to reject arbitrarily
mortgage loans for residential properties within any
specific part of the community served by the savings and
loan (or building and loan) association because of the
location of the property. The savings and loan (or
building and loan) association also pledges to make loans
available on low and moderate income residential property
throughout the community within the limits of its legal
restrictions and prudent financial practices.
The State Treasurer may, with the approval of the
Governor, invest or reinvest, at a price not to exceed par,
any State money in the treasury that is not needed for
current expenditures due or about to become due, or any money
in the State Treasury that has been set aside and held for
the payment of the principal of and interest on any State
bonds, in bonds issued by counties or municipal corporations
of the State of Illinois.
The State Treasurer may, with the approval of the
Governor, invest or reinvest any State money in the Treasury
which is not needed for current expenditure, due or about to
become due, or any money in the State Treasury which has been
set aside and held for the payment of the principal of and
the interest on any State bonds, in participations in loans,
the principal of which participation is fully guaranteed by
an agency or instrumentality of the United States government;
provided, however, that such loan participations are
represented by certificates issued only by banks which are
incorporated under the laws of this State or any other state
or under the laws of the United States, and such banks, but
not the loan participation certificates, are insured by the
Federal Deposit Insurance Corporation.
The State Treasurer may, with the approval of the
Governor, invest or reinvest any State money in the Treasury
that is not needed for current expenditure, due or about to
become due, or any money in the State Treasury that has been
set aside and held for the payment of the principal of and
the interest on any State bonds, in any of the following:
(1) Bonds, notes, certificates of indebtedness,
Treasury bills, or other securities now or hereafter
issued that are guaranteed by the full faith and credit
of the United States of America as to principal and
interest.
(2) Bonds, notes, debentures, or other similar
obligations of the United States of America, its
agencies, and instrumentalities.
(3) Interest-bearing savings accounts,
interest-bearing certificates of deposit,
interest-bearing time deposits, or any other investments
constituting direct obligations of any bank as defined by
the Illinois Banking Act.
(4) Interest-bearing accounts, certificates of
deposit, or any other investments constituting direct
obligations of any savings and loan associations
incorporated under the laws of this State or any other
state or under the laws of the United States.
(5) Dividend-bearing share accounts, share
certificate accounts, or class of share accounts of a
credit union chartered under the laws of this State or
the laws of the United States; provided, however, the
principal office of the credit union must be located
within the State of Illinois.
(6) Bankers' acceptances of banks whose senior
obligations are rated in the top 2 rating categories by 2
national rating agencies and maintain that rating during
the term of the investment.
(7) Short-term obligations of corporations
organized in the United States with assets exceeding
$500,000,000 if (i) the obligations are rated at the time
of purchase at one of the 3 highest classifications
established by at least 2 standard rating services and
mature not later than 180 days from the date of purchase,
(ii) the purchases do not exceed 10% of the corporation's
outstanding obligations, and (iii) no more than one-third
of the public agency's funds are invested in short-term
obligations of corporations.
(8) Money market mutual funds registered under the
Investment Company Act of 1940, provided that the
portfolio of the money market mutual fund is limited to
obligations described in this Section and to agreements
to repurchase such obligations.
(9) The Public Treasurers' Investment Pool created
under Section 17 of the State Treasurer Act or in a fund
managed, operated, and administered by a bank.
(10) Repurchase agreements of government securities
having the meaning set out in the Government Securities
Act of 1986 subject to the provisions of that Act and the
regulations issued thereunder.
(11) Investments made in accordance with the
Technology Development Act.
For purposes of this Section, "agencies" of the United
States Government includes:
(i) the federal land banks, federal intermediate
credit banks, banks for cooperatives, federal farm credit
banks, or any other entity authorized to issue debt
obligations under the Farm Credit Act of 1971 (12 U.S.C.
2001 et seq.) and Acts amendatory thereto;
(ii) the federal home loan banks and the federal
home loan mortgage corporation;
(iii) the Commodity Credit Corporation; and
(iv) any other agency created by Act of Congress.
The Treasurer may, with the approval of the Governor,
lend any securities acquired under this Act. However,
securities may be lent under this Section only in accordance
with Federal Financial Institution Examination Council
guidelines and only if the securities are collateralized at a
level sufficient to assure the safety of the securities,
taking into account market value fluctuation. The securities
may be collateralized by cash or collateral acceptable under
Sections 11 and 11.1.
(Source: P.A. 90-655, eff. 7-30-98.)
Section 99. Effective date. This Act takes effect upon
becoming law.
Passed in the General Assembly May 29, 2002.
Approved August 26, 2002.
Effective August 26, 2002.
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