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 1        AN ACT concerning technology development.

 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    changing Section 10 and adding Section 20 as follows:

 6        (30 ILCS 265/10)
 7        Sec. 10.  Technology Development Account.
 8        (a)  The State Treasurer may segregate a portion  of  the
 9    Treasurer's  investment  portfolio,  that at no time shall be
10    greater  than  1%  of  the  portfolio,  in   the   Technology
11    Development  Account,  an  account  that  shall be maintained
12    separately and  apart  from  other  moneys  invested  by  the
13    Treasurer.   The  Treasurer  may  make  investments  from the
14    Account  that  help  attract,  assist,  and  retain   quality
15    technology  businesses  in  Illinois.   The  earnings  on the
16    Account  shall  be  accounted  for  separately   from   other
17    investments made by the Treasurer.
18        (b)  Moneys  in  the Account may be invested by the State
19    Treasurer to provide venture capital to technology businesses
20    seeking to locate, expand, or remain in Illinois  by  placing
21    money  with  Illinois venture capital firms for investment by
22    the venture capital firms in technology businesses.  "Venture
23    capital", as used in this Act, means equity financing that is
24    provided for starting up, expanding, or relocating a company,
25    or related purposes  such  as  financing  for  seed  capital,
26    research  and  development,  introduction  of  a  product  or
27    process into the marketplace, or similar needs requiring risk
28    capital.  "Technology business", as used in this Act, means a
29    company  that  has as its principal function the providing of
30    services   including    computer,    information    transfer,
31    communication,   distribution,   processing,  administrative,
 
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 1    laboratory, experimental, developmental,  technical,  testing
 2    services,  manufacture  of goods or materials, the processing
 3    of  goods  or  materials  by  physical  or  chemical  change,
 4    computer  related   activities,   robotics,   biological   or
 5    pharmaceutical industrial activity, or technology oriented or
 6    emerging  industrial  activity.   "Illinois  venture  capital
 7    firms",  as  used  in  this  Act,  means an entity that has a
 8    majority of its employees in Illinois or that  has  at  least
 9    one  managing  partner  domiciled  in  Illinois that has made
10    significant capital investments  in  Illinois  companies  and
11    that provides equity financing for starting up or expanding a
12    company,  or  related  purposes  such  as  financing for seed
13    capital, research and development, introduction of a  product
14    or  process  into the marketplace, or similar needs requiring
15    risk capital.
16        (c)  Any fund created by an Illinois venture capital firm
17    in which the State Treasurer places money  pursuant  to  this
18    Act  shall  be  required  by  the  State  Treasurer  to  seek
19    investments  in  technology  businesses  seeking  to  locate,
20    expand, or remain in Illinois.
21        (d)  The  investment  of  the State Treasurer in any fund
22    created by an Illinois venture  capital  firm  in  which  the
23    State  Treasurer  places money pursuant to this Act shall not
24    exceed 10% of the total investments in the fund.
25        (e)  The State  Treasurer  shall  not  invest  more  than
26    one-third  of the Technology Development Account in any given
27    calendar year.
28        (f)  The Treasurer may deposit no more than  10%  of  the
29    earnings  of  the  investments  in the Technology Development
30    Account into the Technology Development Fund.
31    (Source: P.A. 92-851, eff. 8-26-02.)

32        (30 ILCS 265/20 new)
33        Sec. 20.  Technology  Development  Fund.  The  Technology
 
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 1    Development  Fund  is  created  as a special fund outside the
 2    State treasury with the State Treasurer as custodian.  Moneys
 3    in  the  Fund  may  be  used  by  the  State Treasurer to pay
 4    expenses  related  to   investments   from   the   Technology
 5    Development  Account.  Moneys  in the Fund in excess of those
 6    expenses may be provided as grants  to  Illinois  schools  to
 7    purchase computers and to upgrade technology.

 8        Section  99.  Effective date.  This Act takes effect upon
 9    becoming law.