101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB4620

 

Introduced 2/5/2020, by Rep. Michael Halpin

 

SYNOPSIS AS INTRODUCED:
 
New Act
30 ILCS 105/5.930 new

    Creates the Infrastructure Development Act. Provides that the State Treasurer shall segregate a portion of the Treasurer's State investment portfolio in the Infrastructure Development Account, an account that shall be maintained separately and apart from other moneys invested by the State Treasurer. Allows the State Treasurer to make investments concerning the Infrastructure Development Account. Provides for Infrastructure Development Account-Recipient Funds created by Illinois infrastructure development firms in which the State Treasurer places money. Provides further requirements concerning Infrastructure Development Account-Recipient Funds. Provides for the adoption rules. Provides that the Infrastructure Development Fund is created as a special fund in the State treasury, which may receive a portion of earnings from the Infrastructure Development Account and may be used by the State Treasurer to pay expenses related to the Act. Defines terms. Amends the State Finance Act to provide for the Infrastructure Development Fund. Effective immediately.


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A BILL FOR

 

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1    AN ACT concerning State government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Short title. This Act may be cited as the
5Infrastructure Development Act.
 
6    Section 5. Definitions. As used in this Act:
7    "Development capital" means financing for investments in
8which the underlying assets involve direct ownership of
9non-financial assets for developing or expanding in Illinois.
10    "Illinois infrastructure development firm" means an entity
11that: (i) has more than 50% of its employees in Illinois or
12that has at least one general partner or principal domiciled in
13Illinois; (ii) provides financing for investments in which the
14underlying assets involve direct ownership of non-financial
15assets to develop or expand in Illinois; or (iii) has a track
16record of identifying, evaluating, and investing in Illinois
17infrastructure development projects and providing financing
18for investments in which the underlying assets involve direct
19ownership of non-financial assets to develop or expand in
20Illinois.
21    "Illinois infrastructure development projects" means a
22project that has as its principal function investing in real
23assets to develop economic and social infrastructure

 

 

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1including, but not limited to, land, buildings,
2transportation, utilities, communication, renewable energy,
3schools, healthcare, and other real assets.
4    "Significant presence" means at least one physical office
5and one full-time employee within the geographic borders of
6this State.
7    "Track record" means having made, on average, at least one
8investment in an Illinois infrastructure development project
9in each of its funds if the Illinois infrastructure development
10firm has multiple funds or at least 2 investments in Illinois
11infrastructure development projects if the Illinois
12infrastructure development firm has only one fund.
 
13    Section 10. Infrastructure Development Account.
14    (a) The State Treasurer shall segregate a portion of the
15Treasurer's State investment portfolio, which at no time shall
16be greater than 5% of the portfolio, in the Infrastructure
17Development Account, an account that shall be maintained
18separately and apart from other moneys invested by the State
19Treasurer. Distributions from the investments in the
20Infrastructure Development Account may be reinvested into the
21Infrastructure Development Account without being counted
22against the 5% cap. The aggregate investment in the
23Infrastructure Development Account and the aggregate
24commitment of investment capital in an Infrastructure
25Development Account-Recipient Fund shall at no time be greater

 

 

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1than 5% of the State's investment portfolio, which shall be
2calculated as: (i) the balance at the inception of the State
3fiscal year; or (ii) the average balance in the immediately
4preceding 5 fiscal years, whichever number is greater.
5Distributions from an Infrastructure Development
6Account-Recipient Fund, in an amount not to exceed the
7commitment amount and the total distributions, may be
8reinvested into the Infrastructure Development Account without
9being counted against the 5% cap. The State Treasurer may make
10investments from the Infrastructure Development Account that
11help attract, assist, and support quality infrastructure
12development projects in Illinois. A portion of the investment
13earnings on the Infrastructure Development Account may be
14deposited into the Infrastructure Development Fund and
15reinvested by the State Treasurer.
16    (b) The State Treasurer may solicit proposals from entities
17to manage the Infrastructure Development Account consisting of
18investments from private sector investors that must invest, at
19the direction of the general partner, in tandem with the
20Infrastructure Development Account in a pro-rata portion. The
21State Treasurer may enter into an agreement with the entity
22managing the Infrastructure Development Account to advise on
23the investment strategy of the Infrastructure Development
24Account and fulfill other mutually agreeable terms. Funds in
25the Infrastructure Development Account shall be kept separate
26and apart from moneys in the State treasury.

 

 

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1    (c) All or a portion of the moneys in the Infrastructure
2Development Account shall be invested by the State Treasurer to
3provide development capital to infrastructure development
4projects, seeking to locate, expand, or remain in Illinois by
5placing money with Illinois infrastructure development firms.
6In no case shall more than 15% of the capital in the
7Infrastructure Development Account be invested in firms based
8outside of Illinois.
9    (d) Any Infrastructure Development Account-Recipient Fund
10created by an Illinois infrastructure development firm in which
11the State Treasurer places money pursuant to this Section shall
12be required by the State Treasurer to seek investments in
13Illinois infrastructure development projects seeking to
14locate, expand, or remain in Illinois. Any Infrastructure
15Development Account-Recipient Fund created by an Illinois
16infrastructure development firm in which the State Treasurer
17places money under this Section shall invest a minimum of twice
18the aggregate amount of investable capital that is received
19from the State Treasurer under this Section in Illinois
20infrastructure development projects during the life of the
21fund. Investable capital is calculated as committed capital, as
22defined in the firm's applicable fund's governing documents,
23less related estimated fees and expenses to be incurred during
24the life of the fund.
25    (e) All Infrastructure Development Account-Recipient Funds
26shall also invest additional capital in Illinois

 

 

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1infrastructure development projects during the life of the fund
2if, 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
11shall report the following information to the State Treasurer
12on a quarterly or annual basis, as determined by the State
13Treasurer, 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
24of the investment period of any Infrastructure Development
25Account-Recipient Fund or (ii) when that Infrastructure
26Development Account-Recipient Fund has drawn more than 60% of

 

 

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1the investable capital of all limited partners, that
2Infrastructure Development Account-Recipient Fund has failed
3to invest the minimum amount required under this Section in
4Illinois infrastructure development projects, then the State
5Treasurer shall deliver written notice to the manager of that
6fund seeking compliance with the minimum amount requirement
7under this Section. If, after 180 days after delivery of
8notice, the Infrastructure Development Account-Recipient Fund
9has still failed to invest the minimum amount required under
10this Section in Illinois companies, then the State Treasurer
11may elect, in writing, to terminate any further commitment to
12make capital contributions to that fund which otherwise would
13have been made under this Section.
 
14    Section 15. Rules. The State Treasurer may adopt rules
15necessary to implement this Act.
 
16    Section 20. Infrastructure Development Fund. The
17Infrastructure Development Fund is created as a special fund in
18the State treasury, which may receive a portion of earnings
19from the Infrastructure Development Account and may be used by
20the State Treasurer to pay expenses related to this Act.
 
21    Section 90. The State Finance Act is amended by adding
22Section 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
4becoming law.