Full Text of HB1381 97th General Assembly
HB1381 97TH GENERAL ASSEMBLY |
| | 97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012 HB1381 Introduced 2/14/2011, by Rep. Chris Nybo SYNOPSIS AS INTRODUCED: | | |
Amends the Technology Development Act. Authorizes the State Treasurer to segregate up to 2% of the Treasurer's investment portfolio in the Technology Development Account IIa. Authorizes investments from the account to provide venture capital to help attract, assist, and retain quality technology businesses in Illinois. Contains provisions concerning soliciting proposals from entities to manage and be the General Partner of Technology Development Account IIb, consisting of investments from the private sector that must invest, at the direction of the Treasurer, in tandem with TDA IIa. Sets restrictions and conditions. Effective immediately. |
| |
| | | FISCAL NOTE ACT MAY APPLY | |
| | A BILL FOR |
|
| | | HB1381 | | LRB097 05548 PJG 45609 b |
|
| 1 | | AN ACT concerning finance.
| 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 | | adding Section 11 as follows: | 6 | | (30 ILCS 265/11 new) | 7 | | Sec. 11. Technology Development Account II. | 8 | | (a) In addition to the amount provided in Section 10 of | 9 | | this Act, the State Treasurer may segregate a portion of the | 10 | | Treasurer's investment portfolio, that at no time shall be | 11 | | greater than 2% of the portfolio, in the Technology Development | 12 | | Account IIa ("TDA IIa"), an account that shall be maintained | 13 | | separately and apart from other moneys invested by the | 14 | | Treasurer. Distributions from the investments in TDA IIa may be | 15 | | reinvested into TDA IIa without being counted against the 2% | 16 | | cap. The Treasurer may make investments from TDA IIa that help | 17 | | attract, assist, and retain quality technology businesses in | 18 | | Illinois. The earnings on TDA IIa shall be accounted for | 19 | | separately from other investments made by the Treasurer. | 20 | | (b) The Treasurer may solicit proposals from entities to | 21 | | manage and be the General Partner of a separate fund | 22 | | ("Technology Development Account IIb" or "TDA IIb") consisting | 23 | | of investments from private sector investors that must invest, |
| | | HB1381 | - 2 - | LRB097 05548 PJG 45609 b |
|
| 1 | | at the direction of the Treasurer, in tandem with TDA IIa in a | 2 | | pro-rata portion. The Treasurer may enter into an agreement | 3 | | with the entity managing TDA IIb to advise on the investment | 4 | | strategy of TDA IIa and TDA IIb (collectively "Technology | 5 | | Development Account II" or "TDA II") and fulfill other mutually | 6 | | agreeable terms. Funds in TDA IIb shall be kept separate and | 7 | | apart from moneys in the State treasury. | 8 | | (c) Moneys in TDA IIa may be invested by the State | 9 | | Treasurer to provide venture capital to technology businesses | 10 | | seeking to locate, expand, or remain in Illinois by placing | 11 | | money with Illinois venture capital firms for investment by the | 12 | | venture capital firms in technology businesses. "Venture | 13 | | capital", as used in this Section, means equity financing that | 14 | | is provided for starting up, expanding, or relocating a | 15 | | company, or related purposes such as financing for seed | 16 | | capital, research and development, introduction of a product or | 17 | | process into the marketplace, or similar needs requiring risk | 18 | | capital. "Technology business", as used in this Section, means | 19 | | a company that has as its principal function the providing of | 20 | | services, including computer, information transfer, | 21 | | communication, distribution, processing, administrative, | 22 | | laboratory, experimental, developmental, technical, or testing | 23 | | services, manufacture of goods or materials, the processing of | 24 | | goods or materials by physical or chemical change, computer | 25 | | related activities, robotics, biological or pharmaceutical | 26 | | industrial activity, or technology oriented or emerging |
| | | HB1381 | - 3 - | LRB097 05548 PJG 45609 b |
|
| 1 | | industrial activity. "Illinois venture capital firm", as used | 2 | | in this Section, means an entity that has a majority of its | 3 | | employees in Illinois or that has at least one managing partner | 4 | | or member of the general partner domiciled in Illinois, and | 5 | | that provides equity financing for starting up or expanding a | 6 | | company, or related purposes such as financing for seed | 7 | | capital, research and development, introduction of a product or | 8 | | process into the marketplace, or similar needs requiring risk | 9 | | capital. "Illinois venture capital firm" may also mean an | 10 | | entity that has a track record of identifying, evaluating, and | 11 | | investing in Illinois companies and that provides equity | 12 | | financing for starting up or expanding a company, or related | 13 | | purposes such as financing for seed capital, research and | 14 | | development, introduction of a product or process into the | 15 | | marketplace, or similar needs requiring risk capital. For | 16 | | purposes of this Section, "track record" means having made, on | 17 | | average, at least one investment in an Illinois company in each | 18 | | of its funds if the Illinois venture capital firm has multiple | 19 | | funds or at least 2 investments in Illinois companies if the | 20 | | Illinois venture capital firm has only one fund. In no case | 21 | | shall more than 10% of the capital in the TDA IIa be invested | 22 | | in firms based outside of Illinois. | 23 | | (d) Any fund created by an Illinois venture capital firm in | 24 | | which the State Treasurer places money pursuant to this Section | 25 | | shall be required by the State Treasurer to seek investments in | 26 | | technology businesses seeking to locate, expand, or remain in |
| | | HB1381 | - 4 - | LRB097 05548 PJG 45609 b |
|
| 1 | | Illinois. | 2 | | (e) Notwithstanding the limitation found in subsection (d) | 3 | | of Section 10 of this Act, the investment of the State | 4 | | Treasurer in any fund created by an Illinois venture capital | 5 | | firm in which the State Treasurer places money pursuant to this | 6 | | Section shall not exceed 15% of the total investments in the | 7 | | fund. | 8 | | (f) The State Treasurer shall not invest more than | 9 | | one-third of Technology Development Account II in any given | 10 | | calendar year. If in any calendar year less than one-third of | 11 | | Technology Development Account II is invested, 50% of the | 12 | | shortfall may be invested in the following calendar year in | 13 | | addition to the regular one-third investment. | 14 | | (g) The Treasurer may deposit no more than 10% of the | 15 | | earnings of the investments in the Technology Development | 16 | | Account IIa into the Technology Development Fund.
| 17 | | Section 99. Effective date. This Act takes effect upon | 18 | | becoming law.
|
|