HB5452 EnrolledLRB097 19625 PJG 64879 b

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 5. The Illinois Finance Authority Act is amended by
5changing Sections 810-20 and 840-20 as follows:
6    (20 ILCS 3501/810-20)
7    Sec. 810-20. Powers and Duties; Illinois Venture
8Investment Fund Limits. The Authority shall invest and reinvest
9the Fund and the income, thereof, in the following ways:
10    (a) To make a direct investment in qualified securities
11issued by enterprises and to dispose of those securities within
1210 years after the date of the direct investment as determined
13by the Authority for the purpose of providing venture capital
14or seed capital, provided that the investment shall not exceed
1549% of the estimated cost of development, testing, and initial
16production and marketing and associated working capital for the
17technology, product, process, or invention, or $750,000,
18whichever is less;
19    (b) To enter into written agreements or contracts
20(including limited partnership agreements) with one or more
21professional investors or one or more seed capital investors,
22if any, for the purpose of establishing a pool of funds to be
23used exclusively as venture capital or seed capital



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1investments. The Authority shall not invest more than
2$2,000,000 in a single pool of funds or affiliated pools of
3funds. The agreement or contract shall provide for the pool of
4funds to be managed by a professional investor. The manager may
5be the general partner of a limited partnership of which the
6Authority is a limited partner. The agreement or contract may
7provide for reimbursement of expenses of, and payment of a fee
8to, the manager. The agreement or contract may also provide for
9payment to the manager of a percentage, not to exceed 40%
10(computed on an annual basis), of cash and other property
11payable to the Authority as its pro-rata share of distributions
12to investors in the pool of funds, provided that (i) no amount
13shall be received by the manager upon sale or other disposition
14of qualified investments in enterprises until recovery by the
15Authority of its investment and upon liquidation or withdrawal
16of the Authority from the pool of funds, the manager shall be
17obligated to refund any amount received by it from such
18percentage if necessary to allow the Authority to recover its
19investment or (ii) the terms of payment of cash and other
20property to the Authority are no less favorable to the
21Authority than payments to other seed capital investors (other
22than the manager) who are parties to the agreement or contract.
23    (c) To make co-venture investments by entering into
24agreements with one or more professional investors or one or
25more seed capital investors, if any, who have formally agreed
26to invest at least 50% as much as the Authority invests in the



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1enterprise, for the purpose of providing venture capital or
2seed capital; but no more than $1,000,000 shall be invested by
3the Authority in the qualified securities of a single
4enterprise. A total of not more than $1,500,000 may be invested
5in the securities of a single enterprise, if the Authority
6shall find, after the initial investment by the Authority, that
7additional investments in the enterprise are necessary to
8protect or enhance the initial investment of the Authority.
9Each co-venture investment agreement shall provide that the
10Authority will recover its investment before or simultaneously
11with any distribution to participating professional investors
12or seed capital investors. The Authority and participating
13professional investors and seed capital investors shall share
14ratably in the profits earned in any form on the co-venture
15investment, but the Authority may, at its discretion, agree to
16pay to a participating professional investor a percentage, not
17to exceed 40% (computed on an annual basis), of cash and other
18property payable to the Authority as its pro-rata share of
19distributions to investors in the pool of funds, provided that
20(i) no amount shall be received by the participating
21professional investor upon sale or other disposition of
22qualified investments in the enterprises until recovery by the
23Authority of its investment and upon liquidation or withdrawal
24of the Authority from the pool of funds, the participating
25professional investor shall be obligated to refund any amount
26received by it from such percentage if necessary to allow the



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1Authority to recover its investment or (ii) the terms of
2payment of cash and other property to the Authority are no less
3favorable to the Authority than payments to other seed capital
4investors or professional investors (other than the
5professional investor) who are parties to the agreement or
7    (d) To purchase qualified securities of certified
8development corporations created under Section 503 of the
9federal Small Business Administration Act, including the
10Illinois Small Business Growth Corporation, for the purpose of
11making loans to enterprises that have the potential to create
12substantial employment within the State per dollar invested by
13the Authority, provided that the investment does not exceed 25%
14of the total investment in each corporation at the time the
15investment is approved by the Authority. Investment by the
16Authority in the Illinois Small Business Growth Corporation is
17not limited by the foregoing provision;
18    (e) To purchase qualified securities of small business
19investment companies and minority enterprise small business
20investment corporations certified by the federal Small
21Business Administration which are committed to making 60% of
22their investments in the State, provided that investments from
23the Fund do not exceed 25% of the total investment in these
24entities at the time the investment is approved by the
26    (f) To make the investments of any funds held in reserves



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1or sinking funds, or any funds not required for immediate
2disbursement, as may be lawful investments for fiduciaries in
3the State;
4    (g) To facilitate and promote the acquisition and
5revitalization of existing manufacturing enterprises by, at
6the Authority's discretion, developing and maintaining a list
7of firms, or divisions thereof, located within the State that
8are available for purchase, merger, or acquisition. The list
9may shall be made available at such charges as the Authority
10may determine to all interested persons and institutions upon
11request. No firm shall appear on the list without its prior
12written permission. The list may contain such additional
13financial, technical, market and other information as may be
14supplied by the listed firm. The Authority shall bear no
15responsibility for the accuracy of the information contained on
16the list, and each listed firm shall hold the Authority
17harmless against any claim of inaccuracy. Enterprises
18supported by investments from the Fund may shall receive
19consideration by the Authority in the allocation of loans to be
20insured or loans to be made from the proceeds of bonds to be
21insured by the Industrial Revenue Bond Insurance Fund
22established under this Article, and the Authority may shall
23coordinate its activities under the 2 programs.
24(Source: P.A. 93-205, eff. 1-1-04.)
25    (20 ILCS 3501/840-20)



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1    Sec. 840-20. It is the intent and purpose of this Act that
2the exercise by the Authority of the powers granted to it shall
3be in all respects for the benefit of the people of this State
4to assist them to provide needed health facilities of the
5number, size, type, distribution, and operation that will
6assure admission and care of high quality to all who need it.
7To this end, the Authority is charged with the responsibility
8to identify and study all projects which are determined by
9health planning agencies to be needed but which could not
10sustain a loan were such to be made to it under this Act. The
11Authority shall, following such study, formulate and recommend
12to the General Assembly, such amendments to this and other
13Acts, and such other specific measures as grants, loan
14guarantees, interest subsidies or other actions as may be
15provided for by the State which actions would render the
16construction and operation of such needed health facility
17feasible and in the public interest. Further, the Authority may
18is charged with responsibility to identify and study any laws
19or regulations which it finds handicaps or bars a needed health
20facility from participating in the benefits of this Act and may
21to recommend to the General Assembly such actions as will
22remedy such situation.
23(Source: P.A. 93-205, eff. 1-1-04.)
24    Section 99. Effective date. This Act takes effect upon
25becoming law.