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92_HB3181 LRB9206835JSpc 1 AN ACT concerning insurance industry investments. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 1. Short title. This Act may be cited as the 5 Insurance Industry Investment Equity Fund Act. 6 Section 5. Insurance Industry Investment Equity Board. 7 (a) There is created the Insurance Industry Investment 8 Equity Board. The Board shall consist of 9 members, one of 9 whom shall be the Director of Insurance, who shall serve ex 10 officio, and one of whom shall be the managing officer of the 11 fiscal agent hired by the Department of Insurance. The 12 Governor shall appoint the remaining 7 members. Three of the 13 members shall represent participating insurers, 3 of the 14 members shall represent entities eligible for funding, and 15 one member shall be an employee the Department of Insurance. 16 An appointed member shall serve for a term of 5 years, except 17 that in making the initial appointments, the Governor shall 18 appoint one member to serve for a term of one year, one 19 member to serve for a term of 2 years, 2 members to serve for 20 a term of 3 years, 2 members to serve for a term of 4 years, 21 and one member to serve for a term of 5 years. A member is 22 eligible for reappointment to the Board. 23 (b) Members shall serve without compensation, but 24 members who are not employees of the State or of the fiscal 25 agent are entitled to reimbursement for their reasonable and 26 necessary expenses incurred in the performance of their 27 official duties. 28 Section 10. Participating investors. 29 (a) Insurance companies authorized to transact an 30 insurance business in this State may participate in the -2- LRB9206835JSpc 1 Insurance Industry Investment Equity Fund. Insurance 2 companies that possess excess surplus, as defined by the 3 Department of Insurance, must participate in the Insurance 4 Industry Investment Equity Fund with a minimum investment of 5 $1,000,000. 6 (b) The Department of Insurance must identify all 7 insurance companies that possess excess surplus and notify 8 them of this required investment. 9 Section 15. Fiscal agent. The Department of Insurance 10 shall hire a fiscal agent to manage the responsibilities of 11 the Insurance Industry Investment Equity Fund as determined 12 by the Insurance Industry Investment Equity Board. The 13 responsibilities of the Insurance Industry Investment Equity 14 Fund include, but are not limited to, designing, marketing, 15 and underwriting loan and equity products. 16 Section 20. Eligible recipients of Insurance Industry 17 Investment Equity Fund investment capital. Investment 18 capital from the Insurance Industry Investment Equity Fund 19 may be invested with community development financial 20 institutions certified by the United States Treasury and with 21 not-for-profit community development organizations that have 22 received an exemption under Section 501(c)(3) of the Internal 23 Revenue Code and are certified by the Secretary of State to 24 be in good standing. 25 Section 25. Eligible functions of investment capital. 26 (a) The Insurance Industry Investment Equity Board shall 27 establish the eligible functions of the investment capital 28 that is awarded to eligible recipients. In establishing the 29 eligible functions of investment capital, the Insurance 30 Industry Investment Equity Board must consider, at a minimum, 31 the requirements of subsections (b) and (c) of this Section. -3- LRB9206835JSpc 1 (b) A portion of the available investment capital must 2 be made available for eligible recipients to use as real 3 estate development equity. The Insurance Industry Investment 4 Equity Board shall determine the return on investment 5 requirements and length of investment for this type of 6 investment on a project-by-project basis. The Insurance 7 Industry Investment Equity Board must establish eligibility 8 and underwriting guidelines for this type of investment. 9 (c) A portion of the available investment capital must 10 be made available for eligible recipients to use for 11 equity-like investments. The Insurance Industry Investment 12 Equity Board shall determine the return on investment 13 requirements for this type of investment on a 14 project-by-project basis. The term of the investment may not 15 exceed 15 years. The investment capital for this type of 16 investment shall be made available on an unsecured basis. 17 The Insurance Industry Investment Equity Board shall give 18 priority to eligible recipients seeking community development 19 financial institution investment matches. The Insurance 20 Industry Investment Equity Board must establish eligibility 21 and underwriting guidelines for this type of investment. 22 Section 30. Administration of Act; rules. The 23 Department of Insurance shall administer this Act. The 24 Department of Insurance may issue rules necessary to 25 administer this Act. 26 Section 99. Effective date. This Act takes effect upon 27 becoming law.
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