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Public Act 102-0141


 

Public Act 0141 102ND GENERAL ASSEMBLY

  
  
  

 


 
Public Act 102-0141
 
SB0117 EnrolledLRB102 04337 RJF 14355 b

    AN ACT concerning State government.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 1. Short title. This Act may be cited as the
Infrastructure Development Act.
 
    Section 5. Definitions. As used in this Act:
    "Development capital" means financing for investments in
which the underlying assets involve direct ownership of
non-financial assets for developing or expanding in Illinois.
    "Illinois infrastructure development firm" means an entity
that: (i) has more than 50% of its employees in Illinois or
that has at least one general partner or principal domiciled
in Illinois; (ii) provides financing for investments in which
the underlying assets involve direct ownership of
non-financial assets to develop or expand in Illinois; or
(iii) has a track record of identifying, evaluating, and
investing in Illinois infrastructure development projects and
providing financing for investments in which the underlying
assets involve direct ownership of non-financial assets to
develop or expand in Illinois.
    "Illinois infrastructure development project" means a
project that has as its principal function investing in real
assets to develop economic and social infrastructure
including, but not limited to, land, buildings,
transportation, utilities, communication, renewable energy,
schools, healthcare, and other real assets.
    "Significant presence" means at least one physical office
and one full-time employee within the geographic borders of
this State.
    "Track record" means having made, on average, at least one
investment in an Illinois infrastructure development project
in each of its funds if the Illinois infrastructure
development firm has multiple funds or at least 2 investments
in Illinois infrastructure development projects if the
Illinois infrastructure development firm has only one fund.
 
    Section 10. Infrastructure Development Account.
    (a) The State Treasurer shall segregate a portion of the
Treasurer's State investment portfolio, which at no time shall
be greater than 5% of the portfolio, in the Infrastructure
Development Account, an account that shall be maintained
separately and apart from other moneys invested by the State
Treasurer. Distributions from the investments in the
Infrastructure Development Account may be reinvested into the
Infrastructure Development Account without being counted
against the 5% cap. The aggregate investment in the
Infrastructure Development Account and the aggregate
commitment of investment capital in an Infrastructure
Development Account-Recipient Fund shall at no time be greater
than 5% of the State's investment portfolio, which shall be
calculated as: (i) the balance at the inception of the State
fiscal year; or (ii) the average balance in the immediately
preceding 5 fiscal years, whichever number is greater.
Distributions from an Infrastructure Development
Account-Recipient Fund, in an amount not to exceed the
commitment amount and the total distributions, may be
reinvested into the Infrastructure Development Account without
being counted against the 5% cap. The State Treasurer may make
investments from the Infrastructure Development Account that
help attract, assist, and support quality infrastructure
development projects in Illinois. A portion of the investment
earnings on the Infrastructure Development Account may be
deposited into the Infrastructure Development Fund and
reinvested by the State Treasurer.
    (b) The State Treasurer may solicit proposals from
entities to manage the Infrastructure Development Account
consisting of investments from private sector investors that
must invest, at the direction of the general partner, in
tandem with the Infrastructure Development Account in a
pro-rata portion. The State Treasurer may enter into an
agreement with the entity managing the Infrastructure
Development Account to advise on the investment strategy of
the Infrastructure Development Account and fulfill other
mutually agreeable terms. Funds in the Infrastructure
Development Account shall be kept separate and apart from
moneys in the State treasury.
    (c) All or a portion of the moneys in the Infrastructure
Development Account shall be invested by the State Treasurer
to provide development capital to infrastructure development
projects, seeking to locate, expand, or remain in Illinois by
placing money with Illinois infrastructure development firms.
In no case shall more than 15% of the capital in the
Infrastructure Development Account be invested in firms based
outside of Illinois.
    (d) Any Infrastructure Development Account-Recipient Fund
created by an Illinois infrastructure development firm in
which the State Treasurer places money pursuant to this
Section shall be required by the State Treasurer to seek
investments in Illinois infrastructure development projects
seeking to locate, expand, or remain in Illinois. Any
Infrastructure Development Account-Recipient Fund created by
an Illinois infrastructure development firm in which the State
Treasurer places money under this Section shall invest a
minimum of twice the aggregate amount of investable capital
that is received from the State Treasurer under this Section
in Illinois infrastructure development projects during the
life of the fund. Investable capital is calculated as
committed capital, as defined in the firm's applicable fund's
governing documents, less related estimated fees and expenses
to be incurred during the life of the fund.
    (e) All Infrastructure Development Account-Recipient Funds
shall also invest additional capital in Illinois
infrastructure development projects during the life of the
fund if, as determined by the fund's manager, the investment:
        (1) is consistent with the firm's fiduciary
    responsibility to its limited partners;
        (2) is consistent with the fund manager's investment
    strategy; and
        (3) demonstrates the potential to create risk-adjusted
    financial returns consistent with the fund manager's
    investment goals.
    (f) All Infrastructure Development Account-Recipient Funds
shall report the following information to the State Treasurer
on a quarterly or annual basis, as determined by the State
Treasurer, for all investments, including but not limited to:
        (1) the names of companies or infrastructure
    development projects invested in during the applicable
    investment period;
        (2) the geographic location of infrastructure
    development projects;
        (3) the date of the initial and any follow-on
    investments;
        (4) the cost of the investment; and
        (5) the current fair market value of the investment.
    (g) If, as of the earlier to occur of (i) the fourth year
of the investment period of any Infrastructure Development
Account-Recipient Fund or (ii) when that Infrastructure
Development Account-Recipient Fund has drawn more than 60% of
the investable capital of all limited partners, that
Infrastructure Development Account-Recipient Fund has failed
to invest the minimum amount required under this Section in
Illinois infrastructure development projects, then the State
Treasurer shall deliver written notice to the manager of that
fund seeking compliance with the minimum amount requirement
under this Section. If, after 180 days after delivery of
notice, the Infrastructure Development Account-Recipient Fund
has still failed to invest the minimum amount required under
this Section in Illinois companies, then the State Treasurer
may elect, in writing, to terminate any further commitment to
make capital contributions to that fund which otherwise would
have been made under this Section.
 
    Section 15. Rules. The State Treasurer may adopt rules
necessary to implement this Act.
 
    Section 20. Infrastructure Development Fund. The
Infrastructure Development Fund is created as a
non-appropriated trust fund within 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 this Act.
 
    Section 90. The State Finance Act is amended by adding
Section 5.935 as follows:
 
    (30 ILCS 105/5.935 new)
    Sec. 5.935. The Infrastructure Development Fund.
 
    Section 99. Effective date. This Act takes effect upon
becoming law.

Effective Date: 7/23/2021