Public Act 100-1081
 
SB3205 EnrolledLRB100 18941 RJF 34191 b


  
    AN ACT concerning finance.
  
 
    Be it enacted by the People of the State of Illinois,
 
represented in the General Assembly:
  
 
 
    Section 5. The Technology Development Act is amended  by 
changing Sections 5 and 11 as follows:
 



    (30 ILCS 265/5)



    Sec. 5. Policy. The Illinois General Assembly finds that it 
is important
for the
State to encourage technology development 
in the State.  The purpose of this
Act is to
attract, assist, 
and retain quality technology businesses and promote the growth 
of jobs and entrepreneurial and venture capital environments in 
Illinois.  The
creation of the
Technology Development Account 
will allow the State to bring together, and add
to,
Illinois'

rich science, technology, agricultural, financial, and 
business communities.

(Source: P.A. 92-851, eff. 8-26-02.)

 
    (30 ILCS 265/11)
    Sec. 11. Technology Development Account II.
    (a) Including In addition to the amount provided in Section 
10 of this Act, the State Treasurer shall may segregate a 
portion of the Treasurer's State investment portfolio, that at 
no time shall be greater than 5% 2% of the portfolio, in the 
Technology Development Account IIa ("TDA IIa"), an account that 
shall be maintained separately and apart from other moneys 
invested by the Treasurer. Distributions from the investments 
in TDA IIa may be reinvested into TDA IIa without being counted 
against the 5% 2% cap. The aggregate investment in TDA IIa and 
the aggregate commitment of investment capital in a TDA 
II-Recipient Fund shall at no time be greater than 5% of the 
State's investment portfolio, which shall be calculated as: (1) 
the balance at the inception of the State's fiscal year; or (2) 
the average balance in the immediately preceding 5 fiscal 
years, whichever number is greater. Distributions from a TDA 
II-Recipient Fund, in an amount not to exceed the commitment 
amount, may be reinvested into TDA IIa without being counted 
against the 5% cap. The Treasurer may make investments from TDA 
IIa that help attract, assist, and retain quality technology 
businesses in Illinois. The earnings on TDA IIa shall be 
accounted for separately from other investments made by the 
Treasurer.
    (b) The Treasurer may solicit proposals from entities to 
manage and be the General Partner of a separate fund 
("Technology Development Account IIb" or "TDA IIb") consisting 
of investments from private sector investors that must invest, 
at the direction of the general partner Treasurer, in tandem 
with TDA IIa in a pro-rata portion. The Treasurer may enter 
into an agreement with the entity managing TDA IIb to advise on 
the investment strategy of TDA IIa and TDA IIb (collectively 
"Technology Development Account II" or "TDA II") and fulfill 
other mutually agreeable terms. Funds in TDA IIb shall be kept 
separate and apart from moneys in the State treasury.
    (c) All or a portion of the moneys Moneys in TDA IIa shall 
may be invested by the State Treasurer to provide venture 
capital to technology businesses, including co-investments, 
seeking to locate, expand, or remain in Illinois by placing 
money with Illinois venture capital firms for investment by the 
venture capital firms in technology businesses. "Venture 
capital", as used in this Section, means equity financing that 
is provided for starting up, expanding, or relocating a 
company, or related purposes such as financing for seed 
capital, research and development, introduction of a product or 
process into the marketplace, or similar needs requiring risk 
capital. "Technology business", as used in this Section, means 
a company that has as its principal function the providing of 
services, including computer, information transfer, 
communication, distribution, processing, administrative, 
laboratory, experimental, developmental, technical, or testing 
services; , manufacture of goods or materials; , the processing 
of goods or materials by physical or chemical change; , computer 
related activities; , robotics, biological, or pharmaceutical 
industrial activities; activity, or technology-oriented 
technology oriented or emerging industrial activity. "Illinois 
venture capital firm", as used in this Section, means an entity 
that: (1) has a majority of its employees in Illinois (more 
than 50%) or that has at least one general managing partner or 
principal member of the general partner domiciled in Illinois, 
and that (2) provides equity financing for starting up or 
expanding a company, or related purposes such as financing for 
seed capital, research and development, introduction of a 
product or process into the marketplace, or similar needs 
requiring risk capital. "Illinois venture capital firm" may 
also mean an entity that has a track record of identifying, 
evaluating, and investing in Illinois companies and that 
provides equity financing for starting up or expanding a 
company, or related purposes such as financing for seed 
capital, research and development, introduction of a product or 
process into the marketplace, or similar needs requiring risk 
capital. For purposes of this Section, "track record" means 
having made, on average, at least one investment in an Illinois 
company in each of its funds if the Illinois venture capital 
firm has multiple funds or at least 2 investments in Illinois 
companies if the Illinois venture capital firm has only one 
fund. In no case shall more than 15% 10% of the capital in the 
TDA IIa be invested in firms based outside of Illinois.
    (d) Any fund created by an Illinois venture capital firm in 
which the State Treasurer places money pursuant to this Section 
shall be required by the State Treasurer to seek investments in 
technology businesses seeking to locate, expand, or remain in 
Illinois. Any fund created by an Illinois venture capital firm 
in which the State Treasurer places money under this Section 
("TDA II-Recipient Fund") shall invest a minimum of twice (2x) 
the aggregate amount of investable capital that is received 
from the State Treasurer under this Section in Illinois 
companies during the life of the fund. "Illinois companies", as 
used in this Section, are companies that are headquartered or 
that otherwise have a significant presence in the State at the 
time of initial or follow-on investment.  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. 
For the purposes of this subsection (d), "significant presence" 
means at least one physical office and one full-time employee 
within the geographic borders of this State. 
    Any TDA II-Recipient Fund  shall also invest additional 
capital in Illinois companies 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.
    In addition to any reporting requirements set forth in 
Section 10 of this Act, any TDA II-Recipient Fund shall report 
the following additional information to the Treasurer on a 
quarterly or annual basis, as determined by the Treasurer, for 
all investments:
        (1) the names of portfolio companies invested in during 
    the applicable investment period;
        (2) the addresses of reported portfolio companies;
        (3) the date of the initial (and follow-on) investment;
        (4) the cost of the investment;
        (5) the current fair market value of the investment;
        (6) for Illinois companies, the number of Illinois 
    employees on the investment date; and
        (7) for Illinois companies, the current number of 
    Illinois employees.
    If, as of the earlier to occur of (i) the fourth year of 
the investment period of any TDA II-Recipient Fund or (ii) when 
that TDA II-Recipient Fund has drawn more than 60% of the 
investable capital of all limited partners, that TDA 
II-Recipient Fund has failed to invest the minimum amount 
required under this subsection (d) in Illinois companies, then 
the Treasurer shall  deliver written notice to the manager of 
that fund seeking compliance with the minimum amount 
requirement under this subsection (d).  If,  after 180 days of 
delivery of notice, the TDA II-Recipient Fund has still failed 
to invest the minimum amount required under this subsection (d) 
in Illinois companies, then the 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.
    (e) Notwithstanding the limitation found in subsection (d) 
of Section 10 of this Act, the investment of the State 
Treasurer in any fund created by an Illinois venture capital 
firm in which the State Treasurer places money pursuant to this 
Section shall not exceed 15% of the total TDA IIa account 
balance investments in the fund.
    (f) (Blank). The State Treasurer shall not invest more than 
one-third of Technology Development Account II in any given 
calendar year. If in any calendar year less than one-third of 
Technology Development Account II is invested, 50% of the 
shortfall may be invested in the following calendar year in 
addition to the regular one-third investment.
    (g) The Treasurer may deposit no more than 10% of the 
earnings of the investments in the Technology Development 
Account IIa into the Technology Development Fund. 

(Source: P.A. 97-197, eff. 7-25-11.)
  
 
 
    Section 99. Effective date. This Act takes effect upon 
becoming law.