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| Public Act 102-0141 | ||||
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AN ACT concerning State government.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 1. Short title. This Act may be cited as the | ||||
Infrastructure Development Act. | ||||
Section 5. Definitions. As used in this Act:
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"Development capital" means financing for investments in | ||||
which the underlying assets involve direct ownership of | ||||
non-financial assets for developing or expanding in Illinois.
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"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.
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"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.
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"Significant presence" means at least one physical office | ||
and one full-time employee within the geographic borders of | ||
this State.
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"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.
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Section 10. Infrastructure Development Account.
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(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.
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(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.
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(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.
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(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.
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(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:
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(1) is consistent with the firm's fiduciary | ||
responsibility to its limited partners;
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(2) is consistent with the fund manager's investment | ||
strategy; and
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(3) demonstrates the potential to create risk-adjusted | ||
financial returns consistent with the fund manager's | ||
investment goals.
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(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:
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(1) the names of companies or infrastructure | ||
development projects invested in during the applicable | ||
investment period;
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(2) the geographic location of infrastructure | ||
development projects;
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(3) the date of the initial and any follow-on | ||
investments;
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(4) the cost of the investment; and
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(5) the current fair market value of the investment.
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(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.
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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.
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Section 99. Effective date. This Act takes effect upon | ||
becoming law.
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