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| Public Act 097-0789 | ||||
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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 5. The Illinois Finance Authority Act is amended by | ||||
changing Sections 810-20 and 840-20 as follows:
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(20 ILCS 3501/810-20)
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Sec. 810-20. Powers and Duties; Illinois Venture | ||||
Investment Fund Limits. The
Authority shall invest and reinvest | ||||
the Fund and the income, thereof, in the
following ways:
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(a) To make a direct investment in qualified securities | ||||
issued by
enterprises
and to dispose of those securities within | ||||
10 years after the date of the direct
investment as determined | ||||
by the Authority for the purpose of providing venture
capital | ||||
or seed capital, provided that the investment shall not exceed | ||||
49% of
the estimated cost of development, testing, and initial | ||||
production and
marketing
and associated working capital for the | ||||
technology, product, process, or
invention, or $750,000, | ||||
whichever is less;
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(b) To enter into written agreements or contracts | ||||
(including limited
partnership agreements) with one or more | ||||
professional investors or one or more
seed capital investors, | ||||
if any, for the purpose of establishing a pool of funds
to be | ||||
used exclusively as venture capital or seed capital | ||||
investments. The
Authority shall not invest more than | ||
$2,000,000 in a single pool of funds or
affiliated pools of | ||
funds.
The agreement or contract shall provide for the pool of | ||
funds to be managed by
a professional investor. The manager may | ||
be the general partner of a limited
partnership of which the | ||
Authority is a limited partner.
The agreement or contract may | ||
provide for reimbursement of expenses of, and
payment of a fee | ||
to, the manager. The agreement or contract may also provide
for | ||
payment to the manager of a percentage, not to exceed 40% | ||
(computed on an
annual basis), of cash and other property | ||
payable to the Authority as its
pro-rata share of distributions | ||
to investors in the pool of funds, provided
that (i)
no amount | ||
shall be received by the manager upon sale or other disposition | ||
of
qualified investments in enterprises until recovery by the | ||
Authority of its
investment and upon liquidation or withdrawal | ||
of the Authority from the pool of
funds, the manager shall be | ||
obligated to refund any amount received by it from
such | ||
percentage if necessary to allow the Authority to recover its | ||
investment
or
(ii) the terms of payment of cash and other | ||
property to the Authority are no
less favorable to the | ||
Authority than payments to other seed capital investors
(other | ||
than the manager) who are parties to the agreement or contract.
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(c) To make co-venture investments by entering into | ||
agreements with one or
more
professional investors or one or | ||
more seed capital investors, if any, who have
formally agreed | ||
to invest at least 50% as much as the Authority invests in the
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enterprise, for the purpose of providing venture capital or | ||
seed capital; but
no more than $1,000,000 shall be invested by | ||
the Authority in the qualified
securities of a single | ||
enterprise. A total of not more than $1,500,000 may be
invested | ||
in the securities of a single enterprise, if the Authority | ||
shall find,
after the initial investment by the Authority, that | ||
additional investments in
the enterprise are necessary to | ||
protect or enhance the initial investment of
the
Authority.
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Each co-venture investment agreement shall provide that the | ||
Authority will
recover its investment before or simultaneously | ||
with any distribution to
participating professional investors | ||
or seed capital investors. The Authority
and participating | ||
professional investors and seed capital investors shall share
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ratably in the profits earned in any form on the co-venture | ||
investment, but the
Authority may, at its discretion, agree to | ||
pay to a participating professional
investor a percentage, not | ||
to exceed 40% (computed on an annual basis), of cash
and other | ||
property payable to the Authority as its pro-rata share of
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distributions to investors in the pool of funds, provided that | ||
(i) no amount
shall be received by the participating | ||
professional investor upon sale or other
disposition of | ||
qualified investments in the enterprises until recovery by the
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Authority of its investment and upon liquidation or withdrawal | ||
of the Authority
from the pool of funds, the participating | ||
professional investor shall be
obligated to refund any amount | ||
received by it from such percentage if necessary
to allow the | ||
Authority to recover its investment or (ii) the terms of | ||
payment
of cash and other property to the Authority are no less | ||
favorable to the
Authority
than payments to other seed capital | ||
investors or professional investors (other
than the | ||
professional investor) who are parties to the agreement or | ||
contract;
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(d) To purchase qualified securities of certified | ||
development corporations
created under
Section 503 of the | ||
federal Small Business Administration Act,
including the | ||
Illinois Small Business Growth Corporation, for the purpose of
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making loans to enterprises that have the potential to create | ||
substantial
employment within the State per dollar invested by | ||
the Authority, provided that
the investment does not exceed 25% | ||
of the total investment in each corporation
at the time the | ||
investment is approved by the Authority. Investment by the
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Authority in the Illinois Small Business Growth Corporation is | ||
not limited by
the foregoing provision;
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(e) To purchase qualified securities of small business | ||
investment companies
and
minority enterprise small business | ||
investment corporations certified by the
federal Small | ||
Business Administration which are committed to making 60% of
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their
investments in the State, provided that investments from | ||
the Fund do not exceed
25% of the total investment in these | ||
entities at the time the investment is
approved by the | ||
Authority;
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(f) To make the investments of any funds held in reserves | ||
or sinking funds,
or any funds not required for immediate | ||
disbursement, as may be lawful
investments
for fiduciaries in | ||
the State;
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(g) To facilitate and promote the acquisition and | ||
revitalization of existing
manufacturing enterprises by, at | ||
the Authority's discretion, developing and maintaining a list | ||
of firms, or
divisions thereof, located within the State that | ||
are available for purchase,
merger, or acquisition. The list | ||
may shall be made available at such charges as the
Authority | ||
may determine to all interested persons and institutions upon
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request. No firm shall appear on the list without its prior | ||
written permission.
The list
may contain such additional | ||
financial, technical, market and other information
as may be | ||
supplied by the listed firm. The Authority shall bear no
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responsibility for the accuracy of the information contained on | ||
the list, and
each listed firm shall hold the Authority | ||
harmless against any claim of
inaccuracy.
Enterprises | ||
supported by investments from the Fund may shall receive | ||
consideration
by the Authority in the allocation of loans to be | ||
insured or loans to be made
from the proceeds of bonds to be | ||
insured by the Industrial Revenue Bond
Insurance Fund | ||
established under this Article, and the
Authority may shall | ||
coordinate its activities under the 2 programs.
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(Source: P.A. 93-205, eff. 1-1-04.)
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(20 ILCS 3501/840-20)
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Sec. 840-20.
It is the intent and purpose of this Act that | ||
the exercise by
the Authority of the powers granted to it shall | ||
be in all respects for the
benefit of the people of this State | ||
to assist them to provide needed health
facilities of the | ||
number, size, type, distribution, and operation that will
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assure admission and care of high quality to all who need it. | ||
To this end, the
Authority is charged with the responsibility | ||
to identify and study all projects
which are determined by | ||
health planning agencies to be needed but which could
not | ||
sustain a loan were such to be made to it under this Act. The | ||
Authority
shall, following such study, formulate and recommend | ||
to the General Assembly,
such amendments to this and other | ||
Acts, and such other specific measures as
grants, loan | ||
guarantees, interest subsidies or other actions as may be | ||
provided
for by the State which actions would render the | ||
construction and operation of
such needed health facility | ||
feasible and in the public interest. Further, the
Authority may | ||
is charged with responsibility to identify and study any laws | ||
or
regulations which it finds handicaps or bars a needed health | ||
facility from
participating in the benefits of this Act and may | ||
to recommend to the General
Assembly such actions as will | ||
remedy such situation.
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(Source: P.A. 93-205, eff. 1-1-04.)
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Section 99. Effective date. This Act takes effect upon | ||
becoming law.
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