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.