Public Act 097-0789
 
HB5452 EnrolledLRB097 19625 PJG 64879 b

    AN ACT concerning State government.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Illinois Finance Authority Act is amended by
changing Sections 810-20 and 840-20 as follows:
 
    (20 ILCS 3501/810-20)
    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:
    (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;
    (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.
    (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
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.
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
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
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
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;
    (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
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
Authority in the Illinois Small Business Growth Corporation is
not limited by the foregoing provision;
    (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
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;
    (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;
    (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
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
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.
(Source: P.A. 93-205, eff. 1-1-04.)
 
    (20 ILCS 3501/840-20)
    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
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.
(Source: P.A. 93-205, eff. 1-1-04.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.