Illinois General Assembly - Full Text of SB0117
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Full Text of SB0117  102nd General Assembly




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1    AN ACT concerning State government.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 1. Short title. This Act may be cited as the
5Infrastructure Development Act.
6    Section 5. Definitions. As used in this Act:
7    "Development capital" means financing for investments in
8which the underlying assets involve direct ownership of
9non-financial assets for developing or expanding in Illinois.
10    "Illinois infrastructure development firm" means an entity
11that: (i) has more than 50% of its employees in Illinois or
12that has at least one general partner or principal domiciled
13in Illinois; (ii) provides financing for investments in which
14the underlying assets involve direct ownership of
15non-financial assets to develop or expand in Illinois; or
16(iii) has a track record of identifying, evaluating, and
17investing in Illinois infrastructure development projects and
18providing financing for investments in which the underlying
19assets involve direct ownership of non-financial assets to
20develop or expand in Illinois.
21    "Illinois infrastructure development project" means a
22project that has as its principal function investing in real
23assets to develop economic and social infrastructure



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1including, but not limited to, land, buildings,
2transportation, utilities, communication, renewable energy,
3schools, healthcare, and other real assets.
4    "Significant presence" means at least one physical office
5and one full-time employee within the geographic borders of
6this State.
7    "Track record" means having made, on average, at least one
8investment in an Illinois infrastructure development project
9in each of its funds if the Illinois infrastructure
10development firm has multiple funds or at least 2 investments
11in Illinois infrastructure development projects if the
12Illinois infrastructure development firm has only one fund.
13    Section 10. Infrastructure Development Account.
14    (a) The State Treasurer shall segregate a portion of the
15Treasurer's State investment portfolio, which at no time shall
16be greater than 5% of the portfolio, in the Infrastructure
17Development Account, an account that shall be maintained
18separately and apart from other moneys invested by the State
19Treasurer. Distributions from the investments in the
20Infrastructure Development Account may be reinvested into the
21Infrastructure Development Account without being counted
22against the 5% cap. The aggregate investment in the
23Infrastructure Development Account and the aggregate
24commitment of investment capital in an Infrastructure
25Development Account-Recipient Fund shall at no time be greater



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1than 5% of the State's investment portfolio, which shall be
2calculated as: (i) the balance at the inception of the State
3fiscal year; or (ii) the average balance in the immediately
4preceding 5 fiscal years, whichever number is greater.
5Distributions from an Infrastructure Development
6Account-Recipient Fund, in an amount not to exceed the
7commitment amount and the total distributions, may be
8reinvested into the Infrastructure Development Account without
9being counted against the 5% cap. The State Treasurer may make
10investments from the Infrastructure Development Account that
11help attract, assist, and support quality infrastructure
12development projects in Illinois. A portion of the investment
13earnings on the Infrastructure Development Account may be
14deposited into the Infrastructure Development Fund and
15reinvested by the State Treasurer.
16    (b) The State Treasurer may solicit proposals from
17entities to manage the Infrastructure Development Account
18consisting of investments from private sector investors that
19must invest, at the direction of the general partner, in
20tandem with the Infrastructure Development Account in a
21pro-rata portion. The State Treasurer may enter into an
22agreement with the entity managing the Infrastructure
23Development Account to advise on the investment strategy of
24the Infrastructure Development Account and fulfill other
25mutually agreeable terms. Funds in the Infrastructure
26Development Account shall be kept separate and apart from



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1moneys in the State treasury.
2    (c) All or a portion of the moneys in the Infrastructure
3Development Account shall be invested by the State Treasurer
4to provide development capital to infrastructure development
5projects, seeking to locate, expand, or remain in Illinois by
6placing money with Illinois infrastructure development firms.
7In no case shall more than 15% of the capital in the
8Infrastructure Development Account be invested in firms based
9outside of Illinois.
10    (d) Any Infrastructure Development Account-Recipient Fund
11created by an Illinois infrastructure development firm in
12which the State Treasurer places money pursuant to this
13Section shall be required by the State Treasurer to seek
14investments in Illinois infrastructure development projects
15seeking to locate, expand, or remain in Illinois. Any
16Infrastructure Development Account-Recipient Fund created by
17an Illinois infrastructure development firm in which the State
18Treasurer places money under this Section shall invest a
19minimum of twice the aggregate amount of investable capital
20that is received from the State Treasurer under this Section
21in Illinois infrastructure development projects during the
22life of the fund. Investable capital is calculated as
23committed capital, as defined in the firm's applicable fund's
24governing documents, less related estimated fees and expenses
25to be incurred during the life of the fund.
26    (e) All Infrastructure Development Account-Recipient Funds



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1shall also invest additional capital in Illinois
2infrastructure development projects during the life of the
3fund if, as determined by the fund's manager, the investment:
4        (1) is consistent with the firm's fiduciary
5    responsibility to its limited partners;
6        (2) is consistent with the fund manager's investment
7    strategy; and
8        (3) demonstrates the potential to create risk-adjusted
9    financial returns consistent with the fund manager's
10    investment goals.
11    (f) All Infrastructure Development Account-Recipient Funds
12shall report the following information to the State Treasurer
13on a quarterly or annual basis, as determined by the State
14Treasurer, for all investments, including but not limited to:
15        (1) the names of companies or infrastructure
16    development projects invested in during the applicable
17    investment period;
18        (2) the geographic location of infrastructure
19    development projects;
20        (3) the date of the initial and any follow-on
21    investments;
22        (4) the cost of the investment; and
23        (5) the current fair market value of the investment.
24    (g) If, as of the earlier to occur of (i) the fourth year
25of the investment period of any Infrastructure Development
26Account-Recipient Fund or (ii) when that Infrastructure



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1Development Account-Recipient Fund has drawn more than 60% of
2the investable capital of all limited partners, that
3Infrastructure Development Account-Recipient Fund has failed
4to invest the minimum amount required under this Section in
5Illinois infrastructure development projects, then the State
6Treasurer shall deliver written notice to the manager of that
7fund seeking compliance with the minimum amount requirement
8under this Section. If, after 180 days after delivery of
9notice, the Infrastructure Development Account-Recipient Fund
10has still failed to invest the minimum amount required under
11this Section in Illinois companies, then the State Treasurer
12may elect, in writing, to terminate any further commitment to
13make capital contributions to that fund which otherwise would
14have been made under this Section.
15    Section 15. Rules. The State Treasurer may adopt rules
16necessary to implement this Act.
17    Section 20. Infrastructure Development Fund. The
18Infrastructure Development Fund is created as a
19non-appropriated trust fund within the State treasury, which
20may receive a portion of earnings from the Infrastructure
21Development Account and may be used by the State Treasurer to
22pay expenses related to this Act.
23    Section 90. The State Finance Act is amended by adding



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1Section 5.935 as follows:
2    (30 ILCS 105/5.935 new)
3    Sec. 5.935. The Infrastructure Development Fund.
4    Section 99. Effective date. This Act takes effect upon
5becoming law.