Full Text of HB5452 097th General Assembly
HB5452enr 97TH GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning State government.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Finance Authority Act is amended by | 5 | | changing Sections 810-20 and 840-20 as follows:
| 6 | | (20 ILCS 3501/810-20)
| 7 | | Sec. 810-20. Powers and Duties; Illinois Venture | 8 | | Investment Fund Limits. The
Authority shall invest and reinvest | 9 | | the Fund and the income, thereof, in the
following ways:
| 10 | | (a) To make a direct investment in qualified securities | 11 | | issued by
enterprises
and to dispose of those securities within | 12 | | 10 years after the date of the direct
investment as determined | 13 | | by the Authority for the purpose of providing venture
capital | 14 | | or seed capital, provided that the investment shall not exceed | 15 | | 49% of
the estimated cost of development, testing, and initial | 16 | | production and
marketing
and associated working capital for the | 17 | | technology, product, process, or
invention, or $750,000, | 18 | | whichever is less;
| 19 | | (b) To enter into written agreements or contracts | 20 | | (including limited
partnership agreements) with one or more | 21 | | professional investors or one or more
seed capital investors, | 22 | | if any, for the purpose of establishing a pool of funds
to be | 23 | | used exclusively as venture capital or seed capital |
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| 1 | | investments. The
Authority shall not invest more than | 2 | | $2,000,000 in a single pool of funds or
affiliated pools of | 3 | | funds.
The agreement or contract shall provide for the pool of | 4 | | funds to be managed by
a professional investor. The manager may | 5 | | be the general partner of a limited
partnership of which the | 6 | | Authority is a limited partner.
The agreement or contract may | 7 | | provide for reimbursement of expenses of, and
payment of a fee | 8 | | to, the manager. The agreement or contract may also provide
for | 9 | | payment to the manager of a percentage, not to exceed 40% | 10 | | (computed on an
annual basis), of cash and other property | 11 | | payable to the Authority as its
pro-rata share of distributions | 12 | | to investors in the pool of funds, provided
that (i)
no amount | 13 | | shall be received by the manager upon sale or other disposition | 14 | | of
qualified investments in enterprises until recovery by the | 15 | | Authority of its
investment and upon liquidation or withdrawal | 16 | | of the Authority from the pool of
funds, the manager shall be | 17 | | obligated to refund any amount received by it from
such | 18 | | percentage if necessary to allow the Authority to recover its | 19 | | investment
or
(ii) the terms of payment of cash and other | 20 | | property to the Authority are no
less favorable to the | 21 | | Authority than payments to other seed capital investors
(other | 22 | | than the manager) who are parties to the agreement or contract.
| 23 | | (c) To make co-venture investments by entering into | 24 | | agreements with one or
more
professional investors or one or | 25 | | more seed capital investors, if any, who have
formally agreed | 26 | | to invest at least 50% as much as the Authority invests in the
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| 1 | | enterprise, for the purpose of providing venture capital or | 2 | | seed capital; but
no more than $1,000,000 shall be invested by | 3 | | the Authority in the qualified
securities of a single | 4 | | enterprise. A total of not more than $1,500,000 may be
invested | 5 | | in the securities of a single enterprise, if the Authority | 6 | | shall find,
after the initial investment by the Authority, that | 7 | | additional investments in
the enterprise are necessary to | 8 | | protect or enhance the initial investment of
the
Authority.
| 9 | | Each co-venture investment agreement shall provide that the | 10 | | Authority will
recover its investment before or simultaneously | 11 | | with any distribution to
participating professional investors | 12 | | or seed capital investors. The Authority
and participating | 13 | | professional investors and seed capital investors shall share
| 14 | | ratably in the profits earned in any form on the co-venture | 15 | | investment, but the
Authority may, at its discretion, agree to | 16 | | pay to a participating professional
investor a percentage, not | 17 | | to exceed 40% (computed on an annual basis), of cash
and other | 18 | | property payable to the Authority as its pro-rata share of
| 19 | | distributions to investors in the pool of funds, provided that | 20 | | (i) no amount
shall be received by the participating | 21 | | professional investor upon sale or other
disposition of | 22 | | qualified investments in the enterprises until recovery by the
| 23 | | Authority of its investment and upon liquidation or withdrawal | 24 | | of the Authority
from the pool of funds, the participating | 25 | | professional investor shall be
obligated to refund any amount | 26 | | received by it from such percentage if necessary
to allow the |
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| 1 | | Authority to recover its investment or (ii) the terms of | 2 | | payment
of cash and other property to the Authority are no less | 3 | | favorable to the
Authority
than payments to other seed capital | 4 | | investors or professional investors (other
than the | 5 | | professional investor) who are parties to the agreement or | 6 | | contract;
| 7 | | (d) To purchase qualified securities of certified | 8 | | development corporations
created under
Section 503 of the | 9 | | federal Small Business Administration Act,
including the | 10 | | Illinois Small Business Growth Corporation, for the purpose of
| 11 | | making loans to enterprises that have the potential to create | 12 | | substantial
employment within the State per dollar invested by | 13 | | the Authority, provided that
the investment does not exceed 25% | 14 | | of the total investment in each corporation
at the time the | 15 | | investment is approved by the Authority. Investment by the
| 16 | | Authority in the Illinois Small Business Growth Corporation is | 17 | | not limited by
the foregoing provision;
| 18 | | (e) To purchase qualified securities of small business | 19 | | investment companies
and
minority enterprise small business | 20 | | investment corporations certified by the
federal Small | 21 | | Business Administration which are committed to making 60% of
| 22 | | their
investments in the State, provided that investments from | 23 | | the Fund do not exceed
25% of the total investment in these | 24 | | entities at the time the investment is
approved by the | 25 | | Authority;
| 26 | | (f) To make the investments of any funds held in reserves |
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| 1 | | or sinking funds,
or any funds not required for immediate | 2 | | disbursement, as may be lawful
investments
for fiduciaries in | 3 | | the State;
| 4 | | (g) To facilitate and promote the acquisition and | 5 | | revitalization of existing
manufacturing enterprises by , at | 6 | | the Authority's discretion, developing and maintaining a list | 7 | | of firms, or
divisions thereof, located within the State that | 8 | | are available for purchase,
merger, or acquisition. The list | 9 | | may shall be made available at such charges as the
Authority | 10 | | may determine to all interested persons and institutions upon
| 11 | | request. No firm shall appear on the list without its prior | 12 | | written permission.
The list
may contain such additional | 13 | | financial, technical, market and other information
as may be | 14 | | supplied by the listed firm. The Authority shall bear no
| 15 | | responsibility for the accuracy of the information contained on | 16 | | the list, and
each listed firm shall hold the Authority | 17 | | harmless against any claim of
inaccuracy.
Enterprises | 18 | | supported by investments from the Fund may shall receive | 19 | | consideration
by the Authority in the allocation of loans to be | 20 | | insured or loans to be made
from the proceeds of bonds to be | 21 | | insured by the Industrial Revenue Bond
Insurance Fund | 22 | | established under this Article, and the
Authority may shall | 23 | | coordinate its activities under the 2 programs.
| 24 | | (Source: P.A. 93-205, eff. 1-1-04.)
| 25 | | (20 ILCS 3501/840-20)
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| 1 | | Sec. 840-20.
It is the intent and purpose of this Act that | 2 | | the exercise by
the Authority of the powers granted to it shall | 3 | | be in all respects for the
benefit of the people of this State | 4 | | to assist them to provide needed health
facilities of the | 5 | | number, size, type, distribution, and operation that will
| 6 | | assure admission and care of high quality to all who need it. | 7 | | To this end, the
Authority is charged with the responsibility | 8 | | to identify and study all projects
which are determined by | 9 | | health planning agencies to be needed but which could
not | 10 | | sustain a loan were such to be made to it under this Act. The | 11 | | Authority
shall, following such study, formulate and recommend | 12 | | to the General Assembly,
such amendments to this and other | 13 | | Acts, and such other specific measures as
grants, loan | 14 | | guarantees, interest subsidies or other actions as may be | 15 | | provided
for by the State which actions would render the | 16 | | construction and operation of
such needed health facility | 17 | | feasible and in the public interest. Further, the
Authority may | 18 | | is charged with responsibility to identify and study any laws | 19 | | or
regulations which it finds handicaps or bars a needed health | 20 | | facility from
participating in the benefits of this Act and may | 21 | | to recommend to the General
Assembly such actions as will | 22 | | remedy such situation.
| 23 | | (Source: P.A. 93-205, eff. 1-1-04.)
| 24 | | Section 99. Effective date. This Act takes effect upon | 25 | | becoming law.
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