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| [ House Amendment 001 ] |
92_HB3212sam001
LRB9206261JMmbam08
1 AMENDMENT TO HOUSE BILL 3212
2 AMENDMENT NO. . Amend House Bill 3212 by replacing
3 the title with the following:
4 "AN ACT concerning the State Treasurer."; and
5 by replacing everything after the enacting clause with the
6 following:
7 "Section 1. Short title. This Act may be cited as the
8 Technology Development Act.
9 Section 5. Policy. The Illinois General Assembly finds
10 that it is important for the State to encourage technology
11 development in the State. The purpose of this Act is to
12 attract, assist, and retain quality technology businesses in
13 Illinois. The creation of the Technology Development Account
14 will allow the State to bring together, and add to, Illinois'
15 rich science, technology, and business communities.
16 Section 10. Technology Development Account.
17 (a) The State Treasurer may segregate a portion of the
18 Treasurer's investment portfolio, that at no time shall be
19 greater than 1% of the portfolio, in the Technology
20 Development Account, an account that shall be maintained
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1 separately and apart from other moneys invested by the
2 Treasurer. The Treasurer may make investments from the
3 Account that help attract, assist, and retain quality
4 technology businesses in Illinois. The earnings on the
5 Account shall be accounted for separately from other
6 investments made by the Treasurer.
7 (b) Moneys in the Account may be invested by the State
8 Treasurer to provide venture capital to technology businesses
9 seeking to locate, expand, or remain in Illinois by placing
10 money with Illinois venture capital firms for investment by
11 the venture capital firms in technology businesses. "Venture
12 capital", as used in this Act, means equity financing that is
13 provided for starting up, expanding, or relocating a company,
14 or related purposes such as financing for seed capital,
15 research and development, introduction of a product or
16 process into the marketplace, or similar needs requiring risk
17 capital. "Technology business", as used in this Act, means a
18 company that has as its principal function the providing of
19 services including computer, information transfer,
20 communication, distribution, processing, administrative,
21 laboratory, experimental, developmental, technical, testing
22 services, manufacture of goods or materials, the processing
23 of goods or materials by physical or chemical change,
24 computer related activities, robotics, biological or
25 pharmaceutical industrial activity, or technology oriented or
26 emerging industrial activity. "Illinois venture capital
27 firms", as used in this Act, means an entity that has a
28 majority of its employees in Illinois or that has at least
29 one managing partner domiciled in Illinois that has made
30 significant capital investments in Illinois companies and
31 that provides equity financing for starting up or expanding a
32 company, or related purposes such as financing for seed
33 capital, research and development, introduction of a product
34 or process into the marketplace, or similar needs requiring
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1 risk capital.
2 (c) Any fund created by an Illinois venture capital firm
3 in which the State Treasurer places money pursuant to this
4 Act shall be required by the State Treasurer to seek
5 investments in technology businesses seeking to locate,
6 expand, or remain in Illinois.
7 (d) The investment of the State Treasurer in any fund
8 created by an Illinois venture capital firm in which the
9 State Treasurer places money pursuant to this Act shall not
10 exceed 10% of the total investments in the fund.
11 (e) The State Treasurer shall not invest more than
12 one-third of the Technology Development Account in any given
13 calendar year.
14 Section 15. Rules. The State Treasurer may promulgate
15 rules to implement this Act.
16 Section 90. The Deposit of State Moneys Act is amended
17 by changing Section 22.5 as follows:
18 (15 ILCS 520/22.5) (from Ch. 130, par. 41a)
19 Sec. 22.5. The State Treasurer may, with the approval of
20 the Governor, invest and reinvest any State money in the
21 treasury which is not needed for current expenditures due or
22 about to become due, in obligations of the United States
23 government or its agencies or of National Mortgage
24 Associations established by or under the National Housing
25 Act, 1201 U.S.C. 1701 et seq., or in mortgage participation
26 certificates representing undivided interests in specified,
27 first-lien conventional residential Illinois mortgages that
28 are underwritten, insured, guaranteed, or purchased by the
29 Federal Home Loan Mortgage Corporation or in Affordable
30 Housing Program Trust Fund Bonds or Notes as defined in and
31 issued pursuant to the Illinois Housing Development Act. All
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1 such obligations shall be considered as cash and may be
2 delivered over as cash by a State Treasurer to his successor.
3 The State Treasurer may, with the approval of the
4 Governor, purchase any state bonds with any money in the
5 State Treasury that has been set aside and held for the
6 payment of the principal of and interest on the bonds. The
7 bonds shall be considered as cash and may be delivered over
8 as cash by the State Treasurer to his successor.
9 The State Treasurer may, with the approval of the
10 Governor, invest or reinvest any State money in the treasury
11 that is not needed for current expenditure due or about to
12 become due, or any money in the State Treasury that has been
13 set aside and held for the payment of the principal of and
14 the interest on any State bonds, in shares, withdrawable
15 accounts, and investment certificates of savings and building
16 and loan associations, incorporated under the laws of this
17 State or any other state or under the laws of the United
18 States; provided, however, that investments may be made only
19 in those savings and loan or building and loan associations
20 the shares and withdrawable accounts or other forms of
21 investment securities of which are insured by the Federal
22 Deposit Insurance Corporation.
23 The State Treasurer may not invest State money in any
24 savings and loan or building and loan association unless a
25 commitment by the savings and loan (or building and loan)
26 association, executed by the president or chief executive
27 officer of that association, is submitted in the following
28 form:
29 The .................. Savings and Loan (or Building
30 and Loan) Association pledges not to reject arbitrarily
31 mortgage loans for residential properties within any
32 specific part of the community served by the savings and
33 loan (or building and loan) association because of the
34 location of the property. The savings and loan (or
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1 building and loan) association also pledges to make loans
2 available on low and moderate income residential property
3 throughout the community within the limits of its legal
4 restrictions and prudent financial practices.
5 The State Treasurer may, with the approval of the
6 Governor, invest or reinvest, at a price not to exceed par,
7 any State money in the treasury that is not needed for
8 current expenditures due or about to become due, or any money
9 in the State Treasury that has been set aside and held for
10 the payment of the principal of and interest on any State
11 bonds, in bonds issued by counties or municipal corporations
12 of the State of Illinois.
13 The State Treasurer may, with the approval of the
14 Governor, invest or reinvest any State money in the Treasury
15 which is not needed for current expenditure, due or about to
16 become due, or any money in the State Treasury which has been
17 set aside and held for the payment of the principal of and
18 the interest on any State bonds, in participations in loans,
19 the principal of which participation is fully guaranteed by
20 an agency or instrumentality of the United States government;
21 provided, however, that such loan participations are
22 represented by certificates issued only by banks which are
23 incorporated under the laws of this State or any other state
24 or under the laws of the United States, and such banks, but
25 not the loan participation certificates, are insured by the
26 Federal Deposit Insurance Corporation.
27 The State Treasurer may, with the approval of the
28 Governor, invest or reinvest any State money in the Treasury
29 that is not needed for current expenditure, due or about to
30 become due, or any money in the State Treasury that has been
31 set aside and held for the payment of the principal of and
32 the interest on any State bonds, in any of the following:
33 (1) Bonds, notes, certificates of indebtedness,
34 Treasury bills, or other securities now or hereafter
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1 issued that are guaranteed by the full faith and credit
2 of the United States of America as to principal and
3 interest.
4 (2) Bonds, notes, debentures, or other similar
5 obligations of the United States of America, its
6 agencies, and instrumentalities.
7 (3) Interest-bearing savings accounts,
8 interest-bearing certificates of deposit,
9 interest-bearing time deposits, or any other investments
10 constituting direct obligations of any bank as defined by
11 the Illinois Banking Act.
12 (4) Interest-bearing accounts, certificates of
13 deposit, or any other investments constituting direct
14 obligations of any savings and loan associations
15 incorporated under the laws of this State or any other
16 state or under the laws of the United States.
17 (5) Dividend-bearing share accounts, share
18 certificate accounts, or class of share accounts of a
19 credit union chartered under the laws of this State or
20 the laws of the United States; provided, however, the
21 principal office of the credit union must be located
22 within the State of Illinois.
23 (6) Bankers' acceptances of banks whose senior
24 obligations are rated in the top 2 rating categories by 2
25 national rating agencies and maintain that rating during
26 the term of the investment.
27 (7) Short-term obligations of corporations
28 organized in the United States with assets exceeding
29 $500,000,000 if (i) the obligations are rated at the time
30 of purchase at one of the 3 highest classifications
31 established by at least 2 standard rating services and
32 mature not later than 180 days from the date of purchase,
33 (ii) the purchases do not exceed 10% of the corporation's
34 outstanding obligations, and (iii) no more than one-third
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1 of the public agency's funds are invested in short-term
2 obligations of corporations.
3 (8) Money market mutual funds registered under the
4 Investment Company Act of 1940, provided that the
5 portfolio of the money market mutual fund is limited to
6 obligations described in this Section and to agreements
7 to repurchase such obligations.
8 (9) The Public Treasurers' Investment Pool created
9 under Section 17 of the State Treasurer Act or in a fund
10 managed, operated, and administered by a bank.
11 (10) Repurchase agreements of government securities
12 having the meaning set out in the Government Securities
13 Act of 1986 subject to the provisions of that Act and the
14 regulations issued thereunder.
15 (11) Investments made in accordance with the
16 Technology Development Act.
17 For purposes of this Section, "agencies" of the United
18 States Government includes:
19 (i) the federal land banks, federal intermediate
20 credit banks, banks for cooperatives, federal farm credit
21 banks, or any other entity authorized to issue debt
22 obligations under the Farm Credit Act of 1971 (12 U.S.C.
23 2001 et seq.) and Acts amendatory thereto;
24 (ii) the federal home loan banks and the federal
25 home loan mortgage corporation;
26 (iii) the Commodity Credit Corporation; and
27 (iv) any other agency created by Act of Congress.
28 The Treasurer may, with the approval of the Governor,
29 lend any securities acquired under this Act. However,
30 securities may be lent under this Section only in accordance
31 with Federal Financial Institution Examination Council
32 guidelines and only if the securities are collateralized at a
33 level sufficient to assure the safety of the securities,
34 taking into account market value fluctuation. The securities
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1 may be collateralized by cash or collateral acceptable under
2 Sections 11 and 11.1.
3 (Source: P.A. 90-655, eff. 7-30-98.)
4 Section 99. Effective date. This Act takes effect upon
5 becoming law.".