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.