Bill Text: IL SB3028 | 2019-2020 | 101st General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Creates the Infrastructure Development Act. Provides that the State Treasurer shall segregate a portion of the Treasurer's State investment portfolio in the Infrastructure Development Account, an account that shall be maintained separately and apart from other moneys invested by the State Treasurer. Allows the State Treasurer to make investments concerning the Infrastructure Development Account. Provides for Infrastructure Development Account-Recipient Funds created by Illinois infrastructure development firms in which the State Treasurer places money. Provides further requirements concerning Infrastructure Development Account-Recipient Funds. Provides for the adoption rules. Provides that the Infrastructure Development Fund is created as a special fund in the State treasury, which may receive a portion of earnings from the Infrastructure Development Account and may be used by the State Treasurer to pay expenses related to the Act. Defines terms. Amends the State Finance Act to provide for the Infrastructure Development Fund. Effective immediately.

Spectrum: Partisan Bill (Democrat 7-0)

Status: (Failed) 2021-01-13 - Session Sine Die [SB3028 Detail]

Download: Illinois-2019-SB3028-Introduced.html

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101ST GENERAL ASSEMBLY State of Illinois 2019 and 2020 SB3028 Introduced 2/4/2020, by Sen. Steve Stadelman SYNOPSIS AS INTRODUCED:
New Act
30 ILCS 105/5.930 new
Creates the Infrastructure Development Act. Provides that the State Treasurer shall segregate a portion of the Treasurer's State investment portfolio in the Infrastructure Development Account, an account that shall be maintained separately and apart from other moneys invested by the State Treasurer. Allows the State Treasurer to make investments concerning the Infrastructure Development Account. Provides for Infrastructure Development Account-Recipient Funds created by Illinois infrastructure development firms in which the State Treasurer places money. Provides further requirements concerning Infrastructure Development Account-Recipient Funds. Provides for the adoption rules. Provides that the Infrastructure Development Fund is created as a special fund in the State treasury, which may receive a portion of earnings from the Infrastructure Development Account and may be used by the State Treasurer to pay expenses related to the Act. Defines terms. Amends the State Finance Act to provide for the Infrastructure Development Fund. Effective immediately.
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A BILL FOR
SB3028 LRB101 19192 RJF 68655 b
AN ACT concerning State government.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 1. Short title. This Act may be cited as the
Infrastructure Development Act.
Section 5. Definitions. As used in this Act:
"Development capital" means financing for investments in
which the underlying assets involve direct ownership of
non-financial assets for developing or expanding in Illinois.
"Illinois infrastructure development firm" means an entity
that: (i) has more than 50% of its employees in Illinois or
that has at least one general partner or principal domiciled in
Illinois; (ii) provides financing for investments in which the
underlying assets involve direct ownership of non-financial
assets to develop or expand in Illinois; or (iii) has a track
record of identifying, evaluating, and investing in Illinois
infrastructure development projects and providing financing
for investments in which the underlying assets involve direct
ownership of non-financial assets to develop or expand in
Illinois.
"Illinois infrastructure development projects" means a
project that has as its principal function investing in real
assets to develop economic and social infrastructure

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

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

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(c) All or a portion of the moneys in the Infrastructure
Development Account shall be invested by the State Treasurer to
provide development capital to infrastructure development
projects, seeking to locate, expand, or remain in Illinois by
placing money with Illinois infrastructure development firms.
In no case shall more than 15% of the capital in the
Infrastructure Development Account be invested in firms based
outside of Illinois.
(d) Any Infrastructure Development Account-Recipient Fund
created by an Illinois infrastructure development firm in which
the State Treasurer places money pursuant to this Section shall
be required by the State Treasurer to seek investments in
Illinois infrastructure development projects seeking to
locate, expand, or remain in Illinois. Any Infrastructure
Development Account-Recipient Fund created by an Illinois
infrastructure development firm in which the State Treasurer
places money under this Section shall invest a minimum of twice
the aggregate amount of investable capital that is received
from the State Treasurer under this Section in Illinois
infrastructure development projects during the life of the
fund. Investable capital is calculated as committed capital, as
defined in the firm's applicable fund's governing documents,
less related estimated fees and expenses to be incurred during
the life of the fund.
(e) All Infrastructure Development Account-Recipient Funds
shall also invest additional capital in Illinois

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infrastructure development projects during the life of the fund
if, as determined by the fund's manager, the investment:
(1) is consistent with the firm's fiduciary
responsibility to its limited partners;
(2) is consistent with the fund manager's investment
strategy; and
(3) demonstrates the potential to create risk-adjusted
financial returns consistent with the fund manager's
investment goals.
(f) All Infrastructure Development Account-Recipient Funds
shall report the following information to the State Treasurer
on a quarterly or annual basis, as determined by the State
Treasurer, for all investments, including but not limited to:
(1) the names of companies or infrastructure
development projects invested in during the applicable
investment period;
(2) the geographic location of infrastructure
development projects;
(3) the date of the initial and any follow-on
investments;
(4) the cost of the investment; and
(5) the current fair market value of the investment.
(g) If, as of the earlier to occur of (i) the fourth year
of the investment period of any Infrastructure Development
Account-Recipient Fund or (ii) when that Infrastructure
Development Account-Recipient Fund has drawn more than 60% of

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the investable capital of all limited partners, that
Infrastructure Development Account-Recipient Fund has failed
to invest the minimum amount required under this Section in
Illinois infrastructure development projects, then the State
Treasurer shall deliver written notice to the manager of that
fund seeking compliance with the minimum amount requirement
under this Section. If, after 180 days after delivery of
notice, the Infrastructure Development Account-Recipient Fund
has still failed to invest the minimum amount required under
this Section in Illinois companies, then the State Treasurer
may elect, in writing, to terminate any further commitment to
make capital contributions to that fund which otherwise would
have been made under this Section.
Section 15. Rules. The State Treasurer may adopt rules
necessary to implement this Act.
Section 20. Infrastructure Development Fund. The
Infrastructure Development Fund is created as a special fund in
the State treasury, which may receive a portion of earnings
from the Infrastructure Development Account and may be used by
the State Treasurer to pay expenses related to this Act.
Section 90. The State Finance Act is amended by adding
Section 5.930 as follows:

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(30 ILCS 105/5.930 new)
Sec. 5.930. The Infrastructure Development Fund.
Section 99. Effective date. This Act takes effect upon
becoming law.