Illinois Compiled Statutes
Chapter 30 - FINANCE
30 ILCS 265/ - Technology Development Act.

(30 ILCS 265/1)
Sec. 1.
Short title.
This Act may be cited as the Technology
Development
Act.

(Source: P.A. 92-851, eff. 8-26-02.)
 
(30 ILCS 265/5)
Sec. 5. Policy. The Illinois General Assembly finds that it is important
for the
State to encourage technology development in the State. The purpose of this
Act is to
attract, assist, and retain quality technology businesses and promote the growth of jobs and entrepreneurial and venture capital environments in Illinois. The
creation of the
Technology Development Account will allow the State to bring together, and add
to,
Illinois'
rich science, technology, agricultural, financial, and business communities.

(Source: P.A. 100-1081, eff. 8-24-18.)
 
(30 ILCS 265/10)
Sec. 10. Technology Development Account.
(a) The State Treasurer may segregate a portion of the Treasurer's
investment
portfolio, that at no time shall be greater than 1% of the portfolio, in the
Technology Development Account, an account that shall be maintained separately
and apart from other moneys invested by the Treasurer. The Treasurer may make
investments from the Account that help attract, assist, and retain quality
technology businesses in Illinois. The earnings on the Account shall be
accounted for separately from other investments made by the Treasurer.
(b) Moneys in the Account may be invested by the State Treasurer
to
provide venture capital to technology businesses seeking to locate, expand, or
remain in
Illinois by placing money with Illinois venture capital firms for investment by
the venture
capital firms in technology businesses. "Venture capital", as used in this
Act, means
equity financing that is provided for starting up, expanding, or relocating a
company, or
related purposes such as financing for seed capital, research and development,
introduction of a product or process into the marketplace, or similar needs
requiring risk
capital. "Technology business", as used in this Act, means a company that has
as its
principal function the providing of services including computer, information
transfer,
communication, distribution, processing, administrative, laboratory,
experimental,
developmental, technical, testing services, manufacture of goods or materials,
the
processing of goods or materials by physical or chemical change, computer
related
activities, robotics, biological or pharmaceutical industrial activity, or
technology
oriented or emerging industrial activity. "Illinois venture capital firms", as
used in this
Act, means an entity that has a majority of its
employees in
Illinois or that has at least one managing partner domiciled in Illinois that
has made significant capital investments in Illinois companies and that
provides equity financing for starting up or expanding a
company, or
related purposes such as financing for seed capital, research and development,
introduction of a product or process into the marketplace, or similar needs
requiring risk
capital.
(c) Any fund created by an Illinois venture capital firm in which the State
Treasurer places money pursuant to this Act shall be required by the State
Treasurer to
seek investments in technology businesses seeking to locate, expand, or remain
in
Illinois.
(d) The investment of the State Treasurer in any fund created by an Illinois
venture capital firm in which the State Treasurer places money pursuant to this Section
shall
not exceed 10% of the total investments in the fund.
(e) The State Treasurer shall not invest more than one-third of the
Technology
Development Account in any given calendar year.
(f) The Treasurer may deposit no more than 15% of the earnings of the
investments in the Technology Development Account into the Technology
Development Fund.


(Source: P.A. 101-657, eff. 3-23-21.)
 
(30 ILCS 265/11)
Sec. 11. Technology Development Account II.
(a) Including the amount provided in Section 10 of this Act, the State Treasurer shall segregate a portion of the Treasurer's State investment portfolio, that at no time shall be greater than 5% of the portfolio, in the Technology Development Account IIa ("TDA IIa"), an account that shall be maintained separately and apart from other moneys invested by the Treasurer. Distributions from the investments in TDA IIa may be reinvested into TDA IIa without being counted against the 5% cap. The aggregate investment in TDA IIa and the aggregate commitment of investment capital in a TDA II-Recipient Fund shall at no time be greater than 5% of the State's investment portfolio, which shall be calculated as: (1) the balance at the inception of the State's fiscal year; or (2) the average balance in the immediately preceding 5 fiscal years, whichever number is greater. Distributions from a TDA II-Recipient Fund, in an amount not to exceed the commitment amount and total distributions received, may be reinvested into TDA IIa without being counted against the 5% cap. The Treasurer may make investments from TDA IIa that help attract, assist, and retain quality technology businesses in Illinois. The earnings on TDA IIa shall be accounted for separately from other investments made by the Treasurer.
(b) The Treasurer may solicit proposals from entities to manage and be the General Partner of a separate fund ("Technology Development Account IIb" or "TDA IIb") consisting of investments from private sector investors that must invest, at the direction of the general partner, in tandem with TDA IIa in a pro-rata portion. The Treasurer may enter into an agreement with the entity managing TDA IIb to advise on the investment strategy of TDA IIa and TDA IIb (collectively "Technology Development Account II" or "TDA II") and fulfill other mutually agreeable terms. Funds in TDA IIb shall be kept separate and apart from moneys in the State treasury.
(c) All or a portion of the moneys in TDA IIa shall be invested by the State Treasurer to provide venture capital to technology businesses, including co-investments, seeking to locate, expand, or remain in Illinois by placing money with Illinois venture capital firms for investment by the venture capital firms in technology businesses. "Venture capital", as used in this Section, means equity or debt financing that is provided for starting up, expanding, or relocating a company, or related purposes such as financing for seed capital, research and development, introduction of a product or process into the marketplace, or similar needs requiring risk capital. "Technology business", as used in this Section, means a company that has as its principal function the providing of services, including computer, information transfer, communication, distribution, processing, administrative, laboratory, experimental, developmental, technical, or testing services; manufacture of goods or materials; the processing of goods or materials by physical or chemical change; computer related activities; robotics, biological, or pharmaceutical industrial activities; or technology-oriented or emerging industrial activity. "Illinois venture capital firm", as used in this Section, means an entity that: (1) has a majority of its employees in Illinois (more than 50%) or that has at least one general partner or principal domiciled in Illinois, and that (2) provides equity financing for starting up or expanding a company, or related purposes such as financing for seed capital, research and development, introduction of a product or process into the marketplace, or similar needs requiring risk capital. "Illinois venture capital firm" may also mean an entity that has a track record of identifying, evaluating, and investing in Illinois companies and that provides equity financing for starting up or expanding a company, or related purposes such as financing for seed capital, research and development, introduction of a product or process into the marketplace, or similar needs requiring risk capital. For purposes of this Section, "track record" means having made, on average, at least one investment in an Illinois company in each of its funds if the Illinois venture capital firm has multiple funds or at least 2 investments in Illinois companies if the Illinois venture capital firm has only one fund. In no case shall more than 15% of the capital in the TDA IIa be invested in firms based outside of Illinois. "Co-investments", as used in this Section, means an indirect investment made through an investment vehicle specifically organized to act on direct investment opportunities in an identified for-profit, Illinois company that is operating as a technology business in which one or more funds sponsored by Illinois venture capital firms have already invested, or are investing alongside such investment vehicle, on the same terms as such investment vehicle. Co-investments are limited to investments in Illinois companies for the purpose of enhancing the overall objectives of this Act.
(d) Any fund created by an Illinois venture capital firm in which the State Treasurer places money pursuant to this Section shall be required by the State Treasurer to seek investments in technology businesses seeking to locate, expand, or remain in Illinois. Any fund created by an Illinois venture capital firm in which the State Treasurer places money under this Section ("TDA II-Recipient Fund") shall invest a minimum of twice (2x) the aggregate amount of investable capital that is received from the State Treasurer under this Section in Illinois companies during the life of the fund. "Illinois companies", as used in this Section, are companies that are headquartered or that otherwise have a significant presence in the State at the time of initial or follow-on investment. 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. For the purposes of this subsection (d), "significant presence" means at least one physical office and one full-time employee within the geographic borders of this State.
Any TDA II-Recipient Fund shall also invest additional capital in Illinois companies during the life of the fund if, as determined by the fund's manager, the investment:
In addition to any reporting requirements set forth in Section 10 of this Act, any TDA II-Recipient Fund shall report the following additional information to the Treasurer on a quarterly or annual basis, as determined by the Treasurer, for all investments:
If, as of the earlier to occur of (i) the fourth year of the investment period of any TDA II-Recipient Fund or (ii) when that TDA II-Recipient Fund has drawn more than 60% of the investable capital of all limited partners, that TDA II-Recipient Fund has failed to invest the minimum amount required under this subsection (d) in Illinois companies, then the Treasurer shall deliver written notice to the manager of that fund seeking compliance with the minimum amount requirement under this subsection (d). If, after 180 days of delivery of notice, the TDA II-Recipient Fund has still failed to invest the minimum amount required under this subsection (d) in Illinois companies, then the 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.
(e) The investment of the State Treasurer in any fund created by an Illinois venture capital firm in which the State Treasurer places money pursuant to this Section shall not exceed 15% of the total TDA IIa account balance.
(f) (Blank).
(f-5) The aggregate dollar amount available for new investments entered into following the effective date of this amendatory Act of the 102nd General Assembly shall, as applicable, be allocated as follows:
(g) The Treasurer may deposit no more than 15% of the earnings of the investments in the Technology Development Account IIa into the Technology Development Fund.
(h) The Treasurer shall disclose on the website of the Treasurer, at least annually, the following aggregate financial performance information for TDA II-Recipient Funds:
 
(30 ILCS 265/15)
Sec. 15.
Rules.
The State Treasurer may promulgate rules to implement
this Act.

(Source: P.A. 92-851, eff. 8-26-02.)
 
(30 ILCS 265/20)
Sec. 20. Technology Development Fund.
(a) The Technology Development Fund is
created as a nonappropriated trust fund within the State treasury. Moneys in the Fund may be used by the State Treasurer to pay
expenses related to investments from the Technology Development Account. Moneys
in the Fund in excess of those expenses may be provided as grants to: (i) Illinois
schools to purchase computers, upgrade technology, and support career and technical education; or (ii) incubators, accelerators, innovation research, technology transfer, and educational programs that provide training, support, and other resources to technology businesses to promote the growth of jobs and entrepreneurial and venture capital environments in communities of color or underrepresented or under-resourced communities in the State.
(b) On or before January 31, 2023 and each year thereafter, the Treasurer shall publish on his or her official website the following information regarding the Technology Development Fund for the previous fiscal year:
(Source: P.A. 101-657, eff. 3-23-21; 102-1023, eff. 1-1-23.)
 
(30 ILCS 265/90)
Sec. 90.
(Amendatory provisions; text omitted).

(Source: P.A. 92-851, eff. 8-26-02; text omitted.)
 
(30 ILCS 265/99)
Sec. 99.
Effective date.
This Act takes effect upon becoming law.

(Source: P.A. 92-851, eff. 8-26-02.)

Structure Illinois Compiled Statutes