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Illinois Senate Bill SB1900

Illinois 2025-2026 Regular Session

Illinois Senate Bill SB1900 Compare Versions

Only one version of the bill is available at this time.
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11 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1900 Introduced 2/6/2025, by Sen. Elgie R. Sims, Jr. SYNOPSIS AS INTRODUCED: New Act Creates the Inclusive Venture Investment Act. Provides that the State Treasurer shall create a Direct Matching Funds Program. Provides that the purpose of the program shall be to leverage State-managed funds for investments in minority-owned venture capital firms, minority-owned financial managers, and minority-led startups. Sets forth provisions for investment requirements and incentives; administration; transparency and reporting; oversight and compliance; confidentiality; and rulemaking. Effective July 1, 2026. LRB104 11832 SPS 21922 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1900 Introduced 2/6/2025, by Sen. Elgie R. Sims, Jr. SYNOPSIS AS INTRODUCED: New Act New Act Creates the Inclusive Venture Investment Act. Provides that the State Treasurer shall create a Direct Matching Funds Program. Provides that the purpose of the program shall be to leverage State-managed funds for investments in minority-owned venture capital firms, minority-owned financial managers, and minority-led startups. Sets forth provisions for investment requirements and incentives; administration; transparency and reporting; oversight and compliance; confidentiality; and rulemaking. Effective July 1, 2026. LRB104 11832 SPS 21922 b LRB104 11832 SPS 21922 b A BILL FOR
22 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1900 Introduced 2/6/2025, by Sen. Elgie R. Sims, Jr. SYNOPSIS AS INTRODUCED:
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55 Creates the Inclusive Venture Investment Act. Provides that the State Treasurer shall create a Direct Matching Funds Program. Provides that the purpose of the program shall be to leverage State-managed funds for investments in minority-owned venture capital firms, minority-owned financial managers, and minority-led startups. Sets forth provisions for investment requirements and incentives; administration; transparency and reporting; oversight and compliance; confidentiality; and rulemaking. Effective July 1, 2026.
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1111 1 AN ACT concerning State government.
1212 2 Be it enacted by the People of the State of Illinois,
1313 3 represented in the General Assembly:
1414 4 Section 1. Short title. This Act may be cited as the
1515 5 Illinois Inclusive Venture Investment Act.
1616 6 Section 5. Findings. The General Assembly finds and
1717 7 declares:
1818 8 (a) Illinois has a vibrant entrepreneurial ecosystem but
1919 9 lacks equitable access to capital for minority entrepreneurs,
2020 10 venture capital firms, and financial managers.
2121 11 (b) Minority-owned financial management firms, such as
2222 12 Ariel Investments, face systemic barriers to accessing
2323 13 institutional portfolios despite proven track records of
2424 14 success.
2525 15 (c) Programs such as Chicago's 1871, Discovery Partners
2626 16 Institute, and minority-owned financial firms play a crucial
2727 17 role in fostering entrepreneurship, innovation, and economic
2828 18 growth among underrepresented groups.
2929 19 (d) This Act will drive equitable economic growth by
3030 20 ensuring significant institutional capital flows to
3131 21 minority-led startups, minority-owned venture capital firms,
3232 22 and minority-owned financial management firms.
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3939 Creates the Inclusive Venture Investment Act. Provides that the State Treasurer shall create a Direct Matching Funds Program. Provides that the purpose of the program shall be to leverage State-managed funds for investments in minority-owned venture capital firms, minority-owned financial managers, and minority-led startups. Sets forth provisions for investment requirements and incentives; administration; transparency and reporting; oversight and compliance; confidentiality; and rulemaking. Effective July 1, 2026.
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6767 1 Section 10. Definitions. As used in this Act:
6868 2 "Covered institution" means:
6969 3 (1) public and private universities, colleges, and
7070 4 institutions of higher education with endowments or
7171 5 investment portfolios exceeding $50,000,000;
7272 6 (2) museums, cultural centers, and nonprofit
7373 7 organizations with endowments or investment portfolios
7474 8 exceeding $25,000,000 or receiving cumulative State
7575 9 funding or tax exemptions exceeding $1,000,000 annually;
7676 10 (3) nonprofit hospitals and healthcare systems with
7777 11 investment portfolios exceeding $50,000,000; and
7878 12 (4) public pension funds or retirement systems of
7979 13 State or local governments.
8080 14 "Minority-led startup" means a business that:
8181 15 (1) is headquartered in this State or has significant
8282 16 operations in this State; and
8383 17 (2) is at least 51% owned and controlled by one or more
8484 18 minority persons, women, or persons with disabilities, as
8585 19 those terms are defined in the Business Enterprise for
8686 20 Minorities, Women, and Persons with Disabilities Act.
8787 21 "Minority-owned financial manager" means a financial firm,
8888 22 asset manager, or investment manager that:
8989 23 (1) is at least 51% owned by one or more minority
9090 24 persons, women, or persons with disabilities, as those
9191 25 terms are defined in the Business Enterprise for
9292 26 Minorities, Women, and Persons with Disabilities Act; and
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103103 1 (2) the management and daily business operations are
104104 2 controlled by one or more of the owners described in
105105 3 paragraph (1) of this definition.
106106 4 "Minority-owned venture capital firm" means a financial
107107 5 firm or investment manager that:
108108 6 (1) is at least 51% owned by one or more minority
109109 7 persons, women, or persons with disabilities, as those
110110 8 terms are defined in the Business Enterprise for
111111 9 Minorities, Women, and Persons with Disabilities Act; and
112112 10 (2) the management and daily business operations of
113113 11 which are controlled by one or more of the owners
114114 12 described in paragraph (1) of this definition.
115115 13 "Special investment initiative" means a program,
116116 14 incubator, accelerator, or similar initiative that:
117117 15 (1) provides resources, mentorship, training, or
118118 16 capital to entrepreneurs who are minority persons, women,
119119 17 or persons with disabilities, as those terms are defined
120120 18 in the Business Enterprise for Minorities, Women, and
121121 19 Persons with Disabilities Act; and
122122 20 (2) operates in this State or primarily supports
123123 21 businesses located in this State.
124124 22 "Special Investment Initiative" includes, but is not
125125 23 limited to, university-led startup programs, nonprofit
126126 24 entrepreneurship accelerators, and private-sector incubators
127127 25 aimed at supporting underrepresented founders.
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138138 1 Section 15. Investment requirements and incentives.
139139 2 (a) The State Treasurer shall create a Direct Matching
140140 3 Funds Program. The purpose of the program shall be to leverage
141141 4 State-managed funds for investments in minority-owned venture
142142 5 capital firms, minority-owned financial managers, and
143143 6 minority-led startups.
144144 7 (b) For every dollar invested by a covered institution in
145145 8 an eligible minority-owned financial manager, venture capital
146146 9 firm, or minority-led startup, the State Treasurer shall
147147 10 provide a matching contribution of up to 50 cents per dollar
148148 11 using existing funds managed by the State Treasurer.
149149 12 (c) Investments that exceed annual performance benchmarks,
150150 13 as determined by historical market returns for venture capital
151151 14 or institutional portfolios, shall receive an additional 25
152152 15 cents per dollar in matching funds from the State Treasurer.
153153 16 (d) An institution whose participating portfolio
154154 17 underperforms the benchmarks for a period more than 5 years
155155 18 may be prohibited from participating in the program until the
156156 19 institution can demonstrate significant improvement with
157157 20 performance above the benchmark for 8 consecutive quarters.
158158 21 (e) The matching funds provided in accordance with this
159159 22 Section shall be:
160160 23 (1) capped at $10,000,000, subject to available State
161161 24 resources;
162162 25 (2) restricted to investments made in firms or
163163 26 businesses based in this State with significant operations
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174174 1 in this State; and
175175 2 (3) allocated based on a review and selection process
176176 3 established by the State Treasurer by rule.
177177 4 (f) To be eligible to participate in this program, covered
178178 5 institutions shall allocate at least 20% of their investment
179179 6 portfolios to:
180180 7 (1) minority-owned venture capital firms;
181181 8 (2) minority-led startups;
182182 9 (3) minority-owned financial managers; or
183183 10 (4) special investment initiatives supporting diverse
184184 11 founders, including:
185185 12 (A) university startup incubator programs aimed at
186186 13 supporting underrepresented entrepreneurs; and
187187 14 (B) nonprofit business accelerator programs
188188 15 providing mentorship, training, and resources for
189189 16 minority founders.
190190 17 (g) All qualifying investments shall serve the purpose of
191191 18 fostering diversity, equity, and inclusion in this State's
192192 19 financial and entrepreneurial ecosystem.
193193 20 (h) All participating covered institutions shall submit
194194 21 documentation of qualifying investments, including detailed
195195 22 reporting on recipients' diversity status and operations in
196196 23 this State.
197197 24 Section 20. Administration. The State Treasurer shall
198198 25 administer the Direct Matching Funds Program, including:
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209209 1 (1) verifying eligibility of institutions and
210210 2 recipients;
211211 3 (2) distributing matching funds to qualifying
212212 4 institutions;
213213 5 (3) publishing an annual report detailing the matching
214214 6 funds distributed, recipients, and outcomes, including
215215 7 jobs created, capital raised, and economic impact; and
216216 8 (4) reallocate unused matching funds at the end of the
217217 9 fiscal year proportionally among participating
218218 10 institutions based on documented investment needs.
219219 11 Section 25. Transparency and reporting.
220220 12 (a) A covered institution participating in the program
221221 13 shall submit an annual report to the State Treasurer,
222222 14 including:
223223 15 (1) the total value of their endowments or investment
224224 16 portfolios;
225225 17 (2) the percentage of investments allocated to
226226 18 minority-owned venture capital firms, minority-owned
227227 19 financial managers, minority-led startups, and special
228228 20 investment initiatives;
229229 21 (3) the names of minority-owned financial managers,
230230 22 venture firms, and startups supported; and
231231 23 (4) year-over-year changes in investment diversity.
232232 24 (b) The State Treasurer shall make the reports submitted
233233 25 under subsection (a) publicly accessible, including detailed
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244244 1 scorecards that ranks institutions based on the percentage of
245245 2 investments allocated to minority-owned financial managers,
246246 3 venture capital firms, startups, and special investment
247247 4 initiatives.
248248 5 (c) A special investment initiative receiving funds under
249249 6 this Act shall submit an annual performance report to the
250250 7 State Treasurer, including:
251251 8 (1) the number and percentage of minority-led startups
252252 9 supported; and
253253 10 (2) outcomes such as capital raised, jobs created, and
254254 11 businesses launched.
255255 12 Section 30. Oversight and compliance.
256256 13 (a) The State Treasurer shall oversee the implementation
257257 14 and enforcement of this Act, including the collection and
258258 15 publication of reports.
259259 16 (b) The State Treasurer may conduct audits of covered
260260 17 institutions and special investment initiatives to ensure
261261 18 compliance with this Act. A covered institution participating
262262 19 in the program shall comply with an audit conducted by the
263263 20 State Treasurer.
264264 21 (c) An institution that participates in this program shall
265265 22 meet reporting and compliance standards to retain program
266266 23 eligibility.
267267 24 (d) An institution that fails to meet the 20% investment
268268 25 allocation requirement over 2 consecutive years shall lose
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279279 1 eligibility to participate in the program for a period of no
280280 2 more than 5 years.
281281 3 (e) An institution that fails to meet reporting
282282 4 requirements or misuses matching funds may be required to
283283 5 repay any funds distributed under this Act.
284284 6 Section 35. Confidentiality. The State Treasurer may
285285 7 redact sensitive or proprietary financial information that
286286 8 does not further the intent of this Act.
287287 9 Section 40. Rulemaking. No later than 6 months after the
288288 10 effective date of this Act, the State Treasurer shall adopt
289289 11 any rules necessary to implement this Act.
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