IVCA Provides Updates for State Legislative Issues – 02/1/2023
Illinois Venture Capital Association Illinois Legislative Report
David Stricklin / Stricklin & Associates
Wednesday, February 1, 2023
PARTNERSHIP BILL 2023
IVCA will pursue a revision to Illinois law to better define an investment partnership to include Private Equity funds and satisfy the interpretation of the Illinois Department of Revenue which has resulted in PE funds being classified as a “trade or business.” Legislation to accomplish that goal stalled in the 2021-22 session; a new bill will be introduced soon, sponsored by the chair of the House Revenue Committee Kelly Burke, and Senate President Pro Tem Bill Cunningham. Both are highly effective legislators.
We are in ongoing conversations with the IDOR on partnership definitions including draft recommendations from the Multistate Tax Commission. These are developing conversations and we will keep you updated.
TECHNOLOGY DEVELOPMENT ACCOUNT
IVCA has since 2002 been a leading advocate for the public/private partnership between the private investing community and the Illinois Office of the Treasurer. The Technology Development Account / Illinois Growth and Innovation Fund has been a powerful force for economic development in Illinois, and IVCA has diligently worked to make sure the program meets its investment goals and makes progress on diversifying its roster of investment managers.
The Treasurer has notified IVCA and other members of the ILGIF Advisory Council the Advisory Council is being disbanded as of today. IVCA believes the expertise offered by the Advisory Committee and by 50 South are extremely valuable and will continue to be advocates for the role of private investment experts to guide the program.
LEGISLATURE ORGANIZES
The Illinois General Assembly is slowly but surely organizing itself for the 2023 session. Governor JB Pritzker is preparing his state of the state/budget address for February 15. The governor was re-elected at least in some small part with a message of fiscal responsibility, paying down bills, paying back loans, putting money into a rainy day fund.
The Illinois Senate has established a Special Committee on Pensions which presumably will discuss the overall pension liabilities facing the state and what solutions exist for addressing the issue. The committee is chaired by Sen. Robert Martwick, who has been closely involved in pension legislation during his career.
GOVERNOR DOES DAVOS / DEPUTY GOVERNOR MOVING ON
Governor Pritzker and to staff took a trip to Davos to among other things promote the state’s economy.
ILLINOIS ON INTERNATIONAL STAGE
Deputy Governor Christian Mitchell is departing the governor’s office. Mitchell, a former legislator and someone IVCA worked with over time.
Transitions such as these are relatively common after an election and we may see others in the weeks to come.