2009 IVCA Legislator Series Continued in June

2009 IVCA Legislator Series Continued in June

July 1, 2009

CHICAGO - “ The 2009 IVCA Legislator Series continued in June with two of the - œfour tops-  in Springfield. The IVCA met with Senate Minority Leader Christine Radogno earlier in 2009. The IVCA also had lunch with Senate President John Cullerton on June 5, 2009 and with House Minority Leader Tom Cross on June 22, 2009.

The IVCA Legislator Series allows IVCA members to meet key decision makers from Springfield and to have a robust dialogue of issues currently affecting our industry. These issues include:  

- ¢ Venture capital and private equity issues with the current pension ethics law
- ¢ Moving Technology Development Account II legislation
- ¢ - œInvest in Illinois,-  which is an IVCA focus on pension fund dollar investments in Illinois Venture capital and private equity

Senate President John Cullerton (D-District 6) joined 12 IVCA members on June 5, 2009 for lunch to update the group about the continuing budget negotiations in Springfield and the prospects for key IVCA issues. The lunch was also an excellent opportunity for the Senate president to develop a more in-depth understanding of our industry and to meet industry representatives.

President Cullerton discussed the challenges of developing and garnering widespread support for a state budget that addresses systemic revenue shortfalls relative to programming. He acknowledged the differences in the approach between the Democrat leadership in the House and Senate and with the governor adding that House and Senate Republicans continue to express opposition to any tax increases absent of significant budget cuts.

The Senate president was knowledgeable about and supportive of the IVCA's legislative issues. He understood the IVCA's concern about the problematic provision of the new pension ethics law regarding the sale of fund of funds coming under the state procurement code. He is working with the IVCA to address this issue. He also expressed support for the Technology Fund legislation (TDA II) and agreed that it would have a positive effect on the state's economy if enacted.

The IVCA is hopeful that he will speak to the speaker about moving the legislation. The bill is currently stalled in the House Rules Committee.

House Minority Leader Tom Cross (R-District 84) met with 10 IVCA members on June 22, 2009 also to develop a better understanding of our industry, meet some of its key representatives and discuss our current legislative issues. He too had an understanding of the IVCA's issues and was supportive of trying to resolve them.

The IVCA encouraged him to actively support enactment of the Technology Fund as part of any compromise on an income tax increase and the budget. He was not optimistic that the budget negotiations were going to be resolved any time soon and was concerned about the lack of commitment by the Democrats to make real changes regarding increasing efficiencies in government programs and cutting spending.

He also expressed concern about the new campaign finance law. He said it did not make needed changes and said that his caucus would continue to press for significant changes in the ethics regulations in this area as well as focusing on reductions in government spending before considering any tax increases.

The 2009 IVCA Legislator Meeting Series will continue in the fall.

These small luncheons, which are hosted by the IVCA-PAC, feature a key legislator and IVCA members engaged in an open dialogue on issues that concern the venture capital and private equity community. At these events, we also learn a great deal about the concerns and direction of Illinois government. If you have an interest in attending any of these meetings, please let Maura O'Hara know.