093_HB0277ham002











                                     LRB093 05884 JLS 12884 a

 1                     AMENDMENT TO HOUSE BILL 277

 2        AMENDMENT NO.     .  Amend House Bill  277  by  replacing
 3    everything after the enacting clause with the following:

 4        "Section  5.  The  Deposit of State Moneys Act is amended
 5    by adding Section 16.3 as follows:

 6        (15 ILCS 520/16.3 new)
 7        Sec.  16.3.  Consideration  of  financial   institution's
 8    commitment to its community.
 9        (a)  In  addition  to any other requirements of this Act,
10    the   State   Treasurer   shall   consider   the    financial
11    institution's   record   and   current   level  of  financial
12    commitment to its local community when  deciding  whether  to
13    deposit State funds in that financial institution.  The State
14    Treasurer   shall   consider   factors   including,  but  not
15    necessarily limited to:
16             (1)  the current and  historical  ratings  that  the
17        financial  institution  has  received, to the extent that
18        those ratings are publicly available, under  the  federal
19        Community Reinvestment Act of 1977;
20             (2)  any changes in ownership, management, policies,
21        or practices of the financial institution that may affect
22        the  level  of  the financial institution's commitment to
 
                            -2-      LRB093 05884 JLS 12884 a
 1        its community;
 2             (3)  the financial impact  that  the  withdrawal  or
 3        denial  of  deposits  of  State  funds  might have on the
 4        financial institution; and
 5             (4)  the financial impact to the State as  a  result
 6        of   withdrawing  State  funds  or  refusing  to  deposit
 7        additional State funds in the financial institution.
 8        (b)  Nothing  in  this  Section  shall  be  construed  as
 9    authorizing the State Treasurer to conduct an examination  or
10    investigation  of  a  financial  institution  or  to  receive
11    information that is not publicly available and the disclosure
12    of which is otherwise prohibited by law.

13        Section  10.  The  Public Funds Investment Act is amended
14    by adding Section 8 as follows:

15        (30 ILCS 235/8 new)
16        Sec.   8.  Consideration   of   financial   institution's
17    commitment to its community.
18        (a)  In addition to any other requirements of this Act, a
19    public  agency  is  authorized  to  consider  the   financial
20    institution's   record   and   current   level  of  financial
21    commitment to its local community when  deciding  whether  to
22    deposit  public  funds  in  that  financial institution.  The
23    public  agency  may  consider  factors  including,  but   not
24    necessarily limited to:
25             (1)  the  current  and  historical  ratings that the
26        financial institution has received, to  the  extent  that
27        those  ratings  are publicly available, under the federal
28        Community Reinvestment Act of 1977;
29             (2)  any changes in ownership, management, policies,
30        or practices of the financial institution that may affect
31        the level of the financial  institution's  commitment  to
32        its community;
 
                            -3-      LRB093 05884 JLS 12884 a
 1             (3)  the  financial  impact  that  the withdrawal or
 2        denial of deposits of public  funds  might  have  on  the
 3        financial institution;
 4             (4)  the  financial impact to the public agency as a
 5        result of withdrawing public funds or refusing to deposit
 6        additional public funds in the financial institution; and
 7             (5)  any additional burden on the resources  of  the
 8        public  agency that might result from ceasing to maintain
 9        deposits of public funds  at  the  financial  institution
10        under consideration.
11        (b)  Nothing  in  this  Section  shall  be  construed  as
12    authorizing  the  public  agency to conduct an examination or
13    investigation  of  a  financial  institution  or  to  receive
14    information that is not publicly available and the disclosure
15    of which is otherwise prohibited by law.

16        Section 99.  Effective date.  This Act  takes  effect  on
17    July 1, 2004.".