Rep. Ron Sandack

Filed: 3/24/2014

 

 


 

 


 
09800HB5507ham001LRB098 17309 EFG 57348 a

1
AMENDMENT TO HOUSE BILL 5507

2    AMENDMENT NO. ______. Amend House Bill 5507 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Pension Code is amended by
5changing Sections 7-195.1, 7-210, and 7-214 as follows:
 
6    (40 ILCS 5/7-195.1)  (from Ch. 108 1/2, par. 7-195.1)
7    Sec. 7-195.1. To establish and maintain a revolving
8account. To establish and maintain a revolving account in a
9bank or savings and loan association, approved by the State
10Treasurer as a State depositary and having capital funds,
11represented by capital, surplus, and undivided profits, of at
12least 5 million dollars, for the purpose of making payments of
13annuities, benefits, and administrative expenses and payments
14to the State Agency provided in Section 7-170. All funds
15deposited in such account shall be placed in the name of the
16Fund fund and shall be withdrawn only by a check or draft upon

 

 

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1the bank or savings and loan association signed by the
2president of the board or the executive director, as the board
3may direct. In case the president or executive director, whose
4signature appears upon any check or draft, after attaching his
5signature ceases to hold office before the delivery thereof to
6the payee, his signature nevertheless shall be valid and
7sufficient for all purposes with the same effect as if he had
8remained in office until delivery thereof. The revolving
9account shall be created by resolution of the board. The State
10Comptroller, upon receipt of a copy of such resolution and a
11voucher designating the payment of $300,000 into the revolving
12account, shall draw his warrant on the State Treasurer for
13payment of same to the Fund for deposit in the revolving
14account. The monies in the revolving account shall be held and
15expenditures shall be made by the Fund for the purposes herein
16set forth. The Fund shall reimburse the revolving account for
17expenditures for such purposes and the Comptroller, upon
18receipt of vouchers signed as provided in Section 7-210 and
19including a statement of expenditures made from the revolving
20account, shall draw his warrant on the State Treasurer for the
21payment of the amount of such expenditures to the Fund for
22deposit in the revolving account.
23    No bank or savings and loan association shall receive
24investment funds as permitted by this Section, unless it has
25complied with the requirements established pursuant to Section
266 of the Public Funds Investment Act "An Act relating to

 

 

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1certain investments of public funds by public agencies",
2approved July 23, 1943, as now or hereafter amended. The
3limitations set forth in such Section 6 shall be applicable
4only at the time of investment and shall not require the
5liquidation of any investment at any time.
6(Source: P.A. 83-541.)
 
7    (40 ILCS 5/7-210)  (from Ch. 108 1/2, par. 7-210)
8    Sec. 7-210. Funds.
9    (a) All money received by the board shall immediately be
10deposited with the custodian State Treasurer for the account of
11the Fund fund, or in the case of funds received under Section
127-199.1, in a separate account maintained for that purpose. All
13payments from the accounts of the Fund shall be made by the
14custodian only, and only by a check or draft signed by the
15president of the board or the executive director, as the board
16may direct. Such checks and drafts All disbursements of funds
17held by the State Treasurer shall be made only upon warrants of
18the State Comptroller drawn upon the Treasurer as custodian of
19this fund upon vouchers signed by the person or persons
20designated for such purpose by resolution of the board. The
21Comptroller is authorized to draw such warrants upon vouchers
22so signed, including warrants payable to the Fund for deposit
23in a revolving account authorized by Section 7-195.1. The
24Treasurer shall accept all warrants so signed and shall be
25released from liability for all payments made thereon. Vouchers

 

 

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1shall be drawn only upon proper authorization by the board as
2properly recorded in the official minute books of the meetings
3of the board.
4    (b) (Blank). All securities of the fund when received shall
5be deposited with the State Treasurer who shall provide
6adequate safe deposit facilities for their preservation and
7have custody of them.
8    (c) The assets of the Fund fund shall be invested as one
9fund, and no particular person, municipality, or
10instrumentality thereof or participating instrumentality shall
11have any right in any specific security or in any item of cash
12other than an undivided interest in the whole.
13    (d) Whenever any employees of a municipality or
14participating instrumentality have been or shall be excluded
15from participation in this Fund fund by virtue of the
16application of paragraph b of Section 7-109 (2), the board
17shall issue a check or draft voucher authorizing the
18Comptroller to draw his warrant upon the Treasurer as custodian
19of this fund in an amount equal to the accumulated
20contributions of such employees. Such check or draft warrant
21shall be drawn in favor of the appropriate fund of the pension
22or retirement fund in which such employees have or shall become
23participants. Such transfer shall terminate any further rights
24of such employees under this Fund fund.
25    (e) If a participating instrumentality terminates
26participation because it fails to meet the requirements of

 

 

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1Section 7-108, it shall pay to the Fund fund the amount equal
2to any net debit balance in its municipality reserve account
3and account receivable. Its successors, and assigns and
4transferees of its assets shall be obligated to make this
5payment to the extent of the value of assets transferred to
6them. The Fund fund shall pay an amount equal to any net credit
7balance to the participating instrumentality, its successors
8or assigns. Any remaining net debit or credit balance not
9collectible or payable shall be transferred to the terminated
10municipality reserve account. The Fund fund shall pay to each
11employee of the participating instrumentality an amount equal
12to his credits in the employee reserves. The employees shall
13have no further rights to any benefits from the Fund fund,
14except that annuities awarded prior to the date of termination
15shall continue to be paid.
16(Source: P.A. 84-812.)
 
17    (40 ILCS 5/7-214)  (from Ch. 108 1/2, par. 7-214)
18    Sec. 7-214. Custodian State treasurer. The Board shall
19appoint one of more custodians to receive and hold the assets
20of the Fund on such terms as the Board may agree. The State
21Treasurer shall be the treasurer of the fund and shall be
22responsible for the proper handling of all the assets of the
23fund in accordance with this Article. He shall furnish a
24corporate surety bond of such amount as the board designates,
25which bond shall indemnify the board against any loss which may

 

 

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1result from any action or failure to act by the treasurer or
2any of his agents. All charges incidental to the procuring and
3giving of such bond shall be paid by the board.
4(Source: Laws 1963, p. 161.)
 
5    Section 99. Effective date. This Act takes effect July 1,
62014.".