SB2864 EnrolledLRB099 20194 RJF 44652 b

1    AN ACT concerning State government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The State Treasurer Act is amended by changing
5Section 17 as follows:
 
6    (15 ILCS 505/17)  (from Ch. 130, par. 17)
7    Sec. 17. The State Treasurer may establish and administer
8both a Public Treasurers' Investment Pool and an E-Pay program
9to supplement and enhance both the investment opportunities and
10the secure electronic payment options otherwise available to
11other custodians of public funds for public agencies in this
12State.
13    The Treasurer, in administering the Public Treasurers'
14Investment Pool, may receive public funds paid into the pool by
15any other custodian of such funds and may serve as the fiscal
16agent of that custodian of public funds for the purpose of
17holding and investing those funds.
18    The Treasurer may invest the public funds constituting the
19Public Treasurers' Investment Pool in the same manner, in the
20same types of investments and subject to the same limitations
21provided for the investment of funds in the State Treasury. The
22Treasurer shall develop, publish, and implement an investment
23policy covering the management of funds in the Public

 

 

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1Treasurers' Investment Pool. The policy shall be published each
2year as part of the audit of the Public Treasurers' Investment
3Pool by the Auditor General, which shall be distributed to all
4participants. The Treasurer shall notify all Public
5Treasurers' Investment Pool participants in writing, and the
6Treasurer shall publish in at least one newspaper of general
7circulation in both Springfield and Chicago any changes to a
8previously published investment policy at least 30 calendar
9days before implementing the policy. Any such investment policy
10adopted by the Treasurer shall be reviewed, and updated if
11necessary, within 90 days following the installation of a new
12Treasurer.
13    The Treasurer shall promulgate such rules and regulations
14as he deems necessary for the efficient administration of the
15Public Treasurers' Investment Pool and the E-Pay program,
16including specification of minimum amounts which may be
17deposited in the Pool and minimum periods of time for which
18deposits shall be retained in the Pool. The rules shall provide
19for the administration expenses of the Pool to be paid from its
20earnings and for the interest earnings in excess of such
21expenses to be credited or paid monthly to the several
22custodians of public funds participating in the Pool in a
23manner which equitably reflects the differing amounts of their
24respective investments in the Pool and the differing periods of
25time for which such amounts were in the custody of the Pool.
26    Upon creating a Public Treasurers' Investment Pool the

 

 

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1State Treasurer shall give bond with 2 or more sufficient
2sureties, payable to custodians of public funds who participate
3in the Pool for the benefit of the public agencies whose funds
4are paid into the Pool for investment, in the penal sum of
5$150,000, conditioned for the faithful discharge of his duties
6in relation to the Public Treasurers' Investment Pool.
7    "Public funds" and "public agency", as used in this Section
8have the meanings ascribed to them in Section 1 of "An Act
9relating to certain investments of public funds by public
10agencies", approved July 23, 1943, as amended.
11    This amendatory Act of 1975 is not a limit on any home rule
12unit.
13    After the effective date of this amendatory Act of the 99th
14General Assembly, participation in the Public Treasurers'
15Investment Pool shall not be a prerequisite for participation
16in the Treasurer's E-Pay program.
17(Source: P.A. 97-537, eff. 8-23-11.)
 
18    Section 10. The Deposit of State Moneys Act is amended by
19changing Sections 18 and 22.5 as follows:
 
20    (15 ILCS 520/18)  (from Ch. 130, par. 37)
21    Sec. 18. The State Treasurer shall make a monthly report to
22the Governor giving a detailed statement of the balances on
23deposit in the several banks or savings and loan associations,
24and the amount paid by each such bank or savings and loan

 

 

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1association as interest on moneys so deposited. Such statement
2shall contain the name of each bank or savings and loan
3association, and the amount in such bank or savings and loan
4association subject to draft at the close of business on the
5last day of the month for which the report is made, and on the
6last day of the month next preceding. A copy of such report
7shall be retained by the Treasurer and shall be made available
8for inspection by the public at any reasonable time. The
9Treasurer may satisfy the requirements of this Section by
10posting the monthly report on the Treasurer's official Internet
11website.
12(Source: P.A. 83-541.)
 
13    (15 ILCS 520/22.5)  (from Ch. 130, par. 41a)
14    (For force and effect of certain provisions, see Section 90
15of P.A. 94-79)
16    Sec. 22.5. Permitted investments. The State Treasurer may,
17with the approval of the Governor, invest and reinvest any
18State money in the treasury which is not needed for current
19expenditures due or about to become due, in obligations of the
20United States government or its agencies or of National
21Mortgage Associations established by or under the National
22Housing Act, 1201 U.S.C. 1701 et seq., or in mortgage
23participation certificates representing undivided interests in
24specified, first-lien conventional residential Illinois
25mortgages that are underwritten, insured, guaranteed, or

 

 

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1purchased by the Federal Home Loan Mortgage Corporation or in
2Affordable Housing Program Trust Fund Bonds or Notes as defined
3in and issued pursuant to the Illinois Housing Development Act.
4All such obligations shall be considered as cash and may be
5delivered over as cash by a State Treasurer to his successor.
6    The State Treasurer may, with the approval of the Governor,
7purchase any state bonds with any money in the State Treasury
8that has been set aside and held for the payment of the
9principal of and interest on the bonds. The bonds shall be
10considered as cash and may be delivered over as cash by the
11State Treasurer to his successor.
12    The State Treasurer may, with the approval of the Governor,
13invest or reinvest any State money in the treasury that is not
14needed for current expenditure due or about to become due, or
15any money in the State Treasury that has been set aside and
16held for the payment of the principal of and the interest on
17any State bonds, in shares, withdrawable accounts, and
18investment certificates of savings and building and loan
19associations, incorporated under the laws of this State or any
20other state or under the laws of the United States; provided,
21however, that investments may be made only in those savings and
22loan or building and loan associations the shares and
23withdrawable accounts or other forms of investment securities
24of which are insured by the Federal Deposit Insurance
25Corporation.
26    The State Treasurer may not invest State money in any

 

 

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1savings and loan or building and loan association unless a
2commitment by the savings and loan (or building and loan)
3association, executed by the president or chief executive
4officer of that association, is submitted in the following
5form:
6        The .................. Savings and Loan (or Building
7    and Loan) Association pledges not to reject arbitrarily
8    mortgage loans for residential properties within any
9    specific part of the community served by the savings and
10    loan (or building and loan) association because of the
11    location of the property. The savings and loan (or building
12    and loan) association also pledges to make loans available
13    on low and moderate income residential property throughout
14    the community within the limits of its legal restrictions
15    and prudent financial practices.
16    The State Treasurer may, with the approval of the Governor,
17invest or reinvest, at a price not to exceed par, any State
18money in the treasury that is not needed for current
19expenditures due or about to become due, or any money in the
20State Treasury that has been set aside and held for the payment
21of the principal of and interest on any State bonds, in bonds
22issued by counties or municipal corporations of the State of
23Illinois.
24    The State Treasurer may, with the approval of the Governor,
25invest or reinvest any State money in the Treasury which is not
26needed for current expenditure, due or about to become due, or

 

 

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1any money in the State Treasury which has been set aside and
2held for the payment of the principal of and the interest on
3any State bonds, in participations in loans, the principal of
4which participation is fully guaranteed by an agency or
5instrumentality of the United States government; provided,
6however, that such loan participations are represented by
7certificates issued only by banks which are incorporated under
8the laws of this State or any other state or under the laws of
9the United States, and such banks, but not the loan
10participation certificates, are insured by the Federal Deposit
11Insurance Corporation.
12    The State Treasurer may, with the approval of the Governor,
13invest or reinvest any State money in the Treasury that is not
14needed for current expenditure, due or about to become due, or
15any money in the State Treasury that has been set aside and
16held for the payment of the principal of and the interest on
17any State bonds, in any of the following:
18        (1) Bonds, notes, certificates of indebtedness,
19    Treasury bills, or other securities now or hereafter issued
20    that are guaranteed by the full faith and credit of the
21    United States of America as to principal and interest.
22        (2) Bonds, notes, debentures, or other similar
23    obligations of the United States of America, its agencies,
24    and instrumentalities.
25        (2.5) Bonds, notes, debentures, or other similar
26    obligations of a foreign government, other than the

 

 

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1    Republic of the Sudan, that are guaranteed by the full
2    faith and credit of that government as to principal and
3    interest, but only if the foreign government has not
4    defaulted and has met its payment obligations in a timely
5    manner on all similar obligations for a period of at least
6    25 years immediately before the time of acquiring those
7    obligations.
8        (3) Interest-bearing savings accounts,
9    interest-bearing certificates of deposit, interest-bearing
10    time deposits, or any other investments constituting
11    direct obligations of any bank as defined by the Illinois
12    Banking Act.
13        (4) Interest-bearing accounts, certificates of
14    deposit, or any other investments constituting direct
15    obligations of any savings and loan associations
16    incorporated under the laws of this State or any other
17    state or under the laws of the United States.
18        (5) Dividend-bearing share accounts, share certificate
19    accounts, or class of share accounts of a credit union
20    chartered under the laws of this State or the laws of the
21    United States; provided, however, the principal office of
22    the credit union must be located within the State of
23    Illinois.
24        (6) Bankers' acceptances of banks whose senior
25    obligations are rated in the top 2 rating categories by 2
26    national rating agencies and maintain that rating during

 

 

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1    the term of the investment.
2        (7) Short-term obligations of either corporations or
3    limited liability companies organized in the United States
4    with assets exceeding $500,000,000 if (i) the obligations
5    are rated at the time of purchase at one of the 3 highest
6    classifications established by at least 2 standard rating
7    services and mature not later than 270 days from the date
8    of purchase, (ii) the purchases do not exceed 10% of the
9    corporation's or the limited liability company's
10    outstanding obligations, (iii) no more than one-third of
11    the public agency's funds are invested in short-term
12    obligations of either corporations or limited liability
13    companies, and (iv) the corporation or the limited
14    liability company has not been placed on the list of
15    restricted companies by the Illinois Investment Policy
16    Board under Section 1-110.16 identified as a forbidden
17    entity, as that term is defined in Section 1-110.6 of the
18    Illinois Pension Code, by an independent researching firm
19    that specializes in global security risk that has been
20    engaged by the State Treasurer.
21        (7.5) Obligations of either corporations or limited
22    liability companies organized in the United States, that
23    have a significant presence in this State, with assets
24    exceeding $500,000,000 if: (i) the obligations are rated at
25    the time of purchase at one of the 3 highest
26    classifications established by at least 2 standard rating

 

 

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1    services and mature more than 270 days, but less than 5
2    years, from the date of purchase; (ii) the purchases do not
3    exceed 10% of the corporation's or the limited liability
4    company's outstanding obligations; (iii) no more than 5% of
5    the public agency's funds are invested in such obligations
6    of corporations or limited liability companies; and (iv)
7    the corporation or the limited liability company has not
8    been placed on the list of restricted companies by the
9    Illinois Investment Policy Board under Section 1-110.16 of
10    the Illinois Pension Code. The authorization of the
11    Treasurer to invest in new obligations under this paragraph
12    shall expire on June 30, 2019.
13        (8) Money market mutual funds registered under the
14    Investment Company Act of 1940, provided that the portfolio
15    of the money market mutual fund is limited to obligations
16    described in this Section and to agreements to repurchase
17    such obligations.
18        (9) The Public Treasurers' Investment Pool created
19    under Section 17 of the State Treasurer Act or in a fund
20    managed, operated, and administered by a bank.
21        (10) Repurchase agreements of government securities
22    having the meaning set out in the Government Securities Act
23    of 1986, as now or hereafter amended or succeeded, subject
24    to the provisions of that Act and the regulations issued
25    thereunder.
26        (11) Investments made in accordance with the

 

 

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1    Technology Development Act.
2    For purposes of this Section, "agencies" of the United
3States Government includes:
4        (i) the federal land banks, federal intermediate
5    credit banks, banks for cooperatives, federal farm credit
6    banks, or any other entity authorized to issue debt
7    obligations under the Farm Credit Act of 1971 (12 U.S.C.
8    2001 et seq.) and Acts amendatory thereto;
9        (ii) the federal home loan banks and the federal home
10    loan mortgage corporation;
11        (iii) the Commodity Credit Corporation; and
12        (iv) any other agency created by Act of Congress.
13    The Treasurer may, with the approval of the Governor, lend
14any securities acquired under this Act. However, securities may
15be lent under this Section only in accordance with Federal
16Financial Institution Examination Council guidelines and only
17if the securities are collateralized at a level sufficient to
18assure the safety of the securities, taking into account market
19value fluctuation. The securities may be collateralized by cash
20or collateral acceptable under Sections 11 and 11.1.
21(Source: P.A. 96-469, eff. 8-14-09; 96-795, eff. 7-1-10 (see
22Section 5 of P.A. 96-793 for the effective date of changes made
23by P.A. 96-795); 96-870, eff. 1-21-10; 97-277, eff. 8-8-11.)
 
24    Section 99. Effective date. This Act takes effect upon
25becoming law.