Rep. Al Riley

Filed: 4/28/2016





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2    AMENDMENT NO. ______. Amend Senate Bill 2864 by replacing
3everything after the enacting clause with the following:
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
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



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1holding and investing those funds.
2    The Treasurer may invest the public funds constituting the
3Public Treasurers' Investment Pool in the same manner, in the
4same types of investments and subject to the same limitations
5provided for the investment of funds in the State Treasury. The
6Treasurer shall develop, publish, and implement an investment
7policy covering the management of funds in the Public
8Treasurers' Investment Pool. The policy shall be published each
9year as part of the audit of the Public Treasurers' Investment
10Pool by the Auditor General, which shall be distributed to all
11participants. The Treasurer shall notify all Public
12Treasurers' Investment Pool participants in writing, and the
13Treasurer shall publish in at least one newspaper of general
14circulation in both Springfield and Chicago any changes to a
15previously published investment policy at least 30 calendar
16days before implementing the policy. Any such investment policy
17adopted by the Treasurer shall be reviewed, and updated if
18necessary, within 90 days following the installation of a new
20    The Treasurer shall promulgate such rules and regulations
21as he deems necessary for the efficient administration of the
22Public Treasurers' Investment Pool and the E-Pay program,
23including specification of minimum amounts which may be
24deposited in the Pool and minimum periods of time for which
25deposits shall be retained in the Pool. The rules shall provide
26for the administration expenses of the Pool to be paid from its



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1earnings and for the interest earnings in excess of such
2expenses to be credited or paid monthly to the several
3custodians of public funds participating in the Pool in a
4manner which equitably reflects the differing amounts of their
5respective investments in the Pool and the differing periods of
6time for which such amounts were in the custody of the Pool.
7    Upon creating a Public Treasurers' Investment Pool the
8State Treasurer shall give bond with 2 or more sufficient
9sureties, payable to custodians of public funds who participate
10in the Pool for the benefit of the public agencies whose funds
11are paid into the Pool for investment, in the penal sum of
12$150,000, conditioned for the faithful discharge of his duties
13in relation to the Public Treasurers' Investment Pool.
14    "Public funds" and "public agency", as used in this Section
15have the meanings ascribed to them in Section 1 of "An Act
16relating to certain investments of public funds by public
17agencies", approved July 23, 1943, as amended.
18    This amendatory Act of 1975 is not a limit on any home rule
20    After the effective date of this amendatory Act of the 99th
21General Assembly, participation in the Public Treasurers'
22Investment Pool shall not be a prerequisite for participation
23in the Treasurer's E-Pay program.
24(Source: P.A. 97-537, eff. 8-23-11.)
25    Section 10. The Deposit of State Moneys Act is amended by



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1changing Sections 18 and 22.5 as follows:
2    (15 ILCS 520/18)  (from Ch. 130, par. 37)
3    Sec. 18. The State Treasurer shall make a monthly report to
4the Governor giving a detailed statement of the balances on
5deposit in the several banks or savings and loan associations,
6and the amount paid by each such bank or savings and loan
7association as interest on moneys so deposited. Such statement
8shall contain the name of each bank or savings and loan
9association, and the amount in such bank or savings and loan
10association subject to draft at the close of business on the
11last day of the month for which the report is made, and on the
12last day of the month next preceding. A copy of such report
13shall be retained by the Treasurer and shall be made available
14for inspection by the public at any reasonable time. The
15Treasurer may satisfy the requirements of this Section by
16posting the monthly report on the Treasurer's official Internet
18(Source: P.A. 83-541.)
19    (15 ILCS 520/22.5)  (from Ch. 130, par. 41a)
20    (For force and effect of certain provisions, see Section 90
21of P.A. 94-79)
22    Sec. 22.5. Permitted investments. The State Treasurer may,
23with the approval of the Governor, invest and reinvest any
24State money in the treasury which is not needed for current



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1expenditures due or about to become due, in obligations of the
2United States government or its agencies or of National
3Mortgage Associations established by or under the National
4Housing Act, 1201 U.S.C. 1701 et seq., or in mortgage
5participation certificates representing undivided interests in
6specified, first-lien conventional residential Illinois
7mortgages that are underwritten, insured, guaranteed, or
8purchased by the Federal Home Loan Mortgage Corporation or in
9Affordable Housing Program Trust Fund Bonds or Notes as defined
10in and issued pursuant to the Illinois Housing Development Act.
11All such obligations shall be considered as cash and may be
12delivered over as cash by a State Treasurer to his successor.
13    The State Treasurer may, with the approval of the Governor,
14purchase any state bonds with any money in the State Treasury
15that has been set aside and held for the payment of the
16principal of and interest on the bonds. The bonds shall be
17considered as cash and may be delivered over as cash by the
18State Treasurer to his successor.
19    The State Treasurer may, with the approval of the Governor,
20invest or reinvest any State money in the treasury that is not
21needed for current expenditure due or about to become due, or
22any money in the State Treasury that has been set aside and
23held for the payment of the principal of and the interest on
24any State bonds, in shares, withdrawable accounts, and
25investment certificates of savings and building and loan
26associations, incorporated under the laws of this State or any



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1other state or under the laws of the United States; provided,
2however, that investments may be made only in those savings and
3loan or building and loan associations the shares and
4withdrawable accounts or other forms of investment securities
5of which are insured by the Federal Deposit Insurance
7    The State Treasurer may not invest State money in any
8savings and loan or building and loan association unless a
9commitment by the savings and loan (or building and loan)
10association, executed by the president or chief executive
11officer of that association, is submitted in the following
13        The .................. Savings and Loan (or Building
14    and Loan) Association pledges not to reject arbitrarily
15    mortgage loans for residential properties within any
16    specific part of the community served by the savings and
17    loan (or building and loan) association because of the
18    location of the property. The savings and loan (or building
19    and loan) association also pledges to make loans available
20    on low and moderate income residential property throughout
21    the community within the limits of its legal restrictions
22    and prudent financial practices.
23    The State Treasurer may, with the approval of the Governor,
24invest or reinvest, at a price not to exceed par, any State
25money in the treasury that is not needed for current
26expenditures due or about to become due, or any money in the



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



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1    that are guaranteed by the full faith and credit of the
2    United States of America as to principal and interest.
3        (2) Bonds, notes, debentures, or other similar
4    obligations of the United States of America, its agencies,
5    and instrumentalities.
6        (2.5) Bonds, notes, debentures, or other similar
7    obligations of a foreign government, other than the
8    Republic of the Sudan, that are guaranteed by the full
9    faith and credit of that government as to principal and
10    interest, but only if the foreign government has not
11    defaulted and has met its payment obligations in a timely
12    manner on all similar obligations for a period of at least
13    25 years immediately before the time of acquiring those
14    obligations.
15        (3) Interest-bearing savings accounts,
16    interest-bearing certificates of deposit, interest-bearing
17    time deposits, or any other investments constituting
18    direct obligations of any bank as defined by the Illinois
19    Banking Act.
20        (4) Interest-bearing accounts, certificates of
21    deposit, or any other investments constituting direct
22    obligations of any savings and loan associations
23    incorporated under the laws of this State or any other
24    state or under the laws of the United States.
25        (5) Dividend-bearing share accounts, share certificate
26    accounts, or class of share accounts of a credit union



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



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1    engaged by the State Treasurer.
2        (7.5) Obligations of either corporations or limited
3    liability companies organized in the United States, that
4    have a significant presence in this State, with assets
5    exceeding $500,000,000 if: (i) the obligations are rated at
6    the time of purchase at one of the 3 highest
7    classifications established by at least 2 standard rating
8    services and mature more than 270 days, but less than 5
9    years, from the date of purchase; (ii) the purchases do not
10    exceed 10% of the corporation's or the limited liability
11    company's outstanding obligations; (iii) no more than 5% of
12    the public agency's funds are invested in such obligations
13    of corporations or limited liability companies; and (iv)
14    the corporation or the limited liability company has not
15    been placed on the list of restricted companies by the
16    Illinois Investment Policy Board under Section 1-110.16 of
17    the Illinois Pension Code. The authorization of the
18    Treasurer to invest in new obligations under this paragraph
19    shall expire on June 30, 2019.
20        (8) Money market mutual funds registered under the
21    Investment Company Act of 1940, provided that the portfolio
22    of the money market mutual fund is limited to obligations
23    described in this Section and to agreements to repurchase
24    such obligations.
25        (9) The Public Treasurers' Investment Pool created
26    under Section 17 of the State Treasurer Act or in a fund



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1    managed, operated, and administered by a bank.
2        (10) Repurchase agreements of government securities
3    having the meaning set out in the Government Securities Act
4    of 1986, as now or hereafter amended or succeeded, subject
5    to the provisions of that Act and the regulations issued
6    thereunder.
7        (11) Investments made in accordance with the
8    Technology Development Act.
9    For purposes of this Section, "agencies" of the United
10States Government includes:
11        (i) the federal land banks, federal intermediate
12    credit banks, banks for cooperatives, federal farm credit
13    banks, or any other entity authorized to issue debt
14    obligations under the Farm Credit Act of 1971 (12 U.S.C.
15    2001 et seq.) and Acts amendatory thereto;
16        (ii) the federal home loan banks and the federal home
17    loan mortgage corporation;
18        (iii) the Commodity Credit Corporation; and
19        (iv) any other agency created by Act of Congress.
20    The Treasurer may, with the approval of the Governor, lend
21any securities acquired under this Act. However, securities may
22be lent under this Section only in accordance with Federal
23Financial Institution Examination Council guidelines and only
24if the securities are collateralized at a level sufficient to
25assure the safety of the securities, taking into account market
26value fluctuation. The securities may be collateralized by cash



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1or collateral acceptable under Sections 11 and 11.1.
2(Source: P.A. 96-469, eff. 8-14-09; 96-795, eff. 7-1-10 (see
3Section 5 of P.A. 96-793 for the effective date of changes made
4by P.A. 96-795); 96-870, eff. 1-21-10; 97-277, eff. 8-8-11.)
5    Section 99. Effective date. This Act takes effect upon
6becoming law.".