Rep. Al Riley

Filed: 5/9/2016





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2    AMENDMENT NO. ______. Amend Senate Bill 2864, AS AMENDED,
3by replacing everything after the enacting clause with the
5    "Section 5. The State Treasurer Act is amended by changing
6Section 17 as follows:
7    (15 ILCS 505/17)  (from Ch. 130, par. 17)
8    Sec. 17. The State Treasurer may establish and administer
9both a Public Treasurers' Investment Pool and an E-Pay program
10to supplement and enhance both the investment opportunities and
11the secure electronic payment options otherwise available to
12other custodians of public funds for public agencies in this
14    The Treasurer, in administering the Public Treasurers'
15Investment Pool, may receive public funds paid into the pool by
16any other custodian of such funds and may serve as the fiscal



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1agent of that custodian of public funds for the purpose of
2holding and investing those funds.
3    The Treasurer may invest the public funds constituting the
4Public Treasurers' Investment Pool in the same manner, in the
5same types of investments and subject to the same limitations
6provided for the investment of funds in the State Treasury. The
7Treasurer shall develop, publish, and implement an investment
8policy covering the management of funds in the Public
9Treasurers' Investment Pool. The policy shall be published each
10year as part of the audit of the Public Treasurers' Investment
11Pool by the Auditor General, which shall be distributed to all
12participants. The Treasurer shall notify all Public
13Treasurers' Investment Pool participants in writing, and the
14Treasurer shall publish in at least one newspaper of general
15circulation in both Springfield and Chicago any changes to a
16previously published investment policy at least 30 calendar
17days before implementing the policy. Any such investment policy
18adopted by the Treasurer shall be reviewed, and updated if
19necessary, within 90 days following the installation of a new
21    The Treasurer shall promulgate such rules and regulations
22as he deems necessary for the efficient administration of the
23Public Treasurers' Investment Pool and the E-Pay program,
24including specification of minimum amounts which may be
25deposited in the Pool and minimum periods of time for which
26deposits shall be retained in the Pool. The rules shall provide



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



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1    Section 10. The Deposit of State Moneys Act is amended by
2changing Sections 18 and 22.5 as follows:
3    (15 ILCS 520/18)  (from Ch. 130, par. 37)
4    Sec. 18. The State Treasurer shall make a monthly report to
5the Governor giving a detailed statement of the balances on
6deposit in the several banks or savings and loan associations,
7and the amount paid by each such bank or savings and loan
8association as interest on moneys so deposited. Such statement
9shall contain the name of each bank or savings and loan
10association, and the amount in such bank or savings and loan
11association subject to draft at the close of business on the
12last day of the month for which the report is made, and on the
13last day of the month next preceding. A copy of such report
14shall be retained by the Treasurer and shall be made available
15for inspection by the public at any reasonable time. The
16Treasurer may satisfy the requirements of this Section by
17posting the monthly report on the Treasurer's official Internet
19(Source: P.A. 83-541.)
20    (15 ILCS 520/22.5)  (from Ch. 130, par. 41a)
21    (For force and effect of certain provisions, see Section 90
22of P.A. 94-79)
23    Sec. 22.5. Permitted investments. The State Treasurer may,
24with the approval of the Governor, invest and reinvest any



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



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1associations, incorporated under the laws of this State or any
2other state or under the laws of the United States; provided,
3however, that investments may be made only in those savings and
4loan or building and loan associations the shares and
5withdrawable accounts or other forms of investment securities
6of which are insured by the Federal Deposit Insurance
8    The State Treasurer may not invest State money in any
9savings and loan or building and loan association unless a
10commitment by the savings and loan (or building and loan)
11association, executed by the president or chief executive
12officer of that association, is submitted in the following
14        The .................. Savings and Loan (or Building
15    and Loan) Association pledges not to reject arbitrarily
16    mortgage loans for residential properties within any
17    specific part of the community served by the savings and
18    loan (or building and loan) association because of the
19    location of the property. The savings and loan (or building
20    and loan) association also pledges to make loans available
21    on low and moderate income residential property throughout
22    the community within the limits of its legal restrictions
23    and prudent financial practices.
24    The State Treasurer may, with the approval of the Governor,
25invest or reinvest, at a price not to exceed par, any State
26money in the treasury that is not needed for current



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



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



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



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



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



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