HB4122 95TH GENERAL ASSEMBLY

LRB095 12755 BDD 38116 b

95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
HB4122

Introduced 7/18/2007, by Rep. William B. Black

SYNOPSIS AS INTRODUCED:

15 ILCS 520/14.1 new

Amends the Deposit of State Moneys Act. Provides that the Treasurer may not create a linked deposit program unless he or she provides notice to the General Assembly, the Governor, and the Comptroller and prohibits the Treasurer from entering into any agreement with a financial institution concerning a linked deposit program if, within 30 days after the General Assembly next convenes after receiving the notice, either house of the General Assembly disapproves the program by the record vote of a majority of the members elected. Requires the Treasurer to provide notice to the General Assembly, the Governor, and the Comptroller of each linked deposit program that exists on the effective date of this amendatory Act and provides that, if, within 30 days after the General Assembly next convenes after receiving the notice, either house of the General Assembly disapproves the program by the record vote of a majority of the members elected, then the Treasurer must conclude the linked deposit program as soon as possible upon the expiration of any existing agreements concerning the program. Effective immediately.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning State government.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Deposit of State Moneys Act is amended by adding Section 14.1 as follows:

(15 ILCS 520/14.1 new)

Sec. 14.1. Linked deposit programs.

(a) For the purpose of this Section, "linked deposit program" means a program under which the Treasurer agrees to deposit moneys with a financial institution at less than current market rates if the institution agrees to provide financial incentives to a specified class of customers in order to further social policies determined by the Treasurer. The financial incentives of the financial institution may include, without limitation, low-interest loans, investments with above-market-rate returns, rebates or refunds, or any other financial inventive.

(b) Beginning on the effective date of this amendatory Act of the 95th General Assembly, the Treasurer may not create a linked deposit program unless he or she provides notice to the General Assembly, the Governor, and the Comptroller. The notice required under this subsection must set forth:

(1) a description of the linked deposit program;

(2) the amount or rate of interest that would be collected from deposits at the current market rate in the absence of the linked deposit program;

(3) the amount or rate of interest to be collected from deposits under the program;

(4) an estimate of the total amount of State moneys intended to be invested under the program;

(5) the proposed duration of the program; and

(6) a description of the financial institutions intended to be included within the program.

The Treasurer may not enter into any agreement with a financial institution concerning a linked deposit program if, within 30 days after the General Assembly next convenes after receiving the notice under this subsection, either house of the General Assembly disapproves the program by the record vote of a majority of the members elected.

(d) Within 30 days after the effective date of this amendatory Act of the 95th General Assembly, the Treasurer must provide notice to the General Assembly, the Governor, and the Comptroller of each linked deposit program that exists on the effective date of this amendatory Act of the 95th General Assembly. For each linked deposit program, the notice required under this subsection must set forth:

(1) a description of the linked deposit program;

(2) the amount or rate of interest that would have been collected from deposits at the market rate in the absence of the linked deposit program;

(3) the amount or rate of interest collected from deposits under the program;

(4) an estimate of the total amount of State moneys intended to be invested under the program;

(5) the proposed duration of the program; and

(6) a description of the financial institutions intended to be included within the program.

If, within 30 days after the General Assembly next convenes after receiving the notice under this subsection, either house of the General Assembly disapproves the program by the record vote of a majority of the members elected, then the Treasurer must conclude the linked deposit program as soon as possible upon the expiration of any existing agreements concerning the program.

Section 99. Effective date. This Act takes effect upon becoming law.