Full Text of SB1169 95th General Assembly
SB1169sam002 95TH GENERAL ASSEMBLY
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Sen. Jacqueline Y. Collins
Filed: 3/26/2007
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| AMENDMENT TO SENATE BILL 1169
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| AMENDMENT NO. ______. Amend Senate Bill 1169 by inserting | 3 |
| the following immediately above the enacting clause: | 4 |
| "WHEREAS, This amendatory Act of the 95th General Assembly | 5 |
| may also be cited as an Act to disassociate from genocide and | 6 |
| terrorism in Sudan; therefore"; and | 7 |
| by replacing everything after the enacting clause with the | 8 |
| following:
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| "Section 1. Findings. The Government of the United States | 10 |
| has determined that Sudan is a nation that sponsors terrorism | 11 |
| and genocide. The General Assembly finds that acts of terrorism | 12 |
| have caused injury and death to Illinois and United States | 13 |
| residents who serve in the United States military, and pose a | 14 |
| significant threat to safety and health in Illinois. The | 15 |
| General Assembly finds that public employees and their | 16 |
| families, including police officers and firefighters, are more |
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| likely than others to be affected by acts of terrorism. The | 2 |
| General Assembly finds that Sudan continues to solicit | 3 |
| investment and commercial activities by forbidden entities, | 4 |
| including private market funds. The General Assembly finds that | 5 |
| investments in forbidden entities are inherently and unduly | 6 |
| risky, not in the interests of public pensioners and Illinois | 7 |
| taxpayers, and against public policy. The General Assembly | 8 |
| finds that Sudan's capacity to sponsor terrorism and genocide | 9 |
| depends on or is supported by the activities of forbidden | 10 |
| entities. The General Assembly further finds and re-affirms | 11 |
| that the people of the State, acting through their | 12 |
| representatives, do not want to be associated with forbidden | 13 |
| entities, genocide, and terrorism. | 14 |
| Section 5. The Deposit of State Moneys Act is amended by | 15 |
| reenacting and changing Section 22.5 as follows:
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| (15 ILCS 520/22.5) (from Ch. 130, par. 41a)
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| (For force and effect of certain provisions, see Section 90 | 18 |
| of P.A. 94-79) | 19 |
| Sec. 22.5. Permitted investments. The State Treasurer may, | 20 |
| with the
approval of the Governor, invest and reinvest any | 21 |
| State money in the treasury
which is not needed for current | 22 |
| expenditures due or about to become due, in
obligations of the | 23 |
| United States government or its agencies or of National
| 24 |
| Mortgage Associations established by or under the National |
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| Housing Act, 1201
U.S.C. 1701 et seq., or
in mortgage | 2 |
| participation certificates representing undivided interests in
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| specified, first-lien conventional residential Illinois | 4 |
| mortgages that are
underwritten, insured, guaranteed, or | 5 |
| purchased by the Federal Home Loan
Mortgage Corporation or in | 6 |
| Affordable Housing Program Trust Fund Bonds or
Notes as defined | 7 |
| in and issued pursuant to the Illinois Housing Development
Act. | 8 |
| All such obligations shall be considered as cash and may
be | 9 |
| delivered over as cash by a State Treasurer to his successor.
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| The State Treasurer may, with the approval of the Governor, | 11 |
| purchase
any state bonds with any money in the State Treasury | 12 |
| that has been set
aside and held for the payment of the | 13 |
| principal of and interest on the
bonds. The bonds shall be | 14 |
| considered as cash and may be delivered over
as cash by the | 15 |
| State Treasurer to his successor.
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| The State Treasurer may, with the approval of the Governor, | 17 |
| invest or
reinvest any State money in the treasury that is not | 18 |
| needed for
current expenditure due or about to become due, or | 19 |
| any money in the
State Treasury that has been set aside and | 20 |
| held for the payment of the
principal of and the interest on | 21 |
| any State bonds, in shares,
withdrawable accounts, and | 22 |
| investment certificates of savings and
building and loan | 23 |
| associations, incorporated under the laws of this
State or any | 24 |
| other state or under the laws of the United States;
provided, | 25 |
| however, that investments may be made only in those savings
and | 26 |
| loan or building and loan associations the shares and |
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| withdrawable
accounts or other forms of investment securities | 2 |
| of which are insured
by the Federal Deposit Insurance | 3 |
| Corporation.
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| The State Treasurer may not invest State money in any | 5 |
| savings and
loan or building and loan association unless a | 6 |
| commitment by the savings
and loan (or building and loan) | 7 |
| association, executed by the president
or chief executive | 8 |
| officer of that association, is submitted in the
following | 9 |
| form:
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| The .................. Savings and Loan (or Building | 11 |
| and Loan)
Association pledges not to reject arbitrarily | 12 |
| mortgage loans for
residential properties within any | 13 |
| specific part of the community served
by the savings and | 14 |
| loan (or building and loan) association because of
the | 15 |
| location of the property. The savings and loan (or building | 16 |
| and
loan) association also pledges to make loans available | 17 |
| on low and
moderate income residential property throughout | 18 |
| the community within
the limits of its legal restrictions | 19 |
| and prudent financial practices.
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| The State Treasurer may, with the approval of the Governor, | 21 |
| invest or
reinvest, at a price not to exceed par, any State | 22 |
| money in the treasury
that is not needed for current | 23 |
| expenditures due or about to become
due, or any money in the | 24 |
| State Treasury that has been set aside and
held for the payment | 25 |
| of the principal of and interest on any State
bonds, in bonds | 26 |
| issued by counties or municipal corporations of the
State of |
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| Illinois.
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| The State Treasurer may, with the approval of the Governor, | 3 |
| invest or
reinvest any State money in the Treasury which is not | 4 |
| needed for current
expenditure, due or about to become due, or | 5 |
| any money in the State Treasury
which has been set aside and | 6 |
| held for the payment of the principal of and
the interest on | 7 |
| any State bonds, in participations in loans, the principal
of | 8 |
| which participation is fully guaranteed by an agency or | 9 |
| instrumentality
of the United States government; provided, | 10 |
| however, that such loan
participations are represented by | 11 |
| certificates issued only by banks which
are incorporated under | 12 |
| the laws of this State or any other state
or under the laws of | 13 |
| the United States, and such banks, but not
the loan | 14 |
| participation certificates, are insured by the Federal Deposit
| 15 |
| Insurance Corporation.
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| The State Treasurer may, with the approval of the Governor, | 17 |
| invest or
reinvest any State money in the Treasury that is not | 18 |
| needed for current
expenditure, due or about to become due, or | 19 |
| any money in the State Treasury
that has been set aside and | 20 |
| held for the payment of the principal of and
the interest on | 21 |
| any State bonds, in any of the following:
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| (1) Bonds, notes, certificates of indebtedness, | 23 |
| Treasury bills, or other
securities now or hereafter issued | 24 |
| that are guaranteed by the full faith
and credit of the | 25 |
| United States of America as to principal and interest.
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| (2) Bonds, notes, debentures, or other similar |
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| obligations of the United
States of America, its agencies, | 2 |
| and instrumentalities.
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| (2.5) Bonds, notes, debentures, or other similar | 4 |
| obligations of a
foreign government, other than the | 5 |
| Republic of the Sudan, that are guaranteed by the full | 6 |
| faith and credit of that
government as to principal and | 7 |
| interest, but only if the foreign government
has not | 8 |
| defaulted and has met its payment obligations in a timely | 9 |
| manner on
all similar obligations for a period of at least | 10 |
| 25 years immediately before
the time of acquiring those | 11 |
| obligations.
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| (3) Interest-bearing savings accounts, | 13 |
| interest-bearing certificates of
deposit, interest-bearing | 14 |
| time deposits, or any other investments
constituting | 15 |
| direct obligations of any bank as defined by the Illinois
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| Banking Act.
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| (4) Interest-bearing accounts, certificates of | 18 |
| deposit, or any other
investments constituting direct | 19 |
| obligations of any savings and loan
associations | 20 |
| incorporated under the laws of this State or any other | 21 |
| state or
under the laws of the United States.
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| (5) Dividend-bearing share accounts, share certificate | 23 |
| accounts, or
class of share accounts of a credit union | 24 |
| chartered under the laws of this
State or the laws of the | 25 |
| United States; provided, however, the principal
office of | 26 |
| the credit union must be located within the State of |
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| Illinois.
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| (6) Bankers' acceptances of banks whose senior | 3 |
| obligations are rated in
the top 2 rating categories by 2 | 4 |
| national rating agencies and maintain that
rating during | 5 |
| the term of the investment.
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| (7) Short-term obligations of corporations organized | 7 |
| in the United
States with assets exceeding $500,000,000 if | 8 |
| (i) the obligations are rated
at the time of purchase at | 9 |
| one of the 3 highest classifications established
by at | 10 |
| least 2 standard rating services and mature not later than
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| 180 days from the date of purchase, (ii) the purchases do | 12 |
| not exceed 10% of
the corporation's outstanding | 13 |
| obligations, (iii) no more than one-third of
the public | 14 |
| agency's funds are invested in short-term obligations of
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| corporations, and (iv) the corporation has not been | 16 |
| identified as a forbidden entity, as that term is defined | 17 |
| in Section 1-110.6 of the Illinois Pension Code, by an | 18 |
| independent researching firm that specializes in global | 19 |
| security risk that has been engaged by the State Treasurer
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| is not a forbidden entity, as defined in Section 22.6 of | 21 |
| the Deposit of State Moneys Act .
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| (8) Money market mutual funds registered under the | 23 |
| Investment Company
Act of 1940, provided that the portfolio | 24 |
| of the money market mutual fund is
limited to obligations | 25 |
| described in this Section and to agreements to
repurchase | 26 |
| such obligations.
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| (9) The Public Treasurers' Investment Pool created | 2 |
| under Section 17 of
the State Treasurer Act or in a fund | 3 |
| managed, operated, and administered by
a bank.
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| (10) Repurchase agreements of government securities | 5 |
| having the meaning
set out in the Government Securities Act | 6 |
| of 1986 subject to the provisions
of that Act and the | 7 |
| regulations issued thereunder.
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| (11) Investments made in accordance with the | 9 |
| Technology Development
Act.
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| For purposes of this Section, "agencies" of the United | 11 |
| States
Government includes:
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| (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;
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| (ii) the federal home loan banks and the federal home | 18 |
| loan
mortgage corporation;
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| (iii) the Commodity Credit Corporation; and
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| (iv) any other agency created by Act of Congress.
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| The Treasurer may, with the approval of the Governor, lend | 22 |
| any securities
acquired under this Act. However, securities may | 23 |
| be lent under this Section
only in accordance with Federal | 24 |
| Financial Institution Examination Council
guidelines and only | 25 |
| if the securities are collateralized at a level sufficient
to | 26 |
| assure the safety of the securities, taking into account market |
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| value
fluctuation. The securities may be collateralized by cash | 2 |
| or collateral
acceptable under Sections 11 and 11.1.
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| (Source: P.A. 94-79, eff. 1-27-06; for force and effect of | 4 |
| certain provisions, see Section 90 of P.A. 94-79 .)
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| Section 10. The State Treasurer Act is amended by changing | 6 |
| Section 16.5 as follows:
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| (15 ILCS 505/16.5)
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| Sec. 16.5. College Savings Pool. The State Treasurer may | 9 |
| establish and
administer a College Savings Pool to supplement | 10 |
| and enhance the investment
opportunities otherwise available | 11 |
| to persons seeking to finance the costs of
higher education. | 12 |
| The State Treasurer, in administering the College Savings
Pool, | 13 |
| may receive moneys paid into the pool by a participant and may | 14 |
| serve as
the fiscal agent of that participant for the purpose | 15 |
| of holding and investing
those moneys.
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| "Participant", as used in this Section, means any person | 17 |
| who makes
investments in the pool. "Designated beneficiary", as | 18 |
| used in this Section,
means any person on whose behalf an | 19 |
| account is established in the College
Savings Pool by a | 20 |
| participant. Both in-state and out-of-state persons may be
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| participants and designated beneficiaries in the College | 22 |
| Savings Pool.
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| New accounts in the College Savings Pool shall be processed | 24 |
| through
participating financial institutions. "Participating |
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| financial institution",
as used in this Section, means any | 2 |
| financial institution insured by the Federal
Deposit Insurance | 3 |
| Corporation and lawfully doing business in the State of
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| Illinois and any credit union approved by the State Treasurer | 5 |
| and lawfully
doing business in the State of Illinois that | 6 |
| agrees to process new accounts in
the College Savings Pool. | 7 |
| Participating financial institutions may charge a
processing | 8 |
| fee to participants to open an account in the pool that shall | 9 |
| not
exceed $30 until the year 2001. Beginning in 2001 and every | 10 |
| year thereafter,
the maximum fee limit shall be adjusted by the | 11 |
| Treasurer based on the Consumer
Price Index for the North | 12 |
| Central Region as published by the United States
Department of | 13 |
| Labor, Bureau of Labor Statistics for the immediately preceding
| 14 |
| calendar year. Every contribution received by a financial | 15 |
| institution for
investment in the College Savings Pool shall be | 16 |
| transferred from the financial
institution to a location | 17 |
| selected by the State Treasurer within one business
day | 18 |
| following the day that the funds must be made available in | 19 |
| accordance with
federal law. All communications from the State | 20 |
| Treasurer to participants shall
reference the participating | 21 |
| financial institution at which the account was
processed.
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| The Treasurer may invest the moneys in the College Savings | 23 |
| Pool in the same
manner, in the same types of investments , and | 24 |
| subject to the same limitations
provided for the investment of | 25 |
| moneys by the Illinois State Board of
Investment. To enhance | 26 |
| the safety and liquidity of the College Savings Pool,
to ensure |
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| the diversification of the investment portfolio of the pool, | 2 |
| and in
an effort to keep investment dollars in the State of | 3 |
| Illinois, the State
Treasurer shall make a percentage of each | 4 |
| account available for investment in
participating financial | 5 |
| institutions doing business in the State. The State
Treasurer | 6 |
| shall deposit with the participating financial institution at | 7 |
| which
the account was processed the following percentage of | 8 |
| each account at a
prevailing rate offered by the institution, | 9 |
| provided that the deposit is
federally insured or fully | 10 |
| collateralized and the institution accepts the
deposit: 10% of | 11 |
| the total amount of each account for which the current age of
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| the beneficiary is less than 7 years of age, 20% of the total | 13 |
| amount of each
account for which the beneficiary is at least 7 | 14 |
| years of age and less than 12
years of age, and 50% of the total | 15 |
| amount of each account for which the current
age of the | 16 |
| beneficiary is at least 12 years of age. The State Treasurer | 17 |
| shall
adjust each account at least annually to ensure | 18 |
| compliance with this Section.
The Treasurer shall develop, | 19 |
| publish, and implement an investment policy
covering the | 20 |
| investment of the moneys in the College Savings Pool. The | 21 |
| policy
shall be published (i) at least once each year in at | 22 |
| least one newspaper of
general circulation in both Springfield | 23 |
| and Chicago and (ii) each year as part
of the audit of the | 24 |
| College Savings Pool by the Auditor General, which shall be
| 25 |
| distributed to all participants. The Treasurer shall notify all | 26 |
| participants
in writing, and the Treasurer shall publish in a |
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| newspaper of general
circulation in both Chicago and | 2 |
| Springfield, any changes to the previously
published | 3 |
| investment policy at least 30 calendar days before implementing | 4 |
| the
policy. Any investment policy adopted by the Treasurer | 5 |
| shall be reviewed and
updated if necessary within 90 days | 6 |
| following the date that the State Treasurer
takes office.
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| Participants shall be required to use moneys distributed | 8 |
| from the College
Savings Pool for qualified expenses at | 9 |
| eligible educational institutions.
"Qualified expenses", as | 10 |
| used in this Section, means the following: (i)
tuition, fees, | 11 |
| and the costs of books, supplies, and equipment required for
| 12 |
| enrollment or attendance at an eligible educational | 13 |
| institution and (ii)
certain room and board expenses incurred | 14 |
| while attending an eligible
educational institution at least | 15 |
| half-time. "Eligible educational
institutions", as used in | 16 |
| this Section, means public and private colleges,
junior | 17 |
| colleges, graduate schools, and certain vocational | 18 |
| institutions that are
described in Section 481 of the Higher | 19 |
| Education Act of 1965 (20 U.S.C. 1088)
and that are eligible to | 20 |
| participate in Department of Education student aid
programs. A | 21 |
| student shall be considered to be enrolled at
least half-time | 22 |
| if the student is enrolled for at least half the full-time
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| academic work load for the course of study the student is | 24 |
| pursuing as
determined under the standards of the institution | 25 |
| at which the student is
enrolled. Distributions made from the | 26 |
| pool for qualified expenses shall be
made directly to the |
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| eligible educational institution, directly to a vendor, or
in | 2 |
| the form of a check payable to both the beneficiary and the | 3 |
| institution or
vendor. Any moneys that are distributed in any | 4 |
| other manner or that are used
for expenses other than qualified | 5 |
| expenses at an eligible educational
institution shall be | 6 |
| subject to a penalty of 10% of the earnings unless the
| 7 |
| beneficiary dies, becomes disabled, or receives a scholarship | 8 |
| that equals or
exceeds the distribution. Penalties shall be | 9 |
| withheld at the time the
distribution is made.
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| The Treasurer shall limit the contributions that may be | 11 |
| made on behalf of a
designated beneficiary based on an | 12 |
| actuarial estimate of what is required to
pay tuition, fees, | 13 |
| and room and board for 5 undergraduate years at the highest
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| cost eligible educational institution. The contributions made | 15 |
| on behalf of a
beneficiary who is also a beneficiary under the | 16 |
| Illinois Prepaid Tuition
Program shall be further restricted to | 17 |
| ensure that the contributions in both
programs combined do not | 18 |
| exceed the limit established for the College Savings
Pool. The | 19 |
| Treasurer shall provide the Illinois Student Assistance | 20 |
| Commission
each year at a time designated by the Commission, an | 21 |
| electronic report of all
participant accounts in the | 22 |
| Treasurer's College Savings Pool, listing total
contributions | 23 |
| and disbursements from each individual account during the
| 24 |
| previous calendar year. As soon thereafter as is possible | 25 |
| following receipt of
the Treasurer's report, the Illinois | 26 |
| Student Assistance Commission shall, in
turn, provide the |
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| Treasurer with an electronic report listing those College
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| Savings Pool participants who also participate in the State's | 3 |
| prepaid tuition
program, administered by the Commission. The | 4 |
| Commission shall be responsible
for filing any combined tax | 5 |
| reports regarding State qualified savings programs
required by | 6 |
| the United States Internal Revenue Service. The Treasurer shall
| 7 |
| work with the Illinois Student Assistance Commission to | 8 |
| coordinate the
marketing of the College Savings Pool and the | 9 |
| Illinois Prepaid Tuition
Program when considered beneficial by | 10 |
| the Treasurer and the Director of the
Illinois Student | 11 |
| Assistance
Commission. The Treasurer's office shall not | 12 |
| publicize or otherwise market the
College Savings Pool or | 13 |
| accept any moneys into the College Savings Pool prior
to March | 14 |
| 1, 2000. The Treasurer shall provide a separate accounting for | 15 |
| each
designated beneficiary to each participant, the Illinois | 16 |
| Student Assistance
Commission, and the participating financial | 17 |
| institution at which the account
was processed. No interest in | 18 |
| the program may be pledged as security for a
loan.
| 19 |
| The assets of the College Savings Pool and its income and | 20 |
| operation shall
be exempt from all taxation by the State of | 21 |
| Illinois and any of its
subdivisions. The accrued earnings on | 22 |
| investments in the Pool once disbursed
on behalf of a | 23 |
| designated beneficiary shall be similarly exempt from all
| 24 |
| taxation by the State of Illinois and its subdivisions, so long | 25 |
| as they are
used for qualified expenses. Contributions to a | 26 |
| College Savings Pool account
during the taxable year may be |
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| deducted from adjusted gross income as provided
in Section 203 | 2 |
| of the Illinois Income Tax Act. The provisions of this
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| paragraph are exempt from Section 250 of the Illinois Income | 4 |
| Tax Act.
| 5 |
| The Treasurer shall adopt rules he or she considers | 6 |
| necessary for the
efficient administration of the College | 7 |
| Savings Pool. The rules shall provide
whatever additional | 8 |
| parameters and restrictions are necessary to ensure that
the | 9 |
| College Savings Pool meets all of the requirements for a | 10 |
| qualified state
tuition program under Section 529 of the | 11 |
| Internal Revenue Code (26 U.S.C. 529).
The rules shall provide | 12 |
| for the administration expenses of the pool to be paid
from its | 13 |
| earnings and for the investment earnings in excess of the | 14 |
| expenses and
all moneys collected as penalties to be credited | 15 |
| or paid monthly to the several
participants in the pool in a | 16 |
| manner which equitably reflects the differing
amounts of their | 17 |
| respective investments in the pool and the differing periods
of | 18 |
| time for which those amounts were in the custody of the pool. | 19 |
| Also, the
rules shall require the maintenance of records that | 20 |
| enable the Treasurer's
office to produce a report for each | 21 |
| account in the pool at least annually that
documents the | 22 |
| account balance and investment earnings. Notice of any proposed
| 23 |
| amendments to the rules and regulations shall be provided to | 24 |
| all participants
prior to adoption. Amendments to rules and | 25 |
| regulations shall apply only to
contributions made after the | 26 |
| adoption of the amendment.
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| Upon creating the College Savings Pool, the State Treasurer | 2 |
| shall give bond
with 2 or more sufficient sureties, payable to | 3 |
| and for the benefit of the
participants in the College Savings | 4 |
| Pool, in the penal sum of $1,000,000,
conditioned upon the | 5 |
| faithful discharge of his or her duties in relation to
the | 6 |
| College Savings Pool.
| 7 |
| (Source: P.A. 92-16, eff. 6-28-01; 92-439, eff. 8-17-01; | 8 |
| 92-626, eff. 7-11-02; 93-812, eff. 1-1-05.)
| 9 |
| Section 15. The Illinois Pension Code is amended by adding | 10 |
| Section 1-110.6 and changing Section 22-401 as follows: | 11 |
| (40 ILCS 5/1-110.6 new)
| 12 |
| Sec. 1-110.6. Transactions prohibited by retirement | 13 |
| systems, local pension funds, or large Article 3 or 4 pension | 14 |
| funds; Sudan. | 15 |
| (a) For purposes of this Section: | 16 |
| "Company" is any entity capable of affecting commerce, | 17 |
| including but not limited to (i) a government, government | 18 |
| agency, natural person, legal person, sole proprietorship, | 19 |
| partnership, firm, corporation, subsidiary, affiliate, | 20 |
| franchisor, franchisee, joint venture, trade association, | 21 |
| financial institution, utility, public franchise, provider of | 22 |
| financial services, trust, or enterprise; and (ii) any | 23 |
| association thereof. | 24 |
| "Forbidden entity" means any of the following: |
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| (1) The government of the Republic of the Sudan and any | 2 |
| of its agencies, including but not limited to political | 3 |
| units and subdivisions;
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| (2) Any company that is wholly or partially managed or | 5 |
| controlled by the government of the Republic of the Sudan | 6 |
| and any of its agencies, including but not limited to | 7 |
| political units and subdivisions; | 8 |
| (3) Any company (i) that is established or organized | 9 |
| under the laws of the Republic of the Sudan or (ii) whose | 10 |
| principal place of business is in the Republic of the | 11 |
| Sudan; | 12 |
| (4) Any company (i) identified by the Office of Foreign | 13 |
| Assets Control in the United States Department of the | 14 |
| Treasury as sponsoring terrorist activities; or (ii) | 15 |
| fined, penalized, or sanctioned by the Office of Foreign | 16 |
| Assets Control in the United States Department of the | 17 |
| Treasury for any violation of any United States rules and | 18 |
| restrictions relating to the Republic of the Sudan that | 19 |
| occurred at any time following the effective date of this | 20 |
| Act; | 21 |
| (5) Any publicly traded company
identified by an | 22 |
| independent researching firm that specializes in global | 23 |
| security risk and that has been retained by a certifying | 24 |
| company as provided in subsection (b) of this Section as | 25 |
| being a company that owns or controls property or assets | 26 |
| located in, has employees or facilities located in, |
|
|
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LRB095 10981 AMC 34559 a |
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| provides goods or services to, obtain goods or services | 2 |
| from, has distribution agreements with, issue credits or | 3 |
| loans to, purchase bonds or commercial paper issued by, or | 4 |
| invests in (A)
the Republic of the Sudan; or (B)
any | 5 |
| company domiciled in the Republic of the Sudan; and | 6 |
| (6) Any private market fund that: | 7 |
| (i) with respect to a commitment or investment made | 8 |
| pursuant to a written agreement executed prior to the | 9 |
| effective date of this Section, and at no additional | 10 |
| cost to the retirement system, local pension fund, or | 11 |
| large Article 3 or 4 pension fund, fails to submit to | 12 |
| the appropriate certifying company or the retirement | 13 |
| system, local pension fund, or large Article 3 or 4 | 14 |
| pension fund, as the case may be: | 15 |
| (A) an affidavit sworn under oath in which an | 16 |
| expressly authorized officer of the private market | 17 |
| fund avers that the private market fund (I) does | 18 |
| not own or control any property or asset located in | 19 |
| the Republic of the Sudan and (II) did not transact | 20 |
| commercial business in the Republic of the Sudan; | 21 |
| or | 22 |
| (B) a certificate in which an expressly | 23 |
| authorized officer of the private market fund | 24 |
| certifies that the private market fund, based on | 25 |
| reasonable due diligence, has determined that, | 26 |
| other than direct or indirect investments in |
|
|
|
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| companies certified as Non-Government | 2 |
| Organizations by the United Nations, the private | 3 |
| market fund has no direct or indirect investment in | 4 |
| any company (I) organized under the laws of the | 5 |
| Republic of Sudan; (II) whose principal place of | 6 |
| business is in the Republic of Sudan; (III) that | 7 |
| conducts operations in the Republic of Sudan; or | 8 |
| (IV) that owns any interest in real estate in the | 9 |
| Republic of Sudan, provided that the private | 10 |
| market fund further agrees that the retirement | 11 |
| system, local pension fund, or large Article 3 or 4 | 12 |
| pension fund, directly or through an agent, may | 13 |
| from time to time review the certifying company's | 14 |
| certification process based on the periodic | 15 |
| reports received by the certifying company; and | 16 |
| (ii) with respect to a commitment or investment | 17 |
| made pursuant to a written agreement executed after the | 18 |
| effective date of this Section, and at no additional | 19 |
| cost to the retirement system, local pension fund, or | 20 |
| large Article 3 or 4 pension fund, fails to (A) submit | 21 |
| the affidavit or certificate required in (i); or (B) | 22 |
| agree in an enforceable written agreement that | 23 |
| provides for effective and appropriate remedies that | 24 |
| none of the assets of the retirement system, local | 25 |
| pension fund, or large Article 3 or 4 pension fund | 26 |
| shall be transferred, loaned, or otherwise invested in |
|
|
|
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| any company that directly or indirectly (i) has | 2 |
| facilities or employees in the Republic of Sudan; (ii) | 3 |
| owns any interest in real estate in the Republic of | 4 |
| Sudan; or (iii) conducts commercial business in the | 5 |
| Republic of Sudan or with companies located in the | 6 |
| Republic of Sudan. | 7 |
| Notwithstanding the foregoing, the term "forbidden entity" | 8 |
| shall exclude companies that transact business in Sudan under | 9 |
| the law, license, or permit of the United States, including a | 10 |
| license from the United States Department of the Treasury, and
| 11 |
| companies, except agencies of the Republic of the Sudan, who | 12 |
| are certified as Non-Government Organizations by the United | 13 |
| Nations, or who engage solely in (i) the provision of goods and | 14 |
| services intended to relieve human suffering or to promote | 15 |
| welfare, health, religious and spiritual activities, and | 16 |
| education or humanitarian purposes; or (ii) journalistic | 17 |
| activities. | 18 |
| "Large Article 3 or 4 pension fund" means a pension fund | 19 |
| that
(1) is established under Article 3 or Article 4 of this | 20 |
| Code; (2) receives direct contributions of tax dollars from a | 21 |
| unit of local government; and (3) may, under this Code, | 22 |
| directly invest in corporate stocks. | 23 |
| "Local pension fund" means a pension fund or retirement | 24 |
| system established under this Code that (1) is not established | 25 |
| under Article 3 or 4 of this Code; and (2) receives direct | 26 |
| contributions of tax dollars from a unit of local government, a |
|
|
|
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| political subdivision of the State, or any other body politic | 2 |
| and corporate that is not the State of Illinois or unit | 3 |
| thereof.
| 4 |
| "Private market fund" means any private equity fund, | 5 |
| private equity fund of funds, venture capital fund, hedge fund, | 6 |
| hedge fund of funds, real estate fund, or other investment | 7 |
| vehicle that is not publicly traded.
| 8 |
| "Retirement system" means a retirement system or pension | 9 |
| fund established under this Code that receives contributions of | 10 |
| tax dollars from the State of Illinois or any unit or agency | 11 |
| thereof.
| 12 |
| (b) A retirement system, local pension fund, or large | 13 |
| Article 3 or 4 pension fund established under this Code shall | 14 |
| not transfer or disburse funds to, deposit into, acquire any | 15 |
| bonds or commercial paper from, or otherwise loan to or invest | 16 |
| in any entity unless, as provided in this Section, a certifying | 17 |
| company
certifies to the retirement system, local pension fund, | 18 |
| or large Article 3 or 4 pension fund
that, (1) with respect to | 19 |
| investments in a publicly traded company, the certifying | 20 |
| company has relied on information provided by an independent | 21 |
| researching firm that specializes in global security risk and | 22 |
| (2) 100% of the retirement system's, local pension fund's, or | 23 |
| large Article 3 or 4 pension fund's assets for which the | 24 |
| certifying company provides services or advice are not and have | 25 |
| not been invested or reinvested in any forbidden entity at any | 26 |
| time after 4 months after the effective date. |
|
|
|
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LRB095 10981 AMC 34559 a |
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| 1 |
| The certifying company shall make the certification | 2 |
| required under this subsection (b) to a large Article 3 or 4 | 3 |
| pension fund 6 months after the effective date of this Section | 4 |
| and every 6 months thereafter, and to any other retirement | 5 |
| systems or local pension fund 6 months after the effective date | 6 |
| of this Section and annually thereafter. A large Article 3 or 4 | 7 |
| pension fund shall submit the certifications to the Public | 8 |
| Pension Division of the Department of Financial and | 9 |
| Professional Regulation, and the Public Pension Division shall | 10 |
| notify the Secretary of Financial and Professional Regulation | 11 |
| if a pension fund fails to do so. | 12 |
| (c) In addition to any other penalties and remedies | 13 |
| available under the law of Illinois and the United States, any | 14 |
| transaction that violates the provisions of this Act shall be | 15 |
| against public policy and void or voidable, at the sole | 16 |
| discretion of the retirement system, local pension fund, or | 17 |
| large Article 3 or 4 pension fund.
| 18 |
| (d) If a private market fund fails to provide the affidavit | 19 |
| or certification required in item (6) of the definition of | 20 |
| "forbidden entity" in subsection (a) of this Section: | 21 |
| (1) the retirement system, local pension fund, large | 22 |
| Article 3 or 4 pension fund, or certifying company, as the | 23 |
| case may be, shall, within 90 days, divest or attempt in | 24 |
| good faith to divest the retirement system's, local pension | 25 |
| fund's, or large Article 3 or 4 pension fund's interest in | 26 |
| the private market fund, provided that the Board of the |
|
|
|
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| 1 |
| retirement system, pension fund, or large Article 3 or 4 | 2 |
| pension fund confirms, through resolution, that the | 3 |
| divestment does not have a material and adverse impact on | 4 |
| the retirement system or pension fund; and | 5 |
| (2) the retirement system, local pension fund, or large | 6 |
| Article 3 or 4 pension fund shall immediately notify the | 7 |
| State Board of Investment, who shall, in turn, immediately | 8 |
| notify all retirement systems, local pension funds, and | 9 |
| large Article 3 or 4 pension funds established under this | 10 |
| Code, whereupon said retirement systems, local pension | 11 |
| funds, and large Article 3 or 4 pension funds shall not | 12 |
| enter into any agreement under which the retirement system, | 13 |
| local pension fund, or large Article 3 or 4 pension fund | 14 |
| directly or indirectly invests in that private market fund. | 15 |
| (e) If a private market fund fails to fulfill the agreement | 16 |
| provided for in paragraph (ii) of item (6) of subsection (a), | 17 |
| the retirement system, local pension fund, or large Article 3 | 18 |
| or 4 pension fund shall immediately take legal and other action | 19 |
| to obtain satisfaction through all remedies and penalties | 20 |
| available under the law and the agreement itself, and shall | 21 |
| immediately notify the State Board of Investment. The State | 22 |
| Board of Investment shall, in turn, immediately notify all | 23 |
| retirement systems, local pension funds, and large Article 3 or | 24 |
| 4 pension funds, whereupon said retirement systems, local | 25 |
| pension funds, and large Article 3 or 4 pension funds shall not | 26 |
| enter into any agreement under which the retirement system, |
|
|
|
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LRB095 10981 AMC 34559 a |
|
| 1 |
| local pension fund, or large Article 3 or 4 pension fund | 2 |
| directly or indirectly invests in that private market fund.
| 3 |
| (f) The changes made to this Section by this amendatory Act | 4 |
| of the 95th General Assembly shall have full force and effect | 5 |
| during any period in which the Government of Sudan, or the | 6 |
| officials of that government, are subject to sanctions | 7 |
| authorized under any statute or executive order of the United | 8 |
| States or until such time as the State Department of the United | 9 |
| States confirms in the federal register or through other means | 10 |
| that Sudan is no longer subject to sanctions by the government | 11 |
| of the United States. | 12 |
| (g) If any provision of this Section or its application to | 13 |
| any person, body politic and corporate, or circumstance is held | 14 |
| invalid, the invalidity of that provision or application does | 15 |
| not affect other provisions or applications of this Section | 16 |
| that can be given effect without the invalid provision or | 17 |
| application.
| 18 |
| (40 ILCS 5/22-401) (from Ch. 108 1/2, par. 22-401)
| 19 |
| Sec. 22-401. Pension fund - body politic and corporate. Any | 20 |
| annuity and benefit fund, annuity and retirement fund or | 21 |
| retirement
system, heretofore or hereafter created by the | 22 |
| legislature of the State of
Illinois or pursuant to law for the | 23 |
| benefit of employees of the State or of any county, city,
town, | 24 |
| municipal corporation or body politic and corporate, located in | 25 |
| the
State of Illinois and functioning pursuant to legislative |
|
|
|
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LRB095 10981 AMC 34559 a |
|
| 1 |
| enactment, to
which the State or any such county, city, town, | 2 |
| municipal corporation or
body politic and corporate is required | 3 |
| to contribute by way of tax levies,
appropriations from the | 4 |
| corporate fund, or otherwise, and by whatever name
such annuity | 5 |
| and benefit fund, annuity and retirement fund or retirement
| 6 |
| system may be called, is hereby declared to be a pension fund | 7 |
| and to be a
creature of the State and body politic and | 8 |
| corporate under the title specified in the law creating
such | 9 |
| fund, limited to the performance of the duties set out in the | 10 |
| law
creating such fund. The trustees of each fund are hereby | 11 |
| declared to be the
officials of such body politic and | 12 |
| corporate, vested with the powers and
duties set out in said | 13 |
| law.
| 14 |
| (b) This Section applies to all pending actions and all | 15 |
| actions commenced on or after the effective date of this | 16 |
| amendatory Act of the 95th General Assembly. | 17 |
| (c) If any provision of this Section or its application to | 18 |
| any person or circumstance is held invalid, the invalidity of | 19 |
| that provision or application does not affect other provisions | 20 |
| or applications of this Section that can be given effect | 21 |
| without the invalid provision or application.
| 22 |
| (Source: Laws 1963, p. 161.)
| 23 |
| (15 ILCS 520/22.6 rep.) | 24 |
| Section 90. The Deposit of State Moneys Act is amended by | 25 |
| repealing Section 22.6. |
|
|
|
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LRB095 10981 AMC 34559 a |
|
| 1 |
| (40 ILCS 5/1-110.5 rep.) | 2 |
| Section 95. The Illinois Pension Code is amended by | 3 |
| repealing Section 1-110.5. | 4 |
| Section 97. Severability. The provisions of this Act are | 5 |
| severable under Section 1.31 of the Statute on Statutes.
| 6 |
| Section 99. Effective date. This Act takes effect upon | 7 |
| becoming law.".
|
|