Illinois General Assembly - Full Text of Public Act 095-0521
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Public Act 095-0521


 

Public Act 0521 95TH GENERAL ASSEMBLY



 


 
Public Act 095-0521
 
SB1169 Enrolled LRB095 10981 AMC 31287 b

    AN ACT concerning finance.
 
    WHEREAS, This amendatory Act of the 95th General Assembly
may also be cited as an Act to disassociate from genocide and
terrorism in Sudan; therefore
 
    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
reenacting and changing Section 22.5 as follows:
 
    (15 ILCS 520/22.5)  (from Ch. 130, par. 41a)
    (For force and effect of certain provisions, see Section 90
of P.A. 94-79)
    Sec. 22.5. Permitted investments. The State Treasurer may,
with the approval of the Governor, invest and reinvest any
State money in the treasury which is not needed for current
expenditures due or about to become due, in obligations of the
United States government or its agencies or of National
Mortgage Associations established by or under the National
Housing Act, 1201 U.S.C. 1701 et seq., or in mortgage
participation certificates representing undivided interests in
specified, first-lien conventional residential Illinois
mortgages that are underwritten, insured, guaranteed, or
purchased by the Federal Home Loan Mortgage Corporation or in
Affordable Housing Program Trust Fund Bonds or Notes as defined
in and issued pursuant to the Illinois Housing Development Act.
All such obligations shall be considered as cash and may be
delivered over as cash by a State Treasurer to his successor.
    The State Treasurer may, with the approval of the Governor,
purchase any state bonds with any money in the State Treasury
that has been set aside and held for the payment of the
principal of and interest on the bonds. The bonds shall be
considered as cash and may be delivered over as cash by the
State Treasurer to his successor.
    The State Treasurer may, with the approval of the Governor,
invest or reinvest any State money in the treasury that is not
needed for current expenditure due or about to become due, or
any money in the State Treasury that has been set aside and
held for the payment of the principal of and the interest on
any State bonds, in shares, withdrawable accounts, and
investment certificates of savings and building and loan
associations, incorporated under the laws of this State or any
other state or under the laws of the United States; provided,
however, that investments may be made only in those savings and
loan or building and loan associations the shares and
withdrawable accounts or other forms of investment securities
of which are insured by the Federal Deposit Insurance
Corporation.
    The State Treasurer may not invest State money in any
savings and loan or building and loan association unless a
commitment by the savings and loan (or building and loan)
association, executed by the president or chief executive
officer of that association, is submitted in the following
form:
        The .................. Savings and Loan (or Building
    and Loan) Association pledges not to reject arbitrarily
    mortgage loans for residential properties within any
    specific part of the community served by the savings and
    loan (or building and loan) association because of the
    location of the property. The savings and loan (or building
    and loan) association also pledges to make loans available
    on low and moderate income residential property throughout
    the community within the limits of its legal restrictions
    and prudent financial practices.
    The State Treasurer may, with the approval of the Governor,
invest or reinvest, at a price not to exceed par, any State
money in the treasury that is not needed for current
expenditures due or about to become due, or any money in the
State Treasury that has been set aside and held for the payment
of the principal of and interest on any State bonds, in bonds
issued by counties or municipal corporations of the State of
Illinois.
    The State Treasurer may, with the approval of the Governor,
invest or reinvest any State money in the Treasury which is not
needed for current expenditure, due or about to become due, or
any money in the State Treasury which has been set aside and
held for the payment of the principal of and the interest on
any State bonds, in participations in loans, the principal of
which participation is fully guaranteed by an agency or
instrumentality of the United States government; provided,
however, that such loan participations are represented by
certificates issued only by banks which are incorporated under
the laws of this State or any other state or under the laws of
the United States, and such banks, but not the loan
participation certificates, are insured by the Federal Deposit
Insurance Corporation.
    The State Treasurer may, with the approval of the Governor,
invest or reinvest any State money in the Treasury that is not
needed for current expenditure, due or about to become due, or
any money in the State Treasury that has been set aside and
held for the payment of the principal of and the interest on
any State bonds, in any of the following:
        (1) Bonds, notes, certificates of indebtedness,
    Treasury bills, or other securities now or hereafter issued
    that are guaranteed by the full faith and credit of the
    United States of America as to principal and interest.
        (2) Bonds, notes, debentures, or other similar
    obligations of the United States of America, its agencies,
    and instrumentalities.
        (2.5) Bonds, notes, debentures, or other similar
    obligations of a foreign government, other than the
    Republic of the Sudan, that are guaranteed by the full
    faith and credit of that government as to principal and
    interest, but only if the foreign government has not
    defaulted and has met its payment obligations in a timely
    manner on all similar obligations for a period of at least
    25 years immediately before the time of acquiring those
    obligations.
        (3) Interest-bearing savings accounts,
    interest-bearing certificates of deposit, interest-bearing
    time deposits, or any other investments constituting
    direct obligations of any bank as defined by the Illinois
    Banking Act.
        (4) Interest-bearing accounts, certificates of
    deposit, or any other investments constituting direct
    obligations of any savings and loan associations
    incorporated under the laws of this State or any other
    state or under the laws of the United States.
        (5) Dividend-bearing share accounts, share certificate
    accounts, or class of share accounts of a credit union
    chartered under the laws of this State or the laws of the
    United States; provided, however, the principal office of
    the credit union must be located within the State of
    Illinois.
        (6) Bankers' acceptances of banks whose senior
    obligations are rated in the top 2 rating categories by 2
    national rating agencies and maintain that rating during
    the term of the investment.
        (7) Short-term obligations of corporations organized
    in the United States with assets exceeding $500,000,000 if
    (i) the obligations are rated at the time of purchase at
    one of the 3 highest classifications established by at
    least 2 standard rating services and mature not later than
    180 days from the date of purchase, (ii) the purchases do
    not exceed 10% of the corporation's outstanding
    obligations, (iii) no more than one-third of the public
    agency's funds are invested in short-term obligations of
    corporations, and (iv) the corporation has not been
    identified as a forbidden entity, as that term is defined
    in Section 1-110.6 of the Illinois Pension Code, by an
    independent researching firm that specializes in global
    security risk that has been engaged by the State Treasurer
    is not a forbidden entity, as defined in Section 22.6 of
    the Deposit of State Moneys Act.
        (8) Money market mutual funds registered under the
    Investment Company Act of 1940, provided that the portfolio
    of the money market mutual fund is limited to obligations
    described in this Section and to agreements to repurchase
    such obligations.
        (9) The Public Treasurers' Investment Pool created
    under Section 17 of the State Treasurer Act or in a fund
    managed, operated, and administered by a bank.
        (10) Repurchase agreements of government securities
    having the meaning set out in the Government Securities Act
    of 1986 subject to the provisions of that Act and the
    regulations issued thereunder.
        (11) Investments made in accordance with the
    Technology Development Act.
    For purposes of this Section, "agencies" of the United
States Government includes:
        (i) the federal land banks, federal intermediate
    credit banks, banks for cooperatives, federal farm credit
    banks, or any other entity authorized to issue debt
    obligations under the Farm Credit Act of 1971 (12 U.S.C.
    2001 et seq.) and Acts amendatory thereto;
        (ii) the federal home loan banks and the federal home
    loan mortgage corporation;
        (iii) the Commodity Credit Corporation; and
        (iv) any other agency created by Act of Congress.
    The Treasurer may, with the approval of the Governor, lend
any securities acquired under this Act. However, securities may
be lent under this Section only in accordance with Federal
Financial Institution Examination Council guidelines and only
if the securities are collateralized at a level sufficient to
assure the safety of the securities, taking into account market
value fluctuation. The securities may be collateralized by cash
or collateral acceptable under Sections 11 and 11.1.
(Source: P.A. 94-79, eff. 1-27-06; for force and effect of
certain provisions, see Section 90 of P.A. 94-79.)
 
    Section 10. The State Treasurer Act is amended by changing
Section 16.5 as follows:
 
    (15 ILCS 505/16.5)
    Sec. 16.5. College Savings Pool. The State Treasurer may
establish and administer a College Savings Pool to supplement
and enhance the investment opportunities otherwise available
to persons seeking to finance the costs of higher education.
The State Treasurer, in administering the College Savings Pool,
may receive moneys paid into the pool by a participant and may
serve as the fiscal agent of that participant for the purpose
of holding and investing those moneys.
    "Participant", as used in this Section, means any person
who makes investments in the pool. "Designated beneficiary", as
used in this Section, means any person on whose behalf an
account is established in the College Savings Pool by a
participant. Both in-state and out-of-state persons may be
participants and designated beneficiaries in the College
Savings Pool.
    New accounts in the College Savings Pool shall be processed
through participating financial institutions. "Participating
financial institution", as used in this Section, means any
financial institution insured by the Federal Deposit Insurance
Corporation and lawfully doing business in the State of
Illinois and any credit union approved by the State Treasurer
and lawfully doing business in the State of Illinois that
agrees to process new accounts in the College Savings Pool.
Participating financial institutions may charge a processing
fee to participants to open an account in the pool that shall
not exceed $30 until the year 2001. Beginning in 2001 and every
year thereafter, the maximum fee limit shall be adjusted by the
Treasurer based on the Consumer Price Index for the North
Central Region as published by the United States Department of
Labor, Bureau of Labor Statistics for the immediately preceding
calendar year. Every contribution received by a financial
institution for investment in the College Savings Pool shall be
transferred from the financial institution to a location
selected by the State Treasurer within one business day
following the day that the funds must be made available in
accordance with federal law. All communications from the State
Treasurer to participants shall reference the participating
financial institution at which the account was processed.
    The Treasurer may invest the moneys in the College Savings
Pool in the same manner, in the same types of investments, and
subject to the same limitations provided for the investment of
moneys by the Illinois State Board of Investment. To enhance
the safety and liquidity of the College Savings Pool, to ensure
the diversification of the investment portfolio of the pool,
and in an effort to keep investment dollars in the State of
Illinois, the State Treasurer shall make a percentage of each
account available for investment in participating financial
institutions doing business in the State. The State Treasurer
shall deposit with the participating financial institution at
which the account was processed the following percentage of
each account at a prevailing rate offered by the institution,
provided that the deposit is federally insured or fully
collateralized and the institution accepts the deposit: 10% of
the total amount of each account for which the current age of
the beneficiary is less than 7 years of age, 20% of the total
amount of each account for which the beneficiary is at least 7
years of age and less than 12 years of age, and 50% of the total
amount of each account for which the current age of the
beneficiary is at least 12 years of age. The State Treasurer
shall adjust each account at least annually to ensure
compliance with this Section. The Treasurer shall develop,
publish, and implement an investment policy covering the
investment of the moneys in the College Savings Pool. The
policy shall be published (i) at least once each year in at
least one newspaper of general circulation in both Springfield
and Chicago and (ii) each year as part of the audit of the
College Savings Pool by the Auditor General, which shall be
distributed to all participants. The Treasurer shall notify all
participants in writing, and the Treasurer shall publish in a
newspaper of general circulation in both Chicago and
Springfield, any changes to the previously published
investment policy at least 30 calendar days before implementing
the policy. Any investment policy adopted by the Treasurer
shall be reviewed and updated if necessary within 90 days
following the date that the State Treasurer takes office.
    Participants shall be required to use moneys distributed
from the College Savings Pool for qualified expenses at
eligible educational institutions. "Qualified expenses", as
used in this Section, means the following: (i) tuition, fees,
and the costs of books, supplies, and equipment required for
enrollment or attendance at an eligible educational
institution and (ii) certain room and board expenses incurred
while attending an eligible educational institution at least
half-time. "Eligible educational institutions", as used in
this Section, means public and private colleges, junior
colleges, graduate schools, and certain vocational
institutions that are described in Section 481 of the Higher
Education Act of 1965 (20 U.S.C. 1088) and that are eligible to
participate in Department of Education student aid programs. A
student shall be considered to be enrolled at least half-time
if the student is enrolled for at least half the full-time
academic work load for the course of study the student is
pursuing as determined under the standards of the institution
at which the student is enrolled. Distributions made from the
pool for qualified expenses shall be made directly to the
eligible educational institution, directly to a vendor, or in
the form of a check payable to both the beneficiary and the
institution or vendor. Any moneys that are distributed in any
other manner or that are used for expenses other than qualified
expenses at an eligible educational institution shall be
subject to a penalty of 10% of the earnings unless the
beneficiary dies, becomes disabled, or receives a scholarship
that equals or exceeds the distribution. Penalties shall be
withheld at the time the distribution is made.
    The Treasurer shall limit the contributions that may be
made on behalf of a designated beneficiary based on an
actuarial estimate of what is required to pay tuition, fees,
and room and board for 5 undergraduate years at the highest
cost eligible educational institution. The contributions made
on behalf of a beneficiary who is also a beneficiary under the
Illinois Prepaid Tuition Program shall be further restricted to
ensure that the contributions in both programs combined do not
exceed the limit established for the College Savings Pool. The
Treasurer shall provide the Illinois Student Assistance
Commission each year at a time designated by the Commission, an
electronic report of all participant accounts in the
Treasurer's College Savings Pool, listing total contributions
and disbursements from each individual account during the
previous calendar year. As soon thereafter as is possible
following receipt of the Treasurer's report, the Illinois
Student Assistance Commission shall, in turn, provide the
Treasurer with an electronic report listing those College
Savings Pool participants who also participate in the State's
prepaid tuition program, administered by the Commission. The
Commission shall be responsible for filing any combined tax
reports regarding State qualified savings programs required by
the United States Internal Revenue Service. The Treasurer shall
work with the Illinois Student Assistance Commission to
coordinate the marketing of the College Savings Pool and the
Illinois Prepaid Tuition Program when considered beneficial by
the Treasurer and the Director of the Illinois Student
Assistance Commission. The Treasurer's office shall not
publicize or otherwise market the College Savings Pool or
accept any moneys into the College Savings Pool prior to March
1, 2000. The Treasurer shall provide a separate accounting for
each designated beneficiary to each participant, the Illinois
Student Assistance Commission, and the participating financial
institution at which the account was processed. No interest in
the program may be pledged as security for a loan.
    The assets of the College Savings Pool and its income and
operation shall be exempt from all taxation by the State of
Illinois and any of its subdivisions. The accrued earnings on
investments in the Pool once disbursed on behalf of a
designated beneficiary shall be similarly exempt from all
taxation by the State of Illinois and its subdivisions, so long
as they are used for qualified expenses. Contributions to a
College Savings Pool account during the taxable year may be
deducted from adjusted gross income as provided in Section 203
of the Illinois Income Tax Act. The provisions of this
paragraph are exempt from Section 250 of the Illinois Income
Tax Act.
    The Treasurer shall adopt rules he or she considers
necessary for the efficient administration of the College
Savings Pool. The rules shall provide whatever additional
parameters and restrictions are necessary to ensure that the
College Savings Pool meets all of the requirements for a
qualified state tuition program under Section 529 of the
Internal Revenue Code (26 U.S.C. 529). The rules shall provide
for the administration expenses of the pool to be paid from its
earnings and for the investment earnings in excess of the
expenses and all moneys collected as penalties to be credited
or paid monthly to the several participants in the pool in a
manner which equitably reflects the differing amounts of their
respective investments in the pool and the differing periods of
time for which those amounts were in the custody of the pool.
Also, the rules shall require the maintenance of records that
enable the Treasurer's office to produce a report for each
account in the pool at least annually that documents the
account balance and investment earnings. Notice of any proposed
amendments to the rules and regulations shall be provided to
all participants prior to adoption. Amendments to rules and
regulations shall apply only to contributions made after the
adoption of the amendment.
    Upon creating the College Savings Pool, the State Treasurer
shall give bond with 2 or more sufficient sureties, payable to
and for the benefit of the participants in the College Savings
Pool, in the penal sum of $1,000,000, conditioned upon the
faithful discharge of his or her duties in relation to the
College Savings Pool.
(Source: P.A. 92-16, eff. 6-28-01; 92-439, eff. 8-17-01;
92-626, eff. 7-11-02; 93-812, eff. 1-1-05.)
 
    Section 15. The Illinois Pension Code is amended by adding
Sections 1-110.6 and 1-110.10 as follows:
 
    (40 ILCS 5/1-110.6 new)
    Sec. 1-110.6. Transactions prohibited by retirement
systems; Republic of the Sudan.
    (a) The Government of the United States has determined that
Sudan is a nation that sponsors terrorism and genocide. The
General Assembly finds that acts of terrorism have caused
injury and death to Illinois and United States residents who
serve in the United States military, and pose a significant
threat to safety and health in Illinois. The General Assembly
finds that public employees and their families, including
police officers and firefighters, are more likely than others
to be affected by acts of terrorism. The General Assembly finds
that Sudan continues to solicit investment and commercial
activities by forbidden entities, including private market
funds. The General Assembly finds that investments in forbidden
entities are inherently and unduly risky, not in the interests
of public pensioners and Illinois taxpayers, and against public
policy. The General Assembly finds that Sudan's capacity to
sponsor terrorism and genocide depends on or is supported by
the activities of forbidden entities. The General Assembly
further finds and re-affirms that the people of the State,
acting through their representatives, do not want to be
associated with forbidden entities, genocide, and terrorism.
    (b) For purposes of this Section:
    "Business operations" means maintaining, selling, or
leasing equipment, facilities, personnel, or any other
apparatus of business or commerce in the Republic of the Sudan,
including the ownership or possession of real or personal
property located in the Republic of the Sudan.
    "Certifying company" means a company that (1) directly
provides asset management services or advice to a retirement
system or (2) as directly authorized or requested by a
retirement system (A) identifies particular investment options
for consideration or approval; (B) chooses particular
investment options; or (C) allocates particular amounts to be
invested. If no company meets the criteria set forth in this
paragraph, then "certifying company" shall mean the retirement
system officer who, as designated by the board, executes the
investment decisions made by the board, or, in the alternative,
the company that the board authorizes to complete the
certification as the agent of that officer.
    "Company" is any entity capable of affecting commerce,
including but not limited to (i) a government, government
agency, natural person, legal person, sole proprietorship,
partnership, firm, corporation, subsidiary, affiliate,
franchisor, franchisee, joint venture, trade association,
financial institution, utility, public franchise, provider of
financial services, trust, or enterprise; and (ii) any
association thereof.
    "Department" means the Public Pension Division of the
Department of Financial and Professional Regulation.
    "Forbidden entity" means any of the following:
        (1) The government of the Republic of the Sudan and any
    of its agencies, including but not limited to political
    units and subdivisions;
        (2) Any company that is wholly or partially managed or
    controlled by the government of the Republic of the Sudan
    and any of its agencies, including but not limited to
    political units and subdivisions;
        (3) Any company (i) that is established or organized
    under the laws of the Republic of the Sudan or (ii) whose
    principal place of business is in the Republic of the
    Sudan;
        (4) Any company (i) identified by the Office of Foreign
    Assets Control in the United States Department of the
    Treasury as sponsoring terrorist activities in the
    Republic of the Sudan; or (ii) fined, penalized, or
    sanctioned by the Office of Foreign Assets Control in the
    United States Department of the Treasury for any violation
    of any United States rules and restrictions relating to the
    Republic of the Sudan that occurred at any time following
    the effective date of this Act;
        (5) Any publicly traded company that is individually
    identified by an independent researching firm that
    specializes in global security risk and that has been
    retained by a certifying company as provided in subsection
    (c) of this Section as being a company that owns or
    controls property or assets located in, has employees or
    facilities located in, provides goods or services to,
    obtains goods or services from, has distribution
    agreements with, issues credits or loans to, purchases
    bonds or commercial paper issued by, or invests in (A) the
    Republic of the Sudan; or (B) any company domiciled in the
    Republic of the Sudan; and
        (6) Any private market fund that fails to satisfy the
    requirements set forth in subsections (d) and (e) of this
    Section.
    Notwithstanding the foregoing, the term "forbidden entity"
shall exclude (A) mutual funds that meet the requirements of
item (iii) of paragraph (13) of Section 1-113.2 and (B)
companies that transact business in the Republic of the Sudan
under the law, license, or permit of the United States,
including a license from the United States Department of the
Treasury, and companies, except agencies of the Republic of the
Sudan, who are certified as Non-Government Organizations by the
United Nations, or who engage solely in (i) the provision of
goods and services intended to relieve human suffering or to
promote welfare, health, religious and spiritual activities,
and education or humanitarian purposes; or (ii) journalistic
activities.
    "Private market fund" means any private equity fund,
private equity fund of funds, venture capital fund, hedge fund,
hedge fund of funds, real estate fund, or other investment
vehicle that is not publicly traded.
    "Republic of the Sudan" means those geographic areas of the
Republic of Sudan that are subject to sanction or other
restrictions placed on commercial activity imposed by the
United States Government due to an executive or congressional
declaration of genocide.
    "Retirement system" means the State Employees' Retirement
System of Illinois, the Judges Retirement System of Illinois,
the General Assembly Retirement System, the State Universities
Retirement System, and the Teachers' Retirement System of the
State of Illinois.
    (c) A retirement system shall not transfer or disburse
funds to, deposit into, acquire any bonds or commercial paper
from, or otherwise loan to or invest in any entity unless, as
provided in this Section, a certifying company certifies to the
retirement system that, (1) with respect to investments in a
publicly traded company, the certifying company has relied on
information provided by an independent researching firm that
specializes in global security risk and (2) 100% of the
retirement system's assets for which the certifying company
provides services or advice are not and have not been invested
or reinvested in any forbidden entity at any time after 4
months after the effective date of this Section.
    The certifying company shall make the certification
required under this subsection (c) to a retirement system 6
months after the effective date of this Section and annually
thereafter. A retirement system shall submit the
certifications to the Department, and the Department shall
notify the Secretary of Financial and Professional Regulation
if a retirement system fails to do so.
    (d) With respect to a commitment or investment made
pursuant to a written agreement executed prior to the effective
date of this Section, each private market fund shall submit to
the appropriate certifying company, at no additional cost to
the retirement system:
        (1) an affidavit sworn under oath in which an expressly
    authorized officer of the private market fund avers that
    the private market fund (A) does not own or control any
    property or asset located in the Republic of the Sudan and
    (B) does not conduct business operations in the Republic of
    the Sudan; or
        (2) a certificate in which an expressly authorized
    officer of the private market fund certifies that the
    private market fund, based on reasonable due diligence, has
    determined that, other than direct or indirect investments
    in companies certified as Non-Government Organizations by
    the United Nations, the private market fund has no direct
    or indirect investment in any company (A) organized under
    the laws of the Republic of the Sudan; (B) whose principal
    place of business is in the Republic of the Sudan; or (C)
    that conducts business operations in the Republic of the
    Sudan. Such certificate shall be based upon the periodic
    reports received by the private market fund, and the
    private market fund shall agree that the certifying
    company, directly or through an agent, or the retirement
    system, as the case may be, may from time to time review
    the private market fund's certification process.
    (e) With respect to a commitment or investment made
pursuant to a written agreement executed after the effective
date of this Section, each private market fund shall, at no
additional cost to the retirement system:
        (1) submit to the appropriate certifying company an
    affidavit or certificate consistent with the requirements
    pursuant to subsection (d) of this Section; or
        (2) enter into an enforceable written agreement with
    the retirement system that provides for remedies
    consistent with those set forth in subsection (g) of this
    Section if any of the assets of the retirement system shall
    be transferred, loaned, or otherwise invested in any
    company that directly or indirectly (A) has facilities or
    employees in the Republic of the Sudan or (B) conducts
    business operations in the Republic of the Sudan.
    (f) In addition to any other penalties and remedies
available under the law of Illinois and the United States, any
transaction, other than a transaction with a private market
fund that is governed by subsections (g) and (h) of this
Section, that violates the provisions of this Act shall be
against public policy and voidable, at the sole discretion of
the retirement system.
    (g) If a private market fund fails to provide the affidavit
or certification required in subsections (d) and (e) of this
Section, then the retirement system shall, within 90 days,
divest, or attempt in good faith to divest, the retirement
system's interest in the private market fund, provided that the
Board of the retirement system confirms through resolution that
the divestment does not have a material and adverse impact on
the retirement system. The retirement system shall immediately
notify the Department, and the Department shall notify all
other retirement systems, as soon as practicable, by posting
the name of the private market fund on the Department's
Internet website or through e-mail communications. No other
retirement system may enter into any agreement under which the
retirement system directly or indirectly invests in the private
market fund unless the private market fund provides that
retirement system with the affidavit or certification required
in subsections (d) and (e) of this Section and complies with
all other provisions of this Section.
    (h) If a private market fund fails to fulfill its
obligations under any agreement provided for in paragraph (2)
of subsection (e) of this Section, the retirement system shall
immediately take legal and other action to obtain satisfaction
through all remedies and penalties available under the law and
the agreement itself. The retirement system shall immediately
notify the Department, and the Department shall notify all
other retirement systems, as soon as practicable, by posting
the name of the private market fund on the Department's
Internet website or through e-mail communications, and no other
retirement system may enter into any agreement under which the
retirement system directly or indirectly invests in the private
market fund.
    (i) This Section shall have full force and effect during
any period in which the Republic of the Sudan, or the officials
of the government of that Republic, are subject to sanctions
authorized under any statute or executive order of the United
States or until such time as the State Department of the United
States confirms in the federal register or through other means
that the Republic of the Sudan is no longer subject to
sanctions by the government of the United States.
    (j) If any provision of this Section or its application to
any person or circumstance is held invalid, the invalidity of
that provision or application does not affect other provisions
or applications of this Section that can be given effect
without the invalid provision or application.
 
    (40 ILCS 5/1-110.10 new)
    Sec. 1-110.10. Servicer certification.
    (a) For the purposes of this Section:
    "Illinois finance entity" means any entity chartered under
the Illinois Banking Act, the Savings Bank Act, the Illinois
Credit Union Act, or the Illinois Savings and Loan Act of 1985
and any person or entity licensed under the Residential
Mortgage License Act of 1987, the Consumer Installment Loan
Act, or the Sales Finance Agency Act.
    "Retirement system or pension fund" means a retirement
system or pension fund established under this Code.
    (b) In order for an Illinois finance entity to be eligible
for investment or deposit of retirement system or pension fund
assets, the Illinois finance entity must annually certify that
it complies with the requirements of the High Risk Home Loan
Act and the rules adopted pursuant to that Act that are
applicable to that Illinois finance entity. For Illinois
finance entities with whom the retirement system or pension
fund is investing or depositing assets on the effective date of
this Section, the initial certification required under this
Section shall be completed within 6 months after the effective
date of this Section. For Illinois finance entities with whom
the retirement system or pension fund is not investing or
depositing assets on the effective date of this Section, the
initial certification required under this Section must be
completed before the retirement system or pension fund may
invest or deposit assets with the Illinois finance entity.
    (c) A retirement system or pension fund shall submit the
certifications to the Public Pension Division of the Department
of Financial and Professional Regulation, and the Division
shall notify the Secretary of Financial and Professional
Regulation if a retirement system or pension fund fails to do
so.
    (d) If an Illinois finance entity fails to provide an
initial certification within 6 months after the effective date
of this Section or fails to submit an annual certification,
then the retirement system or pension fund shall notify the
Illinois finance entity. The Illinois finance entity shall,
within 30 days after the date of notification, either (i)
notify the retirement system or pension fund of its intention
to certify and complete certification or (ii) notify the
retirement system or pension fund of its intention to not
complete certification. If an Illinois finance entity fails to
provide certification, then the retirement system or pension
fund shall, within 90 days, divest, or attempt in good faith to
divest, the retirement system's or pension fund's assets with
that Illinois finance entity. The retirement system or pension
fund shall immediately notify the Department of the Illinois
finance entity's failure to provide certification.
    (e) If any provision of this Section or its application to
any person or circumstance is held invalid, the invalidity of
that provision or application does not affect other provisions
or applications of this Section that can be given effect
without the invalid provision or application.
 
    (15 ILCS 520/22.6 rep.)
    Section 90. The Deposit of State Moneys Act is amended by
repealing Section 22.6.
 
    (40 ILCS 5/1-110.5 rep.)
    Section 95. The Illinois Pension Code is amended by
repealing Section 1-110.5.
 
    Section 96. The State Mandates Act is amended by adding
Section 8.31 as follows:
 
    (30 ILCS 805/8.31 new)
    Sec. 8.31. Exempt mandate. Notwithstanding Sections 6 and 8
of this Act, no reimbursement by the State is required for the
implementation of any mandate created by this amendatory Act of
the 95th General Assembly.
 
    Section 97. Severability. If any provision of this Act or
its application to any person or circumstance is held invalid,
the invalidity of that provision or application does not affect
other provisions or applications of this Act that can be given
effect without the invalid provision or application.
 
    Section 99. Effective date. This Act takes effect upon
becoming law.

Effective Date: 8/28/2007