97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB6194

 

Introduced , by Rep. Richard Morthland - Jerry L. Mitchell

 

SYNOPSIS AS INTRODUCED:
 
55 ILCS 5/3-10009  from Ch. 34, par. 3-10009
55 ILCS 5/3-10011  from Ch. 34, par. 3-10011
65 ILCS 5/3.1-35-40  from Ch. 24, par. 3.1-35-40
65 ILCS 5/3.1-35-45  from Ch. 24, par. 3.1-35-45
65 ILCS 5/3.1-35-50  from Ch. 24, par. 3.1-35-50
65 ILCS 5/3.1-35-60  from Ch. 24, par. 3.1-35-60
65 ILCS 5/3.1-35-65  from Ch. 24, par. 3.1-35-65

    Amends the Counties Code. In a Section concerning the deposit of public funds, requires a co-signer, in addition to the treasurer, on all municipal accounts. Requires the county board to review certain books of account on a semi-annual basis. Amends the Illinois Municipal Code. Provides that the corporate authorities shall inspect the treasurer's books and accounts on a semi-annual basis. Removes a provision that requires the books and accounts to be subject to inspection at any time by a member of the corporate authorities. In a Section concerning treasurer's reports, requires the corporate authorities to review certain account statements on a monthly basis. Further provides that in addition to the treasurer, a co-signer shall be required on all municipal accounts. Provides that the treasurer shall report to the corporate authorities on a semi-annual basis (now, as often as they require) a full and detailed account of all receipts and expenditures of the municipality. Requires the municipal clerk to provide the corporate authorities with a copy of any annual account. Makes other changes. Effective immediately.


LRB097 21619 PJG 69875 b

 

 

A BILL FOR

 

HB6194LRB097 21619 PJG 69875 b

1    AN ACT concerning local government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Counties Code is amended by changing
5Sections 3-10009 and 3-10011 as follows:
 
6    (55 ILCS 5/3-10009)  (from Ch. 34, par. 3-10009)
7    Sec. 3-10009. Deposit of public funds.
8    (a) In counties having a population of less than 150,000
9the county board, when requested by the county treasurer, shall
10designate one or more banks, savings and loan associations,
11savings banks, or credit unions in which the funds and other
12public moneys in the custody of the county treasurer may be
13kept. In addition to the treasurer, a co-signer shall be
14required on all county accounts. The co-signer shall be
15designated by the county board by resolution. When and when a
16bank, savings and loan association, savings bank, or credit
17union has been designated as a depository it shall continue as
18such until 10 days have elapsed after a new depository is
19designated and has qualified by furnishing the statements of
20resources and liabilities as is required by this Section. When
21a new depository is designated, the county board shall notify
22the sureties of the county treasurer of that fact, in writing,
23at least 5 days before the transfer of funds. The county

 

 

HB6194- 2 -LRB097 21619 PJG 69875 b

1treasurer shall be discharged from responsibility for all funds
2and moneys which he deposits in a depository so designated
3while such funds and moneys are so deposited.
4    No bank, savings and loan association, savings bank, or
5credit union shall receive public funds as permitted by this
6Section, unless it has complied with the requirements
7established pursuant to Section 6 of "An Act relating to
8certain investments of public funds by public agencies",
9approved July 23, 1943, as now or hereafter amended.
10    (b) In addition to any other investments or deposits
11authorized under this Code, counties are authorized to invest
12the funds and public moneys in the custody of the County
13Treasurer in accordance with the Public Funds Investment Act.
14(Source: P.A. 97-129, eff. 7-14-11.)
 
15    (55 ILCS 5/3-10011)  (from Ch. 34, par. 3-10011)
16    Sec. 3-10011. Inspection of books of account.
17    (a) Said books of account shall be free to the inspection
18of all persons wishing to examine the same. The county board
19shall review these books of account on a semi-annual basis.
20    (b) The county treasurer shall make available to the county
21board any Entity Identification Numbers assigned to the county.
22The county board shall review the payments made to the county
23from the State through the Vendor Payments portal on the State
24Comptroller's website on a semi-annual basis.
25(Source: P.A. 86-962.)
 

 

 

HB6194- 3 -LRB097 21619 PJG 69875 b

1    Section 10. The Illinois Municipal Code is amended by
2changing Sections 3.1-35-40, 3.1-35-45, 3.1-35-50, 3.1-35-60,
3and 3.1-35-65 as follows:
 
4    (65 ILCS 5/3.1-35-40)  (from Ch. 24, par. 3.1-35-40)
5    Sec. 3.1-35-40. Treasurer; duties.
6    (a) The municipal treasurer shall receive all money
7belonging to the municipality and shall keep the treasurer's
8books and accounts in the manner prescribed by ordinance. These
9books and accounts shall always be subject to the inspection of
10any member of the corporate authorities. The corporate
11authorities shall inspect these books and accounts on a
12semi-annual basis. The municipality may, however, by ordinance
13designate a person or institution which, as bond trustee, shall
14receive from the county collector amounts payable to the
15municipality as taxes levied pursuant to a bond issuance.
16    (b) The treasurer shall keep a separate account of each
17fund or appropriation and the debits and credits belonging to
18the fund or appropriation.
19    (c) The treasurer shall give every person paying money into
20the treasury a receipt, specifying the date of payment and upon
21what account paid. The treasurer shall file copies of these
22receipts with the clerk, with the treasurer's monthly reports.
23If the treasurer has possession of money properly appropriated
24to the payment of any warrant lawfully drawn upon the

 

 

HB6194- 4 -LRB097 21619 PJG 69875 b

1treasurer, the treasurer shall pay the money specified in the
2warrant to the person designated by the warrant.
3    (d) The municipal treasurer shall make available to the
4corporate authorities any Entity Identification Numbers
5assigned to the municipality. The corporate authorities shall
6review the payments made to the municipality from the State
7through the Vendor Payments portal on the State Comptroller's
8website on a semi-annual basis.
9(Source: P.A. 87-1119.)
 
10    (65 ILCS 5/3.1-35-45)  (from Ch. 24, par. 3.1-35-45)
11    Sec. 3.1-35-45. Treasurer; reports. At the end of every
12month, and oftener if required by the corporate authorities,
13the municipal treasurer shall render an account under oath to
14the corporate authorities, or to an officer designated by
15ordinance, showing the state of the treasury at the date of the
16account and the balance of money in the treasury. The treasurer
17shall accompany the account with a statement of all money
18received into the treasury and on what account, together with
19all warrants redeemed and paid by the treasurer. On the day the
20treasurer renders an account, these warrants, with all vouchers
21held by the treasurer, shall be delivered to the municipal
22clerk and filed, together with the account, in the clerk's
23office. All paid warrants shall be marked "paid". The treasurer
24shall keep a register of all warrants, which shall describe
25each warrant, showing its date, amount, and number, the fund

 

 

HB6194- 5 -LRB097 21619 PJG 69875 b

1from which paid, the name of the person to whom paid, and when
2paid. The corporate authorities shall review this account
3statement on a monthly basis after it is filed with the clerk's
4office.
5(Source: P.A. 87-1119.)
 
6    (65 ILCS 5/3.1-35-50)  (from Ch. 24, par. 3.1-35-50)
7    Sec. 3.1-35-50. Treasurer; deposit of funds.
8    (a) The municipal treasurer may be required to keep all
9funds and money in the treasurer's custody belonging to the
10municipality in places of deposit designated by ordinance. The
11When requested by the municipal treasurer, the corporate
12authorities shall designate one or more banks or savings and
13loan associations in which may be kept the funds and money of
14the municipality in the custody of the treasurer. In addition
15to the treasurer, a co-signer shall be required on all
16municipal accounts. The co-signer shall be designated by the
17city council or village board by resolution. When a bank or
18savings and loan association has been designated as a
19depository, it shall continue as a depository until 10 days
20have elapsed after a new depository is designated and has
21qualified by furnishing the statements of resources and
22liabilities as required by this Section. When a new depository
23is designated, the corporate authorities shall notify the
24sureties of the municipal treasurer of that fact in writing at
25least 5 days before the transfer of funds. The treasurer shall

 

 

HB6194- 6 -LRB097 21619 PJG 69875 b

1be discharged from responsibility for all funds or money that
2the treasurer deposits in a designated bank or savings and loan
3association while the funds and money are so deposited.
4    (b) The municipal treasurer may require any bank or savings
5and loan association to deposit with the treasurer securities
6or mortgages that have a market value at least equal to the
7amount of the funds or moneys of the municipality deposited
8with the bank or savings and loan association that exceeds the
9insurance limitation provided by the Federal Deposit Insurance
10Corporation or the Federal Savings and Loan Insurance
11Corporation.
12    (c) The municipal treasurer may enter into agreements of
13any definite or indefinite term regarding the deposit,
14redeposit, investment, reinvestment, or withdrawal of
15municipal funds.
16    (d) Notwithstanding any other provision of this Act or any
17other law, each official custodian of municipal funds,
18including, without limitation, each municipal treasurer or
19finance director or each person properly designated as the
20official custodian for municipal funds, including, without
21limitation, each person properly designated as official
22custodian for funds held by an intergovernmental risk
23management entity, self-insurance pool, waste management
24agency, or other intergovernmental entity composed solely of
25participating municipalities, is permitted to:
26        (i) combine moneys from more than one fund of a single

 

 

HB6194- 7 -LRB097 21619 PJG 69875 b

1    municipality, risk management entity, self-insurance pool,
2    or other intergovernmental entity composed solely of
3    participating municipalities for the purpose of investing
4    such moneys;
5        (ii) join with any other official custodians or
6    treasurers of municipal, intergovernmental risk management
7    entity, self-insurance pool, waste management agency, or
8    other intergovernmental entity composed solely of
9    participating municipalities for the purpose of jointly
10    investing the funds of which the official custodians or
11    treasurers have custody; and
12        (iii) enter into agreements of any definite or
13    indefinite term regarding the redeposit, investment, or
14    withdrawal of municipal, risk management entity,
15    self-insurance agency, waste management agency, or other
16    intergovernmental entity funds.
17    When funds are combined for investment purposes as
18authorized in this Section, the moneys combined for those
19purposes shall be accounted for separately in all respects, and
20the earnings from such investment shall be separately and
21individually computed, recorded, and credited to the fund,
22municipality, intergovernmental risk management entity,
23self-insurance pool, waste management agency, or other
24intergovernmental entity, as the case may be, for which the
25investment was acquired.
26    Joint investments shall be made only in investments

 

 

HB6194- 8 -LRB097 21619 PJG 69875 b

1authorized by law for investment of municipal funds. The grant
2of authority contained in this subsection is cumulative,
3supplemental, and in addition to all other power or authority
4granted by any other law and shall not be construed as a
5limitation of any power and authority otherwise granted.
6    (e) No bank or savings and loan association shall receive
7public funds as permitted by this Section unless it has
8complied with the requirements established by Section 6 of the
9Public Funds Investment Act.
10(Source: P.A. 89-592, eff. 8-1-96.)
 
11    (65 ILCS 5/3.1-35-60)  (from Ch. 24, par. 3.1-35-60)
12    Sec. 3.1-35-60. Treasurer; receipts and expenditures. The
13municipal treasurer shall report to the corporate authorities
14on a semi-annual basis , as often as they require, a full and
15detailed account of all receipts and expenditures of the
16municipality, as shown by the treasurer's books, up to the time
17of the report.
18(Source: P.A. 87-1119.)
 
19    (65 ILCS 5/3.1-35-65)  (from Ch. 24, par. 3.1-35-65)
20    Sec. 3.1-35-65. Treasurer; annual accounts.
21    (a) Within 6 months after the end of each fiscal year, the
22treasurer of each municipality having a population of less than
23500,000, as determined by the last preceding federal census,
24shall annually prepare and file with the clerk of the

 

 

HB6194- 9 -LRB097 21619 PJG 69875 b

1municipality an account of moneys received and expenditures
2incurred during the preceding fiscal year as specified in this
3Section. The treasurer shall show in the account:
4        (1) All moneys received by the municipality,
5    indicating the total amounts, in the aggregate, received in
6    each account of the municipality, with a general statement
7    concerning the source of receipts. In this paragraph, the
8    term "account" does not mean each individual taxpayer,
9    householder, licensee, utility user, or other persons
10    whose payments to the municipality are credited to a
11    general account.
12        (2) Except as provided in paragraph (3) of this
13    subsection (a), all moneys paid out by the municipality
14    where the total amount paid during the fiscal year exceeds
15    $2,500 in the aggregate, giving the name of each person to
16    whom moneys were paid and the total paid to each person.
17        (3) All moneys paid out by the municipality as
18    compensation for personal services, giving the name of each
19    person to whom moneys were paid and the total amount paid
20    to each person from each account, except that the treasurer
21    may elect to report the compensation for personal services
22    of all personnel by name, listing each employee in one of
23    the following categories:
24            (A) under $25,000.00;
25            (B) $25,000.00 to $49,999.99;
26            (C) $50,000.00 to $74,999.99;

 

 

HB6194- 10 -LRB097 21619 PJG 69875 b

1            (D) $75,000.00 to $99,999.99;
2            (E) $100,000.00 to $124,999.99; or
3            (F) $125,000.00 and over.
4        (4) A summary statement of operations for all funds and
5    account groups of the municipality, as excerpted from the
6    annual financial report as filed with the appropriate State
7    agency.
8    (b) Upon receipt of the account from the municipal
9treasurer, the municipal clerk shall publish the account at
10least once in one or more newspapers published in the
11municipality or, if no newspaper is published in the
12municipality, then in one or more newspapers having a general
13circulation within the municipality. In municipalities with a
14population of less than 500 in which no newspaper is published,
15however, publication may be made by posting a copy of the
16account in 3 prominent places within the municipality.
17    (c) Upon receipt of the account from the municipal
18treasurer, the municipal clerk shall provide all corporate
19authorities with a copy of this account, that they shall be
20required to review within 30 days.
21(Source: P.A. 92-354, eff. 8-15-01.)
 
22    Section 99. Effective date. This Act takes effect upon
23becoming law.