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1 | AN ACT concerning finance.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 1. This Act may be referred to as the Financing | |||||||||||||||||||||||||
5 | Vendor Business Growth Correctly Act. | |||||||||||||||||||||||||
6 | Section 5. The State Treasurer Act is amended by changing | |||||||||||||||||||||||||
7 | Section 20 and by adding Section 40 as follows: | |||||||||||||||||||||||||
8 | (15 ILCS 505/20) | |||||||||||||||||||||||||
9 | Sec. 20. State Treasurer administrative charge. The State | |||||||||||||||||||||||||
10 | Treasurer may retain an administrative charge for both the | |||||||||||||||||||||||||
11 | costs of services associated with the deposit of moneys that | |||||||||||||||||||||||||
12 | are remitted directly to the State Treasurer and the | |||||||||||||||||||||||||
13 | investment or safekeeping of funds by the State Treasurer. The | |||||||||||||||||||||||||
14 | administrative charges collected under this Section shall be | |||||||||||||||||||||||||
15 | deposited into the State Treasurer's Administrative Fund. The | |||||||||||||||||||||||||
16 | amount of the administrative charges may be determined by the | |||||||||||||||||||||||||
17 | State Treasurer. Administrative charges from the deposit of | |||||||||||||||||||||||||
18 | moneys remitted directly to the State Treasurer shall not | |||||||||||||||||||||||||
19 | exceed 2% of the amount deposited. Administrative charges from | |||||||||||||||||||||||||
20 | the investment or safekeeping of funds by the State Treasurer | |||||||||||||||||||||||||
21 | shall be charged no more than monthly and the total amount | |||||||||||||||||||||||||
22 | charged per fiscal year shall not exceed $14,500,000 |
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1 | $12,000,000 plus any amounts required as employer | ||||||
2 | contributions under Section 14-131 of the Illinois Pension | ||||||
3 | Code and Section 10 of the State Employees Group Insurance Act | ||||||
4 | of 1971. | ||||||
5 | Administrative charges for the deposit of moneys shall | ||||||
6 | apply to fines, fees, or other amounts remitted directly to | ||||||
7 | the State Treasurer by circuit clerks, county clerks, and | ||||||
8 | other entities for deposit into a fund in the State treasury. | ||||||
9 | Administrative charges for the deposit of moneys do not apply | ||||||
10 | to amounts remitted by State agencies or certified collection | ||||||
11 | specialists as defined in 74 Ill. Admin. Code 1200.50. | ||||||
12 | Administrative charges for the deposit of moneys shall apply | ||||||
13 | only to any form of fines, fees, or other collections created | ||||||
14 | on or after August 15, 2014 (the effective date of Public Act | ||||||
15 | 98-965).
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16 | Moneys in the State Treasurer's Administrative Fund are | ||||||
17 | subject to appropriation by the General Assembly. | ||||||
18 | (Source: P.A. 100-587, eff. 6-4-18.) | ||||||
19 | (15 ILCS 505/40 new) | ||||||
20 | Sec. 40. State Treasurer commercial note investment. The | ||||||
21 | State Treasurer may invest in a commercial note from a State | ||||||
22 | vendor in the amount of 50% to 100% of any invoice to be paid | ||||||
23 | by the Capital Development Board or a pay item with the | ||||||
24 | Department of Transportation for work already completed. The | ||||||
25 | commercial note shall be either the actual invoice approved by |
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1 | the project architect and submitted to the Capital Development | ||||||
2 | Board or the pay item submitted and approved by a resident | ||||||
3 | engineer of the Department of Transportation, or a copy | ||||||
4 | thereof. The State Treasurer may require proof of work | ||||||
5 | completed or other documentation. The State Treasurer may | ||||||
6 | invest in the commercial note and collect interest and | ||||||
7 | administrative fees pursuant to Section 20. If any amount is | ||||||
8 | deducted from payments made by the State with respect to any | ||||||
9 | commercial note investment under this Section due to the | ||||||
10 | State's exercise of any offset or other contractual rights | ||||||
11 | against a State vendor, including statutorily required | ||||||
12 | administrative fees imposed pursuant to the State Comptroller | ||||||
13 | Act, the State vendor shall still be required to pay the | ||||||
14 | commercial note in full to the State Treasurer. The State | ||||||
15 | Treasurer may retain any third-party to carry out the terms of | ||||||
16 | this Section. The State vendor must comply with the terms of | ||||||
17 | the commercial note investment and assign rights to payment | ||||||
18 | from the Capital Development Board or Department of | ||||||
19 | Transportation to the Treasurer or third-party retained by the | ||||||
20 | Treasurer. The interest and fees shall be set by the State | ||||||
21 | Treasurer. Commercial note investments shall be public records | ||||||
22 | and the State Treasurer shall post the terms on the State | ||||||
23 | Treasurer's official website. | ||||||
24 | The State Treasurer may terminate immediately any | ||||||
25 | commercial note investment made under this Section if the | ||||||
26 | Capital Development Board or the Department of Transportation |
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1 | determine that the State vendor has not complied with the | ||||||
2 | terms of its contract. Upon termination of a commercial note | ||||||
3 | investment, the State vendor must immediately repay the | ||||||
4 | commercial note investment, with any interest earned. | ||||||
5 | Actions taken pursuant to this Section shall not | ||||||
6 | constitute government knowledge or acceptance of any conduct, | ||||||
7 | and shall not limit the rights and remedies provided for under | ||||||
8 | the Illinois False Claims Act or the federal False Claims Act. | ||||||
9 | Section 10. The Illinois Procurement Code is amended by | ||||||
10 | adding Section 30-60 as follows: | ||||||
11 | (30 ILCS 500/30-60 new) | ||||||
12 | Sec. 30-60. Construction disbursement provider. | ||||||
13 | (a) All construction contracts with this State entered | ||||||
14 | into after the effective date of this amendatory Act of the | ||||||
15 | 102nd General Assembly shall require the prime contractor to | ||||||
16 | designate an independent escrowee operating as a construction | ||||||
17 | disbursement provider under subsection (i) of Section 17 of | ||||||
18 | the Title Insurance Act to receive funds directly from the | ||||||
19 | Comptroller. | ||||||
20 | (b) The construction disbursement provider shall provide a | ||||||
21 | certified copy of each disbursement record to the contracting | ||||||
22 | State agency. | ||||||
23 | (c) The requirements of this Section shall only apply to | ||||||
24 | State construction contracts in which the State Treasurer |
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1 | invests a commercial note as provided under Section 40 of the | ||||||
2 | State Treasurer Act. | ||||||
3 | Section 15. The Title Insurance Act is amended by changing | ||||||
4 | Section 17 as follows:
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5 | (215 ILCS 155/17) (from Ch. 73, par. 1417)
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6 | Sec. 17. Independent escrowees.
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7 | (a)
Every independent escrowee shall be subject to the | ||||||
8 | same
certification and deposit requirements to which title | ||||||
9 | insurance companies
are subject under Section 4 of this Act.
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10 | (b) No person, firm, corporation or other legal entity | ||||||
11 | shall hold itself
out to be an independent escrowee unless it | ||||||
12 | has been issued a certificate
of authority by the Secretary.
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13 | (c) Every applicant for a certificate of authority, except | ||||||
14 | a firm,
partnership, association or corporation, must be 18 | ||||||
15 | years or more of age.
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16 | (d) Every certificate of authority shall remain in effect | ||||||
17 | one year
unless revoked or suspended by the Secretary
or | ||||||
18 | voluntarily surrendered
by the holder.
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19 | (e) An independent escrowee may engage in the escrow, | ||||||
20 | settlement, or closing
business, or any combination of such | ||||||
21 | business, and operate as an escrow,
settlement, or closing | ||||||
22 | agent, provided that:
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23 | (1) Funds deposited in connection with any escrow, | ||||||
24 | settlement, or
closing shall be deposited in a separate |
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1 | fiduciary trust account or
accounts in a bank or other | ||||||
2 | financial institution insured by an agency of
the federal | ||||||
3 | government unless the instructions provide otherwise. Such
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4 | funds shall be the property of the person or persons | ||||||
5 | entitled thereto under
the provisions of the escrow, | ||||||
6 | settlement, or closing and shall be
segregated by escrow, | ||||||
7 | settlement or closing in the records of the
independent | ||||||
8 | escrowee. Such funds shall not be subject to any debts of | ||||||
9 | the
escrowee and shall be used only in accordance with the | ||||||
10 | terms of the
individual escrow, settlement or closing | ||||||
11 | under which the funds were accepted.
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12 | (2) Interest received on funds deposited with the | ||||||
13 | independent escrowee
in connection with any escrow, | ||||||
14 | settlement or closing shall be paid to the
depositing | ||||||
15 | party unless the instructions provide otherwise.
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16 | (3) The independent escrowee shall maintain separate | ||||||
17 | records of all
receipt and disbursement of escrow, | ||||||
18 | settlement or closing funds.
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19 | (4) The independent escrowee shall comply with any | ||||||
20 | rules or regulations
promulgated by the Secretary
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21 | pertaining to escrow, settlement or closing
transactions.
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22 | (f) The Secretary or his authorized representative shall | ||||||
23 | have the power
and authority to visit and examine at any time | ||||||
24 | any independent escrowee
certified under this Act and to | ||||||
25 | verify and compel compliance with the provisions of
this Act.
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26 | (g) A title insurance company or title
insurance agent, |
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1 | not qualified as an independent escrowee, may act in the
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2 | capacity of an escrow agent when it is supplying an abstract of | ||||||
3 | title,
grantor-grantee search, tract search, lien search, tax | ||||||
4 | assessment search, or
other limited purpose search to the | ||||||
5 | parties to the transaction even if it is
not issuing a title | ||||||
6 | insurance commitment or title insurance policy. A title
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7 | insurance agent may act as an escrow agent only when | ||||||
8 | specifically authorized in
writing on forms prescribed by the | ||||||
9 | Secretary by a title insurance company that
has duly | ||||||
10 | registered the agent with the Secretary and only when notice | ||||||
11 | of the
authorization is provided to and receipt thereof is | ||||||
12 | acknowledged by the
Secretary. The authority granted to a | ||||||
13 | title insurance agent may be limited or
revoked at any time by | ||||||
14 | the title insurance company.
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15 | (h) An independent escrowee may, pursuant to Section 17.1 | ||||||
16 | of this Act, issue an insured closing letter if, in addition to | ||||||
17 | complying with the same certification and deposit requirements | ||||||
18 | that title insurance companies are subject to under Section 4 | ||||||
19 | of this Act, the independent escrowee: | ||||||
20 | (1) Satisfies the Secretary that it has a minimum | ||||||
21 | capital and surplus of $2,000,000. The Secretary may | ||||||
22 | provide the forms and standards for this purpose by rule. | ||||||
23 | This paragraph applies only to independent escrowees | ||||||
24 | licensed under this Act for the first time on or after the | ||||||
25 | effective date of this amendatory Act of the 100th General | ||||||
26 | Assembly. |
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1 | (2) Files with and has approved by the Secretary proof | ||||||
2 | of a fidelity bond in the minimum amount of $2,000,000 per | ||||||
3 | occurrence. | ||||||
4 | (3) Establishes and maintains a statutory closing | ||||||
5 | protection letter reserve for the protection of parties | ||||||
6 | named in warranties of services consisting of a sum of 25% | ||||||
7 | of the closing protection letter revenue received by the | ||||||
8 | independent escrowee on or after the effective date of | ||||||
9 | this amendatory Act of the 100th General Assembly. The | ||||||
10 | reserve shall be reported as a liability of the | ||||||
11 | independent escrowee in its financial statements. Amounts | ||||||
12 | placed in the statutory closing protection letter reserve | ||||||
13 | shall be deducted in determining the net profit of the | ||||||
14 | independent escrowee for the year. Except as provided in | ||||||
15 | this subsection, assets in value equal to the statutory | ||||||
16 | closing protection letter reserve are not subject to | ||||||
17 | distribution among creditors, stockholders, or other | ||||||
18 | owners of the independent escrowee until all claims of | ||||||
19 | parties named in warranties of services have been paid in | ||||||
20 | full and discharged. | ||||||
21 | (4) Releases from the statutory closing protection | ||||||
22 | letter reserve a sum equal to 10% of the amount added to | ||||||
23 | the reserve during a calendar year on July 1 of each of the | ||||||
24 | 5 years following the year in which the sum was added and | ||||||
25 | releases from the statutory closing protection letter | ||||||
26 | reserve a sum equal to 3 1/3% of the amount added to the |
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1 | reserve during that year on each succeeding July 1 until | ||||||
2 | the entire amount for that year has been released. | ||||||
3 | The Secretary shall adopt and amend rules as may be | ||||||
4 | required for the proper administration and enforcement of this | ||||||
5 | subsection (h) consistent with the federal Real Estate | ||||||
6 | Settlement and Procedures Act and Section 24 of this Act. | ||||||
7 | (i) An independent escrowee may operate as a construction | ||||||
8 | disbursement provider. An independent escrowee that operates | ||||||
9 | as a construction disbursement provider shall certify that all | ||||||
10 | funds distributed to and from the independent escrowee have | ||||||
11 | been in fact received and distributed to the proper parties, | ||||||
12 | including all subcontractors, suppliers, and employees or | ||||||
13 | independent contractors who perform labor for any contractor | ||||||
14 | who received funds from a disbursement. An independent | ||||||
15 | escrowee that operates as a construction disbursement provider | ||||||
16 | shall maintain a record of every disbursement with proof that | ||||||
17 | the funds were disbursed to accounts controlled by a party | ||||||
18 | entitled to funds from a disbursement. An individual receiving | ||||||
19 | wages or payment for labor under a disbursement shall be | ||||||
20 | individually recorded to ensure all wages are paid. All funds | ||||||
21 | shall be distributed to all parties on the same day payment is | ||||||
22 | received by the independent escrowee operating as a | ||||||
23 | construction disbursement provider. An independent escrowee | ||||||
24 | operating as a construction disbursement provider shall issue | ||||||
25 | a certified disbursement record for every disbursement that | ||||||
26 | includes all payments received and made. |
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1 | (Source: P.A. 100-485, eff. 9-8-17.)
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