SB0653 EngrossedLRB102 13364 RJF 18708 b

1    AN ACT concerning State government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The State Treasurer Act is amended by changing
5Section 30 as follows:
 
6    (15 ILCS 505/30)
7    Sec. 30. Preferences for veterans, minorities, women, and
8persons with disabilities.
9    (a) As used in this Section:
10        (1) the terms "minority person", "woman", "person with
11    a disability", "minority-owned business", "women-owned
12    business", "business owned by a person with a disability",
13    and "control" have the meanings provided in Section 2 1 of
14    the Business Enterprise for Minorities, Women, and Persons
15    with Disabilities Act; and
16        (2) the terms "veteran", "qualified veteran-owned
17    small business", "qualified service-disabled
18    veteran-owned small business", "qualified
19    service-disabled veteran", and "armed forces of the United
20    States" have the meanings provided in Article 45 1 of the
21    Illinois Procurement Code.
22    (b) It is hereby declared to be the policy of the State
23Treasurer to promote and encourage the use of businesses owned

 

 

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1by or under the control of qualified veterans of the armed
2forces of the United States, qualified service-disabled
3veterans, minority persons, women, or persons with a
4disability in the area of goods and services. Furthermore, the
5State Treasurer shall utilize such businesses to the greatest
6extent feasible within the bounds of financial and fiduciary
7prudence, and take affirmative steps to remove any barriers to
8the full participation of such firms in the procurement and
9contracting opportunities afforded.
10    (c) It shall be an aspirational goal of the State
11Treasurer to use businesses owned by or under the control of
12qualified veterans of the armed forces of the United States,
13qualified service-disabled veterans, minority persons, women,
14or persons with a disability for not less than 25% of the total
15dollar amount of funds under management, purchases of
16investment securities, and other contracts, including, but not
17limited to, the use of broker-dealers. The State Treasurer is
18authorized to establish additional aspirational goals.
19    (d) When the State Treasurer procures goods and services,
20whether through a request for proposal or otherwise, he or she
21is authorized to incorporate preferences in the scoring
22process for: (1) a minority-owned business, a women-owned
23business, a business owned by a person with a disability, a
24qualified veteran-owned small business, or a qualified
25service-disabled veteran-owned small business; and (2)
26businesses having a record of support for increasing diversity

 

 

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1and inclusion in board membership, management, employment,
2philanthropy, and supplier diversity, including investment
3professionals and investment sourcing.
4    When the State Treasurer utilizes a financial institution
5or determines the eligibility of a financial institution to
6participate in a banking contract, investment contract,
7investment activity, or other financial program of the State
8Treasurer, he or she shall review the financial institution's
9Community Reinvestment Act rating, record, and current level
10of financial commitment to the community prior to making a
11decision to utilize or determine the eligibility of such
12financial institution.
13    (e) Beginning with fiscal year 2019, and at least annually
14thereafter, the State Treasurer shall report on his or her
15utilization of minority-owned businesses, women-owned
16businesses, businesses owned by a person with a disability,
17qualified veteran-owned small businesses, or qualified
18service-disabled veteran-owned small businesses. The report
19shall be published on the State Treasurer's official website.
20    (f) The provisions of this Section take precedence over
21any goals established under the Business Enterprise for
22Minorities, Women, and Persons with Disabilities Act.
23(Source: P.A. 100-969, eff. 8-19-18.)
 
24    Section 10. The Deposit of State Moneys Act is amended by
25changing Sections 1, 1.1, 2, 7, 8, 9, 10, 11, 12, 14, 15, 17,

 

 

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118, 19, 20, 22, 22.5, 22.8, and 23 as follows:
 
2    (15 ILCS 520/1)  (from Ch. 130, par. 20)
3    Sec. 1. The State Treasurer shall deposit all moneys
4received by him or her on account of the State within five days
5after receiving the same in such financial institutions banks,
6savings and loan associations or credit unions of the State as
7may be authorized to receive such deposits under the terms of
8this Act. The money so deposited shall be placed to the account
9of the State Treasurer.
10    No financial institution bank, savings and loan
11association or credit union shall receive public funds as
12permitted by this Act Section, unless it has complied with the
13requirements established pursuant to this Act Section 6 of "An
14Act relating to certain investments of public funds by public
15agencies", approved July 23, 1943, as now or hereafter
16amended.
17    For purposes of this Act, the term "financial institution"
18"bank" or "savings and loan association" shall be deemed to
19include a bank, a savings and loan association, a savings
20bank, a credit union, a minority depository institution as
21designated by the Federal Deposit Insurance Corporation, or a
22community development financial institution certified by the
23United States Treasury Community Development Financial
24Institutions Fund, which is operating in the State of Illinois
25a credit union, and, unless otherwise specifically set forth

 

 

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1in this Act, credit unions shall be subject to all rights,
2privileges, remedies, duties, and obligations granted or
3imposed by this Act upon banks and savings and loan
4associations.
5    The State Treasurer may require financial institutions to
6submit sworn statements of resources and liabilities that are
7required to be furnished to any regulatory or licensing
8entity, and reports of any examination prepared by or
9submitted to any regulatory or licensing entity. All records
10submitted by a financial institution pursuant to this Section
11shall remain confidential in accordance with applicable laws.
12    The State Treasurer may accept as security for public
13funds deposited in a financial institution any securities or
14other eligible collateral authorized by this Act. The State
15Treasurer is authorized to enter into an agreement with any
16financial institution, or trust company, or with any agency of
17the U.S. government relating to the deposit of such assets or
18securities. The State Treasurer shall be discharged from
19responsibility for any funds for which assets or securities
20are so deposited with him or her, and the funds for which
21securities are so deposited shall not be subject to any
22otherwise applicable limitation as to amount.
23    This Act shall govern the deposit of State moneys for all
24public funds under the custody or control of the State
25Treasurer.
26(Source: P.A. 85-803.)
 

 

 

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1    (15 ILCS 520/1.1)  (from Ch. 130, par. 20.1)
2    Sec. 1.1. When investing or depositing public funds, each
3custodian shall, to the extent permitted by this Act and by the
4lawful and reasonable performance of his custodial duties,
5invest or deposit such funds with or in minority-owned
6financial institutions within this State. For the purposes of
7this Section, "minority-owned financial institutions" means a
8financial institution with 51% or more of the stock or equity
9of the business owned by women, minority persons, military
10veterans, qualified service-disabled veteran-owned, or persons
11with disabilities as defined in Section 2 of the Business
12Enterprise for Minorities, Women, and Persons with
13Disabilities Act and Section 45-57 of the Illinois Procurement
14Code.
15(Source: P.A. 84-754.)
 
16    (15 ILCS 520/2)  (from Ch. 130, par. 21)
17    Sec. 2. All financial institutions banks or savings and
18loan associations in which any such money is deposited shall
19be required to pay interest on time deposit accounts if
20members of the Federal Reserve system are permitted to pay
21interest on the particular class of deposit. All interest
22received or paid on account of money in the State Treasury
23treasury belonging to or for the use of the State so deposited
24in financial institutions banks or savings and loan

 

 

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1associations, shall be the property of the State of Illinois.
2If any moneys held by the State Treasurer shall be deposited in
3financial institutions banks or savings and loan associations
4pursuant to the provisions of this Act, the interest received
5thereon shall be credited as provided in Section 4.1 of the
6State Finance Act "An Act in relation to State finance".
7(Source: P.A. 84-1378.)
 
8    (15 ILCS 520/7)  (from Ch. 130, par. 26)
9    Sec. 7. (a) State depositories. The State Treasurer may,
10in his or her discretion, allow a financial institution to
11become a State depository. To become an approved State
12depository, a financial institution shall submit an
13application or proposal, along with all required forms and
14documentation, in a manner prescribed by the Treasurer.
15Proposals made may either be approved or rejected by the State
16Treasurer. A bank or savings and loan association whose
17proposal is approved shall be eligible to become a State
18depositary for the class or classes of funds covered by its
19proposal. A bank or savings and loan association whose
20proposal is rejected shall not be so eligible. The State
21Treasurer shall seek to have at all times a total of not less
22than 20 banks or savings and loan associations which are
23approved as State depositaries for time deposits.
24    In order to receive funds under this Section, a financial
25institution must become a State depository. Prior to allowing

 

 

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1a financial institution to become a State depository, the
2State Treasurer shall consider the financial institution's
3financial condition and community and economic development
4efforts.
5    All applications submitted pursuant to this Section will
6be reviewed in accordance with the terms defined by the
7program documents and in the respective application and
8related documents.
9    (b) Linked deposits. The State Treasurer may, in his or
10her discretion, accept a proposal or application from a
11financial an eligible institution which provides for a reduced
12rate of interest provided that the financial such institution
13uses the documents the use of deposited funds for the purpose
14of economic and community development in the State of
15Illinois, which may include, but not be limited to loans for
16the following: agriculture, business, individuals, and
17community development. Financial institutions, and, in some
18cases borrowers, that utilize linked deposit funds shall
19provide documentation regarding the use of such funds in a
20manner prescribed by the Treasurer projects.
21    (b-5) (Blank). The State Treasurer may, in his or her
22discretion, accept a proposal from an eligible institution
23that provides for a reduced rate of interest, provided that
24such institution agrees to expend an amount of money equal to
25the amount of the reduction for the preservation of Cahokia
26Mounds.

 

 

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1    (b-10) (Blank). The State Treasurer may, in his or her
2discretion, accept a proposal from an eligible institution
3that provides for a reduced rate of interest, provided that
4the institution agrees to expend an amount of money equal to
5the amount of the reduction for senior centers.
6    (b-15) Access to capital. The State Treasurer may, in his
7or her discretion, accept a proposal or application from a
8financial institution for access to capital at market rate to
9provide added liquidity or administer lending activities in
10the State of Illinois.
11    (c) Home loans. The State Treasurer may, in his or her
12discretion, accept a proposal or application from a financial
13an eligible institution that provides for interest earnings on
14deposits of State moneys to be held by the financial
15institution in a separate account that the State Treasurer may
16use to secure up to 10% of any (i) home loans to Illinois
17citizens purchasing or refinancing a home in Illinois in
18situations where the participating financial institution would
19not offer the borrower a home loan under the financial
20institution's prevailing credit standards without the
21incentive of the 10% guarantee for the first 5 years of the
22loan a reduced rate of interest on deposits of State moneys,
23(ii) existing home loans of Illinois citizens who have failed
24to make payments on a home loan as a result of a financial
25hardship due to circumstances beyond the control of the
26borrower where there is a reasonable prospect that the

 

 

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1borrower will be able to resume full mortgage payments, and
2(iii) loans in amounts that do not exceed the amount of
3arrearage on a mortgage and that are extended to enable a
4borrower to become current on his or her mortgage obligation.
5    The following factors shall be considered by the
6participating financial institution to determine whether the
7financial hardship is due to circumstances beyond the control
8of the borrower: (i) loss, reduction, or delay in the receipt
9of income because of the death or disability of a person who
10contributed to the household income, (ii) expenses actually
11incurred related to the uninsured damage or costly repairs to
12the mortgaged premises affecting its habitability, (iii)
13expenses related to the death or illness in the borrower's
14household or of family members living outside the household
15that reduce the amount of household income, (iv) loss of
16income or a substantial increase in total housing expenses
17because of divorce, abandonment, separation from a spouse, or
18failure to support a spouse or child, (v) unemployment or
19underemployment, (vi) loss, reduction, or delay in the receipt
20of federal, State, or other government benefits, and (vii)
21participation by the homeowner in a recognized labor action
22such as a strike. In determining whether there is a reasonable
23prospect that the borrower will be able to resume full
24mortgage payments, the participating financial institution
25shall consider factors including, but not necessarily limited
26to the following: (i) a favorable work and credit history,

 

 

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1(ii) the borrower's ability to and history of paying the
2mortgage when employed, (iii) the lack of an impediment or
3disability that prevents reemployment, (iv) new education and
4training opportunities, (v) non-cash benefits that may reduce
5household expenses, and (vi) other debts.
6    For the purposes of this Section, "home loan" means a
7loan, other than an open-end credit plan or a reverse mortgage
8transaction, for which (i) the principal amount of the loan
9does not exceed the conforming loan size limit as established
10from time to time by the Federal National Mortgage
11Association, (ii) the borrower is a natural person, (iii) the
12debt is incurred by the borrower primarily for personal,
13family, or household purposes, and (iv) the loan is secured by
14a mortgage or deed of trust on real estate upon which there is
15located or there is to be located a structure designed
16principally for the occupancy of no more than 4 families and
17that is or will be occupied by the borrower as the borrower's
18principal dwelling.
19    (d) If there is an agreement between the State Treasurer
20and an eligible institution that details the use of deposited
21funds, the agreement may not require the gift of money, goods,
22or services to a third party; this provision does not restrict
23the eligible institution from contracting with third parties
24in order to carry out the intent of the agreement or restrict
25the State Treasurer from placing requirements upon third-party
26contracts entered into by the eligible institution.

 

 

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1(Source: P.A. 95-834, eff. 8-15-08.)
 
2    (15 ILCS 520/8)  (from Ch. 130, par. 27)
3    Sec. 8. All proposals and applications shall be retained
4by be filed in the office of the State Treasurer in accordance
5with the State Treasurer's approved record retention policy,
6and shall be open at all reasonable hours to public
7inspection. The State Treasurer shall maintain a current list
8of the financial institutions banks or savings and loan
9associations serving as State depositories depositaries of
10public moneys, with a statement of the rate of interest paid by
11each and the maturity date of such deposits, which list shall
12likewise be open to public inspection and shall be updated and
13posted on the State Treasurer's official website. A copy of
14each revision of the current list shall be supplied to the
15Governor.
16(Source: P.A. 83-541.)
 
17    (15 ILCS 520/9)  (from Ch. 130, par. 28)
18    Sec. 9. The approval of any proposal or application shall
19confer no right upon any financial institution bank or savings
20and loan association to receive deposits of public money.
21(Source: P.A. 83-541.)
 
22    (15 ILCS 520/10)  (from Ch. 130, par. 29)
23    Sec. 10. The State Treasurer may enter into an agreement

 

 

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1in conformity with this Act with any financial institution
2bank or savings and loan association relating to the deposit
3of securities. Such agreement may authorize the holding by
4such financial institution bank or savings and loan
5association of such securities in custody and safekeeping
6solely under the instructions of the State Treasurer either
7(a) in the office of such financial institution bank or
8savings and loan association, or under the custody and
9safekeeping of another financial institution bank or savings
10and loan association in this State for the depository
11financial institution bank or savings and loan association, or
12(b) in a bank or a depository trust company in the United
13States if the securities to be deposited are held in custody
14and safekeeping for such financial institution bank or savings
15and loan association.
16(Source: P.A. 101-206, eff. 8-2-19; revised 9-12-19.)
 
17    (15 ILCS 520/11)  (from Ch. 130, par. 30)
18    Sec. 11. Protection of public deposits; eligible
19collateral.
20    (a) For deposits not insured by an agency of the federal
21government, or above the applicable insured limits, the State
22Treasurer, in his or her discretion, may accept as collateral
23any of the following assets or classes of securities, provided
24there has been no default in the payment of principal or
25interest thereon:

 

 

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1        (1) Bonds, notes, or other securities constituting
2    direct and general obligations of the United States, the
3    bonds, notes, or other securities constituting the direct
4    and general obligation of any agency or instrumentality of
5    the United States, the interest and principal of which is
6    unconditionally guaranteed by the United States, and
7    bonds, notes, or other securities or evidence of
8    indebtedness constituting the obligation of a U.S. agency
9    or instrumentality.
10        (2) Direct and general obligation bonds of the State
11    of Illinois or of any other state of the United States.
12        (3) Revenue bonds of this State or any authority,
13    board, commission, or similar agency thereof.
14        (4) Direct and general obligation bonds of any city,
15    town, county, school district, or other taxing body of any
16    state, the debt service of which is payable from general
17    ad valorem taxes.
18        (5) Revenue bonds of any city, town, county, or school
19    district of the State of Illinois.
20        (6) Obligations issued, assumed, or guaranteed by the
21    International Finance Corporation, the principal of which
22    is not amortized during the life of the obligation, but no
23    such obligation shall be accepted at more than 90% of its
24    market value.
25        (7) Illinois Affordable Housing Program Trust Fund
26    Bonds or Notes as defined in and issued pursuant to the

 

 

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1    Illinois Housing Development Act.
2        (8) In an amount equal to at least market value of that
3    amount of funds deposited exceeding the insurance
4    limitation provided by the Federal Deposit Insurance
5    Corporation or the National Credit Union Administration or
6    other approved share insurer: (i) securities, (ii)
7    mortgages, (iii) letters of credit issued by a Federal
8    Home Loan Bank, or (iv) loans covered by a State Guarantee
9    under the Illinois Farm Development Act, if that guarantee
10    has been assumed by the Illinois Finance Authority under
11    Section 845-75 of the Illinois Finance Authority Act, and
12    loans covered by a State Guarantee under Article 830 of
13    the Illinois Finance Authority Act.
14        (9) Obligations of either corporations or limited
15    liability companies organized in the United States with
16    assets exceeding $500,000,000 if: (i) the obligations are
17    rated at the time of purchase at one of the 3 highest
18    classifications established by at least 2 standard rating
19    services and mature more than 270 days, but less than 5
20    years, from the date of purchase; and (ii) the corporation
21    or the limited liability company has not been placed on
22    the list of restricted companies by the Illinois
23    Investment Policy Board under Section 1-110.16 of the
24    Illinois Pension Code.
25        (10) Share certificates issued to the depository
26    institution pledging them as security.

 

 

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1    (b) The State Treasurer may establish a system to
2aggregate permissible assets or securities received as
3collateral from financial institutions in a collateral pool to
4secure State deposits of the institutions that have pledged
5assets or securities to the pool.
6    (c) The State Treasurer may at any time declare any
7particular asset or security ineligible to qualify as
8collateral when, in the Treasurer's judgment, it is deemed
9desirable to do so.
10    (d) Notwithstanding any other provision of this Section,
11as security the State Treasurer may, in his discretion, accept
12a bond, executed by a company authorized to transact the kinds
13of business described in clause (g) of Section 4 of the
14Illinois Insurance Code, in an amount not less than the amount
15of the deposits required by this Section to be secured,
16payable to the State Treasurer for the benefit of the People of
17the State of Illinois, in a form that is acceptable to the
18State Treasurer.
19(Source: P.A. 101-206, eff. 8-2-19.)
 
20    (15 ILCS 520/12)  (from Ch. 130, par. 31)
21    Sec. 12. All assets or securities deposited by financial
22institutions approved banks or savings and loan associations
23under the provisions of this Act shall remain the property of
24the financial institutions banks or savings and loan
25associations depositing such securities. Should the depository

 

 

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1depositary refuse or fail to pay over the moneys, or any part
2thereof, deposited with it when due and payable, the State
3Treasurer may sell such securities in accordance with the
4terms of any agreement between the State Treasurer and the
5depository financial institution depositary bank or savings
6and loan association or, if applicable, institute suit on the
7bond. If a depository depositary fails or suspends active
8operations, the deposit in such depository depositary shall
9become due and payable immediately, any agreement or contract
10to the contrary notwithstanding. Such sale shall transfer
11absolute ownership of the securities so sold to the vendee
12thereof. The surplus, if any, over the amount due to the State
13and the expenses of the sale shall be paid to the depository
14depositary. Actions may be brought in the name of the People of
15the State of Illinois to enforce the claims of the State with
16respect to any assets or securities deposited by an approved
17financial institution bank or savings and loan association.
18(Source: P.A. 85-233.)
 
19    (15 ILCS 520/14)  (from Ch. 130, par. 33)
20    Sec. 14. Interest. The State Treasurer shall enter into
21deposit agreements with financial institutions specifying the
22manner of interest calculation and compounding and the
23frequency of interest collection regarding moneys deposited
24under this Act.
25(Source: P.A. 89-153, eff. 7-14-95.)
 

 

 

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1    (15 ILCS 520/15)  (from Ch. 130, par. 34)
2    Sec. 15. (a) A financial institution bank or savings and
3loan association approved as a State depository depositary
4shall cease to be an approved depository financial institution
5bank or savings and loan association, and shall be
6disqualified by the State Treasurer:
7        (1) Upon its failure to post a suitable bond or
8    deposit assets or securities with the State Treasurer;
9        (2) Upon its failure or refusal to pay over public
10    moneys or any part thereof;
11        (3) Upon its becoming insolvent or bankrupt, or being
12    placed in the hands of a receiver; or
13        (4) Upon a showing of unsatisfactory financial
14    condition through a report made to, or an examination made
15    by any regulatory or licensing body , the Comptroller of
16    the Currency, the Commissioner of Banks and Real Estate,
17    or the Federal Home Loan Bank or its successors.
18    (b) No approved depository depositary shall be
19disqualified by the State Treasurer solely by reason of its
20acquisition by another institution, unless the acquiring
21institution does not meet the criteria established by the
22State Treasurer.
23    (c) An approved depository may be disqualified by the
24State Treasurer, in his or her sole discretion, for violating
25the terms of the deposit agreement or any contract or

 

 

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1agreement with the State Treasurer.
2(Source: P.A. 89-508, eff. 7-3-96.)
 
3    (15 ILCS 520/17)  (from Ch. 130, par. 36)
4    Sec. 17. The State Treasurer shall keep in his or her
5office a record showing his or her account with each financial
6institution bank or savings and loan association, with entries
7therein showing the dates and amounts of each deposit, rate of
8interest, withdrawals and date of each, and balance on
9deposit. Each account shall show the date and amount of
10interest received during each interest paying period. Such
11record shall at all times be open to public inspection.
12(Source: P.A. 83-541.)
 
13    (15 ILCS 520/18)  (from Ch. 130, par. 37)
14    Sec. 18. The State Treasurer shall make a monthly report
15to the Governor giving a detailed statement of the balances on
16deposit in the financial institutions several banks or savings
17and loan associations, and the amount paid by each such
18financial institution bank or savings and loan association as
19interest on moneys so deposited. Such statement shall contain
20the name of each financial institution bank or savings and
21loan association, and the amount in such financial institution
22bank or savings and loan association subject to draft at the
23close of business on the last day of the month for which the
24report is made, and on the last day of the month next

 

 

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1preceding. A copy of such report shall be retained by the State
2Treasurer and shall be made available for inspection by the
3public at any reasonable time. The State Treasurer may satisfy
4the requirements of this Section by posting the monthly report
5on the State Treasurer's official Internet website.
6(Source: P.A. 99-856, eff. 8-19-16.)
 
7    (15 ILCS 520/19)  (from Ch. 130, par. 38)
8    Sec. 19. Nothing in this Act contained shall be held to
9prevent the State Treasurer from withdrawing any, or all, of
10the moneys so deposited, for the purpose of paying the
11appropriations and obligations of the State, nor to prevent
12his or her transferring moneys from one financial institution
13bank or savings and loan association to another, and nothing
14herein contained shall in any way affect the duty of the State
15Treasurer to keep a correct and accurate account of all moneys
16received and to pay out same only on authority of law; but the
17State Treasurer shall, as heretofore, be personally
18responsible for the faithful accounting of all moneys paid to
19him or her as State Treasurer.
20(Source: P.A. 83-541.)
 
21    (15 ILCS 520/20)  (from Ch. 130, par. 39)
22    Sec. 20. No financial institution bank or savings and loan
23association holding moneys deposited therewith by the State
24Treasurer, in accordance with the provisions of this Act, or

 

 

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1otherwise, and no officer of any such financial institution
2bank or savings and loan association, or other person, shall
3pay to, withhold for the benefit of, or contract in any manner
4for the payment to such State Treasurer, or to any other person
5for him or her, of any interest, or other fee, perquisite, or
6emolument, on account of the deposit of such moneys, except
7such interest as shall be paid to such State Treasurer for the
8benefit of the State.
9(Source: P.A. 83-541.)
 
10    (15 ILCS 520/22)  (from Ch. 130, par. 41)
11    Sec. 22. No securities, deposited with the State
12Treasurer, shall be removed from the State Treasury treasury
13except under the terms of this Act. The misappropriation or
14use of such securities, otherwise than as prescribed in this
15Act, shall be deemed a Class 3 felony. The State Treasurer
16shall be liable upon his official bond for any loss or
17misappropriation of securities so deposited.
18(Source: P.A. 77-2610.)
 
19    (15 ILCS 520/22.5)  (from Ch. 130, par. 41a)
20    (For force and effect of certain provisions, see Section
2190 of P.A. 94-79)
22    Sec. 22.5. Permitted investments. The State Treasurer may,
23with the approval of the Governor, invest and reinvest any
24State money in the State Treasury treasury which is not needed

 

 

SB0653 Engrossed- 22 -LRB102 13364 RJF 18708 b

1for current expenditures due or about to become due, in
2obligations of the United States government or its agencies or
3of National Mortgage Associations established by or under the
4National Housing Act, 12 U.S.C. 1701 et seq., or in mortgage
5participation certificates representing undivided interests in
6specified, first-lien conventional residential Illinois
7mortgages that are underwritten, insured, guaranteed, or
8purchased by the Federal Home Loan Mortgage Corporation or in
9Affordable Housing Program Trust Fund Bonds or Notes as
10defined in and issued pursuant to the Illinois Housing
11Development Act. All such obligations shall be considered as
12cash and may be delivered over as cash by a State Treasurer to
13his successor.
14    The State Treasurer may, with the approval of the
15Governor, purchase any state bonds with any money in the State
16Treasury that has been set aside and held for the payment of
17the principal of and interest on the bonds. The bonds shall be
18considered as cash and may be delivered over as cash by the
19State Treasurer to his successor.
20    The State Treasurer may, with the approval of the
21Governor, invest or reinvest any State money in the treasury
22that is not needed for current expenditure due or about to
23become due, or any money in the State Treasury that has been
24set aside and held for the payment of the principal of and the
25interest on any State bonds, in shares, withdrawable accounts,
26and investment certificates of savings and building and loan

 

 

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1associations, incorporated under the laws of this State or any
2other state or under the laws of the United States; provided,
3however, that investments may be made only in those savings
4and loan or building and loan associations the shares and
5withdrawable accounts or other forms of investment securities
6of which are insured by the Federal Deposit Insurance
7Corporation.
8    The State Treasurer may not invest State money in any
9savings and loan or building and loan association unless a
10commitment by the savings and loan (or building and loan)
11association, executed by the president or chief executive
12officer of that association, is submitted in the following
13form:
14        The .................. Savings and Loan (or Building
15    and Loan) Association pledges not to reject arbitrarily
16    mortgage loans for residential properties within any
17    specific part of the community served by the savings and
18    loan (or building and loan) association because of the
19    location of the property. The savings and loan (or
20    building and loan) association also pledges to make loans
21    available on low and moderate income residential property
22    throughout the community within the limits of its legal
23    restrictions and prudent financial practices.
24    The State Treasurer may, with the approval of the
25Governor, invest or reinvest any State money in the State
26Treasury treasury that is not needed for current expenditures

 

 

SB0653 Engrossed- 24 -LRB102 13364 RJF 18708 b

1due or about to become due, or any money in the State Treasury
2that has been set aside and held for the payment of the
3principal of and interest on any State bonds, in bonds issued
4by counties or municipal corporations of the State of
5Illinois.
6    The State Treasurer may invest or reinvest up to 5% of the
7College Savings Pool Administrative Trust Fund, the Illinois
8Public Treasurer Investment Pool (IPTIP) Administrative Trust
9Fund, and the State Treasurer's Administrative Fund that is
10not needed for current expenditures due or about to become
11due, in common or preferred stocks of publicly traded
12corporations, partnerships, or limited liability companies,
13organized in the United States, with assets exceeding
14$500,000,000 if: (i) the purchases do not exceed 1% of the
15corporation's or the limited liability company's outstanding
16common and preferred stock; (ii) no more than 10% of the total
17funds are invested in any one publicly traded corporation,
18partnership, or limited liability company; and (iii) the
19corporation or the limited liability company has not been
20placed on the list of restricted companies by the Illinois
21Investment Policy Board under Section 1-110.16 of the Illinois
22Pension Code.
23    The State Treasurer may, with the approval of the
24Governor, invest or reinvest any State money in the Treasury
25which is not needed for current expenditure, due or about to
26become due, or any money in the State Treasury which has been

 

 

SB0653 Engrossed- 25 -LRB102 13364 RJF 18708 b

1set aside and held for the payment of the principal of and the
2interest on any State bonds, in participations in loans, the
3principal of which participation is fully guaranteed by an
4agency or instrumentality of the United States government;
5provided, however, that such loan participations are
6represented by certificates issued only by banks which are
7incorporated under the laws of this State or any other state or
8under the laws of the United States, and such banks, but not
9the loan participation certificates, are insured by the
10Federal Deposit Insurance Corporation.
11    Whenever the total amount of vouchers presented to the
12Comptroller under Section 9 of the State Comptroller Act
13exceeds the funds available in the General Revenue Fund by
14$1,000,000,000 or more, then the State Treasurer may invest
15any State money in the State Treasury, other than money in the
16General Revenue Fund, Health Insurance Reserve Fund, Attorney
17General Court Ordered and Voluntary Compliance Payment
18Projects Fund, Attorney General Whistleblower Reward and
19Protection Fund, and Attorney General's State Projects and
20Court Ordered Distribution Fund, which is not needed for
21current expenditures, due or about to become due, or any money
22in the State Treasury which has been set aside and held for the
23payment of the principal of and the interest on any State bonds
24with the Office of the Comptroller in order to enable the
25Comptroller to pay outstanding vouchers. At any time, and from
26time to time outstanding, such investment shall not be greater

 

 

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1than $2,000,000,000. Such investment shall be deposited into
2the General Revenue Fund or Health Insurance Reserve Fund as
3determined by the Comptroller. Such investment shall be repaid
4by the Comptroller with an interest rate tied to the London
5Interbank Offered Rate (LIBOR) or the Federal Funds Rate or an
6equivalent market established variable rate, but in no case
7shall such interest rate exceed the lesser of the penalty rate
8established under the State Prompt Payment Act or the timely
9pay interest rate under Section 368a of the Illinois Insurance
10Code. The State Treasurer and the Comptroller shall enter into
11an intergovernmental agreement to establish procedures for
12such investments, which market established variable rate to
13which the interest rate for the investments should be tied,
14and other terms which the State Treasurer and Comptroller
15reasonably believe to be mutually beneficial concerning these
16investments by the State Treasurer. The State Treasurer and
17Comptroller shall also enter into a written agreement for each
18such investment that specifies the period of the investment,
19the payment interval, the interest rate to be paid, the funds
20in the State Treasury from which the State Treasurer will draw
21the investment, and other terms upon which the State Treasurer
22and Comptroller mutually agree. Such investment agreements
23shall be public records and the State Treasurer shall post the
24terms of all such investment agreements on the State
25Treasurer's official website. In compliance with the
26intergovernmental agreement, the Comptroller shall order and

 

 

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1the State Treasurer shall transfer amounts sufficient for the
2payment of principal and interest invested by the State
3Treasurer with the Office of the Comptroller under this
4paragraph from the General Revenue Fund or the Health
5Insurance Reserve Fund to the respective funds in the State
6Treasury from which the State Treasurer drew the investment.
7Public Act 100-1107 shall constitute an irrevocable and
8continuing authority for all amounts necessary for the payment
9of principal and interest on the investments made with the
10Office of the Comptroller by the State Treasurer under this
11paragraph, and the irrevocable and continuing authority for
12and direction to the Comptroller and State Treasurer to make
13the necessary transfers.
14    The State Treasurer may, with the approval of the
15Governor, invest or reinvest any State money in the State
16Treasury that is not needed for current expenditure, due or
17about to become due, or any money in the State Treasury that
18has been set aside and held for the payment of the principal of
19and the interest on any State bonds, in any of the following:
20        (1) Bonds, notes, certificates of indebtedness,
21    Treasury bills, or other securities now or hereafter
22    issued that are guaranteed by the full faith and credit of
23    the United States of America as to principal and interest.
24        (2) Bonds, notes, debentures, or other similar
25    obligations of the United States of America, its agencies,
26    and instrumentalities, or other obligations that are

 

 

SB0653 Engrossed- 28 -LRB102 13364 RJF 18708 b

1    issued or guaranteed by supranational entities; provided,
2    that at the time of investment, the entity has the United
3    States government as a shareholder.
4        (2.5) Bonds, notes, debentures, or other similar
5    obligations of a foreign government, other than the
6    Republic of the Sudan, that are guaranteed by the full
7    faith and credit of that government as to principal and
8    interest, but only if the foreign government has not
9    defaulted and has met its payment obligations in a timely
10    manner on all similar obligations for a period of at least
11    25 years immediately before the time of acquiring those
12    obligations.
13        (3) Interest-bearing savings accounts,
14    interest-bearing certificates of deposit,
15    interest-bearing time deposits, or any other investments
16    constituting direct obligations of any bank as defined by
17    the Illinois Banking Act.
18        (4) Interest-bearing accounts, certificates of
19    deposit, or any other investments constituting direct
20    obligations of any savings and loan associations
21    incorporated under the laws of this State or any other
22    state or under the laws of the United States.
23        (5) Dividend-bearing share accounts, share certificate
24    accounts, or class of share accounts of a credit union
25    chartered under the laws of this State or the laws of the
26    United States; provided, however, the principal office of

 

 

SB0653 Engrossed- 29 -LRB102 13364 RJF 18708 b

1    the credit union must be located within the State of
2    Illinois.
3        (6) Bankers' acceptances of banks whose senior
4    obligations are rated in the top 2 rating categories by 2
5    national rating agencies and maintain that rating during
6    the term of the investment and the bank has not been placed
7    on the list of restricted companies by the Illinois
8    Investment Policy Board under Section 1-110.16 of the
9    Illinois Pension Code.
10        (7) Short-term obligations of either corporations or
11    limited liability companies organized in the United States
12    with assets exceeding $500,000,000 if (i) the obligations
13    are rated at the time of purchase at one of the 3 highest
14    classifications established by at least 2 standard rating
15    services and mature not later than 270 days from the date
16    of purchase, (ii) the purchases do not exceed 10% of the
17    corporation's or the limited liability company's
18    outstanding obligations, (iii) no more than one-third of
19    the public agency's funds are invested in short-term
20    obligations of either corporations or limited liability
21    companies, and (iv) the corporation or the limited
22    liability company has not been placed on the list of
23    restricted companies by the Illinois Investment Policy
24    Board under Section 1-110.16 of the Illinois Pension Code.
25        (7.5) Obligations of either corporations or limited
26    liability companies organized in the United States, that

 

 

SB0653 Engrossed- 30 -LRB102 13364 RJF 18708 b

1    have a significant presence in this State, with assets
2    exceeding $500,000,000 if: (i) the obligations are rated
3    at the time of purchase at one of the 3 highest
4    classifications established by at least 2 standard rating
5    services and mature more than 270 days, but less than 10
6    years, from the date of purchase; (ii) the purchases do
7    not exceed 10% of the corporation's or the limited
8    liability company's outstanding obligations; (iii) no more
9    than one-third of the public agency's funds are invested
10    in such obligations of corporations or limited liability
11    companies; and (iv) the corporation or the limited
12    liability company has not been placed on the list of
13    restricted companies by the Illinois Investment Policy
14    Board under Section 1-110.16 of the Illinois Pension Code.
15        (8) Money market mutual funds registered under the
16    Investment Company Act of 1940.
17        (9) The Public Treasurers' Investment Pool created
18    under Section 17 of the State Treasurer Act or in a fund
19    managed, operated, and administered by a bank.
20        (10) Repurchase agreements of government securities
21    having the meaning set out in the Government Securities
22    Act of 1986, as now or hereafter amended or succeeded,
23    subject to the provisions of that Act and the regulations
24    issued thereunder.
25        (11) Investments made in accordance with the
26    Technology Development Act.

 

 

SB0653 Engrossed- 31 -LRB102 13364 RJF 18708 b

1        (12) Investments made in accordance with the Student
2    Investment Account Act.
3        (13) Investments made in accordance with any other law
4    that authorizes the State Treasurer to invest or deposit
5    funds.
6    For purposes of this Section, "agencies" of the United
7States Government includes:
8        (i) the federal land banks, federal intermediate
9    credit banks, banks for cooperatives, federal farm credit
10    banks, or any other entity authorized to issue debt
11    obligations under the Farm Credit Act of 1971 (12 U.S.C.
12    2001 et seq.) and Acts amendatory thereto;
13        (ii) the federal home loan banks and the federal home
14    loan mortgage corporation;
15        (iii) the Commodity Credit Corporation; and
16        (iv) any other agency created by Act of Congress.
17    The State Treasurer may, with the approval of the
18Governor, lend any securities acquired under this Act.
19However, securities may be lent under this Section only in
20accordance with Federal Financial Institution Examination
21Council guidelines and only if the securities are
22collateralized at a level sufficient to assure the safety of
23the securities, taking into account market value fluctuation.
24The securities may be collateralized by cash or collateral
25acceptable under Sections 11 and 11.1.
26(Source: P.A. 100-1107, eff. 8-27-18; 101-81, eff. 7-12-19;

 

 

SB0653 Engrossed- 32 -LRB102 13364 RJF 18708 b

1101-206, eff. 8-2-19; 101-586, eff. 8-26-19; revised 9-25-19.)
 
2    (15 ILCS 520/22.8)
3    Sec. 22.8. The State Treasurer shall develop, publish, and
4implement an investment policy covering the management of all
5State funds under his or her control. The investment policy
6shall be published each year in the State Treasurers' annual
7report as prescribed in Section 15 of the State Treasurer Act
8(15 ILCS 505/15). The policy shall also be published at least
9once each year in at least one newspaper of general
10circulation in both Springfield and Chicago and published on
11the State Treasurer's official website. Any such investment
12policy adopted by the State Treasurer shall be reviewed, and
13updated if necessary, within 90 days following the
14installation of a new State Treasurer.
15    The investment policy shall include material, relevant,
16and decision-useful sustainability factors to be considered by
17the State Treasurer in evaluating investment decisions,
18including, but not limited to: (1) corporate governance and
19leadership factors; (2) environmental factors; (3) social
20capital factors; (4) human capital factors; and (5) business
21model and innovation factors, as provided under the Illinois
22Sustainable Investing.
23(Source: P.A. 101-473, eff. 1-1-20.)
 
24    (15 ILCS 520/23)  (from Ch. 130, par. 42)

 

 

SB0653 Engrossed- 33 -LRB102 13364 RJF 18708 b

1    Sec. 23. Any State official or other person who willfully
2wilfully violates any provision of this Act, for which a
3penalty is not otherwise prescribed, or who willfully wilfully
4neglects or refuses to perform any duty imposed upon such
5person by the terms of this Act, shall be guilty of a Class 4
6felony.
7(Source: P.A. 77-2830.)
 
8    (15 ILCS 520/1.2 rep.)
9    (15 ILCS 520/3 rep.)
10    (15 ILCS 520/4 rep.)
11    (15 ILCS 520/5 rep.)
12    (15 ILCS 520/6 rep.)
13    (15 ILCS 520/13 rep.)
14    (15 ILCS 520/16 rep.)
15    Section 15. The Deposit of State Moneys Act is amended by
16repealing Sections 1.2, 3, 4, 5, 6, 13, and 16.
 
17    Section 20. The Public Funds Deposit Act is amended by
18changing Sections 1 and 2 as follows:
 
19    (30 ILCS 225/1)  (from Ch. 102, par. 34)
20    Sec. 1. Deposits. Any treasurer or other custodian of
21public funds may deposit such funds in a savings and loan
22association, savings bank, or State or national bank in this
23State, or deposit those funds into demand deposit accounts in

 

 

SB0653 Engrossed- 34 -LRB102 13364 RJF 18708 b

1accordance with Section 6.5 of the Public Funds Investment
2Act. When such deposits become collected funds and are not
3needed for immediate disbursement, they shall be invested
4within 2 working days at prevailing rates or better. The
5treasurer or other custodian of public funds may require such
6bank, savings bank, or savings and loan association to deposit
7with him or her securities guaranteed by agencies and
8instrumentalities of the federal government equal in market
9value to the amount by which the funds deposited exceed the
10federally insured amount. Any treasurer or other custodian of
11public funds may accept as security for public funds deposited
12in such bank, savings bank, or savings and loan association
13any securities or other eligible collateral authorized by
14Sections 11 and 11.1 of the Deposit of State Moneys Act (15
15ILCS 520/11 and 11.1) or Section 6 of the Public Funds
16Investment Act (30 ILCS 235/6). Such treasurer or other
17custodian is authorized to enter into an agreement with any
18such bank, savings bank, or savings and loan association, with
19any federally insured financial institution or trust company,
20or with any agency of the U.S. government relating to the
21deposit of such securities. Any such treasurer or other
22custodian shall be discharged from responsibility for any
23funds for which securities are so deposited with him or her,
24and the funds for which securities are so deposited shall not
25be subject to any otherwise applicable limitation as to
26amount.

 

 

SB0653 Engrossed- 35 -LRB102 13364 RJF 18708 b

1    No bank, savings bank, or savings and loan association
2shall receive public funds as permitted by this Section,
3unless it has complied with the requirements established
4pursuant to Section 6 of the Public Funds Investment Act or is
5otherwise exempt from compliance as authorized by Section 6.5
6of that Act.
7(Source: P.A. 98-703, eff. 7-7-14.)
 
8    (30 ILCS 225/2)  (from Ch. 102, par. 35)
9    Sec. 2. Nothing in this Act shall be construed to preclude
10the deposit of public funds in accordance with any other Act
11applicable thereto or to subject any treasurer or other
12custodian to any liability to which he would not be subject in
13the absence of this Act. This Act does not apply to the
14Illinois State Treasurer. Deposit of State money by the
15Illinois State Treasurer shall be governed by the Deposit of
16State Moneys Act.
17(Source: Laws 1963, p. 1797.)
 
18    Section 25. The Public Funds Investment Act is amended by
19changing Section 1 as follows:
 
20    (30 ILCS 235/1)  (from Ch. 85, par. 901)
21    Sec. 1. The words "public funds", as used in this Act, mean
22current operating funds, special funds, interest and sinking
23funds, and funds of any kind or character belonging to or in

 

 

SB0653 Engrossed- 36 -LRB102 13364 RJF 18708 b

1the custody of any public agency.
2    The words "public agency", as used in this Act, mean the
3State of Illinois, the various counties, townships, cities,
4towns, villages, school districts, educational service
5regions, special road districts, public water supply
6districts, fire protection districts, drainage districts,
7levee districts, sewer districts, housing authorities, the
8Illinois Bank Examiners' Education Foundation, the Chicago
9Park District, and all other political corporations or
10subdivisions of the State of Illinois, now or hereafter
11created, whether herein specifically mentioned or not. This
12Act does not apply to the Illinois Prepaid Tuition Trust Fund,
13private funds collected by the Illinois Conservation
14Foundation, or pension funds or retirement systems established
15under the Illinois Pension Code, except as otherwise provided
16in that Code. This Act does not apply to the Illinois State
17Treasurer, whose investment of State funds shall be governed
18by the Deposit of State Moneys Act.
19    The words "governmental unit", as used in this Act, have
20the same meaning as in the Local Government Debt Reform Act.
21(Source: P.A. 98-297, eff. 1-1-14.)
 
22    Section 99. Effective date. This Act takes effect upon
23becoming law.

 

 

SB0653 Engrossed- 37 -LRB102 13364 RJF 18708 b

1 INDEX
2 Statutes amended in order of appearance
3    15 ILCS 505/30
4    15 ILCS 520/1from Ch. 130, par. 20
5    15 ILCS 520/1.1from Ch. 130, par. 20.1
6    15 ILCS 520/2from Ch. 130, par. 21
7    15 ILCS 520/7from Ch. 130, par. 26
8    15 ILCS 520/8from Ch. 130, par. 27
9    15 ILCS 520/9from Ch. 130, par. 28
10    15 ILCS 520/10from Ch. 130, par. 29
11    15 ILCS 520/11from Ch. 130, par. 30
12    15 ILCS 520/12from Ch. 130, par. 31
13    15 ILCS 520/14from Ch. 130, par. 33
14    15 ILCS 520/15from Ch. 130, par. 34
15    15 ILCS 520/17from Ch. 130, par. 36
16    15 ILCS 520/18from Ch. 130, par. 37
17    15 ILCS 520/19from Ch. 130, par. 38
18    15 ILCS 520/20from Ch. 130, par. 39
19    15 ILCS 520/22from Ch. 130, par. 41
20    15 ILCS 520/22.5from Ch. 130, par. 41a
21    15 ILCS 520/22.8
22    15 ILCS 520/23from Ch. 130, par. 42
23    15 ILCS 520/1.2 rep.
24    15 ILCS 520/3 rep.
25    15 ILCS 520/4 rep.

 

 

SB0653 Engrossed- 38 -LRB102 13364 RJF 18708 b

1    15 ILCS 520/5 rep.
2    15 ILCS 520/6 rep.
3    15 ILCS 520/11.1 rep.
4    15 ILCS 520/13 rep.
5    15 ILCS 520/16 rep.
6    30 ILCS 225/1from Ch. 102, par. 34
7    30 ILCS 225/2from Ch. 102, par. 35
8    30 ILCS 235/1from Ch. 85, par. 901