HB0512 94TH GENERAL ASSEMBLY

LRB094 05081 AJO 35117 b

94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
HB0512

Introduced 1/27/2005, by Rep. Patrick J Verschoore

SYNOPSIS AS INTRODUCED:

55 ILCS 5/3-10009	from Ch. 34, par. 3-10009
55 ILCS 5/3-11002	from Ch. 34, par. 3-11002
55 ILCS 5/3-11003	from Ch. 34, par. 3-11003
55 ILCS 5/3-11004	from Ch. 34, par. 3-11004
55 ILCS 5/3-11006	from Ch. 34, par. 3-11006
55 ILCS 5/3-11007	from Ch. 34, par. 3-11007
55 ILCS 5/3-11009	from Ch. 34, par. 3-11009
55 ILCS 5/3-11010	from Ch. 34, par. 3-11010
55 ILCS 5/3-11011	from Ch. 34, par. 3-11011
55 ILCS 5/3-11013	from Ch. 34, par. 3-11013
55 ILCS 5/3-11018	from Ch. 34, par. 3-11018

Amends the Counties Code to provide that a county may deposit public moneys in a credit union, provided that the credit union complies with the Public Funds Investment Act; applies to counties having a population under 150,000 and counties having a population over 150,000. Substitutes Public Funds Investment Act reference for an outdated reference. Makes related changes. Effective immediately.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning counties.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Counties Code is amended by changing Sections 3-10009, 3-11002, 3-11003, 3-11004, 3-11006, 3-11007, 3-11009, 3-11010, 3-11011, 3-11013, and 3-11018 as follows:

(55 ILCS 5/3-10009) (from Ch. 34, par. 3-10009)

Sec. 3-10009. Deposit of public funds. In counties having a population of less than 150,000 the county board, when requested by the county treasurer, shall designate one or more banks, or savings and loan associations, or credit unions in which the funds and other public moneys in the custody of the county treasurer may be kept and when a bank, or savings and loan association, or credit union has been designated as a depository it shall continue as such until 10 days have elapsed after a new depository is designated and has qualified by furnishing the statements of resources and liabilities as is required by this Section. When a new depository is designated, the county board shall notify the sureties of the county treasurer of that fact, in writing, at least 5 days before the transfer of funds. The county treasurer shall be discharged from responsibility for all funds and moneys which he deposits in a depository so designated while such funds and moneys are so deposited.

No bank, or savings and loan association, or credit union shall receive public funds as permitted by this Section, unless it has complied with the requirements established pursuant to Section 6 of the Public Funds Investment Act "An Act relating to certain investments of public funds by public agencies", approved July 23, 1943, as now or hereafter amended.

(Source: P.A. 86-962.)

(55 ILCS 5/3-11002) (from Ch. 34, par. 3-11002)

Sec. 3-11002. Designation of depositories. In counties having a population of more than 150,000 the county board, when requested by the County Treasurer, shall designate one or more banks, or savings and loan associations, or credit unions in which the funds and other public moneys in the custody of the County Treasurer may be kept and when a bank, or savings and loan association, or credit union has been designated as a depository it shall continue as such until 10 days have elapsed after a new depository is designated and has qualified by furnishing the statements of resources and liabilities as is required by this Section. When a new depository is designated, the county board shall notify the sureties of the County Treasurer of that fact, in writing, at least 5 days before the transfer of funds. The County Treasurer shall be discharged from responsibility for all funds and moneys which he deposits in a depository so designated while such funds and moneys are so deposited.

No bank, or savings and loan association, or credit union shall receive public funds as permitted by this Section, unless it has complied with the requirements established pursuant to Section 6 of the Public Funds Investment Act "An Act relating to certain investments of public funds by public agencies", approved July 23, 1943, as now or hereafter amended.

(Source: P.A. 86-962.)

(55 ILCS 5/3-11003) (from Ch. 34, par. 3-11003)

Sec. 3-11003. Classification of funds. For the purpose of establishing a control over the withdrawal, in accordance with the provisions of this Division, of all county moneys deposited in any bank, or savings and loan association, or credit union, as hereinafter required, such moneys are hereby classified as follows:

Class A. All taxes and special assessments received by the county treasurer in his capacity as ex officio county collector or ex officio town collector, and held by him pending distribution to the several governments or authorities entitled to receive the same, shall be known as "Class A" funds.

Class B. All other moneys belonging to the State of Illinois or to any political or corporate subdivision thereof, except the county, shall be known as "Class B" funds.

Class C. All moneys belonging to the county in its corporate capacity shall be known as "Class C" funds.

Class D. All other county moneys as defined in Section 3-11001 shall be known as "Class D" funds.

(Source: P.A. 86-962.)

(55 ILCS 5/3-11004) (from Ch. 34, par. 3-11004)

Sec. 3-11004. Deposits by county treasurer. It shall be the duty of the county treasurer of such county to deposit daily, in separate accounts in accordance with the classification set forth in Section 3-11003, to the credit of the county treasurer of such county, in one or more banks, or savings and loan associations, or credit unions as shall have been selected and designated under the terms of this Division and as shall have complied with the requirements thereof, all county moneys as defined in Section 3-11001, received by him during banking hours, and also all such county moneys as he may have received on the day previous after banking hours.

(Source: P.A. 86-962.)

(55 ILCS 5/3-11006) (from Ch. 34, par. 3-11006)

Sec. 3-11006. Investment of county moneys; release of private funds in custody of county treasurer. All county moneys shall be invested in one or more of the following: (a) interest-bearing savings accounts, interest-bearing certificates of deposit or interest-bearing time deposits constituting direct obligations of any bank as shall have been selected and designated under the terms of this Division and as shall have complied with the requirements thereof; (b) shares or other forms of securities legally issuable by savings and loan associations incorporated under the laws of this State or any other state or under the laws of the United States, provided such shares or securities are insured by the Federal Savings and Loan Insurance Corporation; (c) shares or other forms of securities legally issuable by credit unions incorporated under the laws of this State or any other state or under the laws of the United States, provided such shares or securities are insured by the National Credit Union Administration; (d) bonds, notes, certificates of indebtedness, treasury bills or other securities now or hereafter issued, which are guaranteed by the full faith and credit of the United States of America as to principal and interest; (e) (d) short term discount obligations of the Federal National Mortgage Association. The expressed judgment of the county treasurer as to the time when any county moneys will be required for expenditure or be redeemable is final and conclusive. Privately owned funds held in the custody of a county treasurer must be released to the appropriate party at the earliest reasonable time, but in no case exceeding 31 days, after the private party becomes entitled to the receipt of them.

(Source: P.A. 86-962.)

(55 ILCS 5/3-11007) (from Ch. 34, par. 3-11007)

Sec. 3-11007. Monthly report of investments and deposits. On the twenty-eighth day of each month the county treasurer shall publish a report disclosing the investments and deposits of county moneys as of the first day of that month. The report shall list, under the name of each bank, or savings and loan association, or credit union in which the county treasurer maintains an account or investment, each separate account or investment maintained in that institution, the amount of each such account or investment, the rate of interest of each such account or investment, and the term of maturity of each such account or investment. The report shall also disclose the total cost and average rate of interest of all other investments of county moneys. A copy of the report shall be transmitted to each member of the county board, and the report shall be a public record.

(Source: P.A. 86-962.)

(55 ILCS 5/3-11009) (from Ch. 34, par. 3-11009)

Sec. 3-11009. Petty cash fund. For the purpose of enabling the county treasurer to pay in cash such warrants and other demands as may be presented to him for payment in cash, he is hereby authorized to withhold from the daily deposit of funds required of him under Section 3-11004, or to withdraw from the one or more banks, or savings and loan associations, or credit unions holding such county moneys on deposit, upon check or draft payable to his own order as county treasurer, such amounts as will enable him to maintain a petty cash fund sufficient to meet the daily demand for the purpose herein indicated: Provided, however, that the amount of said petty cash fund shall at no time exceed the sum of $5,000 in counties having fewer than 1,000,000 inhabitants or the sum of $200,000 in counties having 1,000,000 or more inhabitants. The county treasurer shall keep proper records of such petty cash fund, showing the amounts so withheld or withdrawn by him daily and the amounts paid out by him in cash from day to day. Such records shall be open to the inspection of all persons wishing to examine the same.

(Source: P.A. 86-962.)

(55 ILCS 5/3-11010) (from Ch. 34, par. 3-11010)

Sec. 3-11010. Equalization and transfer of deposits. For the purpose of facilitating the equalization or apportionment of the amount of the balances on deposit with the several depositories and the speedy transfer of money from one depository to another in case of necessity, the county treasurer is hereby authorized to draw checks or drafts against any deposit made by him under the terms of this Division. Each draft or check so drawn shall be payable to the order of the county treasurer, and shall indicate upon its face that it is drawn only for deposit in a bank, or savings and loan association, or credit union authorized under the provisions of this Division to receive county moneys.

(Source: P.A. 86-962.)

(55 ILCS 5/3-11011) (from Ch. 34, par. 3-11011)

Sec. 3-11011. Designation of active depository. Of the banks, or savings and loan associations, or credit unions which may have been so designated as depositories, one shall be designated from time to time by the county treasurer as the active bank, depository, or savings and loan association, or credit union for a period of not more than one month at a time. The county board shall have power, if it sees fit, to require that no bank, or savings and loan association, or credit union whose aggregate capital stock and surplus is less than a certain specified amount shall be named as the active bank, or savings and loan association, or credit union. During such period the county treasurer shall draw all of his checks to pay warrants and other demands drawn upon him upon such active bank, or savings and loan association, or credit union: Provided, however, that the county treasurer shall have power to withdraw county moneys from any depository for the purposes stated in Section 3-11010: And, provided, further, that during such period drafts and checks against deposit of funds designated by Section 3-11003 hereof as "Class A" funds and "Class B" funds may be drawn upon other than the active bank, or savings and loan association, or credit union.

(Source: P.A. 86-962.)

(55 ILCS 5/3-11013) (from Ch. 34, par. 3-11013)

Sec. 3-11013. Annual report of interest received. The county treasurer shall make to the county clerk an annual report, under oath, of all interest received by the county treasurer or credited to the county treasurer by any bank, or savings and loan association, or credit union, in which is deposited any county moneys, and at the time of making such report the county treasurer shall pay into the county treasury for the benefit of the county the aggregate amount of all interest so received by or credited to him, as shown by said report. Such report shall show the name of each bank, or depository, savings and loan association, or credit union where any county moneys are deposited.

(Source: P.A. 86-962.)

(55 ILCS 5/3-11018) (from Ch. 34, par. 3-11018)

Sec. 3-11018. Payment of interest or fees on deposits. No bank, or savings and loan association, or credit union holding county moneys deposited therewith by the county treasurer in accordance with the provisions in this Division, or otherwise, and no officer of any such bank, or savings and loan association, or credit union, or other person, shall pay to, withhold for the benefit of, or contract in any manner for the payment to such county treasurer, or to any other person for him, of any interest or other fee, perquisite or emolument, on account of the deposit of such county moneys, except such interest as shall be paid to such county treasurer for the benefit of the county.

(Source: P.A. 86-962.)

Section 99. Effective date. This Act takes effect upon becoming law.