HB6194 97TH GENERAL ASSEMBLY

LRB097 21619 PJG 69875 b

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.

A BILL FOR

AN ACT concerning local government.

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 and 3-10011 as follows:

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

Sec. 3-10009. Deposit of public funds.

(a) 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, savings and loan associations, savings banks, or credit unions in which the funds and other public moneys in the custody of the county treasurer may be kept. In addition to the treasurer, a co-signer shall be required on all county accounts. The co-signer shall be designated by the county board by resolution. When and when a bank, savings and loan association, savings bank, 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, savings and loan association, savings bank, 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 "An Act relating to certain investments of public funds by public agencies", approved July 23, 1943, as now or hereafter amended.

(b) In addition to any other investments or deposits authorized under this Code, counties are authorized to invest the funds and public moneys in the custody of the County Treasurer in accordance with the Public Funds Investment Act.

(Source: P.A. 97-129, eff. 7-14-11.)

(55 ILCS 5/3-10011) (from Ch. 34, par. 3-10011)

Sec. 3-10011. Inspection of books of account.

(a) Said books of account shall be free to the inspection of all persons wishing to examine the same. The county board shall review these books of account on a semi-annual basis.

(b) The county treasurer shall make available to the county board any Entity Identification Numbers assigned to the county. The county board shall review the payments made to the county from the State through the Vendor Payments portal on the State Comptroller's website on a semi-annual basis.

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

Section 10. The Illinois Municipal Code is amended by changing Sections 3.1-35-40, 3.1-35-45, 3.1-35-50, 3.1-35-60, and 3.1-35-65 as follows:

(65 ILCS 5/3.1-35-40) (from Ch. 24, par. 3.1-35-40)

Sec. 3.1-35-40. Treasurer; duties.

(a) The municipal treasurer shall receive all money belonging to the municipality and shall keep the treasurer's books and accounts in the manner prescribed by ordinance. These books and accounts shall always be subject to the inspection of any member of the corporate authorities. The corporate authorities shall inspect these books and accounts on a semi-annual basis. The municipality may, however, by ordinance designate a person or institution which, as bond trustee, shall receive from the county collector amounts payable to the municipality as taxes levied pursuant to a bond issuance.

(b) The treasurer shall keep a separate account of each fund or appropriation and the debits and credits belonging to the fund or appropriation.

(c) The treasurer shall give every person paying money into the treasury a receipt, specifying the date of payment and upon what account paid. The treasurer shall file copies of these receipts with the clerk, with the treasurer's monthly reports. If the treasurer has possession of money properly appropriated to the payment of any warrant lawfully drawn upon the treasurer, the treasurer shall pay the money specified in the warrant to the person designated by the warrant.

(d) The municipal treasurer shall make available to the corporate authorities any Entity Identification Numbers assigned to the municipality. The corporate authorities shall review the payments made to the municipality from the State through the Vendor Payments portal on the State Comptroller's website on a semi-annual basis.

(Source: P.A. 87-1119.)

(65 ILCS 5/3.1-35-45) (from Ch. 24, par. 3.1-35-45)

Sec. 3.1-35-45. Treasurer; reports. At the end of every month, and oftener if required by the corporate authorities, the municipal treasurer shall render an account under oath to the corporate authorities, or to an officer designated by ordinance, showing the state of the treasury at the date of the account and the balance of money in the treasury. The treasurer shall accompany the account with a statement of all money received into the treasury and on what account, together with all warrants redeemed and paid by the treasurer. On the day the treasurer renders an account, these warrants, with all vouchers held by the treasurer, shall be delivered to the municipal clerk and filed, together with the account, in the clerk's office. All paid warrants shall be marked "paid". The treasurer shall keep a register of all warrants, which shall describe each warrant, showing its date, amount, and number, the fund from which paid, the name of the person to whom paid, and when paid. The corporate authorities shall review this account statement on a monthly basis after it is filed with the clerk's office.

(Source: P.A. 87-1119.)

(65 ILCS 5/3.1-35-50) (from Ch. 24, par. 3.1-35-50)

Sec. 3.1-35-50. Treasurer; deposit of funds.

(a) The municipal treasurer may be required to keep all funds and money in the treasurer's custody belonging to the municipality in places of deposit designated by ordinance. The When requested by the municipal treasurer, the corporate authorities shall designate one or more banks or savings and loan associations in which may be kept the funds and money of the municipality in the custody of the treasurer. In addition to the treasurer, a co-signer shall be required on all municipal accounts. The co-signer shall be designated by the city council or village board by resolution. When a bank or savings and loan association has been designated as a depository, it shall continue as a depository until 10 days have elapsed after a new depository is designated and has qualified by furnishing the statements of resources and liabilities as required by this Section. When a new depository is designated, the corporate authorities shall notify the sureties of the municipal treasurer of that fact in writing at least 5 days before the transfer of funds. The treasurer shall be discharged from responsibility for all funds or money that the treasurer deposits in a designated bank or savings and loan association while the funds and money are so deposited.

(b) The municipal treasurer may require any bank or savings and loan association to deposit with the treasurer securities or mortgages that have a market value at least equal to the amount of the funds or moneys of the municipality deposited with the bank or savings and loan association that exceeds the insurance limitation provided by the Federal Deposit Insurance Corporation or the Federal Savings and Loan Insurance Corporation.

(c) The municipal treasurer may enter into agreements of any definite or indefinite term regarding the deposit, redeposit, investment, reinvestment, or withdrawal of municipal funds.

(d) Notwithstanding any other provision of this Act or any other law, each official custodian of municipal funds, including, without limitation, each municipal treasurer or finance director or each person properly designated as the official custodian for municipal funds, including, without limitation, each person properly designated as official custodian for funds held by an intergovernmental risk management entity, self-insurance pool, waste management agency, or other intergovernmental entity composed solely of participating municipalities, is permitted to:

(i) combine moneys from more than one fund of a single municipality, risk management entity, self-insurance pool, or other intergovernmental entity composed solely of participating municipalities for the purpose of investing such moneys;

(ii) join with any other official custodians or treasurers of municipal, intergovernmental risk management entity, self-insurance pool, waste management agency, or other intergovernmental entity composed solely of participating municipalities for the purpose of jointly investing the funds of which the official custodians or treasurers have custody; and

(iii) enter into agreements of any definite or indefinite term regarding the redeposit, investment, or withdrawal of municipal, risk management entity, self-insurance agency, waste management agency, or other intergovernmental entity funds.

When funds are combined for investment purposes as authorized in this Section, the moneys combined for those purposes shall be accounted for separately in all respects, and the earnings from such investment shall be separately and individually computed, recorded, and credited to the fund, municipality, intergovernmental risk management entity, self-insurance pool, waste management agency, or other intergovernmental entity, as the case may be, for which the investment was acquired.

Joint investments shall be made only in investments authorized by law for investment of municipal funds. The grant of authority contained in this subsection is cumulative, supplemental, and in addition to all other power or authority granted by any other law and shall not be construed as a limitation of any power and authority otherwise granted.

(e) No bank or savings and loan association shall receive public funds as permitted by this Section unless it has complied with the requirements established by Section 6 of the Public Funds Investment Act.

(Source: P.A. 89-592, eff. 8-1-96.)

(65 ILCS 5/3.1-35-60) (from Ch. 24, par. 3.1-35-60)

Sec. 3.1-35-60. Treasurer; receipts and expenditures. The municipal treasurer shall report to the corporate authorities on a semi-annual basis , as often as they require, a full and detailed account of all receipts and expenditures of the municipality, as shown by the treasurer's books, up to the time of the report.

(Source: P.A. 87-1119.)

(65 ILCS 5/3.1-35-65) (from Ch. 24, par. 3.1-35-65)

Sec. 3.1-35-65. Treasurer; annual accounts.

(a) Within 6 months after the end of each fiscal year, the treasurer of each municipality having a population of less than 500,000, as determined by the last preceding federal census, shall annually prepare and file with the clerk of the municipality an account of moneys received and expenditures incurred during the preceding fiscal year as specified in this Section. The treasurer shall show in the account:

(1) All moneys received by the municipality, indicating the total amounts, in the aggregate, received in each account of the municipality, with a general statement concerning the source of receipts. In this paragraph, the term "account" does not mean each individual taxpayer, householder, licensee, utility user, or other persons whose payments to the municipality are credited to a general account.

(2) Except as provided in paragraph (3) of this subsection (a), all moneys paid out by the municipality where the total amount paid during the fiscal year exceeds $2,500 in the aggregate, giving the name of each person to whom moneys were paid and the total paid to each person.

(3) All moneys paid out by the municipality as compensation for personal services, giving the name of each person to whom moneys were paid and the total amount paid to each person from each account, except that the treasurer may elect to report the compensation for personal services of all personnel by name, listing each employee in one of the following categories:

(A) under $25,000.00;

(B) $25,000.00 to $49,999.99;

(C) $50,000.00 to $74,999.99;

(D) $75,000.00 to $99,999.99;

(E) $100,000.00 to $124,999.99; or

(F) $125,000.00 and over.

(4) A summary statement of operations for all funds and account groups of the municipality, as excerpted from the annual financial report as filed with the appropriate State agency.

(b) Upon receipt of the account from the municipal treasurer, the municipal clerk shall publish the account at least once in one or more newspapers published in the municipality or, if no newspaper is published in the municipality, then in one or more newspapers having a general circulation within the municipality. In municipalities with a population of less than 500 in which no newspaper is published, however, publication may be made by posting a copy of the account in 3 prominent places within the municipality.

(c) Upon receipt of the account from the municipal treasurer, the municipal clerk shall provide all corporate authorities with a copy of this account, that they shall be required to review within 30 days.

(Source: P.A. 92-354, eff. 8-15-01.)

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