Full Text of HB0277 98th General Assembly
HB0277ham001 98TH GENERAL ASSEMBLY | Rep. Mary E. Flowers Filed: 3/25/2013
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| 1 | | AMENDMENT TO HOUSE BILL 277
| 2 | | AMENDMENT NO. ______. Amend House Bill 277 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Public Funds Investment Act is amended by | 5 | | changing Section 2.5 as follows:
| 6 | | (30 ILCS 235/2.5)
| 7 | | Sec. 2.5. Investment policy.
| 8 | | (a) Investment of public funds by a public
agency shall be
| 9 | | governed by a written investment policy adopted by the
public
| 10 | | agency. The level of detail and complexity of the investment | 11 | | policy shall be
appropriate to the
nature of the funds, the | 12 | | purpose for the funds, and the amount of the public
funds | 13 | | within the
investment portfolio. The policy shall address | 14 | | safety of principal, liquidity
of funds, and return
on | 15 | | investment and shall require that the investment portfolio be | 16 | | structured in
such manner as to
provide sufficient liquidity to |
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| 1 | | pay obligations as they come due. In addition,
the investment
| 2 | | policy shall include or address the following:
| 3 | | (1) a listing of authorized investments;
| 4 | | (2) a rule, such as the "prudent person rule", | 5 | | establishing the standard
of care that must
be maintained | 6 | | by the persons investing the public funds;
| 7 | | (3) investment guidelines that are appropriate to the | 8 | | nature of the
funds, the
purpose for the funds, and the | 9 | | amount of the public funds within the investment
portfolio;
| 10 | | (4) a policy regarding diversification of the | 11 | | investment portfolio
that is
appropriate to the nature of | 12 | | the funds, the purpose for the funds, and the
amount of the | 13 | | public
funds within the investment portfolio;
| 14 | | (5) guidelines regarding collateral requirements, if | 15 | | any, for the
deposit of public funds in a financial | 16 | | institution made pursuant to this Act,
and, if applicable, | 17 | | guidelines for contractual arrangements for the custody | 18 | | and
safekeeping of that collateral;
| 19 | | (6) a policy regarding the establishment of a system of | 20 | | internal controls
and written operational
procedures
| 21 | | designed to prevent losses of funds that might arise from | 22 | | fraud, employee
error, misrepresentation by third parties, | 23 | | or imprudent actions by employees of
the entity;
| 24 | | (7) identification of the chief investment officer who
| 25 | | is responsible for establishing the internal controls and
| 26 | | written procedures for
the operation of the investment |
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| 1 | | program;
| 2 | | (8) performance measures that are appropriate to the | 3 | | nature of the funds,
the purpose
for the funds, and the | 4 | | amount of the public funds within the investment
portfolio;
| 5 | | (9) a policy regarding appropriate periodic review of | 6 | | the investment
portfolio, its
effectiveness in meeting the | 7 | | public agency's needs for safety, liquidity,
rate of | 8 | | return, and
diversification, and its general performance;
| 9 | | (10) a policy establishing at least quarterly written | 10 | | reports of
investment
activities by the
public agency's | 11 | | chief financial officer for submission to the governing | 12 | | body
and chief executive
officer of the public agency. The | 13 | | reports shall include information regarding
securities in | 14 | | the
portfolio by class or
type, book value, income earned, | 15 | | and market value as of the report date;
| 16 | | (11) a policy regarding the selection of investment | 17 | | advisors, money
managers, and financial institutions; and
| 18 | | (12) a policy regarding ethics and conflicts of | 19 | | interest ; and .
| 20 | | (13) in the case of the State, a policy requiring the | 21 | | investment of (i) at least 10% of all public funds that are | 22 | | in the State's custody with insured depository | 23 | | institutions having an outstanding record of meeting | 24 | | community credit needs, as defined in the federal
Community | 25 | | Reinvestment Act of 1977, and (ii) at least another 10% of | 26 | | all public funds that are in the State's custody with |
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| 1 | | insured depository institutions having a satisfactory | 2 | | record of meeting community credit needs, as defined in the | 3 | | federal
Community Reinvestment Act of 1977. | 4 | | (b) For purposes of the State or a county, the investment | 5 | | policy shall be
adopted by the elected treasurer and presented | 6 | | to the chief executive officer
and the governing body. For | 7 | | purposes of any other public agency, the
investment policy | 8 | | shall be adopted by the governing body of the public agency.
| 9 | | (c) The investment policy shall be made available to the | 10 | | public at the main
administrative office of the public agency.
| 11 | | (d) The written investment policy required under this | 12 | | Section shall be
developed and implemented by
January 1, 2000.
| 13 | | (Source: P.A. 90-688, eff. 7-31-98.)".
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