Full Text of SB2864 99th General Assembly
SB2864ham003 99TH GENERAL ASSEMBLY | Rep. Al Riley Filed: 5/9/2016
| | 09900SB2864ham003 | | LRB099 20194 RJF 48398 a |
|
| 1 | | AMENDMENT TO SENATE BILL 2864
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 2864, AS AMENDED, | 3 | | by replacing everything after the enacting clause with the | 4 | | following:
| 5 | | "Section 5. The State Treasurer Act is amended by changing | 6 | | Section 17 as follows:
| 7 | | (15 ILCS 505/17) (from Ch. 130, par. 17)
| 8 | | Sec. 17.
The State Treasurer may establish and administer | 9 | | both a Public
Treasurers'
Investment Pool and an E-Pay program | 10 | | to supplement
and enhance both the investment opportunities and | 11 | | the secure electronic payment options otherwise available to | 12 | | other
custodians
of public funds for public agencies
in this | 13 | | State.
| 14 | | The Treasurer, in administering the Public Treasurers' | 15 | | Investment Pool,
may receive public
funds paid into the pool by | 16 | | any other custodian of such funds and may serve
as the fiscal |
| | | 09900SB2864ham003 | - 2 - | LRB099 20194 RJF 48398 a |
|
| 1 | | agent of
that custodian of public funds for the purpose of | 2 | | holding and investing those
funds.
| 3 | | The Treasurer may invest the public funds constituting the | 4 | | Public Treasurers'
Investment
Pool in the same manner, in the | 5 | | same types of investments and subject to
the same limitations
| 6 | | provided for the investment of funds in the State Treasury. The | 7 | | Treasurer
shall develop, publish, and implement an investment | 8 | | policy covering the
management of funds in the Public | 9 | | Treasurers' Investment Pool. The policy
shall be published each | 10 | | year as part of the audit
of the Public Treasurers' Investment | 11 | | Pool by the Auditor General, which shall
be distributed to all | 12 | | participants. The Treasurer shall notify all Public
| 13 | | Treasurers' Investment Pool participants in writing, and the | 14 | | Treasurer shall
publish in at least one newspaper of general | 15 | | circulation in both Springfield
and Chicago any changes to a | 16 | | previously published investment policy at least 30
calendar | 17 | | days before implementing the policy. Any such investment policy
| 18 | | adopted by the Treasurer shall be reviewed, and updated if | 19 | | necessary, within 90
days following the installation of a new | 20 | | Treasurer.
| 21 | | The Treasurer shall promulgate such rules and regulations | 22 | | as he deems
necessary
for the efficient
administration of the | 23 | | Public Treasurers' Investment Pool and the E-Pay program , | 24 | | including
specification
of minimum amounts
which may be | 25 | | deposited in the Pool and minimum periods of time for which
| 26 | | deposits
shall be retained in the Pool. The rules shall provide |
| | | 09900SB2864ham003 | - 3 - | LRB099 20194 RJF 48398 a |
|
| 1 | | for the administration
expenses of the Pool to be
paid from its | 2 | | earnings and for the interest earnings in excess of such | 3 | | expenses
to be credited or
paid monthly to the several | 4 | | custodians of public funds participating in
the Pool in a | 5 | | manner which equitably
reflects the differing amounts of their | 6 | | respective investments in the Pool and
the
differing periods of | 7 | | time for which such amounts were in the custody of the
Pool.
| 8 | | Upon creating a Public Treasurers' Investment Pool the | 9 | | State Treasurer shall
give bond with 2 or more sufficient | 10 | | sureties, payable to custodians of public
funds who participate
| 11 | | in the Pool for the benefit of the public agencies whose funds | 12 | | are paid
into the Pool for investment,
in the penal sum of | 13 | | $150,000, conditioned for the faithful discharge of
his duties | 14 | | in relation to the
Public Treasurers' Investment Pool.
| 15 | | "Public funds" and "public agency", as used in this Section | 16 | | have the meanings ascribed
to them in Section 1 of "An Act | 17 | | relating to certain investments of public
funds by public
| 18 | | agencies", approved July 23, 1943, as amended.
| 19 | | This amendatory Act of 1975 is not a limit on any home rule | 20 | | unit.
| 21 | | After the effective date of this amendatory Act of the 99th | 22 | | General Assembly, participation in the Public Treasurers' | 23 | | Investment Pool shall not be a prerequisite for participation | 24 | | in the Treasurer's E-Pay program. | 25 | | (Source: P.A. 97-537, eff. 8-23-11.)
|
| | | 09900SB2864ham003 | - 4 - | LRB099 20194 RJF 48398 a |
|
| 1 | | Section 10. The Deposit of State Moneys Act is amended by | 2 | | changing Sections 18 and 22.5 as follows:
| 3 | | (15 ILCS 520/18) (from Ch. 130, par. 37)
| 4 | | Sec. 18.
The State Treasurer shall make a monthly report to | 5 | | the Governor
giving a detailed statement of the balances on | 6 | | deposit in the several
banks or savings and loan associations, | 7 | | and the amount paid by each
such bank or savings and loan | 8 | | association as interest on moneys so
deposited. Such statement | 9 | | shall contain the name of each bank or savings
and loan | 10 | | association, and the
amount in such bank or savings and loan | 11 | | association subject to draft
at the close of business on the | 12 | | last
day of the month for which the report is made, and on the | 13 | | last day of the
month next preceding. A copy of such report | 14 | | shall be retained by the
Treasurer and shall be made available | 15 | | for inspection by the public at any
reasonable time. The | 16 | | Treasurer may satisfy the requirements of this Section by | 17 | | posting the monthly report on the Treasurer's official Internet | 18 | | website.
| 19 | | (Source: P.A. 83-541.)
| 20 | | (15 ILCS 520/22.5) (from Ch. 130, par. 41a)
| 21 | | (For force and effect of certain provisions, see Section 90 | 22 | | of P.A. 94-79) | 23 | | Sec. 22.5. Permitted investments. The State Treasurer may, | 24 | | with the
approval of the Governor, invest and reinvest any |
| | | 09900SB2864ham003 | - 5 - | LRB099 20194 RJF 48398 a |
|
| 1 | | State money in the treasury
which is not needed for current | 2 | | expenditures due or about to become due, in
obligations of the | 3 | | United States government or its agencies or of National
| 4 | | Mortgage Associations established by or under the National | 5 | | Housing Act, 1201
U.S.C. 1701 et seq., or
in mortgage | 6 | | participation certificates representing undivided interests in
| 7 | | specified, first-lien conventional residential Illinois | 8 | | mortgages that are
underwritten, insured, guaranteed, or | 9 | | purchased by the Federal Home Loan
Mortgage Corporation or in | 10 | | Affordable Housing Program Trust Fund Bonds or
Notes as defined | 11 | | in and issued pursuant to the Illinois Housing Development
Act. | 12 | | All such obligations shall be considered as cash and may
be | 13 | | delivered over as cash by a State Treasurer to his successor.
| 14 | | The State Treasurer may, with the approval of the Governor, | 15 | | purchase
any state bonds with any money in the State Treasury | 16 | | that has been set
aside and held for the payment of the | 17 | | principal of and interest on the
bonds. The bonds shall be | 18 | | considered as cash and may be delivered over
as cash by the | 19 | | State Treasurer to his successor.
| 20 | | The State Treasurer may, with the approval of the Governor, | 21 | | invest or
reinvest any State money in the treasury that is not | 22 | | needed for
current expenditure due or about to become due, or | 23 | | any money in the
State Treasury that has been set aside and | 24 | | held for the payment of the
principal of and the interest on | 25 | | any State bonds, in shares,
withdrawable accounts, and | 26 | | investment certificates of savings and
building and loan |
| | | 09900SB2864ham003 | - 6 - | LRB099 20194 RJF 48398 a |
|
| 1 | | associations, incorporated under the laws of this
State or any | 2 | | other state or under the laws of the United States;
provided, | 3 | | however, that investments may be made only in those savings
and | 4 | | loan or building and loan associations the shares and | 5 | | withdrawable
accounts or other forms of investment securities | 6 | | of which are insured
by the Federal Deposit Insurance | 7 | | Corporation.
| 8 | | The State Treasurer may not invest State money in any | 9 | | savings and
loan or building and loan association unless a | 10 | | commitment by the savings
and loan (or building and loan) | 11 | | association, executed by the president
or chief executive | 12 | | officer of that association, is submitted in the
following | 13 | | form:
| 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 building | 20 | | and
loan) association also pledges to make loans available | 21 | | on low and
moderate income residential property throughout | 22 | | the community within
the limits of its legal restrictions | 23 | | and prudent financial practices.
| 24 | | The State Treasurer may, with the approval of the Governor, | 25 | | invest or
reinvest, at a price not to exceed par, any State | 26 | | money in the treasury
that is not needed for current |
| | | 09900SB2864ham003 | - 7 - | LRB099 20194 RJF 48398 a |
|
| 1 | | expenditures due or about to become
due, or any money in the | 2 | | State Treasury that has been set aside and
held for the payment | 3 | | of the principal of and interest on any State
bonds, in bonds | 4 | | issued by counties or municipal corporations of the
State of | 5 | | Illinois.
| 6 | | The State Treasurer may, with the approval of the Governor, | 7 | | invest or
reinvest any State money in the Treasury which is not | 8 | | needed for current
expenditure, due or about to become due, or | 9 | | any money in the State Treasury
which has been set aside and | 10 | | held for the payment of the principal of and
the interest on | 11 | | any State bonds, in participations in loans, the principal
of | 12 | | which participation is fully guaranteed by an agency or | 13 | | instrumentality
of the United States government; provided, | 14 | | however, that such loan
participations are represented by | 15 | | certificates issued only by banks which
are incorporated under | 16 | | the laws of this State or any other state
or under the laws of | 17 | | the United States, and such banks, but not
the loan | 18 | | participation certificates, are insured by the Federal Deposit
| 19 | | Insurance Corporation.
| 20 | | The State Treasurer may, with the approval of the Governor, | 21 | | invest or
reinvest any State money in the Treasury that is not | 22 | | needed for current
expenditure, due or about to become due, or | 23 | | any money in the State Treasury
that has been set aside and | 24 | | held for the payment of the principal of and
the interest on | 25 | | any State bonds, in any of the following:
| 26 | | (1) Bonds, notes, certificates of indebtedness, |
| | | 09900SB2864ham003 | - 8 - | LRB099 20194 RJF 48398 a |
|
| 1 | | Treasury bills, or other
securities now or hereafter issued | 2 | | that are guaranteed by the full faith
and credit of the | 3 | | United States of America as to principal and interest.
| 4 | | (2) Bonds, notes, debentures, or other similar | 5 | | obligations of the United
States of America, its agencies, | 6 | | and instrumentalities.
| 7 | | (2.5) Bonds, notes, debentures, or other similar | 8 | | obligations of a
foreign government, other than the | 9 | | Republic of the Sudan, that are guaranteed by the full | 10 | | faith and credit of that
government as to principal and | 11 | | interest, but only if the foreign government
has not | 12 | | defaulted and has met its payment obligations in a timely | 13 | | manner on
all similar obligations for a period of at least | 14 | | 25 years immediately before
the time of acquiring those | 15 | | obligations.
| 16 | | (3) Interest-bearing savings accounts, | 17 | | interest-bearing certificates of
deposit, interest-bearing | 18 | | time deposits, or any other investments
constituting | 19 | | direct obligations of any bank as defined by the Illinois
| 20 | | Banking Act.
| 21 | | (4) Interest-bearing accounts, certificates of | 22 | | deposit, or any other
investments constituting direct | 23 | | obligations of any savings and loan
associations | 24 | | incorporated under the laws of this State or any other | 25 | | state or
under the laws of the United States.
| 26 | | (5) Dividend-bearing share accounts, share certificate |
| | | 09900SB2864ham003 | - 9 - | LRB099 20194 RJF 48398 a |
|
| 1 | | accounts, or
class of share accounts of a credit union | 2 | | chartered under the laws of this
State or the laws of the | 3 | | United States; provided, however, the principal
office of | 4 | | the credit union must be located within the State of | 5 | | Illinois.
| 6 | | (6) Bankers' acceptances of banks whose senior | 7 | | obligations are rated in
the top 2 rating categories by 2 | 8 | | national rating agencies and maintain that
rating during | 9 | | the term of the investment.
| 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 identified as a forbidden | 25 | | entity, as that term is defined in Section 1-110.6 of the | 26 | | Illinois Pension Code , by an independent researching firm |
| | | 09900SB2864ham003 | - 10 - | LRB099 20194 RJF 48398 a |
|
| 1 | | that specializes in global security risk that has been | 2 | | engaged by the State Treasurer .
| 3 | | (7.5) Obligations of either corporations or limited | 4 | | liability companies organized in the United States, that | 5 | | have a significant presence in this State, with assets | 6 | | exceeding $500,000,000 if: (i) the obligations are rated at | 7 | | the time of purchase at one of the 3 highest | 8 | | classifications established by at least 2 standard rating | 9 | | services and mature more than 270 days, but less than 5 | 10 | | years, from the date of purchase; (ii) the purchases do not | 11 | | exceed 10% of the corporation's or the limited liability | 12 | | company's outstanding obligations; (iii) no more than 5% of | 13 | | the public agency's funds are invested in such obligations | 14 | | of corporations or limited liability companies; and (iv) | 15 | | the corporation or the limited liability company has not | 16 | | been placed on the list of restricted companies by the | 17 | | Illinois Investment Policy Board under Section 1-110.16 of | 18 | | the Illinois Pension Code. The authorization of the | 19 | | Treasurer to invest in new obligations under this paragraph | 20 | | shall expire on June 30, 2019.
| 21 | | (8) Money market mutual funds registered under the | 22 | | Investment Company
Act of 1940, provided that the portfolio | 23 | | of the money market mutual fund is
limited to obligations | 24 | | described in this Section and to agreements to
repurchase | 25 | | such obligations.
| 26 | | (9) The Public Treasurers' Investment Pool created |
| | | 09900SB2864ham003 | - 11 - | LRB099 20194 RJF 48398 a |
|
| 1 | | under Section 17 of
the State Treasurer Act or in a fund | 2 | | managed, operated, and administered by
a bank.
| 3 | | (10) Repurchase agreements of government securities | 4 | | having the meaning
set out in the Government Securities Act | 5 | | of 1986, as now or hereafter amended or succeeded, subject | 6 | | to the provisions
of that Act and the regulations issued | 7 | | thereunder.
| 8 | | (11) Investments made in accordance with the | 9 | | Technology Development
Act.
| 10 | | For purposes of this Section, "agencies" of the United | 11 | | States
Government includes:
| 12 | | (i) the federal land banks, federal intermediate | 13 | | credit banks, banks for
cooperatives, federal farm credit | 14 | | banks, or any other entity authorized
to issue debt | 15 | | obligations under the Farm Credit Act of 1971 (12 U.S.C. | 16 | | 2001
et seq.) and Acts amendatory thereto;
| 17 | | (ii) the federal home loan banks and the federal home | 18 | | loan
mortgage corporation;
| 19 | | (iii) the Commodity Credit Corporation; and
| 20 | | (iv) any other agency created by Act of Congress.
| 21 | | The Treasurer may, with the approval of the Governor, lend | 22 | | any securities
acquired under this Act. However, securities may | 23 | | be lent under this Section
only in accordance with Federal | 24 | | Financial Institution Examination Council
guidelines and only | 25 | | if the securities are collateralized at a level sufficient
to | 26 | | assure the safety of the securities, taking into account market |
| | | 09900SB2864ham003 | - 12 - | LRB099 20194 RJF 48398 a |
|
| 1 | | value
fluctuation. The securities may be collateralized by cash | 2 | | or collateral
acceptable under Sections 11 and 11.1.
| 3 | | (Source: P.A. 96-469, eff. 8-14-09; 96-795, eff. 7-1-10 (see | 4 | | Section 5 of P.A. 96-793 for the effective date of changes made | 5 | | by P.A. 96-795); 96-870, eff. 1-21-10; 97-277, eff. 8-8-11.)
| 6 | | Section 99. Effective date. This Act takes effect upon | 7 | | becoming law.".
|
|