Full Text of HB3005 100th General Assembly
HB3005ham001 100TH GENERAL ASSEMBLY | Rep. Al Riley Filed: 3/14/2017
| | 10000HB3005ham001 | | LRB100 09021 RJF 23568 a |
|
| 1 | | AMENDMENT TO HOUSE BILL 3005
| 2 | | AMENDMENT NO. ______. Amend House Bill 3005 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Deposit of State Moneys Act is amended by | 5 | | changing Section 22.5 as follows:
| 6 | | (15 ILCS 520/22.5) (from Ch. 130, par. 41a)
| 7 | | (For force and effect of certain provisions, see Section 90 | 8 | | of P.A. 94-79) | 9 | | Sec. 22.5. Permitted investments. The State Treasurer may, | 10 | | with the
approval of the Governor, invest and reinvest any | 11 | | State money in the treasury
which is not needed for current | 12 | | expenditures due or about to become due, in
obligations of the | 13 | | United States government or its agencies or of National
| 14 | | Mortgage Associations established by or under the National | 15 | | Housing Act, 1201
U.S.C. 1701 et seq., or
in mortgage | 16 | | participation certificates representing undivided interests in
|
| | | 10000HB3005ham001 | - 2 - | LRB100 09021 RJF 23568 a |
|
| 1 | | specified, first-lien conventional residential Illinois | 2 | | mortgages that are
underwritten, insured, guaranteed, or | 3 | | purchased by the Federal Home Loan
Mortgage Corporation or in | 4 | | Affordable Housing Program Trust Fund Bonds or
Notes as defined | 5 | | in and issued pursuant to the Illinois Housing Development
Act. | 6 | | All such obligations shall be considered as cash and may
be | 7 | | delivered over as cash by a State Treasurer to his successor.
| 8 | | The State Treasurer may, with the approval of the Governor, | 9 | | purchase
any state bonds with any money in the State Treasury | 10 | | that has been set
aside and held for the payment of the | 11 | | principal of and interest on the
bonds. The bonds shall be | 12 | | considered as cash and may be delivered over
as cash by the | 13 | | State Treasurer to his successor.
| 14 | | The State Treasurer may, with the approval of the Governor, | 15 | | invest or
reinvest any State money in the treasury that is not | 16 | | needed for
current expenditure due or about to become due, or | 17 | | any money in the
State Treasury that has been set aside and | 18 | | held for the payment of the
principal of and the interest on | 19 | | any State bonds, in shares,
withdrawable accounts, and | 20 | | investment certificates of savings and
building and loan | 21 | | associations, incorporated under the laws of this
State or any | 22 | | other state or under the laws of the United States;
provided, | 23 | | however, that investments may be made only in those savings
and | 24 | | loan or building and loan associations the shares and | 25 | | withdrawable
accounts or other forms of investment securities | 26 | | of which are insured
by the Federal Deposit Insurance |
| | | 10000HB3005ham001 | - 3 - | LRB100 09021 RJF 23568 a |
|
| 1 | | Corporation.
| 2 | | The State Treasurer may not invest State money in any | 3 | | savings and
loan or building and loan association unless a | 4 | | commitment by the savings
and loan (or building and loan) | 5 | | association, executed by the president
or chief executive | 6 | | officer of that association, is submitted in the
following | 7 | | form:
| 8 | | The .................. Savings and Loan (or Building | 9 | | and Loan)
Association pledges not to reject arbitrarily | 10 | | mortgage loans for
residential properties within any | 11 | | specific part of the community served
by the savings and | 12 | | loan (or building and loan) association because of
the | 13 | | location of the property. The savings and loan (or building | 14 | | and
loan) association also pledges to make loans available | 15 | | on low and
moderate income residential property throughout | 16 | | the community within
the limits of its legal restrictions | 17 | | and prudent financial practices.
| 18 | | The State Treasurer may, with the approval of the Governor, | 19 | | invest or
reinvest , at a price not to exceed par, any State | 20 | | money in the treasury
that is not needed for current | 21 | | expenditures due or about to become
due, or any money in the | 22 | | State Treasury that has been set aside and
held for the payment | 23 | | of the principal of and interest on any State
bonds, in bonds | 24 | | issued by counties or municipal corporations of the
State of | 25 | | Illinois. In the case of a default on a bond issued by a | 26 | | municipal corporation or county of the State of Illinois with |
| | | 10000HB3005ham001 | - 4 - | LRB100 09021 RJF 23568 a |
|
| 1 | | which State money in the Treasury was invested, the Treasurer | 2 | | may, after giving notice to the municipal corporation or | 3 | | county, certify to the Comptroller the amounts of the defaulted | 4 | | bonds, and the Comptroller must deduct and deposit into the | 5 | | Treasury the certified amounts or a portion of those amounts | 6 | | from the following proportions of grants of State funds to the | 7 | | municipality or county: | 8 | | (1) in the first year after default, one-third of the | 9 | | total amount of any grants of State funds to the municipal | 10 | | corporation or county; | 11 | | (2) in the second year after default, two-thirds of the | 12 | | total amount of any grants of State funds to the municipal | 13 | | corporation or county; and | 14 | | (3) in the third year after default and for each year | 15 | | thereafter until the total invested amount is repaid, the | 16 | | total amount of any grants of State funds to the municipal | 17 | | corporation or county.
| 18 | | The State Treasurer may, with the approval of the Governor, | 19 | | invest or
reinvest any State money in the Treasury which is not | 20 | | needed for current
expenditure, due or about to become due, or | 21 | | any money in the State Treasury
which has been set aside and | 22 | | held for the payment of the principal of and
the interest on | 23 | | any State bonds, in participations in loans, the principal
of | 24 | | which participation is fully guaranteed by an agency or | 25 | | instrumentality
of the United States government; provided, | 26 | | however, that such loan
participations are represented by |
| | | 10000HB3005ham001 | - 5 - | LRB100 09021 RJF 23568 a |
|
| 1 | | certificates issued only by banks which
are incorporated under | 2 | | the laws of this State or any other state
or under the laws of | 3 | | the United States, and such banks, but not
the loan | 4 | | participation certificates, are insured by the Federal Deposit
| 5 | | Insurance Corporation.
| 6 | | The State Treasurer may, with the approval of the Governor, | 7 | | invest or
reinvest any State money in the Treasury that is not | 8 | | needed for current
expenditure, due or about to become due, or | 9 | | any money in the State Treasury
that has been set aside and | 10 | | held for the payment of the principal of and
the interest on | 11 | | any State bonds, in any of the following:
| 12 | | (1) Bonds, notes, certificates of indebtedness, | 13 | | Treasury bills, or other
securities now or hereafter issued | 14 | | that are guaranteed by the full faith
and credit of the | 15 | | United States of America as to principal and interest.
| 16 | | (2) Bonds, notes, debentures, or other similar | 17 | | obligations of the United
States of America, its agencies, | 18 | | and instrumentalities.
| 19 | | (2.5) Bonds, notes, debentures, or other similar | 20 | | obligations of a
foreign government, other than the | 21 | | Republic of the Sudan, that are guaranteed by the full | 22 | | faith and credit of that
government as to principal and | 23 | | interest, but only if the foreign government
has not | 24 | | defaulted and has met its payment obligations in a timely | 25 | | manner on
all similar obligations for a period of at least | 26 | | 25 years immediately before
the time of acquiring those |
| | | 10000HB3005ham001 | - 6 - | LRB100 09021 RJF 23568 a |
|
| 1 | | obligations.
| 2 | | (3) Interest-bearing savings accounts, | 3 | | interest-bearing certificates of
deposit, interest-bearing | 4 | | time deposits, or any other investments
constituting | 5 | | direct obligations of any bank as defined by the Illinois
| 6 | | Banking Act.
| 7 | | (4) Interest-bearing accounts, certificates of | 8 | | deposit, or any other
investments constituting direct | 9 | | obligations of any savings and loan
associations | 10 | | incorporated under the laws of this State or any other | 11 | | state or
under the laws of the United States.
| 12 | | (5) Dividend-bearing share accounts, share certificate | 13 | | accounts, or
class of share accounts of a credit union | 14 | | chartered under the laws of this
State or the laws of the | 15 | | United States; provided, however, the principal
office of | 16 | | the credit union must be located within the State of | 17 | | Illinois.
| 18 | | (6) Bankers' acceptances of banks whose senior | 19 | | obligations are rated in
the top 2 rating categories by 2 | 20 | | national rating agencies and maintain that
rating during | 21 | | the term of the investment.
| 22 | | (7) Short-term obligations of either corporations or | 23 | | limited liability companies organized in the United
States | 24 | | with assets exceeding $500,000,000 if (i) the obligations | 25 | | are rated
at the time of purchase at one of the 3 highest | 26 | | classifications established
by at least 2 standard rating |
| | | 10000HB3005ham001 | - 7 - | LRB100 09021 RJF 23568 a |
|
| 1 | | services and mature not later than 270
days from the date | 2 | | of purchase, (ii) the purchases do not exceed 10% of
the | 3 | | corporation's or the limited liability company's | 4 | | outstanding obligations, (iii) no more than one-third of
| 5 | | the public agency's funds are invested in short-term | 6 | | obligations of
either corporations or limited liability | 7 | | companies, and (iv) the corporation or the limited | 8 | | liability company has not been placed on the list of | 9 | | restricted companies by the Illinois Investment Policy | 10 | | Board under Section 1-110.16 of the Illinois Pension Code.
| 11 | | (7.5) Obligations of either corporations or limited | 12 | | liability companies organized in the United States, that | 13 | | have a significant presence in this State, with assets | 14 | | exceeding $500,000,000 if: (i) the obligations are rated at | 15 | | the time of purchase at one of the 3 highest | 16 | | classifications established by at least 2 standard rating | 17 | | services and mature more than 270 days, but less than 5 | 18 | | years, from the date of purchase; (ii) the purchases do not | 19 | | exceed 10% of the corporation's or the limited liability | 20 | | company's outstanding obligations; (iii) no more than 5% of | 21 | | the public agency's funds are invested in such obligations | 22 | | of corporations or limited liability companies; and (iv) | 23 | | the corporation or the limited liability company has not | 24 | | been placed on the list of restricted companies by the | 25 | | Illinois Investment Policy Board under Section 1-110.16 of | 26 | | the Illinois Pension Code. The authorization of the |
| | | 10000HB3005ham001 | - 8 - | LRB100 09021 RJF 23568 a |
|
| 1 | | Treasurer to invest in new obligations under this paragraph | 2 | | shall expire on June 30, 2019. | 3 | | (8) Money market mutual funds registered under the | 4 | | Investment Company
Act of 1940, provided that the portfolio | 5 | | of the money market mutual fund is
limited to obligations | 6 | | described in this Section and to agreements to
repurchase | 7 | | such obligations.
| 8 | | (9) The Public Treasurers' Investment Pool created | 9 | | under Section 17 of
the State Treasurer Act or in a fund | 10 | | managed, operated, and administered by
a bank.
| 11 | | (10) Repurchase agreements of government securities | 12 | | having the meaning
set out in the Government Securities Act | 13 | | of 1986, as now or hereafter amended or succeeded, subject | 14 | | to the provisions
of that Act and the regulations issued | 15 | | thereunder.
| 16 | | (11) Investments made in accordance with the | 17 | | Technology Development
Act.
| 18 | | For purposes of this Section, "agencies" of the United | 19 | | States
Government includes:
| 20 | | (i) the federal land banks, federal intermediate | 21 | | credit banks, banks for
cooperatives, federal farm credit | 22 | | banks, or any other entity authorized
to issue debt | 23 | | obligations under the Farm Credit Act of 1971 (12 U.S.C. | 24 | | 2001
et seq.) and Acts amendatory thereto;
| 25 | | (ii) the federal home loan banks and the federal home | 26 | | loan
mortgage corporation;
|
| | | 10000HB3005ham001 | - 9 - | LRB100 09021 RJF 23568 a |
|
| 1 | | (iii) the Commodity Credit Corporation; and
| 2 | | (iv) any other agency created by Act of Congress.
| 3 | | The Treasurer may, with the approval of the Governor, lend | 4 | | any securities
acquired under this Act. However, securities may | 5 | | be lent under this Section
only in accordance with Federal | 6 | | Financial Institution Examination Council
guidelines and only | 7 | | if the securities are collateralized at a level sufficient
to | 8 | | assure the safety of the securities, taking into account market | 9 | | value
fluctuation. The securities may be collateralized by cash | 10 | | or collateral
acceptable under Sections 11 and 11.1.
| 11 | | (Source: P.A. 99-856, eff. 8-19-16.)
| 12 | | Section 99. Effective date. This Act takes effect upon | 13 | | becoming law.".
|
|