Full Text of SB1169 95th General Assembly
SB1169enr 95TH GENERAL ASSEMBLY
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| AN ACT concerning finance.
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| WHEREAS, This amendatory Act of the 95th General Assembly | 3 |
| may also be cited as an Act to disassociate from genocide and | 4 |
| terrorism in Sudan; therefore | 5 |
| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Deposit of State Moneys Act is amended by | 8 |
| reenacting and changing Section 22.5 as follows:
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| (15 ILCS 520/22.5) (from Ch. 130, par. 41a)
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| (For force and effect of certain provisions, see Section 90 | 11 |
| of P.A. 94-79) | 12 |
| Sec. 22.5. Permitted investments. The State Treasurer may, | 13 |
| with the
approval of the Governor, invest and reinvest any | 14 |
| State money in the treasury
which is not needed for current | 15 |
| expenditures due or about to become due, in
obligations of the | 16 |
| United States government or its agencies or of National
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| Mortgage Associations established by or under the National | 18 |
| Housing Act, 1201
U.S.C. 1701 et seq., or
in mortgage | 19 |
| participation certificates representing undivided interests in
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| specified, first-lien conventional residential Illinois | 21 |
| mortgages that are
underwritten, insured, guaranteed, or | 22 |
| purchased by the Federal Home Loan
Mortgage Corporation or in |
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| Affordable Housing Program Trust Fund Bonds or
Notes as defined | 2 |
| in and issued pursuant to the Illinois Housing Development
Act. | 3 |
| All such obligations shall be considered as cash and may
be | 4 |
| delivered over as cash by a State Treasurer to his successor.
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| The State Treasurer may, with the approval of the Governor, | 6 |
| purchase
any state bonds with any money in the State Treasury | 7 |
| that has been set
aside and held for the payment of the | 8 |
| principal of and interest on the
bonds. The bonds shall be | 9 |
| considered as cash and may be delivered over
as cash by the | 10 |
| State Treasurer to his successor.
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| The State Treasurer may, with the approval of the Governor, | 12 |
| invest or
reinvest any State money in the treasury that is not | 13 |
| needed for
current expenditure due or about to become due, or | 14 |
| any money in the
State Treasury that has been set aside and | 15 |
| held for the payment of the
principal of and the interest on | 16 |
| any State bonds, in shares,
withdrawable accounts, and | 17 |
| investment certificates of savings and
building and loan | 18 |
| associations, incorporated under the laws of this
State or any | 19 |
| other state or under the laws of the United States;
provided, | 20 |
| however, that investments may be made only in those savings
and | 21 |
| loan or building and loan associations the shares and | 22 |
| withdrawable
accounts or other forms of investment securities | 23 |
| of which are insured
by the Federal Deposit Insurance | 24 |
| Corporation.
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| The State Treasurer may not invest State money in any | 26 |
| savings and
loan or building and loan association unless a |
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| commitment by the savings
and loan (or building and loan) | 2 |
| association, executed by the president
or chief executive | 3 |
| officer of that association, is submitted in the
following | 4 |
| form:
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| The .................. Savings and Loan (or Building | 6 |
| and Loan)
Association pledges not to reject arbitrarily | 7 |
| mortgage loans for
residential properties within any | 8 |
| specific part of the community served
by the savings and | 9 |
| loan (or building and loan) association because of
the | 10 |
| location of the property. The savings and loan (or building | 11 |
| and
loan) association also pledges to make loans available | 12 |
| on low and
moderate income residential property throughout | 13 |
| the community within
the limits of its legal restrictions | 14 |
| and prudent financial practices.
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| The State Treasurer may, with the approval of the Governor, | 16 |
| invest or
reinvest, at a price not to exceed par, any State | 17 |
| money in the treasury
that is not needed for current | 18 |
| expenditures due or about to become
due, or any money in the | 19 |
| State Treasury that has been set aside and
held for the payment | 20 |
| of the principal of and interest on any State
bonds, in bonds | 21 |
| issued by counties or municipal corporations of the
State of | 22 |
| Illinois.
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| The State Treasurer may, with the approval of the Governor, | 24 |
| invest or
reinvest any State money in the Treasury which is not | 25 |
| needed for current
expenditure, due or about to become due, or | 26 |
| any money in the State Treasury
which has been set aside and |
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| held for the payment of the principal of and
the interest on | 2 |
| any State bonds, in participations in loans, the principal
of | 3 |
| which participation is fully guaranteed by an agency or | 4 |
| instrumentality
of the United States government; provided, | 5 |
| however, that such loan
participations are represented by | 6 |
| certificates issued only by banks which
are incorporated under | 7 |
| the laws of this State or any other state
or under the laws of | 8 |
| the United States, and such banks, but not
the loan | 9 |
| participation certificates, are insured by the Federal Deposit
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| Insurance Corporation.
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| The State Treasurer may, with the approval of the Governor, | 12 |
| invest or
reinvest any State money in the Treasury that is not | 13 |
| needed for current
expenditure, due or about to become due, or | 14 |
| any money in the State Treasury
that has been set aside and | 15 |
| held for the payment of the principal of and
the interest on | 16 |
| any State bonds, in any of the following:
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| (1) Bonds, notes, certificates of indebtedness, | 18 |
| Treasury bills, or other
securities now or hereafter issued | 19 |
| that are guaranteed by the full faith
and credit of the | 20 |
| United States of America as to principal and interest.
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| (2) Bonds, notes, debentures, or other similar | 22 |
| obligations of the United
States of America, its agencies, | 23 |
| and instrumentalities.
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| (2.5) Bonds, notes, debentures, or other similar | 25 |
| obligations of a
foreign government, other than the | 26 |
| Republic of the Sudan, that are guaranteed by the full |
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| faith and credit of that
government as to principal and | 2 |
| interest, but only if the foreign government
has not | 3 |
| defaulted and has met its payment obligations in a timely | 4 |
| manner on
all similar obligations for a period of at least | 5 |
| 25 years immediately before
the time of acquiring those | 6 |
| obligations.
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| (3) Interest-bearing savings accounts, | 8 |
| interest-bearing certificates of
deposit, interest-bearing | 9 |
| time deposits, or any other investments
constituting | 10 |
| direct obligations of any bank as defined by the Illinois
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| Banking Act.
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| (4) Interest-bearing accounts, certificates of | 13 |
| deposit, or any other
investments constituting direct | 14 |
| obligations of any savings and loan
associations | 15 |
| incorporated under the laws of this State or any other | 16 |
| state or
under the laws of the United States.
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| (5) Dividend-bearing share accounts, share certificate | 18 |
| accounts, or
class of share accounts of a credit union | 19 |
| chartered under the laws of this
State or the laws of the | 20 |
| United States; provided, however, the principal
office of | 21 |
| the credit union must be located within the State of | 22 |
| Illinois.
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| (6) Bankers' acceptances of banks whose senior | 24 |
| obligations are rated in
the top 2 rating categories by 2 | 25 |
| national rating agencies and maintain that
rating during | 26 |
| the term of the investment.
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| (7) Short-term obligations of corporations organized | 2 |
| in the United
States with assets exceeding $500,000,000 if | 3 |
| (i) the obligations are rated
at the time of purchase at | 4 |
| one of the 3 highest classifications established
by at | 5 |
| least 2 standard rating services and mature not later than
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| 180 days from the date of purchase, (ii) the purchases do | 7 |
| not exceed 10% of
the corporation's outstanding | 8 |
| obligations, (iii) no more than one-third of
the public | 9 |
| agency's funds are invested in short-term obligations of
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| corporations, and (iv) the corporation has not been | 11 |
| identified as a forbidden entity, as that term is defined | 12 |
| in Section 1-110.6 of the Illinois Pension Code, by an | 13 |
| independent researching firm that specializes in global | 14 |
| security risk that has been engaged by the State Treasurer
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| is not a forbidden entity, as defined in Section 22.6 of | 16 |
| the Deposit of State Moneys Act .
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| (8) Money market mutual funds registered under the | 18 |
| Investment Company
Act of 1940, provided that the portfolio | 19 |
| of the money market mutual fund is
limited to obligations | 20 |
| described in this Section and to agreements to
repurchase | 21 |
| such obligations.
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| (9) The Public Treasurers' Investment Pool created | 23 |
| under Section 17 of
the State Treasurer Act or in a fund | 24 |
| managed, operated, and administered by
a bank.
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| (10) Repurchase agreements of government securities | 26 |
| having the meaning
set out in the Government Securities Act |
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| of 1986 subject to the provisions
of that Act and the | 2 |
| regulations issued thereunder.
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| (11) Investments made in accordance with the | 4 |
| Technology Development
Act.
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| For purposes of this Section, "agencies" of the United | 6 |
| States
Government includes:
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| (i) the federal land banks, federal intermediate | 8 |
| credit banks, banks for
cooperatives, federal farm credit | 9 |
| banks, or any other entity authorized
to issue debt | 10 |
| obligations under the Farm Credit Act of 1971 (12 U.S.C. | 11 |
| 2001
et seq.) and Acts amendatory thereto;
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| (ii) the federal home loan banks and the federal home | 13 |
| loan
mortgage corporation;
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| (iii) the Commodity Credit Corporation; and
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| (iv) any other agency created by Act of Congress.
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| The Treasurer may, with the approval of the Governor, lend | 17 |
| any securities
acquired under this Act. However, securities may | 18 |
| be lent under this Section
only in accordance with Federal | 19 |
| Financial Institution Examination Council
guidelines and only | 20 |
| if the securities are collateralized at a level sufficient
to | 21 |
| assure the safety of the securities, taking into account market | 22 |
| value
fluctuation. The securities may be collateralized by cash | 23 |
| or collateral
acceptable under Sections 11 and 11.1.
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| (Source: P.A. 94-79, eff. 1-27-06; for force and effect of | 25 |
| certain provisions, see Section 90 of P.A. 94-79 .)
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| Section 10. The State Treasurer Act is amended by changing | 2 |
| Section 16.5 as follows:
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| (15 ILCS 505/16.5)
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| Sec. 16.5. College Savings Pool. The State Treasurer may | 5 |
| establish and
administer a College Savings Pool to supplement | 6 |
| and enhance the investment
opportunities otherwise available | 7 |
| to persons seeking to finance the costs of
higher education. | 8 |
| The State Treasurer, in administering the College Savings
Pool, | 9 |
| may receive moneys paid into the pool by a participant and may | 10 |
| serve as
the fiscal agent of that participant for the purpose | 11 |
| of holding and investing
those moneys.
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| "Participant", as used in this Section, means any person | 13 |
| who makes
investments in the pool. "Designated beneficiary", as | 14 |
| used in this Section,
means any person on whose behalf an | 15 |
| account is established in the College
Savings Pool by a | 16 |
| participant. Both in-state and out-of-state persons may be
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| participants and designated beneficiaries in the College | 18 |
| Savings Pool.
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| New accounts in the College Savings Pool shall be processed | 20 |
| through
participating financial institutions. "Participating | 21 |
| financial institution",
as used in this Section, means any | 22 |
| financial institution insured by the Federal
Deposit Insurance | 23 |
| Corporation and lawfully doing business in the State of
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| Illinois and any credit union approved by the State Treasurer | 25 |
| and lawfully
doing business in the State of Illinois that |
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| agrees to process new accounts in
the College Savings Pool. | 2 |
| Participating financial institutions may charge a
processing | 3 |
| fee to participants to open an account in the pool that shall | 4 |
| not
exceed $30 until the year 2001. Beginning in 2001 and every | 5 |
| year thereafter,
the maximum fee limit shall be adjusted by the | 6 |
| Treasurer based on the Consumer
Price Index for the North | 7 |
| Central Region as published by the United States
Department of | 8 |
| Labor, Bureau of Labor Statistics for the immediately preceding
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| calendar year. Every contribution received by a financial | 10 |
| institution for
investment in the College Savings Pool shall be | 11 |
| transferred from the financial
institution to a location | 12 |
| selected by the State Treasurer within one business
day | 13 |
| following the day that the funds must be made available in | 14 |
| accordance with
federal law. All communications from the State | 15 |
| Treasurer to participants shall
reference the participating | 16 |
| financial institution at which the account was
processed.
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| The Treasurer may invest the moneys in the College Savings | 18 |
| Pool in the same
manner, in the same types of investments , and | 19 |
| subject to the same limitations
provided for the investment of | 20 |
| moneys by the Illinois State Board of
Investment. To enhance | 21 |
| the safety and liquidity of the College Savings Pool,
to ensure | 22 |
| the diversification of the investment portfolio of the pool, | 23 |
| and in
an effort to keep investment dollars in the State of | 24 |
| Illinois, the State
Treasurer shall make a percentage of each | 25 |
| account available for investment in
participating financial | 26 |
| institutions doing business in the State. The State
Treasurer |
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| shall deposit with the participating financial institution at | 2 |
| which
the account was processed the following percentage of | 3 |
| each account at a
prevailing rate offered by the institution, | 4 |
| provided that the deposit is
federally insured or fully | 5 |
| collateralized and the institution accepts the
deposit: 10% of | 6 |
| the total amount of each account for which the current age of
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| the beneficiary is less than 7 years of age, 20% of the total | 8 |
| amount of each
account for which the beneficiary is at least 7 | 9 |
| years of age and less than 12
years of age, and 50% of the total | 10 |
| amount of each account for which the current
age of the | 11 |
| beneficiary is at least 12 years of age. The State Treasurer | 12 |
| shall
adjust each account at least annually to ensure | 13 |
| compliance with this Section.
The Treasurer shall develop, | 14 |
| publish, and implement an investment policy
covering the | 15 |
| investment of the moneys in the College Savings Pool. The | 16 |
| policy
shall be published (i) at least once each year in at | 17 |
| least one newspaper of
general circulation in both Springfield | 18 |
| and Chicago and (ii) each year as part
of the audit of the | 19 |
| College Savings Pool by the Auditor General, which shall be
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| distributed to all participants. The Treasurer shall notify all | 21 |
| participants
in writing, and the Treasurer shall publish in a | 22 |
| newspaper of general
circulation in both Chicago and | 23 |
| Springfield, any changes to the previously
published | 24 |
| investment policy at least 30 calendar days before implementing | 25 |
| the
policy. Any investment policy adopted by the Treasurer | 26 |
| shall be reviewed and
updated if necessary within 90 days |
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| following the date that the State Treasurer
takes office.
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| Participants shall be required to use moneys distributed | 3 |
| from the College
Savings Pool for qualified expenses at | 4 |
| eligible educational institutions.
"Qualified expenses", as | 5 |
| used in this Section, means the following: (i)
tuition, fees, | 6 |
| and the costs of books, supplies, and equipment required for
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| enrollment or attendance at an eligible educational | 8 |
| institution and (ii)
certain room and board expenses incurred | 9 |
| while attending an eligible
educational institution at least | 10 |
| half-time. "Eligible educational
institutions", as used in | 11 |
| this Section, means public and private colleges,
junior | 12 |
| colleges, graduate schools, and certain vocational | 13 |
| institutions that are
described in Section 481 of the Higher | 14 |
| Education Act of 1965 (20 U.S.C. 1088)
and that are eligible to | 15 |
| participate in Department of Education student aid
programs. A | 16 |
| student shall be considered to be enrolled at
least half-time | 17 |
| if the student is enrolled for at least half the full-time
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| academic work load for the course of study the student is | 19 |
| pursuing as
determined under the standards of the institution | 20 |
| at which the student is
enrolled. Distributions made from the | 21 |
| pool for qualified expenses shall be
made directly to the | 22 |
| eligible educational institution, directly to a vendor, or
in | 23 |
| the form of a check payable to both the beneficiary and the | 24 |
| institution or
vendor. Any moneys that are distributed in any | 25 |
| other manner or that are used
for expenses other than qualified | 26 |
| expenses at an eligible educational
institution shall be |
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| subject to a penalty of 10% of the earnings unless the
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| beneficiary dies, becomes disabled, or receives a scholarship | 3 |
| that equals or
exceeds the distribution. Penalties shall be | 4 |
| withheld at the time the
distribution is made.
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| The Treasurer shall limit the contributions that may be | 6 |
| made on behalf of a
designated beneficiary based on an | 7 |
| actuarial estimate of what is required to
pay tuition, fees, | 8 |
| and room and board for 5 undergraduate years at the highest
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| cost eligible educational institution. The contributions made | 10 |
| on behalf of a
beneficiary who is also a beneficiary under the | 11 |
| Illinois Prepaid Tuition
Program shall be further restricted to | 12 |
| ensure that the contributions in both
programs combined do not | 13 |
| exceed the limit established for the College Savings
Pool. The | 14 |
| Treasurer shall provide the Illinois Student Assistance | 15 |
| Commission
each year at a time designated by the Commission, an | 16 |
| electronic report of all
participant accounts in the | 17 |
| Treasurer's College Savings Pool, listing total
contributions | 18 |
| and disbursements from each individual account during the
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| previous calendar year. As soon thereafter as is possible | 20 |
| following receipt of
the Treasurer's report, the Illinois | 21 |
| Student Assistance Commission shall, in
turn, provide the | 22 |
| Treasurer with an electronic report listing those College
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| Savings Pool participants who also participate in the State's | 24 |
| prepaid tuition
program, administered by the Commission. The | 25 |
| Commission shall be responsible
for filing any combined tax | 26 |
| reports regarding State qualified savings programs
required by |
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| the United States Internal Revenue Service. The Treasurer shall
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| work with the Illinois Student Assistance Commission to | 3 |
| coordinate the
marketing of the College Savings Pool and the | 4 |
| Illinois Prepaid Tuition
Program when considered beneficial by | 5 |
| the Treasurer and the Director of the
Illinois Student | 6 |
| Assistance
Commission. The Treasurer's office shall not | 7 |
| publicize or otherwise market the
College Savings Pool or | 8 |
| accept any moneys into the College Savings Pool prior
to March | 9 |
| 1, 2000. The Treasurer shall provide a separate accounting for | 10 |
| each
designated beneficiary to each participant, the Illinois | 11 |
| Student Assistance
Commission, and the participating financial | 12 |
| institution at which the account
was processed. No interest in | 13 |
| the program may be pledged as security for a
loan.
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| The assets of the College Savings Pool and its income and | 15 |
| operation shall
be exempt from all taxation by the State of | 16 |
| Illinois and any of its
subdivisions. The accrued earnings on | 17 |
| investments in the Pool once disbursed
on behalf of a | 18 |
| designated beneficiary shall be similarly exempt from all
| 19 |
| taxation by the State of Illinois and its subdivisions, so long | 20 |
| as they are
used for qualified expenses. Contributions to a | 21 |
| College Savings Pool account
during the taxable year may be | 22 |
| deducted from adjusted gross income as provided
in Section 203 | 23 |
| of the Illinois Income Tax Act. The provisions of this
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| paragraph are exempt from Section 250 of the Illinois Income | 25 |
| Tax Act.
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| The Treasurer shall adopt rules he or she considers |
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| necessary for the
efficient administration of the College | 2 |
| Savings Pool. The rules shall provide
whatever additional | 3 |
| parameters and restrictions are necessary to ensure that
the | 4 |
| College Savings Pool meets all of the requirements for a | 5 |
| qualified state
tuition program under Section 529 of the | 6 |
| Internal Revenue Code (26 U.S.C. 529).
The rules shall provide | 7 |
| for the administration expenses of the pool to be paid
from its | 8 |
| earnings and for the investment earnings in excess of the | 9 |
| expenses and
all moneys collected as penalties to be credited | 10 |
| or paid monthly to the several
participants in the pool in a | 11 |
| manner which equitably reflects the differing
amounts of their | 12 |
| respective investments in the pool and the differing periods
of | 13 |
| time for which those amounts were in the custody of the pool. | 14 |
| Also, the
rules shall require the maintenance of records that | 15 |
| enable the Treasurer's
office to produce a report for each | 16 |
| account in the pool at least annually that
documents the | 17 |
| account balance and investment earnings. Notice of any proposed
| 18 |
| amendments to the rules and regulations shall be provided to | 19 |
| all participants
prior to adoption. Amendments to rules and | 20 |
| regulations shall apply only to
contributions made after the | 21 |
| adoption of the amendment.
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| Upon creating the College Savings Pool, the State Treasurer | 23 |
| shall give bond
with 2 or more sufficient sureties, payable to | 24 |
| and for the benefit of the
participants in the College Savings | 25 |
| Pool, in the penal sum of $1,000,000,
conditioned upon the | 26 |
| faithful discharge of his or her duties in relation to
the |
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| College Savings Pool.
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| (Source: P.A. 92-16, eff. 6-28-01; 92-439, eff. 8-17-01; | 3 |
| 92-626, eff. 7-11-02; 93-812, eff. 1-1-05.)
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| Section 15. The Illinois Pension Code is amended by adding | 5 |
| Sections 1-110.6 and 1-110.10 as follows: | 6 |
| (40 ILCS 5/1-110.6 new)
| 7 |
| Sec. 1-110.6. Transactions prohibited by retirement | 8 |
| systems; Republic of the Sudan. | 9 |
| (a) The Government of the United States has determined that | 10 |
| Sudan is a nation that sponsors terrorism and genocide. The | 11 |
| General Assembly finds that acts of terrorism have caused | 12 |
| injury and death to Illinois and United States residents who | 13 |
| serve in the United States military, and pose a significant | 14 |
| threat to safety and health in Illinois. The General Assembly | 15 |
| finds that public employees and their families, including | 16 |
| police officers and firefighters, are more likely than others | 17 |
| to be affected by acts of terrorism. The General Assembly finds | 18 |
| that Sudan continues to solicit investment and commercial | 19 |
| activities by forbidden entities, including private market | 20 |
| funds. The General Assembly finds that investments in forbidden | 21 |
| entities are inherently and unduly risky, not in the interests | 22 |
| of public pensioners and Illinois taxpayers, and against public | 23 |
| policy. The General Assembly finds that Sudan's capacity to | 24 |
| sponsor terrorism and genocide depends on or is supported by |
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| the activities of forbidden entities. The General Assembly | 2 |
| further finds and re-affirms that the people of the State, | 3 |
| acting through their representatives, do not want to be | 4 |
| associated with forbidden entities, genocide, and terrorism.
| 5 |
| (b) For purposes of this Section: | 6 |
| "Business operations" means maintaining, selling, or | 7 |
| leasing equipment, facilities, personnel, or any other | 8 |
| apparatus of business or commerce in the Republic of the Sudan, | 9 |
| including the ownership or possession of real or personal | 10 |
| property located in the Republic of the Sudan. | 11 |
| "Certifying company" means a company that (1) directly | 12 |
| provides asset management services or advice to a retirement | 13 |
| system or (2) as directly authorized or requested by a | 14 |
| retirement system (A) identifies particular investment options | 15 |
| for consideration or approval; (B) chooses particular | 16 |
| investment options; or (C) allocates particular amounts to be | 17 |
| invested. If no company meets the criteria set forth in this | 18 |
| paragraph, then "certifying company" shall mean the retirement | 19 |
| system officer who, as designated by the board, executes the | 20 |
| investment decisions made by the board, or, in the alternative, | 21 |
| the company that the board authorizes to complete the | 22 |
| certification as the agent of that officer.
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| "Company" is any entity capable of affecting commerce, | 24 |
| including but not limited to (i) a government, government | 25 |
| agency, natural person, legal person, sole proprietorship, | 26 |
| partnership, firm, corporation, subsidiary, affiliate, |
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| franchisor, franchisee, joint venture, trade association, | 2 |
| financial institution, utility, public franchise, provider of | 3 |
| financial services, trust, or enterprise; and (ii) any | 4 |
| association thereof. | 5 |
| "Department" means the Public Pension Division of the | 6 |
| Department of Financial and Professional Regulation.
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| "Forbidden entity" means any of the following: | 8 |
| (1) The government of the Republic of the Sudan and any | 9 |
| of its agencies, including but not limited to political | 10 |
| units and subdivisions;
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| (2) Any company that is wholly or partially managed or | 12 |
| controlled by the government of the Republic of the Sudan | 13 |
| and any of its agencies, including but not limited to | 14 |
| political units and subdivisions; | 15 |
| (3) Any company (i) that is established or organized | 16 |
| under the laws of the Republic of the Sudan or (ii) whose | 17 |
| principal place of business is in the Republic of the | 18 |
| Sudan; | 19 |
| (4) Any company (i) identified by the Office of Foreign | 20 |
| Assets Control in the United States Department of the | 21 |
| Treasury as sponsoring terrorist activities in the | 22 |
| Republic of the Sudan; or (ii) fined, penalized, or | 23 |
| sanctioned by the Office of Foreign Assets Control in the | 24 |
| United States Department of the Treasury for any violation | 25 |
| of any United States rules and restrictions relating to the | 26 |
| Republic of the Sudan that occurred at any time following |
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SB1169 Enrolled |
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LRB095 10981 AMC 31287 b |
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| the effective date of this Act; | 2 |
| (5) Any publicly traded company
that is individually | 3 |
| identified by an independent researching firm that | 4 |
| specializes in global security risk and that has been | 5 |
| retained by a certifying company as provided in subsection | 6 |
| (c) of this Section as being a company that owns or | 7 |
| controls property or assets located in, has employees or | 8 |
| facilities located in, provides goods or services to, | 9 |
| obtains goods or services from, has distribution | 10 |
| agreements with, issues credits or loans to, purchases | 11 |
| bonds or commercial paper issued by, or invests in (A)
the | 12 |
| Republic of the Sudan; or (B)
any company domiciled in the | 13 |
| Republic of the Sudan; and | 14 |
| (6) Any private market fund that fails to satisfy the | 15 |
| requirements set forth in subsections (d) and (e) of this | 16 |
| Section. | 17 |
| Notwithstanding the foregoing, the term "forbidden entity" | 18 |
| shall exclude (A) mutual funds that meet the requirements of | 19 |
| item (iii) of paragraph (13) of Section 1-113.2 and (B) | 20 |
| companies that transact business in the Republic of the Sudan | 21 |
| under the law, license, or permit of the United States, | 22 |
| including a license from the United States Department of the | 23 |
| Treasury, and
companies, except agencies of the Republic of the | 24 |
| Sudan, who are certified as Non-Government Organizations by the | 25 |
| United Nations, or who engage solely in (i) the provision of | 26 |
| goods and services intended to relieve human suffering or to |
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SB1169 Enrolled |
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LRB095 10981 AMC 31287 b |
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| promote welfare, health, religious and spiritual activities, | 2 |
| and education or humanitarian purposes; or (ii) journalistic | 3 |
| activities. | 4 |
| "Private market fund" means any private equity fund, | 5 |
| private equity fund of funds, venture capital fund, hedge fund, | 6 |
| hedge fund of funds, real estate fund, or other investment | 7 |
| vehicle that is not publicly traded.
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| "Republic of the Sudan" means those geographic areas of the | 9 |
| Republic of Sudan that are subject to sanction or other | 10 |
| restrictions placed on commercial activity imposed by the | 11 |
| United States Government due to an executive or congressional | 12 |
| declaration of genocide.
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| "Retirement system" means the State Employees' Retirement | 14 |
| System of Illinois, the Judges Retirement System of Illinois, | 15 |
| the General Assembly Retirement System, the State Universities | 16 |
| Retirement System, and the Teachers' Retirement System of the | 17 |
| State of Illinois.
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| (c) A retirement system shall not transfer or disburse | 19 |
| funds to, deposit into, acquire any bonds or commercial paper | 20 |
| from, or otherwise loan to or invest in any entity unless, as | 21 |
| provided in this Section, a certifying company
certifies to the | 22 |
| retirement system that, (1) with respect to investments in a | 23 |
| publicly traded company, the certifying company has relied on | 24 |
| information provided by an independent researching firm that | 25 |
| specializes in global security risk and (2) 100% of the | 26 |
| retirement system's assets for which the certifying company |
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SB1169 Enrolled |
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LRB095 10981 AMC 31287 b |
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| provides services or advice are not and have not been invested | 2 |
| or reinvested in any forbidden entity at any time after 4 | 3 |
| months after the effective date of this Section. | 4 |
| The certifying company shall make the certification | 5 |
| required under this subsection (c) to a retirement system 6 | 6 |
| months after the effective date of this Section and annually | 7 |
| thereafter. A retirement system shall submit the | 8 |
| certifications to the Department, and the Department shall | 9 |
| notify the Secretary of Financial and Professional Regulation | 10 |
| if a retirement system fails to do so. | 11 |
| (d) With respect to a commitment or investment made | 12 |
| pursuant to a written agreement executed prior to the effective | 13 |
| date of this Section, each private market fund shall submit to | 14 |
| the appropriate certifying company, at no additional cost to | 15 |
| the retirement system:
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| (1) an affidavit sworn under oath in which an expressly | 17 |
| authorized officer of the private market fund avers that | 18 |
| the private market fund (A) does not own or control any | 19 |
| property or asset located in the Republic of the Sudan and | 20 |
| (B) does not conduct business operations in the Republic of | 21 |
| the Sudan; or | 22 |
| (2) a certificate in which an expressly authorized | 23 |
| officer of the private market fund certifies that the | 24 |
| private market fund, based on reasonable due diligence, has | 25 |
| determined that, other than direct or indirect investments | 26 |
| in companies certified as Non-Government Organizations by |
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SB1169 Enrolled |
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| the United Nations, the private market fund has no direct | 2 |
| or indirect investment in any company (A) organized under | 3 |
| the laws of the Republic of the Sudan; (B) whose principal | 4 |
| place of business is in the Republic of the Sudan; or (C) | 5 |
| that conducts business operations in the Republic of the | 6 |
| Sudan. Such certificate shall be based upon the periodic | 7 |
| reports received by the private market fund, and the | 8 |
| private market fund shall agree that the certifying | 9 |
| company, directly or through an agent, or the retirement | 10 |
| system, as the case may be, may from time to time review | 11 |
| the private market fund's certification process.
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| (e) With respect to a commitment or investment made | 13 |
| pursuant to a written agreement executed after the effective | 14 |
| date of this Section, each private market fund shall, at no | 15 |
| additional cost to the retirement system:
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| (1) submit to the appropriate certifying company an | 17 |
| affidavit or certificate consistent with the requirements | 18 |
| pursuant to subsection (d) of this Section; or | 19 |
| (2) enter into an enforceable written agreement with | 20 |
| the retirement system that provides for remedies | 21 |
| consistent with those set forth in subsection (g) of this | 22 |
| Section if any of the assets of the retirement system shall | 23 |
| be transferred, loaned, or otherwise invested in any | 24 |
| company that directly or indirectly (A) has facilities or | 25 |
| employees in the Republic of the Sudan or (B) conducts | 26 |
| business operations in the Republic of the Sudan.
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SB1169 Enrolled |
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| (f) In addition to any other penalties and remedies | 2 |
| available under the law of Illinois and the United States, any | 3 |
| transaction, other than a transaction with a private market | 4 |
| fund that is governed by subsections (g) and (h) of this | 5 |
| Section, that violates the provisions of this Act shall be | 6 |
| against public policy and voidable, at the sole discretion of | 7 |
| the retirement system.
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| (g) If a private market fund fails to provide the affidavit | 9 |
| or certification required in subsections (d) and (e) of this | 10 |
| Section, then the retirement system shall, within 90 days, | 11 |
| divest, or attempt in good faith to divest, the retirement | 12 |
| system's interest in the private market fund, provided that the | 13 |
| Board of the retirement system confirms through resolution that | 14 |
| the divestment does not have a material and adverse impact on | 15 |
| the retirement system. The retirement system shall immediately | 16 |
| notify the Department, and the Department shall notify all | 17 |
| other retirement systems, as soon as practicable, by posting | 18 |
| the name of the private market fund on the Department's | 19 |
| Internet website or through e-mail communications. No other | 20 |
| retirement system may enter into any agreement under which the | 21 |
| retirement system directly or indirectly invests in the private | 22 |
| market fund unless the private market fund provides that | 23 |
| retirement system with the affidavit or certification required | 24 |
| in subsections (d) and (e) of this Section and complies with | 25 |
| all other provisions of this Section. | 26 |
| (h) If a private market fund fails to fulfill its |
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SB1169 Enrolled |
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LRB095 10981 AMC 31287 b |
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| obligations under any agreement provided for in paragraph (2) | 2 |
| of subsection (e) of this Section, the retirement system shall | 3 |
| immediately take legal and other action to obtain satisfaction | 4 |
| through all remedies and penalties available under the law and | 5 |
| the agreement itself. The retirement system shall immediately | 6 |
| notify the Department, and the Department shall notify all | 7 |
| other retirement systems, as soon as practicable, by posting | 8 |
| the name of the private market fund on the Department's | 9 |
| Internet website or through e-mail communications, and no other | 10 |
| retirement system may enter into any agreement under which the | 11 |
| retirement system directly or indirectly invests in the private | 12 |
| market fund.
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| (i) This Section shall have full force and effect during | 14 |
| any period in which the Republic of the Sudan, or the officials | 15 |
| of the government of that Republic, are subject to sanctions | 16 |
| authorized under any statute or executive order of the United | 17 |
| States or until such time as the State Department of the United | 18 |
| States confirms in the federal register or through other means | 19 |
| that the Republic of the Sudan is no longer subject to | 20 |
| sanctions by the government of the United States. | 21 |
| (j) If any provision of this Section or its application to | 22 |
| any person or circumstance is held invalid, the invalidity of | 23 |
| that provision or application does not affect other provisions | 24 |
| or applications of this Section that can be given effect | 25 |
| without the invalid provision or application.
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SB1169 Enrolled |
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LRB095 10981 AMC 31287 b |
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| (40 ILCS 5/1-110.10 new)
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| Sec. 1-110.10. Servicer certification. | 3 |
| (a) For the purposes of this Section: | 4 |
| "Illinois finance entity" means any entity chartered under | 5 |
| the Illinois Banking Act, the Savings Bank Act, the Illinois | 6 |
| Credit Union Act, or the Illinois Savings and Loan Act of 1985 | 7 |
| and any person or entity licensed under the Residential | 8 |
| Mortgage License Act of 1987, the Consumer Installment Loan | 9 |
| Act, or the Sales Finance Agency Act. | 10 |
| "Retirement system or pension fund" means a retirement | 11 |
| system or pension fund established under this Code.
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| (b) In order for an Illinois finance entity to be eligible | 13 |
| for investment or deposit of retirement system or pension fund | 14 |
| assets, the Illinois finance entity must annually certify that | 15 |
| it complies with the requirements of the High Risk Home Loan | 16 |
| Act and the rules adopted pursuant to that Act that are | 17 |
| applicable to that Illinois finance entity. For Illinois | 18 |
| finance entities with whom the retirement system or pension | 19 |
| fund is investing or depositing assets on the effective date of | 20 |
| this Section, the initial certification required under this | 21 |
| Section shall be completed within 6 months after the effective | 22 |
| date of this Section. For Illinois finance entities with whom | 23 |
| the retirement system or pension fund is not investing or | 24 |
| depositing assets on the effective date of this Section, the | 25 |
| initial certification required under this Section must be | 26 |
| completed before the retirement system or pension fund may |
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SB1169 Enrolled |
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LRB095 10981 AMC 31287 b |
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| invest or deposit assets with the Illinois finance entity. | 2 |
| (c) A retirement system or pension fund shall submit the | 3 |
| certifications to the Public Pension Division of the Department | 4 |
| of Financial and Professional Regulation, and the Division | 5 |
| shall notify the Secretary of Financial and Professional | 6 |
| Regulation if a retirement system or pension fund fails to do | 7 |
| so. | 8 |
| (d) If an Illinois finance entity fails to provide an | 9 |
| initial certification within 6 months after the effective date | 10 |
| of this Section or fails to submit an annual certification, | 11 |
| then the retirement system or pension fund shall notify the | 12 |
| Illinois finance entity. The Illinois finance entity shall, | 13 |
| within 30 days after the date of notification, either (i) | 14 |
| notify the retirement system or pension fund of its intention | 15 |
| to certify and complete certification or (ii) notify the | 16 |
| retirement system or pension fund of its intention to not | 17 |
| complete certification. If an Illinois finance entity fails to | 18 |
| provide certification, then the retirement system or pension | 19 |
| fund shall, within 90 days, divest, or attempt in good faith to | 20 |
| divest, the retirement system's or pension fund's assets with | 21 |
| that Illinois finance entity. The retirement system or pension | 22 |
| fund shall immediately notify the Department of the Illinois | 23 |
| finance entity's failure to provide certification.
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| (e) If any provision of this Section or its application to | 25 |
| any person or circumstance is held invalid, the invalidity of | 26 |
| that provision or application does not affect other provisions |
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SB1169 Enrolled |
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| or applications of this Section that can be given effect | 2 |
| without the invalid provision or application. | 3 |
| (15 ILCS 520/22.6 rep.) | 4 |
| Section 90. The Deposit of State Moneys Act is amended by | 5 |
| repealing Section 22.6. | 6 |
| (40 ILCS 5/1-110.5 rep.) | 7 |
| Section 95. The Illinois Pension Code is amended by | 8 |
| repealing Section 1-110.5. | 9 |
| Section 96. The State Mandates Act is amended by adding | 10 |
| Section 8.31 as follows: | 11 |
| (30 ILCS 805/8.31 new) | 12 |
| Sec. 8.31. Exempt mandate. Notwithstanding Sections 6 and 8 | 13 |
| of this Act, no reimbursement by the State is required for the | 14 |
| implementation of any mandate created by this amendatory Act of | 15 |
| the 95th General Assembly. | 16 |
| Section 97. Severability. If any provision of this Act or | 17 |
| its application to any person or circumstance is held invalid, | 18 |
| the invalidity of that provision or application does not affect | 19 |
| other provisions or applications of this Act that can be given | 20 |
| effect without the invalid provision or application.
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| Section 99. Effective date. This Act takes effect upon |
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| becoming law. |
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