State of Illinois
90th General Assembly
Legislation

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90_SB0589

      15 ILCS 505/17            from Ch. 130, par. 17
          Amends  the  State  Treasurer  Act.   Provides  that  for
      purposes of the provisions concerning the Public  Treasurers'
      Investment  Pool, "public agency" includes any not-for-profit
      organization  exempt  from  federal  income  taxation   under
      Section  501(c)(3)  of the Internal Revenue Code of 1986 that
      conducts business with and receives payments from the  State,
      and "public funds" include any funds paid directly to such an
      organization by the State.  Effective January 1, 1998.
                                                     LRB9002244KDpk
                                               LRB9002244KDpk
 1        AN  ACT  to  amend  the  State  Treasurer Act by changing
 2    Section 17.
 3        Be it enacted by the People of  the  State  of  Illinois,
 4    represented in the General Assembly:
 5        Section  5.   The  State  Treasurer  Act  is  amended  by
 6    changing Section 17 as follows:
 7        (15 ILCS 505/17) (from Ch. 130, par. 17)
 8        Sec.   17.    The   State  Treasurer  may  establish  and
 9    administer a Public Treasurers' Investment Pool to supplement
10    and enhance the investment opportunities otherwise  available
11    to  other  custodians  of public funds for public agencies in
12    this State.
13        The Treasurer, in administering  the  Public  Treasurers'
14    Investment  Pool, may receive public funds paid into the pool
15    by any other custodian of such funds and  may  serve  as  the
16    fiscal  agent  of  that  custodian  of  public  funds for the
17    purpose of holding and investing those funds.
18        The Treasurer may invest the  public  funds  constituting
19    the Public Treasurers' Investment Pool in the same manner, in
20    the  same  types  of  investments  and  subject  to  the same
21    limitations provided for the investment of funds in the State
22    Treasury.   The  Treasurer  shall   develop,   publish,   and
23    implement  an  investment  policy  covering the management of
24    funds in the Public Treasurers' Investment Pool.  The  policy
25    shall  be  published  at least once each year in at least one
26    newspaper of general  circulation  in  both  Springfield  and
27    Chicago,  and  each  year  as part of the audit of the Public
28    Treasurers' Investment Pool by  the  Auditor  General,  which
29    shall  be  distributed  to  all  participants.  The Treasurer
30    shall  notify  all   Public   Treasurers'   Investment   Pool
31    participants  in  writing, and the Treasurer shall publish in
                            -2-                LRB9002244KDpk
 1    at  least  one  newspaper  of  general  circulation  in  both
 2    Springfield and Chicago any changes to a previously published
 3    investment  policy  at  least   30   calendar   days   before
 4    implementing  the policy.  Any such investment policy adopted
 5    by the Treasurer shall be reviewed, and updated if necessary,
 6    within 90 days following the installation of a new Treasurer.
 7        The Treasurer shall promulgate such rules and regulations
 8    as he deems necessary for the efficient administration of the
 9    Public Treasurers' Investment Pool,  including  specification
10    of  minimum  amounts  which  may be deposited in the Pool and
11    minimum periods of time for which deposits shall be  retained
12    in  the Pool.  The rules shall provide for the administration
13    expenses of the Pool to be paid from its earnings and for the
14    interest earnings in excess of such expenses to  be  credited
15    or  paid  monthly  to  the several custodians of public funds
16    participating  in  the  Pool  in  a  manner  which  equitably
17    reflects  the   differing   amounts   of   their   respective
18    investments in the Pool and the differing periods of time for
19    which such amounts were in the custody of the Pool.
20        Upon  creating  a  Public Treasurers' Investment Pool the
21    State Treasurer shall give bond with  2  or  more  sufficient
22    sureties,   payable   to   custodians  of  public  funds  who
23    participate in  the  Pool  for  the  benefit  of  the  public
24    agencies  whose  funds are paid into the Pool for investment,
25    in the penal sum of $150,000, conditioned  for  the  faithful
26    discharge of his duties in relation to the Public Treasurers'
27    Investment Pool.
28        "Public  funds"  and  "public  agency",  as  used in this
29    Section have the meanings ascribed to them in  Section  1  of
30    the  Public  Funds  Investment  Act.  In addition, as used in
31    this  Section,  the  term  "public   agency"   includes   any
32    not-for-profit   organization   exempt  from  federal  income
33    taxation under Section 501(c)(3) of the Internal Revenue Code
34    of 1986 that conducts business  with  and  receives  payments
                            -3-                LRB9002244KDpk
 1    from  the  State  of  Illinois,  and  the term "public funds"
 2    includes any funds paid directly to such an  organization  by
 3    the   State   of   Illinois.  "An  Act  relating  to  certain
 4    investments of public funds  by  public  agencies",  approved
 5    July 23, 1943, as amended.
 6        This  amendatory  Act  of 1975 is not a limit on any home
 7    rule unit.
 8    (Source: P.A. 89-350, eff. 8-17-95.)
 9        Section 99.   Effective  date.   This  Act  takes  effect
10    January 1, 1998.

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