SB 2864 — TREASURER-ST MONEY DEPOSIT ACT

SB2864 EngrossedEnrolled LRB099 20194 RJF 44652 b AN ACT concerning State government.

The State Treasurer Act is amended by changing Section 17 as follows:

(15 ILCS 505/17) (from Ch.

130, par.

17) Sec.

17.

The State Treasurer may establish and administer both a Public Treasurers' Investment Pool and an E-Pay program to supplement and enhance both the investment opportunities and the secure electronic payment options otherwise available to other custodians of public funds for public agencies in this State.

The Treasurer, in administering the Public Treasurers' Investment Pool, may receive public funds paid into the pool by any other custodian of such funds and may serve as the fiscal agent of that custodian of public funds for the purpose of holding and investing those funds.

The Treasurer may invest the public funds constituting the Public Treasurers' Investment Pool in the same manner, in the same types of investments and subject to the same limitations provided for the investment of funds in the State Treasury.

The Treasurer shall develop, publish, and implement an investment policy covering the management of funds in the Public SB2864 Enrolled - 2 - LRB099 20194 RJF 44652 b Treasurers' Investment Pool.

The policy shall be published each year as part of the audit of the Public Treasurers' Investment Pool by the Auditor General, which shall be distributed to all participants.

The Treasurer shall notify all Public Treasurers' Investment Pool participants in writing, and the Treasurer shall publish in at least one newspaper of general circulation in both Springfield and Chicago any changes to a previously published investment policy at least 30 calendar days before implementing the policy.

Any such investment policy adopted by the Treasurer shall be reviewed, and updated if necessary, within 90 days following the installation of a new Treasurer.

The Treasurer shall promulgate such rules and regulations as he deems necessary for the efficient administration of the Public Treasurers' Investment Pool and the E-Pay program, including specification of minimum amounts which may be deposited in the Pool and minimum periods of time for which deposits shall be retained in the Pool.

The rules shall provide for the administration expenses of the Pool to be paid from its earnings and for the interest earnings in excess of such expenses to be credited or paid monthly to the several custodians of public funds participating in the Pool in a manner which equitably reflects the differing amounts of their respective investments in the Pool and the differing periods of time for which such amounts were in the custody of the Pool.

Upon creating a Public Treasurers' Investment Pool the SB2864 Enrolled - 3 - LRB099 20194 RJF 44652 b State Treasurer shall give bond with 2 or more sufficient sureties, payable to custodians of public funds who participate in the Pool for the benefit of the public agencies whose funds are paid into the Pool for investment, in the penal sum of $150,000, conditioned for the faithful discharge of his duties in relation to the Public Treasurers' Investment Pool.

"Public funds" and "public agency", as used in this Section have the meanings ascribed to them in Section 1 of "An Act relating to certain investments of public funds by public agencies", approved July 23, 1943, as amended.

This amendatory Act of 1975 is not a limit on any home rule unit.

After the effective date of this amendatory Act of the 99th General Assembly, participation in the Public Treasurers' Investment Pool shall not be a prerequisite for participation in the Treasurer's E-Pay program.

(Source:

P.A.

97-537, eff.

8-23-11.) Section 10.

The State Treasurer shall make a monthly report to the Governor giving a detailed statement of the balances on deposit in the several banks or savings and loan associations, and the amount paid by each such bank or savings and loan SB2864 Enrolled - 4 - LRB099 20194 RJF 44652 b association as interest on moneys so deposited.

83-541.) SB2864 Engrossed - 2 - LRB099 20194 RJF 44652 b (15 ILCS 520/22.5) (from Ch.

1701 et seq., or in mortgage participation certificates representing undivided interests in specified, first-lien conventional residential Illinois mortgages that are underwritten, insured, guaranteed, or SB2864 Enrolled - 5 - LRB099 20194 RJF 44652 b purchased by the Federal Home Loan Mortgage Corporation or in Affordable Housing Program Trust Fund Bonds or Notes as defined in and issued pursuant to the Illinois Housing Development Act.

The State Treasurer may, with the approval of the Governor, invest or reinvest any State money in the treasury that is not SB2864 Engrossed - 3 - LRB099 20194 RJF 44652 b needed for current expenditure due or about to become due, or any money in the State Treasury that has been set aside and held for the payment of the principal of and the interest on any State bonds, in shares, withdrawable accounts, and investment certificates of savings and building and loan associations, incorporated under the laws of this State or any other state or under the laws of the United States;

The State Treasurer may not invest State money in any SB2864 Enrolled - 6 - LRB099 20194 RJF 44652 b savings and loan or building and loan association unless a commitment by the savings and loan (or building and loan) association, executed by the president or chief executive officer of that association, is submitted in the following form:

The savings and loan (or building and loan) association also pledges to make loans available on low and moderate income residential property throughout SB2864 Engrossed - 4 - LRB099 20194 RJF 44652 b the community within the limits of its legal restrictions and prudent financial practices.

The State Treasurer may, with the approval of the Governor, invest or reinvest any State money in the Treasury which is not needed for current expenditure, due or about to become due, or SB2864 Enrolled - 7 - LRB099 20194 RJF 44652 b any money in the State Treasury which has been set aside and held for the payment of the principal of and the interest on any State bonds, in participations in loans, the principal of which participation is fully guaranteed by an agency or instrumentality of the United States government;

The State Treasurer may, with the approval of the Governor, invest or reinvest any State money in the Treasury that is not SB2864 Engrossed - 5 - LRB099 20194 RJF 44652 b needed for current expenditure, due or about to become due, or any money in the State Treasury that has been set aside and held for the payment of the principal of and the interest on any State bonds, in any of the following:

(2.5) Bonds, notes, debentures, or other similar obligations of a foreign government, other than the SB2864 Enrolled - 8 - LRB099 20194 RJF 44652 b Republic of the Sudan, that are guaranteed by the full faith and credit of that government as to principal and interest, but only if the foreign government has not defaulted and has met its payment obligations in a timely manner on all similar obligations for a period of at least 25 years immediately before the time of acquiring those obligations.

(4) Interest-bearing accounts, certificates of SB2864 Engrossed - 6 - LRB099 20194 RJF 44652 b deposit, or any other investments constituting direct obligations of any savings and loan associations incorporated under the laws of this State or any other state or under the laws of the United States.

(6) Bankers' acceptances of banks whose senior obligations are rated in the top 2 rating categories by 2 national rating agencies and maintain that rating during SB2864 Enrolled - 9 - LRB099 20194 RJF 44652 b the term of the investment.

(7) Obligations Short-term obligations of either corporations or limited liability companies organized in the United States,States that have a significant presence in this State, with assets exceeding $500,000,000 if (i) the obligations are rated at the time of purchase at one of the 3 highest classifications established by at least 2 standard rating services and mature not later than 5 years 270 days from the date of purchase, (ii) the purchases do not exceed 10% of the corporation's or the limited liability company's outstanding obligations, (iii) no more than one-third of the public agency's funds are invested in short-term obligations of either corporations or limited SB2864 Engrossed - 7 - LRB099 20194 RJF 44652 b liability companies, and (iv) the corporation or the limited liability company has not been placed on the list of restricted companies by the Illinois Investment Policy Board under Section 1-110.16 identified as a forbidden entity, as that term is defined in Section 1-110.6 of the Illinois Pension Code, by an independent researching firm that specializes in global security risk that has been engaged by the State Treasurer.

(7.5) Obligations of either corporations or limited liability companies organized in the United States, that have a significant presence in this State, with assets exceeding $500,000,000 if:

(i) the obligations are rated at the time of purchase at one of the 3 highest classifications established by at least 2 standard rating SB2864 Enrolled - 10 - LRB099 20194 RJF 44652 b services and mature more than 270 days, but less than 5 years, from the date of purchase;

(ii) the purchases do not exceed 10% of the corporation's or the limited liability company's outstanding obligations;

(iii) no more than 5% of the public agency's funds are invested in such obligations of corporations or limited liability companies;

and (iv) the corporation or the limited liability company has not been placed on the list of restricted companies by the Illinois Investment Policy Board under Section 1-110.16 of the Illinois Pension Code.