SB 52 — STATE MONEY INVEST-SHORT TERM

SB0052 EngrossedEnrolled LRB096 02025 RCE 12038 b AN ACT concerning finance.

TheIf Depositand only if Senate Bill 658 of Statethe Moneys96th ActGeneral isAssembly (as amended by changingHouse SectionAmendment 22.5No. as follows:

(153) ILCSbecomes 520/22.5)law, (fromthe Ch.Illinois Power Agency Act is amended by changing Section 1-56 as follows:

130,(20 par.ILCS 3855/1-56 as added by 09600SB0658eng with ham003) Sec.

41a)1-56. (For force and effect of certain provisions, see Section 90 of P.A.

94-79)Clean Sec.coal SNG facility construction.

22.5.(a) It is the intention of the General Assembly to provide additional long-term natural gas price stability to the State and consumers by promoting the development of a clean coal SNG facility that would produce a minimum annual output of 30 Bcf of SNG and commence construction no later than June 1, 2013 on a brownfield site in a municipality with at least one million residents.

PermittedThe investments.costs associated with preparing a facility cost report for such a facility, which contains all of the information required by subsection (b) of this Section, may be paid or reimbursed pursuant to subsection (c) of this Section.

(b) The Statefacility Treasurercost may,report withfor a facility that meets the approvalcriteria set forth in subsection (a) of thethis Governor,Section investshall andbe reinvestprepared anyby Statea moneyduly inlicensed engineering firm that details the treasuryestimated whichcapital iscosts notpayable neededto forone currentor expendituresmore duecontractors or aboutSB0052 toEnrolled become- due,2 in- obligationsLRB096 of02025 theRCE United12038 Statesb governmentsuppliers orfor itsthe agenciesengineering, orprocurement, ofand Nationalconstruction Mortgageof Associationsthe establishedcomponents bycomprising orthe underfacility and the Nationalestimated Housingcosts Act,of 1201operation U.S.C.and maintenance of the facility.

1701The etreport seq.,must orbe inprovided mortgageto participationthe certificatesGeneral representingAssembly undividedand interests in specified, first-lien conventional residential Illinois mortgages that are underwritten, insured, guaranteed, or purchased by the FederalAgency Homeon Loan Mortgage Corporation or inbefore AffordableApril Housing30, Program2010. Trust Fund Bonds or Notes as defined in and issued pursuant to the Illinois Housing Development Act.

AllThe suchfacility obligationscost report shall beinclude consideredall asoff cashthe andfollowing: may be delivered over as cash by a State Treasurer to his successor.

SB0052(1) EngrossedAn -estimate 2 - LRB096 02025 RCE 12038 b The State Treasurer may, with the approval of the Governor,capital purchasecost anyof state bonds with any money in the Statecore Treasuryplant thatbased hason beena setfront-end asideengineering and helddesign forstudy. the payment of the principal of and interest on the bonds.

The bondscore plant shall beinclude consideredall ascivil, cashstructural, andmechanical, mayelectrical, becontrol, deliveredand oversafety assystems. cash by the State Treasurer to his successor.

The Statequoted Treasurerconstruction may,costs withshall thebe approvalexpressed of the Governor, invest or reinvest any State money in thenominal treasurydollars thatas isof not needed for current expenditure due or about to become due, or any money in the Statedate Treasury that has been set aside and held for the paymentquote ofis theprepared principal of and theshall interestinclude: 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;

provided,(A) however,capitalized thatfinancing investmentscosts mayduring beconstruction; made only in those savings and loan or building and loan associations the shares and withdrawable accounts or other forms of investment securities of which are insured by the Federal Deposit Insurance Corporation.

The(B) Statetaxes, Treasurerinsurance, may not invest State money in any savings and loanother orowner's buildingcosts; 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:

SB0052and Engrossed(C) -any 3assumed -escalation LRB096in 02025materials RCEand 12038labor bbeyond Thethe ..................date as of which the construction cost quote is expressed;

Savings(2) An estimate of the capital cost of the balance of the plant, including any capital costs associated with site preparation and Loanremediation, (orsequestration Buildingof carbon dioxide emissions, and Loan)all Associationinterconnects pledgesand notinterfaces required to rejectoperate arbitrarilythe mortgagefacility, loanssuch foras residentialconstruction propertiesor withinbackfeed anypower specificsupply, partpipelines ofto thetransport communitysubstitute servednatural bygas theor savingscarbon anddioxide, loanpotable (orwater buildingsupply, andnatural loan)gas associationsupply, becausewater ofsupply, thewater locationdischarge, ofSB0052 theEnrolled property.- 3 - LRB096 02025 RCE 12038 b landfill, access roads, and coal delivery.

The savingsfront-end engineering and loandesign (orstudy building and loan)the associationcost alsostudy pledgesfor the balance of the plant shall include sufficient design work to makepermit loansquantification availableof onmajor lowcategories andof moderatematerials, incomecommodities residentialand propertylabor throughouthours, theand communityreceipt withinof thequotes limitsfrom vendors of itsmajor legalequipment restrictionsrequired to construct and prudentoperate financialthe practices.facility.

The(3) StateAn Treasureroperating may,and withmaintenance thecost approvalquote ofthat thewill Governor,provide invest or reinvest, at a price not to exceed par, any State money in the treasuryestimated thatcost isof notdelivered neededfuel, forpersonnel, currentmaintenance expenditurescontracts, duechemicals, orcatalysts, aboutconsumables, tospares, becomeand due,other orfixed any money in the State Treasury that has been set aside and heldvariable foroperating the payment of the principal of and interestmaintenance oncosts. any State bonds, in bonds issued by counties or municipal corporations of the State of Illinois.

TheThis Statequote Treasurer may, with the approval of the Governor, invest or reinvest any State money in the Treasury which is notsubject needed for current expenditure, due or about to become due, or any money in the Statefollowing Treasuryrequirements: 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;

provided,(A) SB0052The Engrosseddelivered -fuel 4cost -estimate LRB096shall 02025be RCEprovided 12038 b however, that such loan participations are represented by certificatesa issuedrecognized onlythird byparty banksexpert which are incorporated under the laws of this State or anyexperts otherin state or under the lawsfuel of the United States, and suchtransportation banks,industries. but not the loan participation certificates, are insured by the Federal Deposit Insurance Corporation.

(B) The Statebalance Treasurer may, with the approval of the Governor,operating investand ormaintenance reinvestcost anyquote, Stateexcluding moneydelivered infuel thecosts Treasuryshall thatbe isdeveloped notbased neededon forthe currentinputs expenditure,provided dueby ora aboutduly tolicensed becomeengineering due,firm orperforming any money in the Stateconstruction Treasurycost thatquote, haspotential beenvendors setunder asidelong-term andservice heldagreements for the payment of the principal of and theplant interestoperating onagreements, anyor Staterecognized bonds,third-party inplant anyoperator ofor theoperators. following:

(1)The Bonds,operating notes,and certificatesmaintenance ofcost indebtedness,quote Treasuryshall bills,be orexpressed otherin securitiesnominal nowdollars oras hereafterof issuedthe date that arethe guaranteedquote byis theprepared fulland faithshall include (i) taxes, insurance, and creditSB0052 ofEnrolled the- United4 States- ofLRB096 America02025 RCE 12038 b other owner's costs and (ii) any assumed escalation in materials and labor beyond the date as toof principalwhich the operating and interest.maintenance cost quote is expressed.

(2)(c) Bonds,Reasonable notes,amounts debentures,paid or otherdue similarto obligationsbe ofpaid by the Unitedowner Statesor owners of America,the itsclean agencies,coal andSNG instrumentalities.facility to third parties unrelated to the owner or owners to prepare the facility cost report will may be reimbursed or paid up to $10 million through Coal Development Bonds, through funding authorized pursuant to 20 ILCS 3501/825-65.

(2.5)(d) Bonds,The notes,Agency debentures,shall orreview other similar obligations of a foreign government, other than the Republicfacility ofreport theand Sudan,based on that arereport, guaranteedconsider bywhether theto fullenter faithinto andlong creditterm ofcontracts that government as to principalpurchase andSNG interest,from but only if the foreignfacility governmentpursuant hasto notSection defaulted1-20 and has met its payment obligations in a timely manner on all similar obligations for a period of atthis leastAct. SB0052 Engrossed - 5 - LRB096 02025 RCE 12038 b 25 years immediately before the time of acquiring those obligations.

(3)To Interest-bearingassist savingswith accounts,its interest-bearingevaluation certificates of deposit,the interest-bearingreport, timethe deposits,Agency may hire one or anymore otherexperts investmentsor constitutingconsultants, directthe obligationsreasonable costs of anywhich, banknot asto definedexceed $250,000, shall be paid for by the Illinoisowner Bankingor Act.owners of the clean coal SNG facility submitting the facility cost report.

(4)The Interest-bearingAgency accounts,may certificatesbegin of deposit, or any other investments constituting direct obligations of any savings and loan associations incorporated under the lawsprocess of thisselecting Statesuch orexperts any other state or underconsultants theprior lawsto receipt of the Unitedfacility States.cost report.

(5) Dividend-bearing share accounts, share certificate accounts, or class of share accounts of a credit union chartered under the laws of this State or the laws of the United States;

provided, however, the principal office of the credit union must be located within the State of Illinois.

(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 the term of the investment.

(7) Short-term obligations of corporations organized in the United States 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 SB0052 Engrossed - 6 - LRB096 02025 RCE 12038 b least 2 standard rating services and mature not later than 270 180 days from the date of purchase, (ii) the purchases do not exceed 10% of the corporation's outstanding obligations, (iii) no more than one-third of the public agency's funds are invested in short-term obligations of corporations, and (iv) the corporation has not been 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.

(8) Money market mutual funds registered under the Investment Company Act of 1940, provided that the portfolio of the money market mutual fund is limited to obligations described in this Section and to agreements to repurchase such obligations.

(9) The Public Treasurers' Investment Pool created under Section 17 of the State Treasurer Act or in a fund managed, operated, and administered by a bank.

(10) Repurchase agreements of government securities having the meaning set out in the Government Securities Act of 1986 subject to the provisions of that Act and the regulations issued thereunder.

(11) Investments made in accordance with the Technology Development Act.

For purposes of this Section, "agencies" of the United States Government includes:

SB0052 Engrossed - 7 - LRB096 02025 RCE 12038 b (i) the federal land banks, federal intermediate credit banks, banks for cooperatives, federal farm credit banks, or any other entity authorized to issue debt obligations under the Farm Credit Act of 1971 (12 U.S.C.

2001 et seq.) and Acts amendatory thereto;

(ii) the federal home loan banks and the federal home loan mortgage corporation;