Bill Text: IL HB1562 | 2013-2014 | 98th General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Amends the Counties Code. In a Section concerning the deposit of public funds, requires a co-signer, in addition to the treasurer, on all municipal accounts. Requires the county board to review certain books of account on a semi-annual basis. Amends the Illinois Municipal Code. Provides that the corporate authorities shall inspect the treasurer's books and accounts on a semi-annual basis. Removes a provision that requires the books and accounts to be subject to inspection at any time by a member of the corporate authorities. In a Section concerning treasurer's reports, requires the corporate authorities to review certain account statements on a monthly basis. Further provides that in addition to the treasurer, a co-signer shall be required on all municipal accounts. Provides that the treasurer shall report to the corporate authorities on a semi-annual basis (now, as often as they require) a full and detailed account of all receipts and expenditures of the municipality. Requires the municipal clerk to provide the corporate authorities with a copy of any annual account. Makes other changes. Effective immediately.

Spectrum: Partisan Bill (Republican 3-0)

Status: (Failed) 2014-12-03 - Session Sine Die [HB1562 Detail]

Download: Illinois-2013-HB1562-Introduced.html

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98TH GENERAL ASSEMBLY State of Illinois 2013 and 2014 HB1562 Introduced , by Rep. Tom Demmer SYNOPSIS AS INTRODUCED:
55 ILCS 5/3-10009 from Ch. 34, par. 3-10009
55 ILCS 5/3-10011 from Ch. 34, par. 3-10011
65 ILCS 5/3.1-35-40 from Ch. 24, par. 3.1-35-40
65 ILCS 5/3.1-35-45 from Ch. 24, par. 3.1-35-45
65 ILCS 5/3.1-35-50 from Ch. 24, par. 3.1-35-50
65 ILCS 5/3.1-35-60 from Ch. 24, par. 3.1-35-60
65 ILCS 5/3.1-35-65 from Ch. 24, par. 3.1-35-65
Amends the Counties Code. In a Section concerning the deposit of public funds, requires a co-signer, in addition to the treasurer, on all municipal accounts. Requires the county board to review certain books of account on a semi-annual basis. Amends the Illinois Municipal Code. Provides that the corporate authorities shall inspect the treasurer's books and accounts on a semi-annual basis. Removes a provision that requires the books and accounts to be subject to inspection at any time by a member of the corporate authorities. In a Section concerning treasurer's reports, requires the corporate authorities to review certain account statements on a monthly basis. Further provides that in addition to the treasurer, a co-signer shall be required on all municipal accounts. Provides that the treasurer shall report to the corporate authorities on a semi-annual basis (now, as often as they require) a full and detailed account of all receipts and expenditures of the municipality. Requires the municipal clerk to provide the corporate authorities with a copy of any annual account. Makes other changes. Effective immediately.
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A BILL FOR
HB1562 LRB098 10396 MRW 40587 b
AN ACT concerning local government.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Counties Code is amended by changing
Sections 3-10009 and 3-10011 as follows:
(55 ILCS 5/3-10009) (from Ch. 34, par. 3-10009)
Sec. 3-10009. Deposit of public funds.
(a) In counties having a population of less than 150,000
the county board, when requested by the county treasurer, shall
designate one or more banks, savings and loan associations,
savings banks, or credit unions in which the funds and other
public moneys in the custody of the county treasurer may be
kept. In addition to the treasurer, a co-signer shall be
required on all county accounts. The co-signer shall be
designated by the county board by resolution. When and when a
bank, savings and loan association, savings bank, or credit
union has been designated as a depository it shall continue as
such until 10 days have elapsed after a new depository is
designated and has qualified by furnishing the statements of
resources and liabilities as is required by this Section. When
a new depository is designated, the county board shall notify
the sureties of the county treasurer of that fact, in writing,
at least 5 days before the transfer of funds. The county

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treasurer shall be discharged from responsibility for all funds
and moneys which he deposits in a depository so designated
while such funds and moneys are so deposited.
No bank, savings and loan association, savings bank, or
credit union shall receive public funds as permitted by this
Section, unless it has complied with the requirements
established pursuant to Section 6 of "An Act relating to
certain investments of public funds by public agencies",
approved July 23, 1943, as now or hereafter amended.
(b) In addition to any other investments or deposits
authorized under this Code, counties are authorized to invest
the funds and public moneys in the custody of the County
Treasurer in accordance with the Public Funds Investment Act.
(Source: P.A. 97-129, eff. 7-14-11.)
(55 ILCS 5/3-10011) (from Ch. 34, par. 3-10011)
Sec. 3-10011. Inspection of books of account.
(a) Said books of account shall be free to the inspection
of all persons wishing to examine the same. The county board
shall review these books of account on a semi-annual basis.
(b) The county treasurer shall make available to the county
board any Entity Identification Numbers assigned to the county.
The county board shall review the payments made to the county
from the State through the Vendor Payments portal on the State
Comptroller's website on a semi-annual basis.
(Source: P.A. 86-962.)

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Section 10. The Illinois Municipal Code is amended by
changing Sections 3.1-35-40, 3.1-35-45, 3.1-35-50, 3.1-35-60,
and 3.1-35-65 as follows:
(65 ILCS 5/3.1-35-40) (from Ch. 24, par. 3.1-35-40)
Sec. 3.1-35-40. Treasurer; duties.
(a) The municipal treasurer shall receive all money
belonging to the municipality and shall keep the treasurer's
books and accounts in the manner prescribed by ordinance. These
books and accounts shall always be subject to the inspection of
any member of the corporate authorities. The corporate
authorities shall inspect these books and accounts on a
semi-annual basis. The municipality may, however, by ordinance
designate a person or institution which, as bond trustee, shall
receive from the county collector amounts payable to the
municipality as taxes levied pursuant to a bond issuance.
(b) The treasurer shall keep a separate account of each
fund or appropriation and the debits and credits belonging to
the fund or appropriation.
(c) The treasurer shall give every person paying money into
the treasury a receipt, specifying the date of payment and upon
what account paid. The treasurer shall file copies of these
receipts with the clerk, with the treasurer's monthly reports.
If the treasurer has possession of money properly appropriated
to the payment of any warrant lawfully drawn upon the

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treasurer, the treasurer shall pay the money specified in the
warrant to the person designated by the warrant.
(d) The municipal treasurer shall make available to the
corporate authorities any Entity Identification Numbers
assigned to the municipality. The corporate authorities shall
review the payments made to the municipality from the State
through the Vendor Payments portal on the State Comptroller's
website on a semi-annual basis.
(Source: P.A. 87-1119.)
(65 ILCS 5/3.1-35-45) (from Ch. 24, par. 3.1-35-45)
Sec. 3.1-35-45. Treasurer; reports. At the end of every
month, and oftener if required by the corporate authorities,
the municipal treasurer shall render an account under oath to
the corporate authorities, or to an officer designated by
ordinance, showing the state of the treasury at the date of the
account and the balance of money in the treasury. The treasurer
shall accompany the account with a statement of all money
received into the treasury and on what account, together with
all warrants redeemed and paid by the treasurer. On the day the
treasurer renders an account, these warrants, with all vouchers
held by the treasurer, shall be delivered to the municipal
clerk and filed, together with the account, in the clerk's
office. All paid warrants shall be marked "paid". The treasurer
shall keep a register of all warrants, which shall describe
each warrant, showing its date, amount, and number, the fund

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from which paid, the name of the person to whom paid, and when
paid. The corporate authorities shall review this account
statement on a monthly basis after it is filed with the clerk's
office.
(Source: P.A. 87-1119.)
(65 ILCS 5/3.1-35-50) (from Ch. 24, par. 3.1-35-50)
Sec. 3.1-35-50. Treasurer; deposit of funds.
(a) The municipal treasurer may be required to keep all
funds and money in the treasurer's custody belonging to the
municipality in places of deposit designated by ordinance. The
When requested by the municipal treasurer, the corporate
authorities shall designate one or more banks or savings and
loan associations in which may be kept the funds and money of
the municipality in the custody of the treasurer. In addition
to the treasurer, a co-signer shall be required on all
municipal accounts. The co-signer shall be designated by the
city council or village board by resolution. When a bank or
savings and loan association has been designated as a
depository, it shall continue as a depository until 10 days
have elapsed after a new depository is designated and has
qualified by furnishing the statements of resources and
liabilities as required by this Section. When a new depository
is designated, the corporate authorities shall notify the
sureties of the municipal treasurer of that fact in writing at
least 5 days before the transfer of funds. The treasurer shall

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be discharged from responsibility for all funds or money that
the treasurer deposits in a designated bank or savings and loan
association while the funds and money are so deposited.
(b) The municipal treasurer may require any bank or savings
and loan association to deposit with the treasurer securities
or mortgages that have a market value at least equal to the
amount of the funds or moneys of the municipality deposited
with the bank or savings and loan association that exceeds the
insurance limitation provided by the Federal Deposit Insurance
Corporation or the Federal Savings and Loan Insurance
Corporation.
(c) The municipal treasurer may enter into agreements of
any definite or indefinite term regarding the deposit,
redeposit, investment, reinvestment, or withdrawal of
municipal funds.
(d) Notwithstanding any other provision of this Act or any
other law, each official custodian of municipal funds,
including, without limitation, each municipal treasurer or
finance director or each person properly designated as the
official custodian for municipal funds, including, without
limitation, each person properly designated as official
custodian for funds held by an intergovernmental risk
management entity, self-insurance pool, waste management
agency, or other intergovernmental entity composed solely of
participating municipalities, is permitted to:
(i) combine moneys from more than one fund of a single

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municipality, risk management entity, self-insurance pool,
or other intergovernmental entity composed solely of
participating municipalities for the purpose of investing
such moneys;
(ii) join with any other official custodians or
treasurers of municipal, intergovernmental risk management
entity, self-insurance pool, waste management agency, or
other intergovernmental entity composed solely of
participating municipalities for the purpose of jointly
investing the funds of which the official custodians or
treasurers have custody; and
(iii) enter into agreements of any definite or
indefinite term regarding the redeposit, investment, or
withdrawal of municipal, risk management entity,
self-insurance agency, waste management agency, or other
intergovernmental entity funds.
When funds are combined for investment purposes as
authorized in this Section, the moneys combined for those
purposes shall be accounted for separately in all respects, and
the earnings from such investment shall be separately and
individually computed, recorded, and credited to the fund,
municipality, intergovernmental risk management entity,
self-insurance pool, waste management agency, or other
intergovernmental entity, as the case may be, for which the
investment was acquired.
Joint investments shall be made only in investments

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authorized by law for investment of municipal funds. The grant
of authority contained in this subsection is cumulative,
supplemental, and in addition to all other power or authority
granted by any other law and shall not be construed as a
limitation of any power and authority otherwise granted.
(e) No bank or savings and loan association shall receive
public funds as permitted by this Section unless it has
complied with the requirements established by Section 6 of the
Public Funds Investment Act.
(Source: P.A. 89-592, eff. 8-1-96.)
(65 ILCS 5/3.1-35-60) (from Ch. 24, par. 3.1-35-60)
Sec. 3.1-35-60. Treasurer; receipts and expenditures. The
municipal treasurer shall report to the corporate authorities
on a semi-annual basis , as often as they require, a full and
detailed account of all receipts and expenditures of the
municipality, as shown by the treasurer's books, up to the time
of the report.
(Source: P.A. 87-1119.)
(65 ILCS 5/3.1-35-65) (from Ch. 24, par. 3.1-35-65)
Sec. 3.1-35-65. Treasurer; annual accounts.
(a) Within 6 months after the end of each fiscal year, the
treasurer of each municipality having a population of less than
500,000, as determined by the last preceding federal census,
shall annually prepare and file with the clerk of the

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municipality an account of moneys received and expenditures
incurred during the preceding fiscal year as specified in this
Section. The treasurer shall show in the account:
(1) All moneys received by the municipality,
indicating the total amounts, in the aggregate, received in
each account of the municipality, with a general statement
concerning the source of receipts. In this paragraph, the
term "account" does not mean each individual taxpayer,
householder, licensee, utility user, or other persons
whose payments to the municipality are credited to a
general account.
(2) Except as provided in paragraph (3) of this
subsection (a), all moneys paid out by the municipality
where the total amount paid during the fiscal year exceeds
$2,500 in the aggregate, giving the name of each person to
whom moneys were paid and the total paid to each person.
(3) All moneys paid out by the municipality as
compensation for personal services, giving the name of each
person to whom moneys were paid and the total amount paid
to each person from each account, except that the treasurer
may elect to report the compensation for personal services
of all personnel by name, listing each employee in one of
the following categories:
(A) under $25,000.00;
(B) $25,000.00 to $49,999.99;
(C) $50,000.00 to $74,999.99;

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(D) $75,000.00 to $99,999.99;
(E) $100,000.00 to $124,999.99; or
(F) $125,000.00 and over.
(4) A summary statement of operations for all funds and
account groups of the municipality, as excerpted from the
annual financial report as filed with the appropriate State
agency.
(b) Upon receipt of the account from the municipal
treasurer, the municipal clerk shall publish the account at
least once in one or more newspapers published in the
municipality or, if no newspaper is published in the
municipality, then in one or more newspapers having a general
circulation within the municipality. In municipalities with a
population of less than 500 in which no newspaper is published,
however, publication may be made by posting a copy of the
account in 3 prominent places within the municipality.
(c) Upon receipt of the account from the municipal
treasurer, the municipal clerk shall provide all corporate
authorities with a copy of this account, that they shall be
required to review within 30 days.
(Source: P.A. 92-354, eff. 8-15-01.)
Section 99. Effective date. This Act takes effect upon
becoming law.