Bill Text: IL SB2864 | 2015-2016 | 99th General Assembly | Enrolled

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

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Bill Title: Amends the Deposit of State Moneys Act. Allows the State Treasurer to satisfy the requirement to make a monthly report to the Governor with a copy for public inspection by posting the monthly report on the Treasurer's official Internet website. Allows the Treasurer to, with the approval of the Governor, invest or reinvest (regardless of whether it is at a price exceeding par) any State money in the treasury that is not needed for current expenditures due or about to become due, or any money in the State Treasury that has been set aside. Provides that the Treasurer may, with the approval of the Governor, invest or reinvest any State money in the treasury that is not needed for current expenditures due or about to become due, or any money in the State Treasury that has been set aside, in obligations (currently, short-term obligations) of either corporations or limited liability companies organized in the United States, that have significant presence in this State, with assets exceeding $500,000,000 if, among other requirements, 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 (currently, 270 days) from the date of purchase. Effective immediately.

Spectrum: Partisan Bill (Democrat 6-0)

Status: (Passed) 2016-08-19 - Public Act . . . . . . . . . 99-0856 [SB2864 Detail]

Download: Illinois-2015-SB2864-Enrolled.html

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AN ACT concerning State government.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. 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

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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

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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 Deposit of State Moneys Act is amended by
changing Sections 18 and 22.5 as follows:
(15 ILCS 520/18) (from Ch. 130, par. 37)
Sec. 18. 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

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association as interest on moneys so deposited. Such statement
shall contain the name of each bank or savings and loan
association, and the amount in such bank or savings and loan
association subject to draft at the close of business on the
last day of the month for which the report is made, and on the
last day of the month next preceding. A copy of such report
shall be retained by the Treasurer and shall be made available
for inspection by the public at any reasonable time. The
Treasurer may satisfy the requirements of this Section by
posting the monthly report on the Treasurer's official Internet
website.
(Source: P.A. 83-541.)
(15 ILCS 520/22.5) (from Ch. 130, par. 41a)
(For force and effect of certain provisions, see Section 90
of P.A. 94-79)
Sec. 22.5. Permitted investments. The State Treasurer may,
with the approval of the Governor, invest and reinvest any
State money in the treasury which is not needed for current
expenditures due or about to become due, in obligations of the
United States government or its agencies or of National
Mortgage Associations established by or under the National
Housing Act, 1201 U.S.C. 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

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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.
All such obligations shall be considered as cash and may be
delivered over as cash by a State Treasurer to his successor.
The State Treasurer may, with the approval of the Governor,
purchase any state bonds with any money in the State Treasury
that has been set aside and held for the payment of the
principal of and interest on the bonds. The bonds shall be
considered as cash and may be delivered over as cash by the
State Treasurer to his successor.
The State Treasurer may, with the approval of the Governor,
invest or reinvest any State money in the treasury that is not
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; provided,
however, that investments may be 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 State Treasurer may not invest State money in any

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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 pledges not to reject arbitrarily
mortgage loans for residential properties within any
specific part of the community served by the savings and
loan (or building and loan) association because of the
location of the property. The savings and loan (or building
and loan) association also pledges to make loans available
on low and moderate income residential property throughout
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, at a price not to exceed par, any State
money in the treasury that is not needed for current
expenditures 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 interest on any State bonds, in bonds
issued by counties or municipal corporations of the State of
Illinois.
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

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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; provided,
however, that such loan participations are represented by
certificates issued only by banks which are incorporated under
the laws of this State or any other state or under the laws of
the United States, and such banks, but not the loan
participation certificates, are insured by the Federal Deposit
Insurance Corporation.
The State Treasurer may, with the approval of the Governor,
invest or reinvest any State money in the Treasury that is not
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:
(1) Bonds, notes, certificates of indebtedness,
Treasury bills, or other securities now or hereafter issued
that are guaranteed by the full faith and credit of the
United States of America as to principal and interest.
(2) Bonds, notes, debentures, or other similar
obligations of the United States of America, its agencies,
and instrumentalities.
(2.5) Bonds, notes, debentures, or other similar
obligations of a foreign government, other than the

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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.
(3) Interest-bearing savings accounts,
interest-bearing certificates of deposit, interest-bearing
time deposits, or any other investments constituting
direct obligations of any bank as defined by the Illinois
Banking Act.
(4) Interest-bearing accounts, certificates of
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.
(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

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the term of the investment.
(7) Short-term obligations of either corporations or
limited liability companies 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 least 2 standard rating
services and mature not later than 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 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

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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. The authorization of the
Treasurer to invest in new obligations under this paragraph
shall expire on June 30, 2019.
(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, as now or hereafter amended or succeeded, subject
to the provisions of that Act and the regulations issued
thereunder.
(11) Investments made in accordance with the

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Technology Development Act.
For purposes of this Section, "agencies" of the United
States Government includes:
(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;
(iii) the Commodity Credit Corporation; and
(iv) any other agency created by Act of Congress.
The Treasurer may, with the approval of the Governor, lend
any securities acquired under this Act. However, securities may
be lent under this Section only in accordance with Federal
Financial Institution Examination Council guidelines and only
if the securities are collateralized at a level sufficient to
assure the safety of the securities, taking into account market
value fluctuation. The securities may be collateralized by cash
or collateral acceptable under Sections 11 and 11.1.
(Source: P.A. 96-469, eff. 8-14-09; 96-795, eff. 7-1-10 (see
Section 5 of P.A. 96-793 for the effective date of changes made
by P.A. 96-795); 96-870, eff. 1-21-10; 97-277, eff. 8-8-11.)
Section 99. Effective date. This Act takes effect upon
becoming law.