Bill Text: IL HB0277 | 2013-2014 | 98th General Assembly | Amended
Bill Title: Amends the Deposit of State Moneys Act. Makes a technical change in a Section concerning investment in minority-owned financial institutions.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2014-12-03 - Session Sine Die [HB0277 Detail]
Download: Illinois-2013-HB0277-Amended.html
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| 1 | AMENDMENT TO HOUSE BILL 277
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| 2 | AMENDMENT NO. ______. Amend House Bill 277 by replacing | ||||||
| 3 | everything after the enacting clause with the following:
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| 4 | "Section 5. The Public Funds Investment Act is amended by | ||||||
| 5 | changing Section 2.5 as follows:
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| 6 | (30 ILCS 235/2.5)
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| 7 | Sec. 2.5. Investment policy.
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| 8 | (a) Investment of public funds by a public
agency shall be
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| 9 | governed by a written investment policy adopted by the
public
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| 10 | agency. The level of detail and complexity of the investment | ||||||
| 11 | policy shall be
appropriate to the
nature of the funds, the | ||||||
| 12 | purpose for the funds, and the amount of the public
funds | ||||||
| 13 | within the
investment portfolio. The policy shall address | ||||||
| 14 | safety of principal, liquidity
of funds, and return
on | ||||||
| 15 | investment and shall require that the investment portfolio be | ||||||
| 16 | structured in
such manner as to
provide sufficient liquidity to | ||||||
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| 1 | pay obligations as they come due. In addition,
the investment
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| 2 | policy shall include or address the following:
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| 3 | (1) a listing of authorized investments;
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| 4 | (2) a rule, such as the "prudent person rule", | ||||||
| 5 | establishing the standard
of care that must
be maintained | ||||||
| 6 | by the persons investing the public funds;
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| 7 | (3) investment guidelines that are appropriate to the | ||||||
| 8 | nature of the
funds, the
purpose for the funds, and the | ||||||
| 9 | amount of the public funds within the investment
portfolio;
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| 10 | (4) a policy regarding diversification of the | ||||||
| 11 | investment portfolio
that is
appropriate to the nature of | ||||||
| 12 | the funds, the purpose for the funds, and the
amount of the | ||||||
| 13 | public
funds within the investment portfolio;
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| 14 | (5) guidelines regarding collateral requirements, if | ||||||
| 15 | any, for the
deposit of public funds in a financial | ||||||
| 16 | institution made pursuant to this Act,
and, if applicable, | ||||||
| 17 | guidelines for contractual arrangements for the custody | ||||||
| 18 | and
safekeeping of that collateral;
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| 19 | (6) a policy regarding the establishment of a system of | ||||||
| 20 | internal controls
and written operational
procedures
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| 21 | designed to prevent losses of funds that might arise from | ||||||
| 22 | fraud, employee
error, misrepresentation by third parties, | ||||||
| 23 | or imprudent actions by employees of
the entity;
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| 24 | (7) identification of the chief investment officer who
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| 25 | is responsible for establishing the internal controls and
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| 26 | written procedures for
the operation of the investment | ||||||
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| 1 | program;
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| 2 | (8) performance measures that are appropriate to the | ||||||
| 3 | nature of the funds,
the purpose
for the funds, and the | ||||||
| 4 | amount of the public funds within the investment
portfolio;
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| 5 | (9) a policy regarding appropriate periodic review of | ||||||
| 6 | the investment
portfolio, its
effectiveness in meeting the | ||||||
| 7 | public agency's needs for safety, liquidity,
rate of | ||||||
| 8 | return, and
diversification, and its general performance;
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| 9 | (10) a policy establishing at least quarterly written | ||||||
| 10 | reports of
investment
activities by the
public agency's | ||||||
| 11 | chief financial officer for submission to the governing | ||||||
| 12 | body
and chief executive
officer of the public agency. The | ||||||
| 13 | reports shall include information regarding
securities in | ||||||
| 14 | the
portfolio by class or
type, book value, income earned, | ||||||
| 15 | and market value as of the report date;
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| 16 | (11) a policy regarding the selection of investment | ||||||
| 17 | advisors, money
managers, and financial institutions; and
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| 18 | (12) a policy regarding ethics and conflicts of | ||||||
| 19 | interest; and .
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| 20 | (13) in the case of the State, a policy requiring the | ||||||
| 21 | investment of (i) at least 10% of all public funds that are | ||||||
| 22 | in the State's custody with insured depository | ||||||
| 23 | institutions having an outstanding record of meeting | ||||||
| 24 | community credit needs, as defined in the federal
Community | ||||||
| 25 | Reinvestment Act of 1977, and (ii) at least another 10% of | ||||||
| 26 | all public funds that are in the State's custody with | ||||||
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| 1 | insured depository institutions having a satisfactory | ||||||
| 2 | record of meeting community credit needs, as defined in the | ||||||
| 3 | federal
Community Reinvestment Act of 1977. | ||||||
| 4 | (b) For purposes of the State or a county, the investment | ||||||
| 5 | policy shall be
adopted by the elected treasurer and presented | ||||||
| 6 | to the chief executive officer
and the governing body. For | ||||||
| 7 | purposes of any other public agency, the
investment policy | ||||||
| 8 | shall be adopted by the governing body of the public agency.
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| 9 | (c) The investment policy shall be made available to the | ||||||
| 10 | public at the main
administrative office of the public agency.
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| 11 | (d) The written investment policy required under this | ||||||
| 12 | Section shall be
developed and implemented by
January 1, 2000.
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| 13 | (Source: P.A. 90-688, eff. 7-31-98.)".
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