Bill Text: IL HB5806 | 2019-2020 | 101st General Assembly | Introduced
Bill Title: Amends the Public Funds Investment Act. Provides that when investing or depositing public funds, each public agency shall invest or deposit such funds with or in financial institutions that have a board of directors consisting of at least 20% persons of color. Provides that a financial institution that does not have a board of directors consisting of at least 20% persons of color may increase or modify its board membership. Provides that any public agency investing or depositing public funds shall divest any previously invested or deposited funds from any financial institution failing to meet specified requirements by January 1, 2021. Defines "persons of color". Makes conforming changes. Effective immediately.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced - Dead) 2020-11-10 - Referred to Rules Committee [HB5806 Detail]
Download: Illinois-2019-HB5806-Introduced.html
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1 | AN ACT concerning finance.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Public Funds Investment Act is amended by | ||||||||||||||||||||||||||
5 | changing Section 7 and by adding Section 7.5 as follows:
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6 | (30 ILCS 235/7) (from Ch. 85, par. 907)
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7 | Sec. 7.
Subject to the requirements of Section 7.5, when | ||||||||||||||||||||||||||
8 | When investing or depositing public funds, each custodian
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9 | shall, to the extent permitted by this Act and by the lawful | ||||||||||||||||||||||||||
10 | and reasonable
performance of his custodial duties, invest or | ||||||||||||||||||||||||||
11 | deposit such funds with or
in minority-owned financial | ||||||||||||||||||||||||||
12 | institutions within this State.
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13 | (Source: P.A. 84-754.)
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14 | (30 ILCS 235/7.5 new) | ||||||||||||||||||||||||||
15 | Sec. 7.5. Investment in financial institutions consisting | ||||||||||||||||||||||||||
16 | of persons of color. | ||||||||||||||||||||||||||
17 | (a) Notwithstanding any provision of law to the contrary, | ||||||||||||||||||||||||||
18 | when investing or depositing public funds, each public agency | ||||||||||||||||||||||||||
19 | shall invest or deposit such funds with or in financial | ||||||||||||||||||||||||||
20 | institutions that have a board of directors consisting of at | ||||||||||||||||||||||||||
21 | least 20% persons of color. A financial institution that does | ||||||||||||||||||||||||||
22 | not have a board of directors consisting of at least 20% |
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1 | persons of color may increase or modify its board membership | ||||||
2 | for the purposes of this Section. | ||||||
3 | (b) Any public agency investing or depositing public funds | ||||||
4 | under this Section shall divest any previously invested or | ||||||
5 | deposited funds from any financial institution failing to meet | ||||||
6 | the requirements of subsection (a) by January 1, 2021. | ||||||
7 | (c) For the purposes of this Section, "persons of color" | ||||||
8 | means: | ||||||
9 | (1) Black or African American. A person having origins | ||||||
10 | in any of the Black racial groups of Africa; and | ||||||
11 | (2) Hispanic or Latino. A person of Cuban, Mexican, | ||||||
12 | Puerto Rican, South or Central American, or other Spanish | ||||||
13 | culture or origin, regardless of race.
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14 | Section 99. Effective date. This Act takes effect upon | ||||||
15 | becoming law.
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