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


101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB5806

Introduced , by Rep. Emanuel Chris Welch

SYNOPSIS AS INTRODUCED:
30 ILCS 235/7 from Ch. 85, par. 907
30 ILCS 235/7.5 new

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.
LRB101 21745 RJF 72693 b
FISCAL NOTE ACT MAY APPLY

A BILL FOR

HB5806LRB101 21745 RJF 72693 b
1 AN ACT concerning finance.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Public Funds Investment Act is amended by
5changing Section 7 and by adding Section 7.5 as follows:
6 (30 ILCS 235/7) (from Ch. 85, par. 907)
7 Sec. 7. Subject to the requirements of Section 7.5, when
8When investing or depositing public funds, each custodian
9shall, to the extent permitted by this Act and by the lawful
10and reasonable performance of his custodial duties, invest or
11deposit such funds with or in minority-owned financial
12institutions within this State.
13(Source: P.A. 84-754.)
14 (30 ILCS 235/7.5 new)
15 Sec. 7.5. Investment in financial institutions consisting
16of persons of color.
17 (a) Notwithstanding any provision of law to the contrary,
18when investing or depositing public funds, each public agency
19shall invest or deposit such funds with or in financial
20institutions that have a board of directors consisting of at
21least 20% persons of color. A financial institution that does
22not have a board of directors consisting of at least 20%

HB5806- 2 -LRB101 21745 RJF 72693 b
1persons of color may increase or modify its board membership
2for the purposes of this Section.
3 (b) Any public agency investing or depositing public funds
4under this Section shall divest any previously invested or
5deposited funds from any financial institution failing to meet
6the requirements of subsection (a) by January 1, 2021.
7 (c) For the purposes of this Section, "persons of color"
8means:
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.
14 Section 99. Effective date. This Act takes effect upon
15becoming law.
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