101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB5806
 
Introduced 11/10/2020, by Rep. Emanuel Chris Welch - Anna Moeller and Marcus C. Evans, Jr.
 
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.