093_HB0277ham001

 










                                     LRB093 05884 JLS 12298 a

 1                     AMENDMENT TO HOUSE BILL 277

 2        AMENDMENT NO.     .  Amend House Bill  277  by  replacing
 3    everything after the enacting clause with the following:

 4        "Section 5. The Deposit of State Moneys Act is amended by
 5    adding Sections 16.3, 16.4, and 16.5 as follows:

 6        (15 ILCS 520/16.3 new)
 7        Sec. 16.3.  Large financial institutions; compliance with
 8    the Community Reinvestment Act of 1977.
 9        (a)  In  addition  to any other requirements of this Act,
10    the State Treasurer may not deposit  State  moneys  in  large
11    financial  institutions  that do not meet the requirements of
12    subsections (b) and (c) of this Section.
13        (b)  If the depositary is subject  to  federal  Community
14    Reinvestment  Act  of  1977  provisions applicable to a large
15    financial institution, the State Treasurer  may  not  deposit
16    State moneys with the depositary unless the depositary has an
17    overall  rating of satisfactory or better under the Community
18    Reinvestment Act of 1977. If, after State  moneys  have  been
19    deposited,   the  depositary's  rating  under  the  Community
20    Reinvestment Act of 1977 falls below a  satisfactory  rating,
21    the  State  Treasurer may not make any additional deposits of
22    State  moneys  with  that  depositary.   Existing   deposits,
 
                            -2-      LRB093 05884 JLS 12298 a
 1    however, may remain at the depositary until maturity.
 2        (c)  In  addition  to the requirements of subsection (b),
 3    if  the  depositary  is  subject  to  the  federal  Community
 4    Reinvestment Act of 1977, the State Treasurer may not deposit
 5    State moneys with a depositary if that depositary has a  less
 6    than  satisfactory  rating  for  the depositaries performance
 7    tests for lending, investment, or service under the Community
 8    Reinvestment Act of 1977. If, after State  moneys  have  been
 9    deposited,   the  depositary's  rating  under  the  Community
10    Reinvestment Act of 1977 falls below  a  satisfactory  rating
11    for  any of its performance tests for lending, investment, or
12    service, the State Treasurer  may  not  make  any  additional
13    deposits  of  State  moneys  with  that  depositary. Existing
14    deposits,  however,  may  remain  at  the  depositary   until
15    maturity.
16        (d)  As   used   in   this   Section,   "large  financial
17    institution" means a financial  institution  that  has  total
18    assets of $250,000,000 or more.

19        (15 ILCS 520/16.4 new)
20        Sec. 16.4.  Small financial institutions; Compliance with
21    the Community Reinvestment Act of 1977.
22        (a)  In  addition  to any other requirements of this Act,
23    the State Treasurer may not deposit  State  moneys  in  small
24    financial  institutions  that do not meet the requirements of
25    subsections (b) and (c) of this Section.
26        (b)  If the depositary is subject  to  federal  Community
27    Reinvestment  Act  of  1977  provisions applicable to a small
28    financial institution, the State Treasurer  may  not  deposit
29    State moneys with the depositary unless the depositary has an
30    overall  rating of satisfactory or better under the Community
31    Reinvestment Act of 1977. If after  State  moneys  have  been
32    deposited,   the  depositary's  rating  under  the  Community
33    Reinvestment Act of 1977 falls below a  satisfactory  rating,
 
                            -3-      LRB093 05884 JLS 12298 a
 1    the  State  Treasurer may not make any additional deposits of
 2    State  moneys  with  that  depositary.   Existing   deposits,
 3    however, may remain at the depositary until maturity.
 4        (c)  In  addition  to the requirements of subsection (b),
 5    if  the  depositary  is  subject  to  the  federal  Community
 6    Reinvestment Act of 1977, the State Treasurer may not deposit
 7    State moneys with a depositary if that depositary has a  less
 8    than  satisfactory  rating  for  the depositaries performance
 9    tests for lending, investment, or service under the Community
10    Reinvestment Act of 1977. If, after State  moneys  have  been
11    deposited,   the  depositary's  rating  under  the  Community
12    Reinvestment Act of 1977 falls below  a  satisfactory  rating
13    for  any of its performance tests for lending, investment, or
14    service, the State Treasurer  may  not  make  any  additional
15    deposits  of  State  moneys  with  that  depositary. Existing
16    deposits,  however,  may  remain  at  the  depositary   until
17    maturity.
18        (d)  As   used   in   this   Section,   "small  financial
19    institution" means a financial  institution  that  has  total
20    assets of less than $250,000,000.

21        (15 ILCS 520/16.5 new)
22        Sec.  16.5.  Review  of  records  for  violations of fair
23    lending practices.
24        (a)  At least once each year, the State  Treasurer  shall
25    examine  the  public  records of the Office of Banks and Real
26    Estate, the Office of the Comptroller of  the  Currency,  the
27    Board of Governors of the Federal Reserve System, the Federal
28    Deposit  Insurance  Corporation,  and  the  Office  of Thrift
29    Supervision to identify depositaries that have violated  fair
30    lending  laws.  If the Treasurer learns that a depositary has
31    been the subject of a final  administrative  adjudication  by
32    any   of   these   agencies  and  such  final  administrative
33    adjudication has determined a violation of fair lending  laws
 
                            -4-      LRB093 05884 JLS 12298 a
 1    within the preceding 5 years, the depositary shall be removed
 2    from  the  list  of  approved  depositaries  and shall not be
 3    eligible for the deposit of State moneys.
 4        (b)  The State Treasurer shall make the  results  of  the
 5    examination  made  under  this  Section  available  to public
 6    agencies.

 7        Section 10.  The Public Funds Investment Act  is  amended
 8    by adding Sections 8, 9, and 10 as follows:

 9        (30 ILCS 235/8 new)
10        Sec.  8.  Large  financial  institutions; compliance with
11    the Community Reinvestment Act of 1977.
12        (a)  In addition to any other requirements of this Act, a
13    public agency may not deposit public funds in large financial
14    institutions that do not meet the requirements of subsections
15    (b) and (c) of this Section.
16        (b)  If the depositary is subject  to  federal  Community
17    Reinvestment  Act  of  1977  provisions applicable to a large
18    financial institution, a public agency may not deposit public
19    funds with  the  depositary  unless  the  depositary  has  an
20    overall  rating of satisfactory or better under the Community
21    Reinvestment Act of 1977. If, after public  funds  have  been
22    deposited,   the  depositary's  rating  under  the  Community
23    Reinvestment Act of 1977 falls below a  satisfactory  rating,
24    the  State  Treasurer may not make any additional deposits of
25    public  funds  with  that  depositary.   Existing   deposits,
26    however, may remain at the depositary until maturity.
27        (c)  In  addition  to the requirements of subsection (b),
28    if  the  depositary  is  subject  to  the  federal  Community
29    Reinvestment Act of 1977, a public  agency  may  not  deposit
30    public  funds with a depositary if that depositary has a less
31    than satisfactory rating  for  the  depositaries  performance
32    tests for lending, investment, or service under the Community
 
                            -5-      LRB093 05884 JLS 12298 a
 1    Reinvestment  Act  of  1977. If, after public funds have been
 2    deposited,  the  depositary's  rating  under  the   Community
 3    Reinvestment  Act  of  1977 falls below a satisfactory rating
 4    for any of its performance tests for lending, investment,  or
 5    service, a public agency may not make any additional deposits
 6    of  public  funds  with  that  depositary. Existing deposits,
 7    however, may remain at the depositary until maturity.
 8        (d)  As  used   in   this   Section,   "large   financial
 9    institution"  means  a  financial  institution that has total
10    assets of $250,000,000 or more.

11        (30 ILCS 235/9 new)
12        Sec. 9.  Small financial  institutions;  Compliance  with
13    the Community Reinvestment Act of 1977.
14        (a)  In addition to any other requirements of this Act, a
15    public agency may not deposit public funds in small financial
16    institutions that do not meet the requirements of subsections
17    (b) and (c) of this Section.
18        (b)  If  the  depositary  is subject to federal Community
19    Reinvestment Act of 1977 provisions  applicable  to  a  small
20    financial institution, a public agency may not deposit public
21    funds  with  the  depositary  unless  the  depositary  has an
22    overall rating of satisfactory or better under the  Community
23    Reinvestment  Act  of  1977.  If after public funds have been
24    deposited,  the  depositary's  rating  under  the   Community
25    Reinvestment Act of 1977 falls below a satisfactory rating, a
26    public  agency may not make any additional deposits of public
27    funds with that depositary. Existing deposits,  however,  may
28    remain at the depositary until maturity.
29        (c)  In  addition  to the requirements of subsection (b),
30    if  the  depositary  is  subject  to  the  federal  Community
31    Reinvestment Act of 1977, a public  agency  may  not  deposit
32    public  funds with a depositary if that depositary has a less
33    than satisfactory rating  for  the  depositaries  performance
 
                            -6-      LRB093 05884 JLS 12298 a
 1    tests for lending, investment, or service under the Community
 2    Reinvestment  Act  of  1977. If, after public funds have been
 3    deposited,  the  depositary's  rating  under  the   Community
 4    Reinvestment  Act  of  1977 falls below a satisfactory rating
 5    for any of its performance tests for lending, investment,  or
 6    service, a public agency may not make any additional deposits
 7    of  public  funds  with  that  depositary. Existing deposits,
 8    however, may remain at the depositary until maturity.
 9        (d)  As  used   in   this   Section,   "small   financial
10    institution"  means  a  financial  institution that has total
11    assets of less than $250,000,000.

12        (30 ILCS 235/10 new)
13        Sec.  10.  Review  of  records  for  violations  of  fair
14    lending practices. At least once each year, a  public  agency
15    shall contact the State Treasurer to ascertain the results of
16    the  State  Treasurer's  examination  conducted under Section
17    16.5 of the  Deposit  of  State  Moneys  Act.  If  the  State
18    Treasurer  has removed a depositary from the list of approved
19    depositaries, a public agency may not  deposit  public  funds
20    with that depositary.".