97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB2101

 

Introduced 2/22/2011, by Rep. Emily McAsey

 

SYNOPSIS AS INTRODUCED:
 
55 ILCS 5/3-10009  from Ch. 34, par. 3-10009
55 ILCS 5/3-11002  from Ch. 34, par. 3-11002
55 ILCS 5/3-11003  from Ch. 34, par. 3-11003
55 ILCS 5/3-11004  from Ch. 34, par. 3-11004
55 ILCS 5/3-11006  from Ch. 34, par. 3-11006
55 ILCS 5/3-11007  from Ch. 34, par. 3-11007
55 ILCS 5/3-11009  from Ch. 34, par. 3-11009
55 ILCS 5/3-11010  from Ch. 34, par. 3-11010
55 ILCS 5/3-11011  from Ch. 34, par. 3-11011
55 ILCS 5/3-11013  from Ch. 34, par. 3-11013
55 ILCS 5/3-11018  from Ch. 34, par. 3-11018

    Amends the Counties Code. Changes numerous Sections to provide that a county may deposit public funds into credit unions (currently, only banks or savings and loan associations). Further provides that county moneys may be invested in dividend-bearing share accounts, share certificate accounts, or class of share accounts of a credit union, provided the accounts of that credit union are insured and the credit union's principal office is located within the State of Illinois. Effective immediately.


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A BILL FOR

 

HB2101LRB097 09042 KMW 49176 b

1    AN ACT concerning local government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Counties Code is amended by changing
5Sections 3-10009, 3-11002, 3-11003, 3-11004, 3-11006, 3-11007,
63-11009, 3-11010, 3-11011, 3-11013, and 3-11018 as follows:
 
7    (55 ILCS 5/3-10009)  (from Ch. 34, par. 3-10009)
8    Sec. 3-10009. Deposit of public funds. In counties having a
9population of less than 150,000 the county board, when
10requested by the county treasurer, shall designate one or more
11banks, or savings and loan associations, or credit unions in
12which the funds and other public moneys in the custody of the
13county treasurer may be kept and when a bank, or savings and
14loan association, or credit union has been designated as a
15depository it shall continue as such until 10 days have elapsed
16after a new depository is designated and has qualified by
17furnishing the statements of resources and liabilities as is
18required by this Section. When a new depository is designated,
19the county board shall notify the sureties of the county
20treasurer of that fact, in writing, at least 5 days before the
21transfer of funds. The county treasurer shall be discharged
22from responsibility for all funds and moneys which he deposits
23in a depository so designated while such funds and moneys are

 

 

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1so deposited.
2    No bank, or savings and loan association, or credit union
3shall receive public funds as permitted by this Section, unless
4it has complied with the requirements established pursuant to
5Section 6 of "An Act relating to certain investments of public
6funds by public agencies", approved July 23, 1943, as now or
7hereafter amended.
8(Source: P.A. 86-962.)
 
9    (55 ILCS 5/3-11002)  (from Ch. 34, par. 3-11002)
10    Sec. 3-11002. Designation of depositories. In counties
11having a population of more than 150,000 the county board, when
12requested by the County Treasurer, shall designate one or more
13banks, or savings and loan associations, or credit unions in
14which the funds and other public moneys in the custody of the
15County Treasurer may be kept and when a bank, or savings and
16loan association, or credit union has been designated as a
17depository it shall continue as such until 10 days have elapsed
18after a new depository is designated and has qualified by
19furnishing the statements of resources and liabilities as is
20required by this Section. When a new depository is designated,
21the county board shall notify the sureties of the County
22Treasurer of that fact, in writing, at least 5 days before the
23transfer of funds. The County Treasurer shall be discharged
24from responsibility for all funds and moneys which he deposits
25in a depository so designated while such funds and moneys are

 

 

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1so deposited.
2    No bank, or savings and loan association, or credit union
3shall receive public funds as permitted by this Section, unless
4it has complied with the requirements established pursuant to
5Section 6 of "An Act relating to certain investments of public
6funds by public agencies", approved July 23, 1943, as now or
7hereafter amended.
8(Source: P.A. 86-962.)
 
9    (55 ILCS 5/3-11003)  (from Ch. 34, par. 3-11003)
10    Sec. 3-11003. Classification of funds. For the purpose of
11establishing a control over the withdrawal, in accordance with
12the provisions of this Division, of all county moneys deposited
13in any bank, or savings and loan association, or credit union,
14as hereinafter required, such moneys are hereby classified as
15follows:
16    Class A. All taxes and special assessments received by the
17county treasurer in his capacity as ex officio county collector
18or ex officio town collector, and held by him pending
19distribution to the several governments or authorities
20entitled to receive the same, shall be known as "Class A"
21funds.
22    Class B. All other moneys belonging to the State of
23Illinois or to any political or corporate subdivision thereof,
24except the county, shall be known as "Class B" funds.
25    Class C. All moneys belonging to the county in its

 

 

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1corporate capacity shall be known as "Class C" funds.
2    Class D. All other county moneys as defined in Section
33-11001 shall be known as "Class D" funds.
4(Source: P.A. 86-962.)
 
5    (55 ILCS 5/3-11004)  (from Ch. 34, par. 3-11004)
6    Sec. 3-11004. Deposits by county treasurer. It shall be the
7duty of the county treasurer of such county to deposit daily,
8in separate accounts in accordance with the classification set
9forth in Section 3-11003, to the credit of the county treasurer
10of such county, in one or more banks, or savings and loan
11associations, or credit unions as shall have been selected and
12designated under the terms of this Division and as shall have
13complied with the requirements thereof, all county moneys as
14defined in Section 3-11001, received by him during banking
15hours, and also all such county moneys as he may have received
16on the day previous after banking hours.
17(Source: P.A. 86-962.)
 
18    (55 ILCS 5/3-11006)  (from Ch. 34, par. 3-11006)
19    Sec. 3-11006. Investment of county moneys; release of
20private funds in custody of county treasurer. All county moneys
21shall be invested in one or more of the following: (a)
22interest-bearing savings accounts, interest-bearing
23certificates of deposit or interest-bearing time deposits
24constituting direct obligations of any bank as shall have been

 

 

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1selected and designated under the terms of this Division and as
2shall have complied with the requirements thereof; (b) shares
3or other forms of securities legally issuable by savings and
4loan associations incorporated under the laws of this State or
5any other state or under the laws of the United States,
6provided such shares or securities are insured by the Federal
7Savings and Loan Insurance Corporation; (c) bonds, notes,
8certificates of indebtedness, treasury bills or other
9securities now or hereafter issued, which are guaranteed by the
10full faith and credit of the United States of America as to
11principal and interest; (d) short term discount obligations of
12the Federal National Mortgage Association; and (e)
13dividend-bearing share accounts, share certificate accounts,
14or class of share accounts of a credit union chartered under
15the laws of this State or the laws of the United States,
16provided the accounts of that credit union are insured by
17applicable law and the credit union's principal office is
18located within the State of Illinois. The expressed judgment of
19the county treasurer as to the time when any county moneys will
20be required for expenditure or be redeemable is final and
21conclusive. Privately owned funds held in the custody of a
22county treasurer must be released to the appropriate party at
23the earliest reasonable time, but in no case exceeding 31 days,
24after the private party becomes entitled to the receipt of
25them.
26(Source: P.A. 86-962.)
 

 

 

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1    (55 ILCS 5/3-11007)  (from Ch. 34, par. 3-11007)
2    Sec. 3-11007. Monthly report of investments and deposits.
3On the twenty-eighth day of each month the county treasurer
4shall publish a report disclosing the investments and deposits
5of county moneys as of the first day of that month. The report
6shall list, under the name of each bank, or savings and loan
7association, or credit union in which the county treasurer
8maintains an account or investment, each separate account or
9investment maintained in that institution, the amount of each
10such account or investment, the rate of interest of each such
11account or investment, and the term of maturity of each such
12account or investment. The report shall also disclose the total
13cost and average rate of interest of all other investments of
14county moneys. A copy of the report shall be transmitted to
15each member of the county board, and the report shall be a
16public record.
17(Source: P.A. 86-962.)
 
18    (55 ILCS 5/3-11009)  (from Ch. 34, par. 3-11009)
19    Sec. 3-11009. Petty cash fund. For the purpose of enabling
20the county treasurer to pay in cash such warrants and other
21demands as may be presented to him for payment in cash, he is
22hereby authorized to withhold from the daily deposit of funds
23required of him under Section 3-11004, or to withdraw from the
24one or more banks, or savings and loan associations, or credit

 

 

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1unions holding such county moneys on deposit, upon check or
2draft payable to his own order as county treasurer, such
3amounts as will enable him to maintain a petty cash fund
4sufficient to meet the daily demand for the purpose herein
5indicated: Provided, however, that the amount of said petty
6cash fund shall at no time exceed the sum of $5,000 in counties
7having fewer than 1,000,000 inhabitants or the sum of $200,000
8in counties having 1,000,000 or more inhabitants. The county
9treasurer shall keep proper records of such petty cash fund,
10showing the amounts so withheld or withdrawn by him daily and
11the amounts paid out by him in cash from day to day. Such
12records shall be open to the inspection of all persons wishing
13to examine the same.
14(Source: P.A. 86-962.)
 
15    (55 ILCS 5/3-11010)  (from Ch. 34, par. 3-11010)
16    Sec. 3-11010. Equalization and transfer of deposits. For
17the purpose of facilitating the equalization or apportionment
18of the amount of the balances on deposit with the several
19depositories and the speedy transfer of money from one
20depository to another in case of necessity, the county
21treasurer is hereby authorized to draw checks or drafts against
22any deposit made by him under the terms of this Division. Each
23draft or check so drawn shall be payable to the order of the
24county treasurer, and shall indicate upon its face that it is
25drawn only for deposit in a bank, or savings and loan

 

 

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1association, or credit union authorized under the provisions of
2this Division to receive county moneys.
3(Source: P.A. 86-962.)
 
4    (55 ILCS 5/3-11011)  (from Ch. 34, par. 3-11011)
5    Sec. 3-11011. Designation of active depository. Of the
6banks, or savings and loan associations, or credit unions which
7may have been so designated as depositories, one shall be
8designated from time to time by the county treasurer as the
9active bank, depository, or savings and loan association, or
10credit union for a period of not more than one month at a time.
11The county board shall have power, if it sees fit, to require
12that no bank, or savings and loan association, or credit union
13whose aggregate capital stock and surplus is less than a
14certain specified amount shall be named as the active bank, or
15savings and loan association, or credit union. During such
16period the county treasurer shall draw all of his checks to pay
17warrants and other demands drawn upon him upon such active
18bank, or savings and loan association, or credit union:
19Provided, however, that the county treasurer shall have power
20to withdraw county moneys from any depository for the purposes
21stated in Section 3-11010: And, provided, further, that during
22such period drafts and checks against deposit of funds
23designated by Section 3-11003 hereof as "Class A" funds and
24"Class B" funds may be drawn upon other than the active bank,
25or savings and loan association, or credit union.

 

 

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1(Source: P.A. 86-962.)
 
2    (55 ILCS 5/3-11013)  (from Ch. 34, par. 3-11013)
3    Sec. 3-11013. Annual report of interest received. The
4county treasurer shall make to the county clerk an annual
5report, under oath, of all interest received by the county
6treasurer or credited to the county treasurer by any bank, or
7savings and loan association, or credit union, in which is
8deposited any county moneys, and at the time of making such
9report the county treasurer shall pay into the county treasury
10for the benefit of the county the aggregate amount of all
11interest so received by or credited to him, as shown by said
12report. Such report shall show the name of each bank or
13depository where any county moneys are deposited.
14(Source: P.A. 86-962.)
 
15    (55 ILCS 5/3-11018)  (from Ch. 34, par. 3-11018)
16    Sec. 3-11018. Payment of interest or fees on deposits. No
17bank, or savings and loan association, or credit union holding
18county moneys deposited therewith by the county treasurer in
19accordance with the provisions in this Division, or otherwise,
20and no officer of any such bank, or savings and loan
21association, or credit union, or other person, shall pay to,
22withhold for the benefit of, or contract in any manner for the
23payment to such county treasurer, or to any other person for
24him, of any interest or other fee, perquisite or emolument, on

 

 

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1account of the deposit of such county moneys, except such
2interest as shall be paid to such county treasurer for the
3benefit of the county.
4(Source: P.A. 86-962.)
 
5    Section 99. Effective date. This Act takes effect upon
6becoming law.