093_HB0277ham003











                                     LRB093 05884 JLS 13564 a

 1                     AMENDMENT TO HOUSE BILL 277

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

 5        "Section  5.  The  Deposit of State Moneys Act is amended
 6    by adding Section 16.3 as follows:

 7        (15 ILCS 520/16.3 new)
 8        Sec.  16.3.  Consideration  of  financial   institution's
 9    commitment to its community.
10        (a)  In  addition  to any other requirements of this Act,
11    the State Treasurer is authorized to consider  the  financial
12    institution's   record   and   current   level  of  financial
13    commitment to its local community when  deciding  whether  to
14    deposit State funds in that financial institution.  The State
15    Treasurer may consider factors including, but not necessarily
16    limited to:
17             (1)  for   financial  institutions  subject  to  the
18        federal Community Reinvestment Act of 1977,  the  current
19        and historical ratings that the financial institution has
20        received,  to  the extent that those ratings are publicly
21        available, under the federal Community  Reinvestment  Act
22        of 1977;
 
                            -2-      LRB093 05884 JLS 13564 a
 1             (2)  any changes in ownership, management, policies,
 2        or practices of the financial institution that may affect
 3        the  level  of  the financial institution's commitment to
 4        its community;
 5             (3)  the financial impact  that  the  withdrawal  or
 6        denial  of  deposits  of  State  funds  might have on the
 7        financial institution; and
 8             (4)  the financial impact to the State as  a  result
 9        of   withdrawing  State  funds  or  refusing  to  deposit
10        additional State funds in the financial institution.
11        (b)  Nothing  in  this  Section  shall  be  construed  as
12    authorizing the State Treasurer to conduct an examination  or
13    investigation  of  a  financial  institution  or  to  receive
14    information that is not publicly available and the disclosure
15    of which is otherwise prohibited by law.

16        Section  10.  The  Public Funds Investment Act is amended
17    by adding Section 8 as follows:

18        (30 ILCS 235/8 new)
19        Sec.   8.  Consideration   of   financial   institution's
20    commitment to its community.
21        (a)  In addition to any other requirements of this Act, a
22    public  agency  is  authorized  to  consider  the   financial
23    institution's   record   and   current   level  of  financial
24    commitment to its local community when  deciding  whether  to
25    deposit  public  funds  in  that  financial institution.  The
26    public  agency  may  consider  factors  including,  but   not
27    necessarily limited to:
28             (1)  for   financial  institutions  subject  to  the
29        federal Community Reinvestment Act of 1977,  the  current
30        and historical ratings that the financial institution has
31        received,  to  the extent that those ratings are publicly
32        available, under the federal Community  Reinvestment  Act
 
                            -3-      LRB093 05884 JLS 13564 a
 1        of 1977;
 2             (2)  any changes in ownership, management, policies,
 3        or practices of the financial institution that may affect
 4        the  level  of  the financial institution's commitment to
 5        its community;
 6             (3)  the financial impact  that  the  withdrawal  or
 7        denial  of  deposits  of  public  funds might have on the
 8        financial institution;
 9             (4)  the financial impact to the public agency as  a
10        result of withdrawing public funds or refusing to deposit
11        additional public funds in the financial institution; and
12             (5)  any  additional  burden on the resources of the
13        public agency that might result from ceasing to  maintain
14        deposits  of  public  funds  at the financial institution
15        under consideration.
16        (b)  Nothing  in  this  Section  shall  be  construed  as
17    authorizing the public agency to conduct  an  examination  or
18    investigation  of  a  financial  institution  or  to  receive
19    information that is not publicly available and the disclosure
20    of which is otherwise prohibited by law.

21        Section  99.   Effective  date.  This Act takes effect on
22    July 1, 2004.".