Public Act 094-0079
 		





SB0023 Enrolled
LRB094 03731 BDD 33740 b






    AN ACT concerning State government, which may be cited as 
the Act to End Atrocities and Terrorism in the Sudan.

 
    Be it enacted by the People of the State of Illinois,
 
represented in the General Assembly:


 
    Section 5. The Deposit of State Moneys Act is amended  by 
changing Section 22.5 and by adding Section 22.6 as follows:
 



    (15 ILCS 520/22.5)  (from Ch. 130, par. 41a)


    Sec. 22.5. Permitted investments. The State Treasurer may, 
with the
approval of the Governor, invest and reinvest any 
State money in the treasury
which is  not needed for current 
expenditures due or about to become due, in
obligations of the 
United States government or its agencies or of National

Mortgage Associations established by or under the National 
Housing Act, 1201
U.S.C. 1701 et seq., or
in mortgage 
participation certificates representing undivided interests in

specified, first-lien conventional residential Illinois 
mortgages that are
underwritten, insured, guaranteed, or 
purchased by the Federal Home Loan
Mortgage Corporation or in 
Affordable Housing Program Trust Fund Bonds or
Notes as defined 
in and issued pursuant to the Illinois Housing Development
Act.  
All such obligations shall be considered as cash and may
be 
delivered over as cash by a State Treasurer to his successor.

    The State Treasurer may, with the approval of the Governor, 
purchase
any state bonds with any money in the State Treasury 
that has been set
aside and held for the payment  of the 
principal of and interest on the
bonds. The bonds shall be 
considered as cash and may be delivered over
as cash by the 
State Treasurer to his successor.

    The State Treasurer may, with the approval of the Governor, 
invest or
reinvest any  State money in the treasury that is not 
needed for
current expenditure due or about to become due, or 
any money in the
State Treasury that has been set aside and 
held for the payment of the
principal of and the interest on 
any State bonds, in shares,
withdrawable  accounts, and 
investment certificates of savings and
building and loan 
associations,  incorporated under the laws of this
State or any 
other state or under the laws of the United States;
provided, 
however, that investments may be made only in those savings
and 
loan or building and loan associations the shares and 
withdrawable
accounts or  other forms of investment securities 
of which are insured
by the Federal Deposit Insurance 
Corporation.

    The State Treasurer may not invest State money in any 
savings and
loan or building and loan association unless a 
commitment by the savings
and loan (or building and loan) 
association, executed by the president
or chief executive 
officer of that association,  is submitted in the
following 
form:


        The .................. Savings and Loan (or Building 
    and Loan)
Association pledges not  to reject arbitrarily 
    mortgage loans for
residential properties within any 
    specific part of the community served
by the savings and 
    loan (or building and loan) association because  of
the 
    location of the property.  The savings and loan (or building 
    and
loan) association also pledges to make loans available 
    on low and
moderate income residential property  throughout 
    the community within
the limits of its legal restrictions 
    and prudent financial practices.

    The State Treasurer may, with the approval of the Governor, 
invest or
reinvest, at a price not to exceed par, any State 
money in the treasury
that is not needed for  current 
expenditures due or about to become
due, or any money in the 
State Treasury  that has been set aside and
held for the payment 
of the principal of and interest on  any State
bonds, in bonds 
issued by counties or municipal corporations of the
State of 
Illinois.

    The State Treasurer may, with the approval of the Governor, 
invest or
reinvest any State money in the Treasury which is not 
needed for current
expenditure, due or about to become due, or 
any money in the State Treasury
which has been set aside and 
held for the payment of the principal of and
the interest on 
any State bonds, in participations in loans, the principal
of 
which participation is fully guaranteed by an agency or 
instrumentality
of the United States government; provided, 
however, that such loan
participations are represented by 
certificates issued only by banks which
are incorporated under 
the laws of this State or any other state
or under the laws of 
the United States, and such banks, but not
the loan 
participation certificates, are insured by the Federal Deposit

Insurance Corporation.

    The State Treasurer may, with the approval of the Governor, 
invest or
reinvest any State money in the Treasury that is not 
needed for current
expenditure, due or about to become due, or 
any money in the State Treasury
that has been set aside and 
held for the payment of the principal of and
the interest on 
any State bonds, in any of the following:


        (1) Bonds, notes, certificates of indebtedness, 
    Treasury bills, or other
securities now or hereafter issued 
    that are guaranteed by the full faith
and credit of the 
    United States of America as to principal and interest.


        (2) Bonds, notes, debentures, or other similar 
    obligations of the United
States of America, its agencies, 
    and instrumentalities.


        (2.5) Bonds, notes, debentures, or other similar 
    obligations of a
foreign government, other than the 
    Republic of the Sudan, that are guaranteed by the full 
    faith and credit of that
government as to principal and 
    interest, but only if the foreign government
has not 
    defaulted and has met its payment obligations in a timely 
    manner on
all similar obligations for a period of at least 
    25 years immediately before
the time of acquiring those 
    obligations.


        (3) Interest-bearing savings accounts, 
    interest-bearing certificates of
deposit, interest-bearing 
    time deposits, or any other investments
constituting 
    direct obligations of any bank as defined by the Illinois

    Banking Act.


        (4) Interest-bearing accounts, certificates of 
    deposit, or any other
investments constituting direct 
    obligations of any savings and loan
associations 
    incorporated under the laws of this State or any other 
    state or
under the laws of the United States.


        (5) Dividend-bearing share accounts, share certificate 
    accounts, or
class of share accounts of a credit union 
    chartered under the laws of this
State or the laws of the 
    United States; provided, however, the principal
office of 
    the credit union must be located within the State of 
    Illinois.


        (6) Bankers' acceptances of banks whose senior 
    obligations are rated in
the top 2 rating categories by 2 
    national rating agencies and maintain that
rating during 
    the term of the investment.


        (7) Short-term obligations of corporations organized 
    in the United
States with assets exceeding $500,000,000 if 
    (i) the obligations are rated
at the time of purchase at 
    one of the 3 highest classifications established
by at 
    least 2 standard rating services and mature not later than

    180 days from the date of purchase, (ii) the purchases do 
    not exceed 10% of
the corporation's outstanding 
    obligations, and (iii) no more than one-third of
the public 
    agency's funds are invested in short-term obligations of

    corporations, and (iv) the corporation is not a forbidden 
    entity, as defined in Section 22.6 of the Deposit of State 
    Moneys Act.


        (8) Money market mutual funds registered under the 
    Investment Company
Act of 1940, provided that the portfolio 
    of the money market mutual fund is
limited to obligations 
    described in this Section and to agreements to
repurchase 
    such obligations.


        (9) The Public Treasurers' Investment Pool created 
    under Section 17 of
the State Treasurer Act or in a fund 
    managed, operated, and administered by
a bank.


        (10) Repurchase agreements of government securities 
    having the meaning
set out in the Government Securities Act 
    of 1986 subject to the provisions
of that Act and the 
    regulations issued thereunder.


        (11) Investments made in accordance with the 
    Technology Development
Act.

    For purposes of this Section, "agencies" of the United 
States
Government includes:


        (i) the federal land banks, federal intermediate 
    credit banks, banks for
cooperatives, federal farm credit 
    banks, or any other entity authorized
to issue debt 
    obligations under the Farm Credit Act of 1971 (12 U.S.C. 
    2001
et seq.) and Acts amendatory thereto;


        (ii) the federal home loan banks and the federal home 
    loan
mortgage corporation;


        (iii) the Commodity Credit Corporation; and


        (iv) any other agency created by Act of Congress.

    The Treasurer may, with the approval of the Governor, lend 
any securities
acquired under this Act.  However, securities may 
be lent under this Section
only in accordance with Federal 
Financial Institution Examination Council
guidelines and only 
if the securities are collateralized at a level sufficient
to 
assure the safety of the securities, taking into account market 
value
fluctuation.  The securities may be collateralized by cash 
or collateral
acceptable under Sections 11 and 11.1.

(Source: P.A. 92-546, eff. 1-1-03; 92-851, eff. 8-26-02; 
revised 9-19-02.)


 
    (15 ILCS 520/22.6  new)
    Sec. 22.6. Prohibited deposits.
    (a) Notwithstanding any other provision of law, the State 
Treasurer shall not deposit any funds into or otherwise 
contract with any financial institution unless an expressly 
authorized officer of that financial institution annually 
certifies, in the manner and form established by the Treasurer, 
that the financial institution has implemented policies and 
practices that require loan applicants to certify that they are 
not forbidden entities.
    (b) For the purposes of this Section:
    "Company" is any entity capable of affecting commerce, 
including but not limited to (i) a government, government 
agency, natural person, legal person, sole proprietorship, 
partnership, firm, corporation, subsidiary, affiliate, 
franchisor, franchisee, joint venture, trade association, 
financial institution, utility, public franchise, provider of 
financial services, trust, or enterprise; and (ii) any 
association thereof.  
    "Forbidden entity" means any of the following:
        (1) The government of the Republic of the Sudan and any 
    of its agencies, including but not limited to political 
    units and subdivisions; 
        (2) Any company that is wholly or partially managed or 
    controlled by the government of the Republic of the Sudan 
    and any of its agencies, including but not limited to 
    political units and subdivisions;
        (3) Any company (i) that is established or organized 
    under the laws of the Republic of the Sudan; or (ii) whose 
    principal place of business is in the Republic of the 
    Sudan;
        (4) Any company (i) identified by the Office of Foreign 
    Assets Control in the United States Department of the 
    Treasury as sponsoring terrorist activities; or (ii) 
    fined, penalized, or sanctioned by the Office of Foreign 
    Assets Control in the United States Department of the 
    Treasury for any violation of any United States rules and 
    restrictions relating to the Republic of the Sudan that 
    occurred at any time following the effective date of this 
    Act; and
        (5) Any company who has failed to certify under oath 
    that it does not own or control any property or asset 
    located in, have employees or facilities located in, 
    provide goods or services to, obtain goods or services 
    from, have distribution agreements with, issue credits or 
    loans to, purchase bonds or commercial paper issued by, or 
    invest in (i) the Republic of the Sudan; or (ii) any 
    company domiciled in the Republic of the Sudan. 
    Notwithstanding the foregoing, the term "forbidden entity" 
shall exclude companies, except agencies of the Republic of the 
Sudan, who are certified as Non-Government Organizations by the 
United Nations, or who engage solely in (i) the provision of 
goods and services intended to relieve human suffering or to 
promote welfare, health, religious and spiritual activities, 
and education for humanitarian purposes or otherwise; or (ii) 
journalistic activities.
    (c) In addition to any other penalties and remedies 
available under the law of Illinois and the United States, any 
transaction between a financial institution and a company that 
violates the provisions of this Act shall be void or voidable, 
at the joint discretion of the Treasurer and the financial 
institution.

    (d) This Section does not apply to (a) linked deposits made 
by the Treasurer into financial institutions in return for that 
institution's commitment to provide, through loans or other 
financial support, agreed benefits in projects undertaken in 
the community; and (b) the purchase of depository, custodial, 
processing, and advisory services that are necessary to fulfill 
the Treasurer's obligations and responsibilities.
 
    Section 10. The Illinois Pension Code is amended  by adding 
Section 1-110.5 as follows:
 
    (40 ILCS 5/1-110.5  new)
    Sec. 1-110.5. Certain prohibited transactions.
    (a) A fiduciary of a retirement system or pension fund 
established under this Code shall not transfer or disburse 
funds to, deposit into, acquire any bonds or commercial paper 
from, or otherwise loan to or invest in any entity unless the 
company charged with managing the assets of the retirement 
system or pension fund, at no additional cost to the fiduciary, 
certifies to the fiduciary, in the manner and form established 
by the Treasurer, that:
        (1) the fund managing company has not loaned to, 
    invested in, or otherwise transferred any of the retirement 
    system or pension fund's assets to a forbidden entity any 
    time after the effective date of this Act;
        (2) at least 60% of the retirement system or pension 
    fund's assets are not invested in forbidden entities at any 
    time more than twelve months after the effective date of 
    this Act;
        (3) at least 100% of the retirement system or pension 
    fund's assets are not invested in forbidden entities at any 
    time more than eighteen months after the effective date of 
    this Act.
        
    (b) For purposes of this Section:
    "Company" is any entity capable of affecting commerce, 
    including but not limited to (i) a government, government 
    agency, natural person, legal person, sole proprietorship, 
    partnership, firm, corporation, subsidiary, affiliate, 
    franchisor, franchisee, joint venture, trade association, 
    financial institution, utility, public franchise, provider 
    of financial services, trust, or enterprise; and (ii) any 
    association thereof.
    "Forbidden entity" means any of the following:
    (1) The government of the Republic of the Sudan and any of 
    its agencies, including but not limited to political units 
    and subdivisions;

    (2) Any company that is wholly or partially managed or 
    controlled by the government of the Republic of the Sudan 
    and any of its agencies, including but not limited to 
    political units and subdivisions;
    (3) Any company (i) that is established or organized under 
    the laws of the Republic of the Sudan; (ii) whose principal 
    place of business is in the Republic of the Sudan;
    (4) Any company (i) identified by the Office of Foreign 
    Assets Control in the United States Department of the 
    Treasury as sponsoring terrorist activities; or (ii) 
    fined, penalized, or sanctioned by the Office of Foreign 
    Assets Control in the United States Department of the 
    Treasury for any violation of any United States rules and 
    restrictions relating to the Republic of the Sudan that 
    occurred at any time following the effective date of this 
    Act; and
    (5) Any publicly traded company who has been identified by 
    an independent researching firm that specializes in global 
    security risk as being a company that owns or controls 
    property or assets located in, has employees or facilities 
    located in, provides goods or services to, obtain goods or 
    services from, has distribution agreements with, issue 
    credits or loans to, purchase bonds or commercial paper 
    issued by, or invest in (i) the Republic of the Sudan; or 
    (ii) any company domiciled in the Republic of the Sudan; 
    and
    (6) Any non publicly-traded company that fails to submit to 
    the fund managing company an affidavit sworn under oath in 
    which an expressly authorized officer of the company avers 
    that the company (i) does not own or control any property 
    or asset located in the Republic of the Sudan; and (ii) did 
    not transact commercial business in the Republic of the 
    Sudan.
Notwithstanding the foregoing, the term "forbidden entity" 
shall exclude companies, except agencies of the Republic of the 
Sudan, who are certified as Non-Government Organizations by the 
United Nations, or who engage solely in (i) the provision of 
goods and services intended to relieve human suffering or to 
promote welfare, health, religious and spiritual activities, 
and education humanitarian purposes or otherwise; or (ii) 
journalistic activities.
    (c) In addition to any other penalties and remedies 
available under the law of Illinois and the United States, any 
transaction that violates the provisions of this Act shall be 
void or voidable, at the sole discretion of the fiduciary.
 
    Section 90. Term; construction. The provisions of this 
amendatory Act of the 94th General Assembly shall have full 
force and effect until such time as the government of the 
United States, through Executive Order or otherwise, rescinds 
Executive Order 13067, or until such time as these provisions 
are repealed or modified by the General Assembly. This 
amendatory Act of the 94th General Assembly shall be construed 
under the laws of the State of Illinois and, where applicable, 
the laws of the United States.
 
    Section 99. Effective date. This Act takes effect 7 months 
after becoming law.