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Illinois General Assembly· SB 3086Governor Approved

STATE PERMITTED INVESTMENTS, the official text

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SB3086 Enrolled                      LRB104 17721 SPS 31152 b

1  AN ACT concerning State government.

2  Be it enacted by the People of the State of Illinois,

3 represented in the General Assembly:

4  Section 5. The Deposit of State Moneys Act is amended by

5 changing Section 22.5 as follows:

6  (15 ILCS 520/22.5) (from Ch. 130, par. 41a)

7  (For force and effect of certain provisions, see Section

8 90 of P.A. 94-79)

9  Sec. 22.5. Permitted investments. The State Treasurer may

10 invest and reinvest any State money in the State Treasury

11 which is not needed for current expenditures due or about to

12 become due, in obligations of the United States government or

13 its agencies or of National Mortgage Associations established

14 by or under the National Housing Act, 12 U.S.C. 1701 et seq.,

15 or in mortgage participation certificates representing

16 undivided interests in specified, first-lien conventional

17 residential Illinois mortgages that are underwritten, insured,

18 guaranteed, or purchased by the Federal Home Loan Mortgage

19 Corporation or in Affordable Housing Program Trust Fund Bonds

20 or Notes as defined in and issued pursuant to the Illinois

21 Housing Development Act. All such obligations shall be

22 considered as cash and may be delivered over as cash by a State

23 Treasurer to his successor.
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1   The State Treasurer may purchase any state bonds with any

2 money in the State Treasury that has been set aside and held

3 for the payment of the principal of and interest on the bonds.

4 The bonds shall be considered as cash and may be delivered over

5 as cash by the State Treasurer to his successor.

6   The State Treasurer may invest or reinvest any State money

7 in the State Treasury that is not needed for current

8 expenditures due or about to become due, or any money in the

9 State Treasury that has been set aside and held for the payment

10 of the principal of and interest on any State bonds, in bonds

11 issued by counties or municipal corporations of the State of

12 Illinois.

13  The State Treasurer may invest or reinvest up to 5% of the

14 College Savings Pool Administrative Trust Fund, the Illinois

15 Public Treasurer Investment Pool (IPTIP) Administrative Trust

16 Fund, and the State Treasurer's Administrative Fund that is

17 not needed for current expenditures due or about to become

18 due, in common or preferred stocks of publicly traded

19 corporations, partnerships, or limited liability companies,

20 organized in the United States, with assets exceeding

21 $500,000,000 if: (i) the purchases do not exceed 1% of the

22 corporation's or the limited liability company's outstanding

23 common and preferred stock; (ii) no more than 10% of the total

24 funds are invested in any one publicly traded corporation,

25 partnership, or limited liability company; and (iii) the

26 corporation or the limited liability company has not been
   SB3086 Enrolled  -3-  LRB104 17721 SPS 31152 b

1 placed on the list of restricted companies by the Illinois

2 Investment Policy Board under Section 1-110.16 of the Illinois

3 Pension Code.

4  Whenever the total amount of vouchers presented to the

5 Comptroller under Section 9 of the State Comptroller Act

6 exceeds the funds available in the General Revenue Fund by

7 $500,000,000 or more, then the State Treasurer may invest any

8 State money in the State Treasury, other than money in the

9 General Revenue Fund, Health Insurance Reserve Fund, Attorney

10 General Court Ordered and Voluntary Compliance Payment

11 Projects Fund, Attorney General Whistleblower Reward and

12 Protection Fund, and Attorney General's State Projects and

13 Court Ordered Distribution Fund, which is not needed for

14 current expenditures, due or about to become due, or any money

15 in the State Treasury which has been set aside and held for the

16 payment of the principal of and the interest on any State bonds

17 with the Office of the Comptroller in order to enable the

18 Comptroller to pay outstanding vouchers. At any time, and from

19 time to time outstanding, such investment shall not be greater

20 than $2,000,000,000. Such investment shall be deposited into

21 the General Revenue Fund or Health Insurance Reserve Fund as

22 determined by the Comptroller. On or after July 1, 2025, and

23 through June 30, 2026, at the request of the Governor and with

24 the approval of the Treasurer, the Comptroller may make

25 deposits into other funds in the State Treasury to pay

26 outstanding vouchers or in anticipation of vouchers that may
SB3086 Enrolled  -4-  LRB104 17721 SPS 31152 b

 1 be submitted to the Comptroller for payment. Such investment
 2 shall be repaid by the Comptroller with an interest rate tied
 3 to the Secured Overnight Financing Rate (SOFR) or the Federal
 4 Funds Rate or an equivalent market established variable rate,
 5 but in no case shall such interest rate exceed the lesser of
 6 the penalty rate established under the State Prompt Payment
 7 Act or the timely pay interest rate under Section 368a of the
 8 Illinois Insurance Code. The State Treasurer and the
 9 Comptroller shall enter into an intergovernmental agreement to
10 establish procedures for such investments, which market
11 established variable rate to which the interest rate for the
12 investments should be tied, and other terms which the State
13 Treasurer and Comptroller reasonably believe to be mutually
14 beneficial concerning these investments by the State
15 Treasurer. The State Treasurer and Comptroller shall also
16 enter into a written agreement for each such investment that
17 specifies the period of the investment, the payment interval,
18 the interest rate to be paid, the funds in the State Treasury
19 from which the State Treasurer will draw the investment, and
20 other terms upon which the State Treasurer and Comptroller
21 mutually agree. Such investment agreements shall be public
22 records and the State Treasurer shall post the terms of all
23 such investment agreements on the State Treasurer's official
24 website. In compliance with the intergovernmental agreement,
25 the Comptroller shall order and the State Treasurer shall
26 transfer amounts sufficient for the payment of principal and
    SB3086 Enrolled   -5-  LRB104 17721 SPS 31152 b

1 interest invested by the State Treasurer with the Office of

2 the Comptroller under this paragraph from the General Revenue

3 Fund or the Health Insurance Reserve Fund or, from July 1, 2025

4 through June 30, 2026, the fund identified by the Governor, to

5 the respective funds in the State Treasury from which the

6 State Treasurer drew the investment. Public Act 100-1107 shall

7 constitute an irrevocable and continuing authority for all

8 amounts necessary for the payment of principal and interest on

9 the investments made with the Office of the Comptroller by the

10 State Treasurer under this paragraph, and the irrevocable and

11 continuing authority for and direction to the Comptroller and

12 State Treasurer to make the necessary transfers.

13  The State Treasurer may invest or reinvest any State money

14 in the State Treasury that is not needed for current

15 expenditure, due or about to become due, or any money in the

16 State Treasury that has been set aside and held for the payment

17 of the principal of and the interest on any State bonds, in any

18 of the following:

19  (1) Bonds, notes, certificates of indebtedness,

20  Treasury bills, or other securities now or hereafter

21  issued that are guaranteed by the full faith and credit of

22  the United States of America as to principal and interest.

23  (2) Bonds, notes, debentures, or other similar

24  obligations of the United States of America, its agencies,

25  and instrumentalities, or other obligations that are

26  issued or guaranteed by supranational entities; provided,
    SB3086 Enrolled   -6-              LRB104 17721 SPS 31152 b

1   that at the time of investment, the entity has the United

2   States government as a shareholder.

3   (2.5) Bonds, notes, debentures, or other similar

4   obligations of a foreign government, other than the

5   Republic of the Sudan, that are guaranteed by the full

6   faith and credit of that government as to principal and

7   interest, but only if the foreign government has not

8   defaulted and has met its payment obligations in a timely

9   manner on all similar obligations for a period of at least

10  25 years immediately before the time of acquiring those

11  obligations.

12  (3)              Interest-bearing    savings   accounts,

13  interest-bearing  certificates       of        deposit,

14  interest-bearing time deposits, or any other investments

15  constituting direct obligations of any bank as defined by

16  the Illinois Banking Act.

17  (4) Interest-bearing accounts, certificates of

18  deposit, or any other investments constituting direct

19  obligations of any savings and loan associations

20  incorporated under the laws of this State or any other

21  state or under the laws of the United States.

22  (5) Dividend-bearing share accounts, share certificate

23  accounts, or class of share accounts of a credit union

24  chartered under the laws of this State or the laws of the

25  United States; provided, however, the principal office of

26  the credit union must be located within the State of
    SB3086 Enrolled         -7-  LRB104 17721 SPS 31152 b

1   Illinois.

2   (6) Bankers' acceptances of banks whose senior

3   obligations are rated in the top 2 rating categories by 2

4   national rating agencies and maintain that rating during

5   the term of the investment and the bank has not been placed

6   on the list of restricted companies by the Illinois

7   Investment Policy Board under Section 1-110.16 of the

8   Illinois Pension Code.

9   (7) Short-term obligations of either corporations or

10  limited liability companies organized in the United States

11  with assets exceeding $500,000,000 if (i) the obligations

12  are rated at the time of purchase at one of the 3 highest

13  classifications established by at least 2 standard rating

14  services and mature not later than 270 days from the date

15  of purchase, (ii) the purchases do not exceed 10% of the

16  corporation's or the limited liability company's

17  outstanding obligations, (iii) no more than one-third of

18  the public agency's funds are invested in short-term

19  obligations of either corporations or limited liability

20  companies, and (iv) the corporation or the limited

21  liability company has not been placed on the list of

22  restricted companies by the Illinois Investment Policy

23  Board under Section 1-110.16 of the Illinois Pension Code.

24  (7.5) Obligations of either corporations or limited

25  liability companies organized in the United States, that

26  have a significant presence in this State, with assets
    SB3086 Enrolled  -8-             LRB104 17721 SPS 31152 b

1   exceeding $500,000,000 if: (i) the obligations are rated

2   at the time of purchase at one of the 3 highest

3   classifications established by at least 2 standard rating

4   services and mature more than 270 days, but less than 10

5   years, from the date of purchase; (ii) the purchases do

6   not exceed 10% of the corporation's or the limited

7   liability company's outstanding obligations; (iii) no more

8   than one-third of the public agency's funds are invested

9   in such obligations of corporations or limited liability

10  companies; and (iv) the corporation or the limited

11  liability company has not been placed on the list of

12  restricted companies by the Illinois Investment Policy

13  Board under Section 1-110.16 of the Illinois Pension Code.

14  (8) Money market mutual funds registered under the

15  Investment Company Act of 1940.

16  (9) The Public Treasurers' Investment Pool created

17  under Section 17 of the State Treasurer Act or in a fund

18  managed, operated, and administered by a bank.

19  (9.5) Pooled investment trusts that are registered as

20  an open-end investment company with the Securities and

21  Exchange Commission and with voting trustees that are

22  officers or employees of a national labor federation, or

23  any member unions thereof, with assets exceeding

24  $1,000,000,000 if: (i) the purchases do not exceed 5% of

25  the issuers' total assets and (ii) no more than 1% of the

26  public agency's funds are invested in the pooled
    SB3086 Enrolled             -9-  LRB104 17721 SPS 31152 b

1   investment trust.

2   (10) Repurchase agreements of government securities

3   having the meaning set out in the Government Securities

4   Act of 1986, as now or hereafter amended or succeeded,

5   subject to the provisions of that Act and the regulations

6   issued thereunder.

7   (11) Investments made in accordance with the

8   Technology Development Act.

9   (12) Investments made in accordance with the Student

10  Investment Account Act.

11  (13) Investments constituting direct obligations of a

12  community development financial institution, which is

13  certified by the United States Treasury Community

14  Development Financial Institutions Fund and is operating

15  in the State of Illinois.

16  (14) Investments constituting direct obligations of a

17  minority depository institution, as designated by the

18  Federal Deposit Insurance Corporation, that is operating

19  in the State of Illinois.

20  (15) Investments made in accordance with any other law

21  that authorizes the State Treasurer to invest or deposit

22  funds.

23  For purposes of this Section, "agencies" of the United

24 States Government includes:

25  (i) the federal land banks, federal intermediate

26  credit banks, banks for cooperatives, federal farm credit
    SB3086 Enrolled  - 10 - LRB104 17721 SPS 31152 b

1   banks, or any other entity authorized to issue debt

2   obligations under the Farm Credit Act of 1971 (12 U.S.C.

3   2001 et seq.) and Acts amendatory thereto;

4   (ii) the federal home loan banks and the federal home

5   loan mortgage corporation;

6   (iii) the Commodity Credit Corporation; and

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

8   The State Treasurer may lend any securities acquired under

9 this Act. However, securities may be lent under this Section

10 only in accordance with Federal Financial Institution

11 Examination Council guidelines and only if the securities are

12 collateralized at a level sufficient to assure the safety of

13 the securities, taking into account market value fluctuation.

14 The securities may be collateralized by cash or collateral

15 acceptable under Sections 11 and 11.1.

16 (Source: P.A. 104-2, eff. 6-16-25.)

17  Section 99. Effective date. This Act takes effect upon

18 becoming law.
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