STATE PERMITTED INVESTMENTS

Illinois General Assembly - Full Text of SB3086

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Full Text of SB3086

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SB3086 - 104th General Assembly

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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.

SB3086 Enrolled
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LRB104 17721 SPS 31152 b
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
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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
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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
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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
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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
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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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