Bill Text: IL SB2449 | 2025-2026 | 104th General Assembly | Introduced

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Bill Title: Amends the Deposit of State Moneys Act. Removes a provision that allows the State Treasurer to invest or reinvest any State money in bonds, notes, debentures, or other similar obligations of a foreign government that satisfies specified requirements.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2025-02-07 - Referred to Assignments [SB2449 Detail]

Download: Illinois-2025-SB2449-Introduced.html

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104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB2449 Introduced 2/7/2025, by Sen. Rachel Ventura SYNOPSIS AS INTRODUCED:
15 ILCS 520/22.5 from Ch. 130, par. 41a
Amends the Deposit of State Moneys Act. Removes a provision that allows the State Treasurer to invest or reinvest any State money in bonds, notes, debentures, or other similar obligations of a foreign government that satisfies specified requirements.
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A BILL FOR
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AN ACT concerning State government.
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 as follows:
(15 ILCS 520/22.5) (from Ch. 130, par. 41a)
(For force and effect of certain provisions, see Section
90 of P.A. 94-79)
Sec. 22.5. Permitted investments. The State Treasurer may
invest and reinvest any State money in the State 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, 12 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.

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The State Treasurer may 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 invest or reinvest any State money
in the State 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 invest or reinvest up to 5% of the
College Savings Pool Administrative Trust Fund, the Illinois
Public Treasurer Investment Pool (IPTIP) Administrative Trust
Fund, and the State Treasurer's Administrative Fund that is
not needed for current expenditures due or about to become
due, in common or preferred stocks of publicly traded
corporations, partnerships, or limited liability companies,
organized in the United States, with assets exceeding
$500,000,000 if: (i) the purchases do not exceed 1% of the
corporation's or the limited liability company's outstanding
common and preferred stock; (ii) no more than 10% of the total
funds are invested in any one publicly traded corporation,
partnership, or limited liability company; and (iii) the
corporation or the limited liability company has not been

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placed on the list of restricted companies by the Illinois
Investment Policy Board under Section 1-110.16 of the Illinois
Pension Code.
Whenever the total amount of vouchers presented to the
Comptroller under Section 9 of the State Comptroller Act
exceeds the funds available in the General Revenue Fund by
$1,000,000,000 or more, then the State Treasurer may invest
any State money in the State Treasury, other than money in the
General Revenue Fund, Health Insurance Reserve Fund, Attorney
General Court Ordered and Voluntary Compliance Payment
Projects Fund, Attorney General Whistleblower Reward and
Protection Fund, and Attorney General's State Projects and
Court Ordered Distribution Fund, which is not needed for
current expenditures, 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
with the Office of the Comptroller in order to enable the
Comptroller to pay outstanding vouchers. At any time, and from
time to time outstanding, such investment shall not be greater
than $2,000,000,000. Such investment shall be deposited into
the General Revenue Fund or Health Insurance Reserve Fund as
determined by the Comptroller. Such investment shall be repaid
by the Comptroller with an interest rate tied to the London
Interbank Offered Rate (LIBOR) or the Federal Funds Rate or an
equivalent market established variable rate, but in no case
shall such interest rate exceed the lesser of the penalty rate

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established under the State Prompt Payment Act or the timely
pay interest rate under Section 368a of the Illinois Insurance
Code. The State Treasurer and the Comptroller shall enter into
an intergovernmental agreement to establish procedures for
such investments, which market established variable rate to
which the interest rate for the investments should be tied,
and other terms which the State Treasurer and Comptroller
reasonably believe to be mutually beneficial concerning these
investments by the State Treasurer. The State Treasurer and
Comptroller shall also enter into a written agreement for each
such investment that specifies the period of the investment,
the payment interval, the interest rate to be paid, the funds
in the State Treasury from which the State Treasurer will draw
the investment, and other terms upon which the State Treasurer
and Comptroller mutually agree. Such investment agreements
shall be public records and the State Treasurer shall post the
terms of all such investment agreements on the State
Treasurer's official website. In compliance with the
intergovernmental agreement, the Comptroller shall order and
the State Treasurer shall transfer amounts sufficient for the
payment of principal and interest invested by the State
Treasurer with the Office of the Comptroller under this
paragraph from the General Revenue Fund or the Health
Insurance Reserve Fund to the respective funds in the State
Treasury from which the State Treasurer drew the investment.
Public Act 100-1107 shall constitute an irrevocable and

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continuing authority for all amounts necessary for the payment
of principal and interest on the investments made with the
Office of the Comptroller by the State Treasurer under this
paragraph, and the irrevocable and continuing authority for
and direction to the Comptroller and State Treasurer to make
the necessary transfers.
The State Treasurer may invest or reinvest any State money
in the State 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, or other obligations that are
issued or guaranteed by supranational entities; provided,
that at the time of investment, the entity has the United
States government as a shareholder.
(2.5) (Blank). 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

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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 and the bank has not been placed
on the list of restricted companies by the Illinois

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Investment Policy Board under Section 1-110.16 of the
Illinois Pension Code.
(7) Short-term obligations of either corporations or
limited liability companies 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 270 days from the date
of purchase, (ii) the purchases do not exceed 10% of the
corporation's or the limited liability company's
outstanding obligations, (iii) no more than one-third of
the public agency's funds are invested in short-term
obligations of either corporations or limited liability
companies, and (iv) the corporation or the limited
liability company has not been placed on the list of
restricted companies by the Illinois Investment Policy
Board under Section 1-110.16 of the Illinois Pension Code.
(7.5) Obligations of either corporations or limited
liability companies organized in the United States, that
have a significant presence in this State, 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 more than 270 days, but less than 10
years, from the date of purchase; (ii) the purchases do
not exceed 10% of the corporation's or the limited

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liability company's outstanding obligations; (iii) no more
than one-third of the public agency's funds are invested
in such obligations of corporations or limited liability
companies; and (iv) the corporation or the limited
liability company has not been placed on the list of
restricted companies by the Illinois Investment Policy
Board under Section 1-110.16 of the Illinois Pension Code.
(8) Money market mutual funds registered under the
Investment Company Act of 1940.
(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, as now or hereafter amended or succeeded,
subject to the provisions of that Act and the regulations
issued thereunder.
(11) Investments made in accordance with the
Technology Development Act.
(12) Investments made in accordance with the Student
Investment Account Act.
(13) Investments constituting direct obligations of a
community development financial institution, which is
certified by the United States Treasury Community
Development Financial Institutions Fund and is operating
in the State of Illinois.

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(14) Investments constituting direct obligations of a
minority depository institution, as designated by the
Federal Deposit Insurance Corporation, that is operating
in the State of Illinois.
(15) Investments made in accordance with any other law
that authorizes the State Treasurer to invest or deposit
funds.
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 State Treasurer may 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.

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(Source: P.A. 101-81, eff. 7-12-19; 101-206, eff. 8-2-19;
101-586, eff. 8-26-19; 101-657, eff. 3-23-21; 102-297, eff.
8-6-21; 102-558, eff. 8-20-21; 102-813, eff. 5-13-22.)