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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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| 1 | | AN ACT concerning State government.
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| 2 | | Be it enacted by the People of the State of Illinois, |
| 3 | | represented in the General Assembly:
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| 4 | | Section 5. The Deposit of State Moneys Act is amended by |
| 5 | | changing Section 22.5 as follows:
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| 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 |
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| 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 | | $1,000,000,000 or more, then the State Treasurer may invest |
| 8 | | any 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. Such investment shall be repaid |
| 23 | | by the Comptroller with an interest rate tied to the London |
| 24 | | Interbank Offered Rate (LIBOR) or the Federal Funds Rate or an |
| 25 | | equivalent market established variable rate, but in no case |
| 26 | | shall such interest rate exceed the lesser of the penalty rate |
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| 1 | | established under the State Prompt Payment Act or the timely |
| 2 | | pay interest rate under Section 368a of the Illinois Insurance |
| 3 | | Code. The State Treasurer and the Comptroller shall enter into |
| 4 | | an intergovernmental agreement to establish procedures for |
| 5 | | such investments, which market established variable rate to |
| 6 | | which the interest rate for the investments should be tied, |
| 7 | | and other terms which the State Treasurer and Comptroller |
| 8 | | reasonably believe to be mutually beneficial concerning these |
| 9 | | investments by the State Treasurer. The State Treasurer and |
| 10 | | Comptroller shall also enter into a written agreement for each |
| 11 | | such investment that specifies the period of the investment, |
| 12 | | the payment interval, the interest rate to be paid, the funds |
| 13 | | in the State Treasury from which the State Treasurer will draw |
| 14 | | the investment, and other terms upon which the State Treasurer |
| 15 | | and Comptroller mutually agree. Such investment agreements |
| 16 | | shall be public records and the State Treasurer shall post the |
| 17 | | terms of all such investment agreements on the State |
| 18 | | Treasurer's official website. In compliance with the |
| 19 | | intergovernmental agreement, the Comptroller shall order and |
| 20 | | the State Treasurer shall transfer amounts sufficient for the |
| 21 | | payment of principal and interest invested by the State |
| 22 | | Treasurer with the Office of the Comptroller under this |
| 23 | | paragraph from the General Revenue Fund or the Health |
| 24 | | Insurance Reserve Fund to the respective funds in the State |
| 25 | | Treasury from which the State Treasurer drew the investment. |
| 26 | | Public Act 100-1107 shall constitute an irrevocable and |
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| 1 | | continuing authority for all amounts necessary for the payment |
| 2 | | of principal and interest on the investments made with the |
| 3 | | Office of the Comptroller by the State Treasurer under this |
| 4 | | paragraph, and the irrevocable and continuing authority for |
| 5 | | and direction to the Comptroller and State Treasurer to make |
| 6 | | the necessary transfers. |
| 7 | | The State Treasurer may invest or reinvest any State money |
| 8 | | in the State Treasury that is not needed for current |
| 9 | | expenditure, due or about to become due, or any money in the |
| 10 | | State Treasury that has been set aside and held for the payment |
| 11 | | of the principal of and the interest on any State bonds, in any |
| 12 | | of the following: |
| 13 | | (1) Bonds, notes, certificates of indebtedness, |
| 14 | | Treasury bills, or other securities now or hereafter |
| 15 | | issued that are guaranteed by the full faith and credit of |
| 16 | | the United States of America as to principal and interest. |
| 17 | | (2) Bonds, notes, debentures, or other similar |
| 18 | | obligations of the United States of America, its agencies, |
| 19 | | and instrumentalities, or other obligations that are |
| 20 | | issued or guaranteed by supranational entities; provided, |
| 21 | | that at the time of investment, the entity has the United |
| 22 | | States government as a shareholder. |
| 23 | | (2.5) (Blank). Bonds, notes, debentures, or other |
| 24 | | similar obligations of a foreign government, other than |
| 25 | | the Republic of the Sudan, that are guaranteed by the full |
| 26 | | faith and credit of that government as to principal and |
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| 1 | | interest, but only if the foreign government has not |
| 2 | | defaulted and has met its payment obligations in a timely |
| 3 | | manner on all similar obligations for a period of at least |
| 4 | | 25 years immediately before the time of acquiring those |
| 5 | | obligations. |
| 6 | | (3) Interest-bearing savings accounts, |
| 7 | | interest-bearing certificates of deposit, |
| 8 | | interest-bearing time deposits, or any other investments |
| 9 | | constituting direct obligations of any bank as defined by |
| 10 | | the Illinois Banking Act. |
| 11 | | (4) Interest-bearing accounts, certificates of |
| 12 | | deposit, or any other investments constituting direct |
| 13 | | obligations of any savings and loan associations |
| 14 | | incorporated under the laws of this State or any other |
| 15 | | state or under the laws of the United States. |
| 16 | | (5) Dividend-bearing share accounts, share certificate |
| 17 | | accounts, or class of share accounts of a credit union |
| 18 | | chartered under the laws of this State or the laws of the |
| 19 | | United States; provided, however, the principal office of |
| 20 | | the credit union must be located within the State of |
| 21 | | Illinois. |
| 22 | | (6) Bankers' acceptances of banks whose senior |
| 23 | | obligations are rated in the top 2 rating categories by 2 |
| 24 | | national rating agencies and maintain that rating during |
| 25 | | the term of the investment and the bank has not been placed |
| 26 | | on the list of restricted companies by the Illinois |
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| 1 | | Investment Policy Board under Section 1-110.16 of the |
| 2 | | Illinois Pension Code. |
| 3 | | (7) Short-term obligations of either corporations or |
| 4 | | limited liability companies organized in the United States |
| 5 | | with assets exceeding $500,000,000 if (i) the obligations |
| 6 | | are rated at the time of purchase at one of the 3 highest |
| 7 | | classifications established by at least 2 standard rating |
| 8 | | services and mature not later than 270 days from the date |
| 9 | | of purchase, (ii) the purchases do not exceed 10% of the |
| 10 | | corporation's or the limited liability company's |
| 11 | | outstanding obligations, (iii) no more than one-third of |
| 12 | | the public agency's funds are invested in short-term |
| 13 | | obligations of either corporations or limited liability |
| 14 | | companies, and (iv) the corporation or the limited |
| 15 | | liability company has not been placed on the list of |
| 16 | | restricted companies by the Illinois Investment Policy |
| 17 | | Board under Section 1-110.16 of the Illinois Pension Code. |
| 18 | | (7.5) Obligations of either corporations or limited |
| 19 | | liability companies organized in the United States, that |
| 20 | | have a significant presence in this State, with assets |
| 21 | | exceeding $500,000,000 if: (i) the obligations are rated |
| 22 | | at the time of purchase at one of the 3 highest |
| 23 | | classifications established by at least 2 standard rating |
| 24 | | services and mature more than 270 days, but less than 10 |
| 25 | | years, from the date of purchase; (ii) the purchases do |
| 26 | | not exceed 10% of the corporation's or the limited |
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| 1 | | liability company's outstanding obligations; (iii) no more |
| 2 | | than one-third of the public agency's funds are invested |
| 3 | | in such obligations of corporations or limited liability |
| 4 | | companies; and (iv) the corporation or the limited |
| 5 | | liability company has not been placed on the list of |
| 6 | | restricted companies by the Illinois Investment Policy |
| 7 | | Board under Section 1-110.16 of the Illinois Pension Code. |
| 8 | | (8) Money market mutual funds registered under the |
| 9 | | Investment Company Act of 1940. |
| 10 | | (9) The Public Treasurers' Investment Pool created |
| 11 | | under Section 17 of the State Treasurer Act or in a fund |
| 12 | | managed, operated, and administered by a bank. |
| 13 | | (10) Repurchase agreements of government securities |
| 14 | | having the meaning set out in the Government Securities |
| 15 | | Act of 1986, as now or hereafter amended or succeeded, |
| 16 | | subject to the provisions of that Act and the regulations |
| 17 | | issued thereunder. |
| 18 | | (11) Investments made in accordance with the |
| 19 | | Technology Development Act. |
| 20 | | (12) Investments made in accordance with the Student |
| 21 | | Investment Account Act. |
| 22 | | (13) Investments constituting direct obligations of a |
| 23 | | community development financial institution, which is |
| 24 | | certified by the United States Treasury Community |
| 25 | | Development Financial Institutions Fund and is operating |
| 26 | | in the State of Illinois. |
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| 1 | | (14) Investments constituting direct obligations of a |
| 2 | | minority depository institution, as designated by the |
| 3 | | Federal Deposit Insurance Corporation, that is operating |
| 4 | | in the State of Illinois. |
| 5 | | (15) Investments made in accordance with any other law |
| 6 | | that authorizes the State Treasurer to invest or deposit |
| 7 | | funds. |
| 8 | | For purposes of this Section, "agencies" of the United |
| 9 | | States Government includes: |
| 10 | | (i) the federal land banks, federal intermediate |
| 11 | | credit banks, banks for cooperatives, federal farm credit |
| 12 | | banks, or any other entity authorized to issue debt |
| 13 | | obligations under the Farm Credit Act of 1971 (12 U.S.C. |
| 14 | | 2001 et seq.) and Acts amendatory thereto; |
| 15 | | (ii) the federal home loan banks and the federal home |
| 16 | | loan mortgage corporation; |
| 17 | | (iii) the Commodity Credit Corporation; and |
| 18 | | (iv) any other agency created by Act of Congress. |
| 19 | | The State Treasurer may lend any securities acquired under |
| 20 | | this Act. However, securities may be lent under this Section |
| 21 | | only in accordance with Federal Financial Institution |
| 22 | | Examination Council guidelines and only if the securities are |
| 23 | | collateralized at a level sufficient to assure the safety of |
| 24 | | the securities, taking into account market value fluctuation. |
| 25 | | The securities may be collateralized by cash or collateral |
| 26 | | acceptable under Sections 11 and 11.1. |