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. LRB104 11308 SPS 21394 b A BILL FOR 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 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. LRB104 11308 SPS 21394 b LRB104 11308 SPS 21394 b A BILL FOR
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 15 ILCS 520/22.5 from Ch. 130, par. 41a
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.
LRB104 11308 SPS 21394 b LRB104 11308 SPS 21394 b
LRB104 11308 SPS 21394 b
A BILL FOR
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SB2449 LRB104 11308 SPS 21394 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.
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 15 ILCS 520/22.5 from Ch. 130, par. 41a
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.
LRB104 11308 SPS 21394 b LRB104 11308 SPS 21394 b
LRB104 11308 SPS 21394 b
A BILL FOR
15 ILCS 520/22.5 from Ch. 130, par. 41a
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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.
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