Sen. Linda Holmes supports SB3086, permitting state investments in select private placement securities

Sen. Linda Holmes (D-42nd) gave her support to SB3086 by voting Yes during the 104th General Assembly on May 31, 2026. The bill, which allows the state treasurer to invest state funds in certain private placement securities, passed in the Senate with a 51-6 vote, according to the Illinois Senate.

The official bill summary defines the legislation as "STATE PERMITTED INVESTMENTS."

The summary below presents our review of the bill's actual language and may clarify or interpret the details within the legislation.

In summary, the bill changes the Deposit of State Moneys Act to permit the state treasurer to invest public funds in private placement fixed income securities that qualify for exemption from Securities and Exchange Commission registration. Qualifying entities must maintain a significant presence in Illinois and hold assets above $1 billion. The law restricts purchases to no more than 5% of the issuer’s total assets and no more than 1% of agency funds with each issuer, and excludes all issuers listed as restricted by the Illinois Investment Policy Board. It becomes effective once signed into law.

The legislative history for SB3086 includes the recorded action 'House Floor Amendment No. 1 Senate Concurs.'

Holmes earned a BA from National College of Education in 1984.

Holmes has served as a Democratic state senator for Illinois' 42nd District since 2007, succeeding Phyllis Petka.

Illinois legislation follows a multi-step process beginning with bill introduction in either chamber, followed by committee evaluation, floor debate, and approval by both the House and Senate before the measure is sent to the governor for a final decision. The General Assembly operates on a biennial cycle and considers thousands of bills in each session, yet only a limited number clear the full process and are enacted into law.