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SB 3423

DNR-STATE MUSEUM TRUST FUND

104th Regular Session Introduced by Dave Koehler

Creates a dedicated State Museum Collection Fund for acquiring and preserving objects, with limited procurement exemptions and oversight.

Rule 3-9(a) / Re-referred to Assignments
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Bill Summary · SB 3423

Summary of SB 3423 (104th Illinois General Assembly)

Date introduced: February 4, 2026
Sponsor: Senator David Koehler (co-sponsor: Dave Koehler)

Purpose and main intent
- Create a dedicated Illinois State Museum Collection Trust Fund within the State treasury.
- Provide a dedicated funding mechanism for the Illinois State Museum to acquire and maintain scientific, historic, and artistic objects.
- Clarify procurement exemptions for expenditures from this Fund to facilitate museum needs, while preserving overall procurement oversight.

Key provisions

1) Illinois State Museum Collection Trust Fund
- Creation: A nonappropriated trust fund in the State treasury named the Illinois State Museum Collection Trust Fund.
- Funding sources: The Fund shall receive all moneys from the deaccession of objects possessed by the State Museum that have scientific, historic, or artistic value. It may also receive transfers, awards, deposits, or other funds from public or private sources for purposes described in subsection (b).
- Authorized uses (subsection (b)):
- (1) Purchase objects of scientific, historic, and artistic value for the State Museum.
- (2) Maintain objects in the State Museum’s possession.
- Fiscal protections (subsection (c)):
- The Fund is exempt from sweeps, administrative chargebacks, or other transfers that would move funds out of the Fund to other state funds.

2) Department of Natural Resources Act amendments
- Adds Sec. 20-25 establishing the Illinois State Museum Collection Trust Fund (see above).

3) Illinois Procurement Code amendments
- Exemption: The Department may authorize expenditures from the Illinois State Museum Collection Trust Fund that fall under the Fund’s purposes, exempting those expenditures from certain procurement requirements.
- This creates a specific, targeted exemption for the Fund’s use while maintaining otherwise applicable procurement rules for most state purchases.

4) Procurement Code text changes (contextual)
- The bill includes a broad Section 1-10 amendment to the Illinois Procurement Code, outlining general applicability, exemptions, and cross-references to other acts. A notable change relevant to SB 3423 is the explicit exemption (for paragraph (9.5) within the Code’s subsection (b)) allowing the Department to expend from the State Museum Collection Trust Fund without full compliance with all standard procurement requirements, subject to the Fund’s purpose and with potential Chief Procurement Officer oversight and justification.

What would be affected

  • State Museum operations: The State Museum gains a dedicated, nonappropriated funding stream to acquire and care for its collections.
  • Department of Natural Resources: As the administering department for the new Fund, it would manage Fund-related receipts and expenditures for museum purposes.
  • State procurement processes: The Procurement Code would be amended to permit certain expenditures from the Museum Fund to bypass some standard procurement requirements, subject to oversight and justification.

Procedural and timeline aspects

  • Effective date and implementation: The bill sets up a new Fund and related exemptions; specific operative dates align with the statute text references (the bill text indicates amendments to statutes and associated act dates, consistent with typical Illinois bill implementation timelines). The provided text shows several cross-references to prior acts and sunsetting provisions for other exemptions, but the core new Fund appears immediately operative upon passage.
  • Oversight and reporting: The text requires Chief Procurement Officer involvement for exemptions and mandates reporting of exempt contracts in line with existing procurement transparency practices (monthly reporting to the Chief Procurement Officer and annual Governor/General Assembly summaries).

Overall impact

  • Financial: Establishes a permanent, dedicated source of funding for the State Museum via deaccession proceeds and other sources, improving ability to acquire and maintain collections.
  • Operational: Allows more streamlined use of funds for museum purchases and preservation, with procurement flexibility under controlled conditions.
  • Accountability: Maintains procurement oversight through the Chief Procurement Officer and statutory reporting requirements to ensure transparency for exempted expenditures.

Compiled from official sources — confirm details with the bill’s official record.

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