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| Public Act 102-1108
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| HB1293 Enrolled | LRB102 03303 RJF 13316 b |
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AN ACT concerning government.
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Be it enacted by the People of the State of Illinois, |
represented in the General Assembly:
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Article 1.
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Section 1-1. Findings. |
(a) The General Assembly finds that: |
(1) Russia launched an unprecedented military assault |
on Ukraine that has left many dead, and the fighting in |
Ukraine appears to be some of the worst conventional |
warfare Europe has seen since World War II and the |
conflicts in the Balkans in the 1990s; |
(2) Western leaders have been united in their swift |
and strong condemnation of Russia's military action; |
(3) President Biden has stated that Russian President |
Putin had "committed an assault on the very principles |
that uphold the global peace", and the United States has, |
as a result, taken steps to impose harsh, new sanctions |
that are intended to punish President Putin for his |
actions; |
(4) Secretary of State Blinken has indicated that |
there are credible reports that Russia has engaged in |
actions during its military assault on Ukraine that |
constitute war crimes under international law; |
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(5) Russia has used, during its military assault on |
Ukraine, weapons that have been banned by many countries, |
including cluster munitions; |
(6) Russia has conducted direct attacks on major |
nuclear power facilities in Ukraine, which could lead to |
disaster and the spread of radioactive contamination |
across Ukraine and Europe; |
(7) the United Nations has estimated that more than |
14,000,000 Ukrainians have already been displaced within |
the country and more than 7,000,000 have left the country |
as a result of the Russian invasion; |
(8) the international community is making preparations |
to meet the humanitarian needs of those refugees who are |
displaced by this conflict; |
(9) Central Europe is welcoming Ukrainians, but the |
countries in that region are not currently equipped to |
handle the volume of refugees that are anticipated to |
arrive at their borders in the coming weeks, and European |
and U.S. leadership must help build that capacity; and |
(10) Illinois is a welcoming state to refugees and |
immigrants and home to a robust community of Ukrainian |
immigrants and Ukrainian descendants, many of whom live in |
Chicago's Ukrainian Village neighborhood. |
(b) For these reasons, the General Assembly urges: |
(1) the pension funds and retirement systems |
established under the Illinois Pension Code to divest |
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their holdings in any companies that are domiciled in |
Russia or Belarus and that are on the list of restricted |
companies developed by the Illinois Investment Policy |
Board; |
(2) all municipalities to reconsider any sister-city |
relationships they may have with cities in Russia; and |
(3) the United States Department of State to resettle |
Ukrainian refugees in Illinois.
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Article 5.
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Section 5-1. Short title. This Article may be cited as the |
Money Laundering in Real Estate Task Force Act. References in |
this Article to "this Act" mean this Article.
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Section 5-3. Findings. The General Assembly finds and |
declares the following:
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(1) the United States Department of Treasury's |
Financial Crimes Enforcement Network found, in 2017, that |
30% of all high-end real estate purchases in major |
metropolitan areas involved beneficial owners or |
purchasers who were the subject of previous suspicious |
activity reports; |
(2) the United States, unlike Canada and several other |
jurisdictions, does not require real estate agents and |
brokers to file suspicious transaction reports; |
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(3) the lack of beneficial ownership transparency is |
an important factor in facilitating money laundering in |
real estate; and |
(4) money laundering in real estate has negative |
consequences for local communities, including the |
dislocation of residents from and within major |
metropolitan areas.
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Section 5-5. Money Laundering in Real Estate Task Force.
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(a) The Money Laundering in Real Estate Task Force is |
created. The Task Force shall consist of the following |
members:
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(1) 4 members appointed one each by the Speaker of the |
House of Representatives, the Minority Leader of the House |
of Representatives, the President of the Senate, and the |
Minority Leader of the Senate;
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(2) the Secretary of Financial and Professional |
Regulation or the Secretary's designee;
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(3) the Director of Revenue or the Director's |
designee; |
(4) 2 members of the faculty of an institution of |
higher education in the State with subject matter |
expertise regarding money laundering in real estate, |
appointed by the Governor;
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(5) one expert on real estate tax law, appointed by |
the Governor; |
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(6) one representative of banking institutions with |
assets of at least $1,000,000,000, appointed by the |
Governor; |
(7) one representative of banking institutions with |
assets below $1,000,000,000, appointed by the Governor; |
(8) 2 representatives of a statewide organization |
representing real estate brokers, appointed by the |
Governor; and |
(9) 4 members with backgrounds in real estate, |
financial institutions, or law, appointed one each by the |
Speaker of the House of Representatives, the Minority |
Leader of the House of Representatives, the President of |
the Senate, and the Minority Leader of the Senate. |
(b) Initial appointments to the Task Force shall be made |
as soon as practicable after the effective date of this Act. |
The Task Force shall hold its first meeting within a |
reasonable period of time after its members have been |
appointed and shall convene regularly to carry out its duties |
and submit the reports required under this Act. At its first |
meeting, the Task Force shall elect its chairperson and any |
other officers from among its members. |
(c) The Department of Financial and Professional |
Regulation and the Department of Revenue shall provide |
administrative and other support to the Task Force.
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Section 5-10. Duties. The Task Force shall: |
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(1) identify vulnerabilities in the real estate sector |
that facilitate money laundering; |
(2) provide guidance to help actors in the real estate |
sector identify suspicious transactions and report them to |
the proper authorities; |
(3) explore the means by which illicit money is |
channeled into the real estate sector and integrated into |
the legal economy, including, but not limited to, cash |
purchases, complex loans, monetary instruments, mortgages, |
investment institutions, fraudulent appraisals, and |
anonymous corporate entities; |
(4) assess the exposure of the residential, |
industrial, and commercial real estate sectors in Illinois |
to illicit Russian money, including, but not limited to, |
luxury real estate in Chicago and nonresidential real |
estate in downstate communities; and |
(5) assess real estate due diligence and reporting |
practices, requirements, and laws in Illinois and |
recommend changes needed to eliminate systemic |
vulnerabilities that facilitate foreign money laundering.
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Section 5-15. Reports. The Task Force shall submit a |
report to the Governor and the General Assembly not later than |
12 months after the effective date of this Act. The report |
shall include the Task Force's findings and shall summarize |
the actions the Task Force has taken and those it intends to |
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take in response to its obligations under the Act. After it |
submits its initial report, the Task Force shall periodically |
submit reports to the Governor and the General Assembly as the |
chairperson of the Task Force deems necessary to apprise those |
officials of any additional findings made or actions taken by |
the Task Force. The obligation of the Task Force to submit |
periodic reports shall continue for the duration of the Task |
Force.
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Section 5-20. Dissolution of Task Force; repeal. The Task |
Force is dissolved on January 1, 2025. This Act is repealed on |
January 1, 2026.
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Article 10.
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Section 10-5. The Illinois Administrative Procedure Act is |
amended by adding Section 5-45.35 as follows:
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(5 ILCS 100/5-45.35 new) |
Sec. 5-45.35. Emergency rulemaking; Refugee Resettlement |
Program. To ensure the availability of refugee resettlement |
program services in the case of an imminent, large-scale |
refugee resettlement event, emergency rules may be adopted in |
accordance with Section 5-45 by the Department of Human |
Services. The adoption of emergency rules authorized by |
Section 5-45 and this Section is deemed to be necessary for the |
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public interest, safety, and welfare. |
This Section is repealed one year after the effective date |
of this amendatory Act of the 102nd General Assembly.
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Section 10-7. The Election Code is amended by adding |
Section 1-22 as follows:
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(10 ILCS 5/1-22 new) |
Sec. 1-22. The Illinois Elections and Infrastructure |
Integrity Task Force. |
(a) The Illinois Elections and Infrastructure Integrity |
Task Force is created. The Task Force shall consist of the |
following members: |
(1) 4 members appointed one each by the Speaker of the |
House of Representatives, the Minority Leader of the House |
of Representatives, the President of the Senate, and the |
Minority Leader of the Senate; |
(2) one member with subject matter expertise regarding |
cybersecurity, appointed by the Minority Leader of the |
House of Representatives; |
(3) one member with subject matter expertise regarding |
voting technology or election integrity, appointed by the |
Speaker of the House; |
(4) one member who is an individual with current |
experience in operational cybersecurity, preferably |
international operational cybersecurity, appointed by the |
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President of the Senate; |
(5) one county clerk, appointed by the Minority Leader |
of the Senate; |
(6) the Chair of the Board of Election Commissioners |
for the City of Chicago or the Chair's designee; |
(7) the county clerk of Cook County; |
(8) one election administrator, appointed by the |
Governor; |
(9) the Executive Director of the State Board of |
Elections or the Executive Director's designee; |
(10) the Secretary of State or the Secretary's |
designee; |
(11) the Director of the Illinois Emergency Management |
Agency or the Director's designee; |
(12) the Secretary of Innovation and Technology or the |
Secretary's designee; and |
(13) the Attorney General or the Attorney General's |
designee. |
(b) The Task Force shall evaluate and make recommendations |
to prepare for and prevent foreign interference in elections |
in advance of the 2024 election and all future elections in the |
State and to prepare for and prevent potential cyberattacks on |
State infrastructure. In carrying out its duties, the Task |
Force shall prioritize the security of all Illinois residents |
and cooperation with other states and with law enforcement to |
protect United States national sovereignty. The Task Force |
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shall submit a report containing its findings and |
recommendations to the Governor and the General Assembly not |
later than January 1, 2024. The Task Force shall also submit a |
report evaluating the 2024 election to the Governor and the |
General Assembly not later than March 1, 2025. |
(c) The State Board of Elections shall provide staff and |
administrative support to the Task Force. |
(d) The Task Force is dissolved, and this Section is |
repealed, on June 1, 2025.
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Section 10-10. The Deposit of State Moneys Act is amended |
by adding Section 22.7 as follows:
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(15 ILCS 520/22.7 new) |
Sec. 22.7. Russian or Belarusian investments prohibited. |
Notwithstanding any provision of law to the contrary, the |
State Treasurer shall not invest State money in Russian or |
Belarusian sovereign debt, Russian or Belarusian |
government-backed securities, any investment instrument issued |
by an entity that is domiciled or has its principal place of |
business in Russia or Belarus, or any investment instrument |
issued by a company that is subject to Russian Harmful Foreign |
Activities Sanctions, as that term is defined under Section |
1-110.16 of the Illinois Pension Code, and shall not invest or |
deposit State money in any bank that is domiciled or has its |
principal place of business in Russia or Belarus or in any |
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other financial institution that is domiciled or has its |
principal place of business in Russia or Belarus or that is |
subject to Russian Harmful Foreign Activities Sanctions.
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Section 10-20. The Illinois State Police Law of the
Civil |
Administrative Code of Illinois is amended by changing Section |
2605-35 as follows:
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(20 ILCS 2605/2605-35) (was 20 ILCS 2605/55a-3)
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Sec. 2605-35. Division of Criminal
Investigation. |
(a) The Division of Criminal
Investigation shall exercise
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the following functions and those in Section 2605-30:
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(1) Exercise the rights, powers, and duties vested by
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law in the Illinois State Police by the Illinois Horse |
Racing Act of 1975, including those set forth in Section |
2605-215.
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(2) Investigate the origins, activities, personnel, |
and
incidents of crime and enforce the criminal laws of |
this State related thereto.
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(3) Enforce all laws regulating the production, sale,
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prescribing, manufacturing, administering, transporting, |
having in possession,
dispensing, delivering, |
distributing, or use of controlled substances
and |
cannabis.
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(4) Cooperate with the police of cities, villages, and
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incorporated towns and with the police officers of any |
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county in
enforcing the laws of the State and in making |
arrests and recovering
property.
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(5) Apprehend and deliver up any person charged in |
this State or any other
state with treason or a felony or |
other crime who has fled from justice and is
found in this |
State.
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(6) Investigate recipients and providers under the |
Illinois Public Aid
Code and any personnel involved in the |
administration of the Code who are
suspected of any |
violation of the Code pertaining to fraud in the
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administration, receipt, or provision of assistance and |
pertaining to any
violation of criminal law; and exercise |
the functions required under Section
2605-220 in the |
conduct of those investigations.
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(7) Conduct other investigations as provided by law.
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(8) Investigate public corruption.
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(9) Exercise other duties that may be assigned by the |
Director in order to
fulfill the responsibilities and |
achieve the purposes of the Illinois State Police, which |
may include the coordination of gang, terrorist, and |
organized crime prevention, control activities, and |
assisting local law enforcement in their crime control |
activities.
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(10) Conduct investigations (and cooperate with |
federal law enforcement agencies in the investigation) of |
any property-related crimes, such as money laundering, |
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involving individuals or entities listed on the sanctions |
list maintained by the U.S. Department of Treasury's |
Office of Foreign Asset Control. |
(b) (Blank).
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(Source: P.A. 102-538, eff. 8-20-21; 102-813, eff. 5-13-22.)
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Section 10-30. The Public Funds Investment Act is amended |
by adding Section 2.3 as follows:
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(30 ILCS 235/2.3 new) |
Sec. 2.3. Russian or Belarusian investments prohibited. |
Notwithstanding any provision of law to the contrary, a public |
agency shall not invest public funds in Russian or Belarusian |
sovereign debt, Russian or Belarusian government-backed |
securities, any investment instrument issued by an entity that |
is domiciled or has its principal place of business in Russia |
or Belarus, or any investment instrument issued by a company |
that is subject to Russian Harmful Foreign Activities |
Sanctions, as that term is defined under Section 1-110.16 of |
the Illinois Pension Code, and shall not invest or deposit |
public funds in any bank that is domiciled or has its principal |
place of business in Russia or Belarus or in any other |
financial institution that is domiciled or has its principal |
place of business in Russia or Belarus or that is subject to |
Russian Harmful Foreign Activities Sanctions.
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Section 10-35. The Illinois Pension Code is amended by |
changing Section 1-110.16 as follows:
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(40 ILCS 5/1-110.16) |
Sec. 1-110.16. Transactions prohibited by retirement |
systems; companies that boycott Israel, for-profit companies |
that contract to shelter migrant children, Iran-restricted |
companies, Sudan-restricted companies, and expatriated |
entities, companies that are domiciled or have their principal |
place of business in Russia or Belarus, and companies that are |
subject to Russian Harmful Foreign Activities Sanctions. |
(a) As used in this Section: |
"Boycott Israel" means engaging in actions that are |
politically motivated and are intended to penalize, |
inflict economic harm on, or otherwise limit commercial |
relations with the State of Israel or companies based in |
the State of Israel or in territories controlled by the |
State of Israel. |
"Company" means any sole proprietorship, organization, |
association, corporation, partnership, joint venture, |
limited partnership, limited liability partnership, |
limited liability company, or other entity or business |
association, including all wholly owned subsidiaries, |
majority-owned subsidiaries, parent companies, or |
affiliates of those entities or business associations, |
that exist for the purpose of making profit. |
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"Company that is subject to Russian Harmful Foreign |
Activities Sanctions" means a company that is subject to |
sanctions under the Russian Harmful Foreign Activities |
Sanctions Regulations (31 CFR Part 587), any Presidential |
Executive Order imposing sanctions against Russia, or any |
federal directive issued pursuant to any such Executive |
Order. |
"Contract to shelter migrant children" means entering |
into a contract with the federal government to shelter |
migrant children under the federal Unaccompanied Alien |
Children Program or a substantially similar federal |
program. |
"Illinois Investment Policy Board" means the board |
established under subsection (b) of this Section. |
"Direct holdings" in a company means all publicly |
traded securities of that company that are held directly |
by the retirement system in an actively managed account or |
fund in which the retirement system owns all shares or |
interests. |
"Expatriated entity" has the meaning ascribed to it in |
Section 1-15.120 of the Illinois Procurement Code. |
"Illinois Investment Policy Board" means the board |
established under subsection (b) of this Section. |
"Indirect holdings" in a company means all securities |
of that company that are held in an account or fund, such |
as a mutual fund, managed by one or more persons not |
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employed by the retirement system, in which the retirement |
system owns shares or interests together with other |
investors not subject to the provisions of this Section or |
that are held in an index fund. |
"Iran-restricted company" means a company that meets |
the qualifications under Section 1-110.15 of this Code. |
"Private market fund" means any private equity fund, |
private equity funds of funds, venture capital fund, hedge |
fund, hedge fund of funds, real estate fund, or other |
investment vehicle that is not publicly traded. |
"Restricted companies" means companies that boycott |
Israel, for-profit companies that contract to shelter |
migrant children, Iran-restricted companies, |
Sudan-restricted companies, and expatriated entities, |
companies that are domiciled or have their principal place |
of business in Russia or Belarus, and companies that are |
subject to Russian Harmful Foreign Activities Sanctions. |
"Retirement system" means a retirement system |
established under Article 2, 14, 15, 16, or 18 of this Code |
or the Illinois State Board of Investment. |
"Sudan-restricted company" means a company that meets |
the qualifications under Section 1-110.6 of this Code. |
(b) There shall be established an Illinois Investment |
Policy Board. The Illinois Investment Policy Board shall |
consist of 7 members. Each board of a pension fund or |
investment board created under Article 15, 16, or 22A of this |
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Code shall appoint one member, and the Governor shall appoint |
4 members. The Governor shall designate one member of the |
Board as the Chairperson. |
(b-5) The term of office of each member appointed by the |
Governor, who is serving on the Board on June 30, 2022, is |
abolished on that date. The terms of office of members |
appointed by the Governor after June 30, 2022 shall be as |
follows: 2 initial members shall be appointed for terms of 2 |
years, and 2 initial members shall be appointed for terms of 4 |
years. Thereafter, the members appointed by the Governor shall |
hold office for 4 years, except that any member chosen to fill |
a vacancy occurring otherwise than by expiration of a term |
shall be appointed only for the unexpired term of the member |
whom he or she shall succeed. Board members may be |
reappointed. The Governor may remove a Governor's appointee to |
the Board for incompetence, neglect of duty, malfeasance, or |
inability to serve. |
(c) Notwithstanding any provision of law to the contrary, |
beginning January 1, 2016, Sections 1-110.15 110.15 and |
1-110.6 of this Code shall be administered in accordance with |
this Section. |
(d) By April 1, 2016, the Illinois Investment Policy Board |
shall make its best efforts to identify all Iran-restricted |
companies, Sudan-restricted companies, and companies that |
boycott Israel and assemble those identified companies into a |
list of restricted companies, to be distributed to each |
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retirement system. |
These efforts shall include the following, as appropriate |
in the Illinois Investment Policy Board's judgment: |
(1) reviewing and relying on publicly available |
information regarding Iran-restricted companies, |
Sudan-restricted companies, and companies that boycott |
Israel, including information provided by nonprofit |
organizations, research firms, and government entities; |
(2) contacting asset managers contracted by the |
retirement systems that invest in Iran-restricted |
companies, Sudan-restricted companies, and companies that |
boycott Israel; |
(3) contacting other institutional investors that have |
divested from or engaged with Iran-restricted companies, |
Sudan-restricted companies, and companies that boycott |
Israel; and |
(4) retaining an independent research firm to identify |
Iran-restricted companies, Sudan-restricted companies, |
and companies that boycott Israel. |
The Illinois Investment Policy Board shall review the list |
of restricted companies on a quarterly basis based on evolving |
information from, among other sources, those listed in this |
subsection (d) and distribute any updates to the list of |
restricted companies to the retirement systems and the State |
Treasurer. |
By April 1, 2018, the Illinois Investment Policy Board |
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shall make its best efforts to identify all expatriated |
entities and include those companies in the list of restricted |
companies distributed to each retirement system and the State |
Treasurer. These efforts shall include the following, as |
appropriate in the Illinois Investment Policy Board's |
judgment: |
(1) reviewing and relying on publicly available |
information regarding expatriated entities, including |
information provided by nonprofit organizations, research |
firms, and government entities; |
(2) contacting asset managers contracted by the |
retirement systems that invest in expatriated entities; |
(3) contacting other institutional investors that have |
divested from or engaged with expatriated entities; and |
(4) retaining an independent research firm to identify |
expatriated entities. |
By July 1, 2022, the Illinois Investment Policy Board |
shall make its best efforts to identify all for-profit |
companies that contract to shelter migrant children and |
include those companies in the list of restricted companies |
distributed to each retirement system. These efforts shall |
include the following, as appropriate in the Illinois |
Investment Policy Board's judgment: |
(1) reviewing and relying on publicly available |
information regarding for-profit companies that contract |
to shelter migrant children, including information |
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provided by nonprofit organizations, research firms, and |
government entities; |
(2) contacting asset managers contracted by the |
retirement systems that invest in for-profit companies |
that contract to shelter migrant children; |
(3) contacting other institutional investors that have |
divested from or engaged with for-profit companies that |
contract to shelter migrant children; and |
(4) retaining an independent research firm to identify |
for-profit companies that contract to shelter migrant |
children. |
No later than 6 months after the effective date of this |
amendatory Act of the 102nd General Assembly, the Illinois |
Investment Policy Board shall make its best efforts to |
identify all companies that are domiciled or have their |
principal place of business in Russia or Belarus and companies |
that are subject to Russian Harmful Foreign Activities |
Sanctions and include those companies in the list of |
restricted companies distributed to each retirement system. |
These efforts shall include the following, as appropriate in |
the Illinois Investment Policy Board's judgment: |
(1) reviewing and relying on publicly available
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information regarding companies that are domiciled or have |
their principal place of business in Russia or Belarus and |
companies that are subject to Russian Harmful Foreign |
Activities Sanctions, including information provided by |
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nonprofit organizations, research firms, and government |
entities; |
(2) contacting asset managers contracted by the
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retirement systems that invest in companies that are |
domiciled or have their principal place of business in |
Russia or Belarus and companies that are subject to |
Russian Harmful Foreign Activities Sanctions; |
(3) contacting other institutional investors that have |
divested from or engaged with companies that are domiciled |
or have their principal place of business in Russia or |
Belarus and companies that are subject to Russian Harmful |
Foreign Activities Sanctions; and |
(4) retaining an independent research firm to
identify |
companies that are domiciled or have their principal place |
of business in Russia or Belarus and companies that are |
subject to Russian Harmful Foreign Activities Sanctions. |
(e) The Illinois Investment Policy Board shall adhere to |
the following procedures for companies on the list of |
restricted companies: |
(1) For each company newly identified in subsection |
(d), the Illinois Investment Policy Board, unless it |
determines by an affirmative vote that it is unfeasible, |
shall send a written notice informing the company of its |
status and that it may become subject to divestment or |
shareholder activism by the retirement systems. |
(2) If, following the Illinois Investment Policy |
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Board's engagement pursuant to this subsection (e) with a |
restricted company, that company ceases activity that |
designates the company to be an Iran-restricted company, a |
Sudan-restricted company, a company that boycotts Israel, |
an expatriated entity, or a for-profit company that |
contracts to shelter migrant children, the company shall |
be removed from the list of restricted companies and the |
provisions of this Section shall cease to apply to it |
unless it resumes such activities. |
(3) For a company that is domiciled or has its |
principal place of business in Russia or Belarus, if, |
following the Illinois Investment Policy Board's |
engagement pursuant to this subsection (e), that company |
is no longer domiciled or has its principal place of |
business in Russia or Belarus, the company shall be |
removed from the list of restricted companies and the |
provisions of this Section shall cease to apply to it |
unless it becomes domiciled or has its principal place of |
business in Russia or Belarus. |
(4) For a company that is subject to Russian Harmful |
Foreign Activities Sanctions, if, following the Illinois |
Investment Policy Board's engagement pursuant to this |
subsection (e), that company is no longer subject to |
Russian Harmful Foreign Activities Sanctions, the company |
shall be removed from the list of restricted companies and |
the provisions of this Section shall cease to apply to it |
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unless it becomes subject to Russian Harmful Foreign |
Activities Sanctions. |
(f) Except as provided in subsection (f-1) of this Section |
the retirement system shall adhere to the following procedures |
for companies on the list of restricted companies: |
(1) The retirement system shall identify those |
companies on the list of restricted companies in which the |
retirement system owns direct holdings and indirect |
holdings. |
(2) The retirement system shall instruct its |
investment advisors to sell, redeem, divest, or withdraw |
all direct holdings of restricted companies from the |
retirement system's assets under management in an orderly |
and fiduciarily responsible manner within 12 months after |
the company's most recent appearance on the list of |
restricted companies. |
(3) The retirement system may not acquire securities |
of restricted companies. |
(4) The provisions of this subsection (f) do not apply |
to the retirement system's indirect holdings or private |
market funds. The Illinois Investment Policy Board shall |
submit letters to the managers of those investment funds |
containing restricted companies requesting that they |
consider removing the companies from the fund or create a |
similar actively managed fund having indirect holdings |
devoid of the companies. If the manager creates a similar |
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fund, the retirement system shall replace all applicable |
investments with investments in the similar fund in an |
expedited timeframe consistent with prudent investing |
standards. |
(f-1) The retirement system shall adhere to the following |
procedures for restricted companies that are expatriated |
entities or for-profit companies that contract to shelter |
migrant children: |
(1) To the extent that the retirement system believes |
that shareholder activism would be more impactful than |
divestment, the retirement system shall have the authority |
to engage with a restricted company prior to divesting. |
(2) Subject to any applicable State or Federal laws, |
methods of shareholder activism utilized by the retirement |
system may include, but are not limited to, bringing |
shareholder resolutions and proxy voting on shareholder |
resolutions. |
(3) The retirement system shall report on its |
shareholder activism and the outcome of such efforts to |
the Illinois Investment Policy Board by April 1 of each |
year. |
(4) If the engagement efforts of the retirement system |
are unsuccessful, then it shall adhere to the procedures |
under subsection (f) of this Section. |
(f-5) Beginning on the effective date of this amendatory |
Act of the 102nd General Assembly, no retirement system shall |
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invest moneys in Russian or Belarusian sovereign debt, Russian |
or Belarusian government-backed securities, any investment |
instrument issued by an entity that is domiciled or has its |
principal place of business in Russia or Belarus, or any |
investment instrument issued by a company that is subject to |
Russian Harmful Foreign Activities Sanctions, and no |
retirement system shall invest or deposit State moneys in any |
bank that is domiciled or has its principal place of business |
in Russia or Belarus. As soon as practicable after the |
effective date of this amendatory Act of the 102nd General |
Assembly, each retirement system shall instruct its investment |
advisors to sell, redeem, divest, or withdraw all direct |
holdings of Russian or Belarusian sovereign debt and direct |
holdings of Russian or Belarusian government-backed securities |
from the retirement system's assets under management in an |
orderly and fiduciarily responsible manner. |
Notwithstanding any provision of this Section to the |
contrary, a retirement system may cease divestment pursuant to |
this subsection (f-5) if clear and convincing evidence shows |
that the value of investments in such Russian or Belarusian |
sovereign debt and Russian or Belarusian government-backed |
securities becomes equal to or less than 0.05% of the market |
value of all assets under management by the retirement system. |
For any cessation of divestment authorized by this subsection |
(f-5), the retirement system shall provide a written notice to |
the Illinois Investment Policy Board in advance of the |
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cessation of divestment, setting forth the reasons and |
justification, supported by clear and convincing evidence, for |
its decision to cease divestment under this subsection (f-5). |
The provisions of this subsection (f-5) do not apply to |
the retirement system's indirect holdings or private market |
funds. |
(g) Upon request, and by April 1 of each year, each |
retirement system shall provide the Illinois Investment Policy |
Board with information regarding investments sold, redeemed, |
divested, or withdrawn in compliance with this Section. |
(h) Notwithstanding any provision of this Section to the |
contrary, a retirement system may cease divesting from |
companies pursuant to subsection (f) if clear and convincing |
evidence shows that the value of investments in such companies |
becomes equal to or less than 0.5% of the market value of all |
assets under management by the retirement system. For any |
cessation of divestment authorized by this subsection (h), the |
retirement system shall provide a written notice to the |
Illinois Investment Policy Board in advance of the cessation |
of divestment, setting forth the reasons and justification, |
supported by clear and convincing evidence, for its decision |
to cease divestment under subsection (f). |
(i) The cost associated with the activities of the |
Illinois Investment Policy Board shall be borne by the boards |
of each pension fund or investment board created under Article |
15, 16, or 22A of this Code. |
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(j) With respect to actions taken in compliance with this |
Section, including all good-faith determinations regarding |
companies as required by this Section, the retirement system |
and Illinois Investment Policy Board are exempt from any |
conflicting statutory or common law obligations, including any |
fiduciary duties under this Article and any obligations with |
respect to choice of asset managers, investment funds, or |
investments for the retirement system's securities portfolios. |
(k) It is not the intent of the General Assembly in |
enacting this amendatory Act of the 99th General Assembly to |
cause divestiture from any company based in the United States |
of America. The Illinois Investment Policy Board shall |
consider this intent when developing or reviewing the list of |
restricted companies. |
(l) If any provision of this amendatory Act of the 99th |
General Assembly or its application to any person or |
circumstance is held invalid, the invalidity of that provision |
or application does not affect other provisions or |
applications of this amendatory Act of the 99th General |
Assembly that can be given effect without the invalid |
provision or application.
|
If any provision of Public Act 100-551 or its application |
to any person or circumstance is held invalid, the invalidity |
of that provision or application does not affect other |
provisions or applications of Public Act 100-551 that can be |
given effect without the invalid provision or application. |
|
If any provision of Public Act 102-118 this amendatory Act |
of the 102nd General Assembly or its application to any person |
or circumstance is held invalid, the invalidity of that |
provision or application does not affect other provisions or |
applications of Public Act 102-118 this amendatory Act of the |
102nd General Assembly that can be given effect without the |
invalid provision or application. |
If any provision of this amendatory Act of the 102nd |
General Assembly or its application to any person or |
circumstance is held invalid, the invalidity of that provision |
or application does not affect other provisions or |
applications of this amendatory Act of the 102nd General |
Assembly that can be given effect without the invalid |
provision or application. |
(Source: P.A. 102-118, eff. 7-23-21; 102-699, eff. 4-19-22.)
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Section 10-40. The Board of Higher Education Act is |
amended by adding Section 9.42 as follows:
|
(110 ILCS 205/9.42 new) |
Sec. 9.42. Disclosure of donations from certain Russian, |
Belarusian, or sanctioned sources. The Board shall require |
each public institution of higher education to disclose to the |
Board any endowment or other donation given to the institution |
from a source associated with any individual or entity listed |
on the sanctions list maintained by the U.S. Department of |
|
Treasury's Office of Foreign Asset Control or any company that |
is domiciled or has its principal place of business in Russia |
or Belarus and is on the list of restricted companies |
developed by the Illinois Investment Policy Board under |
Section 1-110.16 of the Illinois Pension Code.
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Article 99.
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Section 99-97. Severability. The provisions of this Act |
are severable under Section 1.31 of the Statute on Statutes.
|
Section 99-99. Effective date. This Act takes effect upon |
becoming law.
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