Bill Text: IL HB1605 | 2019-2020 | 101st General Assembly | Introduced


Bill Title: Amends the General Provisions Article of the Illinois Pension Code. By no later than December 31, 2020, requires every pension fund, except for a Downstate Police or Downstate Firefighter fund, to develop a climate change risk minimization policy. Provides that the policy shall consider the financial risk to the investments held by the pension fund in the event of different levels of climate change, as defined by the United Nations Framework Convention on Climate Change. Requires the policy to explain what sources of data, which must include specified sources, were used to make certain projections. Requires the policy to consider the scope of the financial risk of climate-related events. Authorizes the pension fund to determine a policy for all corporate equities held by the pension fund on voting for shareholder resolutions and directors to advance corporate policies that minimize the long-term risk to the pension fund's assets from increased climate change. Requires the policy to be updated annually and published on the pension fund's website. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2019-03-29 - Rule 19(a) / Re-referred to Rules Committee [HB1605 Detail]

Download: Illinois-2019-HB1605-Introduced.html


101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB1605

Introduced , by Rep. Camille Y. Lilly

SYNOPSIS AS INTRODUCED:
40 ILCS 5/1-113.65 new
30 ILCS 805/8.43 new

Amends the General Provisions Article of the Illinois Pension Code. By no later than December 31, 2020, requires every pension fund, except for a Downstate Police or Downstate Firefighter fund, to develop a climate change risk minimization policy. Provides that the policy shall consider the financial risk to the investments held by the pension fund in the event of different levels of climate change, as defined by the United Nations Framework Convention on Climate Change. Requires the policy to explain what sources of data, which must include specified sources, were used to make certain projections. Requires the policy to consider the scope of the financial risk of climate-related events. Authorizes the pension fund to determine a policy for all corporate equities held by the pension fund on voting for shareholder resolutions and directors to advance corporate policies that minimize the long-term risk to the pension fund's assets from increased climate change. Requires the policy to be updated annually and published on the pension fund's website. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.
LRB101 06886 RPS 51918 b
FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

A BILL FOR

HB1605LRB101 06886 RPS 51918 b
1 AN ACT concerning public employee benefits.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Illinois Pension Code is amended by adding
5Section 1-113.65 as follows:
6 (40 ILCS 5/1-113.65 new)
7 Sec. 1-113.65. Climate change risk minimization policy.
8 (a) As used in this Section, "pension fund" means a pension
9fund or retirement system established under this Code, except
10for a pension fund established under Article 3 or 4 of this
11Code.
12 (b) No later than December 31, 2020, every pension fund
13shall develop a climate change risk minimization policy. This
14policy shall consider the financial risk to the investments
15held by the pension fund in the event of different levels of
16climate change, as defined by the United Nations Framework
17Convention on Climate Change. The initial development of this
18policy shall use the National Association of Insurance
19Commissioners' Insurer Climate Risk Disclosure Survey as a
20model. The policy shall consider the scope of the financial
21risk and the financial impact of these climate-related events,
22including, but not limited to, severe drought, coastal
23flooding, and more intense hurricanes, on the holdings of the

HB1605- 2 -LRB101 06886 RPS 51918 b
1pension fund. The policy shall explain what sources of data,
2which shall include, but not be limited to, insurance company
3projections, the United Nations Framework Convention on
4Climate Change, and the United States Environmental Protection
5Agency, were used in making long-term projections on the
6climate and the potential long-term financial impact to the
7holdings of the pension fund from increased climate change.
8 (c) To the extent the pension fund determines, based on
9insurance company projections and other official sources of
10data, that increasing climate change is a significant financial
11risk to the long-term value of the pension fund, the pension
12fund may determine a policy for all corporate equities held by
13the pension fund on voting for shareholder resolutions and
14directors to advance corporate policies that minimize the
15long-term risk to the pension fund's assets from increased
16climate change, including, but not limited to, voting for
17shareholder resolutions that commit companies to internal
18policies that reduce the company's carbon emissions.
19 (d) The policy shall be updated annually and published on
20the pension fund's website. Previous versions of the policy
21shall be kept on the pension fund's website for a period of 5
22years.
23 Section 90. The State Mandates Act is amended by adding
24Section 8.43 as follows:

HB1605- 3 -LRB101 06886 RPS 51918 b
1 (30 ILCS 805/8.43 new)
2 Sec. 8.43. Exempt mandate. Notwithstanding Sections 6 and 8
3of this Act, no reimbursement by the State is required for the
4implementation of any mandate created by this amendatory Act of
5the 101st General Assembly.
6 Section 99. Effective date. This Act takes effect upon
7becoming law.
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