Bill Text: IL HB5072 | 2025-2026 | 104th General Assembly | Introduced

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Bill Title: Amends the Illinois Sustainable Investing Act. Provides that the laws of this State shall govern in any case or controversy heard in this State related to lawful sustainable investment activity. Provides that the State shall not provide any information to or expend or use any time, money, facilities, property, equipment, personnel, or other resources to assist any individual, or out-of-state officer, official, agency, entity, or department seeking to impose civil or criminal liability upon a person or entity for lawful sustainable investment activity. Creates a right of action if a person residing or domiciled in Illinois has had judgment entered against them in another state for lawful sustainable investment activity that is permitted under the laws of this State.

Sponsorship: Partisan Bill (Democrat 3)

Status: (Introduced - Dead) 2026-04-17 - Rule 19(a) / Re-referred to Rules Committee [HB5072 Detail]

Download: Illinois-2025-HB5072-Introduced.html

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104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026HB5072 Introduced , by Rep. Ann M. Williams SYNOPSIS AS INTRODUCED:
30 ILCS 238/5
30 ILCS 238/10
30 ILCS 238/25 new
30 ILCS 238/30 new
30 ILCS 238/35 new
Amends the Illinois Sustainable Investing Act. Provides that the laws of this State shall govern in any case or controversy heard in this State related to lawful sustainable investment activity. Provides that the State shall not provide any information to or expend or use any time, money, facilities, property, equipment, personnel, or other resources to assist any individual, or out-of-state officer, official, agency, entity, or department seeking to impose civil or criminal liability upon a person or entity for lawful sustainable investment activity. Creates a right of action if a person residing or domiciled in Illinois has had judgment entered against them in another state for lawful sustainable investment activity that is permitted under the laws of this State.
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A BILL FOR
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AN ACT concerning finance.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Sustainable Investing Act is
amended by changing Sections 5 and 10 and by adding Sections
25, 30, and 35 as follows:
(30 ILCS 238/5)
Sec. 5. Findings and purpose.
(a) The General Assembly finds that consideration of
factors relevant to the environmental impact, social impact,
and governance of investments is vital for maximizing the
safety and performance of public funds. Such sustainability
factors are indicative of the overall performance of an
investment and are strong indicators of its long-term value.
Public agencies and governments have a duty to recognize and
evaluate these materially relevant factors.
(b) It is the purpose of this Act to prudently integrate
sustainability factors into the investment decision-making,
investment analysis, portfolio construction, due diligence,
and investment ownership of public funds to maximize
anticipated financial returns, minimize projected risks, more
effectively execute fiduciary duties, and contribute to a more
just, accountable, and sustainable State of Illinois.

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(c) The General Assembly reaffirms its prior findings that
factors relevant to the environmental impact, social impact,
and governance of investments are indicative of the overall
performance of an investment and that agencies and governments
have a duty to recognize and evaluate these materially
relevant factors.
(d) The General Assembly finds that other states have
taken actions that may impede the ability of Illinois persons
to take actions under sustainable investment policies
consistent with the principles of this Act.
(e) It is the intent of the State of Illinois to foster an
environment where not only agencies and governments but
private entities can prudently consider materially-relevant
environmental, social, and governance factors in their
investment decision-making, investment analysis, portfolio
construction, due diligence, and investment ownership
activities.
(g) It is the purpose of this Act to make it clear that
State resources should not be used to advance efforts by any
individual or government to impede Illinois persons' lawful
sustainable investment activity as described in this Act and
to provide recourse for Illinois persons who may be subject to
such actions.
(Source: P.A. 101-473, eff. 1-1-20.)
(30 ILCS 238/10)

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Sec. 10. Definitions. As used in this Act:
"Company proposal" means a proposal made by a company's
shareholder that is included in the company's proxy statement,
including the nomination of a director.
"Financial institution" means a bank, savings bank, or
credit union established under the laws of the State of
Illinois, another state, or the United States of America.
"Governmental unit" has the same meaning as in the Local
Government Debt Reform Act.
"Investment manager" means a fiduciary who:
(1) is a fiduciary selected by a public agency,
pension fund, retirement system, or governmental unit who
has the power to manage, acquire, or dispose of any asset
of a public agency, pension fund, retirement system or
governmental unit;
(2) has acknowledged in writing that he or she is a
fiduciary with respect to the public fund, retirement
system, or pension fund; and
(3) is at least one of the following: (i) registered
as an investment adviser under the federal Investment
Advisers Act of 1940; (ii) registered as an investment
adviser under the Illinois Securities Law of 1953; (iii) a
bank, as defined in the Investment Advisers Act of 1940;
or (iv) an insurance company authorized to transact
business in this State.
"Investment policy" means a written investment policy

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adopted by a public agency or governmental unit which
addresses safety of principal, liquidity of funds, and return
on investment and which requires the investment portfolio be
structured in such a manner as to provide sufficient liquidity
to pay obligations as they come due.
"Lawful sustainable investment activity" means:
(1) any activity that is not unlawful under the laws
of this State or under the laws of the United States taken
to carry out a sustainable investment policy as described
in this Act, regardless of whether the sustainable
investment policy was adopted by a public agency,
governmental unit, or any other entity doing business in
Illinois;
(2) any action taken in furtherance of providing the
following services that is not unlawful under the laws of
this State or the United States:
(A) advice or recommendations on how to vote on a
proxy proposal or company proposal;
(B) proxy statement research and analysis
regarding a proxy proposal or company proposal;
(C) rating or research regarding corporate
governance; or
(D) the development of proxy voting
recommendations or policies, including establishing
default recommendations or policies.
"Proxy proposal" means a proposal made by a company's

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shareholder that is included in the company's proxy statement,
including the nomination of a director.
"Public agency" means the State of Illinois, the various
counties, townships, cities, towns, villages, school
districts, educational service regions, special road
districts, public water supply districts, fire protection
districts, drainage districts, levee districts, sewer
districts, housing authorities, the Illinois Bank Examiners'
Education Foundation, the Chicago Park District, and all other
political corporations or subdivisions of the State of
Illinois, now or hereafter created, whether herein
specifically mentioned or not.
"Public funds" means current operating funds, special
funds, interest and sinking funds, and funds of any kind or
character belonging to or in the custody of any public agency.
"Sustainability factors" means factors that may have a
material and relevant financial impact on the safety or
performance of an investment and which are complementary to
financial factors and financial accounting.
(Source: P.A. 103-324, eff. 1-1-24; revised 7-1-25.)
(30 ILCS 238/25 new)
Sec. 25. Conflict of law. Notwithstanding any general or
special law or common law conflict of law rule to the contrary,
the laws of this State shall govern in any case or controversy
heard in this State related to lawful sustainable investment

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activity.
(30 ILCS 238/30 new)
Sec. 30. Prohibited State actions.
(a) Unless otherwise necessary to comply with Illinois or
federal law, the State shall not provide any information to or
expend or use any time, money, facilities, property,
equipment, personnel, or other resources to assist any
individual, or out-of-state officer, official, agency, entity,
or department seeking to impose civil or criminal liability
upon a person or entity for lawful sustainable investment
activity.
(b) This Section does not apply if an individual or
out-of-state officer, official, agency, entity, or department
is investigating conduct that would be subject to civil or
criminal liability under the laws of Illinois or the laws of
the United States.
(30 ILCS 238/35 new)
Sec. 35. Right of action.
(a) If judgment is entered in any other state against any
person residing or domiciled in Illinois, and if the judgment
is based, in whole or in part, on the alleged provision,
receipt, assistance in receipt or provision, material support
for, or any theory of vicarious, joint, several, or conspiracy
liability derived therefrom, for lawful sustainable investment

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activity that is permitted under the laws of this State, that
person may recover damages from any party that brought the
action leading to that judgment or has sought to enforce that
judgment.
(b) Any person aggrieved by conduct in subsection (a)
shall have a right of action in a State circuit court or as a
supplemental claim in federal district court against any party
that brought the action leading to that judgment or has sought
to enforce that judgment. This lawsuit must be brought not
later than 2 years after the violation of subsection (a).
(c) If the court finds that a violation of subsection (a)
has occurred, the court may award to the plaintiff:
(1) actual damages created by the action that led to
that judgment, including, but not limited to, money
damages in the amount of the judgment in that other state
and costs, expenses, and reasonable attorney's fees,
including expert witness fees and other litigation
expenses, spent in defending the action that resulted in
the entry of the judgment in another state; and
(2) costs, expenses, and reasonable attorney's fees,
including expert witness fees and other litigation
expenses, incurred in bringing an action under this Act as
may be allowed by the court.
(d) The provisions of this Act shall not apply to a
judgment entered in another state that is based on:
(1) an action founded in contract, and for which a

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similar claim would exist under the laws of this State,
brought or sought to be enforced by a party with a
contractual relationship with the person that is the
subject of the judgment entered in another state; or
(2) an action where no part of the acts that formed the
basis for liability occurred in this State.