Public Act 102-1108
 
HB1293 EnrolledLRB102 03303 RJF 13316 b



    AN ACT concerning government.

 
    Be it enacted by the People of the State of Illinois, 
represented in the General Assembly: 







 
 
Article 1.

 
    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;
        (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 
    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.

 
Article 5.

 
    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.
 
    Section 5-3. Findings. The General Assembly finds and 
declares the following:

        (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;
        (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.
 
    Section 5-5. Money Laundering in Real Estate Task Force.
 
    (a) The Money Laundering in Real Estate 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)   the Secretary of Financial and Professional 
    Regulation or the Secretary's designee;

        (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;

        (5)   one expert on real estate tax law, appointed by 
    the Governor;
        (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. 
 
    Section 5-10. Duties.  The Task Force shall:
        (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.
 
    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  
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.
 
    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.
 
Article 10.

 
    Section 10-5. The Illinois Administrative Procedure Act is 
amended by adding Section 5-45.35 as follows:
 
    (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 
public interest, safety, and welfare.
    This Section is repealed one year after the effective date 
of this amendatory Act of the 102nd General Assembly.
 
    Section 10-7. The Election Code is amended  by adding 
Section 1-22 as follows:
 
    (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 
    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 
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.
 
    Section 10-10. The Deposit of State Moneys Act is amended  
by adding Section 22.7 as follows:
 
    (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 
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.
 
    Section 10-20. The Illinois State Police Law of the
Civil 
Administrative Code of Illinois is amended by changing Section 
2605-35 as follows:
 



    (20 ILCS 2605/2605-35)  (was 20 ILCS 2605/55a-3)


    Sec. 2605-35. Division of Criminal
Investigation.
    (a) The Division of Criminal
Investigation shall exercise

the following functions and those in Section 2605-30:


        (1) Exercise the rights, powers, and duties vested by

    law in the Illinois State Police by the Illinois Horse 
    Racing Act of 1975, including those set forth in Section 
    2605-215.


        (2) Investigate the origins, activities, personnel, 
    and
incidents of crime and enforce the criminal laws of 
    this State related thereto.


        (3) Enforce all laws regulating the production, sale,

    prescribing, manufacturing, administering, transporting, 
    having in possession,
dispensing, delivering, 
    distributing, or use of controlled substances
and 
    cannabis.


        (4) Cooperate with the police of cities, villages, and

    incorporated towns and with the police officers of any 
    county in
enforcing the laws of the State and in making 
    arrests and recovering
property.


        (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.


        (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

    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.


        (7) Conduct other investigations as provided by law.


        (8) Investigate public corruption.


        (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.

        (10) Conduct investigations (and cooperate with 
    federal law enforcement agencies in the investigation) of   
    any property-related crimes, such as money laundering, 
    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).





(Source: P.A. 102-538, eff. 8-20-21; 102-813, eff. 5-13-22.)

 
    Section 10-30. The Public Funds Investment Act is amended  
by adding Section 2.3 as follows:
 
    (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.
 
    Section 10-35. The Illinois Pension Code is amended by 
changing Section 1-110.16 as follows:
 
    (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.
        "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 
    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 
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 
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 
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 
    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
    
    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 
    nonprofit organizations, research firms, and government 
    entities; 
        (2) contacting asset managers contracted by the
    
    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 
    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 
    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 
    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 
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 
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. 
    (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.)
 
    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.
 
Article 99.

 
    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.