HB5268 103RD GENERAL ASSEMBLY

LRB103 36358 RJT 66457 b

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB5268

Introduced 2/9/2024, by Rep. Will Guzzardi

SYNOPSIS AS INTRODUCED:

110 ILCS 305/180 new

Amends the University of Illinois Act. Provides that the Board of Trustees shall direct the University of Illinois Foundation, in accordance with sound investment criteria and consistent with fiduciary obligations, to not invest the assets of any endowment fund in the stocks, securities, or other obligations of any fossil fuel company or any subsidiary, affiliate, or parent of any fossil fuel company. Provides that this does not preclude the de minimis exposure of any funds held by the endowment fund to the stocks, securities, or other obligations of any fossil fuel company or any subsidiary, affiliate, or parent of any fossil fuel company. Requires the Board of Trustees to direct the University of Illinois Foundation to not invest in any prime commercial paper or corporate bonds issued by a fossil fuel company. Provides that, beginning one year after the effective date of the amendatory Act, the Board of Trustees, subject to an affirmative determination of prudence and in accordance with sound investment criteria and consistent with its fiduciary obligations, shall direct the University of Illinois Foundation to ensure that any endowment fund does not have any indirect investments; defines "indirect investment". Provides that the Board of Trustees shall direct the University of Illinois Foundation to adopt updates to its written investment policies, if necessary, to meet the requirements of these provisions and publish a copy of those updated policies within 90 days after the adoption of the updated policies. Effective immediately.

A BILL FOR

AN ACT concerning education.

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

Section 5. Findings. The General Assembly finds that:

(1) climate change poses a serious threat to the health, wealth, and safety of the people of this State; and

(2) continuing to invest in fossil fuel companies is contrary to the mission of the University of Illinois system and as such, the University of Illinois should not invest in these industries through its endowments.

Section 10. The University of Illinois Act is amended by adding Section 180 as follows:

(110 ILCS 305/180 new)

Sec. 180. University of Illinois Foundation; fossil fuel company divestment.

(a) In this Section:

"Fossil fuel company" means any company that:

(1) is among the 200 publicly traded companies with the largest fossil fuel reserves in the world;

(2) is among the 30 largest public company owners in the world of coal-fired power plants;

(3) has as its core business the construction or operation of fossil fuel infrastructure;

(4) has as its core business the exploration, extraction, refining, processing, or distribution of fossil fuels; or

(5) receives more than 20% of its gross revenue from companies that are described in paragraph (1), (2), (3), or (4) of this definition.

"Indirect investment" means a holding in an investment vehicle that directly or indirectly owns a more than 1% interest in one or more individual fossil fuel companies.

(b) The Board of Trustees shall direct the University of Illinois Foundation, in accordance with sound investment criteria and consistent with fiduciary obligations, to not invest the assets of any endowment fund in the stocks, securities, or other obligations of any fossil fuel company or any subsidiary, affiliate, or parent of any fossil fuel company. Nothing in this subsection (b) precludes the de minimis exposure of any funds held by the endowment fund to the stocks, securities, or other obligations of any fossil fuel company or any subsidiary, affiliate, or parent of any fossil fuel company.

The Board of Trustees shall direct the University of Illinois Foundation to not invest in any prime commercial paper or corporate bonds issued by a fossil fuel company.

(c) Beginning one year after the effective date of this amendatory Act of the 103rd General Assembly, the Board of Trustees, subject to an affirmative determination of prudence and in accordance with sound investment criteria and consistent with its fiduciary obligations, shall direct the University of Illinois Foundation to ensure that any endowment fund does not have any indirect investments.

(d) The Board of Trustees shall direct the University of Illinois Foundation to adopt updates to its written investment policies, if necessary, to meet the requirements of this Section and publish a copy of those updated policies within 90 days after the adoption of the updated policies.

Section 99. Effective date. This Act takes effect upon becoming law.