Rep. Lindsey LaPointe

Filed: 4/1/2022

 

 


 

 


 
10200HB1293ham005LRB102 03303 RPS 38523 a

1
AMENDMENT TO HOUSE BILL 1293

2    AMENDMENT NO. ______. Amend House Bill 1293 by replacing
3everything after the enacting clause with the following:
 
4
"Article 1.

 
5    Section 1-1. Findings.
6    (a) The General Assembly finds that:
7        (1) Russia has launched an unprecedented military
8    assault on Ukraine that has already left many dead, and
9    the fighting in Ukraine appears to be some of the worst
10    conventional warfare Europe has seen since World War II
11    and the conflicts in the Balkans in the 1990s;
12        (2) Western leaders have been united in their swift
13    and strong condemnation of Russia's military action;
14        (3) President Biden has stated that Russian President
15    Putin had "committed an assault on the very principles
16    that uphold the global peace", and the United States has,

 

 

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1    as a result, taken steps to impose harsh, new sanctions
2    that are intended to punish President Putin for his
3    actions;
4        (4) Secretary of State Blinken has indicated that
5    there are credible reports that Russia has engaged in
6    actions during its military assault on Ukraine that
7    constitute war crimes under international law;
8        (5) Russia has used, during its military assault on
9    Ukraine, weapons that have been banned by many countries,
10    including cluster munitions;
11        (6) Russia has conducted direct attacks on major
12    nuclear power facilities in Ukraine, which could lead to
13    disaster and the spread of radioactive contamination
14    across Ukraine and Europe;
15        (7) the United Nations has estimated that more than
16    6,500,000 Ukrainians have already been displaced within
17    the country and more than 4,000,000 have left the country
18    as a result of the Russian invasion;
19        (8) the international community is making preparations
20    to meet the humanitarian needs of those refugees who are
21    displaced by this conflict;
22        (9) Central Europe is welcoming Ukrainians, but the
23    countries in that region are not currently equipped to
24    handle the volume of refugees that are anticipated to
25    arrive at their borders in the coming weeks, and European
26    and U.S. leadership must help build that capacity; and

 

 

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1        (10) Illinois is a welcoming state to refugees and
2    immigrants and home to a robust community of Ukrainian
3    immigrants and Ukrainian descendants, many of whom live in
4    Chicago's Ukrainian Village neighborhood.
5    (b) For these reasons, the General Assembly urges:
6        (1) the pension funds and retirement systems
7    established under the Illinois Pension Code to divest
8    their holdings in any companies that are domiciled in
9    Russia or Belarus and that are on the list of restricted
10    companies developed by the Illinois Investment Policy
11    Board;
12        (2) the cities of Bloomington and Normal to renounce
13    their sister-city relationship with Vladimir, Russia; the
14    City of Chicago to renounce its sister-city relationship
15    with Moscow, Russia; the City of Dixon to renounce its
16    sister-city relationship with Dikson, Russia; and all
17    other municipalities to renounce any sister-city
18    relationships they may have with cities in Russia; and
19        (3) the United States Department of State to resettle
20    Ukrainian refugees in Illinois.
 
21
Article 5.

 
22    Section 5-1. Short title. This Article may be cited as the
23Money Laundering in Real Estate Task Force Act. References in
24this Article to "this Act" mean this Article.
 

 

 

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1    Section 5-3. Findings. The General Assembly finds and
2declares the following:
3        (1) the United States Department of Treasury's
4    Financial Crimes Enforcement Network found, in 2017, that
5    30% of all high-end real estate purchases in major
6    metropolitan areas involved beneficial owners or
7    purchasers who were the subject of previous suspicious
8    activity reports;
9        (2) the United States, unlike Canada and several other
10    jurisdictions, does not require real estate agents and
11    brokers to file suspicious transaction reports;
12        (3) the lack of beneficial ownership transparency is
13    an important factor in facilitating money laundering in
14    real estate; and
15        (4) money laundering in real estate has negative
16    consequences for local communities, including the
17    dislocation of residents from and within major
18    metropolitan areas.
 
19    Section 5-5. Money Laundering in Real Estate Task Force.
20    (a) The Money Laundering in Real Estate Task Force is
21created. The Task Force shall consist of the following
22members:
23        (1) 4 members appointed one each by the Speaker of the
24    House of Representatives, the Minority Leader of the House

 

 

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1    of Representatives, the President of the Senate, and the
2    Minority Leader of the Senate;
3        (2) the Secretary of Financial and Professional
4    Regulation or the Secretary's designee;
5        (3) the Director of Revenue or the Director's
6    designee;
7        (4) 2 members of the faculty of an institution of
8    higher education in the State with subject matter
9    expertise regarding money laundering in real estate,
10    appointed by the Governor;
11        (5) one expert on real estate tax law, appointed by
12    the Governor;
13        (6) one representative of a statewide banking
14    association representing banks of all asset sizes,
15    appointed by the Governor;
16        (7) one representative of a statewide banking
17    association exclusively representing banks with assets
18    below $20,000,000,000, appointed by the Governor; and
19        (8) 2 representatives of a statewide organization
20    representing real estate brokers, appointed by the
21    Governor.
22    (b) Initial appointments to the Task Force shall be made
23as soon as practicable after the effective date of this Act.
24The Task Force shall hold its first meeting within a
25reasonable period of time after its members have been
26appointed and shall convene regularly to carry out its duties

 

 

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1and submit the reports required under this Act. At its first
2meeting, the Task Force shall elect its chairperson and any
3other officers from among its members.
4    (c) The Department of Financial and Professional
5Regulation and the Department of Revenue shall provide
6administrative and other support to the Task Force.
 
7    Section 5-10. Duties. The Task Force shall:
8        (1) identify vulnerabilities in the real estate sector
9    that facilitate money laundering;
10        (2) provide guidance to help actors in the real estate
11    sector identify suspicious transactions and report them to
12    the proper authorities;
13        (3) explore the means by which illicit money is
14    channeled into the real estate sector and integrated into
15    the legal economy, including, but not limited to, cash
16    purchases, complex loans, monetary instruments, mortgages,
17    investment institutions, fraudulent appraisals, and
18    anonymous corporate entities;
19        (4) assess the exposure of the residential,
20    industrial, and commercial real estate sectors in Illinois
21    to illicit Russian money, including, but not limited to,
22    luxury real estate in Chicago and nonresidential real
23    estate in downstate communities; and
24        (5) assess real estate due diligence and reporting
25    practices, requirements, and laws in Illinois and

 

 

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1    recommend changes needed to eliminate systemic
2    vulnerabilities that facilitate foreign money laundering.
 
3    Section 5-15. Reports. The Task Force shall submit a
4report to the Governor and the General Assembly not later than
512 months after the effective date of this Act. The report
6shall include the Task Force's findings and shall summarize
7the actions the Task Force has taken and those it intends to
8take in response to its obligations under the Act. After it
9submits its initial report, the Task Force shall periodically
10submit reports to the Governor and the General Assembly as the
11chairperson of the Task Force deems necessary to apprise those
12officials of any additional findings made or actions taken by
13the Task Force. The obligation of the Task Force to submit
14periodic reports shall continue for the duration of the Task
15Force.
 
16    Section 5-20. Dissolution of Task Force; repeal. The Task
17Force is dissolved on January 1, 2025. This Act is repealed on
18January 1, 2026.
 
19
Article 10.

 
20    Section 10-5. The Illinois Administrative Procedure Act is
21amended by adding Section 5-45.21 as follows:
 

 

 

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1    (5 ILCS 100/5-45.21 new)
2    Sec. 5-45.21. Emergency rulemaking; Refugee Resettlement
3Program. To ensure the availability of refugee resettlement
4program services in the case of an imminent, large-scale
5refugee resettlement event, emergency rules may be adopted in
6accordance with Section 5-45 by the Department of Human
7Services. The adoption of emergency rules authorized by
8Section 5-45 and this Section is deemed to be necessary for the
9public interest, safety, and welfare.
10    This Section is repealed one year after the effective date
11of this amendatory Act of the 102nd General Assembly.
 
12    Section 10-7. The Election Code is amended by adding
13Section 1-21 as follows:
 
14    (10 ILCS 5/1-21 new)
15    Sec. 1-21. The Illinois Elections and Infrastructure
16Integrity Task Force.
17    (a) The Illinois Elections and Infrastructure Integrity
18Task Force is created. The Task Force shall consist of the
19following members:
20        (1) 4 members appointed one each by the Speaker of the
21    House of Representatives, the Minority Leader of the House
22    of Representatives, the President of the Senate, and the
23    Minority Leader of the Senate;
24        (2) one member of the faculty of an institution of

 

 

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1    higher education in the State with subject matter
2    expertise regarding cybersecurity, appointed by the
3    Governor;
4        (3) one member of the faculty of an institution of
5    higher education in the State with subject matter
6    expertise regarding voting technology or election
7    integrity, appointed by the Governor;
8        (4) one member who is an individual with current
9    experience in operational cybersecurity, preferably
10    international operational cybersecurity, appointed by the
11    Governor;
12        (5) the president of a statewide association
13    representing county clerks and recorders, appointed by the
14    Governor, or the president's designee;
15        (6) the Chair of the Board of Election Commissioners
16    for the City of Chicago or the Chair's designee;
17        (7) the Executive Director of the State Board of
18    Elections or the Executive Director's designee;
19        (8) the Secretary of State or the Secretary's
20    designee;
21        (9) the Director of the Illinois Emergency Management
22    Agency or the Director's designee;
23        (10) the Secretary of Innovation and Technology or the
24    Secretary's designee; and
25        (11) the Attorney General or the Attorney General's
26    designee.

 

 

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1    (b) The Task Force shall evaluate and make recommendations
2to prepare for and prevent foreign interference in elections
3in advance of the 2024 election and all future elections in the
4State and to prepare for and prevent potential cyberattacks on
5State infrastructure. In carrying out its duties, the Task
6Force shall prioritize the security of all Illinois residents
7and cooperation with other states and with law enforcement to
8protect United States national sovereignty. The Task Force
9shall submit a report containing its findings and
10recommendations to the Governor and the General Assembly not
11later than 18 months after the effective date of this
12amendatory Act of the 102nd General Assembly.
13    (c) The State Board of Elections shall provide staff and
14administrative support to the Task Force.
15    (d) The Task Force is dissolved, and this Section is
16repealed, on January 1, 2025.
 
17    Section 10-10. The Deposit of State Moneys Act is amended
18by adding Section 22.7 as follows:
 
19    (15 ILCS 520/22.7 new)
20    Sec. 22.7. Russian or Belarusian investments prohibited.
21Notwithstanding any provision of law to the contrary, the
22State Treasurer shall not invest State money in Russian or
23Belarusian sovereign debt, Russian or Belarusian
24government-backed securities, any investment instrument issued

 

 

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1by an entity that is domiciled or has its principal place of
2business in Russia or Belarus, or any investment instrument
3issued by a company that is subject to Russian Harmful Foreign
4Activities Sanctions, as that term is defined under Section
51-110.16 of the Illinois Pension Code, and shall not invest or
6deposit State money in any bank that is domiciled or has its
7principal place of business in Russia or Belarus or in any
8other financial institution that is domiciled or has its
9principal place of business in Russia or Belarus or that is
10subject to Russian Harmful Foreign Activities Sanctions.
 
11    Section 10-20. The Illinois State Police Law of the Civil
12Administrative Code of Illinois is amended by changing Section
132605-35 as follows:
 
14    (20 ILCS 2605/2605-35)  (was 20 ILCS 2605/55a-3)
15    Sec. 2605-35. Division of Criminal Investigation.
16    (a) The Division of Criminal Investigation shall exercise
17the following functions and those in Section 2605-30:
18        (1) Exercise the rights, powers, and duties vested by
19    law in the Illinois State Police by the Illinois Horse
20    Racing Act of 1975, including those set forth in Section
21    2605-215.
22        (2) Investigate the origins, activities, personnel,
23    and incidents of crime and enforce the criminal laws of
24    this State related thereto.

 

 

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1        (3) Enforce all laws regulating the production, sale,
2    prescribing, manufacturing, administering, transporting,
3    having in possession, dispensing, delivering,
4    distributing, or use of controlled substances and
5    cannabis.
6        (4) Cooperate with the police of cities, villages, and
7    incorporated towns and with the police officers of any
8    county in enforcing the laws of the State and in making
9    arrests and recovering property.
10        (5) Apprehend and deliver up any person charged in
11    this State or any other state with treason or a felony or
12    other crime who has fled from justice and is found in this
13    State.
14        (6) Investigate recipients and providers under the
15    Illinois Public Aid Code and any personnel involved in the
16    administration of the Code who are suspected of any
17    violation of the Code pertaining to fraud in the
18    administration, receipt, or provision of assistance and
19    pertaining to any violation of criminal law; and exercise
20    the functions required under Section 2605-220 in the
21    conduct of those investigations.
22        (7) Conduct other investigations as provided by law.
23        (8) Investigate public corruption..
24        (9) Exercise other duties that may be assigned by the
25    Director in order to fulfill the responsibilities and
26    achieve the purposes of the Illinois State Police, which

 

 

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1    may include the coordination of gang, terrorist, and
2    organized crime prevention, control activities, and
3    assisting local law enforcement in their crime control
4    activities.
5        (10) Conduct investigations (and cooperate with
6    federal law enforcement agencies in the investigation) of
7    any property-related crimes, such as money laundering,
8    involving individuals or entities listed on the sanctions
9    list maintained by the U.S. Department of Treasury's
10    Office of Foreign Asset Control.
11    (b) (Blank).
12(Source: P.A. 102-538, eff. 8-20-21; revised 12-2-21.)
 
13    Section 10-30. The Public Funds Investment Act is amended
14by adding Section 2.3 as follows:
 
15    (30 ILCS 235/2.3 new)
16    Sec. 2.3. Russian or Belarusian investments prohibited.
17Notwithstanding any provision of law to the contrary, a public
18agency shall not invest public funds in Russian or Belarusian
19sovereign debt, Russian or Belarusian government-backed
20securities, any investment instrument issued by an entity that
21is domiciled or has its principal place of business in Russia
22or Belarus, or any investment instrument issued by a company
23that is subject to Russian Harmful Foreign Activities
24Sanctions, as that term is defined under Section 1-110.16 of

 

 

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1the Illinois Pension Code, and shall not invest or deposit
2public funds in any bank that is domiciled or has its principal
3place of business in Russia or Belarus or in any other
4financial institution that is domiciled or has its principal
5place of business in Russia or Belarus or that is subject to
6Russian Harmful Foreign Activities Sanctions.
 
7    Section 10-35. The Illinois Pension Code is amended by
8changing Section 1-110.16 as follows:
 
9    (40 ILCS 5/1-110.16)
10    Sec. 1-110.16. Transactions prohibited by retirement
11systems; companies that boycott Israel, for-profit companies
12that contract to shelter migrant children, Iran-restricted
13companies, Sudan-restricted companies, and expatriated
14entities, companies that are domiciled or have their principal
15place of business in Russia or Belarus, and companies that are
16subject to Russian Harmful Foreign Activities Sanctions.
17    (a) As used in this Section:
18        "Boycott Israel" means engaging in actions that are
19    politically motivated and are intended to penalize,
20    inflict economic harm on, or otherwise limit commercial
21    relations with the State of Israel or companies based in
22    the State of Israel or in territories controlled by the
23    State of Israel.
24        "Company" means any sole proprietorship, organization,

 

 

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1    association, corporation, partnership, joint venture,
2    limited partnership, limited liability partnership,
3    limited liability company, or other entity or business
4    association, including all wholly owned subsidiaries,
5    majority-owned subsidiaries, parent companies, or
6    affiliates of those entities or business associations,
7    that exist for the purpose of making profit.
8        "Company that is subject to Russian Harmful Foreign
9    Activities Sanctions" means a company that is subject to
10    sanctions under the Russian Harmful Foreign Activities
11    Sanctions Regulations (31 CFR Part 587), any Presidential
12    Executive Order imposing sanctions against Russia, or any
13    federal directive issued pursuant to any such Executive
14    Order.
15        "Contract to shelter migrant children" means entering
16    into a contract with the federal government to shelter
17    migrant children under the federal Unaccompanied Alien
18    Children Program or a substantially similar federal
19    program.
20        "Illinois Investment Policy Board" means the board
21    established under subsection (b) of this Section.
22        "Direct holdings" in a company means all publicly
23    traded securities of that company that are held directly
24    by the retirement system in an actively managed account or
25    fund in which the retirement system owns all shares or
26    interests.

 

 

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1        "Expatriated entity" has the meaning ascribed to it in
2    Section 1-15.120 of the Illinois Procurement Code.
3        "Illinois Investment Policy Board" means the board
4    established under subsection (b) of this Section.
5        "Indirect holdings" in a company means all securities
6    of that company that are held in an account or fund, such
7    as a mutual fund, managed by one or more persons not
8    employed by the retirement system, in which the retirement
9    system owns shares or interests together with other
10    investors not subject to the provisions of this Section or
11    that are held in an index fund.
12        "Iran-restricted company" means a company that meets
13    the qualifications under Section 1-110.15 of this Code.
14        "Private market fund" means any private equity fund,
15    private equity funds of funds, venture capital fund, hedge
16    fund, hedge fund of funds, real estate fund, or other
17    investment vehicle that is not publicly traded.
18        "Restricted companies" means companies that boycott
19    Israel, for-profit companies that contract to shelter
20    migrant children, Iran-restricted companies,
21    Sudan-restricted companies, and expatriated entities,
22    companies that are domiciled or have their principal place
23    of business in Russia or Belarus, and companies that are
24    subject to Russian Harmful Foreign Activities Sanctions.
25        "Retirement system" means a retirement system
26    established under Article 2, 14, 15, 16, or 18 of this Code

 

 

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1    or the Illinois State Board of Investment.
2        "Sudan-restricted company" means a company that meets
3    the qualifications under Section 1-110.6 of this Code.
4    (b) There shall be established an Illinois Investment
5Policy Board. The Illinois Investment Policy Board shall
6consist of 7 members. Each board of a pension fund or
7investment board created under Article 15, 16, or 22A of this
8Code shall appoint one member, and the Governor shall appoint
94 members.
10    (c) Notwithstanding any provision of law to the contrary,
11beginning January 1, 2016, Sections 1-110.15 110.15 and
121-110.6 of this Code shall be administered in accordance with
13this Section.
14    (d) By April 1, 2016, the Illinois Investment Policy Board
15shall make its best efforts to identify all Iran-restricted
16companies, Sudan-restricted companies, and companies that
17boycott Israel and assemble those identified companies into a
18list of restricted companies, to be distributed to each
19retirement system.
20    These efforts shall include the following, as appropriate
21in the Illinois Investment Policy Board's judgment:
22        (1) reviewing and relying on publicly available
23    information regarding Iran-restricted companies,
24    Sudan-restricted companies, and companies that boycott
25    Israel, including information provided by nonprofit
26    organizations, research firms, and government entities;

 

 

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1        (2) contacting asset managers contracted by the
2    retirement systems that invest in Iran-restricted
3    companies, Sudan-restricted companies, and companies that
4    boycott Israel;
5        (3) contacting other institutional investors that have
6    divested from or engaged with Iran-restricted companies,
7    Sudan-restricted companies, and companies that boycott
8    Israel; and
9        (4) retaining an independent research firm to identify
10    Iran-restricted companies, Sudan-restricted companies,
11    and companies that boycott Israel.
12    The Illinois Investment Policy Board shall review the list
13of restricted companies on a quarterly basis based on evolving
14information from, among other sources, those listed in this
15subsection (d) and distribute any updates to the list of
16restricted companies to the retirement systems and the State
17Treasurer.
18    By April 1, 2018, the Illinois Investment Policy Board
19shall make its best efforts to identify all expatriated
20entities and include those companies in the list of restricted
21companies distributed to each retirement system and the State
22Treasurer. These efforts shall include the following, as
23appropriate in the Illinois Investment Policy Board's
24judgment:
25        (1) reviewing and relying on publicly available
26    information regarding expatriated entities, including

 

 

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1    information provided by nonprofit organizations, research
2    firms, and government entities;
3        (2) contacting asset managers contracted by the
4    retirement systems that invest in expatriated entities;
5        (3) contacting other institutional investors that have
6    divested from or engaged with expatriated entities; and
7        (4) retaining an independent research firm to identify
8    expatriated entities.
9    By July 1, 2022, the Illinois Investment Policy Board
10shall make its best efforts to identify all for-profit
11companies that contract to shelter migrant children and
12include those companies in the list of restricted companies
13distributed to each retirement system. These efforts shall
14include the following, as appropriate in the Illinois
15Investment Policy Board's judgment:
16        (1) reviewing and relying on publicly available
17    information regarding for-profit companies that contract
18    to shelter migrant children, including information
19    provided by nonprofit organizations, research firms, and
20    government entities;
21        (2) contacting asset managers contracted by the
22    retirement systems that invest in for-profit companies
23    that contract to shelter migrant children;
24        (3) contacting other institutional investors that have
25    divested from or engaged with for-profit companies that
26    contract to shelter migrant children; and

 

 

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1        (4) retaining an independent research firm to identify
2    for-profit companies that contract to shelter migrant
3    children.
4    No later than 6 months after the effective date of this
5amendatory Act of the 102nd General Assembly, the Illinois
6Investment Policy Board shall make its best efforts to
7identify all companies that are domiciled or have their
8principal place of business in Russia or Belarus and companies
9that are subject to Russian Harmful Foreign Activities
10Sanctions and include those companies in the list of
11restricted companies distributed to each retirement system.
12These efforts shall include the following, as appropriate in
13the Illinois Investment Policy Board's judgment:
14        (1) reviewing and relying on publicly available
15    information regarding companies that are domiciled or have
16    their principal place of business in Russia or Belarus and
17    companies that are subject to Russian Harmful Foreign
18    Activities Sanctions, including information provided by
19    nonprofit organizations, research firms, and government
20    entities;
21        (2) contacting asset managers contracted by the
22    retirement systems that invest in companies that are
23    domiciled or have their principal place of business in
24    Russia or Belarus and companies that are subject to
25    Russian Harmful Foreign Activities Sanctions;
26        (3) contacting other institutional investors that have

 

 

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1    divested from or engaged with companies that are domiciled
2    or have their principal place of business in Russia or
3    Belarus and companies that are subject to Russian Harmful
4    Foreign Activities Sanctions; and
5        (4) retaining an independent research firm to identify
6    companies that are domiciled or have their principal place
7    of business in Russia or Belarus and companies that are
8    subject to Russian Harmful Foreign Activities Sanctions.
9    (e) The Illinois Investment Policy Board shall adhere to
10the following procedures for companies on the list of
11restricted companies:
12        (1) For each company newly identified in subsection
13    (d), the Illinois Investment Policy Board, unless it
14    determines by an affirmative vote that it is unfeasible,
15    shall send a written notice informing the company of its
16    status and that it may become subject to divestment or
17    shareholder activism by the retirement systems.
18        (2) If, following the Illinois Investment Policy
19    Board's engagement pursuant to this subsection (e) with a
20    restricted company, that company ceases activity that
21    designates the company to be an Iran-restricted company, a
22    Sudan-restricted company, a company that boycotts Israel,
23    an expatriated entity, or a for-profit company that
24    contracts to shelter migrant children, the company shall
25    be removed from the list of restricted companies and the
26    provisions of this Section shall cease to apply to it

 

 

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1    unless it resumes such activities.
2        (3) For a company that is domiciled or has its
3    principal place of business in Russia or Belarus, if,
4    following the Illinois Investment Policy Board's
5    engagement pursuant to this subsection (e), that company
6    is no longer domiciled or has its principal place of
7    business in Russia or Belarus, the company shall be
8    removed from the list of restricted companies and the
9    provisions of this Section shall cease to apply to it
10    unless it becomes domiciled or has its principal place of
11    business in Russia or Belarus.
12        (4) For a company that is subject to Russian Harmful
13    Foreign Activities Sanctions, if, following the Illinois
14    Investment Policy Board's engagement pursuant to this
15    subsection (e), that company is no longer subject to
16    Russian Harmful Foreign Activities Sanctions, the company
17    shall be removed from the list of restricted companies and
18    the provisions of this Section shall cease to apply to it
19    unless it becomes subject to Russian Harmful Foreign
20    Activities Sanctions.
21    (f) Except as provided in subsection (f-1) of this Section
22the retirement system shall adhere to the following procedures
23for companies on the list of restricted companies:
24        (1) The retirement system shall identify those
25    companies on the list of restricted companies in which the
26    retirement system owns direct holdings and indirect

 

 

10200HB1293ham005- 23 -LRB102 03303 RPS 38523 a

1    holdings.
2        (2) The retirement system shall instruct its
3    investment advisors to sell, redeem, divest, or withdraw
4    all direct holdings of restricted companies from the
5    retirement system's assets under management in an orderly
6    and fiduciarily responsible manner within 12 months after
7    the company's most recent appearance on the list of
8    restricted companies.
9        (3) The retirement system may not acquire securities
10    of restricted companies.
11        (4) The provisions of this subsection (f) do not apply
12    to the retirement system's indirect holdings or private
13    market funds. The Illinois Investment Policy Board shall
14    submit letters to the managers of those investment funds
15    containing restricted companies requesting that they
16    consider removing the companies from the fund or create a
17    similar actively managed fund having indirect holdings
18    devoid of the companies. If the manager creates a similar
19    fund, the retirement system shall replace all applicable
20    investments with investments in the similar fund in an
21    expedited timeframe consistent with prudent investing
22    standards.
23    (f-1) The retirement system shall adhere to the following
24procedures for restricted companies that are expatriated
25entities or for-profit companies that contract to shelter
26migrant children:

 

 

10200HB1293ham005- 24 -LRB102 03303 RPS 38523 a

1        (1) To the extent that the retirement system believes
2    that shareholder activism would be more impactful than
3    divestment, the retirement system shall have the authority
4    to engage with a restricted company prior to divesting.
5        (2) Subject to any applicable State or Federal laws,
6    methods of shareholder activism utilized by the retirement
7    system may include, but are not limited to, bringing
8    shareholder resolutions and proxy voting on shareholder
9    resolutions.
10        (3) The retirement system shall report on its
11    shareholder activism and the outcome of such efforts to
12    the Illinois Investment Policy Board by April 1 of each
13    year.
14        (4) If the engagement efforts of the retirement system
15    are unsuccessful, then it shall adhere to the procedures
16    under subsection (f) of this Section.
17    (f-5) Beginning on the effective date of this amendatory
18Act of the 102nd General Assembly, no retirement system shall
19invest moneys in Russian or Belarusian sovereign debt, Russian
20or Belarusian government-backed securities, any investment
21instrument issued by an entity that is domiciled or has its
22principal place of business in Russia or Belarus, or any
23investment instrument issued by a company that is subject to
24Russian Harmful Foreign Activities Sanctions, and no
25retirement system shall invest or deposit State moneys in any
26bank that is domiciled or has its principal place of business

 

 

10200HB1293ham005- 25 -LRB102 03303 RPS 38523 a

1in Russia or Belarus. As soon as practicable after the
2effective date of this amendatory Act of the 102nd General
3Assembly, each retirement system shall instruct its investment
4advisors to sell, redeem, divest, or withdraw all direct
5holdings of Russian or Belarusian sovereign debt and direct
6holdings of Russian or Belarusian government-backed securities
7from the retirement system's assets under management in an
8orderly and fiduciarily responsible manner.
9    Notwithstanding any provision of this Section to the
10contrary, a retirement system may cease divestment pursuant to
11this subsection (f-5) if clear and convincing evidence shows
12that the value of investments in such Russian or Belarusian
13sovereign debt and Russian or Belarusian government-backed
14securities becomes equal to or less than 0.05% of the market
15value of all assets under management by the retirement system.
16For any cessation of divestment authorized by this subsection
17(f-5), the retirement system shall provide a written notice to
18the Illinois Investment Policy Board in advance of the
19cessation of divestment, setting forth the reasons and
20justification, supported by clear and convincing evidence, for
21its decision to cease divestment under this subsection (f-5).
22    The provisions of this subsection (f-5) do not apply to
23the retirement system's indirect holdings or private market
24funds.
25    (g) Upon request, and by April 1 of each year, each
26retirement system shall provide the Illinois Investment Policy

 

 

10200HB1293ham005- 26 -LRB102 03303 RPS 38523 a

1Board with information regarding investments sold, redeemed,
2divested, or withdrawn in compliance with this Section.
3    (h) Notwithstanding any provision of this Section to the
4contrary, a retirement system may cease divesting from
5companies pursuant to subsection (f) if clear and convincing
6evidence shows that the value of investments in such companies
7becomes equal to or less than 0.5% of the market value of all
8assets under management by the retirement system. For any
9cessation of divestment authorized by this subsection (h), the
10retirement system shall provide a written notice to the
11Illinois Investment Policy Board in advance of the cessation
12of divestment, setting forth the reasons and justification,
13supported by clear and convincing evidence, for its decision
14to cease divestment under subsection (f).
15    (i) The cost associated with the activities of the
16Illinois Investment Policy Board shall be borne by the boards
17of each pension fund or investment board created under Article
1815, 16, or 22A of this Code.
19    (j) With respect to actions taken in compliance with this
20Section, including all good-faith determinations regarding
21companies as required by this Section, the retirement system
22and Illinois Investment Policy Board are exempt from any
23conflicting statutory or common law obligations, including any
24fiduciary duties under this Article and any obligations with
25respect to choice of asset managers, investment funds, or
26investments for the retirement system's securities portfolios.

 

 

10200HB1293ham005- 27 -LRB102 03303 RPS 38523 a

1    (k) It is not the intent of the General Assembly in
2enacting this amendatory Act of the 99th General Assembly to
3cause divestiture from any company based in the United States
4of America. The Illinois Investment Policy Board shall
5consider this intent when developing or reviewing the list of
6restricted companies.
7    (l) If any provision of this amendatory Act of the 99th
8General Assembly or its application to any person or
9circumstance is held invalid, the invalidity of that provision
10or application does not affect other provisions or
11applications of this amendatory Act of the 99th General
12Assembly that can be given effect without the invalid
13provision or application.
14    If any provision of Public Act 100-551 or its application
15to any person or circumstance is held invalid, the invalidity
16of that provision or application does not affect other
17provisions or applications of Public Act 100-551 that can be
18given effect without the invalid provision or application.
19    If any provision of Public Act 102-118 this amendatory Act
20of the 102nd General Assembly or its application to any person
21or circumstance is held invalid, the invalidity of that
22provision or application does not affect other provisions or
23applications of Public Act 102-118 this amendatory Act of the
24102nd General Assembly that can be given effect without the
25invalid provision or application.
26    If any provision of this amendatory Act of the 102nd

 

 

10200HB1293ham005- 28 -LRB102 03303 RPS 38523 a

1General Assembly or its application to any person or
2circumstance is held invalid, the invalidity of that provision
3or application does not affect other provisions or
4applications of this amendatory Act of the 102nd General
5Assembly that can be given effect without the invalid
6provision or application.
7(Source: P.A. 102-118, eff. 7-23-21.)
 
8    Section 10-40. The Board of Higher Education Act is
9amended by adding Section 9.41 as follows:
 
10    (110 ILCS 205/9.41 new)
11    Sec. 9.41. Disclosure of donations from certain Russian,
12Belarusian, or sanctioned sources. The Board shall require
13each public institution of higher education to disclose to the
14Board any endowment or other donation given to the institution
15from a source associated with any individual or entity listed
16on the sanctions list maintained by the U.S. Department of
17Treasury's Office of Foreign Asset Control or any company that
18is domiciled or has its principal place of business in Russia
19or Belarus and is on the list of restricted companies
20developed by the Illinois Investment Policy Board under
21Section 1-110.16 of the Illinois Pension Code.
 
22
Article 99.

 

 

 

10200HB1293ham005- 29 -LRB102 03303 RPS 38523 a

1    Section 99-97. Severability. The provisions of this Act
2are severable under Section 1.31 of the Statute on Statutes.
 
3    Section 99-99. Effective date. This Act takes effect upon
4becoming law.".