103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB2152

 

Introduced 2/10/2023, by Sen. Bill Cunningham

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/15-177.5 new
40 ILCS 5/16-188 new
40 ILCS 5/22A-113.4 new

    Amends the State Universities, Downstate Teachers, and Board of Investment Articles of the Illinois Pension Code. Provides that the State Treasurer shall manage the System's or Investment Board's domestic and international proxy voting activity and execute required ballots on behalf of the System or Investment Board. Requires the State Treasurer to provide the Board of the System or Investment Board with comprehensive proxy voting reports on a quarterly basis and as requested by the Board of the System or Investment Board. Requires the Board of the System and the Investment Board to annually publish a report on its website describing how the Board is considering sustainability factors as defined in the Illinois Sustainable Investing Act and other information. Effective January 1, 2024.


LRB103 30754 RPS 57236 b

 

 

A BILL FOR

 

SB2152LRB103 30754 RPS 57236 b

1    AN ACT concerning public employee benefits.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Pension Code is amended by adding
5Sections 15-177.5, 16-188, and 22A-113.4 as follows:
 
6    (40 ILCS 5/15-177.5 new)
7    Sec. 15-177.5. Proxy voting. Notwithstanding the Board's
8investment authority, the State Treasurer shall manage the
9System's domestic and international proxy voting activity and
10execute required ballots on behalf of the System. The State
11Treasurer shall provide the Board with comprehensive proxy
12voting reports on a quarterly basis and as requested by the
13Board.
14    On or before December 31, 2024, and annually thereafter,
15the Board shall publish a report on its website describing how
16the Board is considering sustainability factors as defined in
17the Illinois Sustainable Investing Act. The report shall:
18        (1) describe the Board's strategy as it relates to the
19    consideration of sustainable investment factors;
20        (2) outline the process for regular assessment across
21    the total portfolio of potential effects from systemic and
22    regulatory risks and opportunities, including, but not
23    limited to, environmental factors on the assets of the

 

 

SB2152- 2 -LRB103 30754 RPS 57236 b

1    plan;
2        (3) disclose how each investment manager used
3    integrates sustainability factors into the investment
4    manager's decision-making; and
5        (4) include any other information the Board deems
6    necessary.
 
7    (40 ILCS 5/16-188 new)
8    Sec. 16-188. Proxy voting. Notwithstanding the Board's
9investment authority, the State Treasurer shall manage the
10System's domestic and international proxy voting activity and
11execute required ballots on behalf of the System. The State
12Treasurer shall provide the Board with comprehensive proxy
13voting reports on a quarterly basis and as requested by the
14Board.
15    On or before December 31, 2024, and annually thereafter,
16the Board shall publish a report on its website describing how
17the Board is considering sustainability factors as defined in
18the Illinois Sustainable Investing Act. The report shall:
19        (1) describe the Board's strategy as it relates to the
20    consideration of sustainable investment factors;
21        (2) outline the process for regular assessment across
22    the total portfolio of potential effects from systemic and
23    regulatory risks and opportunities, including, but not
24    limited to, environmental factors on the assets of the
25    plan;

 

 

SB2152- 3 -LRB103 30754 RPS 57236 b

1        (3) disclose how each investment manager used
2    integrates sustainability factors into the investment
3    manager's decision-making; and
4        (4) include any other information the Board deems
5    necessary.
 
6    (40 ILCS 5/22A-113.4 new)
7    Sec. 22A-113.4. Proxy voting. Notwithstanding the Board's
8investment authority, the State Treasurer shall manage the
9Board's domestic and international proxy voting activity and
10execute required ballots on behalf of the Board. The State
11Treasurer shall provide the Board with comprehensive proxy
12voting reports on a quarterly basis and as requested.
13    On or before December 31, 2024, and annually thereafter,
14the Board shall publish a report on its website describing how
15the Board is considering sustainability factors as defined in
16the Illinois Sustainable Investing Act. The report shall:
17        (1) describe the Board's strategy as it relates to the
18    consideration of sustainable investment factors;
19        (2) outline the process for regular assessment across
20    the total portfolio of potential effects from systemic and
21    regulatory risks and opportunities, including, but not
22    limited to, environmental factors on the assets of the
23    plan;
24        (3) disclose how each investment manager used
25    integrates sustainability factors into the investment

 

 

SB2152- 4 -LRB103 30754 RPS 57236 b

1    manager's decision-making; and
2        (4) include any other information the Board deems
3    necessary.
 
4    Section 99. Effective date. This Act takes effect January
51, 2024.