Full Text of HB2984 103rd General Assembly
HB2984eng 103RD GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning State government.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Deposit of State Moneys Act is amended by | 5 | | adding Section 22.10 as follows: | 6 | | (15 ILCS 520/22.10 new) | 7 | | Sec. 22.10. Chinese investments prohibited. | 8 | | Notwithstanding any provision of law to the contrary, the | 9 | | State Treasurer shall not invest State money in Chinese | 10 | | Communist Party sovereign debt, Chinese Communist Party-backed | 11 | | securities, any investment instrument issued by an entity that | 12 | | is domiciled or has its principal place of business in the | 13 | | People's Republic of China, or any investment instrument | 14 | | issued by a company that is subject to Chinese | 15 | | Military-Industrial Complex Companies Sanctions, as that term | 16 | | is defined under Section 1-110.16 of the Illinois Pension | 17 | | Code, and shall not invest or deposit State money in any bank | 18 | | that is domiciled or has its principal place of business in the | 19 | | People's Republic of China or in any other financial | 20 | | institution that is domiciled or has its principal place of | 21 | | business in the People's Republic of China or that is subject | 22 | | to Chinese Military-Industrial Complex Companies Sanctions. |
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| 1 | | Section 10. The Public Funds Investment Act is amended by | 2 | | adding Section 2.4 as follows: | 3 | | (30 ILCS 235/2.4 new) | 4 | | Sec. 2.4. Chinese investments prohibited. Notwithstanding | 5 | | any provision of law to the contrary, a public agency shall not | 6 | | invest public funds in Chinese Communist Party sovereign debt, | 7 | | Chinese Communist Party-backed securities, or any investment | 8 | | instrument issued by an entity that is domiciled or has its | 9 | | principal place of business in the People's Republic of China, | 10 | | or any investment instrument issued by a company that is | 11 | | subject to Chinese Military-Industrial Complex Companies | 12 | | Sanctions, as that term is defined under Section 1-110.16 of | 13 | | the Illinois Pension Code, and shall not invest or deposit | 14 | | public funds in any bank that is domiciled or has its principal | 15 | | place of business in the People's Republic of China or in any | 16 | | other financial institution that is domiciled or has its | 17 | | principal place of business in the People's Republic of China | 18 | | or that is subject to Chinese Military-Industrial Complex | 19 | | Companies Sanctions. | 20 | | Section 15. The Illinois Procurement Code is amended by | 21 | | adding Section 50-36.5 as follows: | 22 | | (30 ILCS 500/50-36.5 new) | 23 | | Sec. 50-36.5. Disclosure of business in the People's |
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| 1 | | Republic of China. | 2 | | (a) As used in this Section: | 3 | | "Business operations" means engaging in commerce in any | 4 | | form in the People's Republic of China, including, but not | 5 | | limited to, acquiring, developing, maintaining, owning, | 6 | | selling, possessing, leasing, or operating equipment, | 7 | | facilities, personnel, products, services, personal property, | 8 | | real property, or any other apparatus of business or commerce. | 9 | | "Company" means any sole proprietorship, organization, | 10 | | association, corporation, partnership, joint venture, limited | 11 | | partnership, limited liability partnership, limited liability | 12 | | company, or other entity or business association, including | 13 | | all wholly owned subsidiaries, majority-owned subsidiaries, | 14 | | parent companies, or affiliates of those entities or business | 15 | | associations, that exists for the purpose of making profit. | 16 | | (b) Each bid or offer submitted for a State contract shall | 17 | | include a disclosure of whether or not the bidder, offeror, or | 18 | | any of its corporate parents or subsidiaries, within the 24 | 19 | | months before submission of the bid or offer had business | 20 | | operations that involved contracts with or provision of | 21 | | supplies or services to the Chinese Communist Party, companies | 22 | | in which the Chinese Communist Party has any direct or | 23 | | indirect equity share, consortiums or projects commissioned by | 24 | | the Chinese Communist Party, or companies involved in | 25 | | consortiums or projects commissioned by the Chinese Communist | 26 | | Party. |
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| 1 | | (c) A bid or offer that does not include the disclosure | 2 | | required by subsection (b) may be given a period after the bid | 3 | | or offer is submitted to cure non-disclosure. A chief | 4 | | procurement officer may consider the disclosure when | 5 | | evaluating the bid or offer or awarding the contract. | 6 | | (d) Each chief procurement officer shall provide the State | 7 | | Comptroller with the name of each entity disclosed under | 8 | | subsection (b) as doing business or having done business in | 9 | | the People's Republic of China. The State Comptroller shall | 10 | | post that information on his or her official website. | 11 | | Section 20. The Illinois Pension Code is amended by | 12 | | changing Section 1-110.16 as follows: | 13 | | (40 ILCS 5/1-110.16) | 14 | | Sec. 1-110.16. Transactions prohibited by retirement | 15 | | systems; Illinois Investment Policy Board companies that | 16 | | boycott Israel, for-profit companies that contract to shelter | 17 | | migrant children, Iran-restricted companies, Sudan-restricted | 18 | | companies, expatriated entities, companies that are domiciled | 19 | | or have their principal place of business in Russia or | 20 | | Belarus, and companies that are subject to Russian Harmful | 21 | | Foreign Activities Sanctions . | 22 | | (a) As used in this Section: | 23 | | "Boycott Israel" means engaging in actions that are | 24 | | politically motivated and are intended to penalize, |
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| 1 | | inflict economic harm on, or otherwise limit commercial | 2 | | relations with the State of Israel or companies based in | 3 | | the State of Israel or in territories controlled by the | 4 | | State of Israel. | 5 | | "Company" means any sole proprietorship, organization, | 6 | | association, corporation, partnership, joint venture, | 7 | | limited partnership, limited liability partnership, | 8 | | limited liability company, or other entity or business | 9 | | association, including all wholly owned subsidiaries, | 10 | | majority-owned subsidiaries, parent companies, or | 11 | | affiliates of those entities or business associations, | 12 | | that exist for the purpose of making profit. | 13 | | "Company that is subject to Russian Harmful Foreign | 14 | | Activities Sanctions" means a company that is subject to | 15 | | sanctions under the Russian Harmful Foreign Activities | 16 | | Sanctions Regulations (31 CFR Part 587), any Presidential | 17 | | Executive Order imposing sanctions against Russia, or any | 18 | | federal directive issued pursuant to any such Executive | 19 | | Order. | 20 | | "Company that is subject to Chinese | 21 | | Military-Industrial Complex Companies Sanctions" means a | 22 | | company that is subject to sanctions under the Chinese | 23 | | Military-Industrial Complex Companies Sanctions | 24 | | Regulations (31 CFR Part 586), any Presidential Executive | 25 | | Order imposing sanctions against the People's Republic of | 26 | | China or the Chinese Communist Party, or any federal |
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| 1 | | directive issued pursuant to any such Executive Order. | 2 | | "Contract to shelter migrant children" means entering | 3 | | into a contract with the federal government to shelter | 4 | | migrant children under the federal Unaccompanied Alien | 5 | | Children Program or a substantially similar federal | 6 | | program. | 7 | | "Direct holdings" in a company means all publicly | 8 | | traded securities of that company that are held directly | 9 | | by the retirement system in an actively managed account or | 10 | | fund in which the retirement system owns all shares or | 11 | | interests. | 12 | | "Expatriated entity" has the meaning ascribed to it in | 13 | | Section 1-15.120 of the Illinois Procurement Code. | 14 | | "Illinois Investment Policy Board" means the board | 15 | | established under subsection (b) of this Section. | 16 | | "Indirect holdings" in a company means all securities | 17 | | of that company that are held in an account or fund, such | 18 | | as a mutual fund, managed by one or more persons not | 19 | | employed by the retirement system, in which the retirement | 20 | | system owns shares or interests together with other | 21 | | investors not subject to the provisions of this Section or | 22 | | that are held in an index fund. | 23 | | "Iran-restricted company" means a company that meets | 24 | | the qualifications under Section 1-110.15 of this Code. | 25 | | "Private market fund" means any private equity fund, | 26 | | private equity funds of funds, venture capital fund, hedge |
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| 1 | | fund, hedge fund of funds, real estate fund, or other | 2 | | investment vehicle that is not publicly traded. | 3 | | "Restricted companies" means companies that boycott | 4 | | Israel, for-profit companies that contract to shelter | 5 | | migrant children, Iran-restricted companies, | 6 | | Sudan-restricted companies, expatriated entities, | 7 | | companies that are domiciled or have their principal place | 8 | | of business in Russia or Belarus, and companies that are | 9 | | subject to Russian Harmful Foreign Activities Sanctions , | 10 | | companies that are domiciled or have their principal place | 11 | | of business in the People's Republic of China, and | 12 | | companies that are subject to Chinese Military-Industrial | 13 | | Complex Companies Sanctions . | 14 | | "Retirement system" means a retirement system | 15 | | established under Article 2, 14, 15, 16, or 18 of this Code | 16 | | or the Illinois State Board of Investment. | 17 | | "Sudan-restricted company" means a company that meets | 18 | | the qualifications under Section 1-110.6 of this Code. | 19 | | (b) There shall be established an Illinois Investment | 20 | | Policy Board. The Illinois Investment Policy Board shall | 21 | | consist of 7 members. Each board of a pension fund or | 22 | | investment board created under Article 15, 16, or 22A of this | 23 | | Code shall appoint one member, and the Governor shall appoint | 24 | | 4 members. The Governor shall designate one member of the | 25 | | Board as the Chairperson. | 26 | | (b-5) The term of office of each member appointed by the |
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| 1 | | Governor, who is serving on the Board on June 30, 2022, is | 2 | | abolished on that date. The terms of office of members | 3 | | appointed by the Governor after June 30, 2022 shall be as | 4 | | follows: 2 initial members shall be appointed for terms of 2 | 5 | | years, and 2 initial members shall be appointed for terms of 4 | 6 | | years. Thereafter, the members appointed by the Governor shall | 7 | | hold office for 4 years, except that any member chosen to fill | 8 | | a vacancy occurring otherwise than by expiration of a term | 9 | | shall be appointed only for the unexpired term of the member | 10 | | whom he or she shall succeed. Board members may be | 11 | | reappointed. The Governor may remove a Governor's appointee to | 12 | | the Board for incompetence, neglect of duty, malfeasance, or | 13 | | inability to serve. | 14 | | (c) Notwithstanding any provision of law to the contrary, | 15 | | beginning January 1, 2016, Sections 1-110.15 and 1-110.6 of | 16 | | this Code shall be administered in accordance with this | 17 | | Section. | 18 | | (d) By April 1, 2016, the Illinois Investment Policy Board | 19 | | shall make its best efforts to identify all Iran-restricted | 20 | | companies, Sudan-restricted companies, and companies that | 21 | | boycott Israel and assemble those identified companies into a | 22 | | list of restricted companies, to be distributed to each | 23 | | retirement system. | 24 | | These efforts shall include the following, as appropriate | 25 | | in the Illinois Investment Policy Board's judgment: | 26 | | (1) reviewing and relying on publicly available |
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| 1 | | information regarding Iran-restricted companies, | 2 | | Sudan-restricted companies, and companies that boycott | 3 | | Israel, including information provided by nonprofit | 4 | | organizations, research firms, and government entities; | 5 | | (2) contacting asset managers contracted by the | 6 | | retirement systems that invest in Iran-restricted | 7 | | companies, Sudan-restricted companies, and companies that | 8 | | boycott Israel; | 9 | | (3) contacting other institutional investors that have | 10 | | divested from or engaged with Iran-restricted companies, | 11 | | Sudan-restricted companies, and companies that boycott | 12 | | Israel; and | 13 | | (4) retaining an independent research firm to identify | 14 | | Iran-restricted companies, Sudan-restricted companies, | 15 | | and companies that boycott Israel. | 16 | | The Illinois Investment Policy Board shall review the list | 17 | | of restricted companies on a quarterly basis based on evolving | 18 | | information from, among other sources, those listed in this | 19 | | subsection (d) and distribute any updates to the list of | 20 | | restricted companies to the retirement systems and the State | 21 | | Treasurer. | 22 | | By April 1, 2018, the Illinois Investment Policy Board | 23 | | shall make its best efforts to identify all expatriated | 24 | | entities and include those companies in the list of restricted | 25 | | companies distributed to each retirement system and the State | 26 | | Treasurer. These efforts shall include the following, as |
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| 1 | | appropriate in the Illinois Investment Policy Board's | 2 | | judgment: | 3 | | (1) reviewing and relying on publicly available | 4 | | information regarding expatriated entities, including | 5 | | information provided by nonprofit organizations, research | 6 | | firms, and government entities; | 7 | | (2) contacting asset managers contracted by the | 8 | | retirement systems that invest in expatriated entities; | 9 | | (3) contacting other institutional investors that have | 10 | | divested from or engaged with expatriated entities; and | 11 | | (4) retaining an independent research firm to identify | 12 | | expatriated entities. | 13 | | By July 1, 2022, the Illinois Investment Policy Board | 14 | | shall make its best efforts to identify all for-profit | 15 | | companies that contract to shelter migrant children and | 16 | | include those companies in the list of restricted companies | 17 | | distributed to each retirement system. These efforts shall | 18 | | include the following, as appropriate in the Illinois | 19 | | Investment Policy Board's judgment: | 20 | | (1) reviewing and relying on publicly available | 21 | | information regarding for-profit companies that contract | 22 | | to shelter migrant children, including information | 23 | | provided by nonprofit organizations, research firms, and | 24 | | government entities; | 25 | | (2) contacting asset managers contracted by the | 26 | | retirement systems that invest in for-profit companies |
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| 1 | | that contract to shelter migrant children; | 2 | | (3) contacting other institutional investors that have | 3 | | divested from or engaged with for-profit companies that | 4 | | contract to shelter migrant children; and | 5 | | (4) retaining an independent research firm to identify | 6 | | for-profit companies that contract to shelter migrant | 7 | | children. | 8 | | No later than 6 months after the effective date of this | 9 | | amendatory Act of the 102nd General Assembly, the Illinois | 10 | | Investment Policy Board shall make its best efforts to | 11 | | identify all companies that are domiciled or have their | 12 | | principal place of business in Russia or Belarus and companies | 13 | | that are subject to Russian Harmful Foreign Activities | 14 | | Sanctions and include those companies in the list of | 15 | | restricted companies distributed to each retirement system. | 16 | | These efforts shall include the following, as appropriate in | 17 | | the Illinois Investment Policy Board's judgment: | 18 | | (1) reviewing and relying on publicly available
| 19 | | information regarding companies that are domiciled or have | 20 | | their principal place of business in Russia or Belarus and | 21 | | companies that are subject to Russian Harmful Foreign | 22 | | Activities Sanctions, including information provided by | 23 | | nonprofit organizations, research firms, and government | 24 | | entities; | 25 | | (2) contacting asset managers contracted by the
| 26 | | retirement systems that invest in companies that are |
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| 1 | | domiciled or have their principal place of business in | 2 | | Russia or Belarus and companies that are subject to | 3 | | Russian Harmful Foreign Activities Sanctions; | 4 | | (3) contacting other institutional investors that have | 5 | | divested from or engaged with companies that are domiciled | 6 | | or have their principal place of business in Russia or | 7 | | Belarus and companies that are subject to Russian Harmful | 8 | | Foreign Activities Sanctions; and | 9 | | (4) retaining an independent research firm to
identify | 10 | | companies that are domiciled or have their principal place | 11 | | of business in Russia or Belarus and companies that are | 12 | | subject to Russian Harmful Foreign Activities Sanctions. | 13 | | No later than 6 months after the effective date of this | 14 | | amendatory Act of the 103rd General Assembly, the Illinois | 15 | | Investment Policy Board shall make its best efforts to | 16 | | identify all companies that are domiciled or have their | 17 | | principal place of business in the People's Republic of China | 18 | | and companies that are subject to Chinese Military-Industrial | 19 | | Complex Companies Sanctions and include those companies in the | 20 | | list of restricted companies distributed to each retirement | 21 | | system. These efforts shall include the following, as | 22 | | appropriate in the Illinois Investment Policy Board's | 23 | | judgment: | 24 | | (1) reviewing and relying on publicly available | 25 | | information regarding companies that are domiciled or have | 26 | | their principal place of business in the People's Republic |
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| 1 | | of China and companies that are subject to Chinese | 2 | | Military-Industrial Complex Companies Sanctions, | 3 | | including information provided by nonprofit organizations, | 4 | | research firms, and government entities; | 5 | | (2) contacting asset managers contracted by the | 6 | | retirement systems that invest in companies that are | 7 | | domiciled or have their principal place of business in the | 8 | | People's Republic of China and companies that are subject | 9 | | to Chinese Military-Industrial Complex Companies | 10 | | Sanctions; | 11 | | (3) contacting other institutional investors that have | 12 | | divested from or engaged with companies that are domiciled | 13 | | or have their principal place of business in the People's | 14 | | Republic of China and companies that are subject to | 15 | | Chinese Military-Industrial Complex Companies Sanctions; | 16 | | and | 17 | | (4) retaining an independent research firm to identify | 18 | | companies that are domiciled or have their principal place | 19 | | of business in the People's Republic of China and | 20 | | companies that are subject to Chinese Military-Industrial | 21 | | Complex Companies Sanctions. | 22 | | (e) The Illinois Investment Policy Board shall adhere to | 23 | | the following procedures for companies on the list of | 24 | | restricted companies: | 25 | | (1) For each company newly identified in subsection | 26 | | (d), the Illinois Investment Policy Board, unless it |
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| 1 | | determines by an affirmative vote that it is unfeasible, | 2 | | shall send a written notice informing the company of its | 3 | | status and that it may become subject to divestment or | 4 | | shareholder activism by the retirement systems. | 5 | | (2) If, following the Illinois Investment Policy | 6 | | Board's engagement pursuant to this subsection (e) with a | 7 | | restricted company, that company ceases activity that | 8 | | designates the company to be an Iran-restricted company, a | 9 | | Sudan-restricted company, a company that boycotts Israel, | 10 | | an expatriated entity, or a for-profit company that | 11 | | contracts to shelter migrant children, the company shall | 12 | | be removed from the list of restricted companies and the | 13 | | provisions of this Section shall cease to apply to it | 14 | | unless it resumes such activities. | 15 | | (3) For a company that is domiciled or has its | 16 | | principal place of business in Russia or Belarus, if, | 17 | | following the Illinois Investment Policy Board's | 18 | | engagement pursuant to this subsection (e), that company | 19 | | is no longer domiciled or has its principal place of | 20 | | business in Russia or Belarus, the company shall be | 21 | | removed from the list of restricted companies and the | 22 | | provisions of this Section shall cease to apply to it | 23 | | unless it becomes domiciled or has its principal place of | 24 | | business in Russia or Belarus. | 25 | | (4) For a company that is subject to Russian Harmful | 26 | | Foreign Activities Sanctions, if, following the Illinois |
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| 1 | | Investment Policy Board's engagement pursuant to this | 2 | | subsection (e), that company is no longer subject to | 3 | | Russian Harmful Foreign Activities Sanctions, the company | 4 | | shall be removed from the list of restricted companies and | 5 | | the provisions of this Section shall cease to apply to it | 6 | | unless it becomes subject to Russian Harmful Foreign | 7 | | Activities Sanctions. | 8 | | (5) For a company that is domiciled or has its | 9 | | principal place of business in the People's Republic of | 10 | | China, if, following the Illinois Investment Policy | 11 | | Board's engagement pursuant to this subsection (e), that | 12 | | company is no longer domiciled or has its principal place | 13 | | of business in the People's Republic of China, the company | 14 | | shall be removed from the list of restricted companies and | 15 | | the provisions of this Section shall cease to apply to it | 16 | | unless it becomes domiciled or has its principal place of | 17 | | business in the People's Republic of China. | 18 | | (6) For a company that is subject to Chinese | 19 | | Military-Industrial Complex Companies Sanctions, if, | 20 | | following the Illinois Investment Policy Board's | 21 | | engagement pursuant to this subsection (e), that company | 22 | | is no longer subject to Chinese Military-Industrial | 23 | | Complex Companies Sanctions, the company shall be removed | 24 | | from the list of restricted companies and the provisions | 25 | | of this Section shall cease to apply to it unless it | 26 | | becomes subject to Chinese Military-Industrial Complex |
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| 1 | | Companies Sanctions. | 2 | | (f) Except as provided in subsection (f-1) of this Section | 3 | | the retirement system shall adhere to the following procedures | 4 | | for companies on the list of restricted companies: | 5 | | (1) The retirement system shall identify those | 6 | | companies on the list of restricted companies in which the | 7 | | retirement system owns direct holdings and indirect | 8 | | holdings. | 9 | | (2) The retirement system shall instruct its | 10 | | investment advisors to sell, redeem, divest, or withdraw | 11 | | all direct holdings of restricted companies from the | 12 | | retirement system's assets under management in an orderly | 13 | | and fiduciarily responsible manner within 12 months after | 14 | | the company's most recent appearance on the list of | 15 | | restricted companies. | 16 | | (3) The retirement system may not acquire securities | 17 | | of restricted companies. | 18 | | (4) The provisions of this subsection (f) do not apply | 19 | | to the retirement system's indirect holdings or private | 20 | | market funds. The Illinois Investment Policy Board shall | 21 | | submit letters to the managers of those investment funds | 22 | | containing restricted companies requesting that they | 23 | | consider removing the companies from the fund or create a | 24 | | similar actively managed fund having indirect holdings | 25 | | devoid of the companies. If the manager creates a similar | 26 | | fund, the retirement system shall replace all applicable |
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| 1 | | investments with investments in the similar fund in an | 2 | | expedited timeframe consistent with prudent investing | 3 | | standards. | 4 | | (f-1) The retirement system shall adhere to the following | 5 | | procedures for restricted companies that are expatriated | 6 | | entities or for-profit companies that contract to shelter | 7 | | migrant children: | 8 | | (1) To the extent that the retirement system believes | 9 | | that shareholder activism would be more impactful than | 10 | | divestment, the retirement system shall have the authority | 11 | | to engage with a restricted company prior to divesting. | 12 | | (2) Subject to any applicable State or Federal laws, | 13 | | methods of shareholder activism utilized by the retirement | 14 | | system may include, but are not limited to, bringing | 15 | | shareholder resolutions and proxy voting on shareholder | 16 | | resolutions. | 17 | | (3) The retirement system shall report on its | 18 | | shareholder activism and the outcome of such efforts to | 19 | | the Illinois Investment Policy Board by April 1 of each | 20 | | year. | 21 | | (4) If the engagement efforts of the retirement system | 22 | | are unsuccessful, then it shall adhere to the procedures | 23 | | under subsection (f) of this Section. | 24 | | (f-5) Beginning on the effective date of this amendatory | 25 | | Act of the 102nd General Assembly, no retirement system shall | 26 | | invest moneys in Russian or Belarusian sovereign debt, Russian |
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| 1 | | or Belarusian government-backed securities, any investment | 2 | | instrument issued by an entity that is domiciled or has its | 3 | | principal place of business in Russia or Belarus, or any | 4 | | investment instrument issued by a company that is subject to | 5 | | Russian Harmful Foreign Activities Sanctions, and no | 6 | | retirement system shall invest or deposit State moneys in any | 7 | | bank that is domiciled or has its principal place of business | 8 | | in Russia or Belarus. As soon as practicable after the | 9 | | effective date of this amendatory Act of the 102nd General | 10 | | Assembly, each retirement system shall instruct its investment | 11 | | advisors to sell, redeem, divest, or withdraw all direct | 12 | | holdings of Russian or Belarusian sovereign debt and direct | 13 | | holdings of Russian or Belarusian government-backed securities | 14 | | from the retirement system's assets under management in an | 15 | | orderly and fiduciarily responsible manner. | 16 | | Notwithstanding any provision of this Section to the | 17 | | contrary, a retirement system may cease divestment pursuant to | 18 | | this subsection (f-5) if clear and convincing evidence shows | 19 | | that the value of investments in such Russian or Belarusian | 20 | | sovereign debt and Russian or Belarusian government-backed | 21 | | securities becomes equal to or less than 0.05% of the market | 22 | | value of all assets under management by the retirement system. | 23 | | For any cessation of divestment authorized by this subsection | 24 | | (f-5), the retirement system shall provide a written notice to | 25 | | the Illinois Investment Policy Board in advance of the | 26 | | cessation of divestment, setting forth the reasons and |
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| 1 | | justification, supported by clear and convincing evidence, for | 2 | | its decision to cease divestment under this subsection (f-5). | 3 | | The provisions of this subsection (f-5) do not apply to | 4 | | the retirement system's indirect holdings or private market | 5 | | funds. | 6 | | (f-10) Beginning on the effective date of this amendatory | 7 | | Act of the 103rd General Assembly, no retirement system shall | 8 | | invest moneys in Chinese Communist Party sovereign debt, | 9 | | Chinese Communist Party-backed securities, any investment | 10 | | instrument issued by an entity that is domiciled or has its | 11 | | principal place of business in the People's Republic of China, | 12 | | or any investment instrument issued by a company that is | 13 | | subject to Chinese Military-Industrial Complex Companies | 14 | | Sanctions, and no retirement system shall invest or deposit | 15 | | State moneys in any bank that is domiciled or has its principal | 16 | | place of business in the People's Republic of China. As soon as | 17 | | practicable after the effective date of this amendatory Act of | 18 | | the 103rd General Assembly, each retirement system shall | 19 | | instruct its investment advisors to sell, redeem, divest, or | 20 | | withdraw all direct holdings of Chinese Communist Party | 21 | | sovereign debt and direct holdings of Chinese Communist | 22 | | Party-backed securities from the retirement system's assets | 23 | | under management in an orderly and fiduciarily responsible | 24 | | manner. | 25 | | Notwithstanding any provision of this Section to the | 26 | | contrary, a retirement system may cease divestment pursuant to |
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| 1 | | this subsection (f-10) if clear and convincing evidence shows | 2 | | that the value of investments in such Chinese Communist Party | 3 | | sovereign debt and Chinese Communist Party-backed securities | 4 | | becomes equal to or less than 0.05% of the market value of all | 5 | | assets under management by the retirement system. For any | 6 | | cessation of divestment authorized by this subsection (f-10), | 7 | | the retirement system shall provide a written notice to the | 8 | | Illinois Investment Policy Board in advance of the cessation | 9 | | of divestment, setting forth the reasons and justification, | 10 | | supported by clear and convincing evidence, for its decision | 11 | | to cease divestment under this subsection (f-10). | 12 | | The provisions of this subsection (f-10) do not apply to | 13 | | the retirement system's indirect holdings or private market | 14 | | funds. | 15 | | (g) Upon request, and by April 1 of each year, each | 16 | | retirement system shall provide the Illinois Investment Policy | 17 | | Board with information regarding investments sold, redeemed, | 18 | | divested, or withdrawn in compliance with this Section. | 19 | | (h) Notwithstanding any provision of this Section to the | 20 | | contrary, a retirement system may cease divesting from | 21 | | companies pursuant to subsection (f) if clear and convincing | 22 | | evidence shows that the value of investments in such companies | 23 | | becomes equal to or less than 0.5% of the market value of all | 24 | | assets under management by the retirement system. For any | 25 | | cessation of divestment authorized by this subsection (h), the | 26 | | retirement system shall provide a written notice to the |
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| 1 | | Illinois Investment Policy Board in advance of the cessation | 2 | | of divestment, setting forth the reasons and justification, | 3 | | supported by clear and convincing evidence, for its decision | 4 | | to cease divestment under subsection (f). | 5 | | (i) The cost associated with the activities of the | 6 | | Illinois Investment Policy Board shall be borne by the boards | 7 | | of each pension fund or investment board created under Article | 8 | | 15, 16, or 22A of this Code. | 9 | | (j) With respect to actions taken in compliance with this | 10 | | Section, including all good-faith determinations regarding | 11 | | companies as required by this Section, the retirement system | 12 | | and Illinois Investment Policy Board are exempt from any | 13 | | conflicting statutory or common law obligations, including any | 14 | | fiduciary duties under this Article and any obligations with | 15 | | respect to choice of asset managers, investment funds, or | 16 | | investments for the retirement system's securities portfolios. | 17 | | (k) It is not the intent of the General Assembly in | 18 | | enacting this amendatory Act of the 99th General Assembly to | 19 | | cause divestiture from any company based in the United States | 20 | | of America. The Illinois Investment Policy Board shall | 21 | | consider this intent when developing or reviewing the list of | 22 | | restricted companies. | 23 | | (l) If any provision of this amendatory Act of the 99th | 24 | | General Assembly or its application to any person or | 25 | | circumstance is held invalid, the invalidity of that provision | 26 | | or application does not affect other provisions or |
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| 1 | | applications of this amendatory Act of the 99th General | 2 | | Assembly that can be given effect without the invalid | 3 | | provision or application.
| 4 | | If any provision of Public Act 100-551 or its application | 5 | | to any person or circumstance is held invalid, the invalidity | 6 | | of that provision or application does not affect other | 7 | | provisions or applications of Public Act 100-551 that can be | 8 | | given effect without the invalid provision or application. | 9 | | If any provision of Public Act 102-118 or its application | 10 | | to any person or circumstance is held invalid, the invalidity | 11 | | of that provision or application does not affect other | 12 | | provisions or applications of Public Act 102-118 that can be | 13 | | given effect without the invalid provision or application. | 14 | | If any provision of this amendatory Act of the 102nd | 15 | | General Assembly or its application to any person or | 16 | | circumstance is held invalid, the invalidity of that provision | 17 | | or application does not affect other provisions or | 18 | | applications of this amendatory Act of the 102nd General | 19 | | Assembly that can be given effect without the invalid | 20 | | provision or application. | 21 | | If any provision of this amendatory Act of the 103rd | 22 | | General Assembly or its application to any person or | 23 | | circumstance is held invalid, the invalidity of that provision | 24 | | or application does not affect other provisions or | 25 | | applications of this amendatory Act of the 103rd General | 26 | | Assembly that can be given effect without the invalid |
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| 1 | | provision or application. | 2 | | (Source: P.A. 102-118, eff. 7-23-21; 102-699, eff. 4-19-22; | 3 | | 102-1108, eff. 12-21-22.) | 4 | | Section 25. The Board of Higher Education Act is amended | 5 | | by changing Section 9.42 as follows: | 6 | | (110 ILCS 205/9.42) | 7 | | Sec. 9.42. Disclosure of donations from certain Russian, | 8 | | Belarusian, Chinese, or sanctioned sources. The Board shall | 9 | | require each public institution of higher education to | 10 | | disclose to the Board any endowment or other donation given to | 11 | | the institution from a source associated with any individual | 12 | | or entity listed on the sanctions list maintained by the U.S. | 13 | | Department of Treasury's Office of Foreign Asset Control or | 14 | | any company that is domiciled or has its principal place of | 15 | | business in Russia , or Belarus , or the People's Republic of | 16 | | China and is on the list of restricted companies developed by | 17 | | the Illinois Investment Policy Board under Section 1-110.16 of | 18 | | the Illinois Pension Code.
| 19 | | (Source: P.A. 102-1108, eff. 12-21-22.)
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INDEX
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Statutes amended in order of appearance
| | 3 | | 15 ILCS 520/22.10 new | | | 4 | | 30 ILCS 235/2.4 new | | | 5 | | 30 ILCS 500/50-36.5 new | | | 6 | | 40 ILCS 5/1-110.16 | | | 7 | | 110 ILCS 205/9.42 | |
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