Bill Amendment: IL SB1751 | 2015-2016 | 99th General Assembly

NOTE: For additional amemendments please see the Bill Drafting List

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Bill Title: DCFS-SEX TRAFFICKING VICTIMS

Status: 2017-01-03 - Rule 19(b) / Re-referred to Rules Committee [SB1751 Detail]

Download: Illinois-2015-SB1751-House_Amendment_002.html

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Rep. Will Guzzardi

Filed: 11/23/2016

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AMENDMENT TO SENATE BILL 1751
AMENDMENT NO. ______. Amend Senate Bill 1751 by replacing
everything after the enacting clause with the following:
"Section 5. The Illinois Procurement Code is amended by
adding Section 50-36.5 as follows:
(30 ILCS 500/50-36.5 new)
Sec. 50-36.5. Prohibition on contracts with businesses
that contract to build a border wall. Notwithstanding any other
provision of this Code, on and after the effective date of this
amendatory Act of the 99th General Assembly, a State agency
shall not enter into a contract subject to this Code with a
business that contracts to build a border wall. In determining
whether a business contracts to build a border wall, a State
agency shall consult the list of restricted companies developed
by the Illinois Investment Policy Board in accordance with
Section 1-110.16 of the Illinois Pension Code. For the purposes

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of this Section, "contracts to build a border wall" means
entering into a contract with the federal government for the
purposes of building a wall along the border of Mexico and the
United States of America. This Section is repealed on January
20, 2021.
Section 10. 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, companies that
contract to build a border wall, Iran-restricted companies, and
Sudan-restricted companies.
(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,

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majority-owned subsidiaries, parent companies, or
affiliates of those entities or business associations,
that exist for the purpose of making profit.
"Contract to build a border wall" means entering into a
contract with the federal government for the purposes of
building a wall along the border of Mexico and the United
States of America.
"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.
"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

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investment vehicle that is not publicly traded.
"Restricted companies" means companies that boycott
Israel, companies that contract to build a border wall,
Iran-restricted companies, and Sudan-restricted companies.
"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.
(c) Notwithstanding any provision of law to the contrary,
beginning January 1, 2016, Sections 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:

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(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.
By April 1, 2017, the Illinois Investment Policy Board
shall make its best efforts to identify all companies that
contract to build a border wall 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 contract to build a
border wall, including information provided by nonprofit

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organizations, research firms, and government entities;
(2) contacting asset managers contracted by the
retirement systems that invest in companies that contract
to build a border wall;
(3) contacting other institutional investors that have
divested from or engaged with companies that contract to
build a border wall; and
(4) retaining an independent research firm to identify
companies that contract to build a border wall.
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.
(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 shall send a
written notice informing the company of its status and that
it may become subject to divestment 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

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Sudan-restricted company, or a company that boycotts
Israel, 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.
(f) 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

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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.
(g) Upon request, and at least annually, 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.

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(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 Public Act 99-128 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 Public Act 99-128 or 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 Public Act 99-128 or this
amendatory Act of the 99th General Assembly that can be given
effect without the invalid provision or application.
(m) The changes made by this amendatory Act of the 99th
General Assembly are inoperative on and after January 20, 2021.
(Source: P.A. 99-128, eff. 7-23-15.)
Section 99. Effective date. This Act takes effect upon

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becoming law.".