Bill Text: IL HB1293 | 2021-2022 | 102nd General Assembly | Enrolled

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Reinserts the provisions of the engrossed bill with the following changes. Makes changes to the findings of the General Assembly. Makes changes to the membership of the Money Laundering in Real Estate Task Force and the Illinois Elections and Infrastructure Integrity Task Force. Provides that the Illinois Elections and Infrastructure Integrity Task Force shall submit a report containing its findings and recommendations to the Governor and the General Assembly not later than January 1, 2024 (rather than 18 months after the effective date of the amendatory Act). Requires the Illinois Elections and Infrastructure Integrity Task Force to also submit a report evaluating the 2024 election not later than March 1, 2025. Makes conforming changes. Effective immediately.

Spectrum: Slight Partisan Bill (Democrat 25-10)

Status: (Passed) 2022-12-21 - Public Act . . . . . . . . . 102-1108 [HB1293 Detail]

Download: Illinois-2021-HB1293-Enrolled.html

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AN ACT concerning government.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Article 1.
Section 1-1. Findings.
(a) The General Assembly finds that:
(1) Russia launched an unprecedented military assault
on Ukraine that has left many dead, and the fighting in
Ukraine appears to be some of the worst conventional
warfare Europe has seen since World War II and the
conflicts in the Balkans in the 1990s;
(2) Western leaders have been united in their swift
and strong condemnation of Russia's military action;
(3) President Biden has stated that Russian President
Putin had "committed an assault on the very principles
that uphold the global peace", and the United States has,
as a result, taken steps to impose harsh, new sanctions
that are intended to punish President Putin for his
actions;
(4) Secretary of State Blinken has indicated that
there are credible reports that Russia has engaged in
actions during its military assault on Ukraine that
constitute war crimes under international law;

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(5) Russia has used, during its military assault on
Ukraine, weapons that have been banned by many countries,
including cluster munitions;
(6) Russia has conducted direct attacks on major
nuclear power facilities in Ukraine, which could lead to
disaster and the spread of radioactive contamination
across Ukraine and Europe;
(7) the United Nations has estimated that more than
14,000,000 Ukrainians have already been displaced within
the country and more than 7,000,000 have left the country
as a result of the Russian invasion;
(8) the international community is making preparations
to meet the humanitarian needs of those refugees who are
displaced by this conflict;
(9) Central Europe is welcoming Ukrainians, but the
countries in that region are not currently equipped to
handle the volume of refugees that are anticipated to
arrive at their borders in the coming weeks, and European
and U.S. leadership must help build that capacity; and
(10) Illinois is a welcoming state to refugees and
immigrants and home to a robust community of Ukrainian
immigrants and Ukrainian descendants, many of whom live in
Chicago's Ukrainian Village neighborhood.
(b) For these reasons, the General Assembly urges:
(1) the pension funds and retirement systems
established under the Illinois Pension Code to divest

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their holdings in any companies that are domiciled in
Russia or Belarus and that are on the list of restricted
companies developed by the Illinois Investment Policy
Board;
(2) all municipalities to reconsider any sister-city
relationships they may have with cities in Russia; and
(3) the United States Department of State to resettle
Ukrainian refugees in Illinois.
Article 5.
Section 5-1. Short title. This Article may be cited as the
Money Laundering in Real Estate Task Force Act. References in
this Article to "this Act" mean this Article.
Section 5-3. Findings. The General Assembly finds and
declares the following:
(1) the United States Department of Treasury's
Financial Crimes Enforcement Network found, in 2017, that
30% of all high-end real estate purchases in major
metropolitan areas involved beneficial owners or
purchasers who were the subject of previous suspicious
activity reports;
(2) the United States, unlike Canada and several other
jurisdictions, does not require real estate agents and
brokers to file suspicious transaction reports;

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(3) the lack of beneficial ownership transparency is
an important factor in facilitating money laundering in
real estate; and
(4) money laundering in real estate has negative
consequences for local communities, including the
dislocation of residents from and within major
metropolitan areas.
Section 5-5. Money Laundering in Real Estate Task Force.
(a) The Money Laundering in Real Estate Task Force is
created. The Task Force shall consist of the following
members:
(1) 4 members appointed one each by the Speaker of the
House of Representatives, the Minority Leader of the House
of Representatives, the President of the Senate, and the
Minority Leader of the Senate;
(2) the Secretary of Financial and Professional
Regulation or the Secretary's designee;
(3) the Director of Revenue or the Director's
designee;
(4) 2 members of the faculty of an institution of
higher education in the State with subject matter
expertise regarding money laundering in real estate,
appointed by the Governor;
(5) one expert on real estate tax law, appointed by
the Governor;

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(6) one representative of banking institutions with
assets of at least $1,000,000,000, appointed by the
Governor;
(7) one representative of banking institutions with
assets below $1,000,000,000, appointed by the Governor;
(8) 2 representatives of a statewide organization
representing real estate brokers, appointed by the
Governor; and
(9) 4 members with backgrounds in real estate,
financial institutions, or law, appointed one each by the
Speaker of the House of Representatives, the Minority
Leader of the House of Representatives, the President of
the Senate, and the Minority Leader of the Senate.
(b) Initial appointments to the Task Force shall be made
as soon as practicable after the effective date of this Act.
The Task Force shall hold its first meeting within a
reasonable period of time after its members have been
appointed and shall convene regularly to carry out its duties
and submit the reports required under this Act. At its first
meeting, the Task Force shall elect its chairperson and any
other officers from among its members.
(c) The Department of Financial and Professional
Regulation and the Department of Revenue shall provide
administrative and other support to the Task Force.
Section 5-10. Duties. The Task Force shall:

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(1) identify vulnerabilities in the real estate sector
that facilitate money laundering;
(2) provide guidance to help actors in the real estate
sector identify suspicious transactions and report them to
the proper authorities;
(3) explore the means by which illicit money is
channeled into the real estate sector and integrated into
the legal economy, including, but not limited to, cash
purchases, complex loans, monetary instruments, mortgages,
investment institutions, fraudulent appraisals, and
anonymous corporate entities;
(4) assess the exposure of the residential,
industrial, and commercial real estate sectors in Illinois
to illicit Russian money, including, but not limited to,
luxury real estate in Chicago and nonresidential real
estate in downstate communities; and
(5) assess real estate due diligence and reporting
practices, requirements, and laws in Illinois and
recommend changes needed to eliminate systemic
vulnerabilities that facilitate foreign money laundering.
Section 5-15. Reports. The Task Force shall submit a
report to the Governor and the General Assembly not later than
12 months after the effective date of this Act. The report
shall include the Task Force's findings and shall summarize
the actions the Task Force has taken and those it intends to

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take in response to its obligations under the Act. After it
submits its initial report, the Task Force shall periodically
submit reports to the Governor and the General Assembly as the
chairperson of the Task Force deems necessary to apprise those
officials of any additional findings made or actions taken by
the Task Force. The obligation of the Task Force to submit
periodic reports shall continue for the duration of the Task
Force.
Section 5-20. Dissolution of Task Force; repeal. The Task
Force is dissolved on January 1, 2025. This Act is repealed on
January 1, 2026.
Article 10.
Section 10-5. The Illinois Administrative Procedure Act is
amended by adding Section 5-45.35 as follows:
(5 ILCS 100/5-45.35 new)
Sec. 5-45.35. Emergency rulemaking; Refugee Resettlement
Program. To ensure the availability of refugee resettlement
program services in the case of an imminent, large-scale
refugee resettlement event, emergency rules may be adopted in
accordance with Section 5-45 by the Department of Human
Services. The adoption of emergency rules authorized by
Section 5-45 and this Section is deemed to be necessary for the

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public interest, safety, and welfare.
This Section is repealed one year after the effective date
of this amendatory Act of the 102nd General Assembly.
Section 10-7. The Election Code is amended by adding
Section 1-22 as follows:
(10 ILCS 5/1-22 new)
Sec. 1-22. The Illinois Elections and Infrastructure
Integrity Task Force.
(a) The Illinois Elections and Infrastructure Integrity
Task Force is created. The Task Force shall consist of the
following members:
(1) 4 members appointed one each by the Speaker of the
House of Representatives, the Minority Leader of the House
of Representatives, the President of the Senate, and the
Minority Leader of the Senate;
(2) one member with subject matter expertise regarding
cybersecurity, appointed by the Minority Leader of the
House of Representatives;
(3) one member with subject matter expertise regarding
voting technology or election integrity, appointed by the
Speaker of the House;
(4) one member who is an individual with current
experience in operational cybersecurity, preferably
international operational cybersecurity, appointed by the

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President of the Senate;
(5) one county clerk, appointed by the Minority Leader
of the Senate;
(6) the Chair of the Board of Election Commissioners
for the City of Chicago or the Chair's designee;
(7) the county clerk of Cook County;
(8) one election administrator, appointed by the
Governor;
(9) the Executive Director of the State Board of
Elections or the Executive Director's designee;
(10) the Secretary of State or the Secretary's
designee;
(11) the Director of the Illinois Emergency Management
Agency or the Director's designee;
(12) the Secretary of Innovation and Technology or the
Secretary's designee; and
(13) the Attorney General or the Attorney General's
designee.
(b) The Task Force shall evaluate and make recommendations
to prepare for and prevent foreign interference in elections
in advance of the 2024 election and all future elections in the
State and to prepare for and prevent potential cyberattacks on
State infrastructure. In carrying out its duties, the Task
Force shall prioritize the security of all Illinois residents
and cooperation with other states and with law enforcement to
protect United States national sovereignty. The Task Force

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shall submit a report containing its findings and
recommendations to the Governor and the General Assembly not
later than January 1, 2024. The Task Force shall also submit a
report evaluating the 2024 election to the Governor and the
General Assembly not later than March 1, 2025.
(c) The State Board of Elections shall provide staff and
administrative support to the Task Force.
(d) The Task Force is dissolved, and this Section is
repealed, on June 1, 2025.
Section 10-10. The Deposit of State Moneys Act is amended
by adding Section 22.7 as follows:
(15 ILCS 520/22.7 new)
Sec. 22.7. Russian or Belarusian investments prohibited.
Notwithstanding any provision of law to the contrary, the
State Treasurer shall not invest State money in Russian or
Belarusian sovereign debt, Russian or Belarusian
government-backed securities, any investment instrument issued
by an entity that is domiciled or has its principal place of
business in Russia or Belarus, or any investment instrument
issued by a company that is subject to Russian Harmful Foreign
Activities Sanctions, as that term is defined under Section
1-110.16 of the Illinois Pension Code, and shall not invest or
deposit State money in any bank that is domiciled or has its
principal place of business in Russia or Belarus or in any

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other financial institution that is domiciled or has its
principal place of business in Russia or Belarus or that is
subject to Russian Harmful Foreign Activities Sanctions.
Section 10-20. The Illinois State Police Law of the Civil
Administrative Code of Illinois is amended by changing Section
2605-35 as follows:
(20 ILCS 2605/2605-35) (was 20 ILCS 2605/55a-3)
Sec. 2605-35. Division of Criminal Investigation.
(a) The Division of Criminal Investigation shall exercise
the following functions and those in Section 2605-30:
(1) Exercise the rights, powers, and duties vested by
law in the Illinois State Police by the Illinois Horse
Racing Act of 1975, including those set forth in Section
2605-215.
(2) Investigate the origins, activities, personnel,
and incidents of crime and enforce the criminal laws of
this State related thereto.
(3) Enforce all laws regulating the production, sale,
prescribing, manufacturing, administering, transporting,
having in possession, dispensing, delivering,
distributing, or use of controlled substances and
cannabis.
(4) Cooperate with the police of cities, villages, and
incorporated towns and with the police officers of any

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county in enforcing the laws of the State and in making
arrests and recovering property.
(5) Apprehend and deliver up any person charged in
this State or any other state with treason or a felony or
other crime who has fled from justice and is found in this
State.
(6) Investigate recipients and providers under the
Illinois Public Aid Code and any personnel involved in the
administration of the Code who are suspected of any
violation of the Code pertaining to fraud in the
administration, receipt, or provision of assistance and
pertaining to any violation of criminal law; and exercise
the functions required under Section 2605-220 in the
conduct of those investigations.
(7) Conduct other investigations as provided by law.
(8) Investigate public corruption.
(9) Exercise other duties that may be assigned by the
Director in order to fulfill the responsibilities and
achieve the purposes of the Illinois State Police, which
may include the coordination of gang, terrorist, and
organized crime prevention, control activities, and
assisting local law enforcement in their crime control
activities.
(10) Conduct investigations (and cooperate with
federal law enforcement agencies in the investigation) of
any property-related crimes, such as money laundering,

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involving individuals or entities listed on the sanctions
list maintained by the U.S. Department of Treasury's
Office of Foreign Asset Control.
(b) (Blank).
(Source: P.A. 102-538, eff. 8-20-21; 102-813, eff. 5-13-22.)
Section 10-30. The Public Funds Investment Act is amended
by adding Section 2.3 as follows:
(30 ILCS 235/2.3 new)
Sec. 2.3. Russian or Belarusian investments prohibited.
Notwithstanding any provision of law to the contrary, a public
agency shall not invest public funds in Russian or Belarusian
sovereign debt, Russian or Belarusian government-backed
securities, any investment instrument issued by an entity that
is domiciled or has its principal place of business in Russia
or Belarus, or any investment instrument issued by a company
that is subject to Russian Harmful Foreign Activities
Sanctions, as that term is defined under Section 1-110.16 of
the Illinois Pension Code, and shall not invest or deposit
public funds in any bank that is domiciled or has its principal
place of business in Russia or Belarus or in any other
financial institution that is domiciled or has its principal
place of business in Russia or Belarus or that is subject to
Russian Harmful Foreign Activities Sanctions.

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Section 10-35. 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, for-profit companies
that contract to shelter migrant children, Iran-restricted
companies, Sudan-restricted companies, and expatriated
entities, companies that are domiciled or have their principal
place of business in Russia or Belarus, and companies that are
subject to Russian Harmful Foreign Activities Sanctions.
(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,
majority-owned subsidiaries, parent companies, or
affiliates of those entities or business associations,
that exist for the purpose of making profit.

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"Company that is subject to Russian Harmful Foreign
Activities Sanctions" means a company that is subject to
sanctions under the Russian Harmful Foreign Activities
Sanctions Regulations (31 CFR Part 587), any Presidential
Executive Order imposing sanctions against Russia, or any
federal directive issued pursuant to any such Executive
Order.
"Contract to shelter migrant children" means entering
into a contract with the federal government to shelter
migrant children under the federal Unaccompanied Alien
Children Program or a substantially similar federal
program.
"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.
"Expatriated entity" has the meaning ascribed to it in
Section 1-15.120 of the Illinois Procurement Code.
"Illinois Investment Policy Board" means the board
established under subsection (b) of this Section.
"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

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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
investment vehicle that is not publicly traded.
"Restricted companies" means companies that boycott
Israel, for-profit companies that contract to shelter
migrant children, Iran-restricted companies,
Sudan-restricted companies, and expatriated entities,
companies that are domiciled or have their principal place
of business in Russia or Belarus, and companies that are
subject to Russian Harmful Foreign Activities Sanctions.
"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

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Code shall appoint one member, and the Governor shall appoint
4 members. The Governor shall designate one member of the
Board as the Chairperson.
(b-5) The term of office of each member appointed by the
Governor, who is serving on the Board on June 30, 2022, is
abolished on that date. The terms of office of members
appointed by the Governor after June 30, 2022 shall be as
follows: 2 initial members shall be appointed for terms of 2
years, and 2 initial members shall be appointed for terms of 4
years. Thereafter, the members appointed by the Governor shall
hold office for 4 years, except that any member chosen to fill
a vacancy occurring otherwise than by expiration of a term
shall be appointed only for the unexpired term of the member
whom he or she shall succeed. Board members may be
reappointed. The Governor may remove a Governor's appointee to
the Board for incompetence, neglect of duty, malfeasance, or
inability to serve.
(c) Notwithstanding any provision of law to the contrary,
beginning January 1, 2016, Sections 1-110.15 110.15 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

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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 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.
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 and the State
Treasurer.
By April 1, 2018, the Illinois Investment Policy Board

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shall make its best efforts to identify all expatriated
entities and include those companies in the list of restricted
companies distributed to each retirement system and the State
Treasurer. 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 expatriated entities, including
information provided by nonprofit organizations, research
firms, and government entities;
(2) contacting asset managers contracted by the
retirement systems that invest in expatriated entities;
(3) contacting other institutional investors that have
divested from or engaged with expatriated entities; and
(4) retaining an independent research firm to identify
expatriated entities.
By July 1, 2022, the Illinois Investment Policy Board
shall make its best efforts to identify all for-profit
companies that contract to shelter migrant children 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 for-profit companies that contract
to shelter migrant children, including information

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provided by nonprofit organizations, research firms, and
government entities;
(2) contacting asset managers contracted by the
retirement systems that invest in for-profit companies
that contract to shelter migrant children;
(3) contacting other institutional investors that have
divested from or engaged with for-profit companies that
contract to shelter migrant children; and
(4) retaining an independent research firm to identify
for-profit companies that contract to shelter migrant
children.
No later than 6 months after the effective date of this
amendatory Act of the 102nd General Assembly, the Illinois
Investment Policy Board shall make its best efforts to
identify all companies that are domiciled or have their
principal place of business in Russia or Belarus and companies
that are subject to Russian Harmful Foreign Activities
Sanctions 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 are domiciled or have
their principal place of business in Russia or Belarus and
companies that are subject to Russian Harmful Foreign
Activities Sanctions, including information provided by

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nonprofit organizations, research firms, and government
entities;
(2) contacting asset managers contracted by the
retirement systems that invest in companies that are
domiciled or have their principal place of business in
Russia or Belarus and companies that are subject to
Russian Harmful Foreign Activities Sanctions;
(3) contacting other institutional investors that have
divested from or engaged with companies that are domiciled
or have their principal place of business in Russia or
Belarus and companies that are subject to Russian Harmful
Foreign Activities Sanctions; and
(4) retaining an independent research firm to identify
companies that are domiciled or have their principal place
of business in Russia or Belarus and companies that are
subject to Russian Harmful Foreign Activities Sanctions.
(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, unless it
determines by an affirmative vote that it is unfeasible,
shall send a written notice informing the company of its
status and that it may become subject to divestment or
shareholder activism by the retirement systems.
(2) If, following the Illinois Investment Policy

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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
Sudan-restricted company, a company that boycotts Israel,
an expatriated entity, or a for-profit company that
contracts to shelter migrant children, 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.
(3) For a company that is domiciled or has its
principal place of business in Russia or Belarus, if,
following the Illinois Investment Policy Board's
engagement pursuant to this subsection (e), that company
is no longer domiciled or has its principal place of
business in Russia or Belarus, 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 becomes domiciled or has its principal place of
business in Russia or Belarus.
(4) For a company that is subject to Russian Harmful
Foreign Activities Sanctions, if, following the Illinois
Investment Policy Board's engagement pursuant to this
subsection (e), that company is no longer subject to
Russian Harmful Foreign Activities Sanctions, the company
shall be removed from the list of restricted companies and
the provisions of this Section shall cease to apply to it

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unless it becomes subject to Russian Harmful Foreign
Activities Sanctions.
(f) Except as provided in subsection (f-1) of this Section
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
similar actively managed fund having indirect holdings
devoid of the companies. If the manager creates a similar

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fund, the retirement system shall replace all applicable
investments with investments in the similar fund in an
expedited timeframe consistent with prudent investing
standards.
(f-1) The retirement system shall adhere to the following
procedures for restricted companies that are expatriated
entities or for-profit companies that contract to shelter
migrant children:
(1) To the extent that the retirement system believes
that shareholder activism would be more impactful than
divestment, the retirement system shall have the authority
to engage with a restricted company prior to divesting.
(2) Subject to any applicable State or Federal laws,
methods of shareholder activism utilized by the retirement
system may include, but are not limited to, bringing
shareholder resolutions and proxy voting on shareholder
resolutions.
(3) The retirement system shall report on its
shareholder activism and the outcome of such efforts to
the Illinois Investment Policy Board by April 1 of each
year.
(4) If the engagement efforts of the retirement system
are unsuccessful, then it shall adhere to the procedures
under subsection (f) of this Section.
(f-5) Beginning on the effective date of this amendatory
Act of the 102nd General Assembly, no retirement system shall

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invest moneys in Russian or Belarusian sovereign debt, Russian
or Belarusian government-backed securities, any investment
instrument issued by an entity that is domiciled or has its
principal place of business in Russia or Belarus, or any
investment instrument issued by a company that is subject to
Russian Harmful Foreign Activities Sanctions, and no
retirement system shall invest or deposit State moneys in any
bank that is domiciled or has its principal place of business
in Russia or Belarus. As soon as practicable after the
effective date of this amendatory Act of the 102nd General
Assembly, each retirement system shall instruct its investment
advisors to sell, redeem, divest, or withdraw all direct
holdings of Russian or Belarusian sovereign debt and direct
holdings of Russian or Belarusian government-backed securities
from the retirement system's assets under management in an
orderly and fiduciarily responsible manner.
Notwithstanding any provision of this Section to the
contrary, a retirement system may cease divestment pursuant to
this subsection (f-5) if clear and convincing evidence shows
that the value of investments in such Russian or Belarusian
sovereign debt and Russian or Belarusian government-backed
securities becomes equal to or less than 0.05% of the market
value of all assets under management by the retirement system.
For any cessation of divestment authorized by this subsection
(f-5), the retirement system shall provide a written notice to
the Illinois Investment Policy Board in advance of the

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cessation of divestment, setting forth the reasons and
justification, supported by clear and convincing evidence, for
its decision to cease divestment under this subsection (f-5).
The provisions of this subsection (f-5) do not apply to
the retirement system's indirect holdings or private market
funds.
(g) Upon request, and by April 1 of each year, 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 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 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 this amendatory Act of the 99th General
Assembly that can be given effect without the invalid
provision or application.
If any provision of Public Act 100-551 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 100-551 that can be
given effect without the invalid provision or application.

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If any provision of Public Act 102-118 this amendatory Act
of the 102nd 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 102-118 this amendatory Act of the
102nd General Assembly that can be given effect without the
invalid provision or application.
If any provision of this amendatory Act of the 102nd
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 this amendatory Act of the 102nd General
Assembly that can be given effect without the invalid
provision or application.
(Source: P.A. 102-118, eff. 7-23-21; 102-699, eff. 4-19-22.)
Section 10-40. The Board of Higher Education Act is
amended by adding Section 9.42 as follows:
(110 ILCS 205/9.42 new)
Sec. 9.42. Disclosure of donations from certain Russian,
Belarusian, or sanctioned sources. The Board shall require
each public institution of higher education to disclose to the
Board any endowment or other donation given to the institution
from a source associated with any individual or entity listed
on the sanctions list maintained by the U.S. Department of

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Treasury's Office of Foreign Asset Control or any company that
is domiciled or has its principal place of business in Russia
or Belarus and is on the list of restricted companies
developed by the Illinois Investment Policy Board under
Section 1-110.16 of the Illinois Pension Code.
Article 99.
Section 99-97. Severability. The provisions of this Act
are severable under Section 1.31 of the Statute on Statutes.
Section 99-99. Effective date. This Act takes effect upon
becoming law.