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| | HB2984 Engrossed | | LRB103 29864 RPS 56273 b |
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1 | | AN ACT concerning State government.
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2 | | Be it enacted by the People of the State of Illinois,
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3 | | represented in the General Assembly:
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4 | | Section 5. The Deposit of State Moneys Act is amended by |
5 | | adding Section 22.10 as follows:
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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:
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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.
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20 | | Section 15. The Illinois Procurement Code is amended by |
21 | | adding Section 50-36.5 as follows:
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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.
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11 | | Section 20. The Illinois Pension Code is amended by |
12 | | changing Section 1-110.16 as follows:
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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
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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
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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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| | HB2984 Engrossed | - 20 - | LRB103 29864 RPS 56273 b |
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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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| | HB2984 Engrossed | - 21 - | LRB103 29864 RPS 56273 b |
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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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| | HB2984 Engrossed | - 22 - | LRB103 29864 RPS 56273 b |
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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.
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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.)
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4 | | Section 25. The Board of Higher Education Act is amended |
5 | | by changing Section 9.42 as follows:
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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.
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19 | | (Source: P.A. 102-1108, eff. 12-21-22.)
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| 1 | |
INDEX
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Statutes amended in order of appearance
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