Bill Text: IL SB2152 | 2023-2024 | 103rd General Assembly | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Reinserts the provisions of the bill as amended by Senate Amendment No. 2 with the following changes. Provides that the State Treasurer, upon the affirmative vote of three-fifths of the Board (instead of upon the request of the Board), shall manage the domestic and international proxy voting activity for shares held directly by the System or Investment Board and execute required ballots on behalf of the System or Investment Board. Provides that the Board's consent may be revoked at any time upon the affirmative vote of a majority of the Board. Requires the State Treasurer to provide access to communications with its third-party proxy voting service, if any, used in preparing the comprehensive proxy voting reports requested by the Board. Authorizes the Board to provide the State Treasurer with guidance for proxy voting, which, if provided, the State Treasurer shall consider when voting. Provides that in order to facilitate the State Treasurer's proxy voting activities and before the State Treasurer begins proxy voting activities, the State Treasurer and the Board shall enter into an intergovernmental agreement concerning costs, proxy voting guidance, reports and other documents, and other issues. Removes language providing that all costs associated with the State Treasurer's management of proxy voting activity shall be borne exclusively by the State Treasurer. Provides that on or before September 1, 2023 (instead of January 1, 2025), and annually thereafter, the Board shall publish its guidelines for voting proxy ballots and a detailed report on its website describing how the Board is considering sustainability factors. Makes other changes. Effective immediately (instead of January 1, 2024).
Spectrum: Partisan Bill (Democrat 12-0)
Status: (Passed) 2023-08-07 - Public Act . . . . . . . . . 103-0468 [SB2152 Detail]
Download: Illinois-2023-SB2152-Introduced.html
Bill Title: Reinserts the provisions of the bill as amended by Senate Amendment No. 2 with the following changes. Provides that the State Treasurer, upon the affirmative vote of three-fifths of the Board (instead of upon the request of the Board), shall manage the domestic and international proxy voting activity for shares held directly by the System or Investment Board and execute required ballots on behalf of the System or Investment Board. Provides that the Board's consent may be revoked at any time upon the affirmative vote of a majority of the Board. Requires the State Treasurer to provide access to communications with its third-party proxy voting service, if any, used in preparing the comprehensive proxy voting reports requested by the Board. Authorizes the Board to provide the State Treasurer with guidance for proxy voting, which, if provided, the State Treasurer shall consider when voting. Provides that in order to facilitate the State Treasurer's proxy voting activities and before the State Treasurer begins proxy voting activities, the State Treasurer and the Board shall enter into an intergovernmental agreement concerning costs, proxy voting guidance, reports and other documents, and other issues. Removes language providing that all costs associated with the State Treasurer's management of proxy voting activity shall be borne exclusively by the State Treasurer. Provides that on or before September 1, 2023 (instead of January 1, 2025), and annually thereafter, the Board shall publish its guidelines for voting proxy ballots and a detailed report on its website describing how the Board is considering sustainability factors. Makes other changes. Effective immediately (instead of January 1, 2024).
Spectrum: Partisan Bill (Democrat 12-0)
Status: (Passed) 2023-08-07 - Public Act . . . . . . . . . 103-0468 [SB2152 Detail]
Download: Illinois-2023-SB2152-Introduced.html
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| 1 | AN ACT concerning public employee benefits.
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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 Illinois Pension Code is amended by adding | |||||||||||||||||||||||
| 5 | Sections 15-177.5, 16-188, and 22A-113.4 as follows:
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| 6 | (40 ILCS 5/15-177.5 new) | |||||||||||||||||||||||
| 7 | Sec. 15-177.5. Proxy voting. Notwithstanding the Board's | |||||||||||||||||||||||
| 8 | investment authority, the State Treasurer shall manage the | |||||||||||||||||||||||
| 9 | System's domestic and international proxy voting activity and | |||||||||||||||||||||||
| 10 | execute required ballots on behalf of the System. The State | |||||||||||||||||||||||
| 11 | Treasurer shall provide the Board with comprehensive proxy | |||||||||||||||||||||||
| 12 | voting reports on a quarterly basis and as requested by the | |||||||||||||||||||||||
| 13 | Board. | |||||||||||||||||||||||
| 14 | On or before December 31, 2024, and annually thereafter, | |||||||||||||||||||||||
| 15 | the Board shall publish a report on its website describing how | |||||||||||||||||||||||
| 16 | the Board is considering sustainability factors as defined in | |||||||||||||||||||||||
| 17 | the Illinois Sustainable Investing Act. The report shall: | |||||||||||||||||||||||
| 18 | (1) describe the Board's strategy as it relates to the | |||||||||||||||||||||||
| 19 | consideration of sustainable investment factors; | |||||||||||||||||||||||
| 20 | (2) outline the process for regular assessment across | |||||||||||||||||||||||
| 21 | the total portfolio of potential effects from systemic and | |||||||||||||||||||||||
| 22 | regulatory risks and opportunities, including, but not | |||||||||||||||||||||||
| 23 | limited to, environmental factors on the assets of the | |||||||||||||||||||||||
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| 1 | plan; | ||||||
| 2 | (3) disclose how each investment manager used | ||||||
| 3 | integrates sustainability factors into the investment | ||||||
| 4 | manager's decision-making; and | ||||||
| 5 | (4) include any other information the Board deems | ||||||
| 6 | necessary.
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| 7 | (40 ILCS 5/16-188 new) | ||||||
| 8 | Sec. 16-188. Proxy voting. Notwithstanding the Board's | ||||||
| 9 | investment authority, the State Treasurer shall manage the | ||||||
| 10 | System's domestic and international proxy voting activity and | ||||||
| 11 | execute required ballots on behalf of the System. The State | ||||||
| 12 | Treasurer shall provide the Board with comprehensive proxy | ||||||
| 13 | voting reports on a quarterly basis and as requested by the | ||||||
| 14 | Board. | ||||||
| 15 | On or before December 31, 2024, and annually thereafter, | ||||||
| 16 | the Board shall publish a report on its website describing how | ||||||
| 17 | the Board is considering sustainability factors as defined in | ||||||
| 18 | the Illinois Sustainable Investing Act. The report shall: | ||||||
| 19 | (1) describe the Board's strategy as it relates to the | ||||||
| 20 | consideration of sustainable investment factors; | ||||||
| 21 | (2) outline the process for regular assessment across | ||||||
| 22 | the total portfolio of potential effects from systemic and | ||||||
| 23 | regulatory risks and opportunities, including, but not | ||||||
| 24 | limited to, environmental factors on the assets of the | ||||||
| 25 | plan; | ||||||
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| 1 | (3) disclose how each investment manager used | ||||||
| 2 | integrates sustainability factors into the investment | ||||||
| 3 | manager's decision-making; and | ||||||
| 4 | (4) include any other information the Board deems | ||||||
| 5 | necessary.
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| 6 | (40 ILCS 5/22A-113.4 new) | ||||||
| 7 | Sec. 22A-113.4. Proxy voting. Notwithstanding the Board's | ||||||
| 8 | investment authority, the State Treasurer shall manage the | ||||||
| 9 | Board's domestic and international proxy voting activity and | ||||||
| 10 | execute required ballots on behalf of the Board. The State | ||||||
| 11 | Treasurer shall provide the Board with comprehensive proxy | ||||||
| 12 | voting reports on a quarterly basis and as requested. | ||||||
| 13 | On or before December 31, 2024, and annually thereafter, | ||||||
| 14 | the Board shall publish a report on its website describing how | ||||||
| 15 | the Board is considering sustainability factors as defined in | ||||||
| 16 | the Illinois Sustainable Investing Act. The report shall: | ||||||
| 17 | (1) describe the Board's strategy as it relates to the | ||||||
| 18 | consideration of sustainable investment factors; | ||||||
| 19 | (2) outline the process for regular assessment across | ||||||
| 20 | the total portfolio of potential effects from systemic and | ||||||
| 21 | regulatory risks and opportunities, including, but not | ||||||
| 22 | limited to, environmental factors on the assets of the | ||||||
| 23 | plan; | ||||||
| 24 | (3) disclose how each investment manager used | ||||||
| 25 | integrates sustainability factors into the investment | ||||||
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| 1 | manager's decision-making; and | ||||||
| 2 | (4) include any other information the Board deems | ||||||
| 3 | necessary.
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| 4 | Section 99. Effective date. This Act takes effect January | ||||||
| 5 | 1, 2024.
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