104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB1155
 
Introduced 1/9/2025, by Rep. Will Guzzardi
 
SYNOPSIS AS INTRODUCED:
 
110 ILCS 305/195 new
    Amends the University of Illinois Act. Provides that the Board of Trustees shall direct the University of Illinois System, in addition to the Office of Investments and external investment managers, to not invest the assets of any endowment fund in the stocks, securities, or other obligations of any fossil fuel company or any subsidiary, affiliate, or parent of any fossil fuel company. Provides that this does not preclude the de minimis exposure of any funds held by the endowment fund to the stocks, securities, or other obligations of any fossil fuel company or any subsidiary, affiliate, or parent of any fossil fuel company. Requires the Board of Trustees to direct the University of Illinois System, in addition to the Office of Investments and external investment managers, to not invest in any prime commercial paper or corporate bonds issued by a fossil fuel company. Provides that, beginning one year after the effective date of the amendatory Act, the Board of Trustees, subject to an affirmative determination of prudence and in accordance with sound investment criteria and consistent with its fiduciary obligations, shall direct the University of Illinois System to ensure that any endowment fund does not have any indirect investments; defines "indirect investment". Provides that the Board of Trustees shall direct the University of Illinois System, in addition to the Office of Investments and external investment managers, to adopt updates to its written investment policies, if necessary, to meet the requirements of these provisions and publish a copy of those updated policies within 90 days after the adoption of the updated policies. Effective immediately.


LRB104 03849 LNS 13873 b

 
 
A BILL FOR
 
HB1155LRB104 03849 LNS 13873 b

1    AN ACT concerning education.
 
2    Be it enacted by the People of the State of Illinois, 
3represented in the General Assembly:
 
4    Section 5. Findings. The General Assembly finds that: 
5        (1) climate change poses a serious threat to the 
6    health, wealth, and safety of the people of this State; 
7    and
8        (2) continuing to invest in fossil fuel companies is 
9    contrary to the mission of the University of Illinois 
10    System and as such, the University of Illinois should not 
11    invest in these industries through its endowments.
 
12    Section 10. The University of Illinois Act is amended by 
13adding Section 195 as follows:
 
14    (110 ILCS 305/195 new)
15    Sec. 195. University of Illinois System; fossil fuel 
16company divestment.
17    (a) In this Section:
18    "Fossil fuel company" means any company that:
19        (1) is among the 200 publicly traded companies with 
20    the largest fossil fuel reserves in the world;
21        (2) is among the 30 largest public company owners in 
22    the world of coal-fired power plants;
 
 
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1        (3) has as its core business the construction or 
2    operation of fossil fuel infrastructure;
3        (4) has as its core business the exploration, 
4    extraction, refining, processing, or distribution of 
5    fossil fuels; or
6        (5) receives more than 20% of its gross revenue from 
7    companies that are described in paragraph (1), (2), (3), 
8    or (4) of this definition.
9    "Indirect investment" means a holding in an investment 
10vehicle that directly or indirectly owns a more than 1% 
11interest in one or more individual fossil fuel companies.
12    (b) The Board of Trustees shall direct the University of 
13Illinois System, in addition to the Office of Investments and 
14external investment managers, to not invest the assets of any 
15endowment fund in the stocks, securities, or other obligations 
16of any fossil fuel company or any subsidiary, affiliate, or 
17parent of any fossil fuel company. Nothing in this subsection 
18(b) precludes the de minimis exposure of any funds held by the 
19endowment fund to the stocks, securities, or other obligations 
20of any fossil fuel company or any subsidiary, affiliate, or 
21parent of any fossil fuel company.
22    The Board of Trustees shall direct the University of 
23Illinois System, in addition to the Office of Investments and 
24external investment managers, to not invest in any prime 
25commercial paper or corporate bonds issued by a fossil fuel 
26company. 
 
 
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1    (c) Beginning one year after the effective date of this 
2amendatory Act of the 104th General Assembly, the Board of 
3Trustees, subject to an affirmative determination of prudence 
4and in accordance with sound investment criteria and 
5consistent with its fiduciary obligations, shall direct the 
6University of Illinois System to ensure that any endowment 
7fund does not have any indirect investments.
8    (d) The Board of Trustees shall direct the University of 
9Illinois System, in addition to the Office of Investments and 
10external investment managers, to adopt updates to its written 
11investment policies, if necessary, to meet the requirements of 
12this Section and publish a copy of those updated policies 
13within 90 days after the adoption of the updated policies.
 
14    Section 99. Effective date. This Act takes effect upon 
15becoming law.