Full Text of HB1293 102nd General Assembly
HB1293ham001 102ND GENERAL ASSEMBLY | Rep. Lindsey LaPointe Filed: 3/17/2022
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| 1 | | AMENDMENT TO HOUSE BILL 1293
| 2 | | AMENDMENT NO. ______. Amend House Bill 1293 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Article 1. | 5 | | Section 1-1. Findings. | 6 | | (a) The General Assembly finds that: | 7 | | (1) Russia has launched an unprecedented military | 8 | | assault on Ukraine that has already left many dead, and | 9 | | the fighting in Ukraine appears to be some of the worst | 10 | | conventional warfare Europe has seen since World War II | 11 | | and the conflicts in the Balkans in the 1990s; | 12 | | (2) Ukrainian officials believe Russia's plan is to | 13 | | overthrow the Ukrainian government and install a | 14 | | pro-Russian government; | 15 | | (3) Western leaders have been united in their swift | 16 | | and strong condemnation of Russia's military action; |
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| 1 | | (4) President Biden has stated that Russian President | 2 | | Putin had "committed an assault on the very principles | 3 | | that uphold the global peace", and the United States has, | 4 | | as a result, taken steps to impose harsh, new sanctions | 5 | | that are intended to punish President Putin for his | 6 | | actions; | 7 | | (5) Secretary of State Blinken has indicated that | 8 | | there are credible reports that Russia has engaged in | 9 | | actions during its military assault on Ukraine that | 10 | | constitute war crimes under international law; | 11 | | (6) Russia has used, during its military assault on | 12 | | Ukraine, weapons that have been banned by many countries, | 13 | | including cluster munitions; | 14 | | (7) Russia has conducted direct attacks on major | 15 | | nuclear power facilities in Ukraine, which could lead to | 16 | | disaster and the spread of radioactive contamination | 17 | | across Ukraine and Europe; | 18 | | (8) the United Nations has estimated that more than | 19 | | 2,800,000 Ukrainians have already been displaced as a | 20 | | result of the Russian invasion; | 21 | | (9) the international community is making preparations | 22 | | to meet the humanitarian needs of those refugees who are | 23 | | displaced by this conflict; | 24 | | (10) Central Europe is welcoming Ukrainians, but the | 25 | | countries in that region are not currently equipped to | 26 | | handle the volume of refugees that are anticipated to |
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| 1 | | arrive at their borders in the coming weeks, and European | 2 | | and U.S. leadership must help build that capacity; | 3 | | (11) Illinois is a welcoming state to refugees and | 4 | | immigrants and home to a robust community of Ukrainian | 5 | | immigrants and Ukrainian descendants, many of whom live in | 6 | | Chicago's Ukrainian Village neighborhood; | 7 | | (12) Russia's interference, in 2016, with the United | 8 | | States presidential election and the United Kingdom's | 9 | | referendum on membership in the European Union reflects | 10 | | its disregard for national sovereignty; and | 11 | | (13) Russia's ongoing attempts to influence the United | 12 | | States electorate are a threat to national security. | 13 | | (b) For these reasons, the General Assembly urges: | 14 | | (1) the pension funds and retirement systems | 15 | | established under the Illinois Pension Code to divest | 16 | | their holdings in any companies that are domiciled in | 17 | | Russia or Belarus and that are on the list of restricted | 18 | | companies developed by the Illinois Investment Policy | 19 | | Board; | 20 | | (2) the cities of Bloomington and Normal to renounce | 21 | | their sister-city relationship with Vladimir, Russia; the | 22 | | City of Chicago to renounce its sister-city relationship | 23 | | with Moscow, Russia; the City of Dixon to renounce its | 24 | | sister-city relationship with Dikson, Russia; and all | 25 | | other municipalities to renounce any sister-city | 26 | | relationships they may have with cities in Russia; and |
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| 1 | | (3) the United States Department of State to resettle | 2 | | Ukrainian refugees in Illinois.
| 3 | | Article 5. | 4 | | Section 5-1. Short title. This Article may be cited as the | 5 | | Money Laundering in Real Estate Task Force Act. References in | 6 | | this Article to "this Act" mean this Article. | 7 | | Section 5-3. Findings. The General Assembly finds and | 8 | | declares the following:
| 9 | | (1) the Financial Crimes Enforcement Network found, in | 10 | | 2017, that 30% of all high-end real estate purchases in | 11 | | major metropolitan areas involved beneficial owners or | 12 | | purchasers who were the subject of previous suspicious | 13 | | activity reports; | 14 | | (2) the United States, unlike Canada and several other | 15 | | jurisdictions, does not require real estate agents and | 16 | | brokers to file suspicious transaction reports; | 17 | | (3) the lack of beneficial ownership transparency is | 18 | | an important factor in facilitating money laundering in | 19 | | real estate; and | 20 | | (4) money laundering in real estate has negative | 21 | | consequences for local communities, including the | 22 | | dislocation of residents from and within major | 23 | | metropolitan areas. |
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| 1 | | Section 5-5. Money Laundering in Real Estate Task Force.
| 2 | | (a) The Money Laundering in Real Estate Task Force is | 3 | | created. The Task Force shall consist of the following | 4 | | members:
| 5 | | (1) 4 members appointed one each by the Speaker of the | 6 | | House of Representatives, the Minority Leader of the House | 7 | | of Representatives, the President of the Senate, and the | 8 | | Minority Leader of the Senate;
| 9 | | (2) the Secretary of Financial and Professional | 10 | | Regulation or the Secretary's designee;
| 11 | | (3) the Director of Revenue or the Director's | 12 | | designee; | 13 | | (4) 2 members of the faculty of an institution of | 14 | | higher education in the State with subject matter | 15 | | expertise regarding money laundering in real estate, | 16 | | appointed by the Governor;
| 17 | | (5) one expert on real estate tax law, appointed by | 18 | | the Governor; | 19 | | (6) one representative of a statewide banking | 20 | | association representing banks of all asset sizes, | 21 | | appointed by the Governor; and | 22 | | (7) one representative of a statewide banking | 23 | | association exclusively representing banks with assets | 24 | | below $20,000,000,000, appointed by the Governor. | 25 | | (b) Initial appointments to the Task Force shall be made |
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| 1 | | as soon as practicable after the effective date of this Act. | 2 | | The Task Force shall hold its first meeting within a | 3 | | reasonable period of time after its members have been | 4 | | appointed and shall convene regularly to carry out its duties | 5 | | and submit the reports required under this Act. At its first | 6 | | meeting, the Task Force shall elect its chairperson and any | 7 | | other officers from among its members. | 8 | | (c) The Department of Financial and Professional | 9 | | Regulation and the Department of Revenue shall provide | 10 | | administrative and other support to the Task Force. | 11 | | Section 5-10. Duties. The Task Force shall: | 12 | | (1) identify vulnerabilities in the real estate sector | 13 | | that facilitate money laundering; | 14 | | (2) provide guidance on behaviors and other indicators | 15 | | that can help actors in the real estate sector identify | 16 | | suspicious transactions and report them to the proper | 17 | | authorities; | 18 | | (3) explore the means by which illicit money is | 19 | | channeled into the real estate sector and integrated into | 20 | | the legal economy, including, but not limited to, cash | 21 | | purchases, complex loans, monetary instruments, mortgages, | 22 | | investment institutions, fraudulent appraisals, and | 23 | | anonymous corporate entities; | 24 | | (4) assess the exposure of the residential, | 25 | | industrial, and commercial real estate sectors in Illinois |
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| 1 | | to illicit Russian money, including, but not limited to, | 2 | | luxury real estate in Chicago and nonresidential real | 3 | | estate in downstate communities; and | 4 | | (5) assess real estate due diligence and reporting | 5 | | practices, requirements, and laws in Illinois and | 6 | | recommend changes needed to eliminate systemic | 7 | | vulnerabilities that facilitate foreign money laundering. | 8 | | Section 5-15. Reports. The Task Force shall submit a | 9 | | report to the Governor and the General Assembly not later than | 10 | | 12 months after the effective date of this Act. The report | 11 | | shall include the Task Force's findings and shall summarize | 12 | | the actions the Task Force has taken and those it intends to | 13 | | take in response to its obligations under the Act. After it | 14 | | submits its initial report, the Task Force shall periodically | 15 | | submit reports to the Governor and the General Assembly as the | 16 | | chairperson of the Task Force deems necessary to apprise those | 17 | | officials of any additional findings made or actions taken by | 18 | | the Task Force. The obligation of the Task Force to submit | 19 | | periodic reports shall continue for the duration of the Task | 20 | | Force. | 21 | | Section 5-20. Dissolution of Task Force; repeal. The Task | 22 | | Force is dissolved on January 1, 2025. This Act is repealed on | 23 | | January 1, 2026. |
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| 1 | | Article 10. | 2 | | Section 10-3. The Illinois Administrative Procedure Act is | 3 | | amended by adding Section 5-45.21 as follows: | 4 | | (5 ILCS 100/5-45.21 new) | 5 | | Sec. 5-45.21. Emergency rulemaking; Ukrainian Refugee | 6 | | Resettlement Program. To provide for the expeditious and | 7 | | timely implementation of Section 1-75 of the Department of | 8 | | Human Services Act, emergency rules implementing the Ukrainian | 9 | | Refugee Resettlement Program under Section 1-75 of the | 10 | | Department of Human Services Act may be adopted in accordance | 11 | | with Section 5-45 by the Department of Human Services. The | 12 | | adoption of emergency rules authorized by Section 5-45 and | 13 | | this Section is deemed to be necessary for the public | 14 | | interest, safety, and welfare. | 15 | | This Section is repealed one year after the effective date | 16 | | of this amendatory Act of the 102nd General Assembly. | 17 | | Section 10-5. The Deposit of State Moneys Act is amended | 18 | | by adding Section 22.7 as follows: | 19 | | (15 ILCS 520/22.7 new) | 20 | | Sec. 22.7. Russian or Belarusian investments prohibited. | 21 | | Notwithstanding any provision of law to the contrary, the | 22 | | State Treasurer shall not invest State money in Russian or |
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| 1 | | Belarusian sovereign debt, Russian or Belarusian | 2 | | government-backed securities, any investment instrument issued | 3 | | by an entity that is domiciled or has its principal place of | 4 | | business in Russia or Belarus, or any investment instrument | 5 | | issued by a company that is subject to Russian Harmful Foreign | 6 | | Activities Sanctions, as that term is defined under Section | 7 | | 1-110.16 of the Illinois Pension Code, and shall not invest or | 8 | | deposit State money in any bank that is domiciled or has its | 9 | | principal place of business in Russia or Belarus or in any | 10 | | other financial institution that is domiciled or has its | 11 | | principal place of business in Russia or Belarus or that is | 12 | | subject to Russian Harmful Foreign Activities Sanctions. | 13 | | Section 10-10. The Department of Human Services Act is | 14 | | amended by adding Section 1-75 as follows: | 15 | | (20 ILCS 1305/1-75 new) | 16 | | Sec. 1-75. Ukrainian Refugee Resettlement Program. Subject | 17 | | to appropriation, the Department shall establish and | 18 | | administer the Ukrainian Refugee Resettlement Program to | 19 | | provide resettlement services, including, but not limited to, | 20 | | health care services, mental health services, and English | 21 | | language services, to Ukrainian nationals who have been | 22 | | granted temporary protected status by the United States | 23 | | Department of State or who have refugee status under Section | 24 | | 207 of the Immigration and Nationality Act. The Ukrainian |
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| 1 | | Refugee Resettlement Fund is hereby created as a special fund | 2 | | in the State treasury. The Department may accept gifts, | 3 | | grants, donations, or other revenues or transfers for deposit | 4 | | into the Ukrainian Refugee Resettlement Fund. Moneys in the | 5 | | fund shall be used by the Department for the purpose of | 6 | | implementing and administering the program established under | 7 | | this Section. The Department may adopt rules, including | 8 | | emergency rules, to implement this Section, including, but not | 9 | | limited to, rules necessary to ensure the provision of health | 10 | | care services, mental health services, and English language | 11 | | services to those Ukrainian nationals who are eligible to | 12 | | participate in the program established under this Section. | 13 | | Section 10-15. The Illinois State Police Law of the
Civil | 14 | | Administrative Code of Illinois is amended by changing Section | 15 | | 2605-35 as follows:
| 16 | | (20 ILCS 2605/2605-35) (was 20 ILCS 2605/55a-3)
| 17 | | Sec. 2605-35. Division of Criminal
Investigation. | 18 | | (a) The Division of Criminal
Investigation shall exercise
| 19 | | the following functions and those in Section 2605-30:
| 20 | | (1) Exercise the rights, powers, and duties vested by
| 21 | | law in the Illinois State Police by the Illinois Horse | 22 | | Racing Act of 1975, including those set forth in Section | 23 | | 2605-215.
| 24 | | (2) Investigate the origins, activities, personnel, |
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| 1 | | and
incidents of crime and enforce the criminal laws of | 2 | | this State related thereto.
| 3 | | (3) Enforce all laws regulating the production, sale,
| 4 | | prescribing, manufacturing, administering, transporting, | 5 | | having in possession,
dispensing, delivering, | 6 | | distributing, or use of controlled substances
and | 7 | | cannabis.
| 8 | | (4) Cooperate with the police of cities, villages, and
| 9 | | incorporated towns and with the police officers of any | 10 | | county in
enforcing the laws of the State and in making | 11 | | arrests and recovering
property.
| 12 | | (5) Apprehend and deliver up any person charged in | 13 | | this State or any other
state with treason or a felony or | 14 | | other crime who has fled from justice and is
found in this | 15 | | State.
| 16 | | (6) Investigate recipients and providers under the | 17 | | Illinois Public Aid
Code and any personnel involved in the | 18 | | administration of the Code who are
suspected of any | 19 | | violation of the Code pertaining to fraud in the
| 20 | | administration, receipt, or provision of assistance and | 21 | | pertaining to any
violation of criminal law; and exercise | 22 | | the functions required under Section
2605-220 in the | 23 | | conduct of those investigations.
| 24 | | (7) Conduct other investigations as provided by law.
| 25 | | (8) Investigate public corruption. .
| 26 | | (9) Exercise other duties that may be assigned by the |
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| 1 | | Director in order to
fulfill the responsibilities and | 2 | | achieve the purposes of the Illinois State Police, which | 3 | | may include the coordination of gang, terrorist, and | 4 | | organized crime prevention, control activities, and | 5 | | assisting local law enforcement in their crime control | 6 | | activities.
| 7 | | (10) Conduct investigations (and cooperate with | 8 | | federal law enforcement agencies in the investigation) of | 9 | | any property-related crimes, such as money laundering, | 10 | | involving individuals or entities listed on the sanctions | 11 | | list maintained by the U.S. Department of Treasury's | 12 | | Office of Foreign Asset Control. | 13 | | (b) (Blank).
| 14 | | (Source: P.A. 102-538, eff. 8-20-21; revised 12-2-21.)
| 15 | | Section 10-20. The State Finance Act is amended by adding | 16 | | Section 5.970 as follows: | 17 | | (30 ILCS 105/5.970 new) | 18 | | Sec. 5.970. The Ukrainian Refugee Resettlement Fund. | 19 | | Section 10-25. The Public Funds Investment Act is amended | 20 | | by adding Section 2.3 as follows: | 21 | | (30 ILCS 235/2.3 new) | 22 | | Sec. 2.3. Russian or Belarusian investments prohibited. |
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| 1 | | Notwithstanding any provision of law to the contrary, the | 2 | | State Treasurer shall not invest State money in Russian or | 3 | | Belarusian sovereign debt, Russian or Belarusian | 4 | | government-backed securities, any investment instrument issued | 5 | | by an entity that is domiciled or has its principal place of | 6 | | business in Russia or Belarus, or any investment instrument | 7 | | issued by a company that is subject to Russian Harmful Foreign | 8 | | Activities Sanctions, as that term is defined under Section | 9 | | 1-110.16 of the Illinois Pension Code, and shall not invest or | 10 | | deposit State money in any bank that is domiciled or has its | 11 | | principal place of business in Russia or Belarus or in any | 12 | | other financial institution that is domiciled or has its | 13 | | principal place of business in Russia or Belarus or that is | 14 | | subject to Russian Harmful Foreign Activities Sanctions. | 15 | | Section 10-30. The Illinois Pension Code is amended by | 16 | | adding Section 1-110.14 and by changing Section 1-110.16 as | 17 | | follows: | 18 | | (40 ILCS 5/1-110.14 new) | 19 | | Sec. 1-110.14. Transactions prohibited by retirement | 20 | | systems; Russia; Belarus. | 21 | | (a) Beginning on the effective date of this amendatory Act | 22 | | of the 102nd General Assembly, no retirement system, as that | 23 | | term is defined in Section 1-110.16 of this Code, shall invest | 24 | | moneys in Russian or Belarusian sovereign debt, Russian or |
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| 1 | | 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 that is | 6 | | included in the Illinois
Investment Policy Board's list of | 7 | | restricted companies under
Section 1-110.16 of the Illinois | 8 | | Pension Code, and no retirement system shall invest or deposit | 9 | | State moneys in any bank that is domiciled or has its principal | 10 | | place of business in Russia or Belarus or in any other | 11 | | financial institution that is domiciled or has its principal | 12 | | place of business in Russia or Belarus or that is subject to | 13 | | Russian Harmful Foreign Activities Sanctions and that is | 14 | | included in the Illinois Investment Policy Board's list of | 15 | | restricted companies under Section 1-110.16 of the Illinois | 16 | | Pension Code. | 17 | | (b) As soon as practicable after the effective date of | 18 | | this amendatory Act of the 102nd General Assembly, but not | 19 | | later than 9 months after the effective date of this | 20 | | amendatory Act of the 102nd General Assembly, each retirement | 21 | | system, as that term is defined in Section 1-110.16 of this | 22 | | Code, shall instruct its investment advisors to sell, redeem, | 23 | | divest, or withdraw all direct holdings of Russian or | 24 | | Belarusian sovereign debt, Russian or Belarusian | 25 | | government-backed securities, investment instruments issued by | 26 | | an entity that is domiciled or has its principal place of |
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| 1 | | business in Russia or Belarus, investment instruments
issued | 2 | | by a company that is subject to Russian Harmful Foreign
| 3 | | Activities Sanctions and that is included in the Illinois
| 4 | | Investment Policy Board's list of restricted companies under
| 5 | | Section 1-110.16 of the Illinois Pension Code, investments or | 6 | | deposits in any bank that is domiciled or has its principal | 7 | | place of business in Russia or Belarus, and investments or | 8 | | deposits in any other financial institution that is domiciled | 9 | | or has its principal place of business in Russia or Belarus or | 10 | | that is subject to Russian Harmful Foreign Activities | 11 | | Sanctions and that is included in the Illinois Investment | 12 | | Policy Board's list of restricted companies under Section | 13 | | 1-110.16 of the Illinois Pension Code from the retirement | 14 | | system's assets under management in an orderly and fiduciarily | 15 | | responsible manner. | 16 | | (c) The prohibition in this Section does not apply to | 17 | | moneys held in mutual funds, index funds, or other indirect | 18 | | holdings in commingled funds or accounts. | 19 | | (40 ILCS 5/1-110.16) | 20 | | Sec. 1-110.16. Transactions prohibited by retirement | 21 | | systems; companies that boycott Israel, for-profit companies | 22 | | that contract to shelter migrant children, Iran-restricted | 23 | | companies, Sudan-restricted companies, and expatriated | 24 | | entities , companies domiciled or that have their principal | 25 | | place of business in Russia or Belarus, and companies subject |
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| 1 | | to Russian Harmful Foreign Activities Sanctions . | 2 | | (a) As used in this Section: | 3 | | "Boycott Israel" means engaging in actions that are | 4 | | politically motivated and are intended to penalize, | 5 | | inflict economic harm on, or otherwise limit commercial | 6 | | relations with the State of Israel or companies based in | 7 | | the State of Israel or in territories controlled by the | 8 | | State of Israel. | 9 | | "Company" means any sole proprietorship, organization, | 10 | | association, corporation, partnership, joint venture, | 11 | | limited partnership, limited liability partnership, | 12 | | limited liability company, or other entity or business | 13 | | association, including all wholly owned subsidiaries, | 14 | | majority-owned subsidiaries, parent companies, or | 15 | | affiliates of those entities or business associations, | 16 | | that exist for the purpose of making profit. | 17 | | "Company subject to Russian Harmful Foreign Activities | 18 | | Sanctions" means a company that is subject to sanctions | 19 | | under the Russian Harmful Foreign Activities Sanctions | 20 | | Regulations (31 CFR Part 587), any Presidential Executive | 21 | | Order imposing sanctions against Russia, or any federal | 22 | | directive issued pursuant to any such Executive Order. | 23 | | "Contract to shelter migrant children" means entering | 24 | | into a contract with the federal government to shelter | 25 | | migrant children under the federal Unaccompanied Alien | 26 | | Children Program or a substantially similar federal |
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| 1 | | program. | 2 | | "Illinois Investment Policy Board" means the board | 3 | | established under subsection (b) of this Section. | 4 | | "Direct holdings" in a company means all publicly | 5 | | traded securities of that company that are held directly | 6 | | by the retirement system in an actively managed account or | 7 | | fund in which the retirement system owns all shares or | 8 | | interests. | 9 | | "Expatriated entity" has the meaning ascribed to it in | 10 | | Section 1-15.120 of the Illinois Procurement Code. | 11 | | "Illinois Investment Policy Board" means the board | 12 | | established under subsection (b) of this Section. | 13 | | "Indirect holdings" in a company means all securities | 14 | | of that company that are held in an account or fund, such | 15 | | as a mutual fund, managed by one or more persons not | 16 | | employed by the retirement system, in which the retirement | 17 | | system owns shares or interests together with other | 18 | | investors not subject to the provisions of this Section or | 19 | | that are held in an index fund. | 20 | | "Iran-restricted company" means a company that meets | 21 | | the qualifications under Section 1-110.15 of this Code. | 22 | | "Private market fund" means any private equity fund, | 23 | | private equity funds of funds, venture capital fund, hedge | 24 | | fund, hedge fund of funds, real estate fund, or other | 25 | | investment vehicle that is not publicly traded. | 26 | | "Restricted companies" means companies that boycott |
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| 1 | | Israel, for-profit companies that contract to shelter | 2 | | migrant children, Iran-restricted companies, | 3 | | Sudan-restricted companies, and expatriated entities , | 4 | | companies domiciled or that have their principal place of | 5 | | business in Russia or Belarus, and companies subject to | 6 | | Russian Harmful Foreign Activities Sanctions . | 7 | | "Retirement system" means a retirement system | 8 | | established under Article 2, 14, 15, 16, or 18 of this Code | 9 | | or the Illinois State Board of Investment. | 10 | | "Sudan-restricted company" means a company that meets | 11 | | the qualifications under Section 1-110.6 of this Code. | 12 | | (b) There shall be established an Illinois Investment | 13 | | Policy Board. The Illinois Investment Policy Board shall | 14 | | consist of 7 members. Each board of a pension fund or | 15 | | investment board created under Article 15, 16, or 22A of this | 16 | | Code shall appoint one member, and the Governor shall appoint | 17 | | 4 members. | 18 | | (c) Notwithstanding any provision of law to the contrary, | 19 | | beginning January 1, 2016, Sections 1-110.15 110.15 and | 20 | | 1-110.6 of this Code shall be administered in accordance with | 21 | | this Section. | 22 | | (d) By April 1, 2016, the Illinois Investment Policy Board | 23 | | shall make its best efforts to identify all Iran-restricted | 24 | | companies, Sudan-restricted companies, and companies that | 25 | | boycott Israel and assemble those identified companies into a | 26 | | list of restricted companies, to be distributed to each |
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| 1 | | retirement system. | 2 | | These efforts shall include the following, as appropriate | 3 | | in the Illinois Investment Policy Board's judgment: | 4 | | (1) reviewing and relying on publicly available | 5 | | information regarding Iran-restricted companies, | 6 | | Sudan-restricted companies, and companies that boycott | 7 | | Israel, including information provided by nonprofit | 8 | | organizations, research firms, and government entities; | 9 | | (2) contacting asset managers contracted by the | 10 | | retirement systems that invest in Iran-restricted | 11 | | companies, Sudan-restricted companies, and companies that | 12 | | boycott Israel; | 13 | | (3) contacting other institutional investors that have | 14 | | divested from or engaged with Iran-restricted companies, | 15 | | Sudan-restricted companies, and companies that boycott | 16 | | Israel; and | 17 | | (4) retaining an independent research firm to identify | 18 | | Iran-restricted companies, Sudan-restricted companies, | 19 | | and companies that boycott Israel. | 20 | | The Illinois Investment Policy Board shall review the list | 21 | | of restricted companies on a quarterly basis based on evolving | 22 | | information from, among other sources, those listed in this | 23 | | subsection (d) and distribute any updates to the list of | 24 | | restricted companies to the retirement systems and the State | 25 | | Treasurer. | 26 | | By April 1, 2018, the Illinois Investment Policy Board |
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| 1 | | shall make its best efforts to identify all expatriated | 2 | | entities and include those companies in the list of restricted | 3 | | companies distributed to each retirement system and the State | 4 | | Treasurer. These efforts shall include the following, as | 5 | | appropriate in the Illinois Investment Policy Board's | 6 | | judgment: | 7 | | (1) reviewing and relying on publicly available | 8 | | information regarding expatriated entities, including | 9 | | information provided by nonprofit organizations, research | 10 | | firms, and government entities; | 11 | | (2) contacting asset managers contracted by the | 12 | | retirement systems that invest in expatriated entities; | 13 | | (3) contacting other institutional investors that have | 14 | | divested from or engaged with expatriated entities; and | 15 | | (4) retaining an independent research firm to identify | 16 | | expatriated entities. | 17 | | By July 1, 2022, the Illinois Investment Policy Board | 18 | | shall make its best efforts to identify all for-profit | 19 | | companies that contract to shelter migrant children and | 20 | | include those companies in the list of restricted companies | 21 | | distributed to each retirement system. These efforts shall | 22 | | include the following, as appropriate in the Illinois | 23 | | Investment Policy Board's judgment: | 24 | | (1) reviewing and relying on publicly available | 25 | | information regarding for-profit companies that contract | 26 | | to shelter migrant children, including information |
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| 1 | | provided by nonprofit organizations, research firms, and | 2 | | government entities; | 3 | | (2) contacting asset managers contracted by the | 4 | | retirement systems that invest in for-profit companies | 5 | | that contract to shelter migrant children; | 6 | | (3) contacting other institutional investors that have | 7 | | divested from or engaged with for-profit companies that | 8 | | contract to shelter migrant children; and | 9 | | (4) retaining an independent research firm to identify | 10 | | for-profit companies that contract to shelter migrant | 11 | | children. | 12 | | No later than 6 months after the effective date of this | 13 | | amendatory Act of the 102nd General Assembly, the Illinois | 14 | | Investment Policy Board shall make its best efforts to | 15 | | identify all companies domiciled or that have their principal | 16 | | place of business in Russia or Belarus and companies subject | 17 | | to Russian Harmful Foreign Activities Sanctions and include | 18 | | those companies in the list of restricted companies | 19 | | distributed to each retirement system. These efforts shall | 20 | | include the following, as appropriate in the Illinois | 21 | | Investment Policy Board's judgment: | 22 | | (1) reviewing and relying on publicly available
| 23 | | information regarding companies domiciled or that have | 24 | | their principal place of business in Russia or Belarus and | 25 | | companies subject to Russian Harmful Foreign Activities | 26 | | Sanctions, including information provided by nonprofit |
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| 1 | | organizations, research firms, and government entities; | 2 | | (2) contacting asset managers contracted by the
| 3 | | retirement systems that invest in companies domiciled or | 4 | | that have their principal place of business in Russia or | 5 | | Belarus and companies subject to Russian Harmful Foreign | 6 | | Activities Sanctions; | 7 | | (3) contacting other institutional investors that have | 8 | | divested from or engaged with companies domiciled or that | 9 | | have their principal place of business in Russia or | 10 | | Belarus and companies subject to Russian Harmful Foreign | 11 | | Activities Sanctions; and | 12 | | (4) retaining an independent research firm to
identify | 13 | | companies domiciled or that have their principal place of | 14 | | business in Russia or Belarus and companies subject to | 15 | | Russian Harmful Foreign Activities Sanctions. | 16 | | (e) The Illinois Investment Policy Board shall adhere to | 17 | | the following procedures for companies on the list of | 18 | | restricted companies: | 19 | | (1) For each company newly identified in subsection | 20 | | (d), the Illinois Investment Policy Board shall send a | 21 | | written notice informing the company of its status and | 22 | | that it may become subject to divestment or shareholder | 23 | | activism by the retirement systems. | 24 | | (2) If, following the Illinois Investment Policy | 25 | | Board's engagement pursuant to this subsection (e) with a | 26 | | restricted company, that company ceases activity that |
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| 1 | | designates the company to be an Iran-restricted company, a | 2 | | Sudan-restricted company, a company that boycotts Israel, | 3 | | an expatriated entity, or a for-profit company that | 4 | | contracts to shelter migrant children, the company shall | 5 | | be removed from the list of restricted companies and the | 6 | | provisions of this Section shall cease to apply to it | 7 | | unless it resumes such activities. | 8 | | (3) For a company domiciled or that has its principal | 9 | | place of business in Russia or Belarus, if, following the | 10 | | Illinois Investment Policy Board's engagement pursuant to | 11 | | this subsection (e), that company is no longer domiciled | 12 | | or has its principal place of business in Russia or | 13 | | Belarus, the company shall be removed from the list of | 14 | | restricted companies and the provisions of this Section | 15 | | shall cease to apply to it unless it becomes domiciled or | 16 | | has its principal place of business in Russia or Belarus. | 17 | | (4) For a company subject to Russian Harmful Foreign | 18 | | Activities Sanctions, if, following the Illinois | 19 | | Investment Policy Board's engagement pursuant to this | 20 | | subsection (e), that company is no longer subject to | 21 | | Russian Harmful Foreign Activities Sanctions, the company | 22 | | shall be removed from the list of restricted companies and | 23 | | the provisions of this Section shall cease to apply to it | 24 | | unless it becomes subject to Russian Harmful Foreign | 25 | | Activities Sanctions. | 26 | | (f) Except as provided in subsection (f-1) of this Section |
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| 1 | | the retirement system shall adhere to the following procedures | 2 | | for companies on the list of restricted companies: | 3 | | (1) The retirement system shall identify those | 4 | | companies on the list of restricted companies in which the | 5 | | retirement system owns direct holdings and indirect | 6 | | holdings. | 7 | | (2) The retirement system shall instruct its | 8 | | investment advisors to sell, redeem, divest, or withdraw | 9 | | all direct holdings of restricted companies from the | 10 | | retirement system's assets under management in an orderly | 11 | | and fiduciarily responsible manner within 12 months , or an | 12 | | earlier period of time if an earlier period of time is | 13 | | otherwise required by law, after the company's most recent | 14 | | appearance on the list of restricted companies. | 15 | | (3) The retirement system may not acquire securities | 16 | | of restricted companies. | 17 | | (4) The provisions of this subsection (f) do not apply | 18 | | to the retirement system's indirect holdings or private | 19 | | market funds. The Illinois Investment Policy Board shall | 20 | | submit letters to the managers of those investment funds | 21 | | containing restricted companies requesting that they | 22 | | consider removing the companies from the fund or create a | 23 | | similar actively managed fund having indirect holdings | 24 | | devoid of the companies. If the manager creates a similar | 25 | | fund, the retirement system shall replace all applicable | 26 | | investments with investments in the similar fund in an |
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| 1 | | expedited timeframe consistent with prudent investing | 2 | | standards. | 3 | | (f-1) The retirement system shall adhere to the following | 4 | | procedures for restricted companies that are expatriated | 5 | | entities or for-profit companies that contract to shelter | 6 | | migrant children: | 7 | | (1) To the extent that the retirement system believes | 8 | | that shareholder activism would be more impactful than | 9 | | divestment, the retirement system shall have the authority | 10 | | to engage with a restricted company prior to divesting. | 11 | | (2) Subject to any applicable State or Federal laws, | 12 | | methods of shareholder activism utilized by the retirement | 13 | | system may include, but are not limited to, bringing | 14 | | shareholder resolutions and proxy voting on shareholder | 15 | | resolutions. | 16 | | (3) The retirement system shall report on its | 17 | | shareholder activism and the outcome of such efforts to | 18 | | the Illinois Investment Policy Board by April 1 of each | 19 | | year. | 20 | | (4) If the engagement efforts of the retirement system | 21 | | are unsuccessful, then it shall adhere to the procedures | 22 | | under subsection (f) of this Section. | 23 | | (g) Upon request, and by April 1 of each year, each | 24 | | retirement system shall provide the Illinois Investment Policy | 25 | | Board with information regarding investments sold, redeemed, | 26 | | divested, or withdrawn in compliance with this Section. |
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| 1 | | (h) Notwithstanding any provision of this Section to the | 2 | | contrary, a retirement system may cease divesting from | 3 | | companies pursuant to subsection (f) if clear and convincing | 4 | | evidence shows that the value of investments in such companies | 5 | | becomes equal to or less than 0.5% of the market value of all | 6 | | assets under management by the retirement system. For any | 7 | | cessation of divestment authorized by this subsection (h), the | 8 | | retirement system shall provide a written notice to the | 9 | | Illinois Investment Policy Board in advance of the cessation | 10 | | of divestment, setting forth the reasons and justification, | 11 | | supported by clear and convincing evidence, for its decision | 12 | | to cease divestment under subsection (f). | 13 | | (i) The cost associated with the activities of the | 14 | | Illinois Investment Policy Board shall be borne by the boards | 15 | | of each pension fund or investment board created under Article | 16 | | 15, 16, or 22A of this Code. | 17 | | (j) With respect to actions taken in compliance with this | 18 | | Section, including all good-faith determinations regarding | 19 | | companies as required by this Section, the retirement system | 20 | | and Illinois Investment Policy Board are exempt from any | 21 | | conflicting statutory or common law obligations, including any | 22 | | fiduciary duties under this Article and any obligations with | 23 | | respect to choice of asset managers, investment funds, or | 24 | | investments for the retirement system's securities portfolios. | 25 | | (k) It is not the intent of the General Assembly in | 26 | | enacting this amendatory Act of the 99th General Assembly to |
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| 1 | | cause divestiture from any company based in the United States | 2 | | of America. The Illinois Investment Policy Board shall | 3 | | consider this intent when developing or reviewing the list of | 4 | | restricted companies. | 5 | | (l) If any provision of this amendatory Act of the 99th | 6 | | General Assembly or its application to any person or | 7 | | circumstance is held invalid, the invalidity of that provision | 8 | | or application does not affect other provisions or | 9 | | applications of this amendatory Act of the 99th General | 10 | | Assembly that can be given effect without the invalid | 11 | | provision or application.
| 12 | | If any provision of Public Act 100-551 or its application | 13 | | to any person or circumstance is held invalid, the invalidity | 14 | | of that provision or application does not affect other | 15 | | provisions or applications of Public Act 100-551 that can be | 16 | | given effect without the invalid provision or application. | 17 | | If any provision of Public Act 102-118 this amendatory Act | 18 | | of the 102nd General Assembly or its application to any person | 19 | | or circumstance is held invalid, the invalidity of that | 20 | | provision or application does not affect other provisions or | 21 | | applications of Public Act 102-118 this amendatory Act of the | 22 | | 102nd General Assembly that can be given effect without the | 23 | | invalid provision or application. | 24 | | If any provision of this amendatory Act of the 102nd | 25 | | General Assembly or its application to any person or | 26 | | circumstance is held invalid, the invalidity of that provision |
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| 1 | | or application does not affect other provisions or | 2 | | applications of this amendatory Act of the 102nd General | 3 | | Assembly that can be given effect without the invalid | 4 | | provision or application. | 5 | | (Source: P.A. 102-118, eff. 7-23-21.) | 6 | | Article 99. | 7 | | Section 99-97. Severability. The provisions of this Act | 8 | | are severable under Section 1.31 of the Statute on Statutes.
| 9 | | Section 99-99. Effective date. This Act takes effect upon | 10 | | becoming law.".
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