Illinois General Assembly - Full Text of HB1293
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Full Text of HB1293  102nd General Assembly

HB1293ham001 102ND GENERAL ASSEMBLY

Rep. Lindsey LaPointe

Filed: 3/17/2022

 

 


 

 


 
10200HB1293ham001LRB102 03303 RPS 37607 a

1
AMENDMENT TO HOUSE BILL 1293

2    AMENDMENT NO. ______. Amend House Bill 1293 by replacing
3everything 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
5Money Laundering in Real Estate Task Force Act. References in
6this Article to "this Act" mean this Article.
 
7    Section 5-3. Findings. The General Assembly finds and
8declares 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
3created. The Task Force shall consist of the following
4members:
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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1as soon as practicable after the effective date of this Act.
2The Task Force shall hold its first meeting within a
3reasonable period of time after its members have been
4appointed and shall convene regularly to carry out its duties
5and submit the reports required under this Act. At its first
6meeting, the Task Force shall elect its chairperson and any
7other officers from among its members.
8    (c) The Department of Financial and Professional
9Regulation and the Department of Revenue shall provide
10administrative 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
9report to the Governor and the General Assembly not later than
1012 months after the effective date of this Act. The report
11shall include the Task Force's findings and shall summarize
12the actions the Task Force has taken and those it intends to
13take in response to its obligations under the Act. After it
14submits its initial report, the Task Force shall periodically
15submit reports to the Governor and the General Assembly as the
16chairperson of the Task Force deems necessary to apprise those
17officials of any additional findings made or actions taken by
18the Task Force. The obligation of the Task Force to submit
19periodic reports shall continue for the duration of the Task
20Force.
 
21    Section 5-20. Dissolution of Task Force; repeal. The Task
22Force is dissolved on January 1, 2025. This Act is repealed on
23January 1, 2026.
 

 

 

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1
Article 10.

 
2    Section 10-3. The Illinois Administrative Procedure Act is
3amended 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
6Resettlement Program. To provide for the expeditious and
7timely implementation of Section 1-75 of the Department of
8Human Services Act, emergency rules implementing the Ukrainian
9Refugee Resettlement Program under Section 1-75 of the
10Department of Human Services Act may be adopted in accordance
11with Section 5-45 by the Department of Human Services. The
12adoption of emergency rules authorized by Section 5-45 and
13this Section is deemed to be necessary for the public
14interest, safety, and welfare.
15    This Section is repealed one year after the effective date
16of this amendatory Act of the 102nd General Assembly.
 
17    Section 10-5. The Deposit of State Moneys Act is amended
18by adding Section 22.7 as follows:
 
19    (15 ILCS 520/22.7 new)
20    Sec. 22.7. Russian or Belarusian investments prohibited.
21Notwithstanding any provision of law to the contrary, the
22State Treasurer shall not invest State money in Russian or

 

 

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1Belarusian sovereign debt, Russian or Belarusian
2government-backed securities, any investment instrument issued
3by an entity that is domiciled or has its principal place of
4business in Russia or Belarus, or any investment instrument
5issued by a company that is subject to Russian Harmful Foreign
6Activities Sanctions, as that term is defined under Section
71-110.16 of the Illinois Pension Code, and shall not invest or
8deposit State money in any bank that is domiciled or has its
9principal place of business in Russia or Belarus or in any
10other financial institution that is domiciled or has its
11principal place of business in Russia or Belarus or that is
12subject to Russian Harmful Foreign Activities Sanctions.
 
13    Section 10-10. The Department of Human Services Act is
14amended by adding Section 1-75 as follows:
 
15    (20 ILCS 1305/1-75 new)
16    Sec. 1-75. Ukrainian Refugee Resettlement Program. Subject
17to appropriation, the Department shall establish and
18administer the Ukrainian Refugee Resettlement Program to
19provide resettlement services, including, but not limited to,
20health care services, mental health services, and English
21language services, to Ukrainian nationals who have been
22granted temporary protected status by the United States
23Department of State or who have refugee status under Section
24207 of the Immigration and Nationality Act. The Ukrainian

 

 

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1Refugee Resettlement Fund is hereby created as a special fund
2in the State treasury. The Department may accept gifts,
3grants, donations, or other revenues or transfers for deposit
4into the Ukrainian Refugee Resettlement Fund. Moneys in the
5fund shall be used by the Department for the purpose of
6implementing and administering the program established under
7this Section. The Department may adopt rules, including
8emergency rules, to implement this Section, including, but not
9limited to, rules necessary to ensure the provision of health
10care services, mental health services, and English language
11services to those Ukrainian nationals who are eligible to
12participate in the program established under this Section.
 
13    Section 10-15. The Illinois State Police Law of the Civil
14Administrative Code of Illinois is amended by changing Section
152605-35 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
19the 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
16Section 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
20by 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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1Notwithstanding any provision of law to the contrary, the
2State Treasurer shall not invest State money in Russian or
3Belarusian sovereign debt, Russian or Belarusian
4government-backed securities, any investment instrument issued
5by an entity that is domiciled or has its principal place of
6business in Russia or Belarus, or any investment instrument
7issued by a company that is subject to Russian Harmful Foreign
8Activities Sanctions, as that term is defined under Section
91-110.16 of the Illinois Pension Code, and shall not invest or
10deposit State money in any bank that is domiciled or has its
11principal place of business in Russia or Belarus or in any
12other financial institution that is domiciled or has its
13principal place of business in Russia or Belarus or that is
14subject to Russian Harmful Foreign Activities Sanctions.
 
15    Section 10-30. The Illinois Pension Code is amended by
16adding Section 1-110.14 and by changing Section 1-110.16 as
17follows:
 
18    (40 ILCS 5/1-110.14 new)
19    Sec. 1-110.14. Transactions prohibited by retirement
20systems; Russia; Belarus.
21    (a) Beginning on the effective date of this amendatory Act
22of the 102nd General Assembly, no retirement system, as that
23term is defined in Section 1-110.16 of this Code, shall invest
24moneys in Russian or Belarusian sovereign debt, Russian or

 

 

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1Belarusian government-backed securities, any investment
2instrument issued by an entity that is domiciled or has its
3principal place of business in Russia or Belarus, or any
4investment instrument issued by a company that is subject to
5Russian Harmful Foreign Activities Sanctions and that is
6included in the Illinois Investment Policy Board's list of
7restricted companies under Section 1-110.16 of the Illinois
8Pension Code, and no retirement system shall invest or deposit
9State moneys in any bank that is domiciled or has its principal
10place of business in Russia or Belarus or in any other
11financial institution that is domiciled or has its principal
12place of business in Russia or Belarus or that is subject to
13Russian Harmful Foreign Activities Sanctions and that is
14included in the Illinois Investment Policy Board's list of
15restricted companies under Section 1-110.16 of the Illinois
16Pension Code.
17    (b) As soon as practicable after the effective date of
18this amendatory Act of the 102nd General Assembly, but not
19later than 9 months after the effective date of this
20amendatory Act of the 102nd General Assembly, each retirement
21system, as that term is defined in Section 1-110.16 of this
22Code, shall instruct its investment advisors to sell, redeem,
23divest, or withdraw all direct holdings of Russian or
24Belarusian sovereign debt, Russian or Belarusian
25government-backed securities, investment instruments issued by
26an entity that is domiciled or has its principal place of

 

 

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1business in Russia or Belarus, investment instruments issued
2by a company that is subject to Russian Harmful Foreign
3Activities Sanctions and that is included in the Illinois
4Investment Policy Board's list of restricted companies under
5Section 1-110.16 of the Illinois Pension Code, investments or
6deposits in any bank that is domiciled or has its principal
7place of business in Russia or Belarus, and investments or
8deposits in any other financial institution that is domiciled
9or has its principal place of business in Russia or Belarus or
10that is subject to Russian Harmful Foreign Activities
11Sanctions and that is included in the Illinois Investment
12Policy Board's list of restricted companies under Section
131-110.16 of the Illinois Pension Code from the retirement
14system's assets under management in an orderly and fiduciarily
15responsible manner.
16    (c) The prohibition in this Section does not apply to
17moneys held in mutual funds, index funds, or other indirect
18holdings in commingled funds or accounts.
 
19    (40 ILCS 5/1-110.16)
20    Sec. 1-110.16. Transactions prohibited by retirement
21systems; companies that boycott Israel, for-profit companies
22that contract to shelter migrant children, Iran-restricted
23companies, Sudan-restricted companies, and expatriated
24entities, companies domiciled or that have their principal
25place of business in Russia or Belarus, and companies subject

 

 

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1to 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
13Policy Board. The Illinois Investment Policy Board shall
14consist of 7 members. Each board of a pension fund or
15investment board created under Article 15, 16, or 22A of this
16Code shall appoint one member, and the Governor shall appoint
174 members.
18    (c) Notwithstanding any provision of law to the contrary,
19beginning January 1, 2016, Sections 1-110.15 110.15 and
201-110.6 of this Code shall be administered in accordance with
21this Section.
22    (d) By April 1, 2016, the Illinois Investment Policy Board
23shall make its best efforts to identify all Iran-restricted
24companies, Sudan-restricted companies, and companies that
25boycott Israel and assemble those identified companies into a
26list of restricted companies, to be distributed to each

 

 

10200HB1293ham001- 19 -LRB102 03303 RPS 37607 a

1retirement system.
2    These efforts shall include the following, as appropriate
3in 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
21of restricted companies on a quarterly basis based on evolving
22information from, among other sources, those listed in this
23subsection (d) and distribute any updates to the list of
24restricted companies to the retirement systems and the State
25Treasurer.
26    By April 1, 2018, the Illinois Investment Policy Board

 

 

10200HB1293ham001- 20 -LRB102 03303 RPS 37607 a

1shall make its best efforts to identify all expatriated
2entities and include those companies in the list of restricted
3companies distributed to each retirement system and the State
4Treasurer. These efforts shall include the following, as
5appropriate in the Illinois Investment Policy Board's
6judgment:
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
18shall make its best efforts to identify all for-profit
19companies that contract to shelter migrant children and
20include those companies in the list of restricted companies
21distributed to each retirement system. These efforts shall
22include the following, as appropriate in the Illinois
23Investment 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

 

 

10200HB1293ham001- 21 -LRB102 03303 RPS 37607 a

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
13amendatory Act of the 102nd General Assembly, the Illinois
14Investment Policy Board shall make its best efforts to
15identify all companies domiciled or that have their principal
16place of business in Russia or Belarus and companies subject
17to Russian Harmful Foreign Activities Sanctions and include
18those companies in the list of restricted companies
19distributed to each retirement system. These efforts shall
20include the following, as appropriate in the Illinois
21Investment 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
17the following procedures for companies on the list of
18restricted 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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1the retirement system shall adhere to the following procedures
2for 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
4procedures for restricted companies that are expatriated
5entities or for-profit companies that contract to shelter
6migrant 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
24retirement system shall provide the Illinois Investment Policy
25Board with information regarding investments sold, redeemed,
26divested, or withdrawn in compliance with this Section.

 

 

10200HB1293ham001- 26 -LRB102 03303 RPS 37607 a

1    (h) Notwithstanding any provision of this Section to the
2contrary, a retirement system may cease divesting from
3companies pursuant to subsection (f) if clear and convincing
4evidence shows that the value of investments in such companies
5becomes equal to or less than 0.5% of the market value of all
6assets under management by the retirement system. For any
7cessation of divestment authorized by this subsection (h), the
8retirement system shall provide a written notice to the
9Illinois Investment Policy Board in advance of the cessation
10of divestment, setting forth the reasons and justification,
11supported by clear and convincing evidence, for its decision
12to cease divestment under subsection (f).
13    (i) The cost associated with the activities of the
14Illinois Investment Policy Board shall be borne by the boards
15of each pension fund or investment board created under Article
1615, 16, or 22A of this Code.
17    (j) With respect to actions taken in compliance with this
18Section, including all good-faith determinations regarding
19companies as required by this Section, the retirement system
20and Illinois Investment Policy Board are exempt from any
21conflicting statutory or common law obligations, including any
22fiduciary duties under this Article and any obligations with
23respect to choice of asset managers, investment funds, or
24investments for the retirement system's securities portfolios.
25    (k) It is not the intent of the General Assembly in
26enacting this amendatory Act of the 99th General Assembly to

 

 

10200HB1293ham001- 27 -LRB102 03303 RPS 37607 a

1cause divestiture from any company based in the United States
2of America. The Illinois Investment Policy Board shall
3consider this intent when developing or reviewing the list of
4restricted companies.
5    (l) If any provision of this amendatory Act of the 99th
6General Assembly or its application to any person or
7circumstance is held invalid, the invalidity of that provision
8or application does not affect other provisions or
9applications of this amendatory Act of the 99th General
10Assembly that can be given effect without the invalid
11provision or application.
12    If any provision of Public Act 100-551 or its application
13to any person or circumstance is held invalid, the invalidity
14of that provision or application does not affect other
15provisions or applications of Public Act 100-551 that can be
16given effect without the invalid provision or application.
17    If any provision of Public Act 102-118 this amendatory Act
18of the 102nd General Assembly or its application to any person
19or circumstance is held invalid, the invalidity of that
20provision or application does not affect other provisions or
21applications of Public Act 102-118 this amendatory Act of the
22102nd General Assembly that can be given effect without the
23invalid provision or application.
24    If any provision of this amendatory Act of the 102nd
25General Assembly or its application to any person or
26circumstance is held invalid, the invalidity of that provision

 

 

10200HB1293ham001- 28 -LRB102 03303 RPS 37607 a

1or application does not affect other provisions or
2applications of this amendatory Act of the 102nd General
3Assembly that can be given effect without the invalid
4provision 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
8are severable under Section 1.31 of the Statute on Statutes.
 
9    Section 99-99. Effective date. This Act takes effect upon
10becoming law.".