Full Text of HB1296 98th General Assembly
HB1296eng 98TH GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning public employee benefits.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Pension Code is amended by adding | 5 | | Section 1-110.16 as follows: | 6 | | (40 ILCS 5/1-110.16 new) | 7 | | Sec. 1-110.16. Transactions prohibited by retirement | 8 | | systems; manufacturers of firearms and ammunition. | 9 | | (a) As used in this Section: | 10 | | "Company" means any sole proprietorship,
organization, | 11 | | association, corporation, partnership, joint
venture, limited | 12 | | partnership, limited liability partnership,
limited liability | 13 | | company, or other entity or business
association, including all | 14 | | wholly owned subsidiaries,
majority-owned subsidiaries, parent | 15 | | companies, or affiliates
of those entities or business | 16 | | associations, that exists for
the purpose of making profit. | 17 | | "Direct holdings" in a company means all
securities of that | 18 | | company that are held directly by the
retirement system or in | 19 | | an account or fund in which the retirement system
owns all | 20 | | shares or interests. | 21 | | "Firearm manufacturing company" means a company that is | 22 | | licensed pursuant to 27 C.F.R. 478.41 as a manufacturer of | 23 | | destructive devices, ammunition for destructive devices, armor |
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| 1 | | piercing ammunition, firearms other than destructive devices, | 2 | | or ammunition for firearms other than destructive devices or | 3 | | armor piercing ammunition but does not include either a company | 4 | | that manufactures only ceremonial weapons or a company that | 5 | | manufactures only unassembled component parts for any of the | 6 | | following: destructive devices, ammunition for destructive | 7 | | devices, armor piercing ammunition, firearms other than | 8 | | destructive devices, or ammunition for firearms other than | 9 | | destructive devices or armor piercing ammunition. | 10 | | "Indirect holdings" in a company means all
securities of | 11 | | that company that are held in an account or
fund, such as a | 12 | | mutual fund, managed by one or more persons
not employed by the | 13 | | retirement system, in which the retirement system owns
shares | 14 | | or interests together with other investors not subject
to the | 15 | | provisions of this Section. | 16 | | "Private market fund" means any private equity fund, | 17 | | private equity fund of funds, venture capital fund, hedge fund, | 18 | | hedge fund of funds, real estate fund, or other investment | 19 | | vehicle that is not publicly traded.
| 20 | | "Retirement system" means any pension fund or retirement | 21 | | system established under this Code. | 22 | | (b) Within 90 days after the effective date of this
| 23 | | Section, each retirement system shall make its best efforts to | 24 | | identify all firearm manufacturing companies in which the | 25 | | retirement system has direct or indirect holdings. | 26 | | These efforts shall include the following, as appropriate |
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| 1 | | in the retirement system's judgment: | 2 | | (1) reviewing and relying on publicly available | 3 | | information regarding
firearm manufacturing companies, | 4 | | including
information provided by nonprofit organizations, | 5 | | research
firms, and government entities; | 6 | | (2) contacting asset managers contracted by the | 7 | | retirement system that invest in firearm manufacturing | 8 | | companies; and | 9 | | (3) contacting other institutional investors that have
| 10 | | divested from or engaged with firearm manufacturing | 11 | | companies. | 12 | | The retirement system may retain an independent research | 13 | | firm to identify firearm manufacturing companies in which the | 14 | | retirement system has direct or indirect holdings. By the first | 15 | | meeting of the retirement system following
the 90-day period | 16 | | described in this subsection (b), the retirement system
shall | 17 | | assemble all identified firearm manufacturing companies into a
| 18 | | firearm manufacturing companies list. | 19 | | The retirement system shall update the firearm | 20 | | manufacturing companies list annually based on evolving | 21 | | information from,
among other sources, those listed in this | 22 | | subsection (b). | 23 | | (c) The retirement system shall adhere to
the following | 24 | | procedures for companies on the firearm manufacturing | 25 | | companies list: | 26 | | (1) The retirement system shall determine the
firearm |
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| 1 | | manufacturing companies on the firearm manufacturing | 2 | | companies list in which the
retirement system owns direct | 3 | | or indirect holdings. | 4 | | (2) For each company newly identified in item (1) of | 5 | | this subsection (c), the retirement system shall send a | 6 | | written notice informing the firearm manufacturing company | 7 | | of its status and that it may become subject to
divestment | 8 | | by the retirement system. | 9 | | (3) If, within 90 days after the retirement system's | 10 | | first
engagement with a firearm manufacturing company | 11 | | pursuant to this subsection (c), that
company ceases to | 12 | | manufacture firearms, the company
shall be removed from the | 13 | | firearm manufacturing companies list and the
provisions of | 14 | | this Section shall cease to apply to it unless it
resumes | 15 | | manufacturing firearms. | 16 | | (d) If, after 90 days following the retirement system's | 17 | | first
engagement with a firearm manufacturing company pursuant | 18 | | to subsection (c), the
company continues to manufacture | 19 | | firearms, the retirement system shall
sell, redeem, divest, or | 20 | | withdraw all publicly traded
securities of the company from the | 21 | | retirement system's assets under management within 12
months | 22 | | after the company's most recent appearance on the
firearm | 23 | | manufacturing companies list. | 24 | | (e) The retirement system may not acquire
securities of | 25 | | firearm manufacturing companies on the firearm manufacturing | 26 | | companies list. |
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| 1 | | (f) Each retirement system shall file a report with the | 2 | | Public Pension Division of the Department of Financial and | 3 | | Professional Regulation that includes the firearm | 4 | | manufacturing companies list
within 30 days after the list is | 5 | | created. This report shall be
made available to the public. | 6 | | Each retirement system shall file an annual report with the | 7 | | Public Pension Division, which shall be made available to the | 8 | | public, that includes all of the following: | 9 | | (1) a summary of correspondence with companies engaged
| 10 | | by the retirement system under items (2) and (3) of | 11 | | subsection (c); | 12 | | (2) all investments sold, redeemed, divested, or
| 13 | | withdrawn in compliance with subsection (d); and | 14 | | (3) all prohibited investments under subsection (e). | 15 | | (g) With respect to actions
taken in compliance with this | 16 | | Act, including all good-faith
determinations regarding | 17 | | companies as required by this Act,
the retirement system is | 18 | | exempt from any conflicting statutory or
common law | 19 | | obligations, including any fiduciary duties under this Article | 20 | | and any obligations with
respect to choice of asset managers, | 21 | | investment funds, or
investments for the retirement system's | 22 | | securities portfolios. | 23 | | (h) If any provision of this Section or its application to | 24 | | any person or circumstance is held invalid, the invalidity of | 25 | | that provision or application does not affect other provisions | 26 | | or applications of this Section that can be given effect |
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| 1 | | without the invalid provision or application.
| 2 | | Section 99. Effective date. This Act takes effect upon | 3 | | becoming law.
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