Illinois 2023-2024 Regular Session

Illinois House Bill HB2427 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2427 Introduced , by Rep. Camille Y. Lilly SYNOPSIS AS INTRODUCED: 40 ILCS 5/1-113.65 new30 ILCS 805/8.47 new Amends the General Provisions Article of the Illinois Pension Code. By no later than December 31, 2023, requires every pension fund, except for a Downstate Police or Downstate Firefighter fund, to develop a climate change risk minimization policy. Provides that the policy shall consider the financial risk to the investments held by the pension fund in the event of different levels of climate change, as defined by the United Nations Framework Convention on Climate Change. Requires the policy to explain what sources of data, which must include specified sources, were used to make certain projections. Requires the policy to consider the scope of the financial risk of climate-related events. Authorizes the pension fund to determine a policy for all corporate equities held by the pension fund on voting for shareholder resolutions and directors to advance corporate policies that minimize the long-term risk to the pension fund's assets from increased climate change. Requires the policy to be updated annually and published on the pension fund's website. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately. LRB103 28881 RPS 55267 b STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2427 Introduced , by Rep. Camille Y. Lilly SYNOPSIS AS INTRODUCED: 40 ILCS 5/1-113.65 new30 ILCS 805/8.47 new 40 ILCS 5/1-113.65 new 30 ILCS 805/8.47 new Amends the General Provisions Article of the Illinois Pension Code. By no later than December 31, 2023, requires every pension fund, except for a Downstate Police or Downstate Firefighter fund, to develop a climate change risk minimization policy. Provides that the policy shall consider the financial risk to the investments held by the pension fund in the event of different levels of climate change, as defined by the United Nations Framework Convention on Climate Change. Requires the policy to explain what sources of data, which must include specified sources, were used to make certain projections. Requires the policy to consider the scope of the financial risk of climate-related events. Authorizes the pension fund to determine a policy for all corporate equities held by the pension fund on voting for shareholder resolutions and directors to advance corporate policies that minimize the long-term risk to the pension fund's assets from increased climate change. Requires the policy to be updated annually and published on the pension fund's website. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately. LRB103 28881 RPS 55267 b LRB103 28881 RPS 55267 b STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY A BILL FOR
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2427 Introduced , by Rep. Camille Y. Lilly SYNOPSIS AS INTRODUCED:
3	3	40 ILCS 5/1-113.65 new30 ILCS 805/8.47 new 40 ILCS 5/1-113.65 new 30 ILCS 805/8.47 new
4	4	40 ILCS 5/1-113.65 new
5	5	30 ILCS 805/8.47 new
6	6	Amends the General Provisions Article of the Illinois Pension Code. By no later than December 31, 2023, requires every pension fund, except for a Downstate Police or Downstate Firefighter fund, to develop a climate change risk minimization policy. Provides that the policy shall consider the financial risk to the investments held by the pension fund in the event of different levels of climate change, as defined by the United Nations Framework Convention on Climate Change. Requires the policy to explain what sources of data, which must include specified sources, were used to make certain projections. Requires the policy to consider the scope of the financial risk of climate-related events. Authorizes the pension fund to determine a policy for all corporate equities held by the pension fund on voting for shareholder resolutions and directors to advance corporate policies that minimize the long-term risk to the pension fund's assets from increased climate change. Requires the policy to be updated annually and published on the pension fund's website. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.
7	7	LRB103 28881 RPS 55267 b LRB103 28881 RPS 55267 b
8	8	LRB103 28881 RPS 55267 b
9	9	STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY
10	10	STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY
11	11	A BILL FOR
12	12	HB2427LRB103 28881 RPS 55267 b HB2427 LRB103 28881 RPS 55267 b
13	13	HB2427 LRB103 28881 RPS 55267 b
14	14	1 AN ACT concerning public employee benefits.
15	15	2 Be it enacted by the People of the State of Illinois,
16	16	3 represented in the General Assembly:
17	17	4 Section 5. The Illinois Pension Code is amended by adding
18	18	5 Section 1-113.65 as follows:
19	19	6 (40 ILCS 5/1-113.65 new)
20	20	7 Sec. 1-113.65. Climate change risk minimization policy.
21	21	8 (a) As used in this Section, "pension fund" means a
22	22	9 pension fund or retirement system established under this Code,
23	23	10 except for a pension fund established under Article 3 or 4 of
24	24	11 this Code.
25	25	12 (b) No later than December 31, 2023, every pension fund
26	26	13 shall develop a climate change risk minimization policy. This
27	27	14 policy shall consider the financial risk to the investments
28	28	15 held by the pension fund in the event of different levels of
29	29	16 climate change, as defined by the United Nations Framework
30	30	17 Convention on Climate Change. The initial development of this
31	31	18 policy shall use the National Association of Insurance
32	32	19 Commissioners' Insurer Climate Risk Disclosure Survey as a
33	33	20 model. The policy shall consider the scope of the financial
34	34	21 risk and the financial impact of these climate-related events,
35	35	22 including, but not limited to, severe drought, coastal
36	36	23 flooding, and more intense hurricanes, on the holdings of the
37	37
38	38
39	39
40	40	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2427 Introduced , by Rep. Camille Y. Lilly SYNOPSIS AS INTRODUCED:
41	41	40 ILCS 5/1-113.65 new30 ILCS 805/8.47 new 40 ILCS 5/1-113.65 new 30 ILCS 805/8.47 new
42	42	40 ILCS 5/1-113.65 new
43	43	30 ILCS 805/8.47 new
44	44	Amends the General Provisions Article of the Illinois Pension Code. By no later than December 31, 2023, requires every pension fund, except for a Downstate Police or Downstate Firefighter fund, to develop a climate change risk minimization policy. Provides that the policy shall consider the financial risk to the investments held by the pension fund in the event of different levels of climate change, as defined by the United Nations Framework Convention on Climate Change. Requires the policy to explain what sources of data, which must include specified sources, were used to make certain projections. Requires the policy to consider the scope of the financial risk of climate-related events. Authorizes the pension fund to determine a policy for all corporate equities held by the pension fund on voting for shareholder resolutions and directors to advance corporate policies that minimize the long-term risk to the pension fund's assets from increased climate change. Requires the policy to be updated annually and published on the pension fund's website. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.
45	45	LRB103 28881 RPS 55267 b LRB103 28881 RPS 55267 b
46	46	LRB103 28881 RPS 55267 b
47	47	STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY
48	48	STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY
49	49	A BILL FOR
50	50
51	51
52	52
53	53
54	54
55	55	40 ILCS 5/1-113.65 new
56	56	30 ILCS 805/8.47 new
57	57
58	58
59	59
60	60	LRB103 28881 RPS 55267 b
61	61
62	62	STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY
63	63
64	64
65	65
66	66
67	67
68	68
69	69
70	70
71	71
72	72
73	73
74	74	HB2427 LRB103 28881 RPS 55267 b
75	75
76	76
77	77	HB2427- 2 -LRB103 28881 RPS 55267 b HB2427 - 2 - LRB103 28881 RPS 55267 b
78	78	HB2427 - 2 - LRB103 28881 RPS 55267 b
79	79	1 pension fund. The policy shall explain what sources of data,
80	80	2 which shall include, but not be limited to, insurance company
81	81	3 projections, the United Nations Framework Convention on
82	82	4 Climate Change, and the United States Environmental Protection
83	83	5 Agency, were used in making long-term projections on the
84	84	6 climate and the potential long-term financial impact to the
85	85	7 holdings of the pension fund from increased climate change.
86	86	8 (c) To the extent the pension fund determines, based on
87	87	9 insurance company projections and other official sources of
88	88	10 data, that increasing climate change is a significant
89	89	11 financial risk to the long-term value of the pension fund, the
90	90	12 pension fund may determine a policy for all corporate equities
91	91	13 held by the pension fund on voting for shareholder resolutions
92	92	14 and directors to advance corporate policies that minimize the
93	93	15 long-term risk to the pension fund's assets from increased
94	94	16 climate change, including, but not limited to, voting for
95	95	17 shareholder resolutions that commit companies to internal
96	96	18 policies that reduce the company's carbon emissions.
97	97	19 (d) The policy shall be updated annually and published on
98	98	20 the pension fund's website. Previous versions of the policy
99	99	21 shall be kept on the pension fund's website for a period of 5
100	100	22 years.
101	101	23 Section 90. The State Mandates Act is amended by adding
102	102	24 Section 8.47 as follows:
103	103
104	104
105	105
106	106
107	107
108	108	HB2427 - 2 - LRB103 28881 RPS 55267 b
109	109
110	110
111	111	HB2427- 3 -LRB103 28881 RPS 55267 b HB2427 - 3 - LRB103 28881 RPS 55267 b
112	112	HB2427 - 3 - LRB103 28881 RPS 55267 b
113	113	1 (30 ILCS 805/8.47 new)
114	114	2 Sec. 8.47. Exempt mandate. Notwithstanding Sections 6 and
115	115	3 8 of this Act, no reimbursement by the State is required for
116	116	4 the implementation of any mandate created by this amendatory
117	117	5 Act of the 103rd General Assembly.
118	118	6 Section 99. Effective date. This Act takes effect upon
119	119	7 becoming law.
120	120
121	121
122	122
123	123
124	124
125	125	HB2427 - 3 - LRB103 28881 RPS 55267 b