IL
Illinois House Bill HB3037

Illinois 2023-2024 Regular Session

Illinois House Bill HB3037 Compare Versions

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11 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3037 Introduced , by Rep. Will Guzzardi SYNOPSIS AS INTRODUCED: 40 ILCS 5/1-110.18 new30 ILCS 805/8.47 new Amends the General Provisions Article of the Illinois Pension Code. Provides that the amendatory Act may be referred to as the Fossil Fuel Divestment Act. With regard to the pension funds and retirement systems established under the General Assembly, Chicago Police, Chicago Firefighter, Illinois Municipal Retirement Fund (IMRF), Chicago Municipal, Chicago Laborers', State Employees, State Universities, Downstate Teachers, or Judges Article of the Code, prohibits investment of pension system assets in fossil fuel companies. Requires pension systems to adopt an update to its written investment policies if necessary. Requires pension systems to divest any holdings of stocks, securities, or other obligations of a fossil fuel company. Provides that, beginning one year after the effective date of the amendatory Act, the board of trustees of a pension system shall ensure that the pension system does not invest in any indirect investment vehicle unless the board of trustees is satisfied that the investment vehicle is unlikely to have more than 2% of its assets invested in coal, oil, or gas producers. Requires pension systems to post on its publicly accessible website information detailing all its holdings in the public market and private equity investments. Requires pension systems to annually issue a report reviewing its environmental, social, and governance investment policy. Sets forth definitions and other provisions. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately. LRB103 30175 RPS 56603 b STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3037 Introduced , by Rep. Will Guzzardi SYNOPSIS AS INTRODUCED: 40 ILCS 5/1-110.18 new30 ILCS 805/8.47 new 40 ILCS 5/1-110.18 new 30 ILCS 805/8.47 new Amends the General Provisions Article of the Illinois Pension Code. Provides that the amendatory Act may be referred to as the Fossil Fuel Divestment Act. With regard to the pension funds and retirement systems established under the General Assembly, Chicago Police, Chicago Firefighter, Illinois Municipal Retirement Fund (IMRF), Chicago Municipal, Chicago Laborers', State Employees, State Universities, Downstate Teachers, or Judges Article of the Code, prohibits investment of pension system assets in fossil fuel companies. Requires pension systems to adopt an update to its written investment policies if necessary. Requires pension systems to divest any holdings of stocks, securities, or other obligations of a fossil fuel company. Provides that, beginning one year after the effective date of the amendatory Act, the board of trustees of a pension system shall ensure that the pension system does not invest in any indirect investment vehicle unless the board of trustees is satisfied that the investment vehicle is unlikely to have more than 2% of its assets invested in coal, oil, or gas producers. Requires pension systems to post on its publicly accessible website information detailing all its holdings in the public market and private equity investments. Requires pension systems to annually issue a report reviewing its environmental, social, and governance investment policy. Sets forth definitions and other provisions. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately. LRB103 30175 RPS 56603 b LRB103 30175 RPS 56603 b STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY A BILL FOR
22 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3037 Introduced , by Rep. Will Guzzardi SYNOPSIS AS INTRODUCED:
33 40 ILCS 5/1-110.18 new30 ILCS 805/8.47 new 40 ILCS 5/1-110.18 new 30 ILCS 805/8.47 new
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66 Amends the General Provisions Article of the Illinois Pension Code. Provides that the amendatory Act may be referred to as the Fossil Fuel Divestment Act. With regard to the pension funds and retirement systems established under the General Assembly, Chicago Police, Chicago Firefighter, Illinois Municipal Retirement Fund (IMRF), Chicago Municipal, Chicago Laborers', State Employees, State Universities, Downstate Teachers, or Judges Article of the Code, prohibits investment of pension system assets in fossil fuel companies. Requires pension systems to adopt an update to its written investment policies if necessary. Requires pension systems to divest any holdings of stocks, securities, or other obligations of a fossil fuel company. Provides that, beginning one year after the effective date of the amendatory Act, the board of trustees of a pension system shall ensure that the pension system does not invest in any indirect investment vehicle unless the board of trustees is satisfied that the investment vehicle is unlikely to have more than 2% of its assets invested in coal, oil, or gas producers. Requires pension systems to post on its publicly accessible website information detailing all its holdings in the public market and private equity investments. Requires pension systems to annually issue a report reviewing its environmental, social, and governance investment policy. Sets forth definitions and other provisions. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.
77 LRB103 30175 RPS 56603 b LRB103 30175 RPS 56603 b
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99 STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY
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1414 1 AN ACT concerning public employee benefits.
1515 2 Be it enacted by the People of the State of Illinois,
1616 3 represented in the General Assembly:
1717 4 Section 1. This Act may be referred to as the Fossil Fuel
1818 5 Divestment Act.
1919 6 Section 5. Findings; purpose. The General Assembly finds
2020 7 that:
2121 8 (1) Climate change is a real and serious threat to the
2222 9 health, welfare, and prosperity of all Illinoisans, now
2323 10 and in the future. Maintaining the status quo of fossil
2424 11 fuel energy production could lead to catastrophic results.
2525 12 (2) The threat of climate change and the necessary
2626 13 transformation of the global energy system to mitigate it
2727 14 will have a serious negative impact on investors whose
2828 15 assets are not aligned with a 1.5-degree Celsius
2929 16 trajectory.
3030 17 (3) Continued investment in fossil fuel producers
3131 18 poses unacceptable risk to the long-term sustainability of
3232 19 the 5 Illinois State pension funds, the General Assembly
3333 20 Retirement System (GARS), the State Employees' Retirement
3434 21 System of Illinois (SERS), the State Universities
3535 22 Retirement System (SURS), the Teachers' Retirement System
3636 23 of the State of Illinois (TRS), and the Judges' Retirement
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4040 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3037 Introduced , by Rep. Will Guzzardi SYNOPSIS AS INTRODUCED:
4141 40 ILCS 5/1-110.18 new30 ILCS 805/8.47 new 40 ILCS 5/1-110.18 new 30 ILCS 805/8.47 new
4242 40 ILCS 5/1-110.18 new
4343 30 ILCS 805/8.47 new
4444 Amends the General Provisions Article of the Illinois Pension Code. Provides that the amendatory Act may be referred to as the Fossil Fuel Divestment Act. With regard to the pension funds and retirement systems established under the General Assembly, Chicago Police, Chicago Firefighter, Illinois Municipal Retirement Fund (IMRF), Chicago Municipal, Chicago Laborers', State Employees, State Universities, Downstate Teachers, or Judges Article of the Code, prohibits investment of pension system assets in fossil fuel companies. Requires pension systems to adopt an update to its written investment policies if necessary. Requires pension systems to divest any holdings of stocks, securities, or other obligations of a fossil fuel company. Provides that, beginning one year after the effective date of the amendatory Act, the board of trustees of a pension system shall ensure that the pension system does not invest in any indirect investment vehicle unless the board of trustees is satisfied that the investment vehicle is unlikely to have more than 2% of its assets invested in coal, oil, or gas producers. Requires pension systems to post on its publicly accessible website information detailing all its holdings in the public market and private equity investments. Requires pension systems to annually issue a report reviewing its environmental, social, and governance investment policy. Sets forth definitions and other provisions. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.
4545 LRB103 30175 RPS 56603 b LRB103 30175 RPS 56603 b
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4747 STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY
4848 STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY
4949 A BILL FOR
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7979 1 System of Illinois (JRS); the Illinois Municipal
8080 2 Retirement Fund (IMRF); and the 4 Chicago pension funds,
8181 3 the Municipal Employees', Officers', and Officials'
8282 4 Annuity and Benefit Fund of Chicago (MEABF), the Laborers'
8383 5 and Retirement Board Employees' Annuity and Benefit Fund
8484 6 of Chicago (LABF), the Policemen's Annuity and Benefit
8585 7 Fund of Chicago, and the Firemen's Annuity and Benefit
8686 8 Fund of Chicago.
8787 9 (4) Continued investment in fossil fuel producers
8888 10 poses unacceptable risk to the long-term sustainability of
8989 11 $26,000,000,000 of the State's investments;
9090 12 $17,000,000,000 in the programs established pursuant to
9191 13 Section 529 of the Internal Revenue Code; $12,000,000,000
9292 14 of the Illinois Funds; $80,000,000 of the Secure Choice
9393 15 Retirement Savings Program; and $30,000,000 in the ABLE
9494 16 Account Program.
9595 17 (5) Continued investment in fossil fuel producers
9696 18 poses unacceptable risk to the long-term sustainability of
9797 19 the City of Chicago's pension funds.
9898 20 (6) Because the continued investment in fossil fuel
9999 21 producers poses unacceptable risk to these pension systems
100100 22 and State investments, those who hold investment authority
101101 23 over these systems should divest from fossil fuel
102102 24 companies and fossil fuel infrastructure.
103103 25 Section 10. The Illinois Pension Code is amended by adding
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114114 1 Section 1-110.18 as follows:
115115 2 (40 ILCS 5/1-110.18 new)
116116 3 Sec. 1-110.18. Fossil fuel investment prohibited.
117117 4 (a) In this Section:
118118 5 "Fossil fuel" means coal, petroleum, natural gas, or any
119119 6 derivative of coal, petroleum, or natural gas that is used for
120120 7 fuel.
121121 8 "Fossil fuel company" means any company that: (1) is among
122122 9 the 200 publicly traded companies with the largest fossil fuel
123123 10 reserves in the world; (2) is among the 30 largest public
124124 11 company owners in the world of coal-fired power plants; (3)
125125 12 has as its core business the construction or operation of
126126 13 fossil fuel infrastructure; (4) has as its core business the
127127 14 exploration, extraction, refining, processing, or distribution
128128 15 of fossil fuels; or (5) that receives more than 20% of its
129129 16 gross revenue from companies that meet the definition under
130130 17 item (1), (2), (3), or (4) of this definition.
131131 18 "Fossil fuel infrastructure" means oil or gas wells; oil
132132 19 or gas pipelines and refineries; oil, coal, or gas-fired power
133133 20 plants; oil and gas storage tanks; fossil fuel export
134134 21 terminals; and any other infrastructure used exclusively for
135135 22 fossil fuels.
136136 23 "Indirect investment" means a holding in an investment
137137 24 vehicle that directly or indirectly owns a more than 1%
138138 25 interest in one or more individual fossil fuel companies.
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149149 1 "Pension system" means a pension fund or retirement system
150150 2 established under Article 2, 5, 6, 7, 8, 11, 14, 15, 16, or 18.
151151 3 (b) A pension system, in accordance with sound investment
152152 4 criteria and consistent with fiduciary obligations, shall not
153153 5 invest the assets of the pension system in the stocks,
154154 6 securities, or other obligations of any fossil fuel company or
155155 7 any subsidiary, affiliate, or parent of any fossil fuel
156156 8 company. Nothing in this subsection precludes de minimis
157157 9 exposure of any funds held by a pension system to the stocks,
158158 10 securities, or other obligations of any fossil fuel company or
159159 11 any subsidiary, affiliate, or parent of any fossil fuel
160160 12 company. The board of trustees of a pension system shall not
161161 13 invest in any prime commercial paper or corporate bonds issued
162162 14 by a fossil fuel company.
163163 15 (c) Each board of trustees of a pension system that has
164164 16 adopted a written investment policy under Section 1-113.6
165165 17 shall adopt an update of its written investment policies, if
166166 18 necessary, to meet the requirements of this Section and file a
167167 19 copy of that updated policy with the Department of Insurance
168168 20 within 30 days after its adoption.
169169 21 (d) Beginning one year after the effective date of this
170170 22 amendatory Act of the 103rd General Assembly, subject to an
171171 23 affirmative determination of prudence, and in accordance with
172172 24 sound investment criteria and consistent with its fiduciary
173173 25 obligations, each board of trustees of a pension system shall
174174 26 ensure that the pension system does not invest in any indirect
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185185 1 investment vehicle unless the board of trustees is satisfied
186186 2 that the investment vehicle is unlikely to have more than 2% of
187187 3 its assets invested in coal, oil, or gas producers.
188188 4 (e) Each pension system shall review the extent to which
189189 5 the assets of the pension system are invested in the stocks,
190190 6 securities, or other obligations of any fossil fuel company or
191191 7 any subsidiary, affiliate, or parent of any fossil fuel
192192 8 company. The board of trustees of a pension system shall, in
193193 9 accordance with sound investment criteria and consistent with
194194 10 fiduciary obligations, divest any such holdings. Divestment
195195 11 pursuant to this subsection must be completed by January 1,
196196 12 2028. Nothing in this subsection precludes de minimis exposure
197197 13 of any funds held by the board to the stocks, securities, or
198198 14 other obligations of any fossil fuel company or any
199199 15 subsidiary, affiliate, or parent of any fossil fuel company.
200200 16 (f) The board of trustees of a pension system may not
201201 17 invest in any prime commercial paper or corporate bonds issued
202202 18 by a fossil fuel company.
203203 19 (g) On a quarterly basis, each pension system shall post
204204 20 on its publicly accessible website information detailing all
205205 21 its holdings in the public market and private equity
206206 22 investments.
207207 23 (h) Beginning January 1, 2024 and annually thereafter,
208208 24 each pension system shall issue a report reviewing its
209209 25 environmental, social, and governance investment policy. The
210210 26 report must disclose commonly available environmental
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221221 1 performance metrics on the environmental effects of the
222222 2 pension system's investments.
223223 3 Section 90. The State Mandates Act is amended by adding
224224 4 Section 8.47 as follows:
225225 5 (30 ILCS 805/8.47 new)
226226 6 Sec. 8.47. Exempt mandate. Notwithstanding Sections 6 and
227227 7 8 of this Act, no reimbursement by the State is required for
228228 8 the implementation of any mandate created by this amendatory
229229 9 Act of the 103rd General Assembly.
230230 10 Section 99. Effective date. This Act takes effect upon
231231 11 becoming law.
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