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
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
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
LRB103 30175 RPS 56603 b
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY
A BILL FOR
HB3037LRB103 30175 RPS 56603 b HB3037 LRB103 30175 RPS 56603 b
HB3037 LRB103 30175 RPS 56603 b
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 1. This Act may be referred to as the Fossil Fuel
5 Divestment Act.
6 Section 5. Findings; purpose. The General Assembly finds
7 that:
8 (1) Climate change is a real and serious threat to the
9 health, welfare, and prosperity of all Illinoisans, now
10 and in the future. Maintaining the status quo of fossil
11 fuel energy production could lead to catastrophic results.
12 (2) The threat of climate change and the necessary
13 transformation of the global energy system to mitigate it
14 will have a serious negative impact on investors whose
15 assets are not aligned with a 1.5-degree Celsius
16 trajectory.
17 (3) Continued investment in fossil fuel producers
18 poses unacceptable risk to the long-term sustainability of
19 the 5 Illinois State pension funds, the General Assembly
20 Retirement System (GARS), the State Employees' Retirement
21 System of Illinois (SERS), the State Universities
22 Retirement System (SURS), the Teachers' Retirement System
23 of the State of Illinois (TRS), and the Judges' Retirement
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
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
LRB103 30175 RPS 56603 b
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY
A BILL FOR
40 ILCS 5/1-110.18 new
30 ILCS 805/8.47 new
LRB103 30175 RPS 56603 b
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY
HB3037 LRB103 30175 RPS 56603 b
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HB3037 - 2 - LRB103 30175 RPS 56603 b
1 System of Illinois (JRS); the Illinois Municipal
2 Retirement Fund (IMRF); and the 4 Chicago pension funds,
3 the Municipal Employees', Officers', and Officials'
4 Annuity and Benefit Fund of Chicago (MEABF), the Laborers'
5 and Retirement Board Employees' Annuity and Benefit Fund
6 of Chicago (LABF), the Policemen's Annuity and Benefit
7 Fund of Chicago, and the Firemen's Annuity and Benefit
8 Fund of Chicago.
9 (4) Continued investment in fossil fuel producers
10 poses unacceptable risk to the long-term sustainability of
11 $26,000,000,000 of the State's investments;
12 $17,000,000,000 in the programs established pursuant to
13 Section 529 of the Internal Revenue Code; $12,000,000,000
14 of the Illinois Funds; $80,000,000 of the Secure Choice
15 Retirement Savings Program; and $30,000,000 in the ABLE
16 Account Program.
17 (5) Continued investment in fossil fuel producers
18 poses unacceptable risk to the long-term sustainability of
19 the City of Chicago's pension funds.
20 (6) Because the continued investment in fossil fuel
21 producers poses unacceptable risk to these pension systems
22 and State investments, those who hold investment authority
23 over these systems should divest from fossil fuel
24 companies and fossil fuel infrastructure.
25 Section 10. The Illinois Pension Code is amended by adding
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1 Section 1-110.18 as follows:
2 (40 ILCS 5/1-110.18 new)
3 Sec. 1-110.18. Fossil fuel investment prohibited.
4 (a) In this Section:
5 "Fossil fuel" means coal, petroleum, natural gas, or any
6 derivative of coal, petroleum, or natural gas that is used for
7 fuel.
8 "Fossil fuel company" means any company that: (1) is among
9 the 200 publicly traded companies with the largest fossil fuel
10 reserves in the world; (2) is among the 30 largest public
11 company owners in the world of coal-fired power plants; (3)
12 has as its core business the construction or operation of
13 fossil fuel infrastructure; (4) has as its core business the
14 exploration, extraction, refining, processing, or distribution
15 of fossil fuels; or (5) that receives more than 20% of its
16 gross revenue from companies that meet the definition under
17 item (1), (2), (3), or (4) of this definition.
18 "Fossil fuel infrastructure" means oil or gas wells; oil
19 or gas pipelines and refineries; oil, coal, or gas-fired power
20 plants; oil and gas storage tanks; fossil fuel export
21 terminals; and any other infrastructure used exclusively for
22 fossil fuels.
23 "Indirect investment" means a holding in an investment
24 vehicle that directly or indirectly owns a more than 1%
25 interest in one or more individual fossil fuel companies.
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1 "Pension system" means a pension fund or retirement system
2 established under Article 2, 5, 6, 7, 8, 11, 14, 15, 16, or 18.
3 (b) A pension system, in accordance with sound investment
4 criteria and consistent with fiduciary obligations, shall not
5 invest the assets of the pension system in the stocks,
6 securities, or other obligations of any fossil fuel company or
7 any subsidiary, affiliate, or parent of any fossil fuel
8 company. Nothing in this subsection precludes de minimis
9 exposure of any funds held by a pension system to the stocks,
10 securities, or other obligations of any fossil fuel company or
11 any subsidiary, affiliate, or parent of any fossil fuel
12 company. The board of trustees of a pension system shall not
13 invest in any prime commercial paper or corporate bonds issued
14 by a fossil fuel company.
15 (c) Each board of trustees of a pension system that has
16 adopted a written investment policy under Section 1-113.6
17 shall adopt an update of its written investment policies, if
18 necessary, to meet the requirements of this Section and file a
19 copy of that updated policy with the Department of Insurance
20 within 30 days after its adoption.
21 (d) Beginning one year after the effective date of this
22 amendatory Act of the 103rd General Assembly, subject to an
23 affirmative determination of prudence, and in accordance with
24 sound investment criteria and consistent with its fiduciary
25 obligations, each board of trustees of a pension system shall
26 ensure that the pension system does not invest in any indirect
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1 investment vehicle unless the board of trustees is satisfied
2 that the investment vehicle is unlikely to have more than 2% of
3 its assets invested in coal, oil, or gas producers.
4 (e) Each pension system shall review the extent to which
5 the assets of the pension system are invested in the stocks,
6 securities, or other obligations of any fossil fuel company or
7 any subsidiary, affiliate, or parent of any fossil fuel
8 company. The board of trustees of a pension system shall, in
9 accordance with sound investment criteria and consistent with
10 fiduciary obligations, divest any such holdings. Divestment
11 pursuant to this subsection must be completed by January 1,
12 2028. Nothing in this subsection precludes de minimis exposure
13 of any funds held by the board to the stocks, securities, or
14 other obligations of any fossil fuel company or any
15 subsidiary, affiliate, or parent of any fossil fuel company.
16 (f) The board of trustees of a pension system may not
17 invest in any prime commercial paper or corporate bonds issued
18 by a fossil fuel company.
19 (g) On a quarterly basis, each pension system shall post
20 on its publicly accessible website information detailing all
21 its holdings in the public market and private equity
22 investments.
23 (h) Beginning January 1, 2024 and annually thereafter,
24 each pension system shall issue a report reviewing its
25 environmental, social, and governance investment policy. The
26 report must disclose commonly available environmental
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1 performance metrics on the environmental effects of the
2 pension system's investments.
3 Section 90. The State Mandates Act is amended by adding
4 Section 8.47 as follows:
5 (30 ILCS 805/8.47 new)
6 Sec. 8.47. Exempt mandate. Notwithstanding Sections 6 and
7 8 of this Act, no reimbursement by the State is required for
8 the implementation of any mandate created by this amendatory
9 Act of the 103rd General Assembly.
10 Section 99. Effective date. This Act takes effect upon
11 becoming law.
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