Illinois 2023-2024 Regular Session

Illinois Senate Bill SB2152 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	Public Act 103-0468
2	1		SB2152 EnrolledLRB103 30754 RPS 57236 b SB2152 Enrolled LRB103 30754 RPS 57236 b
3	2		SB2152 Enrolled LRB103 30754 RPS 57236 b
4		-	AN ACT concerning public employee benefits.
5		-	Be it enacted by the People of the State of Illinois,
6		-	represented in the General Assembly:
7		-	Section 5. The Illinois Pension Code is amended by
8		-	changing Section 22A-106 and by adding Sections 15-177.5,
9		-	15-177.6, 16-188, 16-189, 22A-113.4, and 22A-113.5 as follows:
10		-	(40 ILCS 5/15-177.5 new)
11		-	Sec. 15-177.5. Proxy voting.
12		-	(a) In this Section, "fiduciary" has the meaning given to
13		-	that term in Section 1-101.2.
14		-	(b) Notwithstanding the Board's investment authority, and
15		-	upon the affirmative vote of at least three-fifths of the
16		-	members of the Board, the State Treasurer shall be authorized
17		-	to manage the domestic and international proxy voting activity
18		-	for shares held directly by the System and execute required
19		-	ballots on behalf of the System. The Board's consent granted
20		-	under this Section may be revoked at any time upon the
21		-	affirmative vote of a majority of the members of the Board.
22		-	(c) When the State Treasurer is managing any proxy voting
23		-	activity in accordance with subsection (b), the following
24		-	shall apply: (1) the State Treasurer shall provide the Board
25		-	with (i) comprehensive proxy voting reports on a quarterly
26		-	basis and as requested by the Board and (ii) access to
	3	+	1 AN ACT concerning public employee benefits.
	4	+	2 Be it enacted by the People of the State of Illinois,
	5	+	3 represented in the General Assembly:
	6	+	4 Section 5. The Illinois Pension Code is amended by
	7	+	5 changing Section 22A-106 and by adding Sections 15-177.5,
	8	+	6 15-177.6, 16-188, 16-189, 22A-113.4, and 22A-113.5 as follows:
	9	+	7 (40 ILCS 5/15-177.5 new)
	10	+	8 Sec. 15-177.5. Proxy voting.
	11	+	9 (a) In this Section, "fiduciary" has the meaning given to
	12	+	10 that term in Section 1-101.2.
	13	+	11 (b) Notwithstanding the Board's investment authority, and
	14	+	12 upon the affirmative vote of at least three-fifths of the
	15	+	13 members of the Board, the State Treasurer shall be authorized
	16	+	14 to manage the domestic and international proxy voting activity
	17	+	15 for shares held directly by the System and execute required
	18	+	16 ballots on behalf of the System. The Board's consent granted
	19	+	17 under this Section may be revoked at any time upon the
	20	+	18 affirmative vote of a majority of the members of the Board.
	21	+	19 (c) When the State Treasurer is managing any proxy voting
	22	+	20 activity in accordance with subsection (b), the following
	23	+	21 shall apply: (1) the State Treasurer shall provide the Board
	24	+	22 with (i) comprehensive proxy voting reports on a quarterly
	25	+	23 basis and as requested by the Board and (ii) access to
27	26
28	27
29	28
30	29		SB2152 Enrolled LRB103 30754 RPS 57236 b
31	30
32	31
33		-	communications with its third-party proxy voting service, if
34		-	any, used in preparing the comprehensive proxy voting reports
35		-	requested by the Board; and (2) the Board may provide the State
36		-	Treasurer with guidance for proxy voting, which, if provided,
37		-	the State Treasurer shall consider when voting.
38		-	(d) The State Treasurer shall act as a fiduciary to the
39		-	System with regard to all aspects of the State Treasurer's
40		-	management of the proxy voting activity as provided under
41		-	subsection (b).
42		-	(e) With respect to this Section, and with respect to the
43		-	State Treasurer's management of the proxy voting activity as
44		-	provided for under subsection (b), the Board is exempt from
45		-	any conflicting statutory or common law obligations, including
46		-	any fiduciary or co-fiduciary duties under this Article and
47		-	Article 1.
48		-	(f) With respect to this Section and with respect to the
49		-	State Treasurer's management of the proxy voting activity as
50		-	provided for under subsection (b), the Board, its staff, and
51		-	the trustees of the Board shall not be liable for any damage or
52		-	suits where damages are sought for negligent or wrongful acts
53		-	alleged to have been committed in connection with the
54		-	management of proxy voting activity as provided for under this
55		-	Section.
56		-	(g) In order to facilitate the State Treasurer's proxy
57		-	voting activities under this Section and before the State
58		-	Treasurer begins proxy voting activities, the State Treasurer
	32	+	SB2152 Enrolled- 2 -LRB103 30754 RPS 57236 b SB2152 Enrolled - 2 - LRB103 30754 RPS 57236 b
	33	+	SB2152 Enrolled - 2 - LRB103 30754 RPS 57236 b
	34	+	1 communications with its third-party proxy voting service, if
	35	+	2 any, used in preparing the comprehensive proxy voting reports
	36	+	3 requested by the Board; and (2) the Board may provide the State
	37	+	4 Treasurer with guidance for proxy voting, which, if provided,
	38	+	5 the State Treasurer shall consider when voting.
	39	+	6 (d) The State Treasurer shall act as a fiduciary to the
	40	+	7 System with regard to all aspects of the State Treasurer's
	41	+	8 management of the proxy voting activity as provided under
	42	+	9 subsection (b).
	43	+	10 (e) With respect to this Section, and with respect to the
	44	+	11 State Treasurer's management of the proxy voting activity as
	45	+	12 provided for under subsection (b), the Board is exempt from
	46	+	13 any conflicting statutory or common law obligations, including
	47	+	14 any fiduciary or co-fiduciary duties under this Article and
	48	+	15 Article 1.
	49	+	16 (f) With respect to this Section and with respect to the
	50	+	17 State Treasurer's management of the proxy voting activity as
	51	+	18 provided for under subsection (b), the Board, its staff, and
	52	+	19 the trustees of the Board shall not be liable for any damage or
	53	+	20 suits where damages are sought for negligent or wrongful acts
	54	+	21 alleged to have been committed in connection with the
	55	+	22 management of proxy voting activity as provided for under this
	56	+	23 Section.
	57	+	24 (g) In order to facilitate the State Treasurer's proxy
	58	+	25 voting activities under this Section and before the State
	59	+	26 Treasurer begins proxy voting activities, the State Treasurer
59	60
60	61
61		-	and the Board shall enter into an intergovernmental agreement
62		-	concerning costs, proxy voting guidance, reports and other
63		-	documents, and other issues.
64		-	(h) This Section is repealed on January 1, 2027.
65		-	(40 ILCS 5/15-177.6 new)
66		-	Sec. 15-177.6. Fiduciary report. On or before September 1,
67		-	2023, and annually thereafter, the Board shall publish its
68		-	guidelines for voting proxy ballots and a detailed report on
69		-	its website describing how the Board is considering
70		-	sustainability factors as defined in the Illinois Sustainable
71		-	Investing Act. The report shall:
72		-	(1) describe the Board's strategy as it relates to the
73		-	consideration of sustainable investment factors;
74		-	(2) outline the process for regular assessment across
75		-	the total portfolio of potential effects from systemic and
76		-	regulatory risks and opportunities, including, but not
77		-	limited to, sustainability factors on the assets of the
78		-	plan;
79		-	(3) disclose how each investment manager serving as a
80		-	fiduciary to the Board integrates sustainability factors
81		-	into the investment manager's investment decision-making
82		-	process;
83		-	(4) provide a comprehensive proxy voting report;
84		-	(5) provide an overview of all corporate engagement
85		-	and stewardship activities; and
86	62
87	63
88		-	(6) include any other information the Board deems
89		-	necessary.
90		-	(40 ILCS 5/16-188 new)
91		-	Sec. 16-188. Proxy voting.
92		-	(a) In this Section, "fiduciary" has the meaning given to
93		-	that term in Section 1-101.2.
94		-	(b) Notwithstanding the Board's investment authority, and
95		-	upon the affirmative vote of at least three-fifths of the
96		-	members of the Board, the State Treasurer shall be authorized
97		-	to manage the domestic and international proxy voting activity
98		-	for shares held directly by the System and execute required
99		-	ballots on behalf of the System. The Board's consent granted
100		-	under this Section may be revoked at any time upon the
101		-	affirmative vote of a majority of the members of the Board.
102		-	(c) When the State Treasurer is managing any proxy voting
103		-	activity in accordance with subsection (b), the following
104		-	shall apply: (1) the State Treasurer shall provide the Board
105		-	with (i) comprehensive proxy voting reports on a quarterly
106		-	basis and as requested by the Board and (ii) access to
107		-	communications with its third-party proxy voting service, if
108		-	any, used in preparing the comprehensive proxy voting reports
109		-	requested by the Board; and (2) the Board may provide the State
110		-	Treasurer with guidance for proxy voting, which, if provided,
111		-	the State Treasurer shall consider when voting.
112		-	(d) The State Treasurer shall act as a fiduciary to the
	64	+
	65	+	SB2152 Enrolled - 2 - LRB103 30754 RPS 57236 b
113	66
114	67
115		-	System with regard to all aspects of the State Treasurer's
116		-	management of the proxy voting activity as provided under
117		-	subsection (b).
118		-	(e) With respect to this Section, and with respect to the
119		-	State Treasurer's management of the proxy voting activity as
120		-	provided for under subsection (b), the Board is exempt from
121		-	any conflicting statutory or common law obligations, including
122		-	any fiduciary or co-fiduciary duties under this Article and
123		-	Article 1.
124		-	(f) With respect to this Section and with respect to the
125		-	State Treasurer's management of the proxy voting activity as
126		-	provided for under subsection (b), the Board, its staff, and
127		-	the trustees of the Board shall not be liable for any damage or
128		-	suits where damages are sought for negligent or wrongful acts
129		-	alleged to have been committed in connection with the
130		-	management of proxy voting activity as provided for under this
131		-	Section.
132		-	(g) In order to facilitate the State Treasurer's proxy
133		-	voting activities under this Section and before the State
134		-	Treasurer begins proxy voting activities, the State Treasurer
135		-	and the Board shall enter into an intergovernmental agreement
136		-	concerning costs, proxy voting guidance, reports and other
137		-	documents, and other issues.
138		-	(h) This Section is repealed on January 1, 2027.
139		-	(40 ILCS 5/16-189 new)
	68	+	SB2152 Enrolled- 3 -LRB103 30754 RPS 57236 b SB2152 Enrolled - 3 - LRB103 30754 RPS 57236 b
	69	+	SB2152 Enrolled - 3 - LRB103 30754 RPS 57236 b
	70	+	1 and the Board shall enter into an intergovernmental agreement
	71	+	2 concerning costs, proxy voting guidance, reports and other
	72	+	3 documents, and other issues.
	73	+	4 (h) This Section is repealed on January 1, 2027.
	74	+	5 (40 ILCS 5/15-177.6 new)
	75	+	6 Sec. 15-177.6. Fiduciary report. On or before September 1,
	76	+	7 2023, and annually thereafter, the Board shall publish its
	77	+	8 guidelines for voting proxy ballots and a detailed report on
	78	+	9 its website describing how the Board is considering
	79	+	10 sustainability factors as defined in the Illinois Sustainable
	80	+	11 Investing Act. The report shall:
	81	+	12 (1) describe the Board's strategy as it relates to the
	82	+	13 consideration of sustainable investment factors;
	83	+	14 (2) outline the process for regular assessment across
	84	+	15 the total portfolio of potential effects from systemic and
	85	+	16 regulatory risks and opportunities, including, but not
	86	+	17 limited to, sustainability factors on the assets of the
	87	+	18 plan;
	88	+	19 (3) disclose how each investment manager serving as a
	89	+	20 fiduciary to the Board integrates sustainability factors
	90	+	21 into the investment manager's investment decision-making
	91	+	22 process;
	92	+	23 (4) provide a comprehensive proxy voting report;
	93	+	24 (5) provide an overview of all corporate engagement
	94	+	25 and stewardship activities; and
140	95
141	96
142		-	Sec. 16-189. Fiduciary report. On or before September 1,
143		-	2023, and annually thereafter, the Board shall publish its
144		-	guidelines for voting proxy ballots and a detailed report on
145		-	its website describing how the Board is considering
146		-	sustainability factors as defined in the Illinois Sustainable
147		-	Investing Act. The report shall:
148		-	(1) describe the Board's strategy as it relates to the
149		-	consideration of sustainable investment factors;
150		-	(2) outline the process for regular assessment across
151		-	the total portfolio of potential effects from systemic and
152		-	regulatory risks and opportunities, including, but not
153		-	limited to, sustainability factors on the assets of the
154		-	plan;
155		-	(3) disclose how each investment manager serving as a
156		-	fiduciary to the Board integrates sustainability factors
157		-	into the investment manager's investment decision-making
158		-	process;
159		-	(4) provide a comprehensive proxy voting report;
160		-	(5) provide an overview of all corporate engagement
161		-	and stewardship activities; and
162		-	(6) include any other information the Board deems
163		-	necessary.
164		-	(40 ILCS 5/22A-106) (from Ch. 108 1/2, par. 22A-106)
165		-	Sec. 22A-106. "Manage": To invest, reinvest, exchange and
166		-	to perform all investment functions with regard to reserves,
167	97
168	98
169		-	funds, assets, securities and moneys which the board is
170		-	authorized to invest, and to preserve and protect such
171		-	reserves, funds, assets, securities and moneys, including, but
172		-	not limited to, authority to vote any stocks, bonds or other
173		-	securities and to give general or special proxies or powers of
174		-	attorney with or without power of substitution, except that
175		-	the authority to vote proxies is subject to Section 22A-113.4.
176		-	This term shall not include any functions, duties and
177		-	responsibilities incident to the operation and administration
178		-	of pension funds or education fund other than that of
179		-	investments.
180		-	(Source: P.A. 84-1127.)
181		-	(40 ILCS 5/22A-113.4 new)
182		-	Sec. 22A-113.4. Proxy voting.
183		-	(a) In this Section, "fiduciary" has the meaning given to
184		-	that term in Section 1-101.2.
185		-	(b) Notwithstanding the Board's investment authority, and
186		-	upon the affirmative vote of at least three-fifths of the
187		-	members of the Board, the State Treasurer shall be authorized
188		-	to manage the domestic and international proxy voting activity
189		-	for shares held directly by the Board and execute required
190		-	ballots on behalf of the Board. The Board's consent granted
191		-	under this Section may be revoked at any time upon the
192		-	affirmative vote of a majority of the members of the Board.
193		-	(c) When the State Treasurer is managing any proxy voting
	99	+
	100	+	SB2152 Enrolled - 3 - LRB103 30754 RPS 57236 b
194	101
195	102
196		-	activity in accordance with subsection (b), the following
197		-	shall apply: (1) the State Treasurer shall provide the Board
198		-	with (i) comprehensive proxy voting reports on a quarterly
199		-	basis and as requested by the Board and (ii) access to
200		-	communications with its third-party proxy voting service, if
201		-	any, used in preparing the comprehensive proxy voting reports
202		-	requested by the Board; and (2) the Board may provide the State
203		-	Treasurer with guidance for proxy voting, which, if provided,
204		-	the State Treasurer shall consider when voting.
205		-	(d) The State Treasurer shall act as a fiduciary to the
206		-	Illinois State Board of Investment with regard to all aspects
207		-	of the State Treasurer's management of the proxy voting
208		-	activity as provided under subsection (b).
209		-	(e) With respect to this Section, and with respect to the
210		-	State Treasurer's management of the proxy voting activity as
211		-	provided for under subsection (b), the Board is exempt from
212		-	any conflicting statutory or common law obligations, including
213		-	any fiduciary or co-fiduciary duties under this Article and
214		-	Article 1.
215		-	(f) With respect to this Section and with respect to the
216		-	State Treasurer's management of the proxy voting activity as
217		-	provided for under subsection (b), the Board, its staff, and
218		-	the trustees of the Board shall not be liable for any damage or
219		-	suits where damages are sought for negligent or wrongful acts
220		-	alleged to have been committed in connection with the
221		-	management of proxy voting activity as provided for under this
	103	+	SB2152 Enrolled- 4 -LRB103 30754 RPS 57236 b SB2152 Enrolled - 4 - LRB103 30754 RPS 57236 b
	104	+	SB2152 Enrolled - 4 - LRB103 30754 RPS 57236 b
	105	+	1 (6) include any other information the Board deems
	106	+	2 necessary.
	107	+	3 (40 ILCS 5/16-188 new)
	108	+	4 Sec. 16-188. Proxy voting.
	109	+	5 (a) In this Section, "fiduciary" has the meaning given to
	110	+	6 that term in Section 1-101.2.
	111	+	7 (b) Notwithstanding the Board's investment authority, and
	112	+	8 upon the affirmative vote of at least three-fifths of the
	113	+	9 members of the Board, the State Treasurer shall be authorized
	114	+	10 to manage the domestic and international proxy voting activity
	115	+	11 for shares held directly by the System and execute required
	116	+	12 ballots on behalf of the System. The Board's consent granted
	117	+	13 under this Section may be revoked at any time upon the
	118	+	14 affirmative vote of a majority of the members of the Board.
	119	+	15 (c) When the State Treasurer is managing any proxy voting
	120	+	16 activity in accordance with subsection (b), the following
	121	+	17 shall apply: (1) the State Treasurer shall provide the Board
	122	+	18 with (i) comprehensive proxy voting reports on a quarterly
	123	+	19 basis and as requested by the Board and (ii) access to
	124	+	20 communications with its third-party proxy voting service, if
	125	+	21 any, used in preparing the comprehensive proxy voting reports
	126	+	22 requested by the Board; and (2) the Board may provide the State
	127	+	23 Treasurer with guidance for proxy voting, which, if provided,
	128	+	24 the State Treasurer shall consider when voting.
	129	+	25 (d) The State Treasurer shall act as a fiduciary to the
222	130
223	131
224		-	Section.
225		-	(g) In order to facilitate the State Treasurer's proxy
226		-	voting activities under this Section and before the State
227		-	Treasurer begins proxy voting activities, the State Treasurer
228		-	and the Board shall enter into an intergovernmental agreement
229		-	concerning costs, proxy voting guidance, reports and other
230		-	documents, and other issues.
231		-	(h) This Section is repealed on January 1, 2027.
232		-	(40 ILCS 5/22A-113.5 new)
233		-	Sec. 22A-113.5. Fiduciary report. On or before September
234		-	1, 2023, and annually thereafter, the Board shall publish its
235		-	guidelines for voting proxy ballots and a detailed report on
236		-	its website describing how the Board is considering
237		-	sustainability factors as defined in the Illinois Sustainable
238		-	Investing Act. The report shall:
239		-	(1) describe the Board's strategy as it relates to the
240		-	consideration of sustainable investment factors;
241		-	(2) outline the process for regular assessment across
242		-	the total portfolio of potential effects from systemic and
243		-	regulatory risks and opportunities, including, but not
244		-	limited to, sustainability factors on the assets of the
245		-	plan;
246		-	(3) disclose how each investment manager serving as a
247		-	fiduciary to the Board integrates sustainability factors
248		-	into the investment manager's investment decision-making
249	132
250	133
251		-	process;
252		-	(4) provide a comprehensive proxy voting report;
253		-	(5) provide an overview of all corporate engagement
254		-	and stewardship activities; and
255		-	(6) include any other information the Board deems
256		-	necessary.
257		-	Section 99. Effective date. This Act takes effect upon
258		-	becoming law.
	134	+
	135	+	SB2152 Enrolled - 4 - LRB103 30754 RPS 57236 b
	136	+
	137	+
	138	+	SB2152 Enrolled- 5 -LRB103 30754 RPS 57236 b SB2152 Enrolled - 5 - LRB103 30754 RPS 57236 b
	139	+	SB2152 Enrolled - 5 - LRB103 30754 RPS 57236 b
	140	+	1 System with regard to all aspects of the State Treasurer's
	141	+	2 management of the proxy voting activity as provided under
	142	+	3 subsection (b).
	143	+	4 (e) With respect to this Section, and with respect to the
	144	+	5 State Treasurer's management of the proxy voting activity as
	145	+	6 provided for under subsection (b), the Board is exempt from
	146	+	7 any conflicting statutory or common law obligations, including
	147	+	8 any fiduciary or co-fiduciary duties under this Article and
	148	+	9 Article 1.
	149	+	10 (f) With respect to this Section and with respect to the
	150	+	11 State Treasurer's management of the proxy voting activity as
	151	+	12 provided for under subsection (b), the Board, its staff, and
	152	+	13 the trustees of the Board shall not be liable for any damage or
	153	+	14 suits where damages are sought for negligent or wrongful acts
	154	+	15 alleged to have been committed in connection with the
	155	+	16 management of proxy voting activity as provided for under this
	156	+	17 Section.
	157	+	18 (g) In order to facilitate the State Treasurer's proxy
	158	+	19 voting activities under this Section and before the State
	159	+	20 Treasurer begins proxy voting activities, the State Treasurer
	160	+	21 and the Board shall enter into an intergovernmental agreement
	161	+	22 concerning costs, proxy voting guidance, reports and other
	162	+	23 documents, and other issues.
	163	+	24 (h) This Section is repealed on January 1, 2027.
	164	+	25 (40 ILCS 5/16-189 new)
	165	+
	166	+
	167	+
	168	+
	169	+
	170	+	SB2152 Enrolled - 5 - LRB103 30754 RPS 57236 b
	171	+
	172	+
	173	+	SB2152 Enrolled- 6 -LRB103 30754 RPS 57236 b SB2152 Enrolled - 6 - LRB103 30754 RPS 57236 b
	174	+	SB2152 Enrolled - 6 - LRB103 30754 RPS 57236 b
	175	+	1 Sec. 16-189. Fiduciary report. On or before September 1,
	176	+	2 2023, and annually thereafter, the Board shall publish its
	177	+	3 guidelines for voting proxy ballots and a detailed report on
	178	+	4 its website describing how the Board is considering
	179	+	5 sustainability factors as defined in the Illinois Sustainable
	180	+	6 Investing Act. The report shall:
	181	+	7 (1) describe the Board's strategy as it relates to the
	182	+	8 consideration of sustainable investment factors;
	183	+	9 (2) outline the process for regular assessment across
	184	+	10 the total portfolio of potential effects from systemic and
	185	+	11 regulatory risks and opportunities, including, but not
	186	+	12 limited to, sustainability factors on the assets of the
	187	+	13 plan;
	188	+	14 (3) disclose how each investment manager serving as a
	189	+	15 fiduciary to the Board integrates sustainability factors
	190	+	16 into the investment manager's investment decision-making
	191	+	17 process;
	192	+	18 (4) provide a comprehensive proxy voting report;
	193	+	19 (5) provide an overview of all corporate engagement
	194	+	20 and stewardship activities; and
	195	+	21 (6) include any other information the Board deems
	196	+	22 necessary.
	197	+	23 (40 ILCS 5/22A-106) (from Ch. 108 1/2, par. 22A-106)
	198	+	24 Sec. 22A-106. "Manage": To invest, reinvest, exchange and
	199	+	25 to perform all investment functions with regard to reserves,
	200	+
	201	+
	202	+
	203	+
	204	+
	205	+	SB2152 Enrolled - 6 - LRB103 30754 RPS 57236 b
	206	+
	207	+
	208	+	SB2152 Enrolled- 7 -LRB103 30754 RPS 57236 b SB2152 Enrolled - 7 - LRB103 30754 RPS 57236 b
	209	+	SB2152 Enrolled - 7 - LRB103 30754 RPS 57236 b
	210	+	1 funds, assets, securities and moneys which the board is
	211	+	2 authorized to invest, and to preserve and protect such
	212	+	3 reserves, funds, assets, securities and moneys, including, but
	213	+	4 not limited to, authority to vote any stocks, bonds or other
	214	+	5 securities and to give general or special proxies or powers of
	215	+	6 attorney with or without power of substitution, except that
	216	+	7 the authority to vote proxies is subject to Section 22A-113.4.
	217	+	8 This term shall not include any functions, duties and
	218	+	9 responsibilities incident to the operation and administration
	219	+	10 of pension funds or education fund other than that of
	220	+	11 investments.
	221	+	12 (Source: P.A. 84-1127.)
	222	+	13 (40 ILCS 5/22A-113.4 new)
	223	+	14 Sec. 22A-113.4. Proxy voting.
	224	+	15 (a) In this Section, "fiduciary" has the meaning given to
	225	+	16 that term in Section 1-101.2.
	226	+	17 (b) Notwithstanding the Board's investment authority, and
	227	+	18 upon the affirmative vote of at least three-fifths of the
	228	+	19 members of the Board, the State Treasurer shall be authorized
	229	+	20 to manage the domestic and international proxy voting activity
	230	+	21 for shares held directly by the Board and execute required
	231	+	22 ballots on behalf of the Board. The Board's consent granted
	232	+	23 under this Section may be revoked at any time upon the
	233	+	24 affirmative vote of a majority of the members of the Board.
	234	+	25 (c) When the State Treasurer is managing any proxy voting
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	245	+	1 activity in accordance with subsection (b), the following
	246	+	2 shall apply: (1) the State Treasurer shall provide the Board
	247	+	3 with (i) comprehensive proxy voting reports on a quarterly
	248	+	4 basis and as requested by the Board and (ii) access to
	249	+	5 communications with its third-party proxy voting service, if
	250	+	6 any, used in preparing the comprehensive proxy voting reports
	251	+	7 requested by the Board; and (2) the Board may provide the State
	252	+	8 Treasurer with guidance for proxy voting, which, if provided,
	253	+	9 the State Treasurer shall consider when voting.
	254	+	10 (d) The State Treasurer shall act as a fiduciary to the
	255	+	11 Illinois State Board of Investment with regard to all aspects
	256	+	12 of the State Treasurer's management of the proxy voting
	257	+	13 activity as provided under subsection (b).
	258	+	14 (e) With respect to this Section, and with respect to the
	259	+	15 State Treasurer's management of the proxy voting activity as
	260	+	16 provided for under subsection (b), the Board is exempt from
	261	+	17 any conflicting statutory or common law obligations, including
	262	+	18 any fiduciary or co-fiduciary duties under this Article and
	263	+	19 Article 1.
	264	+	20 (f) With respect to this Section and with respect to the
	265	+	21 State Treasurer's management of the proxy voting activity as
	266	+	22 provided for under subsection (b), the Board, its staff, and
	267	+	23 the trustees of the Board shall not be liable for any damage or
	268	+	24 suits where damages are sought for negligent or wrongful acts
	269	+	25 alleged to have been committed in connection with the
	270	+	26 management of proxy voting activity as provided for under this
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	281	+	1 Section.
	282	+	2 (g) In order to facilitate the State Treasurer's proxy
	283	+	3 voting activities under this Section and before the State
	284	+	4 Treasurer begins proxy voting activities, the State Treasurer
	285	+	5 and the Board shall enter into an intergovernmental agreement
	286	+	6 concerning costs, proxy voting guidance, reports and other
	287	+	7 documents, and other issues.
	288	+	8 (h) This Section is repealed on January 1, 2027.
	289	+	9 (40 ILCS 5/22A-113.5 new)
	290	+	10 Sec. 22A-113.5. Fiduciary report. On or before September
	291	+	11 1, 2023, and annually thereafter, the Board shall publish its
	292	+	12 guidelines for voting proxy ballots and a detailed report on
	293	+	13 its website describing how the Board is considering
	294	+	14 sustainability factors as defined in the Illinois Sustainable
	295	+	15 Investing Act. The report shall:
	296	+	16 (1) describe the Board's strategy as it relates to the
	297	+	17 consideration of sustainable investment factors;
	298	+	18 (2) outline the process for regular assessment across
	299	+	19 the total portfolio of potential effects from systemic and
	300	+	20 regulatory risks and opportunities, including, but not
	301	+	21 limited to, sustainability factors on the assets of the
	302	+	22 plan;
	303	+	23 (3) disclose how each investment manager serving as a
	304	+	24 fiduciary to the Board integrates sustainability factors
	305	+	25 into the investment manager's investment decision-making
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	316	+	1 process;
	317	+	2 (4) provide a comprehensive proxy voting report;
	318	+	3 (5) provide an overview of all corporate engagement
	319	+	4 and stewardship activities; and
	320	+	5 (6) include any other information the Board deems
	321	+	6 necessary.
	322	+	7 Section 99. Effective date. This Act takes effect upon
	323	+	8 becoming law.
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