Illinois 2025-2026 Regular Session

Illinois House Bill HB2780 Compare Versions

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

Old	New	Differences
1	1	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB2780 Introduced , by Rep. Martin J. Moylan SYNOPSIS AS INTRODUCED: 40 ILCS 5/1-110.13 new40 ILCS 5/1-110.16 Amends the General Provisions Article of the Illinois Pension Code. With regard to the 5 State-funded retirement systems, provides that the following are forbidden entities for purposes of investment and certain other transactions: Hamas; any company or entity that is wholly or partially managed or controlled by Hamas; any company identified by the Office of Foreign Assets Control in the United States Department of the Treasury as sponsoring terrorist activities in conjunction with Hamas or under specified regulations pertaining to terrorism sanctions; any company that has been fined, penalized, or sanctioned by the Office of Foreign Assets Control in the United States Department of the Treasury for any violation of any United States rules and restrictions relating to Hamas that occurred at any time following the effective date of the amendatory Act; or any company that has business operations that involve contracts with or the provision of supplies or services to Hamas, companies in which Hamas has any direct or indirect equity share, or consortiums or projects commissioned by Hamas. Provides that a retirement system shall not transfer or disburse funds to, deposit into, acquire any bonds or commercial paper from, or otherwise loan to or invest in any entity unless a certifying company certifies to the retirement system that: (1) with respect to investments in a publicly traded company, the certifying company has relied on information provided by an independent researching firm that specializes in global security risk; and (2) 100% of the retirement system's assets for which the certifying company provides services or advice are not and have not been invested or reinvested in any forbidden entity at any time after 4 months after the effective date of the amendatory Act. Requires the Illinois Investment Policy Board to make its best efforts to identify all Hamas-restricted companies and include those companies in the list of restricted companies for purposes of investment distributed to each retirement system and the Illinois State Board of Investment. Makes conforming changes. LRB104 11964 JDS 22057 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB2780 Introduced , by Rep. Martin J. Moylan SYNOPSIS AS INTRODUCED: 40 ILCS 5/1-110.13 new40 ILCS 5/1-110.16 40 ILCS 5/1-110.13 new 40 ILCS 5/1-110.16 Amends the General Provisions Article of the Illinois Pension Code. With regard to the 5 State-funded retirement systems, provides that the following are forbidden entities for purposes of investment and certain other transactions: Hamas; any company or entity that is wholly or partially managed or controlled by Hamas; any company identified by the Office of Foreign Assets Control in the United States Department of the Treasury as sponsoring terrorist activities in conjunction with Hamas or under specified regulations pertaining to terrorism sanctions; any company that has been fined, penalized, or sanctioned by the Office of Foreign Assets Control in the United States Department of the Treasury for any violation of any United States rules and restrictions relating to Hamas that occurred at any time following the effective date of the amendatory Act; or any company that has business operations that involve contracts with or the provision of supplies or services to Hamas, companies in which Hamas has any direct or indirect equity share, or consortiums or projects commissioned by Hamas. Provides that a retirement system shall not transfer or disburse funds to, deposit into, acquire any bonds or commercial paper from, or otherwise loan to or invest in any entity unless a certifying company certifies to the retirement system that: (1) with respect to investments in a publicly traded company, the certifying company has relied on information provided by an independent researching firm that specializes in global security risk; and (2) 100% of the retirement system's assets for which the certifying company provides services or advice are not and have not been invested or reinvested in any forbidden entity at any time after 4 months after the effective date of the amendatory Act. Requires the Illinois Investment Policy Board to make its best efforts to identify all Hamas-restricted companies and include those companies in the list of restricted companies for purposes of investment distributed to each retirement system and the Illinois State Board of Investment. Makes conforming changes. LRB104 11964 JDS 22057 b LRB104 11964 JDS 22057 b A BILL FOR
2	2	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB2780 Introduced , by Rep. Martin J. Moylan SYNOPSIS AS INTRODUCED:
3	3	40 ILCS 5/1-110.13 new40 ILCS 5/1-110.16 40 ILCS 5/1-110.13 new 40 ILCS 5/1-110.16
4	4	40 ILCS 5/1-110.13 new
5	5	40 ILCS 5/1-110.16
6	6	Amends the General Provisions Article of the Illinois Pension Code. With regard to the 5 State-funded retirement systems, provides that the following are forbidden entities for purposes of investment and certain other transactions: Hamas; any company or entity that is wholly or partially managed or controlled by Hamas; any company identified by the Office of Foreign Assets Control in the United States Department of the Treasury as sponsoring terrorist activities in conjunction with Hamas or under specified regulations pertaining to terrorism sanctions; any company that has been fined, penalized, or sanctioned by the Office of Foreign Assets Control in the United States Department of the Treasury for any violation of any United States rules and restrictions relating to Hamas that occurred at any time following the effective date of the amendatory Act; or any company that has business operations that involve contracts with or the provision of supplies or services to Hamas, companies in which Hamas has any direct or indirect equity share, or consortiums or projects commissioned by Hamas. Provides that a retirement system shall not transfer or disburse funds to, deposit into, acquire any bonds or commercial paper from, or otherwise loan to or invest in any entity unless a certifying company certifies to the retirement system that: (1) with respect to investments in a publicly traded company, the certifying company has relied on information provided by an independent researching firm that specializes in global security risk; and (2) 100% of the retirement system's assets for which the certifying company provides services or advice are not and have not been invested or reinvested in any forbidden entity at any time after 4 months after the effective date of the amendatory Act. Requires the Illinois Investment Policy Board to make its best efforts to identify all Hamas-restricted companies and include those companies in the list of restricted companies for purposes of investment distributed to each retirement system and the Illinois State Board of Investment. Makes conforming changes.
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12	12	1 AN ACT concerning public employee benefits.
13	13	2 Be it enacted by the People of the State of Illinois,
14	14	3 represented in the General Assembly:
15	15	4 Section 5. The Illinois Pension Code is amended by
16	16	5 changing Section 1-110.16 and by adding Section 1-110.13 as
17	17	6 follows:
18	18	7 (40 ILCS 5/1-110.13 new)
19	19	8 Sec. 1-110.13. Transactions prohibited by retirement
20	20	9 systems; Hamas.
21	21	10 (a) The Government of the United States has determined
22	22	11 that Hamas is a Foreign Terrorist Organization that sponsors
23	23	12 terrorism and genocide. The General Assembly finds that acts
24	24	13 of terrorism have caused injury and death to Illinois and
25	25	14 United States residents who serve in the United States
26	26	15 military, and pose a significant threat to safety and health
27	27	16 in Illinois. The General Assembly finds that public employees
28	28	17 and their families, including police officers and
29	29	18 firefighters, are more likely than others to be affected by
30	30	19 acts of terrorism. The General Assembly finds that Hamas
31	31	20 continues to solicit investment and commercial activities by
32	32	21 forbidden entities, including private market funds. The
33	33	22 General Assembly finds that investments in forbidden entities
34	34	23 are inherently and unduly risky, not in the interests of
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38	38	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB2780 Introduced , by Rep. Martin J. Moylan SYNOPSIS AS INTRODUCED:
39	39	40 ILCS 5/1-110.13 new40 ILCS 5/1-110.16 40 ILCS 5/1-110.13 new 40 ILCS 5/1-110.16
40	40	40 ILCS 5/1-110.13 new
41	41	40 ILCS 5/1-110.16
42	42	Amends the General Provisions Article of the Illinois Pension Code. With regard to the 5 State-funded retirement systems, provides that the following are forbidden entities for purposes of investment and certain other transactions: Hamas; any company or entity that is wholly or partially managed or controlled by Hamas; any company identified by the Office of Foreign Assets Control in the United States Department of the Treasury as sponsoring terrorist activities in conjunction with Hamas or under specified regulations pertaining to terrorism sanctions; any company that has been fined, penalized, or sanctioned by the Office of Foreign Assets Control in the United States Department of the Treasury for any violation of any United States rules and restrictions relating to Hamas that occurred at any time following the effective date of the amendatory Act; or any company that has business operations that involve contracts with or the provision of supplies or services to Hamas, companies in which Hamas has any direct or indirect equity share, or consortiums or projects commissioned by Hamas. Provides that a retirement system shall not transfer or disburse funds to, deposit into, acquire any bonds or commercial paper from, or otherwise loan to or invest in any entity unless a certifying company certifies to the retirement system that: (1) with respect to investments in a publicly traded company, the certifying company has relied on information provided by an independent researching firm that specializes in global security risk; and (2) 100% of the retirement system's assets for which the certifying company provides services or advice are not and have not been invested or reinvested in any forbidden entity at any time after 4 months after the effective date of the amendatory Act. Requires the Illinois Investment Policy Board to make its best efforts to identify all Hamas-restricted companies and include those companies in the list of restricted companies for purposes of investment distributed to each retirement system and the Illinois State Board of Investment. Makes conforming changes.
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45	45	A BILL FOR
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52	52	40 ILCS 5/1-110.16
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71	71	1 public pensioners and Illinois taxpayers, and against public
72	72	2 policy. The General Assembly finds that Hamas's capacity to
73	73	3 sponsor terrorism and genocide depends on or is supported by
74	74	4 the activities of forbidden entities. The General Assembly
75	75	5 further finds and re-affirms that the people of the State,
76	76	6 acting through their representatives, do not want to be
77	77	7 associated with forbidden entities, genocide, and terrorism.
78	78	8 (b) For purposes of this Section:
79	79	9 "Business operations" means maintaining, selling, or
80	80	10 leasing equipment, facilities, personnel, or any other
81	81	11 apparatus of business or commerce to Hamas.
82	82	12 "Certifying company" means a company that (1) directly
83	83	13 provides asset management services or advice to a retirement
84	84	14 system or (2) as directly authorized or requested by a
85	85	15 retirement system (A) identifies particular investment options
86	86	16 for consideration or approval; (B) chooses particular
87	87	17 investment options; or (C) allocates particular amounts to be
88	88	18 invested. If no company meets the criteria set forth in this
89	89	19 paragraph, then "certifying company" means the retirement
90	90	20 system officer who, as designated by the board, executes the
91	91	21 investment decisions made by the board, or, in the
92	92	22 alternative, the company that the board authorizes to complete
93	93	23 the certification as the agent of that officer.
94	94	24 "Company" is any entity capable of affecting commerce,
95	95	25 including, but not limited to: (i) a government, governmental
96	96	26 agency, natural person, legal person, sole proprietorship,
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107	107	1 partnership, firm, corporation, subsidiary, affiliate,
108	108	2 franchisor, franchisee, joint venture, trade association,
109	109	3 financial institution, utility, public franchise, provider of
110	110	4 financial services, trust, or enterprise; and (ii) any
111	111	5 association thereof.
112	112	6 "Division" means the Public Pension Division of the
113	113	7 Department of Insurance.
114	114	8 "Forbidden entity" means any of the following:
115	115	9 (1) Hamas;
116	116	10 (2) any company or entity that is wholly or partially
117	117	11 managed or controlled by Hamas;
118	118	12 (3) any company (i) identified by the Office of
119	119	13 Foreign Assets Control in the United States Department of
120	120	14 the Treasury as sponsoring terrorist activities in
121	121	15 conjunction with Hamas or, with regard to Hamas, under the
122	122	16 Global Terrorism Sanctions Regulations (31 CFR Part 594)
123	123	17 or the Foreign Terrorist Organization Sanctions
124	124	18 Regulations (31 CFR Part 597); or (ii) fined, penalized,
125	125	19 or sanctioned by the Office of Foreign Assets Control in
126	126	20 the United States Department of the Treasury for any
127	127	21 violation of any United States rules and restrictions
128	128	22 relating to Hamas that occurred at any time following the
129	129	23 effective date of this amendatory Act of the 104th General
130	130	24 Assembly; or
131	131	25 (4) any company that has business operations that
132	132	26 involve contracts with or the provision of supplies or
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143	143	1 services to Hamas, companies in which Hamas has any direct
144	144	2 or indirect equity share, or consortiums or projects
145	145	3 commissioned by Hamas.
146	146	4 "Forbidden entity" does not include: (A) mutual funds that
147	147	5 meet the requirements of item (iii) of paragraph (13) of
148	148	6 Section 1-113.2; and (B) companies that transact business with
149	149	7 Hamas under the law, license, or permit of the United States,
150	150	8 including a license from the United States Department of the
151	151	9 Treasury, and companies, except Hamas, that are certified as
152	152	10 Non-Government Organizations by the United Nations or that
153	153	11 engage solely in (i) the provision of goods and services
154	154	12 intended to relieve human suffering or to promote welfare,
155	155	13 health, religious and spiritual activities, and education or
156	156	14 humanitarian purposes; or (ii) journalistic activities.
157	157	15 "Hamas" means the organizations commonly known as Hamas
158	158	16 and Palestinian Islamic Jihad that are subject to sanction or
159	159	17 other restrictions placed on commercial activity imposed by
160	160	18 the United States government due to an executive or
161	161	19 congressional declaration as a Foreign Terrorist Organization.
162	162	20 "Private market fund" means any private equity fund,
163	163	21 private equity fund of funds, venture capital fund, hedge
164	164	22 fund, hedge fund of funds, real estate fund, or other
165	165	23 investment vehicle that is not publicly traded.
166	166	24 "Retirement system" means the General Assembly Retirement
167	167	25 System, the State Employees' Retirement System of Illinois,
168	168	26 the State Universities Retirement System, the Teachers'
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179	179	1 Retirement System of the State of Illinois, and the Judges
180	180	2 Retirement System of Illinois.
181	181	3 (c) A retirement system shall not transfer or disburse
182	182	4 funds to, deposit into, acquire any bonds or commercial paper
183	183	5 from, or otherwise loan to or invest in any entity unless, as
184	184	6 provided in this Section, a certifying company certifies to
185	185	7 the retirement system that, (1) with respect to investments in
186	186	8 a publicly traded company, the certifying company has relied
187	187	9 on information provided by an independent researching firm
188	188	10 that specializes in global security risk and (2) 100% of the
189	189	11 retirement system's assets for which the certifying company
190	190	12 provides services or advice are not and have not been invested
191	191	13 or reinvested in any forbidden entity at any time after 4
192	192	14 months after the effective date of this amendatory Act of the
193	193	15 104th General Assembly.
194	194	16 The certifying company shall make the certification
195	195	17 required under this subsection (c) to a retirement system 6
196	196	18 months after the effective date of this amendatory Act of the
197	197	19 104th General Assembly and annually thereafter. A retirement
198	198	20 system shall submit the certifications to the Division, and
199	199	21 the Division shall notify the Director of Insurance if a
200	200	22 retirement system fails to do so.
201	201	23 (d) In addition to any other penalties and remedies
202	202	24 available under State or federal law, any transaction that
203	203	25 violates the provisions of this Section shall be against
204	204	26 public policy and voidable, at the sole discretion of the
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215	215	1 retirement system.
216	216	2 (e) This Section shall have full force and effect during
217	217	3 any period in which Hamas, or the officials of Hamas, are
218	218	4 subject to sanctions authorized under any statute or executive
219	219	5 order of the United States or until the State Department of the
220	220	6 United States confirms in the federal register or through
221	221	7 other means that Hamas is no longer subject to sanctions by the
222	222	8 government of the United States.
223	223	9 (f) If any provision of this Section or its application to
224	224	10 any person or circumstance is held invalid, the invalidity of
225	225	11 that provision or application does not affect other provisions
226	226	12 or applications of this Section that can be given effect
227	227	13 without the invalid provision or application.
228	228	14 (40 ILCS 5/1-110.16)
229	229	15 Sec. 1-110.16. Transactions prohibited by retirement
230	230	16 systems; companies that boycott Israel, for-profit companies
231	231	17 that contract to shelter migrant children, Iran-restricted
232	232	18 companies, Sudan-restricted companies, Hamas-restricted
233	233	19 companies, expatriated entities, companies that are domiciled
234	234	20 or have their principal place of business in Russia or
235	235	21 Belarus, and companies that are subject to Russian Harmful
236	236	22 Foreign Activities Sanctions.
237	237	23 (a) As used in this Section:
238	238	24 "Boycott Israel" means engaging in actions that are
239	239	25 politically motivated and are intended to penalize, inflict
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250	250	1 economic harm on, or otherwise limit commercial relations with
251	251	2 the State of Israel or companies based in the State of Israel
252	252	3 or in territories controlled by the State of Israel.
253	253	4 "Company" means any sole proprietorship, organization,
254	254	5 association, corporation, partnership, joint venture, limited
255	255	6 partnership, limited liability partnership, limited liability
256	256	7 company, or other entity or business association, including
257	257	8 all wholly owned subsidiaries, majority-owned subsidiaries,
258	258	9 parent companies, or affiliates of those entities or business
259	259	10 associations, that exist for the purpose of making profit.
260	260	11 "Company that is subject to Russian Harmful Foreign
261	261	12 Activities Sanctions" means a company that is subject to
262	262	13 sanctions under the Russian Harmful Foreign Activities
263	263	14 Sanctions Regulations (31 CFR Part 587), any Presidential
264	264	15 Executive Order imposing sanctions against Russia, or any
265	265	16 federal directive issued pursuant to any such Executive Order.
266	266	17 "Contract to shelter migrant children" means entering into
267	267	18 a contract with the federal government to shelter migrant
268	268	19 children under the federal Unaccompanied Alien Children
269	269	20 Program or a substantially similar federal program.
270	270	21 "Direct holdings" in a company means all publicly traded
271	271	22 securities of that company that are held directly by the
272	272	23 retirement system in an actively managed account or fund in
273	273	24 which the retirement system owns all shares or interests.
274	274	25 "Expatriated entity" has the meaning ascribed to it in
275	275	26 Section 1-15.120 of the Illinois Procurement Code.
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286	286	1 "Hamas-restricted company" means a company that meets the
287	287	2 qualifications under Section 1-110.13 of this Code.
288	288	3 "Illinois Investment Policy Board" means the board
289	289	4 established under subsection (b) of this Section.
290	290	5 "Indirect holdings" in a company means all securities of
291	291	6 that company that are held in an account or fund, such as a
292	292	7 mutual fund, managed by one or more persons not employed by the
293	293	8 retirement system, in which the retirement system owns shares
294	294	9 or interests together with other investors not subject to the
295	295	10 provisions of this Section or that are held in an index fund.
296	296	11 "Iran-restricted company" means a company that meets the
297	297	12 qualifications under Section 1-110.15 of this Code.
298	298	13 "Private market fund" means any private equity fund,
299	299	14 private equity funds of funds, venture capital fund, hedge
300	300	15 fund, hedge fund of funds, real estate fund, or other
301	301	16 investment vehicle that is not publicly traded.
302	302	17 "Restricted companies" means companies that boycott
303	303	18 Israel, for-profit companies that contract to shelter migrant
304	304	19 children, Iran-restricted companies, Sudan-restricted
305	305	20 companies, Hamas-restricted companies, expatriated entities,
306	306	21 companies that are domiciled or have their principal place of
307	307	22 business in Russia or Belarus, and companies that are subject
308	308	23 to Russian Harmful Foreign Activities Sanctions.
309	309	24 "Retirement system" means a retirement system established
310	310	25 under Article 2, 14, 15, 16, or 18 of this Code or the Illinois
311	311	26 State Board of Investment.
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322	322	1 "Sudan-restricted company" means a company that meets the
323	323	2 qualifications under Section 1-110.6 of this Code.
324	324	3 (b) There shall be established an Illinois Investment
325	325	4 Policy Board. The Illinois Investment Policy Board shall
326	326	5 consist of 7 members. Each board of a pension fund or
327	327	6 investment board created under Article 15, 16, or 22A of this
328	328	7 Code shall appoint one member, and the Governor shall appoint
329	329	8 4 members. The Governor shall designate one member of the
330	330	9 Board as the Chairperson.
331	331	10 (b-5) The term of office of each member appointed by the
332	332	11 Governor, who is serving on the Board on June 30, 2022, is
333	333	12 abolished on that date. The terms of office of members
334	334	13 appointed by the Governor after June 30, 2022 shall be as
335	335	14 follows: 2 initial members shall be appointed for terms of 2
336	336	15 years, and 2 initial members shall be appointed for terms of 4
337	337	16 years. Thereafter, the members appointed by the Governor shall
338	338	17 hold office for 4 years, except that any member chosen to fill
339	339	18 a vacancy occurring otherwise than by expiration of a term
340	340	19 shall be appointed only for the unexpired term of the member
341	341	20 whom he or she shall succeed. Board members may be
342	342	21 reappointed. The Governor may remove a Governor's appointee to
343	343	22 the Board for incompetence, neglect of duty, malfeasance, or
344	344	23 inability to serve.
345	345	24 (c) Notwithstanding any provision of law to the contrary,
346	346	25 beginning January 1, 2016, Sections 1-110.15 and 1-110.6 of
347	347	26 this Code shall be administered in accordance with this
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358	358	1 Section.
359	359	2 (d) By April 1, 2016, the Illinois Investment Policy Board
360	360	3 shall make its best efforts to identify all Iran-restricted
361	361	4 companies, Sudan-restricted companies, and companies that
362	362	5 boycott Israel and assemble those identified companies into a
363	363	6 list of restricted companies, to be distributed to each
364	364	7 retirement system.
365	365	8 These efforts shall include the following, as appropriate
366	366	9 in the Illinois Investment Policy Board's judgment:
367	367	10 (1) reviewing and relying on publicly available
368	368	11 information regarding Iran-restricted companies,
369	369	12 Sudan-restricted companies, and companies that boycott
370	370	13 Israel, including information provided by nonprofit
371	371	14 organizations, research firms, and government entities;
372	372	15 (2) contacting asset managers contracted by the
373	373	16 retirement systems that invest in Iran-restricted
374	374	17 companies, Sudan-restricted companies, and companies that
375	375	18 boycott Israel;
376	376	19 (3) contacting other institutional investors that have
377	377	20 divested from or engaged with Iran-restricted companies,
378	378	21 Sudan-restricted companies, and companies that boycott
379	379	22 Israel; and
380	380	23 (4) retaining an independent research firm to identify
381	381	24 Iran-restricted companies, Sudan-restricted companies,
382	382	25 and companies that boycott Israel.
383	383	26 The Illinois Investment Policy Board shall review the list
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394	394	1 of restricted companies on a quarterly basis based on evolving
395	395	2 information from, among other sources, those listed in this
396	396	3 subsection (d) and distribute any updates to the list of
397	397	4 restricted companies to the retirement systems and the State
398	398	5 Treasurer.
399	399	6 By April 1, 2018, the Illinois Investment Policy Board
400	400	7 shall make its best efforts to identify all expatriated
401	401	8 entities and include those companies in the list of restricted
402	402	9 companies distributed to each retirement system and the State
403	403	10 Treasurer. These efforts shall include the following, as
404	404	11 appropriate in the Illinois Investment Policy Board's
405	405	12 judgment:
406	406	13 (1) reviewing and relying on publicly available
407	407	14 information regarding expatriated entities, including
408	408	15 information provided by nonprofit organizations, research
409	409	16 firms, and government entities;
410	410	17 (2) contacting asset managers contracted by the
411	411	18 retirement systems that invest in expatriated entities;
412	412	19 (3) contacting other institutional investors that have
413	413	20 divested from or engaged with expatriated entities; and
414	414	21 (4) retaining an independent research firm to identify
415	415	22 expatriated entities.
416	416	23 By July 1, 2022, the Illinois Investment Policy Board
417	417	24 shall make its best efforts to identify all for-profit
418	418	25 companies that contract to shelter migrant children and
419	419	26 include those companies in the list of restricted companies
420	420
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430	430	1 distributed to each retirement system. These efforts shall
431	431	2 include the following, as appropriate in the Illinois
432	432	3 Investment Policy Board's judgment:
433	433	4 (1) reviewing and relying on publicly available
434	434	5 information regarding for-profit companies that contract
435	435	6 to shelter migrant children, including information
436	436	7 provided by nonprofit organizations, research firms, and
437	437	8 government entities;
438	438	9 (2) contacting asset managers contracted by the
439	439	10 retirement systems that invest in for-profit companies
440	440	11 that contract to shelter migrant children;
441	441	12 (3) contacting other institutional investors that have
442	442	13 divested from or engaged with for-profit companies that
443	443	14 contract to shelter migrant children; and
444	444	15 (4) retaining an independent research firm to identify
445	445	16 for-profit companies that contract to shelter migrant
446	446	17 children.
447	447	18 No later than 6 months after the effective date of this
448	448	19 amendatory Act of the 102nd General Assembly, the Illinois
449	449	20 Investment Policy Board shall make its best efforts to
450	450	21 identify all companies that are domiciled or have their
451	451	22 principal place of business in Russia or Belarus and companies
452	452	23 that are subject to Russian Harmful Foreign Activities
453	453	24 Sanctions and include those companies in the list of
454	454	25 restricted companies distributed to each retirement system.
455	455	26 These efforts shall include the following, as appropriate in
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466	466	1 the Illinois Investment Policy Board's judgment:
467	467	2 (1) reviewing and relying on publicly available
468	468	3 information regarding companies that are domiciled or have
469	469	4 their principal place of business in Russia or Belarus and
470	470	5 companies that are subject to Russian Harmful Foreign
471	471	6 Activities Sanctions, including information provided by
472	472	7 nonprofit organizations, research firms, and government
473	473	8 entities;
474	474	9 (2) contacting asset managers contracted by the
475	475	10 retirement systems that invest in companies that are
476	476	11 domiciled or have their principal place of business in
477	477	12 Russia or Belarus and companies that are subject to
478	478	13 Russian Harmful Foreign Activities Sanctions;
479	479	14 (3) contacting other institutional investors that have
480	480	15 divested from or engaged with companies that are domiciled
481	481	16 or have their principal place of business in Russia or
482	482	17 Belarus and companies that are subject to Russian Harmful
483	483	18 Foreign Activities Sanctions; and
484	484	19 (4) retaining an independent research firm to identify
485	485	20 companies that are domiciled or have their principal place
486	486	21 of business in Russia or Belarus and companies that are
487	487	22 subject to Russian Harmful Foreign Activities Sanctions.
488	488	23 No later than 6 months after the effective date of this
489	489	24 amendatory Act of the 104th General Assembly, the Illinois
490	490	25 Investment Policy Board shall make its best efforts to
491	491	26 identify all Hamas-restricted companies and include those
492	492
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502	502	1 companies in the list of restricted companies distributed to
503	503	2 each retirement system.
504	504	3 (e) The Illinois Investment Policy Board shall adhere to
505	505	4 the following procedures for companies on the list of
506	506	5 restricted companies:
507	507	6 (1) For each company newly identified in subsection
508	508	7 (d), the Illinois Investment Policy Board, unless it
509	509	8 determines by an affirmative vote that it is unfeasible,
510	510	9 shall send a written notice informing the company of its
511	511	10 status and that it may become subject to divestment or
512	512	11 shareholder activism by the retirement systems.
513	513	12 (2) If, following the Illinois Investment Policy
514	514	13 Board's engagement pursuant to this subsection (e) with a
515	515	14 restricted company, that company ceases activity that
516	516	15 designates the company to be an Iran-restricted company, a
517	517	16 Sudan-restricted company, a company that boycotts Israel,
518	518	17 an expatriated entity, or a for-profit company that
519	519	18 contracts to shelter migrant children, the company shall
520	520	19 be removed from the list of restricted companies and the
521	521	20 provisions of this Section shall cease to apply to it
522	522	21 unless it resumes such activities.
523	523	22 (3) For a company that is domiciled or has its
524	524	23 principal place of business in Russia or Belarus, if,
525	525	24 following the Illinois Investment Policy Board's
526	526	25 engagement pursuant to this subsection (e), that company
527	527	26 is no longer domiciled or has its principal place of
528	528
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538	538	1 business in Russia or Belarus, the company shall be
539	539	2 removed from the list of restricted companies and the
540	540	3 provisions of this Section shall cease to apply to it
541	541	4 unless it becomes domiciled or has its principal place of
542	542	5 business in Russia or Belarus.
543	543	6 (4) For a company that is subject to Russian Harmful
544	544	7 Foreign Activities Sanctions, if, following the Illinois
545	545	8 Investment Policy Board's engagement pursuant to this
546	546	9 subsection (e), that company is no longer subject to
547	547	10 Russian Harmful Foreign Activities Sanctions, the company
548	548	11 shall be removed from the list of restricted companies and
549	549	12 the provisions of this Section shall cease to apply to it
550	550	13 unless it becomes subject to Russian Harmful Foreign
551	551	14 Activities Sanctions.
552	552	15 (f) Except as provided in subsection (f-1) of this Section
553	553	16 the retirement system shall adhere to the following procedures
554	554	17 for companies on the list of restricted companies:
555	555	18 (1) The retirement system shall identify those
556	556	19 companies on the list of restricted companies in which the
557	557	20 retirement system owns direct holdings and indirect
558	558	21 holdings.
559	559	22 (2) The retirement system shall instruct its
560	560	23 investment advisors to sell, redeem, divest, or withdraw
561	561	24 all direct holdings of restricted companies from the
562	562	25 retirement system's assets under management in an orderly
563	563	26 and fiduciarily responsible manner within 12 months after
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574	574	1 the company's most recent appearance on the list of
575	575	2 restricted companies.
576	576	3 (3) The retirement system may not acquire securities
577	577	4 of restricted companies.
578	578	5 (4) The provisions of this subsection (f) do not apply
579	579	6 to the retirement system's indirect holdings or private
580	580	7 market funds. The Illinois Investment Policy Board shall
581	581	8 submit letters to the managers of those investment funds
582	582	9 containing restricted companies requesting that they
583	583	10 consider removing the companies from the fund or create a
584	584	11 similar actively managed fund having indirect holdings
585	585	12 devoid of the companies. If the manager creates a similar
586	586	13 fund, the retirement system shall replace all applicable
587	587	14 investments with investments in the similar fund in an
588	588	15 expedited timeframe consistent with prudent investing
589	589	16 standards.
590	590	17 (f-1) The retirement system shall adhere to the following
591	591	18 procedures for restricted companies that are expatriated
592	592	19 entities or for-profit companies that contract to shelter
593	593	20 migrant children:
594	594	21 (1) To the extent that the retirement system believes
595	595	22 that shareholder activism would be more impactful than
596	596	23 divestment, the retirement system shall have the authority
597	597	24 to engage with a restricted company prior to divesting.
598	598	25 (2) Subject to any applicable State or Federal laws,
599	599	26 methods of shareholder activism utilized by the retirement
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610	610	1 system may include, but are not limited to, bringing
611	611	2 shareholder resolutions and proxy voting on shareholder
612	612	3 resolutions.
613	613	4 (3) The retirement system shall report on its
614	614	5 shareholder activism and the outcome of such efforts to
615	615	6 the Illinois Investment Policy Board by April 1 of each
616	616	7 year.
617	617	8 (4) If the engagement efforts of the retirement system
618	618	9 are unsuccessful, then it shall adhere to the procedures
619	619	10 under subsection (f) of this Section.
620	620	11 (f-5) Beginning on the effective date of this amendatory
621	621	12 Act of the 102nd General Assembly, no retirement system shall
622	622	13 invest moneys in Russian or Belarusian sovereign debt, Russian
623	623	14 or Belarusian government-backed securities, any investment
624	624	15 instrument issued by an entity that is domiciled or has its
625	625	16 principal place of business in Russia or Belarus, or any
626	626	17 investment instrument issued by a company that is subject to
627	627	18 Russian Harmful Foreign Activities Sanctions, and no
628	628	19 retirement system shall invest or deposit State moneys in any
629	629	20 bank that is domiciled or has its principal place of business
630	630	21 in Russia or Belarus. As soon as practicable after the
631	631	22 effective date of this amendatory Act of the 102nd General
632	632	23 Assembly, each retirement system shall instruct its investment
633	633	24 advisors to sell, redeem, divest, or withdraw all direct
634	634	25 holdings of Russian or Belarusian sovereign debt and direct
635	635	26 holdings of Russian or Belarusian government-backed securities
636	636
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646	646	1 from the retirement system's assets under management in an
647	647	2 orderly and fiduciarily responsible manner.
648	648	3 Notwithstanding any provision of this Section to the
649	649	4 contrary, a retirement system may cease divestment pursuant to
650	650	5 this subsection (f-5) if clear and convincing evidence shows
651	651	6 that the value of investments in such Russian or Belarusian
652	652	7 sovereign debt and Russian or Belarusian government-backed
653	653	8 securities becomes equal to or less than 0.05% of the market
654	654	9 value of all assets under management by the retirement system.
655	655	10 For any cessation of divestment authorized by this subsection
656	656	11 (f-5), the retirement system shall provide a written notice to
657	657	12 the Illinois Investment Policy Board in advance of the
658	658	13 cessation of divestment, setting forth the reasons and
659	659	14 justification, supported by clear and convincing evidence, for
660	660	15 its decision to cease divestment under this subsection (f-5).
661	661	16 The provisions of this subsection (f-5) do not apply to
662	662	17 the retirement system's indirect holdings or private market
663	663	18 funds.
664	664	19 (g) Upon request, and by April 1 of each year, each
665	665	20 retirement system shall provide the Illinois Investment Policy
666	666	21 Board with information regarding investments sold, redeemed,
667	667	22 divested, or withdrawn in compliance with this Section.
668	668	23 (h) Notwithstanding any provision of this Section to the
669	669	24 contrary, a retirement system may cease divesting from
670	670	25 companies pursuant to subsection (f) if clear and convincing
671	671	26 evidence shows that the value of investments in such companies
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682	682	1 becomes equal to or less than 0.5% of the market value of all
683	683	2 assets under management by the retirement system. For any
684	684	3 cessation of divestment authorized by this subsection (h), the
685	685	4 retirement system shall provide a written notice to the
686	686	5 Illinois Investment Policy Board in advance of the cessation
687	687	6 of divestment, setting forth the reasons and justification,
688	688	7 supported by clear and convincing evidence, for its decision
689	689	8 to cease divestment under subsection (f).
690	690	9 (i) The cost associated with the activities of the
691	691	10 Illinois Investment Policy Board shall be borne by the boards
692	692	11 of each pension fund or investment board created under Article
693	693	12 15, 16, or 22A of this Code.
694	694	13 (j) With respect to actions taken in compliance with this
695	695	14 Section, including all good-faith determinations regarding
696	696	15 companies as required by this Section, the retirement system
697	697	16 and Illinois Investment Policy Board are exempt from any
698	698	17 conflicting statutory or common law obligations, including any
699	699	18 fiduciary duties under this Article and any obligations with
700	700	19 respect to choice of asset managers, investment funds, or
701	701	20 investments for the retirement system's securities portfolios.
702	702	21 (k) It is not the intent of the General Assembly in
703	703	22 enacting this amendatory Act of the 99th General Assembly to
704	704	23 cause divestiture from any company based in the United States
705	705	24 of America. The Illinois Investment Policy Board shall
706	706	25 consider this intent when developing or reviewing the list of
707	707	26 restricted companies.
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718	718	1 (l) If any provision of this amendatory Act of the 99th
719	719	2 General Assembly or its application to any person or
720	720	3 circumstance is held invalid, the invalidity of that provision
721	721	4 or application does not affect other provisions or
722	722	5 applications of this amendatory Act of the 99th General
723	723	6 Assembly that can be given effect without the invalid
724	724	7 provision or application.
725	725	8 If any provision of Public Act 100-551 or its application
726	726	9 to any person or circumstance is held invalid, the invalidity
727	727	10 of that provision or application does not affect other
728	728	11 provisions or applications of Public Act 100-551 that can be
729	729	12 given effect without the invalid provision or application.
730	730	13 If any provision of Public Act 102-118 or its application
731	731	14 to any person or circumstance is held invalid, the invalidity
732	732	15 of that provision or application does not affect other
733	733	16 provisions or applications of Public Act 102-118 that can be
734	734	17 given effect without the invalid provision or application.
735	735	18 If any provision of this amendatory Act of the 102nd
736	736	19 General Assembly or its application to any person or
737	737	20 circumstance is held invalid, the invalidity of that provision
738	738	21 or application does not affect other provisions or
739	739	22 applications of this amendatory Act of the 102nd General
740	740	23 Assembly that can be given effect without the invalid
741	741	24 provision or application.
742	742	25 If any provision of this amendatory Act of the 104th
743	743	26 General Assembly or its application to any person or
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