Sen. Don Harmon

Filed: 11/15/2022

 

 


 

 


 
10200HB1293sam001LRB102 03303 RPS 41682 a

1
AMENDMENT TO HOUSE BILL 1293

2    AMENDMENT NO. ______. Amend House Bill 1293 by replacing
3everything after the enacting clause with the following:
 
4
"Article 1.

 
5    Section 1-1. Findings.
6    (a) The General Assembly finds that:
7        (1) Russia launched an unprecedented military assault
8    on Ukraine that has left many dead, and the fighting in
9    Ukraine appears to be some of the worst conventional
10    warfare Europe has seen since World War II and the
11    conflicts in the Balkans in the 1990s;
12        (2) Western leaders have been united in their swift
13    and strong condemnation of Russia's military action;
14        (3) President Biden has stated that Russian President
15    Putin had "committed an assault on the very principles
16    that uphold the global peace", and the United States has,

 

 

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1    as a result, taken steps to impose harsh, new sanctions
2    that are intended to punish President Putin for his
3    actions;
4        (4) Secretary of State Blinken has indicated that
5    there are credible reports that Russia has engaged in
6    actions during its military assault on Ukraine that
7    constitute war crimes under international law;
8        (5) Russia has used, during its military assault on
9    Ukraine, weapons that have been banned by many countries,
10    including cluster munitions;
11        (6) Russia has conducted direct attacks on major
12    nuclear power facilities in Ukraine, which could lead to
13    disaster and the spread of radioactive contamination
14    across Ukraine and Europe;
15        (7) the United Nations has estimated that more than
16    14,000,000 Ukrainians have already been displaced within
17    the country and more than 7,000,000 have left the country
18    as a result of the Russian invasion;
19        (8) the international community is making preparations
20    to meet the humanitarian needs of those refugees who are
21    displaced by this conflict;
22        (9) Central Europe is welcoming Ukrainians, but the
23    countries in that region are not currently equipped to
24    handle the volume of refugees that are anticipated to
25    arrive at their borders in the coming weeks, and European
26    and U.S. leadership must help build that capacity; and

 

 

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1        (10) Illinois is a welcoming state to refugees and
2    immigrants and home to a robust community of Ukrainian
3    immigrants and Ukrainian descendants, many of whom live in
4    Chicago's Ukrainian Village neighborhood.
5    (b) For these reasons, the General Assembly urges:
6        (1) the pension funds and retirement systems
7    established under the Illinois Pension Code to divest
8    their holdings in any companies that are domiciled in
9    Russia or Belarus and that are on the list of restricted
10    companies developed by the Illinois Investment Policy
11    Board;
12        (2) all municipalities to reconsider any sister-city
13    relationships they may have with cities in Russia; and
14        (3) the United States Department of State to resettle
15    Ukrainian refugees in Illinois.
 
16
Article 5.

 
17    Section 5-1. Short title. This Article may be cited as the
18Money Laundering in Real Estate Task Force Act. References in
19this Article to "this Act" mean this Article.
 
20    Section 5-3. Findings. The General Assembly finds and
21declares the following:
22        (1) the United States Department of Treasury's
23    Financial Crimes Enforcement Network found, in 2017, that

 

 

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1    30% of all high-end real estate purchases in major
2    metropolitan areas involved beneficial owners or
3    purchasers who were the subject of previous suspicious
4    activity reports;
5        (2) the United States, unlike Canada and several other
6    jurisdictions, does not require real estate agents and
7    brokers to file suspicious transaction reports;
8        (3) the lack of beneficial ownership transparency is
9    an important factor in facilitating money laundering in
10    real estate; and
11        (4) money laundering in real estate has negative
12    consequences for local communities, including the
13    dislocation of residents from and within major
14    metropolitan areas.
 
15    Section 5-5. Money Laundering in Real Estate Task Force.
16    (a) The Money Laundering in Real Estate Task Force is
17created. The Task Force shall consist of the following
18members:
19        (1) 4 members appointed one each by the Speaker of the
20    House of Representatives, the Minority Leader of the House
21    of Representatives, the President of the Senate, and the
22    Minority Leader of the Senate;
23        (2) the Secretary of Financial and Professional
24    Regulation or the Secretary's designee;
25        (3) the Director of Revenue or the Director's

 

 

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1    designee;
2        (4) 2 members of the faculty of an institution of
3    higher education in the State with subject matter
4    expertise regarding money laundering in real estate,
5    appointed by the Governor;
6        (5) one expert on real estate tax law, appointed by
7    the Governor;
8        (6) one representative of banking institutions with
9    assets of at least $1,000,000,000, appointed by the
10    Governor;
11        (7) one representative of banking institutions with
12    assets below $1,000,000,000, appointed by the Governor;
13        (8) 2 representatives of a statewide organization
14    representing real estate brokers, appointed by the
15    Governor; and
16        (9) 4 members with backgrounds in real estate,
17    financial institutions, or law, appointed one each by the
18    Speaker of the House of Representatives, the Minority
19    Leader of the House of Representatives, the President of
20    the Senate, and the Minority Leader of the Senate.
21    (b) Initial appointments to the Task Force shall be made
22as soon as practicable after the effective date of this Act.
23The Task Force shall hold its first meeting within a
24reasonable period of time after its members have been
25appointed and shall convene regularly to carry out its duties
26and submit the reports required under this Act. At its first

 

 

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1meeting, the Task Force shall elect its chairperson and any
2other officers from among its members.
3    (c) The Department of Financial and Professional
4Regulation and the Department of Revenue shall provide
5administrative and other support to the Task Force.
 
6    Section 5-10. Duties. The Task Force shall:
7        (1) identify vulnerabilities in the real estate sector
8    that facilitate money laundering;
9        (2) provide guidance to help actors in the real estate
10    sector identify suspicious transactions and report them to
11    the proper authorities;
12        (3) explore the means by which illicit money is
13    channeled into the real estate sector and integrated into
14    the legal economy, including, but not limited to, cash
15    purchases, complex loans, monetary instruments, mortgages,
16    investment institutions, fraudulent appraisals, and
17    anonymous corporate entities;
18        (4) assess the exposure of the residential,
19    industrial, and commercial real estate sectors in Illinois
20    to illicit Russian money, including, but not limited to,
21    luxury real estate in Chicago and nonresidential real
22    estate in downstate communities; and
23        (5) assess real estate due diligence and reporting
24    practices, requirements, and laws in Illinois and
25    recommend changes needed to eliminate systemic

 

 

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1    vulnerabilities that facilitate foreign money laundering.
 
2    Section 5-15. Reports. The Task Force shall submit a
3report to the Governor and the General Assembly not later than
412 months after the effective date of this Act. The report
5shall include the Task Force's findings and shall summarize
6the actions the Task Force has taken and those it intends to
7take in response to its obligations under the Act. After it
8submits its initial report, the Task Force shall periodically
9submit reports to the Governor and the General Assembly as the
10chairperson of the Task Force deems necessary to apprise those
11officials of any additional findings made or actions taken by
12the Task Force. The obligation of the Task Force to submit
13periodic reports shall continue for the duration of the Task
14Force.
 
15    Section 5-20. Dissolution of Task Force; repeal. The Task
16Force is dissolved on January 1, 2025. This Act is repealed on
17January 1, 2026.
 
18
Article 10.

 
19    Section 10-5. The Illinois Administrative Procedure Act is
20amended by adding Section 5-45.35 as follows:
 
21    (5 ILCS 100/5-45.35 new)

 

 

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1    Sec. 5-45.35. Emergency rulemaking; Refugee Resettlement
2Program. To ensure the availability of refugee resettlement
3program services in the case of an imminent, large-scale
4refugee resettlement event, emergency rules may be adopted in
5accordance with Section 5-45 by the Department of Human
6Services. The adoption of emergency rules authorized by
7Section 5-45 and this Section is deemed to be necessary for the
8public interest, safety, and welfare.
9    This Section is repealed one year after the effective date
10of this amendatory Act of the 102nd General Assembly.
 
11    Section 10-7. The Election Code is amended by adding
12Section 1-22 as follows:
 
13    (10 ILCS 5/1-22 new)
14    Sec. 1-22. The Illinois Elections and Infrastructure
15Integrity Task Force.
16    (a) The Illinois Elections and Infrastructure Integrity
17Task Force is created. The Task Force shall consist of the
18following members:
19        (1) 4 members appointed one each by the Speaker of the
20    House of Representatives, the Minority Leader of the House
21    of Representatives, the President of the Senate, and the
22    Minority Leader of the Senate;
23        (2) one member with subject matter expertise regarding
24    cybersecurity, appointed by the Minority Leader of the

 

 

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1    House of Representatives;
2        (3) one member with subject matter expertise regarding
3    voting technology or election integrity, appointed by the
4    Speaker of the House;
5        (4) one member who is an individual with current
6    experience in operational cybersecurity, preferably
7    international operational cybersecurity, appointed by the
8    President of the Senate;
9        (5) one county clerk, appointed by the Minority Leader
10    of the Senate;
11        (6) the Chair of the Board of Election Commissioners
12    for the City of Chicago or the Chair's designee;
13        (7) the county clerk of Cook County;
14        (8) one election administrator, appointed by the
15    Governor;
16        (9) the Executive Director of the State Board of
17    Elections or the Executive Director's designee;
18        (10) the Secretary of State or the Secretary's
19    designee;
20        (11) the Director of the Illinois Emergency Management
21    Agency or the Director's designee;
22        (12) the Secretary of Innovation and Technology or the
23    Secretary's designee; and
24        (13) the Attorney General or the Attorney General's
25    designee.
26    (b) The Task Force shall evaluate and make recommendations

 

 

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1to prepare for and prevent foreign interference in elections
2in advance of the 2024 election and all future elections in the
3State and to prepare for and prevent potential cyberattacks on
4State infrastructure. In carrying out its duties, the Task
5Force shall prioritize the security of all Illinois residents
6and cooperation with other states and with law enforcement to
7protect United States national sovereignty. The Task Force
8shall submit a report containing its findings and
9recommendations to the Governor and the General Assembly not
10later than January 1, 2024. The Task Force shall also submit a
11report evaluating the 2024 election to the Governor and the
12General Assembly not later than March 1, 2025.
13    (c) The State Board of Elections shall provide staff and
14administrative support to the Task Force.
15    (d) The Task Force is dissolved, and this Section is
16repealed, on June 1, 2025.
 
17    Section 10-10. The Deposit of State Moneys Act is amended
18by adding Section 22.7 as follows:
 
19    (15 ILCS 520/22.7 new)
20    Sec. 22.7. Russian or Belarusian investments prohibited.
21Notwithstanding any provision of law to the contrary, the
22State Treasurer shall not invest State money in Russian or
23Belarusian sovereign debt, Russian or Belarusian
24government-backed securities, any investment instrument issued

 

 

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1by an entity that is domiciled or has its principal place of
2business in Russia or Belarus, or any investment instrument
3issued by a company that is subject to Russian Harmful Foreign
4Activities Sanctions, as that term is defined under Section
51-110.16 of the Illinois Pension Code, and shall not invest or
6deposit State money in any bank that is domiciled or has its
7principal place of business in Russia or Belarus or in any
8other financial institution that is domiciled or has its
9principal place of business in Russia or Belarus or that is
10subject to Russian Harmful Foreign Activities Sanctions.
 
11    Section 10-20. The Illinois State Police Law of the Civil
12Administrative Code of Illinois is amended by changing Section
132605-35 as follows:
 
14    (20 ILCS 2605/2605-35)  (was 20 ILCS 2605/55a-3)
15    Sec. 2605-35. Division of Criminal Investigation.
16    (a) The Division of Criminal Investigation shall exercise
17the following functions and those in Section 2605-30:
18        (1) Exercise the rights, powers, and duties vested by
19    law in the Illinois State Police by the Illinois Horse
20    Racing Act of 1975, including those set forth in Section
21    2605-215.
22        (2) Investigate the origins, activities, personnel,
23    and incidents of crime and enforce the criminal laws of
24    this State related thereto.

 

 

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1        (3) Enforce all laws regulating the production, sale,
2    prescribing, manufacturing, administering, transporting,
3    having in possession, dispensing, delivering,
4    distributing, or use of controlled substances and
5    cannabis.
6        (4) Cooperate with the police of cities, villages, and
7    incorporated towns and with the police officers of any
8    county in enforcing the laws of the State and in making
9    arrests and recovering property.
10        (5) Apprehend and deliver up any person charged in
11    this State or any other state with treason or a felony or
12    other crime who has fled from justice and is found in this
13    State.
14        (6) Investigate recipients and providers under the
15    Illinois Public Aid Code and any personnel involved in the
16    administration of the Code who are suspected of any
17    violation of the Code pertaining to fraud in the
18    administration, receipt, or provision of assistance and
19    pertaining to any violation of criminal law; and exercise
20    the functions required under Section 2605-220 in the
21    conduct of those investigations.
22        (7) Conduct other investigations as provided by law.
23        (8) Investigate public corruption.
24        (9) Exercise other duties that may be assigned by the
25    Director in order to fulfill the responsibilities and
26    achieve the purposes of the Illinois State Police, which

 

 

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1    may include the coordination of gang, terrorist, and
2    organized crime prevention, control activities, and
3    assisting local law enforcement in their crime control
4    activities.
5        (10) Conduct investigations (and cooperate with
6    federal law enforcement agencies in the investigation) of
7    any property-related crimes, such as money laundering,
8    involving individuals or entities listed on the sanctions
9    list maintained by the U.S. Department of Treasury's
10    Office of Foreign Asset Control.
11    (b) (Blank).
12(Source: P.A. 102-538, eff. 8-20-21; 102-813, eff. 5-13-22.)
 
13    Section 10-30. The Public Funds Investment Act is amended
14by adding Section 2.3 as follows:
 
15    (30 ILCS 235/2.3 new)
16    Sec. 2.3. Russian or Belarusian investments prohibited.
17Notwithstanding any provision of law to the contrary, a public
18agency shall not invest public funds in Russian or Belarusian
19sovereign debt, Russian or Belarusian government-backed
20securities, any investment instrument issued by an entity that
21is domiciled or has its principal place of business in Russia
22or Belarus, or any investment instrument issued by a company
23that is subject to Russian Harmful Foreign Activities
24Sanctions, as that term is defined under Section 1-110.16 of

 

 

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1the Illinois Pension Code, and shall not invest or deposit
2public funds in any bank that is domiciled or has its principal
3place of business in Russia or Belarus or in any other
4financial institution that is domiciled or has its principal
5place of business in Russia or Belarus or that is subject to
6Russian Harmful Foreign Activities Sanctions.
 
7    Section 10-35. The Illinois Pension Code is amended by
8changing Section 1-110.16 as follows:
 
9    (40 ILCS 5/1-110.16)
10    Sec. 1-110.16. Transactions prohibited by retirement
11systems; companies that boycott Israel, for-profit companies
12that contract to shelter migrant children, Iran-restricted
13companies, Sudan-restricted companies, and expatriated
14entities, companies that are domiciled or have their principal
15place of business in Russia or Belarus, and companies that are
16subject to Russian Harmful Foreign Activities Sanctions.
17    (a) As used in this Section:
18        "Boycott Israel" means engaging in actions that are
19    politically motivated and are intended to penalize,
20    inflict economic harm on, or otherwise limit commercial
21    relations with the State of Israel or companies based in
22    the State of Israel or in territories controlled by the
23    State of Israel.
24        "Company" means any sole proprietorship, organization,

 

 

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1    association, corporation, partnership, joint venture,
2    limited partnership, limited liability partnership,
3    limited liability company, or other entity or business
4    association, including all wholly owned subsidiaries,
5    majority-owned subsidiaries, parent companies, or
6    affiliates of those entities or business associations,
7    that exist for the purpose of making profit.
8        "Company that is subject to Russian Harmful Foreign
9    Activities Sanctions" means a company that is subject to
10    sanctions under the Russian Harmful Foreign Activities
11    Sanctions Regulations (31 CFR Part 587), any Presidential
12    Executive Order imposing sanctions against Russia, or any
13    federal directive issued pursuant to any such Executive
14    Order.
15        "Contract to shelter migrant children" means entering
16    into a contract with the federal government to shelter
17    migrant children under the federal Unaccompanied Alien
18    Children Program or a substantially similar federal
19    program.
20        "Illinois Investment Policy Board" means the board
21    established under subsection (b) of this Section.
22        "Direct holdings" in a company means all publicly
23    traded securities of that company that are held directly
24    by the retirement system in an actively managed account or
25    fund in which the retirement system owns all shares or
26    interests.

 

 

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1        "Expatriated entity" has the meaning ascribed to it in
2    Section 1-15.120 of the Illinois Procurement Code.
3        "Illinois Investment Policy Board" means the board
4    established under subsection (b) of this Section.
5        "Indirect holdings" in a company means all securities
6    of that company that are held in an account or fund, such
7    as a mutual fund, managed by one or more persons not
8    employed by the retirement system, in which the retirement
9    system owns shares or interests together with other
10    investors not subject to the provisions of this Section or
11    that are held in an index fund.
12        "Iran-restricted company" means a company that meets
13    the qualifications under Section 1-110.15 of this Code.
14        "Private market fund" means any private equity fund,
15    private equity funds of funds, venture capital fund, hedge
16    fund, hedge fund of funds, real estate fund, or other
17    investment vehicle that is not publicly traded.
18        "Restricted companies" means companies that boycott
19    Israel, for-profit companies that contract to shelter
20    migrant children, Iran-restricted companies,
21    Sudan-restricted companies, and expatriated entities,
22    companies that are domiciled or have their principal place
23    of business in Russia or Belarus, and companies that are
24    subject to Russian Harmful Foreign Activities Sanctions.
25        "Retirement system" means a retirement system
26    established under Article 2, 14, 15, 16, or 18 of this Code

 

 

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1    or the Illinois State Board of Investment.
2        "Sudan-restricted company" means a company that meets
3    the qualifications under Section 1-110.6 of this Code.
4    (b) There shall be established an Illinois Investment
5Policy Board. The Illinois Investment Policy Board shall
6consist of 7 members. Each board of a pension fund or
7investment board created under Article 15, 16, or 22A of this
8Code shall appoint one member, and the Governor shall appoint
94 members. The Governor shall designate one member of the
10Board as the Chairperson.
11    (b-5) The term of office of each member appointed by the
12Governor, who is serving on the Board on June 30, 2022, is
13abolished on that date. The terms of office of members
14appointed by the Governor after June 30, 2022 shall be as
15follows: 2 initial members shall be appointed for terms of 2
16years, and 2 initial members shall be appointed for terms of 4
17years. Thereafter, the members appointed by the Governor shall
18hold office for 4 years, except that any member chosen to fill
19a vacancy occurring otherwise than by expiration of a term
20shall be appointed only for the unexpired term of the member
21whom he or she shall succeed. Board members may be
22reappointed. The Governor may remove a Governor's appointee to
23the Board for incompetence, neglect of duty, malfeasance, or
24inability to serve.
25    (c) Notwithstanding any provision of law to the contrary,
26beginning January 1, 2016, Sections 1-110.15 110.15 and

 

 

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11-110.6 of this Code shall be administered in accordance with
2this Section.
3    (d) By April 1, 2016, the Illinois Investment Policy Board
4shall make its best efforts to identify all Iran-restricted
5companies, Sudan-restricted companies, and companies that
6boycott Israel and assemble those identified companies into a
7list of restricted companies, to be distributed to each
8retirement system.
9    These efforts shall include the following, as appropriate
10in the Illinois Investment Policy Board's judgment:
11        (1) reviewing and relying on publicly available
12    information regarding Iran-restricted companies,
13    Sudan-restricted companies, and companies that boycott
14    Israel, including information provided by nonprofit
15    organizations, research firms, and government entities;
16        (2) contacting asset managers contracted by the
17    retirement systems that invest in Iran-restricted
18    companies, Sudan-restricted companies, and companies that
19    boycott Israel;
20        (3) contacting other institutional investors that have
21    divested from or engaged with Iran-restricted companies,
22    Sudan-restricted companies, and companies that boycott
23    Israel; and
24        (4) retaining an independent research firm to identify
25    Iran-restricted companies, Sudan-restricted companies,
26    and companies that boycott Israel.

 

 

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1    The Illinois Investment Policy Board shall review the list
2of restricted companies on a quarterly basis based on evolving
3information from, among other sources, those listed in this
4subsection (d) and distribute any updates to the list of
5restricted companies to the retirement systems and the State
6Treasurer.
7    By April 1, 2018, the Illinois Investment Policy Board
8shall make its best efforts to identify all expatriated
9entities and include those companies in the list of restricted
10companies distributed to each retirement system and the State
11Treasurer. These efforts shall include the following, as
12appropriate in the Illinois Investment Policy Board's
13judgment:
14        (1) reviewing and relying on publicly available
15    information regarding expatriated entities, including
16    information provided by nonprofit organizations, research
17    firms, and government entities;
18        (2) contacting asset managers contracted by the
19    retirement systems that invest in expatriated entities;
20        (3) contacting other institutional investors that have
21    divested from or engaged with expatriated entities; and
22        (4) retaining an independent research firm to identify
23    expatriated entities.
24    By July 1, 2022, the Illinois Investment Policy Board
25shall make its best efforts to identify all for-profit
26companies that contract to shelter migrant children and

 

 

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1include those companies in the list of restricted companies
2distributed to each retirement system. These efforts shall
3include the following, as appropriate in the Illinois
4Investment Policy Board's judgment:
5        (1) reviewing and relying on publicly available
6    information regarding for-profit companies that contract
7    to shelter migrant children, including information
8    provided by nonprofit organizations, research firms, and
9    government entities;
10        (2) contacting asset managers contracted by the
11    retirement systems that invest in for-profit companies
12    that contract to shelter migrant children;
13        (3) contacting other institutional investors that have
14    divested from or engaged with for-profit companies that
15    contract to shelter migrant children; and
16        (4) retaining an independent research firm to identify
17    for-profit companies that contract to shelter migrant
18    children.
19    No later than 6 months after the effective date of this
20amendatory Act of the 102nd General Assembly, the Illinois
21Investment Policy Board shall make its best efforts to
22identify all companies that are domiciled or have their
23principal place of business in Russia or Belarus and companies
24that are subject to Russian Harmful Foreign Activities
25Sanctions and include those companies in the list of
26restricted companies distributed to each retirement system.

 

 

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1These efforts shall include the following, as appropriate in
2the Illinois Investment Policy Board's judgment:
3        (1) reviewing and relying on publicly available
4    information regarding companies that are domiciled or have
5    their principal place of business in Russia or Belarus and
6    companies that are subject to Russian Harmful Foreign
7    Activities Sanctions, including information provided by
8    nonprofit organizations, research firms, and government
9    entities;
10        (2) contacting asset managers contracted by the
11    retirement systems that invest in companies that are
12    domiciled or have their principal place of business in
13    Russia or Belarus and companies that are subject to
14    Russian Harmful Foreign Activities Sanctions;
15        (3) contacting other institutional investors that have
16    divested from or engaged with companies that are domiciled
17    or have their principal place of business in Russia or
18    Belarus and companies that are subject to Russian Harmful
19    Foreign Activities Sanctions; and
20        (4) retaining an independent research firm to identify
21    companies that are domiciled or have their principal place
22    of business in Russia or Belarus and companies that are
23    subject to Russian Harmful Foreign Activities Sanctions.
24    (e) The Illinois Investment Policy Board shall adhere to
25the following procedures for companies on the list of
26restricted companies:

 

 

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1        (1) For each company newly identified in subsection
2    (d), the Illinois Investment Policy Board, unless it
3    determines by an affirmative vote that it is unfeasible,
4    shall send a written notice informing the company of its
5    status and that it may become subject to divestment or
6    shareholder activism by the retirement systems.
7        (2) If, following the Illinois Investment Policy
8    Board's engagement pursuant to this subsection (e) with a
9    restricted company, that company ceases activity that
10    designates the company to be an Iran-restricted company, a
11    Sudan-restricted company, a company that boycotts Israel,
12    an expatriated entity, or a for-profit company that
13    contracts to shelter migrant children, the company shall
14    be removed from the list of restricted companies and the
15    provisions of this Section shall cease to apply to it
16    unless it resumes such activities.
17        (3) For a company that is domiciled or has its
18    principal place of business in Russia or Belarus, if,
19    following the Illinois Investment Policy Board's
20    engagement pursuant to this subsection (e), that company
21    is no longer domiciled or has its principal place of
22    business in Russia or Belarus, the company shall be
23    removed from the list of restricted companies and the
24    provisions of this Section shall cease to apply to it
25    unless it becomes domiciled or has its principal place of
26    business in Russia or Belarus.

 

 

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1        (4) For a company that is subject to Russian Harmful
2    Foreign Activities Sanctions, if, following the Illinois
3    Investment Policy Board's engagement pursuant to this
4    subsection (e), that company is no longer subject to
5    Russian Harmful Foreign Activities Sanctions, the company
6    shall be removed from the list of restricted companies and
7    the provisions of this Section shall cease to apply to it
8    unless it becomes subject to Russian Harmful Foreign
9    Activities Sanctions.
10    (f) Except as provided in subsection (f-1) of this Section
11the retirement system shall adhere to the following procedures
12for companies on the list of restricted companies:
13        (1) The retirement system shall identify those
14    companies on the list of restricted companies in which the
15    retirement system owns direct holdings and indirect
16    holdings.
17        (2) The retirement system shall instruct its
18    investment advisors to sell, redeem, divest, or withdraw
19    all direct holdings of restricted companies from the
20    retirement system's assets under management in an orderly
21    and fiduciarily responsible manner within 12 months after
22    the company's most recent appearance on the list of
23    restricted companies.
24        (3) The retirement system may not acquire securities
25    of restricted companies.
26        (4) The provisions of this subsection (f) do not apply

 

 

10200HB1293sam001- 24 -LRB102 03303 RPS 41682 a

1    to the retirement system's indirect holdings or private
2    market funds. The Illinois Investment Policy Board shall
3    submit letters to the managers of those investment funds
4    containing restricted companies requesting that they
5    consider removing the companies from the fund or create a
6    similar actively managed fund having indirect holdings
7    devoid of the companies. If the manager creates a similar
8    fund, the retirement system shall replace all applicable
9    investments with investments in the similar fund in an
10    expedited timeframe consistent with prudent investing
11    standards.
12    (f-1) The retirement system shall adhere to the following
13procedures for restricted companies that are expatriated
14entities or for-profit companies that contract to shelter
15migrant children:
16        (1) To the extent that the retirement system believes
17    that shareholder activism would be more impactful than
18    divestment, the retirement system shall have the authority
19    to engage with a restricted company prior to divesting.
20        (2) Subject to any applicable State or Federal laws,
21    methods of shareholder activism utilized by the retirement
22    system may include, but are not limited to, bringing
23    shareholder resolutions and proxy voting on shareholder
24    resolutions.
25        (3) The retirement system shall report on its
26    shareholder activism and the outcome of such efforts to

 

 

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1    the Illinois Investment Policy Board by April 1 of each
2    year.
3        (4) If the engagement efforts of the retirement system
4    are unsuccessful, then it shall adhere to the procedures
5    under subsection (f) of this Section.
6    (f-5) Beginning on the effective date of this amendatory
7Act of the 102nd General Assembly, no retirement system shall
8invest moneys in Russian or Belarusian sovereign debt, Russian
9or Belarusian government-backed securities, any investment
10instrument issued by an entity that is domiciled or has its
11principal place of business in Russia or Belarus, or any
12investment instrument issued by a company that is subject to
13Russian Harmful Foreign Activities Sanctions, and no
14retirement system shall invest or deposit State moneys in any
15bank that is domiciled or has its principal place of business
16in Russia or Belarus. As soon as practicable after the
17effective date of this amendatory Act of the 102nd General
18Assembly, each retirement system shall instruct its investment
19advisors to sell, redeem, divest, or withdraw all direct
20holdings of Russian or Belarusian sovereign debt and direct
21holdings of Russian or Belarusian government-backed securities
22from the retirement system's assets under management in an
23orderly and fiduciarily responsible manner.
24    Notwithstanding any provision of this Section to the
25contrary, a retirement system may cease divestment pursuant to
26this subsection (f-5) if clear and convincing evidence shows

 

 

10200HB1293sam001- 26 -LRB102 03303 RPS 41682 a

1that the value of investments in such Russian or Belarusian
2sovereign debt and Russian or Belarusian government-backed
3securities becomes equal to or less than 0.05% of the market
4value of all assets under management by the retirement system.
5For any cessation of divestment authorized by this subsection
6(f-5), the retirement system shall provide a written notice to
7the Illinois Investment Policy Board in advance of the
8cessation of divestment, setting forth the reasons and
9justification, supported by clear and convincing evidence, for
10its decision to cease divestment under this subsection (f-5).
11    The provisions of this subsection (f-5) do not apply to
12the retirement system's indirect holdings or private market
13funds.
14    (g) Upon request, and by April 1 of each year, each
15retirement system shall provide the Illinois Investment Policy
16Board with information regarding investments sold, redeemed,
17divested, or withdrawn in compliance with this Section.
18    (h) Notwithstanding any provision of this Section to the
19contrary, a retirement system may cease divesting from
20companies pursuant to subsection (f) if clear and convincing
21evidence shows that the value of investments in such companies
22becomes equal to or less than 0.5% of the market value of all
23assets under management by the retirement system. For any
24cessation of divestment authorized by this subsection (h), the
25retirement system shall provide a written notice to the
26Illinois Investment Policy Board in advance of the cessation

 

 

10200HB1293sam001- 27 -LRB102 03303 RPS 41682 a

1of divestment, setting forth the reasons and justification,
2supported by clear and convincing evidence, for its decision
3to cease divestment under subsection (f).
4    (i) The cost associated with the activities of the
5Illinois Investment Policy Board shall be borne by the boards
6of each pension fund or investment board created under Article
715, 16, or 22A of this Code.
8    (j) With respect to actions taken in compliance with this
9Section, including all good-faith determinations regarding
10companies as required by this Section, the retirement system
11and Illinois Investment Policy Board are exempt from any
12conflicting statutory or common law obligations, including any
13fiduciary duties under this Article and any obligations with
14respect to choice of asset managers, investment funds, or
15investments for the retirement system's securities portfolios.
16    (k) It is not the intent of the General Assembly in
17enacting this amendatory Act of the 99th General Assembly to
18cause divestiture from any company based in the United States
19of America. The Illinois Investment Policy Board shall
20consider this intent when developing or reviewing the list of
21restricted companies.
22    (l) If any provision of this amendatory Act of the 99th
23General Assembly or its application to any person or
24circumstance is held invalid, the invalidity of that provision
25or application does not affect other provisions or
26applications of this amendatory Act of the 99th General

 

 

10200HB1293sam001- 28 -LRB102 03303 RPS 41682 a

1Assembly that can be given effect without the invalid
2provision or application.
3    If any provision of Public Act 100-551 or its application
4to any person or circumstance is held invalid, the invalidity
5of that provision or application does not affect other
6provisions or applications of Public Act 100-551 that can be
7given effect without the invalid provision or application.
8    If any provision of Public Act 102-118 this amendatory Act
9of the 102nd General Assembly or its application to any person
10or circumstance is held invalid, the invalidity of that
11provision or application does not affect other provisions or
12applications of Public Act 102-118 this amendatory Act of the
13102nd General Assembly that can be given effect without the
14invalid provision or application.
15    If any provision of this amendatory Act of the 102nd
16General Assembly or its application to any person or
17circumstance is held invalid, the invalidity of that provision
18or application does not affect other provisions or
19applications of this amendatory Act of the 102nd General
20Assembly that can be given effect without the invalid
21provision or application.
22(Source: P.A. 102-118, eff. 7-23-21; 102-699, eff. 4-19-22.)
 
23    Section 10-40. The Board of Higher Education Act is
24amended by adding Section 9.42 as follows:
 

 

 

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1    (110 ILCS 205/9.42 new)
2    Sec. 9.42. Disclosure of donations from certain Russian,
3Belarusian, or sanctioned sources. The Board shall require
4each public institution of higher education to disclose to the
5Board any endowment or other donation given to the institution
6from a source associated with any individual or entity listed
7on the sanctions list maintained by the U.S. Department of
8Treasury's Office of Foreign Asset Control or any company that
9is domiciled or has its principal place of business in Russia
10or Belarus and is on the list of restricted companies
11developed by the Illinois Investment Policy Board under
12Section 1-110.16 of the Illinois Pension Code.
 
13
Article 99.

 
14    Section 99-97. Severability. The provisions of this Act
15are severable under Section 1.31 of the Statute on Statutes.
 
16    Section 99-99. Effective date. This Act takes effect upon
17becoming law.".