103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB2984

 

Introduced 2/16/2023, by Rep. Blaine Wilhour

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Amends the Deposit of State Moneys Act and the Public Funds Investment Act. Prohibits the investment of State moneys and public funds in certain investments or institutions tied to the Chinese Communist Party or the People's Republic of China. Amends the Procurement Code. Provides that each bid or offer submitted for a State contract shall include a disclosure of whether or not the bidder, offeror, or any of its corporate parents or subsidiaries, within the 24 months before submission of the bid or offer had business operations that involved contracts with or provision of supplies or services to the Chinese Communist Party and certain other companies tied to the Chinese Communist Party. Amends the Illinois Pension Code. Provides that the State-funded retirement systems shall not invest moneys in Chinese Communist Party sovereign debt, Chinese Communist Party-backed securities, any investment instrument issued by an entity that is domiciled or has its principal place of business in the People's Republic of China, or any investment instrument issued by a company that is subject to Chinese Military-Industrial Complex Companies Sanctions. Provides that as soon as practicable, each State-funded retirement system shall instruct its investment advisors to sell, redeem, divest, or withdraw all direct holdings of Chinese Communist Party sovereign debt and direct holdings of Chinese Communist Party-backed securities. Requires the Illinois Investment Policy Board to make its best efforts to identify all companies that are domiciled or have their principal place of business in the People's Republic of China and companies subject to Chinese Military-Industrial Complex Companies Sanctions and to include those companies in the list of restricted companies. Makes other changes. Amends the Board of Higher Education Act. Provides that the Board of Higher Education shall require a public institution of higher education to disclose to the Board any endowment or other donation given to the institution from a source associated with any company that is domiciled or has its principal place of business in the People's Republic of China and is on the list of restricted companies developed by the Illinois Investment Policy Board. Makes other changes.


LRB103 29864 RPS 56273 b

 

 

A BILL FOR

 

HB2984LRB103 29864 RPS 56273 b

1    AN ACT concerning State government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Deposit of State Moneys Act is amended by
5adding Section 22.10 as follows:
 
6    (15 ILCS 520/22.10 new)
7    Sec. 22.10. Chinese investments prohibited.
8Notwithstanding any provision of law to the contrary, the
9State Treasurer shall not invest State money in Chinese
10Communist Party sovereign debt, Chinese Communist Party-backed
11securities, any investment instrument issued by an entity that
12is domiciled or has its principal place of business in the
13People's Republic of China, or any investment instrument
14issued by a company that is subject to Chinese
15Military-Industrial Complex Companies Sanctions, as that term
16is defined under Section 1-110.16 of the Illinois Pension
17Code, and shall not invest or deposit State money in any bank
18that is domiciled or has its principal place of business in the
19People's Republic of China or in any other financial
20institution that is domiciled or has its principal place of
21business in the People's Republic of China or that is subject
22to Chinese Military-Industrial Complex Companies Sanctions.
 

 

 

HB2984- 2 -LRB103 29864 RPS 56273 b

1    Section 10. The Public Funds Investment Act is amended by
2adding Section 2.4 as follows:
 
3    (30 ILCS 235/2.4 new)
4    Sec. 2.4. Chinese investments prohibited. Notwithstanding
5any provision of law to the contrary, a public agency shall not
6invest public funds in Chinese Communist Party sovereign debt,
7Chinese Communist Party-backed securities, or any investment
8instrument issued by an entity that is domiciled or has its
9principal place of business in the People's Republic of China,
10or any investment instrument issued by a company that is
11subject to Chinese Military-Industrial Complex Companies
12Sanctions, as that term is defined under Section 1-110.16 of
13the Illinois Pension Code, and shall not invest or deposit
14public funds in any bank that is domiciled or has its principal
15place of business in the People's Republic of China or in any
16other financial institution that is domiciled or has its
17principal place of business in the People's Republic of China
18or that is subject to Chinese Military-Industrial Complex
19Companies Sanctions.
 
20    Section 15. The Illinois Procurement Code is amended by
21adding Section 50-36.5 as follows:
 
22    (30 ILCS 500/50-36.5 new)
23    Sec. 50-36.5. Disclosure of business in the People's

 

 

HB2984- 3 -LRB103 29864 RPS 56273 b

1Republic of China.
2    (a) As used in this Section:
3    "Business operations" means engaging in commerce in any
4form in the People's Republic of China, including, but not
5limited to, acquiring, developing, maintaining, owning,
6selling, possessing, leasing, or operating equipment,
7facilities, personnel, products, services, personal property,
8real property, or any other apparatus of business or commerce.
9    "Company" means any sole proprietorship, organization,
10association, corporation, partnership, joint venture, limited
11partnership, limited liability partnership, limited liability
12company, or other entity or business association, including
13all wholly owned subsidiaries, majority-owned subsidiaries,
14parent companies, or affiliates of those entities or business
15associations, that exists for the purpose of making profit.
16    (b) Each bid or offer submitted for a State contract shall
17include a disclosure of whether or not the bidder, offeror, or
18any of its corporate parents or subsidiaries, within the 24
19months before submission of the bid or offer had business
20operations that involved contracts with or provision of
21supplies or services to the Chinese Communist Party, companies
22in which the Chinese Communist Party has any direct or
23indirect equity share, consortiums or projects commissioned by
24the Chinese Communist Party, or companies involved in
25consortiums or projects commissioned by the Chinese Communist
26Party.

 

 

HB2984- 4 -LRB103 29864 RPS 56273 b

1    (c) A bid or offer that does not include the disclosure
2required by subsection (b) may be given a period after the bid
3or offer is submitted to cure non-disclosure. A chief
4procurement officer may consider the disclosure when
5evaluating the bid or offer or awarding the contract.
6    (d) Each chief procurement officer shall provide the State
7Comptroller with the name of each entity disclosed under
8subsection (b) as doing business or having done business in
9the People's Republic of China. The State Comptroller shall
10post that information on his or her official website.
 
11    Section 20. The Illinois Pension Code is amended by
12changing Section 1-110.16 as follows:
 
13    (40 ILCS 5/1-110.16)
14    Sec. 1-110.16. Transactions prohibited by retirement
15systems; Illinois Investment Policy Board companies that
16boycott Israel, for-profit companies that contract to shelter
17migrant children, Iran-restricted companies, Sudan-restricted
18companies, expatriated entities, companies that are domiciled
19or have their principal place of business in Russia or
20Belarus, and companies that are subject to Russian Harmful
21Foreign Activities Sanctions.
22    (a) As used in this Section:
23        "Boycott Israel" means engaging in actions that are
24    politically motivated and are intended to penalize,

 

 

HB2984- 5 -LRB103 29864 RPS 56273 b

1    inflict economic harm on, or otherwise limit commercial
2    relations with the State of Israel or companies based in
3    the State of Israel or in territories controlled by the
4    State of Israel.
5        "Company" means any sole proprietorship, organization,
6    association, corporation, partnership, joint venture,
7    limited partnership, limited liability partnership,
8    limited liability company, or other entity or business
9    association, including all wholly owned subsidiaries,
10    majority-owned subsidiaries, parent companies, or
11    affiliates of those entities or business associations,
12    that exist for the purpose of making profit.
13        "Company that is subject to Russian Harmful Foreign
14    Activities Sanctions" means a company that is subject to
15    sanctions under the Russian Harmful Foreign Activities
16    Sanctions Regulations (31 CFR Part 587), any Presidential
17    Executive Order imposing sanctions against Russia, or any
18    federal directive issued pursuant to any such Executive
19    Order.
20        "Company that is subject to Chinese
21    Military-Industrial Complex Companies Sanctions" means a
22    company that is subject to sanctions under the Chinese
23    Military-Industrial Complex Companies Sanctions
24    Regulations (31 CFR Part 586), any Presidential Executive
25    Order imposing sanctions against the People's Republic of
26    China or the Chinese Communist Party, or any federal

 

 

HB2984- 6 -LRB103 29864 RPS 56273 b

1    directive issued pursuant to any such Executive Order.
2        "Contract to shelter migrant children" means entering
3    into a contract with the federal government to shelter
4    migrant children under the federal Unaccompanied Alien
5    Children Program or a substantially similar federal
6    program.
7        "Direct holdings" in a company means all publicly
8    traded securities of that company that are held directly
9    by the retirement system in an actively managed account or
10    fund in which the retirement system owns all shares or
11    interests.
12        "Expatriated entity" has the meaning ascribed to it in
13    Section 1-15.120 of the Illinois Procurement Code.
14        "Illinois Investment Policy Board" means the board
15    established under subsection (b) of this Section.
16        "Indirect holdings" in a company means all securities
17    of that company that are held in an account or fund, such
18    as a mutual fund, managed by one or more persons not
19    employed by the retirement system, in which the retirement
20    system owns shares or interests together with other
21    investors not subject to the provisions of this Section or
22    that are held in an index fund.
23        "Iran-restricted company" means a company that meets
24    the qualifications under Section 1-110.15 of this Code.
25        "Private market fund" means any private equity fund,
26    private equity funds of funds, venture capital fund, hedge

 

 

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1    fund, hedge fund of funds, real estate fund, or other
2    investment vehicle that is not publicly traded.
3        "Restricted companies" means companies that boycott
4    Israel, for-profit companies that contract to shelter
5    migrant children, Iran-restricted companies,
6    Sudan-restricted companies, expatriated entities,
7    companies that are domiciled or have their principal place
8    of business in Russia or Belarus, and companies that are
9    subject to Russian Harmful Foreign Activities Sanctions,
10    companies that are domiciled or have their principal place
11    of business in the People's Republic of China, and
12    companies that are subject to Chinese Military-Industrial
13    Complex Companies Sanctions.
14        "Retirement system" means a retirement system
15    established under Article 2, 14, 15, 16, or 18 of this Code
16    or the Illinois State Board of Investment.
17        "Sudan-restricted company" means a company that meets
18    the qualifications under Section 1-110.6 of this Code.
19    (b) There shall be established an Illinois Investment
20Policy Board. The Illinois Investment Policy Board shall
21consist of 7 members. Each board of a pension fund or
22investment board created under Article 15, 16, or 22A of this
23Code shall appoint one member, and the Governor shall appoint
244 members. The Governor shall designate one member of the
25Board as the Chairperson.
26    (b-5) The term of office of each member appointed by the

 

 

HB2984- 8 -LRB103 29864 RPS 56273 b

1Governor, who is serving on the Board on June 30, 2022, is
2abolished on that date. The terms of office of members
3appointed by the Governor after June 30, 2022 shall be as
4follows: 2 initial members shall be appointed for terms of 2
5years, and 2 initial members shall be appointed for terms of 4
6years. Thereafter, the members appointed by the Governor shall
7hold office for 4 years, except that any member chosen to fill
8a vacancy occurring otherwise than by expiration of a term
9shall be appointed only for the unexpired term of the member
10whom he or she shall succeed. Board members may be
11reappointed. The Governor may remove a Governor's appointee to
12the Board for incompetence, neglect of duty, malfeasance, or
13inability to serve.
14    (c) Notwithstanding any provision of law to the contrary,
15beginning January 1, 2016, Sections 1-110.15 and 1-110.6 of
16this Code shall be administered in accordance with this
17Section.
18    (d) By April 1, 2016, the Illinois Investment Policy Board
19shall make its best efforts to identify all Iran-restricted
20companies, Sudan-restricted companies, and companies that
21boycott Israel and assemble those identified companies into a
22list of restricted companies, to be distributed to each
23retirement system.
24    These efforts shall include the following, as appropriate
25in the Illinois Investment Policy Board's judgment:
26        (1) reviewing and relying on publicly available

 

 

HB2984- 9 -LRB103 29864 RPS 56273 b

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

 

 

HB2984- 10 -LRB103 29864 RPS 56273 b

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

 

 

HB2984- 11 -LRB103 29864 RPS 56273 b

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

 

 

HB2984- 12 -LRB103 29864 RPS 56273 b

1    domiciled or have their principal place of business in
2    Russia or Belarus and companies that are subject to
3    Russian Harmful Foreign Activities Sanctions;
4        (3) contacting other institutional investors that have
5    divested from or engaged with companies that are domiciled
6    or have their principal place of business in Russia or
7    Belarus and companies that are subject to Russian Harmful
8    Foreign Activities Sanctions; and
9        (4) retaining an independent research firm to identify
10    companies that are domiciled or have their principal place
11    of business in Russia or Belarus and companies that are
12    subject to Russian Harmful Foreign Activities Sanctions.
13    No later than 6 months after the effective date of this
14amendatory Act of the 103rd General Assembly, the Illinois
15Investment Policy Board shall make its best efforts to
16identify all companies that are domiciled or have their
17principal place of business in the People's Republic of China
18and companies that are subject to Chinese Military-Industrial
19Complex Companies Sanctions and include those companies in the
20list of restricted companies distributed to each retirement
21system. These efforts shall include the following, as
22appropriate in the Illinois Investment Policy Board's
23judgment:
24        (1) reviewing and relying on publicly available
25    information regarding companies that are domiciled or have
26    their principal place of business in the People's Republic

 

 

HB2984- 13 -LRB103 29864 RPS 56273 b

1    of China and companies that are subject to Chinese
2    Military-Industrial Complex Companies Sanctions,
3    including information provided by nonprofit organizations,
4    research firms, and government entities;
5        (2) contacting asset managers contracted by the
6    retirement systems that invest in companies that are
7    domiciled or have their principal place of business in the
8    People's Republic of China and companies that are subject
9    to Chinese Military-Industrial Complex Companies
10    Sanctions;
11        (3) contacting other institutional investors that have
12    divested from or engaged with companies that are domiciled
13    or have their principal place of business in the People's
14    Republic of China and companies that are subject to
15    Chinese Military-Industrial Complex Companies Sanctions;
16    and
17        (4) retaining an independent research firm to identify
18    companies that are domiciled or have their principal place
19    of business in the People's Republic of China and
20    companies that are subject to Chinese Military-Industrial
21    Complex Companies Sanctions.
22    (e) The Illinois Investment Policy Board shall adhere to
23the following procedures for companies on the list of
24restricted companies:
25        (1) For each company newly identified in subsection
26    (d), the Illinois Investment Policy Board, unless it

 

 

HB2984- 14 -LRB103 29864 RPS 56273 b

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

 

 

HB2984- 15 -LRB103 29864 RPS 56273 b

1    Investment Policy Board's engagement pursuant to this
2    subsection (e), that company is no longer subject to
3    Russian Harmful Foreign Activities Sanctions, the company
4    shall be removed from the list of restricted companies and
5    the provisions of this Section shall cease to apply to it
6    unless it becomes subject to Russian Harmful Foreign
7    Activities Sanctions.
8        (5) For a company that is domiciled or has its
9    principal place of business in the People's Republic of
10    China, if, following the Illinois Investment Policy
11    Board's engagement pursuant to this subsection (e), that
12    company is no longer domiciled or has its principal place
13    of business in the People's Republic of China, the company
14    shall be removed from the list of restricted companies and
15    the provisions of this Section shall cease to apply to it
16    unless it becomes domiciled or has its principal place of
17    business in the People's Republic of China.
18        (6) For a company that is subject to Chinese
19    Military-Industrial Complex Companies Sanctions, if,
20    following the Illinois Investment Policy Board's
21    engagement pursuant to this subsection (e), that company
22    is no longer subject to Chinese Military-Industrial
23    Complex Companies Sanctions, the company shall be removed
24    from the list of restricted companies and the provisions
25    of this Section shall cease to apply to it unless it
26    becomes subject to Chinese Military-Industrial Complex

 

 

HB2984- 16 -LRB103 29864 RPS 56273 b

1    Companies Sanctions.
2    (f) Except as provided in subsection (f-1) of this Section
3the retirement system shall adhere to the following procedures
4for companies on the list of restricted companies:
5        (1) The retirement system shall identify those
6    companies on the list of restricted companies in which the
7    retirement system owns direct holdings and indirect
8    holdings.
9        (2) The retirement system shall instruct its
10    investment advisors to sell, redeem, divest, or withdraw
11    all direct holdings of restricted companies from the
12    retirement system's assets under management in an orderly
13    and fiduciarily responsible manner within 12 months after
14    the company's most recent appearance on the list of
15    restricted companies.
16        (3) The retirement system may not acquire securities
17    of restricted companies.
18        (4) The provisions of this subsection (f) do not apply
19    to the retirement system's indirect holdings or private
20    market funds. The Illinois Investment Policy Board shall
21    submit letters to the managers of those investment funds
22    containing restricted companies requesting that they
23    consider removing the companies from the fund or create a
24    similar actively managed fund having indirect holdings
25    devoid of the companies. If the manager creates a similar
26    fund, the retirement system shall replace all applicable

 

 

HB2984- 17 -LRB103 29864 RPS 56273 b

1    investments with investments in the similar fund in an
2    expedited timeframe consistent with prudent investing
3    standards.
4    (f-1) The retirement system shall adhere to the following
5procedures for restricted companies that are expatriated
6entities or for-profit companies that contract to shelter
7migrant children:
8        (1) To the extent that the retirement system believes
9    that shareholder activism would be more impactful than
10    divestment, the retirement system shall have the authority
11    to engage with a restricted company prior to divesting.
12        (2) Subject to any applicable State or Federal laws,
13    methods of shareholder activism utilized by the retirement
14    system may include, but are not limited to, bringing
15    shareholder resolutions and proxy voting on shareholder
16    resolutions.
17        (3) The retirement system shall report on its
18    shareholder activism and the outcome of such efforts to
19    the Illinois Investment Policy Board by April 1 of each
20    year.
21        (4) If the engagement efforts of the retirement system
22    are unsuccessful, then it shall adhere to the procedures
23    under subsection (f) of this Section.
24    (f-5) Beginning on the effective date of this amendatory
25Act of the 102nd General Assembly, no retirement system shall
26invest moneys in Russian or Belarusian sovereign debt, Russian

 

 

HB2984- 18 -LRB103 29864 RPS 56273 b

1or Belarusian government-backed securities, any investment
2instrument issued by an entity that is domiciled or has its
3principal place of business in Russia or Belarus, or any
4investment instrument issued by a company that is subject to
5Russian Harmful Foreign Activities Sanctions, and no
6retirement system shall invest or deposit State moneys in any
7bank that is domiciled or has its principal place of business
8in Russia or Belarus. As soon as practicable after the
9effective date of this amendatory Act of the 102nd General
10Assembly, each retirement system shall instruct its investment
11advisors to sell, redeem, divest, or withdraw all direct
12holdings of Russian or Belarusian sovereign debt and direct
13holdings of Russian or Belarusian government-backed securities
14from the retirement system's assets under management in an
15orderly and fiduciarily responsible manner.
16    Notwithstanding any provision of this Section to the
17contrary, a retirement system may cease divestment pursuant to
18this subsection (f-5) if clear and convincing evidence shows
19that the value of investments in such Russian or Belarusian
20sovereign debt and Russian or Belarusian government-backed
21securities becomes equal to or less than 0.05% of the market
22value of all assets under management by the retirement system.
23For any cessation of divestment authorized by this subsection
24(f-5), the retirement system shall provide a written notice to
25the Illinois Investment Policy Board in advance of the
26cessation of divestment, setting forth the reasons and

 

 

HB2984- 19 -LRB103 29864 RPS 56273 b

1justification, supported by clear and convincing evidence, for
2its decision to cease divestment under this subsection (f-5).
3    The provisions of this subsection (f-5) do not apply to
4the retirement system's indirect holdings or private market
5funds.
6    (f-10) Beginning on the effective date of this amendatory
7Act of the 103rd General Assembly, no retirement system shall
8invest moneys in Chinese Communist Party sovereign debt,
9Chinese Communist Party-backed securities, any investment
10instrument issued by an entity that is domiciled or has its
11principal place of business in the People's Republic of China,
12or any investment instrument issued by a company that is
13subject to Chinese Military-Industrial Complex Companies
14Sanctions, and no retirement system shall invest or deposit
15State moneys in any bank that is domiciled or has its principal
16place of business in the People's Republic of China. As soon as
17practicable after the effective date of this amendatory Act of
18the 103rd General Assembly, each retirement system shall
19instruct its investment advisors to sell, redeem, divest, or
20withdraw all direct holdings of Chinese Communist Party
21sovereign debt and direct holdings of Chinese Communist
22Party-backed securities from the retirement system's assets
23under management in an orderly and fiduciarily responsible
24manner.
25    Notwithstanding any provision of this Section to the
26contrary, a retirement system may cease divestment pursuant to

 

 

HB2984- 20 -LRB103 29864 RPS 56273 b

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

 

 

HB2984- 21 -LRB103 29864 RPS 56273 b

1Illinois Investment Policy Board in advance of the cessation
2of divestment, setting forth the reasons and justification,
3supported by clear and convincing evidence, for its decision
4to cease divestment under subsection (f).
5    (i) The cost associated with the activities of the
6Illinois Investment Policy Board shall be borne by the boards
7of each pension fund or investment board created under Article
815, 16, or 22A of this Code.
9    (j) With respect to actions taken in compliance with this
10Section, including all good-faith determinations regarding
11companies as required by this Section, the retirement system
12and Illinois Investment Policy Board are exempt from any
13conflicting statutory or common law obligations, including any
14fiduciary duties under this Article and any obligations with
15respect to choice of asset managers, investment funds, or
16investments for the retirement system's securities portfolios.
17    (k) It is not the intent of the General Assembly in
18enacting this amendatory Act of the 99th General Assembly to
19cause divestiture from any company based in the United States
20of America. The Illinois Investment Policy Board shall
21consider this intent when developing or reviewing the list of
22restricted companies.
23    (l) If any provision of this amendatory Act of the 99th
24General Assembly or its application to any person or
25circumstance is held invalid, the invalidity of that provision
26or application does not affect other provisions or

 

 

HB2984- 22 -LRB103 29864 RPS 56273 b

1applications of this amendatory Act of the 99th General
2Assembly that can be given effect without the invalid
3provision or application.
4    If any provision of Public Act 100-551 or its application
5to any person or circumstance is held invalid, the invalidity
6of that provision or application does not affect other
7provisions or applications of Public Act 100-551 that can be
8given effect without the invalid provision or application.
9    If any provision of Public Act 102-118 or its application
10to any person or circumstance is held invalid, the invalidity
11of that provision or application does not affect other
12provisions or applications of Public Act 102-118 that can be
13given effect without the invalid provision or application.
14    If any provision of this amendatory Act of the 102nd
15General Assembly or its application to any person or
16circumstance is held invalid, the invalidity of that provision
17or application does not affect other provisions or
18applications of this amendatory Act of the 102nd General
19Assembly that can be given effect without the invalid
20provision or application.
21    If any provision of this amendatory Act of the 103rd
22General Assembly or its application to any person or
23circumstance is held invalid, the invalidity of that provision
24or application does not affect other provisions or
25applications of this amendatory Act of the 103rd General
26Assembly that can be given effect without the invalid

 

 

HB2984- 23 -LRB103 29864 RPS 56273 b

1provision or application.
2(Source: P.A. 102-118, eff. 7-23-21; 102-699, eff. 4-19-22;
3102-1108, eff. 12-21-22.)
 
4    Section 25. The Board of Higher Education Act is amended
5by changing Section 9.42 as follows:
 
6    (110 ILCS 205/9.42)
7    Sec. 9.42. Disclosure of donations from certain Russian,
8Belarusian, Chinese, or sanctioned sources. The Board shall
9require each public institution of higher education to
10disclose to the Board any endowment or other donation given to
11the institution from a source associated with any individual
12or entity listed on the sanctions list maintained by the U.S.
13Department of Treasury's Office of Foreign Asset Control or
14any company that is domiciled or has its principal place of
15business in Russia, or Belarus, or the People's Republic of
16China and is on the list of restricted companies developed by
17the Illinois Investment Policy Board under Section 1-110.16 of
18the Illinois Pension Code.
19(Source: P.A. 102-1108, eff. 12-21-22.)

 

 

HB2984- 24 -LRB103 29864 RPS 56273 b

1 INDEX
2 Statutes amended in order of appearance
3    15 ILCS 520/22.10 new
4    30 ILCS 235/2.4 new
5    30 ILCS 500/50-36.5 new
6    40 ILCS 5/1-110.16
7    110 ILCS 205/9.42