Illinois General Assembly - Full Text of HB1293
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Full Text of HB1293  102nd General Assembly

HB1293ham003 102ND GENERAL ASSEMBLY

Rep. Lindsey LaPointe

Filed: 3/31/2022

 

 


 

 


 
10200HB1293ham003LRB102 03303 RPS 38424 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 has launched an unprecedented military
8    assault on Ukraine that has already left many dead, and
9    the fighting in Ukraine appears to be some of the worst
10    conventional warfare Europe has seen since World War II
11    and the 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    6,500,000 Ukrainians have already been displaced within
17    the country and more than 4,000,000 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;

 

 

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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        (11) Russia's interference, in 2016, with the United
6    States presidential election and the United Kingdom's
7    referendum on membership in the European Union reflects
8    its disregard for national sovereignty; and
9        (12) Russia's ongoing attempts to influence the United
10    States electorate are a threat to national security.
11    (b) For these reasons, the General Assembly urges:
12        (1) the pension funds and retirement systems
13    established under the Illinois Pension Code to divest
14    their holdings in any companies that are domiciled in
15    Russia or Belarus and that are on the list of restricted
16    companies developed by the Illinois Investment Policy
17    Board;
18        (2) the cities of Bloomington and Normal to renounce
19    their sister-city relationship with Vladimir, Russia; the
20    City of Chicago to renounce its sister-city relationship
21    with Moscow, Russia; the City of Dixon to renounce its
22    sister-city relationship with Dikson, Russia; and all
23    other municipalities to renounce any sister-city
24    relationships they may have with cities in Russia; and
25        (3) the United States Department of State to resettle
26    Ukrainian refugees in Illinois.
 

 

 

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1
Article 5.

 
2    Section 5-1. Short title. This Article may be cited as the
3Money Laundering in Real Estate Task Force Act. References in
4this Article to "this Act" mean this Article.
 
5    Section 5-3. Findings. The General Assembly finds and
6declares the following:
7        (1) the United States Department of Treasury's
8    Financial Crimes Enforcement Network found, in 2017, that
9    30% of all high-end real estate purchases in major
10    metropolitan areas involved beneficial owners or
11    purchasers who were the subject of previous suspicious
12    activity reports;
13        (2) the United States, unlike Canada and several other
14    jurisdictions, does not require real estate agents and
15    brokers to file suspicious transaction reports;
16        (3) the lack of beneficial ownership transparency is
17    an important factor in facilitating money laundering in
18    real estate; and
19        (4) money laundering in real estate has negative
20    consequences for local communities, including the
21    dislocation of residents from and within major
22    metropolitan areas.
 

 

 

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1    Section 5-5. Money Laundering in Real Estate Task Force.
2    (a) The Money Laundering in Real Estate Task Force is
3created. The Task Force shall consist of the following
4members:
5        (1) 4 members appointed one each by the Speaker of the
6    House of Representatives, the Minority Leader of the House
7    of Representatives, the President of the Senate, and the
8    Minority Leader of the Senate;
9        (2) the Secretary of Financial and Professional
10    Regulation or the Secretary's designee;
11        (3) the Director of Revenue or the Director's
12    designee;
13        (4) 2 members of the faculty of an institution of
14    higher education in the State with subject matter
15    expertise regarding money laundering in real estate,
16    appointed by the Governor;
17        (5) one expert on real estate tax law, appointed by
18    the Governor;
19        (6) one representative of a statewide banking
20    association representing banks of all asset sizes,
21    appointed by the Governor;
22        (7) one representative of a statewide banking
23    association exclusively representing banks with assets
24    below $20,000,000,000, appointed by the Governor; and
25        (8) 2 representatives of a statewide organization
26    representing real estate brokers, appointed by the

 

 

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1    Governor.
2    (b) Initial appointments to the Task Force shall be made
3as soon as practicable after the effective date of this Act.
4The Task Force shall hold its first meeting within a
5reasonable period of time after its members have been
6appointed and shall convene regularly to carry out its duties
7and submit the reports required under this Act. At its first
8meeting, the Task Force shall elect its chairperson and any
9other officers from among its members.
10    (c) The Department of Financial and Professional
11Regulation and the Department of Revenue shall provide
12administrative and other support to the Task Force.
 
13    Section 5-10. Duties. The Task Force shall:
14        (1) identify vulnerabilities in the real estate sector
15    that facilitate money laundering;
16        (2) provide guidance to help actors in the real estate
17    sector identify suspicious transactions and report them to
18    the proper authorities;
19        (3) explore the means by which illicit money is
20    channeled into the real estate sector and integrated into
21    the legal economy, including, but not limited to, cash
22    purchases, complex loans, monetary instruments, mortgages,
23    investment institutions, fraudulent appraisals, and
24    anonymous corporate entities;
25        (4) assess the exposure of the residential,

 

 

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1    industrial, and commercial real estate sectors in Illinois
2    to illicit Russian money, including, but not limited to,
3    luxury real estate in Chicago and nonresidential real
4    estate in downstate communities; and
5        (5) assess real estate due diligence and reporting
6    practices, requirements, and laws in Illinois and
7    recommend changes needed to eliminate systemic
8    vulnerabilities that facilitate foreign money laundering.
 
9    Section 5-15. Reports. The Task Force shall submit a
10report to the Governor and the General Assembly not later than
1112 months after the effective date of this Act. The report
12shall include the Task Force's findings and shall summarize
13the actions the Task Force has taken and those it intends to
14take in response to its obligations under the Act. After it
15submits its initial report, the Task Force shall periodically
16submit reports to the Governor and the General Assembly as the
17chairperson of the Task Force deems necessary to apprise those
18officials of any additional findings made or actions taken by
19the Task Force. The obligation of the Task Force to submit
20periodic reports shall continue for the duration of the Task
21Force.
 
22    Section 5-20. Dissolution of Task Force; repeal. The Task
23Force is dissolved on January 1, 2025. This Act is repealed on
24January 1, 2026.
 

 

 

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1
Article 10.

 
2    Section 10-5. The Illinois Administrative Procedure Act is
3amended by adding Section 5-45.21 as follows:
 
4    (5 ILCS 100/5-45.21 new)
5    Sec. 5-45.21. Emergency rulemaking; Refugee Resettlement
6Program. To ensure the availability of refugee resettlement
7program services in the case of an imminent, large-scale
8refugee resettlement event, emergency rules may be adopted in
9accordance with Section 5-45 by the Department of Human
10Services. The adoption of emergency rules authorized by
11Section 5-45 and this Section is deemed to be necessary for the
12public interest, safety, and welfare.
13    This Section is repealed one year after the effective date
14of this amendatory Act of the 102nd General Assembly.
 
15    Section 10-7. The Election Code is amended by adding
16Section 1-21 as follows:
 
17    (10 ILCS 5/1-21 new)
18    Sec. 1-21. The Illinois Elections and Infrastructure
19Integrity Task Force.
20    (a) The Illinois Elections and Infrastructure Integrity
21Task Force is created. The Task Force shall consist of the

 

 

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1following members:
2        (1) 4 members appointed one each by the Speaker of the
3    House of Representatives, the Minority Leader of the House
4    of Representatives, the President of the Senate, and the
5    Minority Leader of the Senate;
6        (2) one member of the faculty of an institution of
7    higher education in the State with subject matter
8    expertise regarding cybersecurity, appointed by the
9    Governor;
10        (3) one member of the faculty of an institution of
11    higher education in the State with subject matter
12    expertise regarding voting technology or election
13    integrity, appointed by the Governor;
14        (4) one member who is an individual with current
15    experience in operational cybersecurity, preferably
16    international operational cybersecurity, appointed by the
17    Governor;
18        (5) the president of a statewide association
19    representing county clerks and reporters, appointed by the
20    Governor, or the president's designee;
21        (6) the Chair of the Board of Election Commissioners
22    for the City of Chicago or the Chair's designee;
23        (7) the Executive Director of the State Board of
24    Elections or the Executive Director's designee;
25        (8) the Secretary of State or the Secretary's
26    designee;

 

 

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1        (9) the Director of the Illinois Emergency Management
2    Agency or the Director's designee; and
3        (10) the Secretary of Innovation and Technology or the
4    Secretary's designee.
5    (b) The Task Force shall evaluate and make recommendations
6to prepare for and prevent foreign interference in elections
7in advance of the 2024 election and all future elections in the
8State and to prepare for and prevent potential cyberattacks on
9State infrastructure. In carrying out its duties, the Task
10Force shall prioritize the security of all Illinois residents
11and cooperation with other states and with law enforcement to
12protect United States national sovereignty. The Task Force
13shall submit a report containing its findings and
14recommendations to the Governor and the General Assembly not
15later than 18 months after the effective date of this
16amendatory Act of the 102nd General Assembly.
17    (c) The State Board of Elections shall provide staff and
18administrative support to the Task Force.
19    (d) The Task Force is dissolved, and this Section is
20repealed, on January 1, 2025.
 
21    Section 10-10. The Deposit of State Moneys Act is amended
22by adding Section 22.7 as follows:
 
23    (15 ILCS 520/22.7 new)
24    Sec. 22.7. Russian or Belarusian investments prohibited.

 

 

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1Notwithstanding any provision of law to the contrary, the
2State Treasurer shall not invest State money in Russian or
3Belarusian sovereign debt, Russian or Belarusian
4government-backed securities, any investment instrument issued
5by an entity that is domiciled or has its principal place of
6business in Russia or Belarus, or any investment instrument
7issued by a company that is subject to Russian Harmful Foreign
8Activities Sanctions, as that term is defined under Section
91-110.16 of the Illinois Pension Code, and shall not invest or
10deposit State money in any bank that is domiciled or has its
11principal place of business in Russia or Belarus or in any
12other financial institution that is domiciled or has its
13principal place of business in Russia or Belarus or that is
14subject to Russian Harmful Foreign Activities Sanctions.
 
15    Section 10-20. The Illinois State Police Law of the Civil
16Administrative Code of Illinois is amended by changing Section
172605-35 as follows:
 
18    (20 ILCS 2605/2605-35)  (was 20 ILCS 2605/55a-3)
19    Sec. 2605-35. Division of Criminal Investigation.
20    (a) The Division of Criminal Investigation shall exercise
21the following functions and those in Section 2605-30:
22        (1) Exercise the rights, powers, and duties vested by
23    law in the Illinois State Police by the Illinois Horse
24    Racing Act of 1975, including those set forth in Section

 

 

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1    2605-215.
2        (2) Investigate the origins, activities, personnel,
3    and incidents of crime and enforce the criminal laws of
4    this State related thereto.
5        (3) Enforce all laws regulating the production, sale,
6    prescribing, manufacturing, administering, transporting,
7    having in possession, dispensing, delivering,
8    distributing, or use of controlled substances and
9    cannabis.
10        (4) Cooperate with the police of cities, villages, and
11    incorporated towns and with the police officers of any
12    county in enforcing the laws of the State and in making
13    arrests and recovering property.
14        (5) Apprehend and deliver up any person charged in
15    this State or any other state with treason or a felony or
16    other crime who has fled from justice and is found in this
17    State.
18        (6) Investigate recipients and providers under the
19    Illinois Public Aid Code and any personnel involved in the
20    administration of the Code who are suspected of any
21    violation of the Code pertaining to fraud in the
22    administration, receipt, or provision of assistance and
23    pertaining to any violation of criminal law; and exercise
24    the functions required under Section 2605-220 in the
25    conduct of those investigations.
26        (7) Conduct other investigations as provided by law.

 

 

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1        (8) Investigate public corruption..
2        (9) Exercise other duties that may be assigned by the
3    Director in order to fulfill the responsibilities and
4    achieve the purposes of the Illinois State Police, which
5    may include the coordination of gang, terrorist, and
6    organized crime prevention, control activities, and
7    assisting local law enforcement in their crime control
8    activities.
9        (10) Conduct investigations (and cooperate with
10    federal law enforcement agencies in the investigation) of
11    any property-related crimes, such as money laundering,
12    involving individuals or entities listed on the sanctions
13    list maintained by the U.S. Department of Treasury's
14    Office of Foreign Asset Control.
15    (b) (Blank).
16(Source: P.A. 102-538, eff. 8-20-21; revised 12-2-21.)
 
17    Section 10-30. The Public Funds Investment Act is amended
18by adding Section 2.3 as follows:
 
19    (30 ILCS 235/2.3 new)
20    Sec. 2.3. Russian or Belarusian investments prohibited.
21Notwithstanding any provision of law to the contrary, a public
22agency shall not invest public funds in Russian or Belarusian
23sovereign debt, Russian or Belarusian government-backed
24securities, any investment instrument issued by an entity that

 

 

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1is domiciled or has its principal place of business in Russia
2or Belarus, or any investment instrument issued by a company
3that is subject to Russian Harmful Foreign Activities
4Sanctions, as that term is defined under Section 1-110.16 of
5the Illinois Pension Code, and shall not invest or deposit
6public funds in any bank that is domiciled or has its principal
7place of business in Russia or Belarus or in any other
8financial institution that is domiciled or has its principal
9place of business in Russia or Belarus or that is subject to
10Russian Harmful Foreign Activities Sanctions.
 
11    Section 10-35. 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; companies that boycott Israel, for-profit companies
16that contract to shelter migrant children, Iran-restricted
17companies, Sudan-restricted companies, and expatriated
18entities, companies that are domiciled or have their principal
19place of business in Russia or Belarus, and companies that are
20subject to Russian Harmful Foreign Activities Sanctions.
21    (a) As used in this Section:
22        "Boycott Israel" means engaging in actions that are
23    politically motivated and are intended to penalize,
24    inflict economic harm on, or otherwise limit commercial

 

 

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

 

 

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

 

 

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1    of business in Russia or Belarus, and companies that are
2    subject to Russian Harmful Foreign Activities Sanctions.
3        "Retirement system" means a retirement system
4    established under Article 2, 14, 15, 16, or 18 of this Code
5    or the Illinois State Board of Investment.
6        "Sudan-restricted company" means a company that meets
7    the qualifications under Section 1-110.6 of this Code.
8    (b) There shall be established an Illinois Investment
9Policy Board. The Illinois Investment Policy Board shall
10consist of 7 members. Each board of a pension fund or
11investment board created under Article 15, 16, or 22A of this
12Code shall appoint one member, and the Governor shall appoint
134 members.
14    (c) Notwithstanding any provision of law to the contrary,
15beginning January 1, 2016, Sections 1-110.15 110.15 and
161-110.6 of this Code shall be administered in accordance with
17this Section.
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

 

 

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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

 

 

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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

 

 

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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

 

 

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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    (e) The Illinois Investment Policy Board shall adhere to
14the following procedures for companies on the list of
15restricted companies:
16        (1) For each company newly identified in subsection
17    (d), the Illinois Investment Policy Board, unless it
18    determines by an affirmative vote that it is unfeasible,
19    shall send a written notice informing the company of its
20    status and that it may become subject to divestment or
21    shareholder activism by the retirement systems.
22        (2) If, following the Illinois Investment Policy
23    Board's engagement pursuant to this subsection (e) with a
24    restricted company, that company ceases activity that
25    designates the company to be an Iran-restricted company, a
26    Sudan-restricted company, a company that boycotts Israel,

 

 

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1    an expatriated entity, or a for-profit company that
2    contracts to shelter migrant children, the company shall
3    be removed from the list of restricted companies and the
4    provisions of this Section shall cease to apply to it
5    unless it resumes such activities.
6        (3) For a company that is domiciled or has its
7    principal place of business in Russia or Belarus, if,
8    following the Illinois Investment Policy Board's
9    engagement pursuant to this subsection (e), that company
10    is no longer domiciled or has its principal place of
11    business in Russia or Belarus, the company shall be
12    removed from the list of restricted companies and the
13    provisions of this Section shall cease to apply to it
14    unless it becomes domiciled or has its principal place of
15    business in Russia or Belarus.
16        (4) For a company that is subject to Russian Harmful
17    Foreign Activities Sanctions, if, following the Illinois
18    Investment Policy Board's engagement pursuant to this
19    subsection (e), that company is no longer subject to
20    Russian Harmful Foreign Activities Sanctions, the company
21    shall be removed from the list of restricted companies and
22    the provisions of this Section shall cease to apply to it
23    unless it becomes subject to Russian Harmful Foreign
24    Activities Sanctions.
25    (f) Except as provided in subsection (f-1) of this Section
26the retirement system shall adhere to the following procedures

 

 

10200HB1293ham003- 23 -LRB102 03303 RPS 38424 a

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

 

 

10200HB1293ham003- 24 -LRB102 03303 RPS 38424 a

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

 

 

10200HB1293ham003- 25 -LRB102 03303 RPS 38424 a

1investment instrument issued by a company that is subject to
2Russian Harmful Foreign Activities Sanctions, and no
3retirement system shall invest or deposit State moneys in any
4bank that is domiciled or has its principal place of business
5in Russia or Belarus. As soon as practicable after the
6effective date of this amendatory Act of the 102nd General
7Assembly, each retirement system shall instruct its investment
8advisors to sell, redeem, divest, or withdraw all direct
9holdings of Russian or Belarusian sovereign debt and direct
10holdings of Russian or Belarusian government-backed securities
11from the retirement system's assets under management in an
12orderly and fiduciarily responsible manner.
13    Notwithstanding any provision of this Section to the
14contrary, a retirement system may cease divestment pursuant to
15this subsection (f-5) if clear and convincing evidence shows
16that the value of investments in such Russian or Belarusian
17sovereign debt and Russian or Belarusian government-backed
18securities becomes equal to or less than 0.05% of the market
19value of all assets under management by the retirement system.
20For any cessation of divestment authorized by this subsection
21(f-5), the retirement system shall provide a written notice to
22the Illinois Investment Policy Board in advance of the
23cessation of divestment, setting forth the reasons and
24justification, supported by clear and convincing evidence, for
25its decision to cease divestment under this subsection (f-5).
26    The provisions of this subsection (f-5) do not apply to

 

 

10200HB1293ham003- 26 -LRB102 03303 RPS 38424 a

1the retirement system's indirect holdings or private market
2funds.
3    (g) Upon request, and by April 1 of each year, each
4retirement system shall provide the Illinois Investment Policy
5Board with information regarding investments sold, redeemed,
6divested, or withdrawn in compliance with this Section.
7    (h) Notwithstanding any provision of this Section to the
8contrary, a retirement system may cease divesting from
9companies pursuant to subsection (f) if clear and convincing
10evidence shows that the value of investments in such companies
11becomes equal to or less than 0.5% of the market value of all
12assets under management by the retirement system. For any
13cessation of divestment authorized by this subsection (h), the
14retirement system shall provide a written notice to the
15Illinois Investment Policy Board in advance of the cessation
16of divestment, setting forth the reasons and justification,
17supported by clear and convincing evidence, for its decision
18to cease divestment under subsection (f).
19    (i) The cost associated with the activities of the
20Illinois Investment Policy Board shall be borne by the boards
21of each pension fund or investment board created under Article
2215, 16, or 22A of this Code.
23    (j) With respect to actions taken in compliance with this
24Section, including all good-faith determinations regarding
25companies as required by this Section, the retirement system
26and Illinois Investment Policy Board are exempt from any

 

 

10200HB1293ham003- 27 -LRB102 03303 RPS 38424 a

1conflicting statutory or common law obligations, including any
2fiduciary duties under this Article and any obligations with
3respect to choice of asset managers, investment funds, or
4investments for the retirement system's securities portfolios.
5    (k) It is not the intent of the General Assembly in
6enacting this amendatory Act of the 99th General Assembly to
7cause divestiture from any company based in the United States
8of America. The Illinois Investment Policy Board shall
9consider this intent when developing or reviewing the list of
10restricted companies.
11    (l) If any provision of this amendatory Act of the 99th
12General Assembly or its application to any person or
13circumstance is held invalid, the invalidity of that provision
14or application does not affect other provisions or
15applications of this amendatory Act of the 99th General
16Assembly that can be given effect without the invalid
17provision or application.
18    If any provision of Public Act 100-551 or its application
19to any person or circumstance is held invalid, the invalidity
20of that provision or application does not affect other
21provisions or applications of Public Act 100-551 that can be
22given effect without the invalid provision or application.
23    If any provision of Public Act 102-118 this amendatory Act
24of the 102nd General Assembly or its application to any person
25or circumstance is held invalid, the invalidity of that
26provision or application does not affect other provisions or

 

 

10200HB1293ham003- 28 -LRB102 03303 RPS 38424 a

1applications of Public Act 102-118 this amendatory Act of the
2102nd General Assembly that can be given effect without the
3invalid provision or application.
4    If any provision of this amendatory Act of the 102nd
5General Assembly or its application to any person or
6circumstance is held invalid, the invalidity of that provision
7or application does not affect other provisions or
8applications of this amendatory Act of the 102nd General
9Assembly that can be given effect without the invalid
10provision or application.
11(Source: P.A. 102-118, eff. 7-23-21.)
 
12    Section 10-40. The Board of Higher Education Act is
13amended by adding Section 9.41 as follows:
 
14    (110 ILCS 205/9.41 new)
15    Sec. 9.41. Disclosure of donations from certain Russian,
16Belarusian, or sanctioned sources. The Board shall require
17each public institution of higher education to disclose to the
18Board any endowment or other donation given to the institution
19from a source associated with any individual or entity listed
20on the sanctions list maintained by the U.S. Department of
21Treasury's Office of Foreign Asset Control or any company that
22is domiciled or has its principal place of business in Russia
23or Belarus and is on the list of restricted companies
24developed by the Illinois Investment Policy Board under

 

 

10200HB1293ham003- 29 -LRB102 03303 RPS 38424 a

1Section 1-110.16 of the Illinois Pension Code.
 
2
Article 99.

 
3    Section 99-97. Severability. The provisions of this Act
4are severable under Section 1.31 of the Statute on Statutes.
 
5    Section 99-99. Effective date. This Act takes effect upon
6becoming law.".