summary
Introduced
01/09/2025
01/09/2025
In Committee
01/09/2025
01/09/2025
Crossed Over
Passed
Dead
Introduced Session
104th General Assembly
Bill Summary
Amends the University of Illinois Act. Provides that the Board of Trustees shall direct the University of Illinois System, in addition to the Office of Investments and external investment managers, to not invest the assets of any endowment fund in the stocks, securities, or other obligations of any fossil fuel company or any subsidiary, affiliate, or parent of any fossil fuel company. Provides that this does not preclude the de minimis exposure of any funds held by the endowment fund to the stocks, securities, or other obligations of any fossil fuel company or any subsidiary, affiliate, or parent of any fossil fuel company. Requires the Board of Trustees to direct the University of Illinois System, in addition to the Office of Investments and external investment managers, to not invest in any prime commercial paper or corporate bonds issued by a fossil fuel company. Provides that, beginning one year after the effective date of the amendatory Act, the Board of Trustees, subject to an affirmative determination of prudence and in accordance with sound investment criteria and consistent with its fiduciary obligations, shall direct the University of Illinois System to ensure that any endowment fund does not have any indirect investments; defines "indirect investment". Provides that the Board of Trustees shall direct the University of Illinois System, in addition to the Office of Investments and external investment managers, to adopt updates to its written investment policies, if necessary, to meet the requirements of these provisions and publish a copy of those updated policies within 90 days after the adoption of the updated policies. Effective immediately.
AI Summary
This bill requires the University of Illinois Board of Trustees to divest the university's endowment funds from fossil fuel companies, with specific definitions and implementation requirements. The bill defines a "fossil fuel company" as those among the largest publicly traded companies with fossil fuel reserves, major coal-fired power plant owners, or companies whose core business involves fossil fuel infrastructure, exploration, extraction, refining, processing, or distribution. It mandates that the university cannot invest endowment funds in stocks, securities, or obligations of such companies, with a small exception for minimal exposure. The bill also prohibits investments in prime commercial paper or corporate bonds from fossil fuel companies. Starting one year after the bill's effective date, the Board must ensure no indirect investments in fossil fuel companies, defined as holding more than a 1% interest in such companies. The legislation requires the Board to update and publish its investment policies within 90 days to comply with these requirements. The bill's rationale is grounded in the belief that climate change poses a serious threat to public health and safety, and that continued investment in fossil fuel companies is contrary to the university's mission.
Sponsors (14)
Will Guzzardi (D)*,
Carol Ammons (D),
Dee Avelar (D),
Diane Blair-Sherlock (D),
Laura Faver Dias (D),
Edgar González (D),
Barbara Hernandez (D),
Maura Hirschauer (D),
Lindsey LaPointe (D),
Joyce Mason (D),
Abdelnasser Rashid (D),
Anne Stava-Murray (D),
Nabeela Syed (D),
Ann Williams (D),
Last Action
Added Co-Sponsor Rep. Ann M. Williams (on 05/01/2025)
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.ilga.gov/legislation/BillStatus.asp?DocNum=1155&GAID=18&DocTypeID=HB&SessionID=114&GA=104 |
| BillText | https://www.ilga.gov/legislation/104/HB/10400HB1155.htm |
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