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IL HB2780

IL HB2780
PEN CD-PROHIBITED TRANSACTIONS

summary

Introduced
02/05/2025
In Committee
02/06/2025
Crossed Over
Passed
Dead

Introduced Session

104th General Assembly

Bill Summary

Amends the General Provisions Article of the Illinois Pension Code. With regard to the 5 State-funded retirement systems, provides that the following are forbidden entities for purposes of investment and certain other transactions: Hamas; any company or entity that is wholly or partially managed or controlled by Hamas; any company identified by the Office of Foreign Assets Control in the United States Department of the Treasury as sponsoring terrorist activities in conjunction with Hamas or under specified regulations pertaining to terrorism sanctions; any company that has been fined, penalized, or sanctioned by the Office of Foreign Assets Control in the United States Department of the Treasury for any violation of any United States rules and restrictions relating to Hamas that occurred at any time following the effective date of the amendatory Act; or any company that has business operations that involve contracts with or the provision of supplies or services to Hamas, companies in which Hamas has any direct or indirect equity share, or consortiums or projects commissioned by Hamas. Provides that a retirement system shall not transfer or disburse funds to, deposit into, acquire any bonds or commercial paper from, or otherwise loan to or invest in any entity unless a certifying company certifies to the retirement system that: (1) with respect to investments in a publicly traded company, the certifying company has relied on information provided by an independent researching firm that specializes in global security risk; and (2) 100% of the retirement system's assets for which the certifying company provides services or advice are not and have not been invested or reinvested in any forbidden entity at any time after 4 months after the effective date of the amendatory Act. Requires the Illinois Investment Policy Board to make its best efforts to identify all Hamas-restricted companies and include those companies in the list of restricted companies for purposes of investment distributed to each retirement system and the Illinois State Board of Investment. Makes conforming changes.

AI Summary

This bill amends the Illinois Pension Code to prohibit state retirement systems from investing in or transacting with entities associated with Hamas, a designated Foreign Terrorist Organization. The bill defines "forbidden entities" as Hamas itself, companies managed or controlled by Hamas, companies identified by the U.S. Treasury's Office of Foreign Assets Control as sponsoring terrorist activities related to Hamas, companies sanctioned for Hamas-related violations, and companies doing business with Hamas. Before making any investments, retirement systems must obtain certification from a qualified company that: (1) for publicly traded companies, the certification relies on independent global security risk research, and (2) 100% of the system's assets are not invested in any forbidden entities within four months of the bill's effective date. The Illinois Investment Policy Board is required to identify and maintain a list of Hamas-restricted companies, and the bill provides that any transactions violating these provisions are against public policy and can be voided by the retirement system. The legislation applies to five state-funded retirement systems and is intended to prevent public pension investments from supporting organizations associated with terrorism, reflecting the General Assembly's stance against entities that pose potential risks to public safety and Illinois residents.

Sponsors (9)

Last Action

Added Co-Sponsor Rep. Blaine Wilhour (on 02/19/2025)

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