summary
Introduced
02/07/2025
02/07/2025
In Committee
02/07/2025
02/07/2025
Crossed Over
Passed
Dead
Introduced Session
104th General Assembly
Bill Summary
Creates the Foreign Adversary Divestment Act. Defines "foreign adversary" as the People's Republic of China, the Russian Federation, the Islamic Republic of Iran, the Democratic People's Republic of Korea, the Republic of Cuba, the Venezuelan regime of Nicolas Maduro, or the Syrian Arab Republic, or any other entity deemed to be a foreign adversary by the Governor in consultation with the Director of the Illinois Emergency Management Agency and Office of Homeland Security. Provides that all State-managed funds and local-managed funds are prohibited from holding investments in any foreign adversary, State-owned enterprise of a foreign adversary, company domiciled within a foreign adversary, or company owned or controlled by a foreign adversary, State-owned enterprise of a foreign adversary, company domiciled within a foreign adversary, or other entity within a foreign adversary. Provides that all State-managed funds and local-managed funds are prohibited from investing or depositing public funds into any bank that is domiciled or has its principal place of business in a foreign adversary. Requires all State-managed funds to immediately in good faith begin divestment of prohibited holdings under the Act. Provides that total divestment must be achieved by January 1, 2027, or 2 years after the effective date of the Act, whichever is earlier. Requires the Illinois State Board of Investment to identify companies subject to the Act and to include those companies in a list of restricted companies to be distributed to each State-managed fund and local-managed fund. Makes other changes. Contains a severability provision.
AI Summary
This bill establishes the Foreign Adversary Divestment Act, which aims to prevent Illinois public funds from investing in countries considered adversarial to U.S. interests. The bill defines "foreign adversaries" as specific countries including China, Russia, Iran, North Korea, Cuba, Venezuela, and Syria, with the Governor having the ability to expand this list. It prohibits all state-managed and local-managed funds (such as public pension funds, university endowments, and municipal investment funds) from holding investments in foreign adversaries, their state-owned enterprises, or companies domiciled or controlled within these countries. The bill requires the Illinois State Board of Investment to identify and create a list of restricted companies within six months of the Act's effective date. All state-managed funds must begin divesting from these prohibited investments immediately and must achieve total divestment (reducing prohibited investments to no more than 0.05% of total assets) by January 1, 2027, or two years after the Act's effective date, whichever is earlier. The legislation emphasizes that these divestment requirements should not interfere with existing financial safeguards or fiduciary responsibilities, except where those requirements would force investment in a foreign adversary.
Sponsors (1)
Last Action
Referred to Assignments (on 02/07/2025)
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=2365&GAID=18&DocTypeID=SB&SessionID=114&GA=104 |
| BillText | https://www.ilga.gov/legislation/104/SB/10400SB2365.htm |
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