SB 2152

Abstract

Amends the State Universities, Downstate Teachers, and Board of Investment Articles of the Illinois Pension Code. Provides that the State Treasurer shall manage the System's or Investment Board's domestic and international proxy voting activity and execute required ballots on behalf of the System or Investment Board. Requires the State Treasurer to provide the Board of the System or Investment Board with comprehensive proxy voting reports on a quarterly basis and as requested by the Board of the System or Investment Board. Requires the Board of the System and the Investment Board to annually publish a report on its website describing how the Board is considering sustainability factors as defined in the Illinois Sustainable Investing Act and other information. Effective January 1, 2024. Senate Committee Amendment No. 2 Adds reference to: 40 ILCS 5/15-177.6 new 40 ILCS 5/16-189 new 40 ILCS 5/22A-106 from Ch. 108 1/2, par. 22A-106 40 ILCS 5/22A-113.5 new Replaces everything after the enacting clause. Amends the State Universities, Downstate Teachers, and Board of Investment Articles of the Illinois Pension Code. Provides that the State Treasurer, upon the request of the Board, shall manage the domestic and international proxy voting activity for shares held directly by the System or Investment Board and execute required ballots on behalf of the System or Investment Board. Requires the State Treasurer to provide the Board of the System or the Investment Board with comprehensive proxy voting reports on a quarterly basis and as requested. Sets forth provisions concerning fiduciary duties of the State Treasurer with regard to proxy voting; limitations on liability; and costs associated with proxy voting. Repeals the provisions on January 1, 2027. Requires the Board of the System and the Investment Board to annually publish their guidelines for voting proxy ballots and a detailed report on their websites describing how the Boards are considering sustainability factors as defined in the Illinois Sustainable Investing Act and other information. Effective January 1, 2024. Senate Floor Amendment No. 3 Replaces everything after the enacting clause. Reinserts the provisions of the bill as amended by Senate Amendment No. 2 with the following changes. Provides that the State Treasurer, upon the affirmative vote of three-fifths of the Board (instead of upon the request of the Board), shall manage the domestic and international proxy voting activity for shares held directly by the System or Investment Board and execute required ballots on behalf of the System or Investment Board. Provides that the Board's consent may be revoked at any time upon the affirmative vote of a majority of the Board. Requires the State Treasurer to provide access to communications with its third-party proxy voting service, if any, used in preparing the comprehensive proxy voting reports requested by the Board. Authorizes the Board to provide the State Treasurer with guidance for proxy voting, which, if provided, the State Treasurer shall consider when voting. Provides that in order to facilitate the State Treasurer's proxy voting activities and before the State Treasurer begins proxy voting activities, the State Treasurer and the Board shall enter into an intergovernmental agreement concerning costs, proxy voting guidance, reports and other documents, and other issues. Removes language providing that all costs associated with the State Treasurer's management of proxy voting activity shall be borne exclusively by the State Treasurer. Provides that on or before September 1, 2023 (instead of January 1, 2025), and annually thereafter, the Board shall publish its guidelines for voting proxy ballots and a detailed report on its website describing how the Board is considering sustainability factors. Makes other changes. Effective immediately (instead of January 1, 2024).