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HB 3123

Relating to wildfire.

2025 Regular Session Introduced by Mark Owens

Illinois bans state/public funds and pensions from investing in PRC/CCP-linked assets and requires bidders and public colleges to disclose PRC ties and donations.

In committee upon adjournment.
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Bill Summary · HB 3123

HB 3123 — Relating to wildfire (as introduced)

Status: In committee upon adjournment (introduced Feb 18–20, 2025)
Primary sponsor: Rep. Blaine Wilhour

Note: Although the bill caption references “wildfire,” the substantive provisions in the introduced version focus on prohibiting certain investments and requiring disclosures related to the People’s Republic of China (PRC) and entities tied to the Chinese Communist Party (CCP).

Purpose / intent

The bill seeks to prohibit Illinois State government entities and public agencies from investing State or public funds in certain financial instruments, institutions, and companies tied to the PRC or the Chinese Communist Party, to require disclosure by bidders on State contracts about recent business activity in the PRC, and to require public higher education institutions to disclose donations/endowments connected to PRC-domiciled companies on a restricted list.

Key provisions (by statutory change)

  1. Deposit of State Moneys Act (new Sec. 22.10)

    • Prohibits State investments or deposits in:
      • CCP sovereign debt and CCP-backed securities;
      • Any investment instrument issued by an entity domiciled or with principal place of business in the PRC;
      • Any investment instrument issued by a company subject to “Chinese Military-Industrial Complex Companies Sanctions” (defined in the Illinois Pension Code);
      • Banks/financial institutions domiciled or principally located in the PRC or subject to those sanctions.

  2. Public Funds Investment Act (new Sec. 2.4)

    • Mirrors the above prohibitions for public agencies investing public funds.

  3. Illinois Procurement Code (new Sec. 50‑36.5)

    • Requires each bid/offer for a State contract to disclose whether the bidder (or corporate parents/subsidiaries) in the prior 24 months engaged in business operations in the PRC that involved contracts with or provision of supplies/services to the CCP or certain PRC-tied companies.
    • Failure to include the disclosure can be cured after bid submission at the discretion of the procurement officer.
    • Chief procurement officers must submit disclosed entity names to the State Comptroller, who will publish them on the official website.

  4. Illinois Pension Code (amend Sec. 1‑110.16)

    • Prohibits State-funded retirement systems from investing in CCP sovereign debt, CCP-backed securities, investment instruments issued by PRC‑domiciled entities, or instruments of companies subject to the Chinese Military‑Industrial Complex Companies Sanctions.
    • Requires pension systems to instruct advisors to sell/divest direct holdings of banned instruments “as soon as practicable.”
    • Directs the Illinois Investment Policy Board to identify PRC‑domiciled companies and sanctioned companies and include them on a restricted companies list.

  5. Board of Higher Education Act (amendment)

    • Requires public institutions of higher education to disclose to the Board any endowment or other donation from a source associated with companies domiciled in the PRC that appear on the Investment Policy Board’s restricted list.

Who is affected

  • State Treasurer and custodians of State funds
  • Public agencies and local entities subject to the Public Funds Investment Act
  • State-funded retirement systems and their investment advisors
  • Bidders/offerors for State contracts (24‑month disclosure requirement)
  • Public colleges and universities (donation/endowment disclosures)
  • Illinois Investment Policy Board and State Comptroller (administration and public posting)
  • Financial institutions and companies domiciled in the PRC or on the restricted list (excluded from receiving State/public funds or contracts)

Timing / procedural status

  • Introduced Feb 18–20, 2025. Read and referred through multiple committees (Rules; Criminal Jurisprudence; Climate, Energy & Environment; Ways & Means).
  • Legislative actions show filing and committee referrals; as of 2025‑06‑28 the bill is “in committee upon adjournment.”

Practical impact and implementation notes

  • Would narrow permitted investments for State and public funds, potentially requiring divestment of existing holdings “as soon as practicable.”
  • Creates compliance and reporting obligations for bidders and public institutions; expands duties for the Investment Policy Board and Comptroller.
  • Could reduce investment options for public funds and require contract-screening processes; may prompt operational costs for identification, reporting, and divestment.
  • Uses defined terms and references (e.g., “Chinese Military‑Industrial Complex Companies Sanctions” in Sec. 1‑110.16). Some enforcement details (timing, exceptions, remedies) are phrased broadly (e.g., “as soon as practicable,” procurement officer discretion).

Observations

  • The bill’s title and initial caption referencing “wildfire” appears inconsistent with the content, which addresses China-related investment and procurement restrictions. The introduced text is partially truncated in places; the full bill text should be reviewed for complete definitions, lists, and any exceptions.

Compiled from official sources — confirm details with the bill’s official record.

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