Bill
SB 2462
SB2462 would remove the boycott Israel category from the Illinois Investment Policy Board's restricted companies, narrowing state pension investment screening.
Note on source documents
- The bill caption supplied to you (title about towing companies) does not match the bill text provided. The text and legislative synopsis below describe SB2462 as an amendment to the Illinois Pension Code (40 ILCS 5/1‑110.16) concerning the Illinois Investment Policy Board and the list of “restricted companies.” I summarize the actual bill text below.
Bill at a glance
- Bill number: SB 2462 (104th General Assembly)
- Subject: Amend Illinois Pension Code — 40 ILCS 5/1‑110.16
- Primary sponsor: Sen. Mike Porfirio; multiple co‑sponsors
- Introduced: Feb. 7, 2025 (filed/received Mar. 13, 2025 in Senate records)
- Status: Died in committee (did not advance)
- Key change (per synopsis): Removes the requirement that the Illinois Investment Policy Board include companies that “boycott Israel” on its list of restricted companies; makes conforming edits. Effective immediately.
Purpose and intent
- The bill seeks to revise the statutory definition and administration of the Illinois Investment Policy Board’s list of “restricted companies” used by State retirement systems for investment screening. Specifically, it removes “companies that boycott Israel” from the categories the Board must identify and list.
Key provisions and changes
- Amends Section 1‑110.16 of the Illinois Pension Code (40 ILCS 5/1‑110.16).
- Deletes (or directs deletion of) language that required the Illinois Investment Policy Board to identify and include companies that “boycott Israel” among “restricted companies.”
- Makes conforming edits to definitions and cross‑references so that other provisions referring to “restricted companies” no longer include the “boycott Israel” category.
- Leaves in place other categories enumerated in the section (as shown in the prior text) such as Iran‑restricted companies, Sudan‑restricted companies, expatriated entities, companies domiciled or principally located in Russia or Belarus, and companies subject to specified Russian sanctions — unless otherwise changed elsewhere in the bill language.
- Maintains the Board’s duties to assemble and distribute lists of restricted companies to retirement systems and the State Treasurer, and to review/update those lists periodically (the bill narrows what categories must be identified by removing the “boycott Israel” item).
Who would be affected
- Illinois Investment Policy Board (administrative duties and lists)
- State retirement systems and the Illinois State Board of Investment (investment screening and divestment practices)
- State Treasurer (recipient of the restricted companies list)
- Public pensions’ external investment managers (may change compliance and reporting obligations)
- Companies previously identified solely on the basis of the “boycott Israel” definition would no longer be required to be listed as “restricted” under this statutory authority.
Potential impacts
- Policy: Narrows the legal basis for state pension investment screening/divestment tied to the Israel boycott standard (i.e., may reduce divestment actions based on BDS‑type criteria).
- Financial/fiscal: No explicit appropriation; direct fiscal impact likely limited but investment portfolios and manager practices could be affected depending on how retirement systems react administratively.
- Legal/operational: Retirement systems and the Board would need to adjust internal screening procedures and any existing lists to conform with the statutory change.
- Political: The change touches on politically sensitive investment‑screening criteria and could have reputational or stakeholder effects.
Procedural/timeline notes
- The bill was introduced and had sponsor/co‑sponsor activity during early 2025 but did not advance out of committee (recorded as “Died In Committee”). Because it did not pass, the amendments were not enacted.
If you’d like, I can:
- Produce a redline showing the specific textual deletions and conforming edits in 40 ILCS 5/1‑110.16; or
- Compare the current statute (pre‑amendment) to the bill’s proposed language to show exact wording that would be removed.
Compiled from official sources — confirm details with the bill’s official record.
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