IL HB0232

Establishes an Illinois Investment Policy Board with 7 members to identify and maintain a list of restricted companies in which state pension systems cannot invest.

Expands prohibited investments to include for-profit companies contracting to shelter migrant children under the federal Unaccompanied Alien Children Program, effective July 1, 2022.

Requires retirement systems to divest from direct holdings of restricted companies (Iran-restricted, Sudan-restricted, Israel boycott companies, expatriated entities, and migrant child shelter contractors) within 12 months of identification.

Allows shareholder activism as an alternative to divestment for expatriated entities and migrant child shelter contractors, with retirement systems reporting results annually to the Investment Policy Board.

Permits the Investment Policy Board to end divestment requirements after at least 4 years if goals are achieved or circumstances change, subject to General Assembly notification and 1-year waiting period.