Anti-BDS bill signed into law
Thursday, Jul 23, 2015 - Posted by Rich Miller
* Press release…
A measure that adds companies that boycott Israel to the state’s existing divestiture requirements was signed by Governor Rauner today, making Illinois the first state in the country to enact anti-BDS legislation.
Sponsored by state Rep. Sara Feigenholtz (D-Chicago), Senate Bill 1761 creates the Illinois Investment Policy Board, which will maintain a list of restricted companies for the state-funded pension systems and Illinois State Board of Investments (ISBI).
“Israel is one of our closest allies, and we have a responsibility to protect the economic wellbeing of all of our friends,” said Feigenholtz. “This law ensures that our state invests in a way that is aligned with our interests and moral obligations.”
The pension systems and ISBI could not invest in any restricted company, which includes companies that boycott Israel or have relations with Iran or Sudan. Pension systems currently investing in companies on the restricted list would be required to divest. Divestment is not required if the total investment in a restricted company is less than 0.5% of the market value of all assets of the pension system or ISBI.
“With every investment we’re making a statement about the kind of society we want to live in,” said Feigenholtz. “This legislation uses taxpayer dollars in a conscious, responsible manner and makes it clear that Illinois stands with Israel.”
…Adding… From the governor’s office…
Flanked by bipartisan legislators, Jewish community leaders and the Consul General of Israel to the Midwest, Gov. Bruce Rauner today signed historic legislation making Illinois the first state in America to divest its public pension funds from companies that participate in the Boycott, Sanctions, Divestment (BDS) movement targeting Israel.
The Illinois law is the first state-based measure to take specific concrete action against boycotts of Israel. The legislation, which was modeled after past measures relating to Iran and Sudan, requires state pension systems to terminate direct investment in companies that boycott Israel and issue warnings to fund managers when such companies are held indirectly inside larger portfolios. The statute defines “boycotting Israel” as “engaging in actions that are politically motivated and are intended to penalize, inflict economic harm on, or otherwise limit commercial relations with the State of Israel or companies based in the State of Israel or in territories controlled by the State of Israel.”
“We need to stand up to anti-Semitism whenever and wherever we see it,” Gov. Rauner said. “This historic legislation is an important first step in the fight against boycotts of Israel and I hope other states move quickly to follow our lead. I want to thank Sen. Silverstein, Rep. Feigenholtz and all the sponsors of this legislation for working with our Administration to take a stand against BDS.”
The anti-BDS measure, SB 1761, was initiated by Gov. Rauner and sponsored by Sen. Ira Silverstein (D-Chicago) and Rep. Sara Feigenholtz (D-Chicago). It passed 49-0 in the Senate and 102-0 in the House.
- State Employee - Thursday, Jul 23, 15 @ 2:45 pm:
Now I can sleep better at night…
- walker - Thursday, Jul 23, 15 @ 2:48 pm:
Why do we need another state board to do this? Can’t the Treasurer’s office figure out how to do this using publicly available info?
Hopefully Rauner will not populate this board, and get the job done more simply.
- 47th Ward - Thursday, Jul 23, 15 @ 2:49 pm:
===“We need to stand up to anti-Semitism whenever and wherever we see it,”===
Agree 100%. But being critical of the policies pursued by the State of Israel is not necessarily anti-Semitic, is it?
- A guy - Thursday, Jul 23, 15 @ 2:51 pm:
Agreed Walk. All for the purpose of this legislation. The Treasurers office could certainly handle the logistics of it.
- @MisterJayEm - Thursday, Jul 23, 15 @ 3:06 pm:
“the first state in the country to enact anti-BDS legislation.”
What consenting adults do in the privacy of their own bedrooms is none of the business of the State of Illinois! This is outrag — Huh?
Oh.
But I thought…
Nevermind.
– MrJM
- bingbing - Thursday, Jul 23, 15 @ 3:29 pm:
I truly do not understand how this doesn’t violate the first amendment.
- blogginghead - Thursday, Jul 23, 15 @ 3:32 pm:
Anyone that tells you this doesn’t violate the pension funds’ fiduciary duties is full of it.
- Davos Seaworth - Thursday, Jul 23, 15 @ 3:50 pm:
Blogginghead,
There is language in this law that exempts the Systems from fiduciary duties as it relates to the compliance with this law.
If I’m the Treasurer’s office, I’m not sure I would want the responsibility to determine who is on the list. Certain entities that would make this list might raise a fit and we all know that politicians want to avoid as much blame and bellyaching when at all possible. This was an initiative of the Gov’s office from the onset and if I were the Treasurer, I would have opposed any provision placing full responsibility on my shoulders for determining this list.
- Strangerthings - Thursday, Jul 23, 15 @ 4:00 pm:
Normally I would disagree with 4th Ward but in this case I have to agree. Disagreeing with a policy is not an act of antisemitism.
- AlanD - Thursday, Jul 23, 15 @ 4:06 pm:
Israel is the only country in the world today being threatened with BDS. When a sanction is directed against only a state with one of the best records of human rights, and that nation happens to be the state of the Jewish people, the suspicion of bigotry must be considered.
- Wordslinger - Thursday, Jul 23, 15 @ 4:25 pm:
Well, that clears up that whole Middle East thing, eezy-peezy, lemon-squeezy.
Next!
For crying out loud, there are plenty of Jews around the world and in Israel who oppose many policies of the current Israeli government. That doesn’t make them anti-Semitic.
Israeli politics is about the most contentious in the world.
- Streator Curmudgeon - Thursday, Jul 23, 15 @ 4:30 pm:
No BDS and the bobcats we got, but no budget. Oy.
- Arthur Andersen - Thursday, Jul 23, 15 @ 4:45 pm:
I’m not sure this law is going to have any impact at all.
The 0.5% threshold will eliminate many holdings from consideration. For example, 0.5% of TRS’ assets is appx. $250 million. None of their U.S. or International stock holdings hit this amount as of June 30, 2014. Only one fixed income holding exceeded the threshold and is not likely to be subject to the bill, as it is a fund of government bonds. Private market accounts appear to be either below the threshold, not under the intent of the law, or both.
If the other funds and ISBI are similarly situated, there’s not going to be much to divest.
- Capitol View - Thursday, Jul 23, 15 @ 5:13 pm:
the hope is that the larger cluster funds will avoid companies that participate in BDS. This might hurt their profitability by the exclusion. And then the companies wanting to be listd would drop their anti-Jewish, anti-Israel business practices for their own self interest.
- Triple fat - Thursday, Jul 23, 15 @ 5:15 pm:
Telling Israel that they need to treat the Palestinans as human beings is anti-Semitic and reminding Israel that sometimes democracy isn’t pretty is being anti-Semitic? Wow. Just wow. South Africa must be scratching their collective heads.
- Triple fat - Thursday, Jul 23, 15 @ 5:23 pm:
bingbing,
You’re so right! This law would never stand if taken to the U.S. Supreme Court. After all as our illustrious Governor knows - money is speech.
- NoGifts - Thursday, Jul 23, 15 @ 6:19 pm:
Excellent, with the trouble the pension fund has already we’re going to start choosing investments based on political interests. I think the obligation of the pension investment board is to make the best investments for the participants, not serve the personal interests of a few politicians.
- DuPage Dave - Thursday, Jul 23, 15 @ 6:42 pm:
10 demerits for Rauner buying into the argument that opposition to the policies of Israel is equivalent to anti-semitism.
- Arthur Andersen - Thursday, Jul 23, 15 @ 6:47 pm:
BTW, US-based companies are also exempt from the provisions of the law.
- Yiddish cowboy - Thursday, Jul 23, 15 @ 6:57 pm:
@ Triple fat: the entire BDS movement is solely about de-legitimizing Israel as a Jewish state. And your apartheid comment (Israel is an apartheid state), typical BDS drivel,is not surprising, incorrect, but not surprising.
- Anonymous - Thursday, Jul 23, 15 @ 7:22 pm:
Crock
- Wordslinger - Thursday, Jul 23, 15 @ 7:24 pm:
YC, as Barak, Olmert, Livni and other Israeli leaders have driveled, it’s not quite that simple. Nothing in that neighborhood is.
- George OhWell - Thursday, Jul 23, 15 @ 9:02 pm:
This sort of thing gets discussed re: TRS and Koch Industries, but sensible heads always prevail when they play the fiduciary card. If TRS makes some money off Koch Industries…. see it as a silver lining.
- Triple fat - Thursday, Jul 23, 15 @ 9:09 pm:
Rich you’re going to let that sanctimonious ass have the last word? Come on man!
- Triple fat - Thursday, Jul 23, 15 @ 9:32 pm:
Let me try again - Yiddish cowboy so you are claiming that Palestinians have the right of free assembly and free speech? I bet you use some other term when speaking about the occupied territories. I bet Palestinians are free to come and go as they please from Gaza to East Jerusalem and the West Bank. Israel probably never arrests and imprisons uPalestinians without ever being charged or afforded a trial. Huh? Yeah I don’t know what I’m talking about.
- walker - Thursday, Jul 23, 15 @ 9:34 pm:
Triple: Rich usually doesn’t take requests. He does fine without them.
- Triple fat - Thursday, Jul 23, 15 @ 9:39 pm:
Walker - actually you didn’t see my earlier try at a post. I ended that begging him to post it… That didn’t work though.
- See the forest - Friday, Jul 24, 15 @ 8:05 am:
Agree with you, Triple Fat. Right-wing Israeli warmongers let Netanyahu must be jumping with joy. Speaking up for justice for the Palestinians is NOT antisemitism. There are many moderate and progressive Israelis appalled at what Bibi is doing.
It’s really ugly to see what is unfolding when the formerly oppressed become the oppressors.
- See the forest - Friday, Jul 24, 15 @ 8:06 am:
Oops, meant “like” not “let.” More coffee, please.