093_SB0517

 
                                     LRB093 09329 LRD 09562 b

 1        AN ACT in relation to public employee benefits.

 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:

 4        Section 5.  The  Illinois  Pension  Code  is  amended  by
 5    adding Section 1-109.3 as follows:

 6        (40 ILCS 5/1-109.3 new)
 7        Sec. 1-109.3. Responsible contractor policy.
 8        (a)  As used in the Section:
 9        "Responsible  contractor  policy"  means a written policy
10    requiring  the  trustees,  investment  managers,  and   other
11    persons  responsible  for  investing  the assets of a pension
12    fund or retirement system to require, as a condition  of  any
13    investment in real estate, that the property owner or manager
14    of  the  real  estate  demonstrate  that the construction and
15    building operation contractors and subcontractors working  on
16    or in the property are paid fair wages and benefits.
17        "Investment in real estate" includes both direct holdings
18    and investments in real estate holding companies, trusts, and
19    partnerships.
20        (b)  By  July 1, 2004, the Public Pension Division of the
21    Department  of  Insurance  (with  respect  to  pension  funds
22    established under  Article  3  or  4),  the  State  Board  of
23    Investment   (with   respect   to  retirement  systems  whose
24    investments it manages), and the board of trustees  of  every
25    other  pension  fund  or  retirement system established under
26    this Code  shall  each  adopt  and  implement  a  responsible
27    contractor policy.
28        In  formulating  and  adopting  a  responsible contractor
29    policy, the Division, State Board, or board of trustees shall
30    review and consider the Responsible Contractor Program Policy
31    adopted by the California Public Employees' Retirement System
 
                            -2-      LRB093 09329 LRD 09562 b
 1    and  the  Contractor  Selection  Program  Investment   Policy
 2    adopted by the New York Common Retirement Fund.
 3        The responsible contractor policy shall be filed with the
 4    Illinois  Pension  Laws  Commission  within 30 days after its
 5    adoption.  Whenever an amendment to a responsible  contractor
 6    policy  is  adopted,  a copy of the new policy shall be filed
 7    with the Illinois Pension  Laws  Commission  within  30  days
 8    after its adoption.
 9        (c)  The  State  Board  of  Investment  and  the board of
10    trustees  of  every  pension  fund   or   retirement   system
11    established  under  this  Code  shall  include  in its annual
12    report an evaluation of its implementation of the  applicable
13    responsible contractor policy.

14        Section  99.  Effective date.  This Act takes effect upon
15    becoming law.