HB1758 97TH GENERAL ASSEMBLY

LRB097 07277 JDS 47386 b

97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB1758

Introduced , by Rep. Michael J. Zalewski

SYNOPSIS AS INTRODUCED:

40 ILCS 5/11-212.1 new
30 ILCS 805/8.35 new

Amends the Chicago Laborers Article of the Illinois Pension Code. Requires the Laborers' and Retirement Board Employees' Annuity and Benefit Fund to indemnify and protect the trustees, staff, and consultants of the Fund against all damage claims and suits when damages are sought for negligent or wrongful acts alleged to have been committed in the scope of employment or under the direction of the trustees. Provides that the trustees, staff, and consultants shall not be indemnified for wilful misconduct or gross negligence. Authorizes the board to insure against loss or liability of the trustees, staff, and consultants that may result from these damage claims. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.

FISCAL NOTE ACT MAY APPLY

PENSION IMPACT NOTE ACT MAY APPLY

STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

A BILL FOR

AN ACT concerning public employee benefits.

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

Section 5. The Illinois Pension Code is amended by adding Section 11-212.1 as follows:

(40 ILCS 5/11-212.1 new)

Sec. 11-212.1. Indemnification of trustees, staff, and consultants of the pension fund. The Fund established under this Article shall indemnify and protect the trustees, staff, and consultants against all damage claims and suits, including defense thereof, when damages are sought for negligent or wrongful acts alleged to have been committed in the scope of employment or under the direction of the trustees. However, the trustees, staff, and consultants shall not be indemnified for wilful misconduct or gross negligence. The board is authorized to insure against loss or liability of the trustees, staff, and consultants that may result from these damage claims. This insurance shall be carried in a company that is licensed to write such coverage in this State.

Section 90. The State Mandates Act is amended by adding Section 8.35 as follows:

(30 ILCS 805/8.35 new)

Sec. 8.35. Exempt mandate. Notwithstanding Sections 6 and 8 of this Act, no reimbursement by the State is required for the implementation of any mandate created by this amendatory Act of the 97th General Assembly.

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