Full Text of SB0364 96th General Assembly
SB0364ham001 96TH GENERAL ASSEMBLY
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Executive Committee
Filed: 3/31/2009
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| AMENDMENT TO SENATE BILL 364
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| AMENDMENT NO. ______. Amend Senate Bill 364 by replacing | 3 |
| everything after the enacting clause with the following:
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| "Section 5. The Illinois Governmental Ethics Act is amended | 5 |
| by changing Sections 4A-101, 4A-102, 4A-106, and 4A-107 as | 6 |
| follows: | 7 |
| (5 ILCS 420/4A-101) (from Ch. 127, par. 604A-101) | 8 |
| Sec. 4A-101. Persons required to file. The following | 9 |
| persons shall file
verified written statements of economic | 10 |
| interests, as provided in this Article:
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| (a) Members of the General Assembly and candidates for | 12 |
| nomination or
election to the General Assembly.
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| (b) Persons holding an elected office in the Executive | 14 |
| Branch of this
State, and candidates for nomination or | 15 |
| election to these offices.
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| (c) Members of a Commission or Board created by the |
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| Illinois Constitution,
and candidates for nomination or | 2 |
| election to such Commission or Board.
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| (d) Persons whose appointment to office is subject to | 4 |
| confirmation by
the Senate.
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| (e) Holders of, and candidates for nomination or | 6 |
| election to, the office
of judge or associate judge of the | 7 |
| Circuit Court and the office of judge of
the Appellate or | 8 |
| Supreme Court.
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| (f) Persons who are employed by any branch, agency, | 10 |
| authority or board
of the government of this State, | 11 |
| including but not limited to, the Illinois
State Toll | 12 |
| Highway Authority, the Illinois Housing Development | 13 |
| Authority,
the Illinois Community College Board, and | 14 |
| institutions under the
jurisdiction of the Board of | 15 |
| Trustees
of the University of Illinois, Board of Trustees | 16 |
| of Southern Illinois
University, Board of Trustees of | 17 |
| Chicago State University,
Board of Trustees of Eastern | 18 |
| Illinois University, Board of Trustees of
Governor's State | 19 |
| University, Board of Trustees of Illinois State | 20 |
| University,
Board of Trustees of Northeastern Illinois | 21 |
| University, Board of Trustees of
Northern Illinois | 22 |
| University, Board of Trustees of Western Illinois
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| University, or Board of Trustees of the Illinois | 24 |
| Mathematics and Science
Academy, and are compensated for | 25 |
| services as employees and not as
independent contractors | 26 |
| and who:
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| (1) are, or function as, the head of a department, | 2 |
| commission, board,
division, bureau, authority or | 3 |
| other administrative unit within the
government of | 4 |
| this State, or who exercise similar authority within | 5 |
| the
government of this State;
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| (2) have direct supervisory authority over, or | 7 |
| direct responsibility for
the formulation, | 8 |
| negotiation, issuance or execution of contracts | 9 |
| entered into
by the State in the amount of $5,000 or | 10 |
| more;
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| (3) have authority for the issuance or | 12 |
| promulgation of rules and
regulations within areas | 13 |
| under the authority of the State;
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| (4) have authority for the approval of | 15 |
| professional licenses;
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| (5) have responsibility with respect to the | 17 |
| financial inspection
of regulated nongovernmental | 18 |
| entities;
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| (6) adjudicate, arbitrate, or decide any judicial | 20 |
| or administrative
proceeding, or review the | 21 |
| adjudication, arbitration or decision of any judicial
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| or administrative proceeding within the authority of | 23 |
| the State;
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| (7) have supervisory responsibility for 20 or more | 25 |
| employees of the
State; or
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| (8) negotiate, assign, authorize, or grant naming |
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| rights or sponsorship rights regarding any property or | 2 |
| asset of the State, whether real, personal, tangible, | 3 |
| or intangible.
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| (g) Persons who are elected to office in a unit of | 5 |
| local government,
and candidates for nomination or | 6 |
| election to that office, including regional
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| superintendents of school districts.
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| (h) Persons appointed to the governing board of a unit | 9 |
| of local
government, or of a special district, and persons | 10 |
| appointed to a zoning
board, or zoning board of appeals, or | 11 |
| to a regional, county, or municipal
plan commission, or to | 12 |
| a board of review of any county, and persons
appointed to | 13 |
| the Board of the Metropolitan Pier and Exposition Authority
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| and any Trustee appointed under Section 22 of the | 15 |
| Metropolitan Pier and
Exposition Authority Act, and | 16 |
| persons appointed to a board or commission of
a unit of | 17 |
| local government who have authority to authorize the | 18 |
| expenditure of
public funds. This subsection does not apply | 19 |
| to members of boards or
commissions who function in an | 20 |
| advisory capacity.
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| (i) Persons who are employed by a unit of local | 22 |
| government and are
compensated for services as employees | 23 |
| and not as independent contractors and
who:
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| (1) are, or function as, the head of a department, | 25 |
| division, bureau,
authority or other administrative | 26 |
| unit within the unit of local
government, or who |
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| exercise similar authority within the unit of local
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| government;
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| (2) have direct supervisory authority over, or | 4 |
| direct responsibility for
the formulation, | 5 |
| negotiation, issuance or execution of contracts | 6 |
| entered into
by the unit of local government in the | 7 |
| amount of $1,000 or greater;
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| (3) have authority to approve licenses
and permits | 9 |
| by the unit of local government; this item does not | 10 |
| include
employees who function in a ministerial | 11 |
| capacity;
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| (4) adjudicate, arbitrate, or decide any judicial | 13 |
| or administrative
proceeding, or review the | 14 |
| adjudication, arbitration or decision of any judicial
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| or administrative proceeding within the authority of | 16 |
| the unit of local
government;
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| (5) have authority to issue or promulgate rules and | 18 |
| regulations within
areas under the authority of the | 19 |
| unit of local government; or
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| (6) have supervisory responsibility for 20 or more | 21 |
| employees of the
unit of local government.
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| (j) Persons on the Board of Trustees of the Illinois | 23 |
| Mathematics and
Science Academy.
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| (k) Persons employed by a school district in positions | 25 |
| that
require that
person to hold an administrative or a | 26 |
| chief school business official
endorsement.
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| (l) Special government agents. A "special government | 2 |
| agent" is a
person who is directed, retained, designated, | 3 |
| appointed, or
employed, with or without compensation, by or | 4 |
| on behalf of a
statewide executive branch constitutional | 5 |
| officer to make an ex
parte communication under Section | 6 |
| 5-50 of the State Officials and
Employees Ethics Act or | 7 |
| Section 5-165 of the Illinois
Administrative Procedure | 8 |
| Act.
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| (m) Members of the board of commissioners of any flood | 10 |
| prevention district. | 11 |
| (n) Members of the board of any retirement system or | 12 |
| investment board established under the Illinois Pension | 13 |
| Code, if not required to file under any other provision of | 14 |
| this Section. | 15 |
| (o) Members of the board of any pension fund | 16 |
| established under the Illinois Pension Code, if not | 17 |
| required to file under any other provision of this Section. | 18 |
| This Section shall not be construed to prevent any unit of | 19 |
| local government
from enacting financial disclosure | 20 |
| requirements that mandate
more information
than required by | 21 |
| this Act.
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| (Source: P.A. 95-719, eff. 5-21-08.)
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| (5 ILCS 420/4A-102) (from Ch. 127, par. 604A-102)
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| Sec. 4A-102. The statement of economic interests required | 25 |
| by this Article
shall include the economic interests of the |
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| person making the statement as
provided in this Section. The | 2 |
| interest (if constructively controlled by the
person making the | 3 |
| statement) of a spouse or any other party, shall be
considered | 4 |
| to be the same as the interest of the person making the
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| statement. Campaign receipts shall not be included in this | 6 |
| statement.
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| (a) The following interests shall be listed by all | 8 |
| persons required to
file:
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| (1) The name, address and type of practice of any | 10 |
| professional
organization or individual professional | 11 |
| practice in which the person making
the statement was | 12 |
| an officer, director, associate, partner or | 13 |
| proprietor,
or served in any advisory capacity, from | 14 |
| which income in excess of $1200
was derived during the | 15 |
| preceding calendar year;
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| (2) The nature of professional services (other | 17 |
| than services rendered to
the unit or units of | 18 |
| government in relation to which the person is required
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| to file)
and the nature of the entity to which they | 20 |
| were rendered if fees exceeding
$5,000 were received | 21 |
| during the preceding calendar year from the entity for
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| professional services rendered by the person making | 23 |
| the statement.
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| (3) The identity (including the address or legal | 25 |
| description of real
estate) of any capital asset from | 26 |
| which a capital gain of $5,000 or more
was realized in |
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| the preceding calendar year.
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| (4) The name of any unit of government which has | 3 |
| employed the person
making the statement during the | 4 |
| preceding calendar year other than the unit
or units of | 5 |
| government in relation to which the person is required | 6 |
| to file.
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| (5) The name of any entity from which a gift or | 8 |
| gifts, or honorarium or
honoraria, valued singly or in | 9 |
| the aggregate in excess of $500, was
received during | 10 |
| the preceding calendar year.
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| (b) The following interests shall also be listed by | 12 |
| persons listed in
items (a) through (f) , and item (l) , and | 13 |
| item (n) of Section 4A-101:
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| (1) The name and instrument of ownership in any | 15 |
| entity doing business in
the State of Illinois, in | 16 |
| which an ownership interest held by the person at
the | 17 |
| date of filing is in excess of $5,000 fair market value | 18 |
| or from which
dividends of in excess of $1,200 were | 19 |
| derived during the preceding calendar
year. (In the | 20 |
| case of real estate, location thereof shall be listed | 21 |
| by
street address, or if none, then by legal | 22 |
| description). No time or demand
deposit in a financial | 23 |
| institution, nor any debt instrument need be listed;
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| (2) Except for professional service entities, the | 25 |
| name of any entity and
any position held therein from | 26 |
| which income of in excess of $1,200 was
derived during |
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| the preceding calendar year, if the entity does | 2 |
| business in
the State of Illinois. No time or demand | 3 |
| deposit in a financial
institution, nor any debt | 4 |
| instrument need be listed.
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| (3) The identity of any compensated lobbyist with | 6 |
| whom the person making
the statement maintains a close | 7 |
| economic association, including the name of
the | 8 |
| lobbyist and specifying the legislative matter or | 9 |
| matters which are the
object of the lobbying activity, | 10 |
| and describing the general type of
economic activity of | 11 |
| the client or principal on whose behalf that person is
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| lobbying.
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| (c) The following interests shall also be listed by | 14 |
| persons listed in
items (g), (h), and (i) , and (o) of | 15 |
| Section 4A-101:
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| (1) The name and instrument of ownership in any | 17 |
| entity doing business
with a unit of local government | 18 |
| in relation to which the person is
required to file if | 19 |
| the ownership interest of the person filing is greater
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| than $5,000 fair market value as of the date of filing | 21 |
| or if dividends in
excess of $1,200 were received from | 22 |
| the entity during the preceding
calendar year. (In the | 23 |
| case of real estate, location thereof shall be
listed | 24 |
| by street address, or if none, then by legal | 25 |
| description). No time
or demand deposit in a financial | 26 |
| institution, nor any debt instrument need
be listed.
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| (2) Except for professional service entities, the | 2 |
| name of any entity and
any position held therein from | 3 |
| which income in excess of $1,200 was derived
during the | 4 |
| preceding calendar year if the entity does business | 5 |
| with a
unit of local government in relation to which | 6 |
| the person is required to
file. No time or demand | 7 |
| deposit in a financial institution, nor any debt
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| instrument need be listed.
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| (3) The name of any entity and the nature of the | 10 |
| governmental action
requested by any entity which has | 11 |
| applied to a unit of local
government
in relation to | 12 |
| which the person must file for any license, franchise | 13 |
| or
permit for annexation, zoning or rezoning of real | 14 |
| estate during the
preceding calendar year if the | 15 |
| ownership interest of the person filing is
in excess of | 16 |
| $5,000 fair market value at the time of filing or if | 17 |
| income or
dividends in excess of $1,200 were received | 18 |
| by the person filing from the
entity during the | 19 |
| preceding calendar year.
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| For the purposes of this Section, the unit of local | 21 |
| government in relation to which a person required to file under | 22 |
| item (o) of Section 4A-101 shall be the unit of local | 23 |
| government that contributes to the pension fund of which such | 24 |
| person is a member of the board. | 25 |
| (Source: P.A. 92-101, eff. 1-1-02; 93-617, eff. 12-9-03.)
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| (5 ILCS 420/4A-106) (from Ch. 127, par. 604A-106)
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| Sec. 4A-106. The statements of economic interests required | 3 |
| of persons
listed in items (a) through (f), item (j), and item | 4 |
| (l) , and item (n) of
Section 4A-101 shall be
filed with the | 5 |
| Secretary of State. The statements of economic interests
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| required of persons listed in items (g), (h), (i), and (k) , and | 7 |
| (o) of
Section
4A-101 shall be filed with the county clerk of | 8 |
| the county in which the
principal office of the unit of local | 9 |
| government with which the person is
associated is located. If | 10 |
| it is not apparent which county the principal office
of a unit | 11 |
| of local government is located, the chief administrative | 12 |
| officer, or
his or her designee, has the authority, for | 13 |
| purposes of this Act, to determine
the county in which the | 14 |
| principal office is located. On or before February 1
annually, | 15 |
| (1) the chief administrative officer of any State agency in the
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| executive, legislative, or judicial branch employing persons | 17 |
| required to file
under item (f) or item (l) of Section
4A-101 | 18 |
| and the chief administrative officer of a board described in | 19 |
| item (n) of Section 4A-101 shall certify to the Secretary of | 20 |
| State the names and mailing addresses
of those persons, and (2) | 21 |
| the chief administrative officer, or his or her
designee, of | 22 |
| each unit of local government with persons described in items | 23 |
| (h),
(i) and (k) and a board described in item (o) of Section | 24 |
| 4A-101 shall certify to the appropriate county clerk a
list of | 25 |
| names and addresses of persons described in items (h), (i) ,
and | 26 |
| (k) , and (o) of
Section 4A-101 that are required to file. In |
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| preparing the lists, each chief
administrative officer, or his | 2 |
| or her designee, shall set out the names in
alphabetical order.
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| On or before April 1 annually, the Secretary of State shall | 4 |
| notify (1)
all persons whose names have been certified to him | 5 |
| under items (f) ,
and (l) , and (n) of
Section 4A-101, and (2) | 6 |
| all persons described in items (a) through (e) and
item (j) of | 7 |
| Section 4A-101, other than candidates for office who have filed
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| their statements with their nominating petitions, of the | 9 |
| requirements for
filing statements of economic interests.
A | 10 |
| person required to file with the Secretary of State by virtue | 11 |
| of more than
one item among items (a) through (f) and items | 12 |
| (j) , and (l) , and (n)
shall be notified of and is
required
to | 13 |
| file only one statement of economic interests relating to all | 14 |
| items under
which the person is required to file with the | 15 |
| Secretary of State.
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| On or before April 1 annually, the county clerk of each | 17 |
| county shall
notify all persons whose names have been certified | 18 |
| to him under items (g),
(h), (i), and (k) , and (o) of Section | 19 |
| 4A-101, other than candidates
for office who have filed their | 20 |
| statements with their nominating petitions, of
the | 21 |
| requirements for filing statements of economic interests.
A | 22 |
| person required to file with a county clerk by virtue of more | 23 |
| than one item
among items (g), (h), (i), and (k) , and (o) shall | 24 |
| be notified of and is
required to
file only one statement of | 25 |
| economic interests relating to all items under which
the person | 26 |
| is required to file with that county clerk.
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| Except as provided in Section 4A-106.1, the notices | 2 |
| provided for in this
Section shall be in writing and deposited | 3 |
| in
the U.S. Mail, properly addressed, first class postage | 4 |
| prepaid, on or before
the day required by this Section for the | 5 |
| sending of the notice. A certificate
executed by the Secretary | 6 |
| of State or county clerk attesting that he has mailed
the | 7 |
| notice constitutes prima facie evidence thereof.
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| From the lists certified to him under this Section of | 9 |
| persons described in
items (g), (h), (i), and (k) , and (o) of | 10 |
| Section 4A-101, the clerk
of each county shall
compile an | 11 |
| alphabetical listing of persons required to file statements of
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| economic interests in his office under any of those items. As | 13 |
| the
statements are filed in his office, the county clerk shall | 14 |
| cause the fact
of that filing to be indicated on the | 15 |
| alphabetical listing of persons who
are required to file | 16 |
| statements. Within 30 days after the due dates, the county
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| clerk shall mail to the State Board of Elections a true copy of | 18 |
| that listing
showing those who have filed statements.
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| The county clerk of each county shall note upon the | 20 |
| alphabetical listing
the names of all persons required to file | 21 |
| a statement of economic interests
who failed to file a | 22 |
| statement on or before May 1. It shall be the duty of
the | 23 |
| several county clerks to give notice as provided in Section | 24 |
| 4A-105 to
any person who has failed to file his or her | 25 |
| statement with the clerk on or
before May 1.
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| Any person who files or has filed a statement of economic |
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| interest
under this Act is entitled to receive from the | 2 |
| Secretary of State or county
clerk, as the case may be, a | 3 |
| receipt indicating that the person has filed
such a statement, | 4 |
| the date of such filing, and the identity of the
governmental | 5 |
| unit or units in relation to which the filing is required.
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| The Secretary of State may employ such employees and | 7 |
| consultants
as he considers necessary to carry out his duties | 8 |
| hereunder, and may
prescribe their duties, fix their | 9 |
| compensation, and provide for
reimbursement of their expenses.
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| All statements of economic interests filed under this | 11 |
| Section shall be
available for examination and copying by the | 12 |
| public at all reasonable times.
Not later than 12 months after | 13 |
| the effective date of this amendatory Act of
the 93rd General | 14 |
| Assembly, beginning with statements filed in calendar year
| 15 |
| 2004, the Secretary of State shall make statements of economic | 16 |
| interests filed
with the Secretary available for inspection and | 17 |
| copying via the Secretary's
website.
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| (Source: P.A. 93-617, eff. 12-9-03; 94-603, eff. 8-16-05.)
| 19 |
| (5 ILCS 420/4A-107) (from Ch. 127, par. 604A-107)
| 20 |
| Sec. 4A-107. Any person required to file a statement of | 21 |
| economic interests
under this Article who willfully files a | 22 |
| false or incomplete statement shall be
guilty of a Class A | 23 |
| misdemeanor.
| 24 |
| Failure to file a statement within the time prescribed | 25 |
| shall result in
ineligibility for, or forfeiture of, office or |
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| position of employment, as
the case may be; provided, however, | 2 |
| that if the notice of failure to
file a statement of economic | 3 |
| interests provided in Section 4A-105 of this
Act is not given | 4 |
| by the Secretary of State or the county clerk, as the case
may | 5 |
| be, no forfeiture shall result if a statement is filed within | 6 |
| 30 days
of actual notice of the failure to file. The Secretary | 7 |
| of State shall provide the Attorney General with the names of | 8 |
| persons who failed to file a statement. The county clerk shall | 9 |
| provide the State's Attorney of the county of the entity for | 10 |
| which the filing of statement of economic interest is required | 11 |
| with the name of persons who failed to file a statement.
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| The Attorney General, with respect to offices or positions | 13 |
| described in
items (a) through (f) and items (j) , and (l) , and | 14 |
| (n) of Section 4A-101 of this
Act, or the State's
Attorney of | 15 |
| the county of the entity for which the filing of statements of
| 16 |
| economic interests is required, with respect to offices or | 17 |
| positions
described in items (g) through (i) , and item (k) , and | 18 |
| item (o) of
Section
4A-101 of this Act,
shall bring an action | 19 |
| in quo warranto against any person who has failed to file
by | 20 |
| either May 31 or June 30 of any given year.
| 21 |
| (Source: P.A. 93-617, eff. 12-9-03.)
| 22 |
| Section 10. The State Officials and Employees Ethics Act is | 23 |
| amended by changing Section 1-5 as follows: | 24 |
| (5 ILCS 430/1-5)
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| Sec. 1-5. Definitions. As used in this Act:
| 2 |
| "Appointee" means a person appointed to a position in or | 3 |
| with a State
agency, regardless of whether the position is | 4 |
| compensated.
| 5 |
| "Campaign for elective office" means any activity in | 6 |
| furtherance of an
effort to influence the selection, | 7 |
| nomination, election, or appointment of any
individual to any | 8 |
| federal, State, or local public office or office in a
political | 9 |
| organization, or the selection, nomination, or election
of | 10 |
| Presidential or Vice-Presidential electors,
but does not | 11 |
| include
activities (i) relating to the support or opposition of | 12 |
| any executive,
legislative, or administrative action (as those | 13 |
| terms are defined in Section 2
of the Lobbyist Registration | 14 |
| Act), (ii) relating to collective bargaining, or
(iii) that are | 15 |
| otherwise in furtherance of the person's official State duties.
| 16 |
| "Candidate" means a person who has
filed nominating papers | 17 |
| or petitions for nomination or election to an elected
State | 18 |
| office, or who has been appointed to fill a vacancy in | 19 |
| nomination, and
who remains eligible for placement on the | 20 |
| ballot at either a
general primary election or general | 21 |
| election.
| 22 |
| "Collective bargaining" has the same meaning as that term | 23 |
| is defined in
Section 3 of the Illinois Public Labor Relations | 24 |
| Act.
| 25 |
| "Commission" means an ethics commission created by this | 26 |
| Act.
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|
| 1 |
| "Compensated time" means any time worked by or credited to | 2 |
| a State employee
that counts
toward any minimum work time | 3 |
| requirement imposed as a condition of employment
with a State | 4 |
| agency, but does not include any designated State holidays or | 5 |
| any
period when the employee is on a
leave of absence.
| 6 |
| "Compensatory time off" means authorized time off earned by | 7 |
| or awarded to a
State employee to compensate in whole or in | 8 |
| part for time worked in excess of
the minimum work time | 9 |
| required
of that employee as a condition of employment with a | 10 |
| State agency.
| 11 |
| "Contribution" has the same meaning as that term is defined | 12 |
| in Section 9-1.4
of the Election Code.
| 13 |
| "Employee" means (i) any person employed full-time, | 14 |
| part-time, or
pursuant to a contract and whose employment | 15 |
| duties are subject to the direction
and
control of an employer | 16 |
| with regard to the material details of how the work is
to be | 17 |
| performed or (ii) any appointed or elected commissioner, | 18 |
| trustee, director, or board member of a board of a State | 19 |
| agency, including any retirement system or investment board | 20 |
| subject to the Illinois Pension Code or (iii) any other | 21 |
| appointee.
| 22 |
| "Executive branch constitutional officer" means the | 23 |
| Governor, Lieutenant
Governor, Attorney General, Secretary of | 24 |
| State, Comptroller, and Treasurer.
| 25 |
| "Gift" means any gratuity, discount, entertainment, | 26 |
| hospitality, loan,
forbearance, or other tangible or |
|
|
|
09600SB0364ham001 |
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| 1 |
| intangible item having monetary value
including, but not
| 2 |
| limited to, cash, food and drink, and honoraria for speaking | 3 |
| engagements
related to or attributable to government | 4 |
| employment or the official position of
an
employee, member, or | 5 |
| officer.
| 6 |
| "Governmental entity" means a unit of local government | 7 |
| (including a community college district) or a school
district | 8 |
| but not a State
agency.
| 9 |
| "Leave of absence" means any period during which a State | 10 |
| employee does not
receive (i) compensation for State | 11 |
| employment, (ii) service credit towards
State pension | 12 |
| benefits, and (iii) health insurance benefits paid for by the
| 13 |
| State.
| 14 |
| "Legislative branch constitutional officer" means a member | 15 |
| of the General
Assembly and the Auditor General.
| 16 |
| "Legislative leader" means the President and Minority | 17 |
| Leader of the Senate
and the Speaker and Minority Leader of the | 18 |
| House of Representatives.
| 19 |
| "Member" means a member of the General Assembly.
| 20 |
| "Officer" means an executive branch constitutional officer
| 21 |
| or a
legislative branch constitutional officer.
| 22 |
| "Political" means any activity in support
of or in | 23 |
| connection with any campaign for elective office or any | 24 |
| political
organization, but does not include activities (i) | 25 |
| relating to the support or
opposition of any executive, | 26 |
| legislative, or administrative action (as those
terms are |
|
|
|
09600SB0364ham001 |
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LRB096 06397 AMC 24876 a |
|
| 1 |
| defined in Section 2 of the Lobbyist Registration Act), (ii) | 2 |
| relating
to collective bargaining, or (iii) that are
otherwise
| 3 |
| in furtherance of the person's official
State duties or | 4 |
| governmental and public service functions.
| 5 |
| "Political organization" means a party, committee, | 6 |
| association, fund, or
other organization (whether or not | 7 |
| incorporated) that is required to file a
statement of | 8 |
| organization with the State Board of Elections or a county | 9 |
| clerk
under Section 9-3 of the Election Code, but only with | 10 |
| regard to those
activities that require filing with the State | 11 |
| Board of Elections or a county
clerk.
| 12 |
| "Prohibited political activity" means:
| 13 |
| (1) Preparing for, organizing, or participating in any
| 14 |
| political meeting, political rally, political | 15 |
| demonstration, or other political
event.
| 16 |
| (2) Soliciting contributions, including but not | 17 |
| limited to the purchase
of, selling, distributing, or | 18 |
| receiving
payment for tickets for any political | 19 |
| fundraiser,
political meeting, or other political event.
| 20 |
| (3) Soliciting, planning the solicitation of, or | 21 |
| preparing any document or
report regarding any thing of | 22 |
| value intended as a campaign contribution.
| 23 |
| (4) Planning, conducting, or participating in a public | 24 |
| opinion
poll in connection with a campaign for elective | 25 |
| office or on behalf of a
political organization for | 26 |
| political purposes or for or against any referendum
|
|
|
|
09600SB0364ham001 |
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|
| 1 |
| question.
| 2 |
| (5) Surveying or gathering information from potential | 3 |
| or actual
voters in an election to determine probable vote | 4 |
| outcome in connection with a
campaign for elective office | 5 |
| or on behalf of a political organization for
political | 6 |
| purposes or for or against any referendum question.
| 7 |
| (6) Assisting at the polls on election day on behalf of | 8 |
| any
political organization or candidate for elective | 9 |
| office or for or against any
referendum
question.
| 10 |
| (7) Soliciting votes on behalf of a candidate for | 11 |
| elective office or a
political organization or for or | 12 |
| against any referendum question or helping in
an effort to | 13 |
| get voters
to the polls.
| 14 |
| (8) Initiating for circulation, preparing, | 15 |
| circulating, reviewing, or
filing any petition on
behalf of | 16 |
| a candidate for elective office or for or against any | 17 |
| referendum
question.
| 18 |
| (9) Making contributions on behalf
of any candidate for | 19 |
| elective office in that capacity or in connection with a
| 20 |
| campaign for elective office.
| 21 |
| (10) Preparing or reviewing responses to candidate | 22 |
| questionnaires in
connection with a campaign for elective | 23 |
| office or on behalf of a political
organization for | 24 |
| political purposes.
| 25 |
| (11) Distributing, preparing for distribution, or | 26 |
| mailing campaign
literature, campaign signs, or other |
|
|
|
09600SB0364ham001 |
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| 1 |
| campaign material on behalf of any
candidate for elective | 2 |
| office or for or against any referendum question.
| 3 |
| (12) Campaigning for any elective
office or for or | 4 |
| against any referendum question.
| 5 |
| (13) Managing or working on a campaign for elective
| 6 |
| office or for or against any referendum question.
| 7 |
| (14) Serving as a delegate, alternate, or proxy to a | 8 |
| political
party convention.
| 9 |
| (15) Participating in any recount or challenge to the | 10 |
| outcome of
any election, except to the extent that under | 11 |
| subsection (d) of
Section 6 of Article IV of the Illinois | 12 |
| Constitution each house of the General
Assembly shall judge | 13 |
| the elections, returns, and qualifications of its members.
| 14 |
| "Prohibited source" means any person or entity who:
| 15 |
| (1) is seeking official action (i) by the
member or | 16 |
| officer or (ii) in the case of an employee, by
the employee
| 17 |
| or by the
member, officer, State agency, or other employee | 18 |
| directing the
employee;
| 19 |
| (2) does business or seeks to do business (i) with the
| 20 |
| member or officer or (ii) in the case of an employee,
with | 21 |
| the
employee or with the member, officer, State agency, or | 22 |
| other
employee directing the
employee;
| 23 |
| (3) conducts activities regulated (i) by the
member or | 24 |
| officer or (ii) in the case of an employee, by
the employee | 25 |
| or by the member, officer, State agency, or
other employee | 26 |
| directing the employee;
|
|
|
|
09600SB0364ham001 |
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|
| 1 |
| (4) has interests that may be substantially affected by | 2 |
| the performance or
non-performance of the official duties | 3 |
| of the member, officer, or
employee; or
| 4 |
| (5) is registered or required to be registered with the | 5 |
| Secretary of State
under the Lobbyist Registration Act, | 6 |
| except that an entity not otherwise a
prohibited source | 7 |
| does not become a prohibited source merely because a
| 8 |
| registered lobbyist is one of its members or serves on its | 9 |
| board of
directors.
| 10 |
| "State agency" includes all officers, boards, commissions | 11 |
| and agencies
created by the Constitution, whether in the | 12 |
| executive or legislative
branch; all officers,
departments, | 13 |
| boards, commissions, agencies, institutions, authorities,
| 14 |
| public institutions of higher learning as defined in Section 2 | 15 |
| of the Higher
Education
Cooperation Act (except community | 16 |
| colleges), and bodies politic and corporate of the State; and
| 17 |
| administrative
units or corporate outgrowths of the State | 18 |
| government which are created by
or pursuant to statute, other | 19 |
| than units of local government (including community college | 20 |
| districts) and their
officers, school districts, and boards of | 21 |
| election commissioners; and all
administrative units and | 22 |
| corporate outgrowths of the above and as may be
created by | 23 |
| executive order of the Governor. "State agency" includes the | 24 |
| General
Assembly, the Senate, the House of Representatives, the | 25 |
| President and Minority
Leader of the Senate, the Speaker and | 26 |
| Minority Leader of the House of
Representatives, the Senate |
|
|
|
09600SB0364ham001 |
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|
| 1 |
| Operations Commission, and the legislative support
services | 2 |
| agencies. "State agency" includes the Office
of the Auditor | 3 |
| General. "State agency" does not include the judicial branch.
| 4 |
| "State employee" means any employee of a State agency.
| 5 |
| "Ultimate jurisdictional
authority" means the following:
| 6 |
| (1) For members, legislative partisan staff, and | 7 |
| legislative secretaries,
the appropriate
legislative | 8 |
| leader: President of the
Senate, Minority Leader of the | 9 |
| Senate, Speaker of the House of Representatives,
or | 10 |
| Minority Leader of the House of Representatives.
| 11 |
| (2) For State employees who are professional staff or | 12 |
| employees of the
Senate and not covered under item (1), the | 13 |
| Senate Operations Commission.
| 14 |
| (3) For State employees who are professional staff or | 15 |
| employees of the
House of Representatives and not covered | 16 |
| under item (1), the Speaker of the
House of | 17 |
| Representatives.
| 18 |
| (4) For State employees who are employees of the | 19 |
| legislative support
services agencies, the Joint Committee | 20 |
| on Legislative Support Services.
| 21 |
| (5) For State employees of the Auditor General, the | 22 |
| Auditor General.
| 23 |
| (6) For State employees of public institutions of | 24 |
| higher learning as
defined in Section 2 of the Higher | 25 |
| Education Cooperation Act (except community colleges), the | 26 |
| board of
trustees of the appropriate public institution of |
|
|
|
09600SB0364ham001 |
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|
| 1 |
| higher learning.
| 2 |
| (7) For State employees of an executive branch | 3 |
| constitutional officer
other than those described in | 4 |
| paragraph (6), the
appropriate executive branch | 5 |
| constitutional officer.
| 6 |
| (8) For State employees not under the jurisdiction of | 7 |
| paragraph (1), (2),
(3), (4), (5), (6), or (7), the | 8 |
| Governor.
| 9 |
| (Source: P.A. 95-880, eff. 8-19-08.) | 10 |
| Section 12. The State Treasurer Act is amended by adding | 11 |
| Section 16.10 as follows: | 12 |
| (15 ILCS 505/16.10 new) | 13 |
| Sec. 16.10. Working group; peer cost comparison. There is | 14 |
| created a working group within the Office of the State | 15 |
| Treasurer to develop uniform standards for peer cost | 16 |
| comparisons. The working group must consist of one | 17 |
| representative from each retirement system or investment board | 18 |
| created under Article 2, Articles 5 through 18, Article 22, and | 19 |
| Article 22A of the Illinois Pension Code, one person | 20 |
| representing the pension funds created under Article 3 of the | 21 |
| Illinois Pension Code collectively, one person representing | 22 |
| the pension funds created under Article 4 of the Illinois | 23 |
| Pension Code collectively, and one representative of the | 24 |
| financial industry. The purpose of the working group is to |
|
|
|
09600SB0364ham001 |
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LRB096 06397 AMC 24876 a |
|
| 1 |
| develop standards and make recommendations to the General | 2 |
| Assembly. The Treasurer must submit a report, on behalf of the | 3 |
| working group, to the Governor and General Assembly by January | 4 |
| 1, 2010. | 5 |
| Section 15. The Illinois Pension Code is amended by | 6 |
| changing Sections 1-101.2, 1-109.1, 1-110, 1-113.5, 1-125, | 7 |
| 8-192, 14-134, 14-134.1, 15-159, 16-164, and 22A-109 and by | 8 |
| adding Sections 1-101.5, 1-113.14, 1-113.16, 1-113.18, 1-130, | 9 |
| 1-135, 1-145, and 1-150 as follows:
| 10 |
| (40 ILCS 5/1-101.2)
| 11 |
| Sec. 1-101.2. Fiduciary. A person is a "fiduciary" with | 12 |
| respect to a
pension fund or retirement system established | 13 |
| under this Code to the extent
that the person:
| 14 |
| (1) exercises any discretionary authority or | 15 |
| discretionary control
respecting management of the pension | 16 |
| fund or retirement system, or exercises
any authority or | 17 |
| control respecting management or disposition of its | 18 |
| assets;
| 19 |
| (2) renders investment advice or renders advice on the | 20 |
| selection of fiduciaries for a fee or other compensation, | 21 |
| direct or
indirect, with respect to any moneys or other | 22 |
| property of the pension fund or
retirement system, or has | 23 |
| any authority or responsibility to do so; or
| 24 |
| (3) has any discretionary authority or discretionary |
|
|
|
09600SB0364ham001 |
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|
| 1 |
| responsibility in the
administration of the pension fund or | 2 |
| retirement system.
| 3 |
| (Source: P.A. 90-507, eff. 8-22-97 .)
| 4 |
| (40 ILCS 5/1-101.5 new)
| 5 |
| Sec. 1-101.5. Consultant. "Consultant" means any person or | 6 |
| entity retained or employed by the board of a retirement | 7 |
| system, pension fund, or investment board to make | 8 |
| recommendations in developing an investment strategy, assist | 9 |
| with finding appropriate investment advisers, or monitor the | 10 |
| board's investments. "Consultant" does not include | 11 |
| non-investment related professionals or professionals offering | 12 |
| services that are not directly related to the investment of | 13 |
| assets, such as legal counsel, actuary, proxy-voting services, | 14 |
| services used to track compliance with legal standards, and | 15 |
| investment fund of funds where the board has no direct | 16 |
| contractual relationship with the investment advisers or | 17 |
| partnerships. "Investment adviser" has the meaning ascribed to | 18 |
| it in Section 1-101.4. | 19 |
|
| 20 |
| (40 ILCS 5/1-109.1) (from Ch. 108 1/2, par. 1-109.1)
| 21 |
| Sec. 1-109.1. Allocation and Delegation of Fiduciary | 22 |
| Duties.
| 23 |
| (1) Subject to the provisions of Section 22A-113 of this | 24 |
| Code and
subsections (2) and (3) of this Section, the board of |
|
|
|
09600SB0364ham001 |
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|
| 1 |
| trustees of a
retirement system or pension fund established | 2 |
| under this Code may:
| 3 |
| (a) Appoint one or more investment managers as | 4 |
| fiduciaries to manage
(including the power to acquire and | 5 |
| dispose of) any assets of the
retirement system or pension | 6 |
| fund; and
| 7 |
| (b) Allocate duties among themselves and designate | 8 |
| others as fiduciaries
to carry out specific fiduciary | 9 |
| activities other than the management of the
assets of the | 10 |
| retirement system or pension fund.
| 11 |
| (2) The board of trustees of a pension fund established | 12 |
| under Article 5, 6,
8, 9, 10, 11, 12 or 17 of this Code may not | 13 |
| transfer its investment authority,
nor transfer the assets of | 14 |
| the fund to any other person or entity for the
purpose of | 15 |
| consolidating or merging its assets and management with any | 16 |
| other
pension fund or public investment authority, unless the | 17 |
| board resolution
authorizing such transfer is submitted for | 18 |
| approval to the contributors and
pensioners of the fund at | 19 |
| elections held not less than 30 days after the
adoption of such | 20 |
| resolution by the board, and such resolution is approved by a
| 21 |
| majority of the votes cast on the question in both the | 22 |
| contributors election
and the pensioners election. The | 23 |
| election procedures and qualifications
governing the election | 24 |
| of trustees shall govern the submission of resolutions
for | 25 |
| approval under this paragraph, insofar as they may be made | 26 |
| applicable.
|
|
|
|
09600SB0364ham001 |
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|
| 1 |
| (3) Pursuant to subsections (h) and (i) of Section 6 of | 2 |
| Article VII of
the Illinois Constitution, the investment | 3 |
| authority of boards of trustees
of retirement systems and | 4 |
| pension funds established under this Code is declared
to be a | 5 |
| subject of exclusive State jurisdiction, and the concurrent | 6 |
| exercise
by a home rule unit of any power affecting such | 7 |
| investment authority is
hereby specifically denied and | 8 |
| preempted.
| 9 |
| (4) For the purposes of this Code, "emerging investment | 10 |
| manager" means a
qualified investment adviser that manages an | 11 |
| investment portfolio of at
least $10,000,000 but less than | 12 |
| $10,000,000,000 $2,000,000,000 and is a
"minority owned | 13 |
| business" , or "female owned business" or "business owned by a | 14 |
| person with a disability" as those terms are
defined in the | 15 |
| Business Enterprise for Minorities,
Females, and Persons with | 16 |
| Disabilities Act.
| 17 |
| It is hereby declared to be the public policy of the State | 18 |
| of Illinois to
encourage the trustees of public employee | 19 |
| retirement systems , pension funds, and investment boards
to use | 20 |
| emerging investment managers in managing their system's | 21 |
| assets , encompassing all asset classes, to the
greatest extent | 22 |
| feasible within the bounds of financial and fiduciary
prudence, | 23 |
| and to take affirmative steps to remove any barriers to the | 24 |
| full
participation of emerging investment managers in | 25 |
| investment opportunities
afforded by those retirement systems , | 26 |
| pension funds, and investment boards .
|
|
|
|
09600SB0364ham001 |
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|
| 1 |
| On or before January 1, 2010, a retirement system, pension | 2 |
| fund, or investment board subject to this Code, except those | 3 |
| whose investments are restricted by Section 1-113.2 of this | 4 |
| Code, shall adopt a policy for utilization of emerging | 5 |
| investment managers. This policy shall include quantifiable | 6 |
| goals for the management of assets in specific asset classes by | 7 |
| emerging investment managers. The retirement system, pension | 8 |
| fund, or investment board shall establish 3 separate goals for: | 9 |
| (i) emerging investment managers that are minority owned | 10 |
| businesses; (ii) emerging investment managers that are female | 11 |
| owned businesses; and (iii) emerging investment managers that | 12 |
| are businesses owned by a person with a disability. The goals | 13 |
| established shall be based on the percentage of total dollar | 14 |
| amount of investment service contracts let to minority owned | 15 |
| businesses, female owned businesses, and businesses owned by a | 16 |
| person with a disability, as those terms are defined in the | 17 |
| Business Enterprise for Minorities, Females, and Persons with | 18 |
| Disabilities Act. The retirement system, pension fund, or | 19 |
| investment board shall annually review the goals established | 20 |
| under this subsection. | 21 |
| Each retirement system subject to this Code shall prepare a
| 22 |
| report to be submitted to the Governor and the General Assembly | 23 |
| by
September 1 of each year. The report shall identify the | 24 |
| emerging
investment managers used by the system, the percentage | 25 |
| of the system's
assets under the investment control of emerging | 26 |
| investment managers, and
the actions it has undertaken to |
|
|
|
09600SB0364ham001 |
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|
| 1 |
| increase the use of emerging investment
managers, including | 2 |
| encouraging other investment managers to use emerging
| 3 |
| investment managers as subcontractors when the opportunity | 4 |
| arises.
| 5 |
| The use of an emerging investment manager does not | 6 |
| constitute a transfer
of investment authority for the purposes | 7 |
| of subsection (2) of this Section.
| 8 |
| (5) Each retirement system, pension fund, or investment | 9 |
| board subject to this Code, except those whose investments are | 10 |
| restricted by Section 1-113.2 of this Code, shall establish a | 11 |
| policy with the goal of increasing the racial, ethnic, and | 12 |
| gender diversity of its fiduciaries, including its consultants | 13 |
| and senior staff. Each system, fund, and investment board shall | 14 |
| annually review the goals established under this subsection. | 15 |
| (6) On or before January 1, 2010, a retirement system, | 16 |
| pension fund, or investment board subject to this Code, except | 17 |
| those whose investments are restricted by Section 1-113.2 of | 18 |
| this Code, shall adopt a policy that sets forth goals for | 19 |
| utilization of businesses owned by minorities, females, and | 20 |
| persons with disabilities for all contracts and services. The | 21 |
| goals established shall be based on the percentage of total | 22 |
| dollar amount of all contracts let to minority owned | 23 |
| businesses, female owned businesses, and businesses owned by a | 24 |
| person with a disability, as those terms are defined in the | 25 |
| Business Enterprise for Minorities, Females, and Persons with | 26 |
| Disabilities Act. The retirement system, pension fund, or |
|
|
|
09600SB0364ham001 |
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|
| 1 |
| investment board shall annually review the goals established | 2 |
| under this subsection. Each retirement system, pension fund, | 3 |
| and investment board shall post upon its web site a description | 4 |
| of the policy and goals, including a description of the | 5 |
| contracts awarded to businesses owned by minorities, females, | 6 |
| and persons with disabilities. | 7 |
| (7) On or before January 1, 2010, a retirement system, | 8 |
| pension fund, or investment board subject to this Code, except | 9 |
| those whose investments are restricted by Section 1-113.2 of | 10 |
| this Code, shall adopt a policy for increasing the utilization | 11 |
| of minority broker-dealers. For the purposes of this Code, | 12 |
| "minority broker-dealer" means a qualified broker-dealer who | 13 |
| meets the definition of "minority owned business", "female | 14 |
| owned business", or "business owned by a person with a | 15 |
| disability", as those terms are defined in the Business | 16 |
| Enterprise for Minorities, Females, and Persons with | 17 |
| Disabilities Act. The retirement system, pension fund, or | 18 |
| investment board shall annually review the goals established | 19 |
| under this Section. | 20 |
| (8) Each retirement system, pension fund, and investment | 21 |
| board subject to this Code, except those whose investments are | 22 |
| restricted by Section 1-113.2 of this Code, shall submit a | 23 |
| report to the Governor and the General Assembly by January 1 of | 24 |
| each year that includes the following: (i) the policy adopted | 25 |
| under subsection (4) of this Section, including the names and | 26 |
| addresses of the emerging investment managers used, percentage |
|
|
|
09600SB0364ham001 |
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|
| 1 |
| of the assets under the investment control of emerging | 2 |
| investment managers for the 3 separate goals, and the actions | 3 |
| it has undertaken to increase the use of emerging investment | 4 |
| managers, including encouraging other investment managers to | 5 |
| use emerging investment managers as subcontractors when the | 6 |
| opportunity arises; (ii) the policy adopted under subsection | 7 |
| (5) of this Section; (iii) the policy adopted under subsection | 8 |
| (6) of this Section; and (iv) the policy adopted under | 9 |
| subsection (7) of this Section, including specific actions | 10 |
| undertaken to increase the use of minority broker-dealers. | 11 |
| (Source: P.A. 94-471, eff. 8-4-05.)
| 12 |
| (40 ILCS 5/1-110) (from Ch. 108 1/2, par. 1-110)
| 13 |
| Sec. 1-110. Prohibited Transactions.
| 14 |
| (a) A fiduciary with respect to a retirement system , or | 15 |
| pension fund , or investment board shall
not cause the | 16 |
| retirement system or pension fund to engage in a transaction if
| 17 |
| he or she knows or should know that such transaction | 18 |
| constitutes a direct or
indirect:
| 19 |
| (1) Sale or exchange, or leasing of any property from | 20 |
| the retirement
system
or pension fund to a party in | 21 |
| interest for less than adequate consideration,
or from a | 22 |
| party in interest to a retirement system or pension fund | 23 |
| for more
than adequate consideration.
| 24 |
| (2) Lending of money or other extension of credit from | 25 |
| the retirement
system or pension fund to a party in |
|
|
|
09600SB0364ham001 |
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|
| 1 |
| interest without the receipt of adequate
security and a | 2 |
| reasonable rate of interest, or from a party in interest to
| 3 |
| a retirement system or pension fund with the provision of | 4 |
| excessive security
or an unreasonably high rate of | 5 |
| interest.
| 6 |
| (3) Furnishing of goods, services or facilities from | 7 |
| the retirement
system or pension fund to a party in | 8 |
| interest for less than adequate
consideration, or from a | 9 |
| party in interest to a retirement system or
pension fund | 10 |
| for more than adequate consideration.
| 11 |
| (4) Transfer to, or use by or for the benefit of, a | 12 |
| party in interest
of any assets of a retirement system or | 13 |
| pension fund for less than adequate
consideration.
| 14 |
| (b) A fiduciary with respect to a retirement system or | 15 |
| pension fund
established under this Code shall not:
| 16 |
| (1) Deal with the assets of the retirement system or | 17 |
| pension fund in his
own interest or for his own account;
| 18 |
| (2) In his individual or any other capacity act in any | 19 |
| transaction
involving the retirement system or pension | 20 |
| fund on behalf of a party whose
interests are adverse to | 21 |
| the interests of the retirement system or pension fund
or | 22 |
| the interests of its participants or beneficiaries; or
| 23 |
| (3) Receive any consideration for his own personal | 24 |
| account from any party
dealing with the retirement system | 25 |
| or pension fund in connection with a
transaction involving | 26 |
| the assets of the retirement system or pension
fund.
|
|
|
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| (c) Nothing in this Section shall be construed to prohibit | 2 |
| any trustee from:
| 3 |
| (1) Receiving any benefit to which he may be entitled | 4 |
| as a participant
or beneficiary in the retirement system or | 5 |
| pension fund.
| 6 |
| (2) Receiving any reimbursement of expenses properly | 7 |
| and actually incurred
in the performance of his duties with | 8 |
| the retirement system or pension fund.
| 9 |
| (3) Serving as a trustee in addition to being an | 10 |
| officer, employee, agent
or other representative of a party | 11 |
| in interest.
| 12 |
| (d) A fiduciary of a pension fund established under Article | 13 |
| 3 or 4 shall
not knowingly cause or advise the pension fund to | 14 |
| engage in an investment transaction when the fiduciary (i) has | 15 |
| any direct interest in
the income, gains, or profits of the | 16 |
| investment adviser advisor through which the investment | 17 |
| transaction is made or (ii) has a business relationship with | 18 |
| that investment adviser advisor that would result in a | 19 |
| pecuniary benefit to the fiduciary as a result of the | 20 |
| investment transaction. | 21 |
| Violation of this subsection (d) is a Class 4 felony.
| 22 |
| (e) A board member, employee, or consultant with respect to | 23 |
| a retirement system, pension fund, or investment board subject | 24 |
| to this Code, except those whose investments are restricted by | 25 |
| Section 1-113.2, shall not knowingly cause or advise the | 26 |
| retirement system, pension fund, or investment board to engage |
|
|
|
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| in an investment transaction with an investment adviser when | 2 |
| the board member, employee, consultant, or their spouse (i) has | 3 |
| any direct interest in the income, gains, or profits of the | 4 |
| investment adviser through which the investment transaction is | 5 |
| made or (ii) has a relationship with that investment adviser | 6 |
| that would result in a pecuniary benefit to the board member, | 7 |
| employee, or consultant or spouse of such board member, | 8 |
| employee, or consultant as a result of the investment | 9 |
| transaction. For purposes of this subsection (e), a consultant | 10 |
| includes an employee or agent of a consulting firm who has | 11 |
| greater than 7.5% ownership of the consulting firm. | 12 |
| Violation of this subsection (e) is a Class 4 felony. | 13 |
| (Source: P.A. 95-950, eff. 8-29-08.)
| 14 |
| (40 ILCS 5/1-113.5)
| 15 |
| Sec. 1-113.5. Investment advisers and investment services | 16 |
| for all Article 3 or 4 pension funds .
| 17 |
| (a) The board of trustees of a pension fund may appoint | 18 |
| investment advisers
as defined in Section 1-101.4. The board of | 19 |
| any pension fund investing in
common or preferred stock under | 20 |
| Section 1-113.4 shall appoint an investment
adviser before | 21 |
| making such investments.
| 22 |
| The investment adviser shall be a fiduciary, as defined in | 23 |
| Section 1-101.2,
with respect to the pension fund and shall be | 24 |
| one of the following:
| 25 |
| (1) an investment adviser registered under the federal |
|
|
|
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| Investment Advisers
Act of 1940 and the Illinois Securities | 2 |
| Law of 1953;
| 3 |
| (2) a bank or trust company authorized to conduct a | 4 |
| trust business in
Illinois;
| 5 |
| (3) a life insurance company authorized to transact | 6 |
| business in Illinois;
or
| 7 |
| (4) an investment company as defined and registered | 8 |
| under the federal
Investment Company Act of 1940 and | 9 |
| registered under the Illinois Securities Law
of 1953.
| 10 |
| (a-5) Notwithstanding any other provision of law, a person | 11 |
| or entity that provides consulting services (referred to as a | 12 |
| "consultant" in this Section) to a pension fund with respect to | 13 |
| the selection of fiduciaries may not be awarded a contract to | 14 |
| provide those consulting services that is more than 5 years in | 15 |
| duration. No contract to provide such consulting services may | 16 |
| be renewed or extended. At the end of the term of a contract, | 17 |
| however, the contractor is eligible to compete for a new | 18 |
| contract. No person shall attempt to avoid or contravene the | 19 |
| restrictions of this subsection by any means. All offers from | 20 |
| responsive offerors shall be accompanied by disclosure of the | 21 |
| names and addresses of the following: | 22 |
| (1) The offeror. | 23 |
| (2) Any entity that is a parent of, or owns a | 24 |
| controlling interest in, the offeror. | 25 |
| (3) Any entity that is a subsidiary of, or in which a | 26 |
| controlling interest is owned by, the offeror. |
|
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| Beginning on July 1, 2008, a person, other than a trustee | 2 |
| or an employee of a pension fund or retirement system, may not | 3 |
| act as a consultant under this Section unless that person is at | 4 |
| least one of the following: (i) registered as an investment | 5 |
| adviser under the federal Investment Advisers Act of 1940 (15 | 6 |
| U.S.C. 80b-1, et seq.); (ii) registered as an investment | 7 |
| adviser under the Illinois Securities Law of 1953; (iii) a | 8 |
| bank, as defined in the Investment Advisers Act of 1940; or | 9 |
| (iv) an insurance company authorized to transact business in | 10 |
| this State. | 11 |
| (b) All investment advice and services provided by an | 12 |
| investment adviser
or a consultant appointed under this Section | 13 |
| shall be rendered pursuant to a written contract
between the | 14 |
| investment adviser and the board, and in accordance with the
| 15 |
| board's investment policy.
| 16 |
| The contract shall include all of the following:
| 17 |
| (1) acknowledgement in writing by the investment | 18 |
| adviser that he or she
is a fiduciary with respect to the | 19 |
| pension fund;
| 20 |
| (2) the board's investment policy;
| 21 |
| (3) full disclosure of direct and indirect fees, | 22 |
| commissions, penalties,
and any other compensation that | 23 |
| may be received by the investment adviser,
including | 24 |
| reimbursement for expenses; and
| 25 |
| (4) a requirement that the investment adviser submit | 26 |
| periodic written
reports, on at least a quarterly basis, |
|
|
|
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| for the board's review at its regularly
scheduled meetings. | 2 |
| All returns on investment shall be reported as net returns
| 3 |
| after payment of all fees, commissions, and any other | 4 |
| compensation.
| 5 |
| (b-5) Each contract described in subsection (b) shall also | 6 |
| include (i) full disclosure of direct and indirect fees, | 7 |
| commissions, penalties, and other compensation, including
| 8 |
| reimbursement for expenses, that may be paid by or on behalf of | 9 |
| the investment adviser or consultant in connection with the | 10 |
| provision of services to the pension fund and (ii) a | 11 |
| requirement that the investment adviser or consultant update | 12 |
| the disclosure promptly after a modification of those payments | 13 |
| or an additional payment. | 14 |
| Within 30 days after the effective date of this amendatory | 15 |
| Act of the 95th General Assembly, each investment adviser and | 16 |
| consultant providing services on the effective date or subject | 17 |
| to an existing contract for the provision of services must | 18 |
| disclose to the board of trustees all direct and indirect fees, | 19 |
| commissions, penalties, and other compensation paid by or on
| 20 |
| behalf of the investment adviser or consultant in connection | 21 |
| with the provision of those services and shall update that | 22 |
| disclosure promptly after a modification of those payments or | 23 |
| an additional payment. | 24 |
| A person required to make a disclosure under subsection (d) | 25 |
| is also required to disclose direct and indirect fees, | 26 |
| commissions, penalties, or other compensation that shall or may |
|
|
|
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| 1 |
| be paid by or on behalf of the person in connection with the | 2 |
| rendering of those services. The person shall update the | 3 |
| disclosure promptly after a modification of those payments or | 4 |
| an additional payment. | 5 |
| The disclosures required by this subsection shall be in | 6 |
| writing and shall include the date and amount of each payment | 7 |
| and the name and address of each recipient of a payment. | 8 |
| (c) Within 30 days after appointing an investment adviser | 9 |
| or consultant, the board shall
submit a copy of the contract to | 10 |
| the Division of Insurance of the Department of Financial and | 11 |
| Professional Regulation.
| 12 |
| (d) Investment services provided by a person other than an | 13 |
| investment
adviser appointed under this Section, including but | 14 |
| not limited to services
provided by the kinds of persons listed | 15 |
| in items (1) through (4) of subsection
(a), shall be rendered | 16 |
| only after full written disclosure of direct and
indirect fees, | 17 |
| commissions, penalties, and any other compensation that shall | 18 |
| or
may be received by the person rendering those services.
| 19 |
| (e) The board of trustees of each pension fund shall retain | 20 |
| records of
investment transactions in accordance with the rules | 21 |
| of the Department of
Financial and Professional Regulation.
| 22 |
| (Source: P.A. 95-950, eff. 8-29-08.)
| 23 |
| (40 ILCS 5/1-113.14 new)
| 24 |
| Sec. 1-113.14. Investment services for retirement systems, | 25 |
| pension funds, and investment boards, except those funds |
|
|
|
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| 1 |
| established under Articles 3 and 4. | 2 |
| (a) For the purposes of this Section, "investment services" | 3 |
| means services provided by an investment adviser or a | 4 |
| consultant. | 5 |
| (b) The selection and appointment of an investment adviser | 6 |
| or consultant for investment services by the board of a | 7 |
| retirement system, pension fund, or investment board subject to | 8 |
| this Code, except those whose investments are restricted by | 9 |
| Section 1-113.2, shall be made and awarded in accordance with | 10 |
| this Section. All contracts for investment services shall be | 11 |
| awarded by the board using a competitive request for proposal | 12 |
| process. A request for proposals shall appear on the web site | 13 |
| of the retirement system, pension fund, or investment board and | 14 |
| shall be posted in the Illinois Procurement Bulletin. For all | 15 |
| investment services contracts with an annualized value of | 16 |
| $25,000 or less, evaluation and ranking by price are required | 17 |
| and the contract shall be awarded to the lowest qualified | 18 |
| bidder.
If the lowest qualified bidder is not selected for an | 19 |
| investment services contract with an annualized value that | 20 |
| exceeds the $25,000 threshold, the board must provide notice of | 21 |
| who the lowest qualified bidder was and a written decision as | 22 |
| to why another was selected. This notice shall be posted on its | 23 |
| web site and in the Illinois Procurement Bulletin. Exceptions | 24 |
| to this Section are allowed for sole source procurements, | 25 |
| emergency procurements and, at the discretion of the pension | 26 |
| fund, retirement system, or board of investment, for contracts |
|
|
|
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| that are nonrenewable, one year or less in duration, so long as | 2 |
| the contract has a value of less than $20,000.
All exceptions | 3 |
| granted under this Section must still be published on the | 4 |
| system's, fund's, or board's web site, shall name the person | 5 |
| authorizing the procurement, and shall include a brief | 6 |
| explanation of the reason for the exception. | 7 |
| A person, other than a trustee or an employee of a | 8 |
| retirement system, pension fund, or investment board, may not | 9 |
| act as a consultant or investment adviser under this Section | 10 |
| unless that person is registered as an investment adviser under | 11 |
| the federal Investment Advisers Act of 1940 (15 U.S.C. 80b-1, | 12 |
| et seq.). | 13 |
| (c) Investment services provided by an investment adviser | 14 |
| or a consultant appointed under this Section shall be rendered | 15 |
| pursuant to a written contract between the investment adviser | 16 |
| or consultant and the board. A description of every contract, | 17 |
| including the terms, must be posted on the retirement system's, | 18 |
| pension fund's, or investment board's web site. | 19 |
| The contract shall include all of the following: | 20 |
| (1) Acknowledgement in writing by the investment | 21 |
| adviser or consultant that he or she is a fiduciary with | 22 |
| respect to the pension fund or retirement system. | 23 |
| (2) The description of the board's investment policy | 24 |
| and notice that the policy is subject to change. | 25 |
| (3) (i) Full disclosure of direct and indirect fees, | 26 |
| commissions, penalties, and other compensation, including |
|
|
|
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| 1 |
| reimbursement for expenses, that may be paid by or on | 2 |
| behalf of the consultant in connection with the provision | 3 |
| of services to the pension fund or retirement system and | 4 |
| (ii) a requirement that the consultant update the | 5 |
| disclosure promptly after a modification of those payments | 6 |
| or an additional payment. | 7 |
| (4) A requirement that the investment adviser or | 8 |
| consultant, in conjunction with the board's staff, submit | 9 |
| periodic written reports, on at least a quarterly basis, | 10 |
| for the board's review at its regularly scheduled meetings. | 11 |
| All returns on investment shall be reported as net returns | 12 |
| after payment of all fees, commissions, and any other | 13 |
| compensation. | 14 |
| (5) Disclosure of the names and addresses of (i) the | 15 |
| consultant or investment adviser; (ii) any entity that is a | 16 |
| parent of, or owns a controlling interest in, the | 17 |
| consultant or investment adviser; (iii) any entity that is | 18 |
| a subsidiary of, or in which a controlling interest is | 19 |
| owned by, the consultant or investment adviser; (iv) any | 20 |
| persons who have an ownership or distributive income share | 21 |
| in the consultant or investment adviser that is in excess | 22 |
| of 7.5%; or (v) serves as an executive officer of the | 23 |
| consultant or investment adviser. | 24 |
| (6) A disclosure of the names and addresses of all | 25 |
| subcontractors, if applicable, and the expected amount of | 26 |
| money each will receive under the contract, including an |
|
|
|
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| 1 |
| acknowledgment that the contractor must promptly make | 2 |
| notification, in writing, if at any time during the term of | 3 |
| the contract a contractor adds or changes any | 4 |
| subcontractors. | 5 |
| (7) A description of service to be performed. | 6 |
| (8) A description of the need for the service. | 7 |
| (9) A description of the plan for post-performance | 8 |
| review. | 9 |
| (10) A description of the qualifications necessary. | 10 |
| (11) The duration of the contract. | 11 |
| (12) The method for charging and measuring cost. | 12 |
| (d) Notwithstanding any other provision of law, a | 13 |
| retirement system, pension fund, or investment board subject to | 14 |
| this Code, except those whose investments are restricted by | 15 |
| Section 1-113.2 of this Code, shall not enter into a contract | 16 |
| for investment services that exceeds 5 years in duration. No | 17 |
| contract to provide such investment services may be renewed or | 18 |
| extended. At the end of the term of a contract, however, the | 19 |
| contractor is eligible to compete for a new contract as | 20 |
| provided in this Section. No retirement system, pension fund, | 21 |
| or investment board shall attempt to avoid or contravene the | 22 |
| restrictions of this subsection (d) by any means. | 23 |
| (e) Within 60 days after the effective date of this | 24 |
| amendatory Act of the 96th General Assembly, each investment | 25 |
| adviser or consultant currently providing services or subject | 26 |
| to an existing contract for the provision of services must |
|
|
|
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| 1 |
| disclose to the board of trustees all direct and indirect fees, | 2 |
| commissions, penalties, and other compensation paid by or on | 3 |
| behalf of the investment adviser or consultant in connection | 4 |
| with the provision of those services and shall update that | 5 |
| disclosure promptly after a modification of those payments or | 6 |
| an additional payment. The person shall update the disclosure | 7 |
| promptly after a modification of those payments or an | 8 |
| additional payment. The disclosures required by this | 9 |
| subsection (e) shall be in writing and shall include the date | 10 |
| and amount of each payment and the name and address of each | 11 |
| recipient of a payment. | 12 |
| (f) The retirement system, pension fund, or board of | 13 |
| investment shall develop uniform documents that shall be used | 14 |
| for the solicitation, review, and acceptance of all investment | 15 |
| services. The form shall include the terms contained in | 16 |
| subsection (c) of this Section. All such uniform documents | 17 |
| shall be posted in a conspicuous manner on the retirement | 18 |
| system, pension fund, or investment board's web site. After | 19 |
| evaluation, ranking, and selection, the pension fund, | 20 |
| retirement system, or board of investment shall publish the | 21 |
| names of the responsible procurement decision-maker, the | 22 |
| successful respondent, the fees paid, and the total assessment | 23 |
| amount applicable to the let contract on its web site. | 24 |
| | 25 |
| (40 ILCS 5/1-113.16 new)
|
|
|
|
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| Sec. 1-113.16. Investment transparency. | 2 |
| (a) The purpose of this Section is to provide for | 3 |
| transparency in the investment of retirement or pension funds | 4 |
| and require the reporting of full and complete information | 5 |
| regarding the investments by pension funds, retirement | 6 |
| systems, and investment boards. | 7 |
| (b) A retirement system, pension fund, or investment board | 8 |
| subject to this Code and any committees established by such | 9 |
| system, fund, or board must comply with the Open Meetings Act. | 10 |
| (c) Any retirement system, pension fund, or investment | 11 |
| board subject to this Code that establishes a committee shall | 12 |
| ensure that the majority of the members on such committee are | 13 |
| board members. If any member of a committee is not a member of | 14 |
| the board for the system, fund, or board, then that committee | 15 |
| member shall be a fiduciary. | 16 |
| (d) A retirement system, pension fund, or investment board | 17 |
| subject to this Code, except those whose investments are | 18 |
| restricted by Section 1-113.2, shall maintain an official web | 19 |
| site and make available in a clear and conspicuous manner, and | 20 |
| update at least quarterly, all of the following information | 21 |
| concerning the investment of public funds: | 22 |
| (1) The total amount of funds held by the pension fund, | 23 |
| retirement system, or investment board. | 24 |
| (2) The asset allocation for the investments made by | 25 |
| the pension fund, retirement system, or investment board. | 26 |
| (3) Current and historic return information. |
|
|
|
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| (4) A detailed listing of the investment advisers for | 2 |
| all asset classes. | 3 |
| (5) Performance of investments compared against | 4 |
| established benchmarks. | 5 |
| (6) A detailed list of all consultants doing business | 6 |
| with the retirement system, pension fund, or investment | 7 |
| board. | 8 |
| (7) A detailed list of all contractors, other than | 9 |
| investment advisers and consultants, doing business with | 10 |
| the retirement system, pension fund, or investment board. | 11 |
| (8) Any requests for proposals for investment | 12 |
| services. | 13 |
| (9) The names and email addresses of all board members, | 14 |
| directors, and senior staff. | 15 |
| (10) The report required under Section 1-109.1 of this | 16 |
| Code, if applicable. | 17 |
| (11) Any other information the board determines that | 18 |
| will increase transparency. | 19 |
| (e) A pension fund whose investments are restricted by | 20 |
| Section 1-113.2 of this Code shall make the information | 21 |
| required in subsection (d) of this Section available on its web | 22 |
| site or in a location that allows the information to be | 23 |
| available for inspection by the public. | 24 |
| (f) Nothing in this Section requires the pension fund, | 25 |
| retirement system, or investment board to make information | 26 |
| available on the Internet that is exempt from inspection and |
|
|
|
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| copying under the Freedom of Information Act. | 2 |
| (40 ILCS 5/1-113.18 new)
| 3 |
| Sec. 1-113.18. Ethics training. All board members of a | 4 |
| retirement system, pension fund, or investment board created | 5 |
| under this Code must attend ethics training of at least 8 hours | 6 |
| per year. The training required under this Section shall | 7 |
| include training on ethics, fiduciary duty, and investment | 8 |
| issues and any other curriculum that the board of the | 9 |
| retirement system, pension fund, or investment board | 10 |
| establishes as being important for the administration of the | 11 |
| retirement system, pension fund, or investment board. Each | 12 |
| board shall annual certify its members' compliance with this | 13 |
| Section and submit an annual certification to the Division of | 14 |
| Insurance of the Department of Financial and Professional | 15 |
| Regulation. | 16 |
| (40 ILCS 5/1-125)
| 17 |
| Sec. 1-125. Prohibition on gifts. | 18 |
| (a) For the purposes of this Section: | 19 |
| "Gift" means a gift as defined in Section 1-5 of the State | 20 |
| Officials and Employees Ethics Act. | 21 |
| "Prohibited source" means a person or entity who: | 22 |
| (i) is seeking official action (A) by the board or (B) | 23 |
| by a board member; | 24 |
| (ii) does business or seeks to do business (A) with the |
|
|
|
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| 1 |
| board or (B) with a board member; | 2 |
| (iii) has interests that may be substantially affected | 3 |
| by the performance or non-performance of the official | 4 |
| duties of the board member; or | 5 |
| (iv) is registered or required to be registered with | 6 |
| the Secretary of State under the Lobbyist Registration Act, | 7 |
| except that an entity not otherwise a prohibited source | 8 |
| does not become a prohibited source merely because a | 9 |
| registered lobbyist is one of its members or serves on its | 10 |
| board of directors. | 11 |
| (b) No trustee or employee of a retirement system, pension | 12 |
| fund, or investment board created under board created under | 13 |
| Article 3 or 4 of this Code shall intentionally solicit or | 14 |
| accept any gift from any prohibited source as prescribed in | 15 |
| Article 10 of the State Officials and Employees Ethics Act . | 16 |
| The , including the exceptions contained in Section 10-15 of | 17 |
| that Act, other than paragraphs (4) and (5) of that Section | 18 |
| shall apply to trustees and employees of a retirement system, | 19 |
| pension fund, or investment board created under this Code . | 20 |
| Solicitation or acceptance of educational materials, however, | 21 |
| is not prohibited. For the purposes of this Section, references | 22 |
| to "State employee" and "employee" in Article 10 of the State | 23 |
| Officials and Employees Ethics Act shall include a trustee or | 24 |
| employee of a retirement system, pension fund, or investment | 25 |
| board created under a board created under Article 3 or 4 of | 26 |
| this Code. |
|
|
|
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| 1 |
| (c) A municipality may adopt or maintain policies or | 2 |
| ordinances that are more restrictive than those set forth in | 3 |
| this Section and may continue to follow any existing policies | 4 |
| or ordinances that are more restrictive or are in addition to | 5 |
| those set forth in this Section. | 6 |
| (d) To the extent that the provisions of this Section | 7 |
| conflict with the provisions of the State Officials and | 8 |
| Employees Ethics Act, the provisions of this Section control. | 9 |
| (e) (d) Violation of this Section is a Class A misdemeanor.
| 10 |
| (Source: P.A. 95-950, eff. 8-29-08.) | 11 |
| (40 ILCS 5/1-130 new)
| 12 |
| Sec. 1-130. No monetary gain on investments. No member or | 13 |
| employee of the board of trustees of any retirement system, | 14 |
| pension fund, or investment board created under this Code nor | 15 |
| any spouse of such member or employee shall knowingly have any | 16 |
| direct interest in the income, gains, or profits of any | 17 |
| investments made on behalf of a retirement system, pension | 18 |
| fund, or investment board created under this Code for which | 19 |
| such person is a member or employee, nor receive any pay or | 20 |
| emolument for services in connection with any investment. No | 21 |
| member or employee of the board of trustees of any retirement | 22 |
| system, pension fund, or investment board created under this | 23 |
| Code shall become an endorser or surety, or in any manner an | 24 |
| obligor for money loaned or borrowed from any retirement system | 25 |
| or pension fund created under this Code or the Illinois State |
|
|
|
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| 1 |
| Board of Investment. For the purposes of this Section, an | 2 |
| annuity otherwise provided in accordance with this Code or any | 3 |
| income, gains, or profits related to any non-controlling | 4 |
| interest in any public securities, mutual fund, or other | 5 |
| passive investment is not considered monetary gain on | 6 |
| investments. | 7 |
| Violation of this Section is a Class 3 felony. | 8 |
| (40 ILCS 5/1-135 new)
| 9 |
| Sec. 1-135. Fraud. Any person who knowingly makes any false | 10 |
| statement or falsifies or permits to be falsified any record of | 11 |
| a retirement system or pension fund created under this Code or | 12 |
| the Illinois State Board of Investment in an attempt to defraud | 13 |
| the retirement system or pension fund created under this Code | 14 |
| or the Illinois State Board of Investment is guilty of a Class | 15 |
| 3 felony. | 16 |
| (40 ILCS 5/1-145 new)
| 17 |
| Sec. 1-145. Contingent and placement fees prohibited. No | 18 |
| person or entity shall retain a person or entity to attempt to | 19 |
| influence the outcome of an investment decision of or the | 20 |
| procurement of investment advice or services of a retirement | 21 |
| system, pension fund, or investment board of this Code for | 22 |
| compensation, contingent in whole or in part upon the decision | 23 |
| or procurement. Any person who violates this Section is guilty | 24 |
| of a business offense and shall be fined not more than $10,000. |
|
|
|
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| In addition, any person convicted of a violation of this | 2 |
| Section is prohibited for a period of 3 years from conducting | 3 |
| such activities. | 4 |
| (40 ILCS 5/1-150 new)
| 5 |
| Sec. 1-150. Approval of travel or educational mission. The | 6 |
| expenses for travel or educational missions of a board member | 7 |
| of a retirement system, pension fund, or investment board | 8 |
| created under this Code, except those whose investments are | 9 |
| restricted by Section 1-113.2 of this Code, must be approved by | 10 |
| a majority of the board prior to the travel or educational | 11 |
| mission.
| 12 |
| (40 ILCS 5/8-192)
(from Ch. 108 1/2, par. 8-192)
| 13 |
| Sec. 8-192. Board created. A board of 5 members shall | 14 |
| constitute a Board of Trustees authorized to
carry out the | 15 |
| provisions of this Article. The board shall be known as the
| 16 |
| Retirement Board of the Municipal Employees', Officers', and | 17 |
| Officials'
Annuity and Benefit Fund of the city, or for the | 18 |
| sake of brevity may also
be known and referred to as the | 19 |
| Retirement Board of the Municipal
Employees' Annuity and | 20 |
| Benefit Fund of such city. The board shall consist
of the city | 21 |
| comptroller, the city treasurer, and 3 members who shall be
| 22 |
| employees , except that, the employee member whose term first | 23 |
| expires after the effective date of this amendatory Act of the | 24 |
| 96th General Assembly shall be replaced with a member who is a |
|
|
|
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| an annuitant member. | 2 |
| The employee members shall , to be elected as follows:
| 3 |
| Within 30 days after the effective date, the mayor of the | 4 |
| city shall
arrange for and hold an election.
| 5 |
| One employee shall be elected for a term ending on the | 6 |
| first day in the
month of December of the first year next | 7 |
| following the effective date; one
for a term ending December | 8 |
| 1st of the following year; and one for a term
ending on | 9 |
| December 1st of the second following year.
| 10 |
| The city comptroller, with the approval of the board, may | 11 |
| appoint a
designee from among employees of the city who are | 12 |
| versed in the affairs of
the comptroller's office to act in the | 13 |
| absence of the comptroller on all
matters pertaining to | 14 |
| administering the provisions of this Article.
| 15 |
| The members of a Retirement Board of a municipal | 16 |
| employees', officers',
and officials' annuity and benefit fund | 17 |
| holding office in a city at the
time this Article becomes | 18 |
| effective, including elective and ex-officio
members, shall | 19 |
| continue in office until the expiration of their terms and
| 20 |
| until their respective successors are elected or appointed and | 21 |
| have
qualified.
| 22 |
| An employee member who takes advantage of the early | 23 |
| retirement incentives
provided under this amendatory Act of the | 24 |
| 93rd General Assembly may continue as
a member until the end of | 25 |
| his or her term.
| 26 |
| (Source: P.A. 93-654, eff. 1-16-04.)
|
|
|
|
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| (40 ILCS 5/14-134) (from Ch. 108 1/2, par. 14-134)
| 2 |
| Sec. 14-134. Board created.
The retirement system created | 3 |
| by this
Article shall be a trust, separate and distinct from | 4 |
| all other entities.
The responsibility for the operation of the | 5 |
| system and for making effective
this Article is vested in a | 6 |
| board of trustees.
| 7 |
| The board shall consist of 7 trustees, as follows:
| 8 |
| (a) the Director of the
Governor's Office of Management and | 9 |
| Budget; (b) the Comptroller; (c)
one trustee, not a State | 10 |
| employee, who shall be Chairman, to be appointed
by the | 11 |
| Governor for a 5 year term; (d) two members of the system, one | 12 |
| of
whom shall be an annuitant age 60 or over, having at least 8 | 13 |
| years of
creditable service, to be appointed by the Governor | 14 |
| for terms of 5 years;
(e) one member of the system having at | 15 |
| least 8 years of creditable service,
to be elected from the | 16 |
| contributing membership of the system by the
contributing | 17 |
| members as provided in Section 14-134.1; (f) one annuitant of
| 18 |
| the system who has been an annuitant for at least one full | 19 |
| year, to be
elected from and by the annuitants of the system, | 20 |
| as provided in Section
14-134.1. The Director of the
Governor's | 21 |
| Office of Management and Budget
and the Comptroller shall
be | 22 |
| ex-officio members and shall serve as trustees during their | 23 |
| respective terms
of office, except that each of them may | 24 |
| designate another officer or employee
from the same agency to | 25 |
| serve in his or her place. However, no ex-officio
member may |
|
|
|
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| designate a different proxy within one year after designating a
| 2 |
| proxy unless the person last so designated has become | 3 |
| ineligible to serve in
that capacity. Except for the elected | 4 |
| trustees, any vacancy in the office of
trustee shall be filled | 5 |
| in the same manner as the office was filled previously.
| 6 |
| A trustee shall serve until a successor qualifies, except
| 7 |
| that a trustee who is a member of the system shall be | 8 |
| disqualified as a
trustee immediately upon terminating service | 9 |
| with the State.
| 10 |
| Notwithstanding any provision of this Section to the | 11 |
| contrary, the term of office of each trustee of the Board | 12 |
| appointed by the Governor who is sitting on the Board on the | 13 |
| effective date of this amendatory Act of the 96th General | 14 |
| Assembly and the Director of the Governor's Office of | 15 |
| Management and Budget is terminated on that effective date. | 16 |
| Beginning on the 30th day after the effective date of this | 17 |
| amendatory Act of the 96th General Assembly, the board shall | 18 |
| consist of 13 trustees as follows: | 19 |
| (1) the Comptroller, who shall be the Chairperson; | 20 |
| (2) six persons appointed by the Governor with the | 21 |
| advice and consent of the Senate who may not be members of | 22 |
| the system or hold an elective State office and who shall | 23 |
| serve for a term of 5 years, except that the terms of the | 24 |
| initial appointees under this amendatory Act of the 96th | 25 |
| General Assembly shall be as follows: 3 for a term of 3 | 26 |
| years and 3 for a term of 5 years; |
|
|
|
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| (3) four active participants of the system having at | 2 |
| least 8 years of creditable service, to be elected from the | 3 |
| contributing members of the system by the contribution | 4 |
| members as provided in Section 14-134.1;
and | 5 |
| (4) two annuitants of the system who have been | 6 |
| annuitants for at least one full year, to be elected from | 7 |
| and by the annuitants of the system, as provided in Section | 8 |
| 14-134.1. | 9 |
| The Governor shall make nominations for appointment under | 10 |
| this Section within 30 days after the effective date of this | 11 |
| amendatory Act of the 96th General Assembly. If the Governor | 12 |
| nominates a successor for appointment within 30 days after the | 13 |
| effective date of this amendatory Act of the 96th General | 14 |
| Assembly, then the trustee sitting on the board on the | 15 |
| effective date of this amendatory Act shall hold office until | 16 |
| the successor is confirmed by the Senate. If the Governor fails | 17 |
| to nominate a successor for any or all of the current trustees | 18 |
| on or before the 30th day after the effective date of this | 19 |
| amendatory Act of the 96th General Assembly, then the seats of | 20 |
| those trustees shall become vacant until the Governor has | 21 |
| appointed the successors with the advice and consent of the | 22 |
| Senate. | 23 |
| Each trustee is entitled to one vote on the board, and 4 | 24 |
| trustees shall
constitute a quorum for the transaction of | 25 |
| business. The affirmative
votes of a majority of the trustees | 26 |
| present, but at least 3 trustees, shall be
necessary for action |
|
|
|
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| by the board at any meeting. On the 30th day after the | 2 |
| effective date of this amendatory Act of the 96th General | 3 |
| Assembly, 7 trustees shall constitute a quorum for the | 4 |
| transaction of business and the affirmative vote of a majority | 5 |
| of the trustees present, but at least 7 trustees, shall be | 6 |
| necessary for action by the board at any meeting. The board's | 7 |
| action of July
22, 1986, by which it amended the bylaws of the | 8 |
| system to increase the number
of affirmative votes required for | 9 |
| board action from 3 to 4 (in response to
Public Act 84-1028, | 10 |
| which increased the number of trustees from 5 to 7), and
the | 11 |
| board's rejection, between that date and the effective date of | 12 |
| this
amendatory Act of 1993, of proposed actions not receiving | 13 |
| at least 4
affirmative votes, are hereby validated.
| 14 |
| The trustees shall serve without compensation, but shall be | 15 |
| reimbursed
from the funds of the system for all necessary | 16 |
| expenses incurred through
service on the board.
| 17 |
| Each trustee shall take an oath of office that he or she | 18 |
| will
diligently and honestly administer the affairs of the | 19 |
| system, and will not
knowingly violate or willfully permit the | 20 |
| violation of any of
the provisions of law applicable to the | 21 |
| system. The oath shall be
subscribed to by the trustee making | 22 |
| it, certified by the officer before
whom it is taken, and filed | 23 |
| with the Secretary of State. A trustee shall
qualify for | 24 |
| membership on the board when the oath has been approved by the
| 25 |
| board.
| 26 |
| (Source: P.A. 94-793, eff. 5-19-06.)
|
|
|
|
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| (40 ILCS 5/14-134.1) (from Ch. 108 1/2, par. 14-134.1)
| 2 |
| Sec. 14-134.1. Board-elected members-vacancies. The 2 | 3 |
| elected trustees
shall be elected, beginning in 1986 and every | 4 |
| 5 years thereafter, for a
term of 5 years beginning July 15 | 5 |
| next following their election. The trustees to be elected under | 6 |
| Section 14-134 of this Code in accordance with this amendatory | 7 |
| Act of the 96th General Assembly shall be elected within 30 | 8 |
| days after the effective date of this amendatory Act of the | 9 |
| 96th General Assembly for a term of 5 years after the effective | 10 |
| date of this amendatory Act. Trustees shall be elected every 5 | 11 |
| years thereafter for a term of 5 years beginning July 15 next | 12 |
| following their election. Elections
shall be held on May 1, or | 13 |
| on May 2 when May 1 falls on Sunday. Candidates
for the | 14 |
| contributing trustee shall be nominated by petitions in | 15 |
| writing,
signed by not less than 400 contributors with their | 16 |
| addresses shown opposite
their names. Candidates for the | 17 |
| annuitant trustee shall be nominated by
petitions in writing, | 18 |
| signed by not less than 100 annuitants with their
addresses | 19 |
| shown opposite their names.
| 20 |
| If there is more than one qualified nominee for either | 21 |
| elected trustee,
the board shall conduct a secret ballot | 22 |
| election by mail for that trustee,
in accordance with rules as | 23 |
| established by the board.
| 24 |
| If there is only one qualified person nominated by petition | 25 |
| for either
trustee, the election as required by this Section |
|
|
|
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| shall not be conducted
for that trustee and the board shall | 2 |
| declare such nominee duly elected.
| 3 |
| A vacancy occurring in the elective membership of the board | 4 |
| shall be filled
for the unexpired term by the board.
| 5 |
| (Source: P.A. 84-1028.)
| 6 |
| (40 ILCS 5/15-159) (from Ch. 108 1/2, par. 15-159)
| 7 |
| Sec. 15-159. Board created. A board of trustees constituted | 8 |
| as provided in
this Section shall administer this System. The | 9 |
| board shall be known as the
Board of Trustees of the State | 10 |
| Universities Retirement System.
| 11 |
| (b) Until July 1, 1995, the Board of Trustees shall be | 12 |
| constituted
as follows:
| 13 |
| Two trustees shall be members of the Board of Trustees of | 14 |
| the
University of Illinois, one shall be a member of
the Board | 15 |
| of Trustees of Southern Illinois University, one shall be a | 16 |
| member
of the Board of Trustees of Chicago State University, | 17 |
| one shall be a member of
the Board of Trustees of Eastern | 18 |
| Illinois University, one shall be a member of
the Board of | 19 |
| Trustees of Governors State University, one shall be a member | 20 |
| of
the Board of Trustees of Illinois State University, one | 21 |
| shall be a member of
the Board of Trustees of Northeastern | 22 |
| Illinois University, one shall be a
member of the Board of | 23 |
| Trustees of Northern Illinois University, one shall be a
member | 24 |
| of the Board of Trustees of Western Illinois University, and | 25 |
| one shall
be a member of the Illinois Community College Board, |
|
|
|
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| selected in each case by
their respective boards, and 2 shall
| 2 |
| be participants of the system appointed by the Governor for a 6 | 3 |
| year term with
the first appointment made pursuant to this | 4 |
| amendatory Act of 1984 to be
effective September 1, 1985, and | 5 |
| one shall be a participant appointed by the
Illinois Community | 6 |
| College Board for a 6 year term, and one shall be a
participant | 7 |
| appointed by the Board of Trustees of the University of | 8 |
| Illinois
for a 6 year term, and one shall be a participant or | 9 |
| annuitant of the system
who is a senior citizen age 60 or older | 10 |
| appointed by the Governor for a 6 year
term with the first | 11 |
| appointment to be effective September 1, 1985.
| 12 |
| The terms of all trustees holding office under this | 13 |
| subsection (b) on
June 30, 1995 shall terminate at the end of | 14 |
| that day and the Board shall
thereafter be constituted as | 15 |
| provided in subsection (c).
| 16 |
| (c) Beginning July 1, 1995, the Board of Trustees shall be
| 17 |
| constituted as follows:
| 18 |
| The Board shall consist of 9 trustees appointed by the | 19 |
| Governor. Two of the
trustees, designated at the time of | 20 |
| appointment, shall be participants of the
System. Two of the | 21 |
| trustees, designated at the time of appointment, shall be
| 22 |
| annuitants of the System who are receiving retirement annuities | 23 |
| under this
Article. The 5 remaining trustees may, but need not, | 24 |
| be participants or
annuitants of the System.
| 25 |
| The term of office of trustees appointed under this | 26 |
| subsection (c)
shall be 6 years, beginning on July 1. However, |
|
|
|
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| of the initial trustees
appointed under this subsection (c), 3 | 2 |
| shall be appointed for terms of 2 years,
3 shall be appointed | 3 |
| for terms of 4 years, and 3 shall be appointed for terms
of 6 | 4 |
| years, to be designated by the Governor at the time of | 5 |
| appointment.
| 6 |
| The terms of all trustees holding office under this | 7 |
| subsection (c) on
the effective date of this amendatory Act of | 8 |
| the 96th General Assembly shall terminate at the end of that | 9 |
| day and the Board shall
thereafter be constituted as provided | 10 |
| in subsection (d). If the Governor makes a nomination for the | 11 |
| appointments under subsection (d) of this Section within 30 | 12 |
| days after the effective date of this amendatory Act of the | 13 |
| 96th General Assembly, then the members sitting on the board on | 14 |
| the effective date of this amendatory Act shall hold office | 15 |
| until their successors are appointed and qualified. If the | 16 |
| Governor fails to make a nomination for the appointments under | 17 |
| subsection (d) of this Section on or before the 30th day after | 18 |
| the effective date of this amendatory Act of the 96th General | 19 |
| Assembly, then those seats shall become vacant until the | 20 |
| Governor has appointed the successors with the advice and | 21 |
| consent of the Senate. | 22 |
| (d) Beginning on the 30th day after the effective date of | 23 |
| this amendatory Act of the 96th General Assembly, the Board of | 24 |
| Trustees shall be constituted as follows: | 25 |
| (1) The Chairperson of the Board of Higher Education, | 26 |
| who shall act as chairperson of this Board. |
|
|
|
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| 1 |
| (2) Four trustees appointed by the Governor with the | 2 |
| advice and consent of the Senate who may not be members of | 3 |
| the system or hold an elective State office and who shall | 4 |
| serve for a term of 6 years, except that the terms of the | 5 |
| initial appointees under this subsection (d) shall be as | 6 |
| follows: 2 for a term of 3 years and 2 for a term of 6 | 7 |
| years. | 8 |
| (3) Four active participants of the system to be | 9 |
| elected from the contributing membership of the system by | 10 |
| the
contributing members, no more than 2 of which may be | 11 |
| from any of the University of Illinois campuses, who shall | 12 |
| serve for a term of 6 years, except that the terms of the | 13 |
| initial electees shall be as follows: 2 for a term of 3 | 14 |
| years and 2 for a term of 6 years. | 15 |
| (4) Two annuitants of
the system who have been | 16 |
| annuitants for at least one full year, to be
elected from | 17 |
| and by the annuitants of the system, no more than one of | 18 |
| which may be from any of the University of Illinois | 19 |
| campuses, who shall serve for a term of 6 years, except | 20 |
| that the terms of the initial electees shall be as follows: | 21 |
| one for a term of 3 years and one for a term of 6 years. | 22 |
| (e) The 6 elected trustees shall be elected within 30 days | 23 |
| after the effective date of this amendatory Act of the 96th | 24 |
| General Assembly for a term beginning on the 30th day after the | 25 |
| effective date of this amendatory Act. Trustees shall be | 26 |
| elected thereafter as terms expire for a 6-year term beginning |
|
|
|
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| July 15 next following their election, and such election shall | 2 |
| be held on May 1, or on May 2 when May 1 falls on a Sunday. | 3 |
| Candidates for the participating trustee shall be nominated by | 4 |
| petitions in writing, signed by not less than 400 participants | 5 |
| with their addresses shown opposite their names. Candidates for | 6 |
| the annuitant trustee shall be nominated by petitions in | 7 |
| writing, signed by not less than 100 annuitants with their | 8 |
| addresses shown opposite their names. If there is more than one | 9 |
| qualified nominee for each elected trustee, then the board | 10 |
| shall conduct a secret ballot election by mail for that | 11 |
| trustee, in accordance with rules as established by the board. | 12 |
| If there is only one qualified person nominated by petition for | 13 |
| each elected trustee, then the election as required by this | 14 |
| Section shall not be conducted for that trustee and the board | 15 |
| shall declare such nominee duly elected. A vacancy occurring in | 16 |
| the elective membership of the board shall be filled for the | 17 |
| unexpired term by the elected trustees serving on the board for | 18 |
| the remainder of the term. | 19 |
| (f) A vacancy on the board of trustees caused by | 20 |
| resignation,
death, expiration of term of office, or other | 21 |
| reason shall be filled by a
qualified person appointed by the | 22 |
| Governor for the remainder of the unexpired
term.
| 23 |
| (g) Trustees (other than the trustees incumbent on June 30, | 24 |
| 1995 or as provided in subsection (c) of this Section )
shall | 25 |
| continue in office until their respective successors are | 26 |
| appointed
and have qualified, except that a trustee appointed |
|
|
|
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| 1 |
| to one of the
participant positions shall be disqualified | 2 |
| immediately upon the termination of
his or her status as a | 3 |
| participant and a trustee appointed to one of the
annuitant | 4 |
| positions shall be disqualified immediately upon the | 5 |
| termination of
his or her status as an annuitant receiving a | 6 |
| retirement annuity.
| 7 |
| (h) (d) Each trustee must take an oath of office
before a | 8 |
| notary public of this State and shall qualify as a trustee upon | 9 |
| the
presentation to the board of a certified copy of the oath. | 10 |
| The oath must state
that the person will diligently and | 11 |
| honestly administer the affairs of the
retirement system, and | 12 |
| will not knowingly violate or wilfully permit to be
violated | 13 |
| any provisions of this Article.
| 14 |
| Each trustee shall serve without compensation but shall be | 15 |
| reimbursed for
expenses necessarily incurred in attending | 16 |
| board meetings and carrying out his
or her duties as a trustee | 17 |
| or officer of the system.
| 18 |
| (i) (e) This amendatory Act of 1995 is intended to | 19 |
| supersede the changes made
to this Section by Public Act 89-4.
| 20 |
| (Source: P.A. 89-4, eff. 1-1-96; 89-196, eff. 7-21-95.)
| 21 |
| (40 ILCS 5/16-164) (from Ch. 108 1/2, par. 16-164)
| 22 |
| Sec. 16-164. Board - appointed members - vacancies. Terms | 23 |
| of office for
the appointed members shall begin on July 15 of | 24 |
| an even-numbered year.
The Governor shall appoint 2 members as | 25 |
| trustees with the advice and consent of the Senate in each |
|
|
|
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| 1 |
| even-numbered year
who shall hold office for a term of 4 years. | 2 |
| Each such appointee shall reside in and be
a taxpayer in the | 3 |
| territory covered by this system, shall be interested
in public | 4 |
| school welfare, and experienced and competent in financial and
| 5 |
| business management. A vacancy in the term of an appointed
| 6 |
| trustee shall be filled for the unexpired term by appointment | 7 |
| of the
Governor.
| 8 |
| Notwithstanding any provision of this Section to the | 9 |
| contrary, the term of office of each member of the Board | 10 |
| appointed by the Governor who is sitting on the Board on the | 11 |
| effective date of this amendatory Act of the 96th General | 12 |
| Assembly is terminated on that effective date. If the Governor | 13 |
| makes a nomination for the appointments under this Section | 14 |
| within 30 days after the effective date of this amendatory Act | 15 |
| of the 96th General Assembly, then the members sitting on the | 16 |
| board on the effective date of this amendatory Act shall hold | 17 |
| office until their successors are appointed and qualified. If | 18 |
| the Governor fails to make a nomination for the appointments | 19 |
| under this Section on or before the 30th day after the | 20 |
| effective date of this amendatory Act of the 96th General | 21 |
| Assembly, then those seats shall become vacant until the | 22 |
| Governor has appointed the successors with the advice and | 23 |
| consent of the Senate. | 24 |
| (Source: P.A. 83-1440.)
| 25 |
| (40 ILCS 5/22A-109) (from Ch. 108 1/2, par. 22A-109)
|
|
|
|
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|
| 1 |
| Sec. 22A-109. Membership of board. The board shall consist | 2 |
| of the following
members: | 3 |
| (1) Five trustees appointed by the Governor with the | 4 |
| advice and consent of the Senate who may not hold an | 5 |
| elective State office. | 6 |
| (2) The Treasurer. | 7 |
| (3) The Comptroller, who is the Chairperson of the | 8 |
| State Employees' Retirement System of Illinois. | 9 |
| (4) The Chairperson of the General Assembly Retirement | 10 |
| System. | 11 |
| (5) The Chairperson of the Judges Retirement System of | 12 |
| Illinois. | 13 |
| (a) ex-officio members consisting of the State Treasurer and
| 14 |
| the Chairman of the board of trustees of each pension fund or | 15 |
| retirement
system, other than pension funds covered by Articles | 16 |
| 3 and 4 of this Code,
whose investment functions have been | 17 |
| transferred to the jurisdiction of this
board; and (b) 5 | 18 |
| members appointed by the Governor with the approval of the
| 19 |
| Senate, one of whom shall be a senior citizen age 60 or over. | 20 |
| The appointive
members shall serve for terms of 4 years except | 21 |
| that the terms of office of the
original appointive members | 22 |
| pursuant to this amendatory Act of the 96th General Assembly | 23 |
| shall be as follows: One member for a term of 1
year; 1 member | 24 |
| for a term of 2 years; 1 member for a term of 3 years; and 2 | 25 |
| members 1
member for a term of 4 years. The member first | 26 |
| appointed under this amendatory
Act of 1984 shall serve for a |
|
|
|
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| term of 4 years. Vacancies among the appointive
members shall | 2 |
| be filled for unexpired terms by appointment in
like manner as | 3 |
| for original appointments, and appointive members shall
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| continue in office until their successors have been appointed | 5 |
| and have
qualified. Ex-officio members who cannot attend | 6 |
| meetings of the board or
its committees may respectively | 7 |
| designate one appropriate proxy from within
the office of the | 8 |
| State Treasurer or the trustees of the pension fund or
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| retirement system, which proxy shall have the same powers and | 10 |
| authority as the
ex-officio member being represented, but no | 11 |
| member may designate a different
proxy within one year after | 12 |
| his last designation of a proxy unless the person
last so | 13 |
| designated has become ineligible to serve in that capacity.
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| Notwithstanding any provision of this Section to the | 15 |
| contrary, the term of office of each member of the Board | 16 |
| appointed by the Governor who is sitting on the Board on the | 17 |
| effective date of this amendatory Act of the 96th General | 18 |
| Assembly is terminated on that effective date. If the Governor | 19 |
| makes a nomination for the appointments under this Section | 20 |
| within 30 days after the effective date of this amendatory Act | 21 |
| of the 96th General Assembly, then the members sitting on the | 22 |
| board on the effective date of this amendatory Act shall hold | 23 |
| office until their successors are appointed and qualified. If | 24 |
| the Governor fails to make a nomination for the appointments | 25 |
| under this Section on or before the 30th day after the | 26 |
| effective date of this amendatory Act of the 96th General |
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LRB096 06397 AMC 24876 a |
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| Assembly, then those seats shall become vacant until the | 2 |
| Governor has appointed the successors with the advice and | 3 |
| consent of the Senate. | 4 |
| Each person appointed to membership shall qualify by taking | 5 |
| an oath of
office before the Secretary of State stating that he | 6 |
| will diligently and
honestly administer the affairs of the | 7 |
| board and will not violate or knowingly
permit the violation of | 8 |
| any provisions of this Article.
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| Members of the board shall receive no salary for service on | 10 |
| the board but
shall be reimbursed for travel expenses incurred | 11 |
| while on business for the
board according to the standards in | 12 |
| effect for members of the Illinois
Legislative Research Unit.
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| A majority of the members of the board shall constitute a | 14 |
| quorum. The
board shall elect from its membership, biennially, | 15 |
| a Chairman, Vice Chairman
and a Recording Secretary. These | 16 |
| officers, together with one other member
elected by the board, | 17 |
| shall constitute the executive committee. During the
interim | 18 |
| between regular meetings of the board, the executive committee | 19 |
| shall
have authority to conduct all business of the board and | 20 |
| shall report such
business conducted at the next following | 21 |
| meeting of the board for ratification.
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| No member of the board shall have any interest in any | 23 |
| brokerage fee,
commission or other profit or gain arising out | 24 |
| of any investment made by
the board. This paragraph does not | 25 |
| preclude ownership by any member of any
minority interest in | 26 |
| any common stock or any corporate obligation in which
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LRB096 06397 AMC 24876 a |
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| investment is made by the board.
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| The board shall contract for a blanket fidelity bond in the | 3 |
| penal sum of
not less than $1,000,000.00 to cover members of | 4 |
| the board, the director and
all other employees of the board | 5 |
| conditioned for the faithful performance of
the duties of their | 6 |
| respective offices, the premium on which shall be paid by
the | 7 |
| board. The bond shall be filed with the State Treasurer for | 8 |
| safekeeping.
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| (Source: P.A. 87-1265.)
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| Section 97. Severability. The provisions of this Act are | 11 |
| severable under Section 1.31 of the Statute on Statutes.
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| Section 99. Effective date. This Act takes effect upon | 13 |
| becoming law.".
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