SB0460 102ND GENERAL ASSEMBLY

LRB102 11534 RPS 16868 b

102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB0460

Introduced 2/23/2021, by Sen. Napoleon Harris, III

SYNOPSIS AS INTRODUCED:

40 ILCS 5/8-201.2 new
30 ILCS 805/8.45 new

Amends the Chicago Municipal Article of the Illinois Pension Code. Provides that all contracts for investment services shall be awarded by the board of trustees using a competitive process that is substantially similar to the process required for the procurement of professional and artistic services under the Illinois Procurement Code. Provides that an exception shall be allowed for contracts for investment services with an emerging investment manager provided through a qualified manager of emerging investment managers services. Provides that based upon a written recommendation from an investment adviser providing qualified manager of emerging investment managers services for the selection or appointment of an emerging investment manager that has been providing investment services in the multimanager portfolio for at least 24 months, the board may select or appoint such emerging investment manager. Provides that all exceptions must be published on the Fund's website, which shall name the person authorizing the procurement and shall include a brief explanation of the reason for the exception. Defines terms. Amends the State Mandates Act to require implementation without reimbursement by the State.

FISCAL NOTE ACT MAY APPLY

PENSION IMPACT NOTE ACT MAY APPLY

STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

A BILL FOR

AN ACT concerning public employee benefits.

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

Section 5. The Illinois Pension Code is amended by adding Section 8-201.2 as follows:

(40 ILCS 5/8-201.2 new)

Sec. 8-201.2. Contracts for investment services with emerging investment managers through a qualified manager of emerging investment managers services.

(a) As used in this Section:

"Emerging investment manager" has the meaning given to that term in subsection (4) of Section 1-109.1

"Investment services" has the meaning given to that term in Section 1-113.14.

"Qualified manager of emerging investment managers services" means the services of an investment adviser acting in its capacity as an investment manager of a multimanager portfolio made up of emerging investment managers.

(b) Consistent with the requirements of Section 1-113.14, all contracts for investment services shall be awarded by the board using a competitive process that is substantially similar to the process required for the procurement of professional and artistic services under Article 35 of the Illinois Procurement Code; however, an exception to the requirements of Section 1-113.14 shall be allowed for contracts for investment services with an emerging investment manager provided through a qualified manager of emerging investment managers services. Based upon a written recommendation from an investment adviser providing qualified manager of emerging investment managers services for the selection or appointment of an emerging investment manager that has been providing investment services in the multimanager portfolio for at least 24 months, the board may select or appoint such emerging investment manager. All exceptions to Section 1-113.14 granted under this Section must be published on the Fund's website, which shall name the person authorizing the procurement and shall include a brief explanation of the reason for the exception.

(c) A qualified manager of emerging investment managers services shall comply with the requirements regarding written contracts set forth in subsection (c) of Section 1-113.14.

Section 90. The State Mandates Act is amended by adding Section 8.45 as follows:

(30 ILCS 805/8.45 new)

Sec. 8.45. Exempt mandate. Notwithstanding Sections 6 and 8 of this Act, no reimbursement by the State is required for the implementation of any mandate created by this amendatory Act of the 102nd General Assembly.