Sen. Robert F. Martwick

Filed: 5/9/2023

 

 


 

 


 
10300HB2352sam001LRB103 27717 RPS 61565 a

1
AMENDMENT TO HOUSE BILL 2352

2    AMENDMENT NO. ______. Amend House Bill 2352 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Pension Code is amended by
5changing Section 1-110 as follows:
 
6    (40 ILCS 5/1-110)  (from Ch. 108 1/2, par. 1-110)
7    Sec. 1-110. Prohibited Transactions.
8    (a) A fiduciary with respect to a retirement system,
9pension fund, or investment board shall not cause the the
10retirement system or pension fund to engage in a transaction
11if he or she knows or should know that such transaction
12constitutes a direct or indirect:
13        (1) Sale or exchange, or leasing of any property from
14    the retirement system or pension fund to a party in
15    interest for less than adequate consideration, or from a
16    party in interest to a retirement system or pension fund

 

 

10300HB2352sam001- 2 -LRB103 27717 RPS 61565 a

1    for more than adequate consideration.
2        (2) Lending of money or other extension of credit from
3    the retirement system or pension fund to a party in
4    interest without the receipt of adequate security and a
5    reasonable rate of interest, or from a party in interest
6    to a retirement system or pension fund with the provision
7    of excessive security or an unreasonably high rate of
8    interest.
9        (3) Furnishing of goods, services or facilities from
10    the retirement system or pension fund to a party in
11    interest for less than adequate consideration, or from a
12    party in interest to a retirement system or pension fund
13    for more than adequate consideration.
14        (4) Transfer to, or use by or for the benefit of, a
15    party in interest of any assets of a retirement system or
16    pension fund for less than adequate consideration.
17    (b) A fiduciary with respect to a retirement system or
18pension fund established under this Code shall not:
19        (1) Deal with the assets of the retirement system or
20    pension fund in his own interest or for his own account;
21        (2) In his individual or any other capacity act in any
22    transaction involving the retirement system or pension
23    fund on behalf of a party whose interests are adverse to
24    the interests of the retirement system or pension fund or
25    the interests of its participants or beneficiaries; or
26        (3) Receive any consideration for his own personal

 

 

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1    account from any party dealing with the retirement system
2    or pension fund in connection with a transaction involving
3    the assets of the retirement system or pension fund.
4    (c) Nothing in this Section shall be construed to prohibit
5any trustee from:
6        (1) Receiving any benefit to which he may be entitled
7    as a participant or beneficiary in the retirement system
8    or pension fund.
9        (2) Receiving any reimbursement of expenses properly
10    and actually incurred in the performance of his duties
11    with the retirement system or pension fund.
12        (3) Serving as a trustee in addition to being an
13    officer, employee, agent or other representative of a
14    party in interest.
15    (d) A fiduciary of a pension fund established under
16Article 3 or 4 shall not knowingly cause or advise the pension
17fund to engage in an investment transaction when the fiduciary
18(i) has any direct interest in the income, gains, or profits of
19the investment adviser through which the investment
20transaction is made or (ii) has a business relationship with
21that investment adviser that would result in a pecuniary
22benefit to the fiduciary as a result of the investment
23transaction.
24    Violation of this subsection (d) is a Class 4 felony.
25    (e) A board member, employee, or consultant with respect
26to a retirement system, pension fund, or investment board

 

 

10300HB2352sam001- 4 -LRB103 27717 RPS 61565 a

1subject to this Code, except those whose investments are
2restricted by Section 1-113.2, shall not knowingly cause or
3advise the retirement system, pension fund, or investment
4board to engage in an investment transaction with an
5investment adviser when the board member, employee,
6consultant, or their spouse (i) has any direct interest in the
7income, gains, or profits of the investment adviser through
8which the investment transaction is made or (ii) has a
9relationship with that investment adviser that would result in
10a pecuniary benefit to the board member, employee, or
11consultant or spouse of such board member, employee, or
12consultant as a result of the investment transaction. For
13purposes of this subsection (e), a consultant includes an
14employee or agent of a consulting firm who has greater than
157.5% ownership of the consulting firm.
16    Violation of this subsection (e) is a Class 4 felony.
17(Source: P.A. 95-950, eff. 8-29-08; 96-6, eff. 4-3-09.)".