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| | SB1714 Enrolled | | LRB100 08308 RPS 18412 b |
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| 1 | | AN ACT concerning public employee benefits.
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| 2 | | Be it enacted by the People of the State of Illinois,
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| 3 | | represented in the General Assembly:
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| 4 | | Section 5. The Illinois Pension Code is amended by adding |
| 5 | | Sections 1-113.22 and 1-113.23 as follows:
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| 6 | | (40 ILCS 5/1-113.22 new) |
| 7 | | Sec. 1-113.22. Required disclosures from consultants; |
| 8 | | minority owned businesses, female owned businesses, and |
| 9 | | businesses owned by persons with a disability. |
| 10 | | (a) No later than January 1, 2018 and each January 1 |
| 11 | | thereafter, each consultant retained by the board of a |
| 12 | | retirement system, board of a pension fund, or investment board |
| 13 | | shall disclose to that board of the retirement system, board of |
| 14 | | the pension fund, or investment board: |
| 15 | | (1) the total number of searches for investment |
| 16 | | services made by the consultant in the prior calendar year; |
| 17 | | (2) the total number of searches for investment |
| 18 | | services made by the consultant in the prior calendar year |
| 19 | | that included (i) a minority owned business, (ii) a female |
| 20 | | owned business, or (iii) a business owned by a person with |
| 21 | | a disability; |
| 22 | | (3) the total number of searches for investment |
| 23 | | services made by the consultant in the prior calendar year |
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| | SB1714 Enrolled | - 2 - | LRB100 08308 RPS 18412 b |
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| 1 | | in which the consultant recommended for selection (i) a |
| 2 | | minority owned business, (ii) a female owned business, or |
| 3 | | (iii) a business owned by a person with a disability; |
| 4 | | (4) the total number of searches for investment |
| 5 | | services made by the consultant in the prior calendar year |
| 6 | | that resulted in the selection of (i) a minority owned |
| 7 | | business, (ii) a female owned business, or (iii) a business |
| 8 | | owned by a person with a disability; and |
| 9 | | (5) the total dollar amount of investment made in the |
| 10 | | previous calendar year with (i) a minority owned business, |
| 11 | | (ii) a female owned business, or (iii) a business owned by |
| 12 | | a person with a disability that was selected after a search |
| 13 | | for investment services performed by the consultant. |
| 14 | | (b) Beginning January 1, 2018, no contract, oral or |
| 15 | | written, for consulting services shall be awarded by a board of |
| 16 | | a retirement system, a board of a pension fund, or an |
| 17 | | investment board without first requiring the consultant to make |
| 18 | | the disclosures required in subsection (a) of this Section. |
| 19 | | (c) The disclosures required by subsection (b) of this |
| 20 | | Section shall be considered, within the bounds of financial and |
| 21 | | fiduciary prudence, prior to the awarding of a contract, oral |
| 22 | | or written, for consulting services. |
| 23 | | (d) As used in this Section, the terms "minority person", |
| 24 | | "female", "person with a disability", "minority owned |
| 25 | | business", "female owned business", and "business owned by a |
| 26 | | person with a disability" have the same meaning as those terms |
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| | SB1714 Enrolled | - 3 - | LRB100 08308 RPS 18412 b |
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| 1 | | have in the Business Enterprise for Minorities, Females, and |
| 2 | | Persons with Disabilities Act.
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| 3 | | (40 ILCS 5/1-113.23 new) |
| 4 | | Sec. 1-113.23. Required disclosures from consultants; |
| 5 | | compensation and economic opportunity received. |
| 6 | | (a) As used in this Section: |
| 7 | | "Compensation" means any money, thing of value, or economic |
| 8 | | benefit conferred on, or received by, a consultant in return |
| 9 | | for services rendered, or to be rendered, by himself, herself, |
| 10 | | or another. |
| 11 | | "Economic opportunity" means any purchase, sale, lease, |
| 12 | | contract, option, or other transaction or arrangement |
| 13 | | involving property or services wherein a consultant may gain an |
| 14 | | economic benefit. |
| 15 | | (b) No later than January 1, 2018 and each January 1 |
| 16 | | thereafter, a consultant retained by the board of a retirement |
| 17 | | system, the board of a pension fund, or an investment board |
| 18 | | shall disclose to the board of the retirement system, the board |
| 19 | | of the pension fund, or the investment board all compensation |
| 20 | | and economic opportunity received in the last 24 months from |
| 21 | | investment advisors retained by the board of a retirement |
| 22 | | system, board of a pension fund, or investment board. |
| 23 | | (c) Beginning January 1, 2018, a consultant shall disclose |
| 24 | | to the board of a retirement system, the board of a pension |
| 25 | | fund, or an investment board any compensation or economic |
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| | SB1714 Enrolled | - 4 - | LRB100 08308 RPS 18412 b |
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| 1 | | opportunity received in the last 24 months from an investment |
| 2 | | advisor that is recommended for selection by the consultant. A |
| 3 | | consultant shall make this disclosure prior to the board |
| 4 | | selecting an investment advisor for appointment. |
| 5 | | (d) Beginning January 1, 2018, no contract, oral or |
| 6 | | written, for consulting services shall be awarded by a board of |
| 7 | | a retirement system, board of a pension fund, or an investment |
| 8 | | board without first requiring the consultant to make the |
| 9 | | disclosures required in subsection (c) of this Section.
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| 10 | | Section 99. Effective date. This Act takes effect upon |
| 11 | | becoming law.
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