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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 | Section 1A-108.5 and by changing Section 15-167 as follows: | ||||||||||||||||||||||||||
6 | (40 ILCS 5/1A-108.5 new) | ||||||||||||||||||||||||||
7 | Sec. 1A-108.5. Economic opportunity investments.
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8 | (a) For the purposes of this Section: | ||||||||||||||||||||||||||
9 | "Economic opportunity investment" means a qualified | ||||||||||||||||||||||||||
10 | investment, managed passively or actively by the pension fund, | ||||||||||||||||||||||||||
11 | that promotes economic development within the State of Illinois | ||||||||||||||||||||||||||
12 | through investments in companies, individuals, partnerships, | ||||||||||||||||||||||||||
13 | projects, and financially prudent investment opportunities in | ||||||||||||||||||||||||||
14 | Illinois businesses or Illinois-based projects that promote | ||||||||||||||||||||||||||
15 | the economy of the State or a region of the State, including | ||||||||||||||||||||||||||
16 | without limitation promotion of venture capital programs, coal | ||||||||||||||||||||||||||
17 | and other natural resource development, tourism development, | ||||||||||||||||||||||||||
18 | infrastructure development, real estate development, and job | ||||||||||||||||||||||||||
19 | development within the State of Illinois, while producing a | ||||||||||||||||||||||||||
20 | competitive rate of return commensurate with the risk of | ||||||||||||||||||||||||||
21 | investment. | ||||||||||||||||||||||||||
22 | "Illinois business" means a business that meets any of the | ||||||||||||||||||||||||||
23 | following criteria: |
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1 | (1) Conducts 25% or more of its business within the | ||||||
2 | State. | ||||||
3 | (2) Fifty percent or more of its employees are employed | ||||||
4 | in Illinois. | ||||||
5 | (3) Twenty-five percent of the real property owned by | ||||||
6 | the business is located within the State. | ||||||
7 | "Illinois-based project" means an individual project of a | ||||||
8 | business that will result in the conduct of business within the | ||||||
9 | State, the employment of individuals within the State, or the | ||||||
10 | acquisition of real property located within the State.
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11 | (b) It is the public policy of the State of Illinois to | ||||||
12 | encourage the pension funds, and any State agency investing | ||||||
13 | funds on behalf of pension funds, to promote the economy of | ||||||
14 | Illinois through the use of economic opportunity investments | ||||||
15 | while managing their assets to the greatest extent feasible | ||||||
16 | within the bounds of financial and fiduciary prudence.
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17 | (c) Each pension fund, except pension funds created under | ||||||
18 | Articles 3 and 4 of this Code, shall submit a report to the | ||||||
19 | Governor and the General Assembly by September 1 of each year | ||||||
20 | that identifies the economic opportunity investments made by | ||||||
21 | the fund, the primary location of the business or project, the | ||||||
22 | percentage of the fund's assets in economic opportunity | ||||||
23 | investments, and the actions that the fund has undertaken to | ||||||
24 | increase the use of economic opportunity investments, | ||||||
25 | including encouraging other investment managers to make | ||||||
26 | economic opportunity investments through subcontractors. |
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1 | (d) Pension funds created under Articles 2, 14, 15, 16, and | ||||||
2 | 18 of this Act, and any State agency investing funds on behalf | ||||||
3 | of those pension funds, must make all reasonable efforts to | ||||||
4 | invest a minimum of 5% of pension fund assets in economic | ||||||
5 | opportunity investments. If a pension fund invests less than 5% | ||||||
6 | of pension fund assets in economic opportunity investments, | ||||||
7 | then the pension fund must include the reason it could not meet | ||||||
8 | this minimum in the report required under subsection (c). | ||||||
9 | (e) In making economic opportunity investments, trustees | ||||||
10 | and fiduciaries must comply with the relevant requirements and | ||||||
11 | restrictions set forth in Sections 1-109, 1-109.1, 1-109.2, | ||||||
12 | 1-110, and 1-111 of this Code. Economic opportunity investments | ||||||
13 | that otherwise comply with this Code shall not be deemed | ||||||
14 | imprudent solely because it is an investment in an Illinois | ||||||
15 | business or Illinois-based project.
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16 | (40 ILCS 5/15-167) (from Ch. 108 1/2, par. 15-167)
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17 | Sec. 15-167. To invest money. To invest the funds of the | ||||||
18 | system, subject
to the requirements and restrictions set forth | ||||||
19 | in Sections 1-108.5, 1-109, 1-109.1,
1-109.2, 1-110, 1-111, | ||||||
20 | 1-114, 1-115, and 15-158.2(d) of this
Code and to invest in | ||||||
21 | real estate acquired by
purchase, gift, condemnation or | ||||||
22 | otherwise, and any office building or buildings
existing or to | ||||||
23 | be constructed thereon, including any additions thereto or
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24 | expansions thereof, for the use of the system. The board may | ||||||
25 | lease surplus
space in any of the buildings and use rental |
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1 | proceeds for operation,
maintenance, improving, expanding and | ||||||
2 | furnishing of the buildings or for any
other lawful system | ||||||
3 | purpose.
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4 | No bank or savings and loan association shall receive | ||||||
5 | investment funds
as permitted by this Section, unless it has | ||||||
6 | complied with the requirements
established pursuant to Section | ||||||
7 | 6 of "An Act relating to certain investments
of public funds by | ||||||
8 | public agencies", approved July 23, 1943, as now or
hereafter | ||||||
9 | amended. The limitations set forth in such Section 6 shall be
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10 | applicable only at the time of investment and shall not require | ||||||
11 | the liquidation
of any investment at any time.
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12 | The board shall have the authority to enter into such | ||||||
13 | agreements and to
execute such documents as it determines to be | ||||||
14 | necessary to complete any
investment transaction.
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15 | All investments shall be clearly held and accounted for to | ||||||
16 | indicate ownership
by the board. The board may direct the | ||||||
17 | registration of securities in its
own name or in the name of a | ||||||
18 | nominee created for the express purpose of
registration of | ||||||
19 | securities by a national or state bank or trust company
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20 | authorized to conduct a trust business in the State of | ||||||
21 | Illinois.
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22 | Investments shall be carried at cost or at a value | ||||||
23 | determined in
accordance with generally accepted accounting | ||||||
24 | principles and accounting
procedures approved by the Board.
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25 | All additions to assets from income, interest, and | ||||||
26 | dividends
from investments shall be used to pay benefits,
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1 | operating and administrative expenses of the system, debt | ||||||
2 | service,
including any redemption premium, on any bonds issued | ||||||
3 | by the board,
expenses incurred or deposits required in | ||||||
4 | connection with such bonds, and
such other costs as may be | ||||||
5 | provided in accordance with this
Article.
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6 | (Source: P.A. 90-19, eff. 6-20-97; 90-766, eff. 8-14-98.)
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7 | Section 99. Effective date. This Act takes effect upon | ||||||
8 | becoming law.
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