Rep. John E. Bradley
Filed: 4/8/2008
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1 | AMENDMENT TO HOUSE BILL 562
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2 | AMENDMENT NO. ______. Amend House Bill 562 by replacing | ||||||
3 | everything after the enacting clause with the following:
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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 | by providing financially prudent investment opportunities in | ||||||
13 | or through the use of (a) Illinois businesses or (b) | ||||||
14 | Illinois-based projects that promote the economy of the State | ||||||
15 | or a region of the State, including without limitation | ||||||
16 | promotion of venture capital programs, coal and other natural |
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1 | resource development, tourism development, infrastructure | ||||||
2 | development, real estate development, and job development | ||||||
3 | within the State of Illinois, while producing a competitive | ||||||
4 | rate of return commensurate with the risk of investment. | ||||||
5 | "Illinois business" means a business, including an | ||||||
6 | investment adviser, that is headquartered in Illinois. | ||||||
7 | "Illinois-based project" means an individual project of a | ||||||
8 | business, including the provision of products and investment | ||||||
9 | and other services to the pension fund, that will result in the | ||||||
10 | conduct of business within the State, the employment of | ||||||
11 | individuals within the State, or the acquisition of real | ||||||
12 | property located within the State.
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13 | (b) It is the public policy of the State of Illinois to | ||||||
14 | encourage the pension funds, and any State entity investing | ||||||
15 | funds on behalf of pension funds, to promote the economy of | ||||||
16 | Illinois through the use of economic opportunity investments to | ||||||
17 | the greatest extent feasible within the bounds of financial and | ||||||
18 | fiduciary prudence.
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19 | (c) Each pension fund, except pension funds created under | ||||||
20 | Articles 3 and 4 of this Code, shall submit a report to the | ||||||
21 | Governor and the General Assembly by September 1 of each year, | ||||||
22 | beginning in 2009, that identifies the economic opportunity | ||||||
23 | investments made by the fund, the primary location of the | ||||||
24 | business or project, the percentage of the fund's assets in | ||||||
25 | economic opportunity investments, the actions that the fund has | ||||||
26 | undertaken to increase the use of economic opportunity |
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1 | investments. | ||||||
2 | (d) Pension funds created under Articles 2, 14, 15, 16, and | ||||||
3 | 18 of this Act, and any State agency investing funds on behalf | ||||||
4 | of those pension funds, must make reasonable efforts to invest | ||||||
5 | in economic opportunity investments. | ||||||
6 | (e) In making economic opportunity investments, trustees | ||||||
7 | and fiduciaries must comply with the relevant requirements and | ||||||
8 | restrictions set forth in Sections 1-109, 1-109.1, 1-109.2, | ||||||
9 | 1-110, and 1-111 of this Code. Economic opportunity investments | ||||||
10 | that otherwise comply with this Code shall not be deemed | ||||||
11 | imprudent solely because they are investments in an Illinois | ||||||
12 | business or Illinois-based project.
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13 | (40 ILCS 5/15-167) (from Ch. 108 1/2, par. 15-167)
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14 | Sec. 15-167. To invest money. To invest the funds of the | ||||||
15 | system, subject
to the requirements and restrictions set forth | ||||||
16 | in Sections 1-108.5, 1-109, 1-109.1,
1-109.2, 1-110, 1-111, | ||||||
17 | 1-114, 1-115, and 15-158.2(d) of this
Code and to invest in | ||||||
18 | real estate acquired by
purchase, gift, condemnation or | ||||||
19 | otherwise, and any office building or buildings
existing or to | ||||||
20 | be constructed thereon, including any additions thereto or
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21 | expansions thereof, for the use of the system. The board may | ||||||
22 | lease surplus
space in any of the buildings and use rental | ||||||
23 | proceeds for operation,
maintenance, improving, expanding and | ||||||
24 | furnishing of the buildings or for any
other lawful system | ||||||
25 | purpose.
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1 | No bank or savings and loan association shall receive | ||||||
2 | investment funds
as permitted by this Section, unless it has | ||||||
3 | complied with the requirements
established pursuant to Section | ||||||
4 | 6 of "An Act relating to certain investments
of public funds by | ||||||
5 | public agencies", approved July 23, 1943, as now or
hereafter | ||||||
6 | amended. The limitations set forth in such Section 6 shall be
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7 | applicable only at the time of investment and shall not require | ||||||
8 | the liquidation
of any investment at any time.
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9 | The board shall have the authority to enter into such | ||||||
10 | agreements and to
execute such documents as it determines to be | ||||||
11 | necessary to complete any
investment transaction.
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12 | All investments shall be clearly held and accounted for to | ||||||
13 | indicate ownership
by the board. The board may direct the | ||||||
14 | registration of securities in its
own name or in the name of a | ||||||
15 | nominee created for the express purpose of
registration of | ||||||
16 | securities by a national or state bank or trust company
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17 | authorized to conduct a trust business in the State of | ||||||
18 | Illinois.
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19 | Investments shall be carried at cost or at a value | ||||||
20 | determined in
accordance with generally accepted accounting | ||||||
21 | principles and accounting
procedures approved by the Board.
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22 | All additions to assets from income, interest, and | ||||||
23 | dividends
from investments shall be used to pay benefits,
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24 | operating and administrative expenses of the system, debt | ||||||
25 | service,
including any redemption premium, on any bonds issued | ||||||
26 | by the board,
expenses incurred or deposits required in |
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1 | connection with such bonds, and
such other costs as may be | ||||||
2 | provided in accordance with this
Article.
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3 | (Source: P.A. 90-19, eff. 6-20-97; 90-766, eff. 8-14-98.)
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4 | Section 99. Effective date. This Act takes effect upon | ||||||
5 | becoming law.".
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