Rep. John E. Bradley

Filed: 5/17/2005

 

 


 

 


 
09400HB1813ham001 LRB094 03163 AMC 46482 a

1
AMENDMENT TO HOUSE BILL 1813

2     AMENDMENT NO. ______. Amend House Bill 1813 by replacing
3 everything after the enacting clause with the following:
 
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.
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:
24         (1) Conducts 25% or more of its business within the

 

 

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1     State.
2         (2) Fifty percent or more of its employees are employed
3     in Illinois.
4         (3) Twenty-five percent of the real property owned by
5     the business is located within the State.
6     "Illinois-based project" means an individual project of a
7 business that will result in the conduct of business within the
8 State, the employment of individuals within the State, or the
9 acquisition of real property located within the State.
10     (b) It is the public policy of the State of Illinois to
11 encourage the pension funds, and any State agency investing
12 funds on behalf of pension funds, to promote the economy of
13 Illinois through the use of economic opportunity investments
14 while managing their assets to the greatest extent feasible
15 within the bounds of financial and fiduciary prudence.
16     (c) Each pension fund, except pension funds created under
17 Articles 3 and 4 of this Code, shall submit a report to the
18 Governor and the General Assembly by September 1 of each year
19 that identifies the economic opportunity investments made by
20 the fund, the primary location of the business or project, the
21 percentage of the fund's assets in economic opportunity
22 investments, and the actions that the fund has undertaken to
23 increase the use of economic opportunity investments,
24 including encouraging other investment managers to make
25 economic opportunity investments through subcontractors.
26     (d) Pension funds created under Articles 2, 14, 15, 16, and
27 18 of this Act, and any State agency investing funds on behalf
28 of those pension funds, must make all reasonable efforts to
29 invest a minimum of 5% of pension fund assets in economic
30 opportunity investments. If a pension fund invests less than 5%
31 of pension fund assets in economic opportunity investments,
32 then the pension fund must include the reason it could not meet
33 this minimum in the report required under subsection (c).
34     (e) In making economic opportunity investments, trustees

 

 

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1 and fiduciaries must comply with the relevant requirements and
2 restrictions set forth in Sections 1-109, 1-109.1, 1-109.2,
3 1-110, and 1-111 of this Code. Economic opportunity investments
4 that otherwise comply with this Code shall not be deemed
5 imprudent solely because it is an investment in an Illinois
6 business or Illinois-based project.
 
7     (40 ILCS 5/15-167)  (from Ch. 108 1/2, par. 15-167)
8     Sec. 15-167. To invest money. To invest the funds of the
9 system, subject to the requirements and restrictions set forth
10 in Sections 1-108.5, 1-109, 1-109.1, 1-109.2, 1-110, 1-111,
11 1-114, 1-115, and 15-158.2(d) of this Code and to invest in
12 real estate acquired by purchase, gift, condemnation or
13 otherwise, and any office building or buildings existing or to
14 be constructed thereon, including any additions thereto or
15 expansions thereof, for the use of the system. The board may
16 lease surplus space in any of the buildings and use rental
17 proceeds for operation, maintenance, improving, expanding and
18 furnishing of the buildings or for any other lawful system
19 purpose.
20     No bank or savings and loan association shall receive
21 investment funds as permitted by this Section, unless it has
22 complied with the requirements established pursuant to Section
23 6 of "An Act relating to certain investments of public funds by
24 public agencies", approved July 23, 1943, as now or hereafter
25 amended. The limitations set forth in such Section 6 shall be
26 applicable only at the time of investment and shall not require
27 the liquidation of any investment at any time.
28     The board shall have the authority to enter into such
29 agreements and to execute such documents as it determines to be
30 necessary to complete any investment transaction.
31     All investments shall be clearly held and accounted for to
32 indicate ownership by the board. The board may direct the
33 registration of securities in its own name or in the name of a

 

 

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1 nominee created for the express purpose of registration of
2 securities by a national or state bank or trust company
3 authorized to conduct a trust business in the State of
4 Illinois.
5     Investments shall be carried at cost or at a value
6 determined in accordance with generally accepted accounting
7 principles and accounting procedures approved by the Board.
8     All additions to assets from income, interest, and
9 dividends from investments shall be used to pay benefits,
10 operating and administrative expenses of the system, debt
11 service, including any redemption premium, on any bonds issued
12 by the board, expenses incurred or deposits required in
13 connection with such bonds, and such other costs as may be
14 provided in accordance with this Article.
15 (Source: P.A. 90-19, eff. 6-20-97; 90-766, eff. 8-14-98.)
 
16     Section 99. Effective date. This Act takes effect upon
17 becoming law.".