HB1188 94TH GENERAL ASSEMBLY

LRB094 04143 AMC 34164 b

94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
HB1188

Introduced 2/8/2005, by Rep. Robert S. Molaro

SYNOPSIS AS INTRODUCED:

50 ILCS 5/7-195.2 new

Amends the Illinois Municipal Retirement Fund (IMRF) Article of the Illinois Pension Code. Provides that the Board shall have the power and duty to use emerging investment managers, minority-owned investment businesses, female-owned businesses, and businesses owned by persons with disabilities in managing the Fund's assets. Declares that it is the public policy of the State to encourage the use of those managers and businesses. Requires the Fund to submit an annual report to the General Assembly that identifies the emerging investment managers, minority-owned businesses, female-owned businesses, and businesses owned by persons with disabilities used by the Fund, the percentage of the Fund's assets under the control of those managers and businesses, and the actions the Fund has taken to increase the use of those managers and businesses. Effective immediately.

FISCAL NOTE ACT MAY APPLY

PENSION IMPACT NOTE ACT MAY APPLY

A BILL FOR

AN ACT in relation to public employee benefits.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Pension Code is amended by adding Section 7-195.2 as follows:

(50 ILCS 5/7-195.2 new)

Sec. 7-195.2. To use emerging investment managers, minority-owned businesses, female-owned businesses, and businesses owned by persons with disabilities in managing the Fund's assets.

(a) For the purposes of this Section:

"Emerging investment manager" means a qualified investment adviser that manages an investment portfolio of at least $10,000,000 but less than $500,000,000 and is a minority-owned business, female-owned business, or business owned by a person with a disability, as those terms are defined in this Section.

"Minority-owned business" means a business concern that is at least 51% owned by one or more minority persons or, in the case of a corporation, at least 51% of the stock in which is owned by one or more minority persons; and the management and daily business operations of which are controlled by one or more of the minority persons who own it.

"Female owned business" means a business concern that is at least 51% owned by one or more females or, in the case of a corporation, at least 51% of the stock in which is owned by one or more females; and the management and daily business operations of which are controlled by one or more of the females who own it.

"Business owned by a person with a disability" means a business concern that is at least 51% owned by one or more persons with disabilities and the management and daily business operations of which are controlled by one or more of the persons with disabilities who own it.

"Minority person", "female", and "person with a disability" have the meanings given them in the Business Enterprise for Minorities, Females, and Persons with Disabilities Act.

(b) It is hereby declared to be the public policy of the State of Illinois to encourage the trustees of the Fund to use emerging investment managers, minority-owned businesses, female-owned businesses, and businesses owned by persons with disabilities in managing the Fund's assets to the greatest extent feasible within the bounds of financial and fiduciary prudence, and to take affirmative steps to remove any barriers to the full participation of emerging investment managers, minority-owned businesses, female-owned businesses, and businesses owned by persons with disabilities in investment opportunities afforded by the Fund.

(c) The Fund shall prepare a report to be submitted to the Governor and the General Assembly by September 1 of each year. The report shall identify the emerging investment managers, minority-owned businesses, female-owned businesses, and businesses owned by persons with disabilities used by the Fund, the percentage of the Fund's assets under the investment control of those managers and businesses, and the actions the Fund has undertaken to increase the use of those managers and businesses, including encouraging other investment managers to use emerging investment managers, minority-owned businesses, female-owned businesses, and businesses owned by persons with disabilities as subcontractors when the opportunity arises.

(d) With respect to this Fund, this Section supersedes the provisions of subsection (4) of Section 1-109.1 of this Code.

Section 99. Effective date. This Act takes effect upon becoming law.