SB2987 94TH GENERAL ASSEMBLY

LRB094 19177 JAM 54713 b

94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
SB2987

Introduced 1/20/2006, by Sen. Christine Radogno - Peter J. Roskam - Cheryl Axley - Kirk W. Dillard - John J. Millner

SYNOPSIS AS INTRODUCED:

New Act
40 ILCS 5/1-101.2
40 ILCS 5/1-101.4
40 ILCS 5/1-110	from Ch. 108 1/2, par. 1-110
40 ILCS 5/1-113.5
40 ILCS 5/1-113.12
40 ILCS 5/1-125 new
40 ILCS 5/1-130 new
40 ILCS 5/1-135 new
40 ILCS 5/1-140 new
40 ILCS 5/1A-113
40 ILCS 5/22A-108.1	from Ch. 108 1/2, par. 22A-108.1
40 ILCS 5/22A-111	from Ch. 108 1/2, par. 22A-111
40 ILCS 5/2-152 rep.
40 ILCS 5/2-155 rep.
40 ILCS 5/12-190.3 rep.
40 ILCS 5/13-806 rep.
40 ILCS 5/14-148 rep.
40 ILCS 5/15-186 rep.
40 ILCS 5/15-189 rep.
40 ILCS 5/16-191 rep.
40 ILCS 5/16-198 rep.
40 ILCS 5/18-159 rep.
40 ILCS 5/18-162 rep.
30 ILCS 805/8.30 new

Amends the Illinois Pension Code. Imposes various ethics requirements and prohibitions, and certain criminal penalties, with respect to employees, board members, fiduciaries, investment advisers, and investment consultants of pension funds, retirement systems, and the Illinois State Board of Investment. Preempts home rule with respect to investment adviser and consultant contracts. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.

CORRECTIONAL BUDGET AND IMPACT NOTE ACT MAY APPLY	FISCAL NOTE ACT MAY APPLY	HOME RULE NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY		STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

A BILL FOR

AN ACT concerning pensions.

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 changing Sections 1-101.2, 1-101.4, 1-110, 1-113.5, 1-113.12, 1A-113, 22A-108.1, and 22A-111 and by adding Sections 1-125, 1-130, 1-135, and 1-140 as follows:

(40 ILCS 5/1-101.2)

Sec. 1-101.2. Fiduciary. A person is a "fiduciary" with respect to a pension fund or retirement system established under this Code to the extent that the person:

(1) exercises any discretionary authority or discretionary control respecting management of the pension fund or retirement system, or exercises any authority or control respecting management or disposition of its assets;

(2) renders investment advice, or advice with respect to the selection of other fiduciaries, for a fee or other compensation, direct or indirect, with respect to any moneys or other property of the pension fund or retirement system, or has any authority or responsibility to do so; or

(3) has any discretionary authority or discretionary responsibility in the administration of the pension fund or retirement system.

(Source: P.A. 90-507, eff. 8-22-97.)

(40 ILCS 5/1-101.4)

Sec. 1-101.4. Investment adviser. A person is an "investment adviser", "investment advisor", or "investment manager" with respect to a pension fund or retirement system established under this Code if the the person:

(1) is a fiduciary appointed by the board of trustees of the pension fund or retirement system in accordance with Section 1-109.1;

(2) has the power to manage, acquire, or dispose of any asset of the retirement system or pension fund;

(3) has acknowledged in writing that he or she is a fiduciary with respect to the pension fund or retirement system; and

(4) is at least one of the following: (i) registered as an investment adviser under the federal Investment Advisers Act of 1940 (15 U.S.C. 80b-1, et seq.); (ii) registered as an investment adviser under the Illinois Securities Law of 1953; (iii) a bank, as defined in the Investment Advisers Act of 1940; or (iv) an insurance company authorized to transact business in this State.

(Source: P.A. 90-507, eff. 8-22-97.)

(40 ILCS 5/1-110) (from Ch. 108 1/2, par. 1-110)

Sec. 1-110. Prohibited Transactions.

(a) A fiduciary with respect to a retirement system or pension fund shall not cause the retirement system or pension fund to engage in a transaction if he or she knows or should know that such transaction constitutes a direct or indirect:

(1) Sale or exchange, or leasing of any property from the retirement system or pension fund to a party in interest for less than adequate consideration, or from a party in interest to a retirement system or pension fund for more than adequate consideration.

(2) Lending of money or other extension of credit from the retirement system or pension fund to a party in interest without the receipt of adequate security and a reasonable rate of interest, or from a party in interest to a retirement system or pension fund with the provision of excessive security or an unreasonably high rate of interest.

(3) Furnishing of goods, services or facilities from the retirement system or pension fund to a party in interest for less than adequate consideration, or from a party in interest to a retirement system or pension fund for more than adequate consideration.

(4) Transfer to, or use by or for the benefit of, a party in interest of any assets of a retirement system or pension fund for less than adequate consideration.

(b) A fiduciary with respect to a retirement system or pension fund established under this Code shall not:

(1) Deal with the assets of the retirement system or pension fund in his own interest or for his own account;

(2) In his individual or any other capacity act in any transaction involving the retirement system or pension fund on behalf of a party whose interests are adverse to the interests of the retirement system or pension fund or the interests of its participants or beneficiaries; or

(3) Receive any consideration for his own personal account from any party dealing with the retirement system or pension fund in connection with a transaction involving the assets of the retirement system or pension fund.

(c) Nothing in this Section shall be construed to prohibit any trustee from:

(1) Receiving any benefit to which he may be entitled as a participant or beneficiary in the retirement system or pension fund.

(2) Receiving any reimbursement of expenses properly and actually incurred in the performance of his duties with the retirement system or pension fund.

(3) Serving as a trustee in addition to being an officer, employee, agent or other representative of a party in interest.

(d) A trustee or employee of a retirement system or pension fund shall not knowingly cause or advise the retirement system or pension fund to engage in an investment transaction when the trustee or employee (i) has any direct interest in the income, gains, or profits of the investment advisor through which the investment transaction is made or (ii) has a business relationship with that investment advisor that would result in a pecuniary benefit to the trustee or employee as a result of the investment transaction.

Whoever violates the provisions of this subsection (d) is guilty of a Class 3 felony.

(Source: P.A. 88-535.)

(40 ILCS 5/1-113.5)

Sec. 1-113.5. Investment advisers; consultants; and investment services.

(a) The board of trustees of a pension fund or retirement system may appoint investment advisers as defined in Section 1-101.4. The board of any pension fund investing in common or preferred stock under Section 1-113.4 shall appoint an investment adviser before making such investments.

The investment adviser shall be a fiduciary, as defined in Section 1-101.2, with respect to the pension fund or retirement system and shall be one of the following:

(1) an investment adviser registered under the federal Investment Advisers Act of 1940 and the Illinois Securities Law of 1953;

(2) a bank or trust company authorized to conduct a trust business in Illinois;

(3) a life insurance company authorized to transact business in Illinois; or

(4) an investment company as defined and registered under the federal Investment Company Act of 1940 and registered under the Illinois Securities Law of 1953.

(a-5) Notwithstanding any other provision of law, a person or entity that provides consulting services (referred to as a "consultant" in this Section) to a pension fund or retirement system with respect to the selection of fiduciaries may not be awarded a contract to provide those consulting services that is more than 5 years in duration. No contract to provide such consulting services may be renewed or extended. At the end of the term of a contract, however, the contractor is eligible to compete for a new contract as provided in subsection (a-10). No pension fund, retirement system, or consultant shall attempt to avoid or contravene the restrictions of this subsection by any means.

(a-10) For the board of trustees of a pension fund or retirement system created under Article 2, 14, 15, 16, or 18, the selection and appointment of a consultant or investment adviser, and the contracting for investment services from a consultant or investment adviser, constitute procurements of professional and artistic services under the Illinois Procurement Code that must be made and awarded in accordance with and through the use of the method of selection required by Article 35 of that Code. For the board of trustees of a pension fund or retirement system created under any other Article of this Code, the selection and appointment of a consultant or investment adviser, and the contracting for investment services by a consultant or investment adviser, constitute procurements that must be made and awarded in a manner substantially similar to the method of selection required for the procurement of professional and artistic services under Article 35 of the Illinois Procurement Code. All offers from responsive offerors shall be accompanied by disclosure of the names and addresses of the following:

(1) The offeror.

(2) Any entity that is a parent of, or owns a controlling interest in, the offeror.

(3) Any entity that is a subsidiary of, or in which a controlling interest is owned by, the offeror.

(4) The offeror's key persons.

"Key persons" means any persons who (i) have an ownership or distributive income share in the offeror that is in excess of 5%, or an amount greater than 60% of the annual salary of the Governor, or (ii) serve as executive officers of the offeror.

Beginning on July 1, 2006, a person, other than a trustee or an employee of a pension fund or retirement system, may not act as a consultant under this Section unless that person is at least one of the following: (i) registered as an investment adviser under the federal Investment Advisers Act of 1940 (15 U.S.C. 80b-1, et seq.); (ii) registered as an investment adviser under the Illinois Securities Law of 1953; (iii) a bank, as defined in the Investment Advisers Act of 1940; or (iv) an insurance company authorized to transact business in this State.

(b) All investment advice and services provided by an investment adviser or a consultant appointed under this Section shall be (i) rendered pursuant to a written contract between the investment adviser or consultant and the board, awarded as provided in subsection (a-10), and (ii) in accordance with the board's investment policy.

The contract shall include all of the following:

(1) acknowledgement in writing by the investment adviser or consultant that he or she is a fiduciary with respect to the pension fund or retirement system;

(2) the board's investment policy;

(3) full disclosure of direct and indirect fees, commissions, penalties, and any other compensation that may be received by the investment adviser or consultant, including reimbursement for expenses; and

(4) a requirement that the investment adviser or consultant submit periodic written reports, on at least a quarterly basis, for the board's review at its regularly scheduled meetings. All returns on investment shall be reported as net returns after payment of all fees, commissions, and any other compensation.

(b-5) Each contract described in subsection (b) shall also include (i) full disclosure of direct and indirect fees, commissions, penalties, and other compensation, including reimbursement for expenses, that may be paid by or on behalf of the investment adviser or consultant in connection with the provision of services to the pension fund or retirement system and (ii) a requirement that the investment adviser or consultant update the disclosure promptly after a modification of those payments or an additional payment.

Within 30 days after the effective date of this amendatory Act of the 94th General Assembly, each investment adviser and consultant currently providing services or subject to an existing contract for the provision of services must disclose to the board of trustees all direct and indirect fees, commissions, penalties, and other compensation paid by or on behalf of the investment adviser or consultant in connection with the provision of those services and shall update that disclosure promptly after a modification of those payments or an additional payment.

A person required to make a disclosure under subsection (d) is also required to disclose direct and indirect fees, commissions, penalties, or other compensation that shall or may be paid by or on behalf of the person in connection with the rendering of those services. The person shall update the disclosure promptly after a modification of those payments or an additional payment.

The disclosures required by this subsection shall be in writing and shall include the date and amount of each payment and the name and address of each recipient of a payment.

(c) Within 30 days after appointing an investment adviser or consultant, the board shall submit a copy of the contract to the Division Department of Insurance of the Department of Financial and Professional Regulation.

(d) Investment services provided by a person other than an investment adviser appointed under this Section, including but not limited to services provided by the kinds of persons listed in items (1) through (4) of subsection (a), shall be rendered only after full written disclosure of direct and indirect fees, commissions, penalties, and any other compensation that shall or may be received by the person rendering those services.

(e) The board of trustees of each pension fund or retirement system shall retain records of investment transactions in accordance with the rules of the Department of Financial and Professional Regulation Insurance.

(f) This subsection applies to the board of trustees of a pension fund or retirement system created under Article 2, 14, 15, 16, or 18. Notwithstanding any other provision of law, a board of trustees shall comply with the Business Enterprise for Minorities, Females, and Persons with Disabilities Act. The board of trustees shall post upon its website the percentage of its contracts awarded under this Section currently and during the preceding 5 fiscal years that were awarded to "minority owned businesses", "female owned businesses", and "businesses owned by a person with a disability", as those terms are defined in the Business Enterprise for Minorities, Females, and Persons with Disabilities Act.

(g) This Section is a denial and limitation of home rule powers and functions in accordance with subsection (i) of Section 6 of Article VII of the Illinois Constitution. A home rule unit may not regulate investment adviser and consultant contracts in a manner that is less restrictive than the provisions of this Section.

(Source: P.A. 90-507, eff. 8-22-97.)

(40 ILCS 5/1-113.12)

Sec. 1-113.12. Application. Sections 1-113.1 through 1-113.10 apply only to pension funds established under Article 3 or 4 of this Code, except that Section 1-113.5 applies to all pension funds and retirement systems established under this Code.

(Source: P.A. 90-507, eff. 8-22-97.)

(40 ILCS 5/1-125 new)

Sec. 1-125. No monetary gain on investments. No trustee or employee of the board of any retirement system or pension fund or of the Illinois State Board of Investment shall have any direct interest in the income, gains, or profits of any investments made in behalf of the retirement system or pension fund or of the Illinois State Board of Investment, nor receive any pay or emolument for services in connection with any investment. No trustee or employee of the board of any retirement system or pension fund or the Illinois State Board of Investment shall become an endorser or surety, or in any manner an obligor for money loaned or borrowed from the retirement system or pension fund or the Illinois State Board of Investment. Whoever violates any of the provisions of this Section is guilty of a Class 3 felony.

(40 ILCS 5/1-130 new)

Sec. 1-130. Fraud. Any person who knowingly makes any false statement, or falsifies or permits to be falsified any record of a retirement system or pension fund or of the Illinois State Board of Investment, in an attempt to defraud the retirement system or pension fund or the Illinois State Board of Investment, is guilty of a Class 3 felony.

(40 ILCS 5/1-135 new)

Sec. 1-135. Prohibition on gifts.

(a) For the purposes of this Section:

(1) "Board" means (i) the board of trustees of a pension fund or retirement system created under this Code or (ii) the Illinois State Board of Investment created under Article 22A of this Code.

(2) "Gift" means a gift as defined in Section 1-5 of the State Officials and Employees Ethics Act.

(3) "Prohibited source" is a person or entity who:

(i) is seeking official action (A) by the board, (B) by a board member, or (C) in the case of a board employee, by the employee, the board, a board member, or another employee directing the employee;

(ii) does business or seeks to do business (A) with the board, (B) with a board member, or (C) in the case of a board employee, with the employee, the board, a board member, or another employee directing the employee;

(iii) has interests that may be substantially affected by the performance or non-performance of the official duties of the board member or employee; or

(iv) is registered or required to be registered with the Secretary of State under the Lobbyist Registration Act, except that an entity not otherwise a prohibited source does not become a prohibited source merely because a registered lobbyist is one of its members or serves on its board of directors.

(b) No board member or employee shall solicit or accept any gift from a prohibited source or from an officer, agent, or employee of a prohibited source. No prohibited source or officer, agent, or employee of a prohibited source shall offer to a board member or employee any gift.

(c) Violation of this Section is a Class A misdemeanor.

(40 ILCS 5/1-140 new)

Sec. 1-140. Contingent fees.

(a) The Illinois State Board of Investment and the board of trustees of a retirement system or pension fund created under any Article of this Code shall not, in connection with the allocation of retirement assets for investment purposes, contract with any investment adviser as defined in Section 1-101.4 unless that investment adviser certifies that the investment adviser has not and will not pay a contingent fee, whether directly or indirectly, to a third party for having promoted the selection of an investment adviser for that contract or any contract entered into after the effective date of this amendatory Act of the 94th General Assembly. In the event that the Illinois State Board of Investment or the board of trustees determines that an investment adviser has filed a false certification with respect to the payment of contingent fees, the Illinois State Board of Investment or the board of trustees, as the case may be, shall not contract with that investment adviser or any entity that employs any person who signed false certifications, for a period of 5 calendar years, beginning with the date the determination is made. The retirement assets placed under the direction, guidance, placement, or control of an investment adviser who has been found in violation pursuant to this Section shall be reallocated at the discretion of the Illinois State Board of Investment or the board of trustees of that pension fund or retirement system, as appropriate.

(b) The Illinois State Board of Investment and the board of trustees shall not allocate any assets of a retirement system or pension fund to an investment unless it is assured by all parties involved in the transaction that a contingent fee was not or will not be paid based on the allocation of the pension fund's or retirement system's assets to that investment.

(40 ILCS 5/1A-113)

Sec. 1A-113. Penalties.

(a) A pension fund that fails, without just cause, to file its annual statement within the time prescribed under Section 1A-109 shall pay to the Department a penalty to be determined by the Department, which shall not exceed $100 for each day's delay.

(b) A pension fund that fails, without just cause, to file its actuarial statement within the time prescribed under Section 1A-110 or 1A-111 shall pay to the Department a penalty to be determined by the Department, which shall not exceed $100 for each day's delay.

(c) A pension fund that fails to pay a fee within the time prescribed under Section 1A-112 shall pay to the Department a penalty of 5% of the amount of the fee for each month or part of a month that the fee is late. The entire penalty shall not exceed 25% of the fee due.

(d) This subsection applies to any governmental unit, as defined in Section 1A-102, that is subject to any law establishing a pension fund or retirement system for the benefit of employees of the governmental unit.

Whenever the Division determines by examination, investigation, or in any other manner that the governing body or any elected or appointed officer or official of a governmental unit has failed to comply with any provision of that law:

(1) The Director shall notify in writing the governing body, officer, or official of the specific provision or provisions of the law with which the person has failed to comply.

(2) Upon receipt of the notice, the person notified shall take immediate steps to comply with the provisions of law specified in the notice.

(3) If the person notified fails to comply within a reasonable time after receiving the notice, the Director may hold a hearing at which the person notified may show cause for noncompliance with the law.

(4) If upon hearing the Director determines that good and sufficient cause for noncompliance has not been shown, the Director may order the person to submit evidence of compliance within a specified period of not less than 30 days.

(5) If evidence of compliance has not been submitted to the Director within the period of time prescribed in the order and no administrative appeal from the order has been initiated, the Director may assess a civil penalty of up to $2,000 against the governing body, officer, or official for each noncompliance with an order of the Director.

The Director shall develop by rule, with as much specificity as practicable, the standards and criteria to be used in assessing penalties and their amounts. The standards and criteria shall include, but need not be limited to, consideration of evidence of efforts made in good faith to comply with applicable legal requirements. This rulemaking is subject to the provisions of the Illinois Administrative Procedure Act.

If a penalty is not paid within 30 days of the date of assessment, the Director without further notice shall report the act of noncompliance to the Attorney General of this State. It shall be the duty of the Attorney General or, if the Attorney General so designates, the State's Attorney of the county in which the governmental unit is located to apply promptly by complaint on relation of the Director of Insurance in the name of the people of the State of Illinois, as plaintiff, to the circuit court of the county in which the governmental unit is located for enforcement of the penalty prescribed in this subsection or for such additional relief as the nature of the case and the interest of the employees of the governmental unit or the public may require.

(e) Whoever knowingly makes a false certificate, entry, or memorandum upon any of the books or papers pertaining to any pension fund or upon any statement, report, or exhibit filed or offered for file with the Division or the Director of Insurance in the course of any examination, inquiry, or investigation, with intent to deceive the Director, the Division, or any of its employees is guilty of a Class 3 felony A misdemeanor.

(Source: P.A. 90-507, eff. 8-22-97.)

(40 ILCS 5/22A-108.1) (from Ch. 108 1/2, par. 22A-108.1)

Sec. 22A-108.1. Investment Advisor: Any person or business entity which provides investment advice to the the Board on a personalized basis and with an understanding of the policies and goals of the Board. "Investment Advisor" shall not include any person or business entity which provides statistical or general market research data available for purchase or use by others.

(Source: P.A. 79-1171.)

(40 ILCS 5/22A-111) (from Ch. 108 1/2, par. 22A-111)

Sec. 22A-111. Duties and responsibilities.

(a) The Board shall manage the investments of any pension fund, retirement system or education fund for the purpose of obtaining a total return on investments for the long term. It also shall perform such other functions as may be assigned or directed by the General Assembly.

(b) The authority of the board to manage pension fund investments and the liability shall begin when there has been a physical transfer of the pension fund investments to the board and placed in the custody of the State Treasurer.

(c) The authority of the board to manage monies from the education fund for investment and the liability of the board shall begin when there has been a physical transfer of education fund investments to the board and placed in the custody of the State Treasurer.

(d) The board may not delegate its management functions but it may arrange to compensate for personalized investment advisory service for any or all investments under its control, with any national or state bank or trust company authorized to do a trust business and domiciled in Illinois, or other financial institution organized under the laws of Illinois, or an investment advisor who is qualified under Federal Investment Advisors Act of 1940 and is registered under the Illinois Securities Law of 1953. Nothing contained herein shall prevent the Board from subscribing to general investment research services available for purchase or use by others. The Board shall also have the authority to compensate for accounting services.

(e) Notwithstanding any other provision of law, a person or entity that provides consulting services (referred to as a "consultant" in this Section) to the board with respect to the selection of fiduciaries may not be awarded a contract to provide those consulting services that is more than 5 years in duration. No contract to provide such consulting services may be renewed or extended. At the end of the term of a contract, however, the contractor is eligible to compete for a new contract as provided in subsection (f). Neither the board nor a consultant shall attempt to avoid or contravene the restrictions of this subsection by any means.

(f) The selection of a consultant or investment adviser, and the contracting for investment services from a consultant or investment adviser, constitute procurements of professional and artistic services under the Illinois Procurement Code that must be made and awarded in accordance with and through the use of the method of selection required by Article 35 of that Code. All offers from responsive offerors shall be accompanied by disclosure of the names and addresses of the following:

(1) The offeror.

(2) Any entity that is a parent of, or owns a controlling interest in, the offeror.

(3) Any entity that is a subsidiary of, or in which a controlling interest is owned by, the offeror.

(4) The offeror's key persons.

"Key persons" means any persons who (i) have an ownership or distributive income share in the offeror that is in excess of 5%, or an amount greater than 60% of the annual salary of the Governor, or (ii) serve as executive officers of the offeror.

Beginning on July 1, 2006, a person, other than a trustee or an employee of a the board, may not act as a consultant under this Section unless that person is at least one of the following: (i) registered as an investment adviser under the federal Investment Advisers Act of 1940 (15 U.S.C. 80b-1, et seq.); (ii) registered as an investment adviser under the Illinois Securities Law of 1953; (iii) a bank, as defined in the Investment Advisers Act of 1940; or (iv) an insurance company authorized to transact business in this State.

In addition to any other requirement, each contract between the Board and an investment advisor or consultant shall include (i) full disclosure of direct and indirect fees, commissions, penalties, and other compensation, including reimbursement for expenses, that may be paid by or on behalf of the investment advisor or consultant in connection with the provision of services to the pension fund or retirement system and (ii) a requirement that the investment advisor or consultant update the disclosure promptly after a modification of those payments or an additional payment.

Within 30 days after the effective date of this amendatory Act of the 94th General Assembly, each investment advisor and consultant currently providing services or subject to an existing contract for the provision of services must disclose to the Board all direct and indirect fees, commissions, penalties, and other compensation paid by or on behalf of the investment advisor or consultant in connection with the provision of those services and shall update that disclosure promptly after a modification of those payments or an additional payment.

The disclosures required by this subsection shall be in writing and shall include the date and amount of each payment and the name and address of each recipient of a payment.

Notwithstanding any other provision of law, the Board shall comply with the Business Enterprise for Minorities, Females, and Persons with Disabilities Act. The Board shall post upon its website the percentage of its contracts awarded under this subsection currently and during the preceding 5 fiscal years that were awarded to "minority owned businesses", "female owned businesses", and "businesses owned by a person with a disability", as those terms are defined in the Business Enterprise for Minorities, Females, and Persons with Disabilities Act.

(Source: P.A. 84-1127.)

(40 ILCS 5/2-152 rep.)

(40 ILCS 5/2-155 rep.)

(40 ILCS 5/12-190.3 rep.)

(40 ILCS 5/13-806 rep.)

(40 ILCS 5/14-148 rep.)

(40 ILCS 5/15-186 rep.)

(40 ILCS 5/15-189 rep.)

(40 ILCS 5/16-191 rep.)

(40 ILCS 5/16-198 rep.)

(40 ILCS 5/18-159 rep.)

(40 ILCS 5/18-162 rep.)

Section 40. The Illinois Pension Code is amended by repealing Sections 2-152, 2-155, 12-190.3, 13-806, 14-148, 15-186, 15-189, 16-191, 16-198, 18-159, and 18-162.

Section 90. The State Mandates Act is amended by adding Section 8.30 as follows:

(30 ILCS 805/8.30 new)

Sec. 8.30. Exempt mandate. Notwithstanding Sections 6 and 8 of this Act, no reimbursement by the State is required for the implementation of any mandate created by this amendatory Act of the 94th General Assembly.

Section 98. Severability. The provisions of this Act are severable under Section 1.31 of the Statute on Statutes.

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