Bill Text: IL SB1714 | 2017-2018 | 100th General Assembly | Enrolled


Bill Title: Amends the General Provisions Article of the Illinois Pension Code. Requires a consultant to annually disclose to the board of the retirement system, board of the pension fund, or the investment board that retains the consultant certain information concerning searches for investment services from minority owned businesses, female owned businesses, and businesses owned by persons with a disability. Requires a consultant to disclose any compensation or economic opportunity received in the last 24 months from investment advisors retained by the board of a retirement system, board of a pension fund, or investment board. Requires consideration of these disclosures before awarding a contract for consulting services. Effective immediately.

Spectrum: Partisan Bill (Democrat 6-0)

Status: (Enrolled) 2017-06-28 - Sent to the Governor [SB1714 Detail]

Download: Illinois-2017-SB1714-Enrolled.html



SB1714 EnrolledLRB100 08308 RPS 18412 b
1 AN ACT concerning public employee benefits.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Illinois Pension Code is amended by adding
5Sections 1-113.22 and 1-113.23 as follows:
6 (40 ILCS 5/1-113.22 new)
7 Sec. 1-113.22. Required disclosures from consultants;
8minority owned businesses, female owned businesses, and
9businesses owned by persons with a disability.
10 (a) No later than January 1, 2018 and each January 1
11thereafter, each consultant retained by the board of a
12retirement system, board of a pension fund, or investment board
13shall disclose to that board of the retirement system, board of
14the pension fund, or investment board:
15 (1) the total number of searches for investment
16 services made by the consultant in the prior calendar year;
17 (2) the total number of searches for investment
18 services made by the consultant in the prior calendar year
19 that included (i) a minority owned business, (ii) a female
20 owned business, or (iii) a business owned by a person with
21 a disability;
22 (3) the total number of searches for investment
23 services made by the consultant in the prior calendar year

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1 in which the consultant recommended for selection (i) a
2 minority owned business, (ii) a female owned business, or
3 (iii) a business owned by a person with a disability;
4 (4) the total number of searches for investment
5 services made by the consultant in the prior calendar year
6 that resulted in the selection of (i) a minority owned
7 business, (ii) a female owned business, or (iii) a business
8 owned by a person with a disability; and
9 (5) the total dollar amount of investment made in the
10 previous calendar year with (i) a minority owned business,
11 (ii) a female owned business, or (iii) a business owned by
12 a person with a disability that was selected after a search
13 for investment services performed by the consultant.
14 (b) Beginning January 1, 2018, no contract, oral or
15written, for consulting services shall be awarded by a board of
16a retirement system, a board of a pension fund, or an
17investment board without first requiring the consultant to make
18the disclosures required in subsection (a) of this Section.
19 (c) The disclosures required by subsection (b) of this
20Section shall be considered, within the bounds of financial and
21fiduciary prudence, prior to the awarding of a contract, oral
22or written, for consulting services.
23 (d) As used in this Section, the terms "minority person",
24"female", "person with a disability", "minority owned
25business", "female owned business", and "business owned by a
26person with a disability" have the same meaning as those terms

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1have in the Business Enterprise for Minorities, Females, and
2Persons with Disabilities Act.
3 (40 ILCS 5/1-113.23 new)
4 Sec. 1-113.23. Required disclosures from consultants;
5compensation and economic opportunity received.
6 (a) As used in this Section:
7 "Compensation" means any money, thing of value, or economic
8benefit conferred on, or received by, a consultant in return
9for services rendered, or to be rendered, by himself, herself,
10or another.
11 "Economic opportunity" means any purchase, sale, lease,
12contract, option, or other transaction or arrangement
13involving property or services wherein a consultant may gain an
14economic benefit.
15 (b) No later than January 1, 2018 and each January 1
16thereafter, a consultant retained by the board of a retirement
17system, the board of a pension fund, or an investment board
18shall disclose to the board of the retirement system, the board
19of the pension fund, or the investment board all compensation
20and economic opportunity received in the last 24 months from
21investment advisors retained by the board of a retirement
22system, board of a pension fund, or investment board.
23 (c) Beginning January 1, 2018, a consultant shall disclose
24to the board of a retirement system, the board of a pension
25fund, or an investment board any compensation or economic

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1opportunity received in the last 24 months from an investment
2advisor that is recommended for selection by the consultant. A
3consultant shall make this disclosure prior to the board
4selecting an investment advisor for appointment.
5 (d) Beginning January 1, 2018, no contract, oral or
6written, for consulting services shall be awarded by a board of
7a retirement system, board of a pension fund, or an investment
8board without first requiring the consultant to make the
9disclosures required in subsection (c) of this Section.
10 Section 99. Effective date. This Act takes effect upon
11becoming law.
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