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| 1 | AN ACT concerning public employee benefits.
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| 2 | Be it enacted by the People of the State of Illinois,
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| 3 | represented in the General Assembly:
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| 4 | Section 5. The Illinois Pension Code is amended by adding | ||||||
| 5 | Section 1-113.24 as follows: | ||||||
| 6 | (40 ILCS 5/1-113.24 new) | ||||||
| 7 | Sec. 1-113.24. Contracts for investment services with | ||||||
| 8 | emerging investment managers through a qualified manager of | ||||||
| 9 | emerging investment managers services. | ||||||
| 10 | (a) As used in this Section: | ||||||
| 11 | "Emerging investment manager" has the meaning given to | ||||||
| 12 | that term in subsection (4) of Section 1-109.1. | ||||||
| 13 | "Investment services" has the meaning given to that term | ||||||
| 14 | in Section 1-113.14. | ||||||
| 15 | "Qualified manager of emerging investment managers | ||||||
| 16 | services" means the services of an investment adviser acting | ||||||
| 17 | in its capacity as an investment manager of a multimanager | ||||||
| 18 | portfolio made up of emerging investment managers. | ||||||
| 19 | (b) Consistent with the requirements of Section 1-113.14, | ||||||
| 20 | all contracts for investment services shall be awarded by the | ||||||
| 21 | board of a pension fund or retirement system or investment | ||||||
| 22 | board using a competitive process that is substantially | ||||||
| 23 | similar to the process required for the procurement of | ||||||
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| 1 | professional and artistic services under Article 35 of the | ||||||
| 2 | Illinois Procurement Code; however, an exception to the | ||||||
| 3 | requirements of Section 1-113.14 shall be allowed for | ||||||
| 4 | contracts for investment services with an emerging investment | ||||||
| 5 | manager provided through a qualified manager of emerging | ||||||
| 6 | investment managers services. Based upon a written | ||||||
| 7 | recommendation from an investment adviser providing qualified | ||||||
| 8 | manager of emerging investment managers services for the | ||||||
| 9 | selection or appointment of an emerging investment manager | ||||||
| 10 | that has been providing investment services in the | ||||||
| 11 | multimanager portfolio for at least 24 months, the board of a | ||||||
| 12 | pension fund or retirement system or investment board may | ||||||
| 13 | select or appoint such emerging investment manager. All | ||||||
| 14 | exceptions to Section 1-113.14 granted under this Section must | ||||||
| 15 | be published on the pension fund's, retirement system's, or | ||||||
| 16 | investment board's website, which shall name the person | ||||||
| 17 | authorizing the procurement and shall include a brief | ||||||
| 18 | explanation of the reason for the exception. | ||||||
| 19 | (c) A qualified manager of emerging investment managers | ||||||
| 20 | services shall comply with the requirements regarding written | ||||||
| 21 | contracts set forth in subsection (c) of Section 1-113.14.
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| 22 | Section 90. The State Mandates Act is amended by adding | ||||||
| 23 | Section 8.45 as follows: | ||||||
| 24 | (30 ILCS 805/8.45 new) | ||||||
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| 1 | Sec. 8.45. Exempt mandate. Notwithstanding Sections 6 and | ||||||
| 2 | 8 of this Act, no reimbursement by the State is required for | ||||||
| 3 | the implementation of any mandate created by this amendatory | ||||||
| 4 | Act of the 102nd General Assembly.
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